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Management 3.0 applied at lean experience

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Management 3.0 applied at lean experience

  1. 1. Management 3.0 - Applied “Give me a place to stand and with a lever I will move the whole world.” - Archimedes of Syracuse (287 BC – c.  212 BC) Johan Oskarsson – The agile leader
  2. 2. Agile transformation and adaptation (Martie’s Grow Structure view) Change Learning’s & program thoughts Organization reengineering Study/findingsDelaval Software Program Vision
  3. 3. …offers complete solutions for milk production and animal husbandry …empowers the dairy farmer with improved control over milk production …caters to customers worldwide with herd sizes ranging from 1 to 50 000Internal3
  4. 4. TetraLaval Group Tetra Laval Tetra Pak DeLaval SidelInternal4
  5. 5. ”Old School” no moreInternal5
  6. 6. Heavy dutyInternal6
  7. 7. Loose HousingInternal7
  8. 8. Voluntary Milking System – VMSInternal8
  9. 9. The world’s first automatic rotary system DeLaval AMR™Internal9
  10. 10. Swinging Cow BrushInternal10
  11. 11. Study the system Study/findings “If you do not know how to ask the right question, you discover nothing” – W. Edwards Deming
  12. 12. Study the system Objective: Software development at D&E D&E BA Capital Gods Delaval International System within system
  13. 13. Learning’s - Limits to grow “The quality and huge “The project models technical debt backlog had was not suited for“The energy level in to be handled” software development” development could be enhanced” Good quality products “Projects was handled Reinforcing Frequent Balancing without full insight to feedback Deliveries feedback interdependencies ” “The insight in planning and visions could be “Customer felt a growing improved” frustration because of to few deliveries”
  14. 14. Learning’s - Limits to grow “Low energy “Low quality with huge “Stiff low value linear “Low visibility environment” technical debt backlog” project models” and blind decision making “No learning with long organization” Visibility/ cadence” Creative Project models/ Informed environment processes decision Personal Good mastery making quality products “Projects planned Planning without concern to Deliveries interdependencies ” “Unmotivated Motivated people” people Sales Reinforcing feedback Balancing feedback Project Business size Empowered Shared proposals Customer teams Budget goals demands “Large projects which spans “Stiff hierarchy “Low insight in “Budget process “Growing frustration over years” with centralized management, which promotes power” planning and command & because of lack visions” control” of deliveries” The system had ended up in a too ordered state where very few products were delivered
  15. 15. Overall vision ( A sense of urgency was already in place) Vision “The only thing worse than being blind is having sight but no vision” – Helen Keller
  16. 16. Overall vision - Empowerment I’m change leader and software development manager, I need power to act
  17. 17. Overall vision - Empowerment My boss 3-4 weeks Me, Trust
  18. 18. Overall vision - Empowerment My manager 3-4 months Trust Myself
  19. 19. Overall vision - Empowerment My leader Trust 4-12 months &I
  20. 20. Overall vision – Quantum leap in mindset Agile Waterfall
  21. 21. Overall vision – Leader characteristics Development Director “my leader” Head of Testing Head of PMO Me
  22. 22. Overall vision – Leader characteristics Value and flow design of system Motivate intrinsic desires Integrate decision making with workAdaptive & exploratory change attitude Measurement related to purpose Learning attitude “What matters!” attitude to customers Act on the system management Cooperative attitude towards suppliers Open and honest
  23. 23. Overall vision - Agile Organization Characteristics Ordered Traditional Complex AgileBureaucratic, top-down, multilevel hierarchy, policies and procedures that create Perspective & Nonbureaucratic, outside-in, system view, few level hierarchy, policies and procedures many complicated internal interdependencies Structure that produce the minimal internal interdependencies needed to serve customers Functional, activities and order Design & System Demand, value and flow Separated from work Decision making Integrated with work Output, targets, standards, related to budget, few performance information Measurement Capability, variation, related to purpose, many performance information systems, systems distributed to executives only providing data on customers especially, distributed widely Contractual Attitude to