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Agile Management
LeadingTeams with a Complex Mind
Jurgen Appelo
jurgen@noop.nl
Agile Management: Leading Teams with a Complex Mind
Agile ManagementWorkshop (intro)
Explain to the other people at your table why
you are here (instead of somewhere else).
The Management 3.0 Model
Six organizational
views based on
complexity thinking
Emergent, self-organizing, unpredictable
http://www.flickr.com/photos/judepics/
Sometimes adaptive, sometimes not
http://www.flickr.com/photos/hdr400d/
Complex Systems
“A complex system is a system composed of interconnected parts
that as a whole exhibit one or more properties (behavior) not
obvious from the properties of the individual parts.”
Sometimes called the sciences of complexity (plural)
http://cfpm.org/pub/users/bruce/thesis/chap4.pdf
General SystemsTheory
Autopoiesis (how a system constructs itself)
Identity (how a system is identifiable)
Homeostatis (how a system remains stable)
Permeability (how a system interacts with its environment)
Ludwig von Bertalanffy
(biologist)
1901-1972
Study of relationships between elements
Cybernetics
Goals (the intention of achieving a desired state)
Acting (having an effect on the environment)
Sensing (checking the response of the environment)
Evaluating (comparing current state with system’s goal)
Norbert Wiener
(mathematician)
1894-1964
Study of regulatory systems
Dynamical SystemsTheory
Stability (stable states versus unstable states)
Attractors (systems getting sucked into stable states)
Study of system behavior
GameTheory
Competition versus cooperation
Zero sum games versus non-zero sum games
Strategies (including evolutionary stable strategies)
John von Neumann
(mathematician)
1903-1957
Study of co-adapting systems
EvolutionaryTheory
Population (more than one instance)
Replication (mechanism of making new instances)
Variation (differences between instances)
Heredity (differences copied from existing instances)
Selection (environment imposes selective pressure)
Charles Darwin
(naturalist)
1809-1882
Study of evolving systems
ChaosTheory
Strange attractors (chaotic behavior)
Sensitivity to initial conditions (butterfly effect)
Fractals (scale-invariance)
Edward Lorenz
(meteorologist)
1917-2008
Study of unpredictable systems
And more...
Dissipative systems (spontaneous pattern-forming)
Cellular automata (complex behavior from simple rules)
Genetic algorithms (adaptive learning)
Social network analysis (propagation of information)
Study of all kinds of systems
The Body of Knowledge of Systems
Complex systems theory
enables a descriptive approach
to the study of social systems
Complexity
“Complexity is that property of a system which makes it difficult to
predict its overall behavior, even when given reasonably complete
information about its components and their relations.”
http://cfpm.org/pub/users/bruce/thesis/chap4.pdf
“edge of chaos”
“chaordic processes”
System Dynamics
Circular feedback loops and time-delayed relationships
Analysis through simulations and calculations
Jay Wright Forrester
(computer engineer)
1918-
Study of non-linear behavior of systems
SystemsThinking
“Problems” are part of a system
View systems in a holistic manner
Not a science, but a “frame of mind”
Peter Michael Senge
(social scientist)
1947-
Approach to problem solving
Some Criticism
“The strength of systems thinking is its recognition that human
systems are messy, they frequently need focus and alignment; its
weakness is that it assumes that the design of that focus and
alignment is a top down objective based process. […]The ambiguity
of human systems is recognized, but the basic concept of central
control or planning remains at the heart.”
Multi-ontology sense-making - David Snowden (2005)
http://kwork.org/stars/snowden/Snowden.pdf
Some Criticism
“Systems thinking contains a fundamental difficulty right at its
roots.This is to regard human interaction as a system.This
assumption leads to thinking about that interaction as something
about which another human standing outside it makes choices.”
