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An introduction to Agile Organisational Model

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an idea towards Enterprise Scrum

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An introduction to Agile Organisational Model

  1. 1. An introduction to Agile Organisational Model an idea towards Enterprise Scrum 1 whiteboard sketch-notes Pierre E. Neis
  2. 2. To start with a metaphor. “One of the things which has plagued western society particularly in terms of management, and that comes in the development, is an obsession with recipes people want to be told. What to do? And I want to make a key distinction there between recipe book users and chefs.   If you actually employ a recipe book user to cook a meal for you. They'll first of all want to re-engineer your kitchen so it matches the environment in which they were taught. They'll em on all the ingredients arranged in little bowls. And then they'll follow the recipe. And they'll produce something which is competent but not particularly exciting. On the other hand the chef will come into your kitchen and whatever you happen to have in the fridge they'll make a wonderful meal.   The difference is the chef understands the principles of food. The recipe book user is just following wrote. And we need more chefs in this business and fewer recipe book users. So I make no apology up front for starting off with some theory because if you understand the theory you can then apply it in radically different situations so what I want to do is start off by talking about complex adaptive systems.”   2 Dave Snowden, Cynefin, How to lead in Complex Systems.
  3. 3. The Row Picture “obsolete” enterprise Master & Servants Enterprise Scrum Scrum Crowd The Enterprise Scrum (ES) model is a high level empirical process using the power of scrum as organisational model for complex adaptive systems such an enterprise. An ES is running like a crowd swarming in the direction of a collective goal 3
  4. 4. Theory 4
  5. 5. this is a system it is also called sometimes: - organisation - enterprise - project - team - family 5
  6. 6. 3 basics systems ordered systems complex systems chaotic systems categorisation models sense making models 1 2 3 6
  7. 7. sense making models: data precedes frameworkcategorisation models: framework precedes data 7
  8. 8. 3 basics systems chaotic systems categorisation models sense making models 2 3 complex systems ordered systems 8 1
  9. 9. 3 basics systems improved by Cynefin Model chaotic systems categorisation models sense making models 2 3 complicated systems obvious systems complex systems 1 4 disorder 5 9
  10. 10. Brief organisational roadmap and how to identify transformation paths 10
  11. 11. L.E. Greiner, « Evolution and revolution as organizations grow ». HBR, 1972 11 leadership crisis autonomy crisis control crisis bureaucracy crisis growth by creativity growth by by leadership growth by delegation growth by collaboration small big sizeoftheorganisation age of the organisationyoung mature
  12. 12. Tailor, Drucker utilityoftheparadigm time scientific management system thinking sense making Hammer, Senge, Kaplan, Nonaka Function Control Information Control Ability to situate a network mass customisation, scalable, reliable technology and communication mass production, automation & commodification mass collaboration, generalised social computing, globalisation 1950 1990 2010 Agile Greiner’s model improved by D. Snowden we want to move there 12
  13. 13. Tailor, Drucker utilityoftheparadigm time scientific management system thinking sense making Hammer, Senge, Kaplan, Nonaka Function Control Information Control Ability to situate a network mass customisation, scalable, reliable technology and communication mass production, automation & commodification mass collaboration, generalised social computing, globalisation 1950 1990 2010 Agile Greiner’s model improved by D. Snowden but most of organisations are stocked here LEAN AGILE 13
  14. 14. concept: agile organisation as a complex adaptive system 14
  15. 15. Complex Adaptive Systems (CAS)? Systems are complex because they are mainly connected They are adaptive because they change according to what’s happening in the system So that the agents (people, ideas, etc…) can co-evolve They are very sensitive to small changes You develop in an adductive manner to create moments of exaptation (solution focused, emerging innovation,…) 15
  16. 16. this is a system A system consist of boundaries aka “the organisation”. The organisation is a place of multiple belongings where its agents interact in a non-linear relationship in order to deliver safe-to-fail experiments. The system itself is a safe-to-fail container. The outcome of these experiments fosters innovation and solution focused behaviour. The actions within the system are autonomous or self- managed in that container. The container evolves according to the outcomes of those experiments. 16
  17. 17. Organisation system contains multiple subsystems Each subsystem is independent within the constraints of the main system (organisation). The main system is in charge with the organisation purpose or true north. Each subsystem has its own goal to transform this true north. Organisation is responsible to create coherence by ensuring the alignment of operational deployment. 17
  18. 18. Organisation system work areas In the context of the organisation, we identify 3 main natures of work: - value creation - research & development - transactional work aka Business as usual (BAU) 18
  19. 19. The Row Picture Enterprise Container Value Container R&D Container BAU Container 19
  20. 20. The Row Picture (Value) Enterprise Container Value Container R&D Container BAU Container strategy strategy update tactical response focus on the present think on the future maintain commodities 20
  21. 21. In an agile organisational perspective value value R&D 21 BAU or Bureaucracy is reduced at its just enough level.