customers What matters Contractual Attitude to suppliers Cooperative, emergent Expectation that management will manage lower-level, people and budgets, Role of Expectation that management empower lower-level to manage, act on the system, training to managers only Management training to many people Control, specifications Ideal Learning, people-people collaboration Reactive, projects Change Adaptive & exploratory, iterative Extrinsic, closed bonus system, reached targets Motivation Intrinsic, open bonus system, the goal is its own reward Inward focused, centralized, slow decisions making, political, risk adverse Culture Externally focused, empowering, quick decisions making, open and honest, risk tolerant
  24. 24. Overall vision – Agile system big picture for frequent deliveries ofquality products Por%olio  council   Product  visions   Business  Epic   Por$olio  manager   Por-olio  vision   Product  manager  &  Council  Facilitator   Architectural  Epic   BUSINESS  /D&E   Por-olio  backlog   Architecture  runway   MANAGER   Product  manager   Product  manager   Product  manager     Product  council   Release     Features   Release   Program  manager   backlog   Project  managers   Team  C     System  architect   PROJECT  /D&E   MANAGER   Configura:on  manager   Team  B     Release  manager   Quality  Assurer   Team  A     Incremental   Team  A     Team  B     Team  C     Team   backlog   Product  Owner   Product  Owner   Product  Owner   Stories  &  Tasks   Agile  Master   Agile  Master   Agile  Master   SOFTWARE  /     Architect   Architect   HARDWARE  /TEST   Testers   Testers   Testers   Architect   MANAGER   Developers   Developers   Developers   Sprint  backlogs   Memo   Memo   Memo   IteraBve   Scaling agile D. Leffingwell
  25. 25. Change program Change program “If you don’t like something, change it. If you can’t change it, change your attitude” – Maya Angelou
  26. 26. Change program – “The social architecture” Study the system Why Benefits realizations Consolidate New paradigmConceptualize Return on investment Initiation & Setup Procedures & System design How What guidelines Test of concept Flawless system Training & Instructions preparation Deployment Coordinate
  27. 27. Change program – Guiding Coalition Management team Change team Management X X X X X X X Informal leaders X X X Leadership
  28. 28. Change program Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines Systemtransformation to AgileAgile portfolio/ program management Continuous integrationsRequirementmanagement Test strategy Back-end support
  29. 29. Change program Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines Systemtransformation to AgileAgile portfolio/ program management Continuous integrationsRequirementmanagement Test strategy System Back-end support
  30. 30. Change program Individuals Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines Systemtransformation to AgileAgile portfolio/ program management Continuous integrationsRequirementmanagement Test strategy System Back-end support
  31. 31. Change program Individuals Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines Systemtransformation to AgileAgile portfolio/ program management Continuous integrationsRequirementmanagement Test strategy System Back-end support Interactions
  32. 32. Change program Individuals Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines Systemtransformation to AgileAgile portfolio/ program management Continuous integrationsRequirementmanagement Test strategy System Back-end support Interactions
  33. 33. Organizational reengineering Organization reengineering “I think the players win the championship, and the organization has got something to do with it, don’t get me wrong. But don’t try put the organization above the players” – Michael Jordan
  34. 34. Different organizational structure – Informal Structure
  35. 35. Different organizational structure – Informal Structure•  Social networks/structure•  The social network is always there like it or not, can be good, can be bad, very powerful•  The social network influences the organization•  Usually ignored
  36. 36. Different organizational structure – Value Creation Structure Value Unit (Cell)
  37. 37. Different organizational structure – Value Creation Structure•  Flow based structure•  Any organization have it, but it is only through this structure that performance, value and market success can be created•  Most organization structures are not build this way•  Can together with Systems Theory be mapped as network of Value Units (cells), interrelated by value flow, pay, communication, etc•  Each value unit either creates value for other network units or for the outside market•  Value creation structure and flows are in many organizations being crippled by other types of structures Value Unit (Cell)
