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How to support agility in a company using agile scorecard

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While anyone agrees about the benefits of agility, most implementations that we see are more about "process" than about "culture" in their nature. Agility is not only about making things faster, but also about a focus on better delivering of a customer value.

From this presentation you will learn how to support your efforts in building an agile company using an agile scorecard approach. We will talk about describing a company's mission, business goals, tracking the leading efforts and controlling the end results.

You will learn how to organize a discussion around the ways a company can accomplish its objectives and align the end actions with the delivery of the customer value. In other words, how to make a company's success everyone's job by making employees accountable for what they do, what results they achieve, and how this helps to execute overall strategy.

This talk will be especially interesting for those who already have mastered agile approach and now are looking for a systematic way to incorporate it into the company's culture.

Published in: Business
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How to support agility in a company using agile scorecard

  1. 1. How to support agility in a company using agile scorecard By Aleksey Savkin
  2. 2. Agility is great, but what IS IT actually? Agility is not only about making things faster… …it is about a focus on better delivering of a customer value! Business scorecards help management with this as well… Let’s then use agile scorecard to support agility!
  3. 3. AGILE Scorecard – Safety Rules 1. “Scorecard” is a buzz word, so be careful when you use it. – It is not (only) about indicators/KPIs, so don’t get confused by the word “scorecard.” – It is very similar to the “Balanced Scorecard,” but it is another buzz word even more dangerous than just “scorecard.” 2. Don’t call every number with a meaning a “KPI,” instead call it an indicator or metric. It’s better to call it something like “Our way to win!”
  4. 4. Agile scorecard. Step 1. Mission • What is your mission? – It is boring? Generic? – Do people know it? – Does it motivate them? • Put it on the top of the agile scorecard!
  5. 5. Agile scorecard. Step 2. STRATEGY • What is your strategy? – Does it include: • The analysis of the challenge • The analysis of its reasons • The coherent action plan • Be prepared for the controlled experiments! Challenge ActionsReasons
  6. 6. Agile scorecard. Step 2. STRATEGIC THEMES • Playing with strategic hypothesis (3 strategic themes) • A company is good at all strategic themes and achieved excellence at one of them
  7. 7. Agile scorecard. Step 3. STRATEGY MAP • Mapping the strategy (specific objectives) – How does the value creation support your mission? – How are financial results linked to the created customer value? – What do your customers need? – How do you satisfy customer’s needs? – Where do you need to focus your future efforts? HOW? HOW? HOW?
  8. 8. Agile scorecard. Step 4. INDICATORS • How do we know that we are on the right track? – Leading indicators – predicting the future – Lagging indicators – explaining the history
  9. 9. STOP! Are you doing this alone? • Is your team emotionally connected with your mission? – If not, you might be in trouble soon. • Strategy is a collective product – It must shine on all levels from a top managers to employees. • Business goals are not mandated – They are discussed and “aligned” with top level priorities
  10. 10. AN EXAMPLE is WORTH A thousand PICTURES • Grow your agile scorecard vertically – from Mission to Finance, Customer Value, Operations, and Learning. • Let’s have some fun and build a agile scorecard quickly…
  11. 11. AN EXAMPLE is WORTH A thousand PICTURES • Add more layers to your agile scorecard – Show how the departments are going to help the company to achieve this
  12. 12. Strategy is also about NOT doing something • Crash-test a new idea – Use agile scorecard to understand if/how the new idea supports your strategy • Use a strategy map as a base for future discussions about new ideas How do we make it happen?
  13. 13. Monitoring performance / tracking progress Leading Indicator Lagging Indicator Lagging Indicator Leading Indicator Action Plan Action Plan
  14. 14. Main TAKEAWAYS • “Top-to-bottom” directives are replaced with a discussion around strategy. • “Carrot and stick” motivation style is replaced with actual buy in and commitment. • “Formal long-term plans” are supported by short-term controlled experiments. • Shifting a focus from “doing my job” to creating a value for a customer. • Employees report not just the progress, but the performance
  15. 15. RECOMMENDED BOOKS AND ARTICLES • “Good Strategy/Bad Strategy” by Richard Rumelt • “The Strategy-Focused Organization” by Kaplan & Norton • “The Execution Shortcut” by Jeroen De Flander • Our articles at bscdesigner.com
  16. 16. About speaker Aleksey Savkin, CEO at BSC Designer. Author of the books and articles about the Balanced Scorecard, Key Performance Indicators. His areas of expertise include business strategy, performance management, agile software development, and remote team’s management. He helps Spain’s companies, as well as businesses all over the world to describe their strategies and achieve excellence in the strategy execution. Contact me: 4savkin<at>gmail.com www.bscdesigner.com

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