  22. 22. this is SCRUM SCRUM is a management framework mostly used in Software Development the last 20 years. This framework is usually misused as project management tool or as development process. In this document, SCRUM will be used as an organisational scaffolding supporting both complex adaptive system thinking and agile behaviour. 22
  23. 23. Scrum runs like a CAS 23 sprint sprintsprint sprint sprint The intrinsic nature of a sprint is a safe-to-fail container: it’s protected, agents are allowed to experiment. The sprint outcome drives to take decisions based on real data and prioritisation or updates are handled in a resilient manner.
  24. 24. Scrum logic at organisation level 24 release 1 team 1 sprint sprint team x sprint sprint team 1 release 2 team 1 sprint sprint team x sprint sprint team 1 release x team 1 sprint sprint team x sprint sprint team 1
  25. 25. Scrum CAS formula is: 25 Solution focused + Inspect & Adapt + Safe-to-fail container
  26. 26. Enterprise Scrum 26
  27. 27. What is enterprise scrum (ES)? Enterprise Scrum is a customer-centric, co-evolutionary, empirical, subsumption- based management framework to deliver the most business value in the shortest amount of time while balancing the benefits for all people involved, based on an abstraction, generalization, extension and parametrization of Scrum for generic, business, technique-pluggable, and scaled management purposes. 27 Mike Beedle, (Agile Management for the 21st Century)
  28. 28. what defines ES? business agility innovation revolution faster change BUSINESS AGILITY is the ability to the system to allow rapid value creation and to respond to market needs. By empowering the teams to work closely with the market, they are able to action changes on their own. Product Owners are in charge to translate market (customer, user, …) vision and not breaking down management requirements. The organisational model doesn't allow the segregation between business and IT. A “value stream” consist of all the necessary skills to deliver value to the market and not to another silo in the organisation. 28
  29. 29. Business Agility 29 Agile Culture & Mindset Agile Leadership Business Agility Patterns Modern Business Techniques New Technology New Business Models New Organisation Designs
  30. 30. what defines ES? business agility innovation revolution faster change FASTER CHANGE is the ability to the system to allow rapid changes to respond to market needs, new constraints (regulation as ex.). The use of feedback loops allows to identify the necessary changes: - daily standup to identify emerging changes in the development - biweekly reviews to allow changing requirements - monthly backlog updates to align or re-align the organisational roadmap due to these changes Requirement changes are scope changes. If a scope is changed during a sprint, this affects the coherence of the work and you should stop the sprint: changes are never for free. If your organisation has a huge opportunity, then think to create a new team and or stop another program. 30
  31. 31. what defines ES? business agility innovation revolution faster change INNOVATION REVOLUTION . According to the complex adaptive nature of the system, innovation, small pieces of innovation are emerging. Innovation is in the core of the model and the aim is to distille an innovation driven behaviour all around the organisation. Some innovation takes longer, than you can use the R&D track. Some innovation is the result of changes, of defects, of frustrations on the Value track. The challenge is to bring innovation in the BAU track. Revolution is that innovation is up to all the stakeholders of the crowd (organisation). Gives them space to improve and hack the routine. 31
  32. 32. What we also know? and how we can solve it… We all understand that an Enterprise is composed of multiple subparts interconnected with each other. We all know that we need to gather information to take decision. But we also know that nobody is really taking decision. So let’s build a system that gathers enough information in order to take the right decision at the right time. This system shouldn’t be another methodology but something based on the Scrum we are using here. Key is to manage the system and not the people. 32
  33. 33. Concept To ensure the coherence of the organisation, the aim of this paper is to explain how to set up the organisation to ensure best value development flow. Keeping the same light logic as for the delivery teams, Scrum is adapted for a different pace to support: An aligned development of different team initiatives Lead the strategical development and support the tactical translation of this strategy Shield the development teams from strategical deviations during a release loop Manage a consolidated view of team portfolios Lead the program True North or Vision 33