  38. 38. Different organizational structure – Formal Structure Top-down power distribution
  39. 39. Different organizational structure – Formal Structure•  Produce compliance, but never value•  From Scientific Management Top-down power•  A common fallacy among managers is that distribution work(value) is done through the formal structure•  The formal hierarchy is not a demand from customer, but usually a (wasteful) internal centralization of power
  40. 40. Different organizational structure – Distribution of structuresAll organizations have it (more or less…) 50% 30% 20%
  41. 41. Different organizational structure – Distribution of structures •  ProcessesAll organizations have it (more or less…) •  Planning •  Centralized coordination •  Side effect of the social interactions •  Hierarchy •  Coffee breaks •  Top-down decision making •  Friends •  Micro managing •  Generation of value •  BUDGET! •  Political rule breaking •  Real performance •  Hidden agenda •  Learning •  Information seeking •  Dialogues •  Autonomy •  Prototyping •  Collaboration •  Customer demand focus 50% 30% 20%
  42. 42. Different organizational structure – Distribution of structuresAll organizations have it (more or less…) 50% 30% 20%
  43. 43. Different organizational structure – Distribution of structures 70% 20% 10%
  44. 44. Different organizational structure – Distribution of structuresOrganizational transformation, what is that?I call it part of management! 70% 20% 10%
  45. 45. Organizational reengineering – New organization PC Software Software Engineering Engineering Value unit Emb Merge of two departments Included system specialist (product •  40 people included consultants owners) and system tester into a value •  Off-shore in India unit •  Multi-site development I Poland •  +5 system testers •  +8 product owners
  46. 46. Organizational reengineering – New teams formation T X-functional T-shaped teams Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Effective
  47. 47. New teams formation workshops •  Belbin theory as a theme to shift focus from daily work and to learn how to build teams •  Workshop 1: Train Scrum Masters and NYAC  Kompetens  AB E-­Interplace Master Programmer Architects in Belbin PROFILGENOMSNITT  FÖR  GRUPP theory and to crate a guiding coalition •  Workshop 2: Pair Scrum Masters and Master Programmer Architects Observera  att  den  här  rapporten  bygger  på  den  kompletta  profilen. •  Workshop 3: Train and inform all others in Belbin and how to create new teams •  Workshop 4: Team creation, exercises, 100 self-selection, specialization, team values, 80 members, Belbin reports 60 •  Workshop 5: Follow up and minor 40 changes (3 changes) 20 0 ME SP IMP CF TW CO PL SH RI
  48. 48. Result Virtual product owner Scrum Master Platform Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt Team Team Program Team India Milking Team Team Feeding Team
  49. 49. Result Virtual product owner Scrum Master Platform Program manager Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt System Architect Configuration Manager Team Team Program Team Release manager India Quality Assurer Milking Team Solution Analyst Team Feeding Test leader Team
  50. 50. Result Virtual product owner Scrum Master Platform Program manager Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt System Architect Configuration Manager Team Team Program Team Release manager India Quality Assurer Business Manager Milking Team Solution Analyst Team Feeding Test leader Team Portfolio Manager
  51. 51. Result Virtual product owner Scrum Master Platform Program manager Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt System Architect Configuration Manager Team Team Program Team Release manager India Quality Assurer Business Manager Milking Team Solution Analyst Team Feeding Test leader Team Line Managers Portfolio Manager
  52. 52. Organizational reengineering – Widen job titles T Widen job titles X-functional T-shaped teams Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected
  53. 53. Widen job titles (wider responsibility) All team members are now software engineers! Programmers have to do more: •  Test more •  Install at farms •  Requirement analysis Testers: •  Do different types of test •  Get involved in requirement analysis •  Get involved in design •  Get involved in planning Requirement people: •  Test more •  Always available