Complexity and Management – Ralph Stacey (2000)
http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/
“Traditional” SystemsThinking
http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/
observer
system
ComplexityThinking
http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/
observers
system
The Unknowns
Knowns Unknowns Unknowns Unknowns
Non-linearity
ComplexityThinking
Don’t separate the designers from the system
Don’t ignore the human part (social complexity)
Don’t ignore the unknown unknowns
Don’t rely (too much) on linear cause and effect
ComplexityThinking = SystemsThinking++
Jurgen Appelo
(idea farmer)
1969-
Exercise: ComplexityThinking
The Management 3.0 Model
View #1: Energize People
People are the most important parts of an
organization and managers must do all they can to
keep people active, creative, and motivated.
Extrinsic Motivation
Desire to achieve goal G
Reward behavior B
Assumption B leads to G
Problems with non-linear effects
Intrinsic Motivation
Desire to achieve goal G
Reward behavior B
Where B = G
No non-linear effects
“16 Basic Desires”
Acceptance The need for approval
Physical Activity Or exercise
Curiosity The need to think
Power The need for influence of will
Eating The need for food
Romance The need for love and sex
Family The need to raise children
Saving The need to collect
Honor Being loyal to a group
Social Contact The need for friends
Idealism The need for purpose
Status The need for social standing
Independence Being an individual
Tranquility The need to be safe
Order Or stable environments
Vengeance The need to strike back
Steven Reiss. Who Am I? The 16 Basic Desires
That Motivate Our Actions and Define Our
Personalities. City: Berkley Trade, 2002
“16 Basic Desires”
Acceptance The need for approval
Physical Activity Or exercise
Curiosity The need to think
Power The need for influence of will
Eating The need for food
Romance The need for love and sex
Family The need to raise children
Saving The need to collect
Honor Being loyal to a group
Social Contact The need for friends
Idealism The need for purpose
Status The need for social standing
Independence Being an individual
Tranquility The need to be safe
Order Or stable environments
Vengeance The need to strike back
Steven Reiss. Who Am I? The 16 Basic Desires
That Motivate Our Actions and Define Our
Personalities. City: Berkley Trade, 2002
“16 Basic Desires”
Acceptance The need for approval
Curiosity The need to think
Power The need for influence of will
Honor Being loyal to a group
Social Contact The need for friends
Idealism The need for purpose
Status The need for social standing
Independence Being an individual
Order Or stable environments
Steven Reiss. Who Am I? The 16 Basic Desires
That Motivate Our Actions and Define Our
Personalities. City: Berkley Trade, 2002
“Self-DeterminationTheory”
Acceptance The need for approval
Curiosity The need to think
Power The need for influence of will
Honor Being loyal to a group
Social Contact The need for friends
Idealism The need for purpose
Status The need for social standing
Independence Being an individual
Order Or stable environments
Edward L. Deci and Richard M. Ryan. The
Handbook of Self-Determination Research.
Rochester: University of Rochester Press, 2004
Competence The need to feel capable
Autonomy The need to choose one’s own actions
Relatedness The need to be socially involved
“Self-DeterminationTheory”
Acceptance The need for approval
Curiosity The need to think
Power The need for influence of will
Honor Being loyal to a group
Social Contact / Relatedness The need for friends
Idealism The need for purpose
Status The need for social standing
Independence / Autonomy Being an individual
Order Or stable environments
Competence The need to feel capable
Edward L. Deci and Richard M. Ryan. The
Handbook of Self-Determination Research.
Rochester: University of Rochester Press, 2004
10 Intrinsic Desires
Acceptance The need for approval
Curiosity The need to think
Power The need for influence of will
Honor Being loyal to a group
Social Contact / Relatedness The need for friends
Idealism The need for purpose
Status The need for social standing
Independence / Autonomy Being an individual
Order Or stable environments
Competence The need to feel capable
“Drive”
Acceptance The need for approval
Curiosity The need to think
Power The need for influence of will
Honor Being loyal to a group
Social Contact / Relatedness The need for friends
Idealism / Purpose The need for purpose
Status The need for social standing
Independence / Autonomy Being an individual
Order Or stable environments
Competence / Mastery The need to feel capable
Daniel H. Pink, Drive: The Surprising Truth
About What Motivates Us. Riverhead, 2009
Exercise: 10 Intrinsic Desires
The Management 3.0 Model
View #2: EmpowerTeams
Teams can self-organize, and this requires
empowerment, authorization, and trust from
management.
