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Modern Agile Management and Leadership

What changes are needed in management and leadership to move towards the new lean culture of creative and knowledge work? My presentation from Agile Finland's Modern Agile Breakfast.

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Modern Agile
Management
and
Leadership
For many organizations,
a common practice is that
they are managed like
machines. We call this
Management 1.0. In this
style of management,
leaders assume that
improvement of the whole
requires monitoring,
repairing, and replacing
the parts.
Culture of Planning
Economies of Scale
Dividing responsibility and work
Executive Change Initiatives

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Modern Agile Management and Leadership

Editor's Notes

  1. © 2016 Happy Melly One BV, Rotterdam, The Netherlands. This material is distributed only to licensed Management 3.0 facilitators of Happy Melly One BV. It is not permitted to use this material in training or workshops without reporting this to Happy Melly One BV and signing the license agreement. It is not permitted to redistribute the original files of this material, with exception of PDF files which can be distributed to class attendees and workshop participants. It is not permitted to reuse parts of this material in your own presentations or publications without permission. If you wish to license this material, please contact the Management 3.0 team at Happy Melly: info@management30.com
  2. In the traditional business, acquiring knowledge was a matter of digesting the body of knowledge and best practices of your field and then applying them. The business environment was more stable which meant that most risks could be mitigated and opportunities could be seized by the way of careful planning. The body of knowledge of traditional software engineering and the project management institute are good examples of the culture of planning.
  3. In the old business, in a world of stable markets, profits were driven by economies of scale. Producing products in big batches enabled driving down the unit cost, which increased the profit margin. It was hard to enter markets if you did not have enough capital to take advantage of economies of scale early on. Tayloristic management of factories which produce consumer goods is a good example of economies of scale.
  4. In the old business, cost savings were driven by extreme specialization of work-force. For example, business analysts wrote requirements, programmers implemented those requirements into application code and testers tested if the application worked as planned. One extreme specialization was the coordinators, project managers and the sort, who specialized into coordinating the work as efficiently as possible. The thinking was, that people would become very efficient in their own specialized area of work.
  5. In traditional management, the management sees the organization as a machine. If there is a problem in the performance of the organization, management must fix that like machines are fixed. Or even re-design it in a way that would allow for better performance. Good examples of this are new process rollouts and organizational resturcturings. In this thinking, the new way of working is rolled out in the organization. However, we have found out through many studies that these kind of engineered changes rarely have the intended effect.
  6. Jotain uutta on nousemassa, jotain vanhaa saattaa olla kuolemassa
  7. On yksisarvisia (esim. Uber, Airbnb), media-alan murros (FB, Google) mutta on myös muita: FAVI – autonosia AES – öljyala Wikipedia Morning Star - tomaatintuottajia
  8. Uusien palveluiden lanseeraaminen asiakkaille, eism. Ylen Uutisvahti Nowadays, we have come to accept that we do not have perfect understanding of the outside world, the markets and the needs of the customers in our organization. There is much uncertainty that cannot be planned away. Instead we must learn by the culture of experimentation and accelerate our rate of learning about the markets, customers and technology to be able to seize the opportunities and mitigate the risks. Disciplines like Lean Startup and Growth Hacking are good examples of culture of experimentation.
  9. Matkapuhelinoperaattori, uusien palveluiden lanseeraus Spearhead product Kanban (strategic media productions) + Yle Lab to shorten the feedback loops Nowadays, with more uncertainty in the business environment and the disruptions happening in the old markets, we cannot rely on the profit margin of economies of scale. It is no use to prematurely scale some product that might not end up having enough demand. Instead, companies nowadays try to optimize their time to market to be able to satisfy demand as quickly as they can. This is done by optimizing the lead time from idea to launch. Good examples of flow efficiency are agile software development practices such as Scrum and Kanban and lean product development.
  10. Nykyisin tiimit haluavat UX-kehittäjien lisäksi digitaalisen markkinoinnin osaajat samaan tiimiin. Esim. Yle. Erilliset yksiköt historiaa. Nowadays, the need for flow efficiency meaning fast time to market and faster feedback and learning through experimentation mean that optimizing the whole instead of local optimizations have become more important. That is why companies have started to gather together cross-functional teams able to build products from idea to launch and who can make all the decisions all the way. These teams also work as the basic learning units for organizations.
  11. What companies have started doing instead is to foster a culture of continuous improvement in every team and unit of the organization. Change is not seen as a project, but instead as a continuous process that will never end. Everybody takes responsibility to increase the performance of the organization. This kind of culture requires a shared understanding of goals, transparency of information, mutual trust and mandate to make decisions all around the organization.
  12. Google’s research a year ago Anita Woolly’s team on MIT Johtaminen on turvallisten tilojen luomista tiimeille, jotta ne voivat yhdessä luoda jotain mahtavaa!
  13. Sometimes referred to as “reverse delegation”. YLE: teams responsible for their business area, developing and marketing solutions Of course they choose and develop their own ways of working, too The team of teams responsible for intra-team allocation of resources, meaning budget Communication with upper management to talk about strategic objectives Gini: academies making all business decisions
  14. Spearhead product Kanban in media production at Yle (what strategic media productions will be done in the next 2-3 years)
  15. Also known as Ikigai: https://en.wikipedia.org/wiki/Ikigai