  54. 54. Organizational reengineering – Communities of practice T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected
  55. 55. Result – Various forums(communities) and reoccurring meetings Scrum Master Forum Daily Scrum Platform Scrum of Scrum Architect Forum Team Meeting Farm Herd Program team Testers Forum Automation Mgmt meeting Team Team Program Product management Developers Forum Team meeting Project Portfolio India Milking Board Team Team Customer Support Team meeting Feeding Team
  56. 56. Organizational reengineering – New teams formation T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Value adding hierarchy
  57. 57. Value adding hierarchy – Program team, the center of the unit “Center” Serves the periphery “Periphery” Reaction & decision “Business Area” Decentralized decision-making
  58. 58. Organizational reengineering – New teams formation T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Value adding hierarchy Scalable
  59. 59. Scaling (~65 people) Platform Team Farm Herd Automation Mgmt Team Team Program Team India Milking Team Team Feeding Team
  60. 60. Scaling (~100-150 people, 10 teams)
  61. 61. Scaling a formal structure is easy
  62. 62. Scaling a formal structure is easy
  63. 63. Scaling a formal structure is easy
  64. 64. Scaling a formal structure is easy
  65. 65. Scaling a formal structure is easy
  66. 66. Scaling a formal structure is easy
  67. 67. Scaling a formal structure is easy
  68. 68. Scaling Value Creation Structure is complex and more complicated
  69. 69. Scaling Value Creation Structure is complex and more complicated
  70. 70. Organizational reengineering – New teams formation T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Value adding hierarchy Scalable
  71. 71. Software Program of Continuous Delivery Software Program “It is always wise to look ahead, but difficult to look further than you can see” – Winston Churchill
  72. 72. Software Program – Break down of a projectIdea Concept Development Launch BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8 Scope (fix) – Time (1-2 years not usual) – Cost (yearly budget) Architectural Epics Project Epics Releases Cost per Epic Business Epics Quality Development Improvements EpicsIdea Concept Launch BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8 Shorten lead-times to market
  73. 73. Software Program – Break down of a projectIdea Concept Development Launch BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8 Scope (fix) – Time (~1-2 years not usual) – Cost (yearly budget) Architectural Epics Project Epics Releases Cost per Epic Business Epics (Architectural & (Integration order) (yearly budget) Prioritized Business) Quality Development Improvements EpicsIdea Concept Launch BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8 Shorten lead times for first time delivery of customer value, PSI multiple times during project life-time Shorten lead times for first feedback, opportunity to adapt to changing demands and possibility to close a project without sunk-cost, etc
  74. 74. Software Program – Continuous Delivery of Multiple ProjectsSingle point of entry, handles all variation… System Releases Inc n + 1 Inc n + 2 Inc n + 3 Inc n + 4 System Architecture Quality ReleasesProject A Project B Project C Project D
  75. 75. Software Program - Scaled Scrum PSI PSI PSI PSI PSI Inc 1 Inc 2 Inc 3 Inc 4 Inc 5 Weekly Scrum of Scrums Year 1 Year 2 •  -------- •  -------- •  -------- •  -------- •  -------- •  -------- RC PSI Increment backlog Sprint planning Sprint •  -------- Field •  -------- meeting retrospective •  -------- test •  -------- •  -------- •  -------- Hardening Joint teams Software PPB 1 period 3 retrospective integration PPB 2 weeks meeting One-pager release report Pre-planning Release •  Build release • Aggregated increment meeting planning meeting candidate burndown •  Demo •  Release review • Status &progress each meeting Epic • Improvements to be done • Impediments Daily Scrum
  76. 76. Software Program – IRL Visualization Projects pulse board Support issue board Software Program board 1 year floating window Program team improvement Kanban Software Program board board current increment Team Kanban board
  77. 77. Learning’s & thoughts Learning’s & thoughts “It’s all about where your mind’s at” – Kelly Slater
  78. 78. Learnings – Team formation “Scrum Masters “What should the not easy to find!” Platform program team do?” Team Farm Herd “How will it all “What should the Automation Mgmt work?” team specialization Team Team be?” Program Team “More people is India complicated!” “Is this the right Milking Team Team team for me?” Feeding Team “We need more people in the team?”