  34. 34. Agile through the Complex Adaptive System Lens SAFE TO FAIL CONTAINER (flexible evolutive boundaries): containers (organisational), iterations (time) INTERACTING DIVERSITY OF EMPOWERED AGENTS: diversity of experiments generates data showing options or solutions trends RESILIENT (EMPIRICALLY) COHERENT (ALIGNMENT) STRATEGY PLANNING: constraints drive resilience, time-boxes, fixed team size, Value/R&D/BAU CONSTRUCTIVE IRRITANT LEADERSHIP LIGHT, SHARP AND NIMBLE: keep the structure nimble, talk about values not methodologies, empower operations, last responsible moment leadership, flat and responsive organisation over cascading baronies. 34
  35. 35. The Model 35
  36. 36. Scrum Scrum has been designed to support Development Programs and its the most used agile framework in the early 21st century. In the meantime, Scrum is usually misunderstood: - only for IT development and not testing and deployment of software - supporting the silo segregation between IT, Business and Infrastructure - framework is understood as a chocolate box and not the scaffolding - abuse of the roles in re-branding the old roles But if you look more deeply in that framework you see a structure enabling CAS: - a protected Sprint is a safe-to-fail container - the inspect-and-adapt cycles are resilience based decisions - servant leadership of scrum masters are constructive irritant - self-management leads to autonomy of the agents - forecasting of work instead of commitment is a behaviour change - only planning and review are “complicated” and at the beginning and the end of each CAS cycles to drive to rapid delivery of “value” So Scrum isn't 100% CAS but 80%. 36
  37. 37. Company Value Stream 37 B Input Output true north gemba value linked to true northA A A A A A AA a a a a a a a
  38. 38. value linked to true north Gemba = customer Feedback 38 Input true north gemba A A A A A A a a a a a a a A A customer feedback collaboration Output B
  39. 39. Enterprise Scrum Model Team Team Team Team crowd Enterprise Portfolio Backlog 39
  40. 40. How does this work? - Organisation gives the company true north and share the expected goals - The crowd gathers to draw how to transform this goals in a Roadmap for the next 3 months - The crowd distribute the goals into the 3 work streams: - Value: what is feasible in short term - R&D: detect opportunities and analysis - BAU: commodities - Every month, the crowd meets and inspect and adapt the results of each team - “value” shows outcomes - “R&D” shows new ideas, opportunities that “value” can pick up - “BAU” share news activities or improvements to reduce transactional work 40
  41. 41. Backlogs as Portfolios During the last decade we discover that the “single” product backlog of scrum teams has evolved to team backlog as a collection of work that the team has to deliver in a certain time including the development of new solutions as the support of the older once. This seems easy but the reality is that you are increasing the complexity of work (lack of coherence) by accepting all kinds of works into team feet (lack of prioritisation). In that order, a team backlog is composed of 3 main workflows: - value: composed of development activities and support of the last version delivered - R&D: contains all the activities not related to the sprint goal or post sprint activities (for the next sprints) like technical spikes, business analysis, or testing (technical, functional, UAT) - BAU: are all the activities which are neither R&D nor Value. Usually the BAU are “acceptable impediments” like information meetings, or time-sheet management, recruiting, etc… This approach allows the team to allocated themselves what capacity on what stream and that on a daily basis (daily scrum). When Sprint is over, at the review, the team highlight their achievements, discoveries according to their portfolio. The Organisation Portfolio is just the consolidation of all team portfolios. Its mission is: - to align all portfolio according to organisation true north or goals - drive the banking stream to allocate budget 41
  42. 42. Banking Track Budget should be able to support business agility and funding is a quite uncomfortable yearly political fight. The Banking Track is working like a Bank where you can ask budget and resource at the end of each monthly cycle. Banking Track is part of the monthly release update meeting or Cycle review. The Banking Track is managed in a BAU stream and takes this basic rules into account: - teams are stable during at least a month cycle - exceptions are possible for R&D due to their specific purposes - the budgeting do not accept contingencies nor buffers - teams can provide savings - teams are the only responsible for their budget or their product owners or scrum masters: budgeting is team’s game 42
