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Rigorous independent Governance - The New Equation For Sustainable Competitive Advantage

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Governance Teams in organizations adopting Agile often struggle to define Agile-compatible governance practices. Agile Governance can appear to be oxymoronic. A choice between a bad option - "Agile is a blank check. You'll get what you get when you get it." and an even worse option - "Iron Triangle governance for Agile Delivery." Things get worse when powerful executives demand status reports using metrics that Agile teams believe represent waterfall thinking. Often, such conversations can be polarizing, causing people with shared goals to dig into adversarial camps, struggling to communicate with each other. So how can we build bridges across these chasms and shift from polarizing to unifying interactions?

These slides from a Scrum.org Scrum Pulse webinar, in which I propose a rigorous, frame-work independent approach that constructively channelizes the valid desire for governance. I frame governance in terms of value that will help us unify organizations without getting sucked into polarizing conversations about delivery frameworks. I also frame governance as a powerful way to enable sustainable competitive advantage and provide a short, memorable equation that might help entire organizations align towards a shared goal.

The ideas in this webinar have been applied in multiple organizations across diverse industries - real estate, sports and banking. In each case, there was CXO support, validating the hypothesis that this approach helps elevate the conversation to Executives.

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Rigorous independent Governance - The New Equation For Sustainable Competitive Advantage