  79. 79. Learning’s – Widen job titles/roles “I’m specialized in C#, should I now do C++?” “I’m a programmer, do I “It is scary to meet a have to system test?” customer!” “Access to testers when we need them!” “Access to requirement people when we need them!”
  80. 80. Learning’s – Communities of practices “The Program team“Each forum needs a meeting works well in afacilitator who is a driving Kanban structure!”force!” “The PPBs need a lot of “One hour a week is not preparations!” enough for architecture work!”
  81. 81. Learning’s - Value adding hierarchy “Don’t specify, grow & “I need resources to do explore! ” this, to do that….”“Who is responsible!” “The program team shall serve the development teams, not the other way around!”
  82. 82. Learning’s - Change “To change the system, you have to “It is mindset which is the most be out there, where it happens, at all important to change, the model and times!” processes are secondary!” “Changes are hard, it takes time, a lot of effort and a lot of pain!”
  83. 83. My thought about Management 3.0… “Universal, not only for software development.”
  84. 84. My thought about Management 3.0…and complexity “Recognize different situations and understand when to approach them with complexity and when to use good practices in ordered situations.”
  85. 85. My thought about Management 3.0…and setting constrains “As a manager, set constrains and understand what the difference is from rules, and be comfortable when it doesn’t turn out the way I thought it would.”
  86. 86. My thought about Management 3.0…and practices “To work with emerging practices, to explore and adapt rapidly. Don’t push the system when it doesn’t do what I want, but to change the angle and try something else.”
  87. 87. My thought about Management 3.0…and structure “Fractal organization scaling really changed the way I thought about how to create an effective structure. Scale it up in theory and imagine the problems, solve them using fractal theory and optimize for flow, demand and value. Scale down but use the same structure.”
  88. 88. My thought about Management 3.0…and changing “How to change the world? Start with “why”, then “how” and verify with “what”. The mojito model can be really effective when used with good preparations and thorough analysis before applied. Easy to see what I did wrong looking back, don’t under-estimate the amount of work needed to plan for future changes. It truly is complex.” Change  Management  3.0  
  89. 89. My thought about Management 3.0…and vision “Unless a vision starts with “why” and “how” not enough will follow. “what” is attractive only to the early adopters, the early and late majority don’t follow freely “what”. When I failed with “why” and “how” I tried the old command & control, use my power as a manager. I told them to do … which was wrong and the result was nowhere to my satisfaction. BAD MANAGER!!” “what” = specification/command “why” = incentive/motivation “how” = sense-making
  90. 90. My thought about Management 3.0…over all “New door to many very useful theories and practices.”
  91. 91. My thought about Large Scale Agile “Stay releasable, always!!”
  92. 92. Said about planning the release…. “…we cut and we cut, and cut until there was nothing left. We are down to the bare minimum of the minimum. It was a horrendous day.” - Fernando Mazeris, System Director
  93. 93. Said about planning the release…. “Today we deliver on time with better control of the quality. To improve also on the scope we are turning best practice advice on structure and routines into action. “ - Ola Markusson, Director Development & Engineering
  94. 94. Said about scrum…. “…scrum and all is fine, but I have an other model, JDT – Just Do It!” - Jonas Wahlgren, programmer
  95. 95. Software Program•  Study the system•  Create a value based vision•  Setup a change program•  Refactor the organization towards a flow based system which scales•  Chose multiple suitable Agile models…….and don’t forget to change your mindset, it is thehardest part… Thank you
  96. 96. Me… Johan Oskarsson johan-oskarsson @johanoskarsson www.captaintrouble.com Johan.oskarsson@knowit.se +46 073 3355778

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