  43. 43. 10 principles to distille agile 1. Value: deliver what customer needs early and often 2. Transparence: make “performance” visible 3. Coherence: match demand with capacity 4.Coherence: decisions are taken by doers, ask the team 5. Innovate: be flexible by standardising 6. Innovate: embrace problems 7. Transparence: communicate results, be open and learn 8. Mastery: strengthen your people’s skills 9. Communicate: give an take constructive feedback 10. Coherence: Share and align the vision 43
  44. 44. Let’s call it a Square This is a square, it’s a place of multiple belongings to create life is this square we need people talking to each others, ideas.… Let’s call these “agents”. some of these agents are short term wins, we call them “values” some of these agents are longs term ideas, we call them “R&D” others are neither “values” nor “R&D”, we call them “Business as usual” or “BAU”. According to your strategy, you can invest more in “values” than in “R&D", then you have the risk that your organisation is running in reactive work if you are investing more in R&D, then you need to ensure funding because your Cash-back is delayed if you are investing more in “BAU”, your organisation is doing more administrative works and depends from external funding and the purpose is to keep the structure robust. These structures will typically decline slowly and disappear. ideally, an ES organisation is a mix of the 3 where “BAU”, or transactional work” is reduced at a “just enough” level or completely automatised. Startups and ventures have often a ratio of 60/30/10 (value/ R&D/BAU) and large companies 40/20/40, the ideal target could be 60/35/5 according to the available technology. 44
  45. 45. does this work? review actions are resilient, this means that based on the outcome, only the most valuable options are kept keeping “everything needed” is worthless and destroys the expected dynamics. Leaders has to take a coherent resilient action based on facts and figures emerging from sprint works. if some interesting ideas are emerging from the sprints, leaders can remove this idea from “value” to “R&D” and remove the capacity out of “value “ to the “idea”. change is welcome, and change has a price. manage strategy should be obvious for all agents align first hand-over to agents during a feedback loop or sprint at sprint end, evaluate outcome, update strategy manage tactics agents pull strategical requirements and define tactic to implement strategy diversity of agents creates more options to increase expected value outcome manage container container has to be large enough to support adequate tactic experimentation container size is linked to both strategy deployment and tactical actions container management is based on facilitation and self management review actions 45
  46. 46. 3rd line of defence 1st line of defence SCRUM TEAMS workflow management (project, product), customer, users QA, Risk, Finance,… audit corporate governance principleAgile means close collaboration between customer and teams. now what happens if the customer is managed by 3rd line? 2nd line of defence Adapting Agile to Organisation Lines of defence are protecting the inner circle from outside. they are not micro-managing the inner circles. 46
  47. 47. structure CHIEF PRODUCT O WNER, S CRUM COACH, AGI LE PMO , SOLUTION AR CHIT E CT, T EST LE AD, BUSINESS ( CUST OME R) 1ST LINE OF DEFENCE 2D LINE OF DEFENCE 3RD LINE OF DEFENCE WORKSTREAM LEADE RS HIP TE AM: - PRODUCT LI NE M AN AG E RS - PROGRAM M AN AG E ME NT - SUBJECT MATTE R E X PE RTS - CONTROLLING - ETC… CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER C PO TEAM PO SM TEAM PO SM TEAM PO SM PO SM TEAM TEAM PO SM TEAM TEAM TEAM PO SM PO SM PO SM Yellow circle are the agile teams. They are self managed and free to synchronise themselves. Scrum Masters (SM) and Product Owners (PO) are the only with the ability to pass the line of defence: SM as voice of the team, PO as voice of the customer. Other stakeholders can pass the line only on team´s special request. In the transition phase or the learning stage, the customer is on the 2nd line. By gaining maturity, the customer can move to first line. In particular organisations like digital when high interactivity is requested, customer will be set in 2nd line. 47
  48. 48. who? what? When? 1ST LINE OF DEFENCE 2D LINE OF DEFENCE 3RD LINE OF DEFENCE CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER CUSTOMER C PO TEAM PO SM TEAM PO SM TEAM PO SM PO SM TEAM TEAM PO SM TEAM TEAM TEAM PO SM PO SM PO SM LEVEL 1 (TACTICAL): • MEETS DAILY AT T EAM LE VE L FOR S TATUS • BI-WEEKLY FOR DEMO & CHANGE • WORKS ON SPRI NT BACK LOG LEVEL 2 (STRATEG ICAL): • MEETS WEEKLY AT T E AM LE VE L FOR STATUS • BI-WEEKLY FOR DEMO & CHANGE • WORKS ON PRO DUCT BACK LOG LEVEL 3 (STRATEG ICAL): • MEETS MONTHLY AT PROG RAM LE VE L FOR STATUS, BUDGET & CHANGE • WORKS ON PRO DUCT ROADM AP 48
  49. 49. Jargon 49 TeamsCrowds Scrum has well explained how teams are behaving. In this document, I’ll explain how crowds are behaving and how you can distille both polarisation and swarming. So, let’s adapt the Open Space Agility here.