Self-organization… a definition
“Self-organization is a process of attraction and
repulsion in which the internal organization of a
system, normally an open system, increases in
complexity without being guided or managed by an
outside source.”
http://en.wikipedia.org/wiki/Self-organization
Organization without
management?
Cool!
but…
Self-organization has a dark side…
Agile Management: Leading Teams with a Complex Mind
Self-organization… the dark side
http://www.flickr.com/photos/agder/2783124139/
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
But people care…
about value.
Agile Management: Leading Teams with a Complex Mind
http://www.flickr.com/photos/sukanto_debnath/504258852/
http://www.flickr.com/photos/suneko/92395757/
http://www.flickr.com/photos/calliope/104661075/
“Self-organization requires that the system is
surrounded by a containing boundary.This condition
defines the "self" that will be developed during the
self-organizing process.”
http://amauta-international.com/iaf99/Thread1/conway.html
The containing boundary has a chance to
direct self-organization
towards value
Directed self-organization
Don’t go here! Go there!
Self-organization is the norm
Management is the special case
Self-organized
For example: a software development team
Self-selected (= self-designed)
Self-organized and system selects its own members
For example: founders of a start-up business
Self-directed (= self-governed)
Self-selected and no direction outside the system
For example: criminal organization
Three levels of
self-organization
The Darkness Principle
“Each element in the system is ignorant of the
behavior of the system as a whole [...] If each element
‘knew’ what was happening to the system as a whole,
all of the complexity would have to be present in that
element.”
http://iscepublishing.com/ECO/ECO_other/Issue_6_3_10_FM.pdf
Therefore, management requires…
Distributed
governance and leadership
Tell: make decision as the manager
Sell: convince people about decision
Consult: get input from team before decision
Agree: make decision together with team
Advise: influence decision made by the team
Inquire: ask feedback after decision by team
Delegate: no influence, let team work it out
Seven levels of
authority in empowerment
Exercise: Delegation Game
The Management 3.0 Model
View #3: Align Constraints
Self-organization can lead to anything, and it’s
therefore necessary to protect people and shared
resources, and to give people a clear purpose and
defined goals.
The Game of Life
(JohnConway)
http://www.bitstorm.org/gameoflife/
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
Agile Management: Leading Teams with a Complex Mind
The Game of Life
1. 3 neighbors = new life
2. 2 or 3 neighbors = stay alive
3. 0 or 1 or > 3 neighbors = death
simple rules, great results
1. 3 neighbors = new life
2. 2 or 3 neighbors = stay alive
3. 0 or 1 or > 3 neighbors = death
management = simple rules, great results?
But does that mean...
1. 3 neighbors = new life
2. 2 or 3 neighbors = stay alive
3. 0 or 1 or > 3 neighbors = death
management = simple rules, great results?
No.
The actual rules => complicated code
The Game of Life
The constraints => a grid, 1 player
The Game of Life
Another
example
Settlers of Catan
It took minutes to define the constraints
It took years to create and tune the rules
(KlausTeuber)
http://www.wired.com/gaming/gamingreviews/magazine/17-04/mf_settlers
complex
non-adaptive
system
we adapt the rules
complex
adaptive
system
the system adapts itselfwe adapt the rules
complex
non-adaptive
system
A manager / team leader
is not a game designer
Don’t create rules
Define constraints (playing field, players)
Let the system create its own rules
Let’s ignore the (subtle) differences for now…
goal
vision
mission
objective
intent
target
aim
Keep it simple
Commander’s intent
A goal in just a few
lines of text
Goal checklist
specific and understandable
simple and concise
manageable and measurable
memorable and reproducible
attainable and realistic
ambitious and stimulating
actionable and assignable
agreed-upon and committable
relevant and useful
time-bound and time-specific
tangible and real
excitable and igniting
inspiring and visionary
value-based and fundamental
revisitable and assessable
Bad example 1
We are committed to providing
outstanding customer
experience, to being a great
place to work, a thoughtful
steward of the environment and
a caring citizen in the
communities where we live and
work.We are passionate about
sustainably connecting people
and places and improving the
quality of life around the world.