  1. 1. RIGOROUS, INDEPENDENT GOVERNANCE & THE NEW EQUATION FOR SUSTAINABLE COMPETITIVE ADVANTAGE Presented by Ravi Verma, Moderated by Eric Naiburg
  2. 2. © 1993-2017 Scrum.org, All Rights Reserved 2 • Improving the profession of software delivery About Scrum.org – The Home of Scrum About Scrum Pulse • Free Webinar by Scrum.org, with unifying themes: – Increased focus on empiricism and agility – Continuous delivery of business value – Building trust and respect between business and I.T. • How you can plug-in… – Register and view previously recorded webinars at Scrum.org/ScrumPulse or Youtube.com/scrumdotorg – Tweet requests for future sessions, mention @scrumdotorg #scrumpulse
  3. 3. © 1993-2017 Scrum.org, All Rights Reserved 3 • Your microphones will be muted throughout • We encourage questions and discussion! – Tweet your questions: @scrumdotorg, #ScrumPulse – Type questions into the webinar questions box: – Type comments into the webinar comments box: Quick Guidelines
  4. 4. © 1993-2016 Scrum.org, All Rights Reserved About: Ravi Verma •PST & EBMgt Consultant with Scrum.org •Founder & The Org Whisperer at SmoothApps •~20 years of experience in Software Delivery •Agile Coach experience with companies from 10 to 10K team members •Co-creator of Software Code of Ethics, Scrum Pulse & Scrum Tapas •Creator of Sabotagile Manifesto, Sabotagile Principles and Agilato Video Series •Binge watcher of crime dramas on Netflix and Amazon Prime (mute + captions) •Vegetarian opposed to eating most vegetables (especially green ones)
  5. 5. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube ACKNOWLEDGEMENTS • These ideas are inspired but not endorsed by many inspiring thinkers. 5 KEN SCHWABER PATRICIA KONG DON McGREAL RALPH JOCHAM GUNTHER V. MARK NONEMAN DISCLAIMER: All flaws are mine.
  6. 6. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube “I LOVE SCRUM!” “I LOVE AGILE!” 6 “I HATE SCRUM!” “I HATE AGILE!” AUDIENCE?
  7. 7. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube “I LOVE SCRUM!” “I LOVE AGILE!” 7 “I HATE SCRUM!” “I HATE AGILE!”
  8. 8. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube “I LOVE SCRUM!” “I LOVE AGILE!” 8 “I HATE SCRUM!” “I HATE AGILE!”
  9. 9. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube DO YOU LOVE SUSTAINABLE MEASURABLE BUSINESS VALUE? 9 DO YOU HATE NEEDLESS DESTRUCTION OF HUMAN POTENTIAL?
  10. 10. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube “I LOVE SCRUM!” “I LOVE AGILE!” 10 “I HATE SCRUM!” “I HATE AGILE!”YOU ARE IN THE RIGHT PLACE
  11. 11. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 12 MEDIOCRE SOLUTION TO THE RIGHT PROBLEM IS BETTER THAN THE PERFECT SOLUTION TO THE WRONG PROBLEM.
  12. 12. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 13 RIGOROUS REGULAR GOVERNANCE
  13. 13. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 14 FRAMEWORK INDEPENDENT GOVERNANCE
  14. 14. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 15 VALUE BASED GOVERNANCE
  15. 15. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 16 FOR… SUSTAINABLE COMPETETIVE ADVANTAGE
  16. 16. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube UNSUSTAINED COMPETETIVE ADVANTAGE 17 SUSTAINED COMPETETIVE ADVANTAGE ANY EXAMPLES…?
  17. 17. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube UNSUSTAINED COMPETETIVE ADVANTAGE 19 SUSTAINED COMPETETIVE ADVANTAGE WHAT MAKES THEM DIFFERENT?
  18. 18. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube COMPLACENCE 20 CLARITY WHAT MAKES THEM DIFFERENT?
  19. 19. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube COMPLACENCE 21 CLARITY WHAT MAKES THEM DIFFERENT? BLOCK-BERRY SPACE-MART SYNDROME
  20. 20. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube COMPLACENCE 22 CLARITY WHAT MAKES THEM DIFFERENT? YES, BUT IN THE REAL WORLD... SYNDROME
  21. 21. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 24 WHAT ARE THE MOST VALUABLE QUESTIONS WE COULD HAVE ASKED?
  22. 22. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 25 WAS IT VALUABLE?
  23. 23. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 26 WAS IT TIMELY?
  24. 24. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 27 WAS IT SUSTAINABLE?
  25. 25. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 28 DELIVER VALUE SUSTAIN VALUE SUSTAIN VALUE CONCEIVE VALUE Was it valuable? Was it timely? Was it sustainable?
  26. 26. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 29 BUT HOW DO WE KNOW?
  27. 27. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 30 DELIVER VALUE SUSTAIN VALUE SUSTAIN VALUE CONCEIVE VALUE Was it valuable? Was it timely? Was it sustainable?
  28. 28. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 31 DELIVER VALUE SUSTAIN VALUE SUSTAIN VALUE CONCEIVE VALUE Was it valuable? Was it timely? Was it sustainable?
  29. 29. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 32 SUSTAINABLE COMPETETIVE ADVANTAGE =Ev{CxDxS}
  30. 30. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube GUT-BMgt HIPPO-BMgt 33 EBMgt™EVIDENCE
  31. 31. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube WHAT ARE THE TOP 3 INDICATORS FOR EACH KVA IN YOUR CONTEXT…? 34
  32. 32. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 35 TEAM VELOCITY INDIVIDUAL VELOCITY %-AGE INCREASE IN VELOCITY %-AGE SPRINT COMMITMENT MET DEFECT LEAKAGE RATIO %-AGE ON-TIME DELIVERY %-AGE ON-BUDGET DELIVERY %-AGE ON-SCOPE DELIVERY
  33. 33. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 36 “WHAT GETS MEASURED GETS MANAGED” -Peter Drucker
  34. 34. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube ILLUSTRATIVE KVA’S / KPI’S SCRUM.ORG EBMgt ™ 37 CurrentValue Ability to InnovateTime to Market Installed Version Index Usage Index Innovation Rate Defects Release Frequency Release Stabilization Cycle Time Revenue per Employee Employee Satisfaction Customer Satisfaction Product Cost Ratio 1. CONCEIVE VALUE2. DELIVER VALUE3. SUSTAIN VALUE