  50. 50. Meetings principles Swarming: meetings that help to align all teams or crowds together. Swarming events are: Release Planning, Release Update. Polination meetings are in place to share knowledge and inspect and adapt collectively like Release Retrospectives. 50
  51. 51. Meeting Principles communication plan to enable agility in large organisations 51
  52. 52. Roles & Responsibility Matrix only scrum roles only scrum roles only on- demand only boards, jira, wiki responsible accountable consulted informed The aim of this framework is to reinforce engagement by encouraging responsibility in individual commitments. These commitments are voluntary and can’t be pushed in any manner. If the engagement is low, adjust your system to make safe-to-fail experiments happen. Change is not easy for all of us, don’t forget to accompany those fighting against their own fear. 52
  53. 53. 1st Line Meetings (scrum) 1st Line 2 nd Line 3rd Line Daily Stand-ups A Refinement A C(on-demand) C(on-demand) Sprint Planning A C(on-demand) C(on-demand) Sprint Review A A I Retrospective A A: Active C: Consulted I: Informed Progress is made available for all lines on both boards & wiki 53
  54. 54. 1st Line Scrum Process PRODUCT OWNER TRANSLATES VISION IN BACKLOG ITEMS SPRINT PLANNING SESSION WITH DEV TEAM DEV TEAM SPRINTS & MEETS DAILY DEV TEAM, PO & STAKEHOLDERS MEETS TO REVIEW THE POTENTIALLY SHIPPABLE INCREMENT REFINEMENT SESSION WITH DEV TEAM COMMUNICATI ON DEV TEAM RETROSPECTS ON LESSONS LEARNED AND NEW IMPROVEMENTS PRODUCT OWNER TRANSLATES IMPROVEMENT WITH DEV TEAM IN BACKLOG ITEMS USER STORIES ARE ESTIMATED IN STORY POINTS EST IMATION OR PLANNING P OKER EITHER IN REFINEMENT OR IN SPRINT PLANNING 54
  55. 55. 2nd Line Meetings (crowd) 1st Line 2 nd Line 3rd Line Scrum-of-Scrums I A I Grooming C(on-demand) A I Roadmap Update I A C(on-demand) A: Active C: Consulted I: Informed 55
  56. 56. VISION BUILT WITH CUSTOMER AND PRODUCT OWNER CHIEF PRODUCT OWNER TRANSLATES VISION IN BACKLOG ITEMS ROADMAP UPDATE SESSION WITH PO TEAM PO TEAM SPRINTS & MEETS WEEKLY AT SCRUM-OF- SCRUMS ROADMAP UPDATE ACCORDING SPRINT OUTCOMES REFINEMENT SESSION WITH PO TEAM COMMUNICATI ON PO TEAM RETROSPECTS ON LESSONS LEARNED AND NEW IMPROVEMENTS 56 2nd Line Scrum Process
  57. 57. 3rd Line Meetings (crowd) 1st Line 2 nd Line 3rd Line Release Meeting I C(on-demand) A Program SteerCo I C(on-demand) A Portfolio Meeting I I A A: Active C: Consulted I: Informed 57
  58. 58. Roles In this kind of organisation, we should not focus on the job but either on the role that you play within that system. To enable that system, we need: - purpose keepers focusing on the “WHAT” - organisation keepers managing the safe- to-fail containers - agents focusing on the “HOW” In this model, organisation keepers or coaches are keeping the balance between “WHAT” and “HOW”. Unlike traditional Scrum, Product Owners are part of the team and are not an authority. (S)he’s activity is mainly to translate customer’s or user’s expectation. Unlike traditional Agile, coaches are now linked to HR “BAU” to act as “operational HR” helping Human Resources to move out of commodities to Human Relations as keepers of the safe-to-fail containers. 58
  59. 59. Release PRIO RITISED PRODUCT BA CKLOG ESTIMATION ESTIMATION ESTIMATION ESTIMATION ESTIMATION ESTIMATION ESTIMATION ESTIMATION ESTIMATION ESTIMATION Releaseplan Releaseplan - update V0.1 V 0.2 V 0.3 VX Tactical Org Stategical Org 59 source: B. Gloger
  60. 60. “Agile is easy. It’s all about filling gaps and facilitation” –Mélanie Moulin 60
  61. 61. 61
  62. 62. this is WIP. I’m dry for the moment feedback is welcome Pierre pierre.neis@agilesqr.com 62

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