Bad example 2
As a company, and as individuals, we
value integrity, honesty, openness,
personal excellence, constructive self-
criticism, continual self-improvement,
and mutual respect.We are
committed to our customers and
partners and have a passion for
technology.We take on big challenges,
and pride ourselves on seeing them
through.We hold ourselves
accountable to our customers,
shareholders, partners, and employees
by honoring our commitments,
providing results, and striving for the
highest quality.
Good example 1
Our mission is to organize the world’s
information and make it universally
accessible and useful.
Good example 2
We help people save money so they
can live better.
Do not allow individual stakeholder goals to
replace extrinsic and emergent goals
Goals are not meant to...
Intimidate people if they cannot achieve them
Goals are not meant to...
Intimidate people if they cannot achieve them
Impress shareholders or others on the sideline
Goals are not meant to...
Intimidate people if they cannot achieve them
Impress shareholders or others on the sideline
Confuse short-term wins with long-term losses
Goals are not meant to...
Intimidate people if they cannot achieve them
Impress shareholders or others on the sideline
Confuse short-term wins with long-term losses
Distract people from outcomes with action plans
Goals are not meant to...
Intimidate people if they cannot achieve them
Impress shareholders or others on the sideline
Confuse short-term wins with long-term losses
Distract people from outcomes with action plans
Overload people with too many objectives
Goals should not be pushed
with financial rewards
And...
http://www.amazon.com/gp/product/1594488843?ie=UTF8&tag=noopnl-
20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1594488843
Exercise:Agile Goal Setting
The Management 3.0 Model
View #4: Develop Competence
Teams cannot achieve these goals if team members
aren’t capable enough, and managers must therefore
contribute to the development of competence.
Safest traffic in the world
1. Marshall Islands
2. San Marino
3. Malta
4. Iceland
5. Netherlands
6. Sweden
7. United Kingdom
8. Switzerland
9. Japan
10. Singapore
http://en.wikipedia.org/wiki/List_of_countries_by_traffic-related_death_rate
http://www.flickr.com/photos/bobjagendorf/4122137519/
http://www.flickr.com/photos/quimbo/20555416/
http://www.flickr.com/photos/lilidelamora/5320093/
http://www.flickr.com/photos/12386296@N08/4055379221/
We can learn how to
manage software teams
by studying management
of similar systems
(like traffic management)
Subsidiarity principle
“The dictionary defines subsidiarity as the idea that a central
authority should have a subsidiary function, performing only those
tasks which cannot be performed effectively at a more immediate
or local level.”
http://en.wikipedia.org/wiki/Subsidiarity
Subsidiarity principle
And thus…
Delegate decisions until you’ve hit a competency problem
(team members decide unless there is some lack of competence)
Precautionary principle
Assuming that things are risky, in
the absence of evidence.
http://en.wikipedia.org/wiki/Precautionary_principle
http://kwebble.com/blog/tag/haarlem
Precautionary principle
And thus…
Decide who has the burden of proof for competency
(assume team members are competent, unless proven they’re not)
http://www.flickr.com/photos/38607288@N03/4087457751/
Shared space
Increased risk perception
People are less mindful when they see no risks
Reduced false security / risk compensation
People show riskier behavior when they think they are safe
http://en.wikipedia.org/wiki/Shared_space
Shared space
And thus…
Remove rules to increase risk perception and reduce false security
But how do we
develop competence?
Three maturity levels (for skill)
Shu traditional wisdom, learning fundamentals (apprentice)
Ha detachment, breaking with tradition (journeyman)
Ri transcendence, everything is natural (master)
(last column: three similar levels in medieval European guild system)
Note: the Dreyfus Model lists five levels of skill acquisition:
Beginner,Advanced Beginner, Competent, Proficient, Expert
http://en.wikipedia.org/wiki/Shuhari
http://en.wikipedia.org/wiki/Master_craftsman
http://en.wikipedia.org/wiki/Dreyfus_model_of_skill_acquisition
Six maturity levels (for discipline)
Oblivious “We don’t even know that we’re performing a process.”
