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Agile 2015 - Navigating Organizational Change

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Einstein said "We cannot solve our problems with the same thinking we used when we created them" yet many organizations that want to adopt Agile end up using existing organizational structures to make it happen. That is, they create a centralized team to roll Agile out, define metrics, create a dashboard, communication and training plan and finally a Sharepoint site to push the change outwards. The outcome ends up being another failed Agile transformation story because people either resisted change or they failed to change their organizational culture.

This isn't an 'Agile' problem, it's a structure problem. The real issue is that organizational structures are designed to serve the internal purposes of the organization, not their customers or the value they create for their customers.
In this session we'll explore real organizations that are thriving by structuring in radically different ways. That includes apply the concepts of dual organizational operating systems, de-centralized networks, structuring around value streams, horizon planning and full-on organizational explosion.

Published in: Business
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Agile 2015 - Navigating Organizational Change

  1. 1. NAVIGATING  THE  COMPLEXITY  OF   ORGANIZATIONAL  CHANGE Declan Whelan & Jason Little @dwhelan @jasonlittle #agile2015
  2. 2. the A-team game
  3. 3. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 purpose We are all part of the A-Team Greeting Card company. We are branching out into postcards. Our target market is agile and lean geeks. The goal of this game is to make as many postcards as you can in 10 minutes. There will be two rounds.
  4. 4. B.A. Architect Developer TesterProject Manager
  5. 5. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015
  6. 6. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015
  7. 7. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 rules You all have specific roles depending on your table. Review your role for what you need to do. Please note the pre-requisites that must be met before you can start to work. You score when you successfully deploy a post-card to the customer.
  8. 8. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 round 1 p p pp p project managers a a aa a architects d d dd d developers t t t t t testers b b bb b business analysts Note: only the project manager can leave the table.
  9. 9. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 round 1 Reminder: only the project manager can leave the table.
  10. 10. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 round 2 1 b t p a d 2 b t a d 3 b t a d 4 b t a d 5 b t a d p p p p Reminder: self-organize but prerequisites must be maintained
  11. 11. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 round 2 Reminder: self-organize but prerequisites must be maintained
  12. 12. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 build feature what customers want request
  13. 13. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 requirementsrequest feature analysis design code test deploy Handoff Handoff Handoff Handoff Handoff what customers get
  14. 14. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 “We  cannot  solve  our   problems  with  the     same  thinking  we   used  when  we   created  them”
  15. 15. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 Debrief At your tables, answer the questions on the debrief sheet
  16. 16. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 organizational boundaries Agile Pilot Team “Thou Shalt Not Pass!!” 1  Year Scrum,  XP,  Kanban User  Stories,  BDD,  CI,  CD   Retros,  multiple  projects
  17. 17. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 version one ‘barriers’ 0 15 30 45 60 2006 2007 2008 2010 2011 2012 2013 2014 Failure to Change Culture General Resistance to Change Lack of Skill Lack of Management Support 9 Year “Barriers to Agile” Trend from Version One “State of Agile” Survey
  18. 18. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 70%  of  all  changes  fail
  19. 19. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 30% succeed 1995 – Kotter: 30% 1998 – Turner and Crawford: 33% 2005 – Procsi: 29% 2008 – Mckinsey: 30% 2011 – Standish Group: 34% Hammer and Champy – 1993 Beer and Nohria – 2000 Senturia – 2008 http://www.bcs.org/upload/pdf/markhughes-060910.pdf
  20. 20. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 I  want  faster,   better,  cheaper How  can  I  test   in  an  Agile  way? How  can  I  write   code  in  an  Agile   way? How  can  I   gather   requirements  in   an  Agile  way?
  21. 21. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 “Misalignment  happens  when  the   organizational  structure  is  not   aligned  with  the  espoused  theory   of  the  organization’s  purpose.” - Craig Larman, Creator of LeSS
  22. 22. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 HR Change AgileAgile Pilot Team
  23. 23. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 requirementsrequest feature analysis design code test deploy Handoff Handoff Handoff Handoff Handoff remember this?
  24. 24. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 Communication structures are mis-aligned with cross-functional collaboration
  25. 25. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 ? ? ! Managers get ‘removed from the loop’ and blamed by upper management for losing control
  26. 26. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 culture  follows  structure TRANSFORMATION!
  27. 27. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 culture  follows  structure TRANSFORMATION! ANDAND
  28. 28. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 what  transformation  means Shared  Values   (culture) Strategy Structure Systems Skills Style Staff McKinsey 7S Change Model
  29. 29. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 a  new  ‘old  way’  of  organizing Horizon  1 Horizon  2 Horizon  3 Stability Experimentation “Innovation” The Alchemy of Growth The Granularity of Growth
  30. 30. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 create  a  petri  dish Horizon  1 Horizon  2 SAFe, Agile pilots, ‘Scrumify’ existing teams, mandated ‘innovation time’ Horizon  3 Create a new company inside the existing company that WILL NOT conform to any existing organizational boundaries!
  31. 31. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 500,000+ registered businesses in the US alone Maybe 10 examples of non-startup companies that are organizing differently King Spotify Intuit (not us, the Quickbooks folks!) TELUS Buurtzorg Zappos
  32. 32. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 3  tools  to  navigate  the  complexity  of   organizational  change 1.change canvas 2.perspective mapping 3.blast radius
  33. 33. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 1- Change Canvas http://leanchange.org/canvases/
  34. 34. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 EXECUTIVE MANAGER TEAMS/ PERSPECTIV DAT SUPPORTING THE HOLDING BACK THEME THEME 2 - perspective mapping leanchange.org/perspectivemapping
  35. 35. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 3 - blast radius leanchange.org/blastradius CUSTOMERS Processes Affected PRODUCT 1 DEV QA PROCESS STATUS REPORTS PILOT TEAM OPS DEPENDENT TEAM(S) People Affected Directly Affected In-Directly Affected Observers + Movers - Immovables Moveables + + - MARKETING - ! Hard to change “Easier” to change !
  36. 36. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 simple. but  not  easy.
  37. 37. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015  Organizations  are  implicitly   optimized  to  avoid  changing  the   status  quo  middle-­‐  and  first-­‐level   manager  and  “specialist”  positions  &   power  structures. Larman’s Law: Your only impediment to transformation.
  38. 38. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 inspiration
  39. 39. LEANINTUIT.COM @jasonlittle  @dwhelan  #agile2015 references leanchange.org leanintuit.com adecadeofagile.com http://www.mindtools.com/pages/article/newSTR_91.htm http://www.craiglarman.com/wiki/index.php?title=Larman %27s_Laws_of_Organizational_Behavior aDecadeOfAgile.com

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