"The most critical transformation is not the one that happens with processes and tools. The most important shift is the one that happens in the organization's mindset and culture. As an industry, we have developed a large number of Lean and Agile practices, and yet the mindset of most of the organizations remains largely the same, relying on Reductionist Thinking - a thought process that is contrary to Agility, Innovation and Product Development Flow. Addressing the reductionist mindset requires purposeful, focused action on the part of enterprise coaches and transformation agents. In this presentation, Alex Yakyma will discuss the following topics: * Certainty Bias and its influence on enterprise practices and policies * Establishing a new culture that embraces uncertainty and variability * Operating with assumptions and assumption chains in business strategy, user requirements, architecture, implementation strategy, etc. * Aligning individual motivation with value delivery * Creating flexibility to foster emergent behavior * Establishing cross-level learning in the organization The talk outlines practical advice with respect to the steps in growing a new mindset. The presentation includes a number of organizational anti-patterns as well as suggestions of how to avoid them. "

1. Org Mindset
Addressing the Reductionist Mindset in Your
Lean-Agile Transformation
Alex Yakyma
1

2. © Org Mindset LLC 2
17

3. © Org Mindset LLC 3
Old ways
of working
New ways
of working

4. © Org Mindset LLC 4
Old ways
of working
New ways
of working
Funding
Scoping
HR
...

5. © Org Mindset LLC
The reason: Reductionist Mindset
5
If you try really hard, you can actually figure it out

6. © Org Mindset LLC
We overreact to uncertainty
6

7. © Org Mindset LLC
We overreact to uncertainty
7
Asymmetric error impact:
False positive 1
A twig mistaken for a snake
False positive 2
A snake mistaken for a twig
IMPACT: VERY LOW IMPACT: CRITICAL

8. © Org Mindset LLC
As a result:
8
Certainty bias:
Unreasonable belief in the certainty of desirable outcomes

9. © Org Mindset LLC 9
Most “Agile” implementations only camouflage certainty bias behind new and
fancy Agile terminology

10. © Org Mindset LLC
...Resulting in
10
Thinking point-based solutions:
One and only “right” solution;
Comes along with a master plan.
Nuisance experiments as part of the plan
Agile = Iterative and Incremental way of
implementing a known master plan

11. © Org Mindset LLC
...Resulting in
11
Thinking outputs, not outcomes
a) Teams held accountable for their estimates
b) Amount of scope as a primary success indicator
c) Chasing extra capacity
d) Obsession over vanity metrics

12. © Org Mindset LLC
...Resulting in
12
Chasing predictability over value
Always need to “know”

13. © Org Mindset LLC
Example 1
13

14. © Org Mindset LLC
Example 1
14
X

15. © Org Mindset LLC
Example 2
15
Master Plan. Single Point.
No Validated Learning
Business Development

16. © Org Mindset LLC
Example 3
16
...

17. © Org Mindset LLC
Certainty bias gets amplified: Semiconductor Organization Anti-Pattern
17
Good news travels at the
speed of light.
Bad news stays where it
is.

18. © Org Mindset LLC 18
So what should we do?

19. © Org Mindset LLC 19
• Structure
• Planning
• Value Definition
• Metrics
...

20. © Org Mindset LLC 20
• Structure
• Planning
• Value Definition
• Metrics
...
OLD WAYS NEW WAYS

21. © Org Mindset LLC
Avoid anti-pattern: Black Box
21
Let’s make our teams
more productive.
What do you need for
that to happen?
Black Box:
Transformation is considered by
the leadership to be an isolated
process that will make teams
and programs more productive.
At the same time they do not
consider themselves subject to
transformation.

22. © Org Mindset LLC
Avoid anti-pattern: Happy Land
22
Happy Land:
Keeping the leadership happy at
all times is considered a key
priority for transformation.

23. © Org Mindset LLC
Avoid anti-pattern: Overflow
23
Overflow:
The abundance of the new terms,
practices and tools creates a strong
impression within the organization that
they’ve succeeded with the
transformation, while the new “stuff”
only camouflages the old thinking.
Backlog
Prioritization
Stories
Tasks
Story
Points
Iterations
Demo
Retro
Planning
Estimation
CD
CI
ATDD
Daily
Standup
SoS
TDD
SM
POVelocity
Cycle Time
Refactoring
SBE

24. © Org Mindset LLC
And all it’s going to do is...
24
NEW TERMINOLOGY
OLD THINKING

25. © Org Mindset LLC 25
Class 1 / Class 2 Practices

26. © Org Mindset LLC
Class 1 Practices
26
Class 1 practices shift mindset.
Practices from Class 1 typically:
• Instantiate critical feedback loops
• Instill the right thinking in terms of
uncertainty and variability
• Support deep collaboration
• Foster self-organized behavior
• “Flatten” the hierarchy
Comfort
zone

27. © Org Mindset LLC
• Regular face-to-face requirements workshop with the customer
• User interview
• Red Teaming
• Validated proxies to trailing economic indicators
Examples
27

28. © Org Mindset LLC
Class 2 Practices
28
Class 2 practices don’t shift mindset
Class 2 is “everything else that isn’t Class 1”

29. © Org Mindset LLC
• Backlog and Prioritization
• Estimation
• Tasking
• Local demos
• Most forms of planning
Examples
29

30. © Org Mindset LLC 30
In your transformation, start with Class 1 practices and pull in Class 2 practices
as you begin to see the change in thinking
TIME
Class 1 Class 2
NEW THINKING
OLD THINKING

31. © Org Mindset LLC
• Reinforcing feedback loops
• Embedded mental models
• Enabling practices
• Benefit-constraint analysis
• ...
More...
31

32. © Org Mindset LLC
...but even more importantly
32

33. © Org Mindset LLC
Contact info: Alex Yakyma
33
Email me at: alex.yakyma@orgmindset.com
...Or leave a message at: www.orgmindset.com

34. Questions
© Org Mindset LLC 34