Variable “We do whatever we feel like at the moment.”
Routine “We follow our routines (except when we panic).”
Steering “We choose among our routines by the results they produce.”
Anticipating “We establish routines based on our past experiences.”
Congruent “Everyone is involved in improving everything all the time.”
Gerard Weinberg, Quality Software Management: SystemsThinking
(Alternative: six similar levels in “Agile Made Us Better…” by Ross Petit)
http://www.amazon.com/Quality-Software-Management-Systems-Thinking/dp/0932633226/
http://www.thoughtworks.com/agile-made-us-better
Competence = maturity in 2 dimensions
1. Self-development
People must learn...
urgence vs. importance
time management
boosting memory
finding motivation
2. Coaching
Hire external coaches
Develop competency leaders
Note: manager != coach
3. Certification
By itself a certificate doesn’t mean anything, but...
it can catalyze all other competency measures
4. Social pressure
Let people identify with a small group
Give them shared responsibility for shared goals
5. Infrastructure
Tools must be adaptable, not just customizable
Open databases, APIs, scripts, plug-ins, reports
6. Supervision
Have someone sample/check the products of teams
7. Management
One-on-ones to assess problem situations
360 degree meetings to assess collaboration
1. Self-Development
2. Coaching
3. Certification
4. Social Pressure
5. Infrastructure
6. Supervision
7. Management
7 Approaches to competency development
Exercise: Competence Development
The Management 3.0 Model
View #5: Grow Structure
Many teams operate within the context of a complex
organization, and thus it is important to consider
structures that enhance communication .
The workplace is a network
Individual competence
“We learned that individual expertise did not
distinguish people as high performers.What
distinguished high performers were larger and
more diversified personal networks.”
Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004
Individual competence
“Engineers are roughly five times more likely to
turn to a person for information as to an
impersonal source such as a database.”
Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004
Scale-invariant networks (fractals)
Best communication across all scales
http://gut.bmj.com/content/57/7.cover-expansion
<- preferred
Segmentation of teams
Design Principle 1 (DP1)
(through a manager)
Design Principle 2 (DP2)
(not through a manager)
Communication across teams
(Fred Emery)
<- preferred
Style Structure DP
1 Functional 1 (through manager)
2 Functional 2 (through team)
3 Cross-functional 1 (through manager)
4 Cross-functional 2 (through team)
Value units
System administrators
GUI designers
Project Mgt Office
Community of Practice
Center of Excellence
Human Resources
...
Delivering value to teams
Functional
(DP1)
Functional
(DP2)
cross-
functional
(DP1)
cross-
functional
(DP2)
A
D
C
E
B
Draw a
value network
Panarchy... network of hierarchies and anarchies
Exercise:Value Network Game
The Management 3.0 Model
View #6: Improve Everything
People, teams, and organizations need to improve
continuously to defer failure for as long as possible.
Fitness Landscape
system configuration
performance
The Red Queen’s Race
“It takes all the running
you can do to keep in
the same place.”
Three Drivers of Improvement
Adaptation
Looking backward, reactive, responding to change
Exploration
Trying things out, interactive, experience feedback
Anticipation
Looking forward, proactive, imagining improvement
Three Drivers of Improvement
Ruggedness of Fitness Landscapes
Complexity
catastrophe
Normal
situation
Ideal
situation
Most Improvement Models Look Linear
Stuck in the Fitness Landscape
What now?
Nonlinear Improvement
1, 3, 5
Kaizen
Gradual improvement
2, 4
Kaikaku
Radical improvement
The Strategy of Mutation
Disturbing the system
The Strategy of Crossover
Mix multiple good performers
The Strategy of Broadcasts
Copy innovations
Exercise: Improvement Strategy Game
The Management 3.0 Model
Six organizational
views based on
complexity thinking
Agile Management
LeadingTeams with a Complex Mind
Jurgen Appelo
jurgen@noop.nl
Agile ManagementWorkshop (outtro)
Explain to the other people at your table
what you will take away from this session.