  35. 35. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 38 ELEVATE EMPIRICISM TO EXECUTIVES E3
  36. 36. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 39 SUSTAINABLE COMPETETIVE ADVANTAGE E3 =Ev{CxDxS}
  37. 37. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 40 WHAT MIGHT BE THE TOP 3 OBJECTIONS…?
  38. 38. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 41 1. CORRECTNESS
  39. 39. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 42 2. CAUSALITY
  40. 40. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 43 3. COMPLEXITY
  41. 41. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 44 HOW CAN WE MANAGE THE 3 C’s 1.CORRECTNESS 2.CAUSALITY 3.COMPLEXITY
  42. 42. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 45 SUSTAINABLE COMPETETIVE ADVANTAGE E3 = Ev{CxDxS} + MC3
  43. 43. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 46 SO NOW WE HAVE KVA’S & KPI’S
  44. 44. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 47 ARE THEY LEADING OR LAGGING
  45. 45. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 48 WHY BOTHER…?
  46. 46. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 49 LEADING LAGGING Usually… Business outcome related Easy to measure Hard to influence Usually… Activity related Hard to measure Easy to influence
  47. 47. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube Plot indicators on this spectrum… 50 LEADING LAGGING CONCEIVE VALUE DELIVER VALUE SUSTAIN VALUE
  48. 48. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube What’s the point of maximum leverage? How would you influence it? 51 LEADING LAGGING CONCEIVE VALUE DELIVER VALUE SUSTAIN VALUE
  49. 49. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 52 LEADING LAGGING CONCEIVE VALUE DELIVER VALUE SUSTAIN VALUE What’s the ultimate lag indicator for your product? Why?
  50. 50. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube WILDLY IMPORTANT GOAL Express your product’s ultimate lag indicator as a WIG… • Increase / Decrease: • From: • To: • By: 53 INDICATOR CURRENT VALUE TARGET VALUE TARGET DATE
  51. 51. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 54 VALUE BASED SCOREBOARD Time ULTIMATE LAG INDICATOR LEADING INDICATORS QUALITY ISSUES Time Time CYCLE TIME Time TimeTime Time VALUE TimeTime Time ENGAGEMENT Create a value based scoreboard
  52. 52. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 55 IMAGINE…
  53. 53. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 56 YOU COULD TRAVEL TO THE FUTURE…
  54. 54. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 57 YOUR CURRENT COMPANY IS THE POSTER-CHILD OF BLOCK-BERRY-SPACE-MART SYNDROME OF THE FUTURE
  55. 55. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 58 HOW WOULD YOU FEEL?
  56. 56. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 59 WHAT WOULD YOU DO TODAY TO CREATE A BETTER TOMORROW?
  57. 57. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 60 WHAT MIGHT GET IN THE WAY?
  58. 58. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube COMPLACENCE 61 CLARITY CHOOSE WISELY! EVIDENCE
  59. 59. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 62 REGULARLY INSPECT VALUE
  60. 60. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 63 USE WHATEVER DELIVERY FRAMEWORK WORKS FOR YOU
  61. 61. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 64 IN CASE YOU USE SCRUM…
  62. 62. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube •Inspect your product scoreboard •Learn •Adapt your future 65
  63. 63. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube GUT-BMgt HIPPO-BMgt Activity-BMgt Output-BMgt Efficiency-BMgt Scope-Time-Budget- BMgt Guarantee-BMgt 66 EBMgt™ Effectiveness-BMgt Outcome-BMgt Value-BMgt Adaptation-BMgt Humility-BMgt Curiosity-BMgt Learning-BMgt EVIDENCE
  64. 64. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 67 ENABLE RIGOROUS, REGULAR VALUE DRIVEN GOVERNANCE VALUE… 1. UNIFIES US (FRAMEWORKS POLARIZE US) 2. RESONATES WITH EXECUTIVES 3. ENABLES SUSTAINABLE COMPETETIVE ADVANTAGE
  65. 65. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 68 SUSTAINABLE COMPETETIVE ADVANTAGE E3 = Ev{CxDxS} + MC3
  66. 66. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube APPLICATION 69 DELIVER VALUE SUSTAIN VALUE 1. Incrementally develop your product scoreboard. 1. Add one indicator every 30 days or less 2. Inspect every 30 days or less 2. If you use Scrum… 1. Inspect during each Sprint Review 2. Extract validated learning in Sprint Review and Sprint Retrospective 3. Adapt your direction every 30 days or less! • Backlog Refinement • Release Planning • Sprint Planning
  67. 67. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 70 “ONLY THE PARANOID SURVIVE” -Andy Groves
  68. 68. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube LEARN MORE… 71
  69. 69. © SmoothApps 2018 | Blog | Training | Twitter | LinkedIn | Facebook | NEW – Agilato Videos on YouTube 1. What was the most valuable insight from this presentation? 2. How will you apply it to achieve sustained business Agility…? 3. What would you like to learn more about? Q&A / TAKE-AWAYS 72 MOST VALUABLE INSIGHT HOW YOU WILL APPLY IT WHAT YOU WILL EXPLORE
  70. 70. © 1993-2017 Scrum.org, All Rights Reserved 73 • Have more questions? Tap into the collective experience and expertise of the Scrum.org community. • https://www.scrum.org/forum Connect with the Scrum.org Community
  71. 71. © 1993-2017 Scrum.org, All Rights Reserved 74 • https://www.scrum.org/ resources/blog • Articles to further your Scrum knowledge and improve your Agile practices. • Written by our community of world-class Professional Scrum Trainers. Blog - Read Insights and Tips from Our Trainers
  72. 72. © 1993-2017 Scrum.org, All Rights Reserved 75 Webcasts & Videos – Learn From Our Trainers
  73. 73. © 1993-2017 Scrum.org, All Rights Reserved 76
  74. 74. © 1993-2017 Scrum.org, All Rights Reserved 77 Thank You! @scrumdotorg

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