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An agile approach to change management

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Why stop at your IT department? Or an Agile approach to Change Management
Business agility is more than the organization’s IT shop adopting an agile delivery method. Business agility depends on three core capabilities: rapid delivery, strategic sensing, and customer rapport. As such it builds resilience to change as a strategic imperative and eventually it allows businesses to build a strategic advantage in driving change.
Investments in “agile” from an IT perspective will not increase business agility. So what does a company need in order to successfully drive change rather than react to it?
We’ll talk about how creating a resilient organization starts with rapid delivery and why many major organizations are turning their attention to less costly on-demand releases. We’ll look at how customer rapport is the new driver of operational efficiency, where not building something is invariably cheaper than optimizing the operational cost of building anything at all.

Published in: Leadership & Management
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An agile approach to change management

  1. 1. A N A G I L E A P P R O A C H T O C H A N G E M A N A G E M E N T R E G I O N A L S C R U M G AT H E R I N G - T O R O N T O , C A N A D A
  2. 2. L O O K I N G O U T WA R D A F T E R A L M O S T 4 0 0 Y E A R S T H E M I N G D Y N A S T Y C O L L A P S E D I N L E S S T H A N A D E C A D E
  3. 3. • Lifespans of big companies are getting shorter than ever • An increasing number of corporate leaders will lose control of their firm’s • About half of the S&P 500 will be replaced over the next 10 years - I N N O S I G H T E X E C U T I V E B R I E F I N G “We’re entering a stretch of accelerating change in which lifespans of big companies are getting shorter than ever.” www.innosight.com/wp-content/uploads/2016/08/Corporate-Longevity-2016-Final.pdf
  4. 4. C O M P L E X I T Y I S T H E N E W B L A C K , R E S I L I E N C E I S T H E N E W O R A N G E • The pace of change is undermining companies • The goal is no longer stability or domination • Rather experimentation and rapid response, resilience to complex change
  5. 5. R E S I L I E N C E “Resilience is the capacity of a system to absorb disturbance and reorganize while undergoing change so as to still retain essentially the same function, structure, identity, and feedback” [Brian H. Walker, 2004] “Anti-fragility is a property of systems that increases in capability, resilience, or robustness as a result of stressors, shocks, volatility, noise, mistakes, faults, attacks, or failures” [Nassim Nicholas Taleb, 2012] A N T I - F R A G I L E
  6. 6. A N T I - F R A G I L I T Y A N D R E S I L I E N C E • Fragility defines stable, optimized, expert systems • Resilient organizations build capabilities that allow them to adapt • Anti-fragile organizations seek symbiosis and diversity https://dzone.com/articles/software-from-fragile-to-antifragile
  7. 7. P U T P E O P L E F I R S T S M A L L , D E D I C AT E D T E A M S E X C E L 1
  8. 8. H O W A G I L E A R E Y O U ? • Divide number of people (FTE and contract) in IT function by 10 • How many teams do you actually have? • Express ratio as percentage R AT I O A C T U A L / P O T E N T I A L U P P E R Q U A R T I L E > 7 6 % A B O V E M E D I A N > 5 3 % B E L O W M E D I A N < 5 3 % L O W E R Q U A R T I L E < 3 2 % explore.versionone.com/state-of-agile/versionone-11th-annual-state-of-agile-report-2
  9. 9. C R O S S - F U N C T I O N A L T E A M S A R E T H E N O R M • “This is the way we used to work” • Complex problem spaces require different capabilities • In order to recruit the best...
  10. 10. T H E W E S T R U M M O D E L S E R VA N T L E A D E R S H I P B U I L D S R E S I L I E N C E https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1765804/pdf/v013p0ii22.pdf
  11. 11. D E L I V E R O F T E N S H O R T E N I N G T H E C Y C L E T I M E 2
  12. 12. 0 200 400 600 800 1,000 1,200 1,400 1,600 2014 2015 2016 Deploys per Year Deploy Frequency Low performers High performers L E A R N T O D E L I V E R M U C H FA S T E R • Defines learning cycle • Removes need for Command & Control (delivery is the confirmation of progress) • Builds capability (more on that later) State of DevOps Report 2016 (Puppet Labs + DORA)
  13. 13. 0 5 10 15 20 25 30 35 40 < 1 week ~ 1 week > 1 week > 1 month Percentage Respondencts Release Frequency Alpha (2017) Dzone (2018) D E P L O Y F R E Q U E N T LY H O W L O N G D O E S I T TA K E T O G E T A C H A N G E I N T O C U S T O M E R S ’ H A N D S https://alphahq.com/blog/frequently-product-managers-run-experiments-ship-new-features/
  14. 14. H O W O F T E N C A N Y O U D E P L O Y ? D E L I V E RY F R E Q U E N C Y U P P E R Q U A R T I L E < 1 W E E K A B O V E M E D I A N ~ 1 W E E K B E L O W M E D I A N > 1 W E E K L O W E R Q U A R T I L E > 1 M O N T H https://dzone.com/storage/assets/8389652-dzone2018-researchguide-devops.pdf 0 5 10 15 20 25 30 35 40 < 1 week ~ 1 week > 1 week > 1 month Percentage Respondencts Release Frequency Alpha (2017) Dzone (2018) https://alphahq.com/blog/frequently-product-managers-run-experiments-ship-new-features/ • On average, how often do you deploy to production (so your customers can see it)?
  15. 15. R E D U C E T I M E T O M A R K E T I F N O T T E C H - S A M E P R O B L E M …
  16. 16. VA L U E F O C U S D E L I V E R I N G VA L U E N O T A C T I V I T Y 3
  17. 17. M E A S U R I N G S U C C E S S O F A G I L E 2 0 1 7 S TAT E O F S C R U M A N D V E R S I O N O N E S TAT E O F A G I L E S U R V E Y S
  18. 18. - A L A N W E I S S “Ask your customers to be part of the solution. And don’t view them as part of the problem.”
  19. 19. B C A A & E V O “Not more of the same thing, but more from the same team.”
  20. 20. D I S T R A C T I O N C A N B E D E A D LY • Volkswagen has 23.7B Euros on hand • It isn’t the 30B Euros in damages that will kill off VW • It’s the lost time and focus as the industry shifts
  21. 21. 0 10 20 30 40 50 < 1 week < 2 weeks < 6 weeks Rarely, if ever Percentage Respondencts Experimentation Frequency Alpha (2017) VA L U E F O C U S • How frequently do your teams validate the value they deliver? E X P E R I M E N T F R E Q U E N C Y T O P 2 5 % < 1 0 D AY S T O P 5 0 % > 1 0 D AY S B O T T O M 5 0 % R A R E LY, I F E V E R https://alphahq.com/blog/frequently-product-managers-run-experiments-ship-new-features/
  22. 22. E X P E R I M E N T S T H AT VA L I D AT E F E AT U R E D E C I S I O N S E V E RY 1 0 D AY S O R L E S S M O R E T H A N 3 / 4 O F Y O U R D E L I V E RY C A PA B I L I T Y W O R K A S A G I L E T E A M S R E G U L A R LY R E L E A S E T O C U S T O M E R S I N U N D E R A W E E K
  23. 23. T H A N K Y O U D AV E S H A R R O C K @ D AV E S H A R R O C K D AV E . S H A R R O C K @ A G I L E 4 2 . C O M

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