@jurgenappelo (twitter)
slideshare.net/jurgenappelo
jurgenappelo.com (site)
noop.nl (blog)
management30.com (book)
http://creativecommons.org/licenses/by-nd/3.0/
This presentation was inspired by the works of many people, and I cannot
possibly list them all.Though I did my very best to attribute all authors of texts
and images, and to recognize any copyrights, if you think that anything in this
presentation should be changed, added or removed, please contact me at
jurgen@noop.nl.

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Agile Management: Leading Teams with a Complex Mind

  • 1. Agile Management LeadingTeams with a Complex Mind Jurgen Appelo jurgen@noop.nl
  • 3. Agile ManagementWorkshop (intro) Explain to the other people at your table why you are here (instead of somewhere else).
  • 4. The Management 3.0 Model Six organizational views based on complexity thinking
  • 6. Sometimes adaptive, sometimes not http://www.flickr.com/photos/hdr400d/
  • 7. Complex Systems “A complex system is a system composed of interconnected parts that as a whole exhibit one or more properties (behavior) not obvious from the properties of the individual parts.” Sometimes called the sciences of complexity (plural) http://cfpm.org/pub/users/bruce/thesis/chap4.pdf
  • 8. General SystemsTheory Autopoiesis (how a system constructs itself) Identity (how a system is identifiable) Homeostatis (how a system remains stable) Permeability (how a system interacts with its environment) Ludwig von Bertalanffy (biologist) 1901-1972 Study of relationships between elements
  • 9. Cybernetics Goals (the intention of achieving a desired state) Acting (having an effect on the environment) Sensing (checking the response of the environment) Evaluating (comparing current state with system’s goal) Norbert Wiener (mathematician) 1894-1964 Study of regulatory systems
  • 10. Dynamical SystemsTheory Stability (stable states versus unstable states) Attractors (systems getting sucked into stable states) Study of system behavior
  • 11. GameTheory Competition versus cooperation Zero sum games versus non-zero sum games Strategies (including evolutionary stable strategies) John von Neumann (mathematician) 1903-1957 Study of co-adapting systems
  • 12. EvolutionaryTheory Population (more than one instance) Replication (mechanism of making new instances) Variation (differences between instances) Heredity (differences copied from existing instances) Selection (environment imposes selective pressure) Charles Darwin (naturalist) 1809-1882 Study of evolving systems
  • 13. ChaosTheory Strange attractors (chaotic behavior) Sensitivity to initial conditions (butterfly effect) Fractals (scale-invariance) Edward Lorenz (meteorologist) 1917-2008 Study of unpredictable systems
  • 14. And more... Dissipative systems (spontaneous pattern-forming) Cellular automata (complex behavior from simple rules) Genetic algorithms (adaptive learning) Social network analysis (propagation of information) Study of all kinds of systems
  • 15. The Body of Knowledge of Systems Complex systems theory enables a descriptive approach to the study of social systems
  • 16. Complexity “Complexity is that property of a system which makes it difficult to predict its overall behavior, even when given reasonably complete information about its components and their relations.” http://cfpm.org/pub/users/bruce/thesis/chap4.pdf “edge of chaos” “chaordic processes”
  • 17. System Dynamics Circular feedback loops and time-delayed relationships Analysis through simulations and calculations Jay Wright Forrester (computer engineer) 1918- Study of non-linear behavior of systems
  • 18. SystemsThinking “Problems” are part of a system View systems in a holistic manner Not a science, but a “frame of mind” Peter Michael Senge (social scientist) 1947- Approach to problem solving
  • 19. Some Criticism “The strength of systems thinking is its recognition that human systems are messy, they frequently need focus and alignment; its weakness is that it assumes that the design of that focus and alignment is a top down objective based process. […]The ambiguity of human systems is recognized, but the basic concept of central control or planning remains at the heart.” Multi-ontology sense-making - David Snowden (2005) http://kwork.org/stars/snowden/Snowden.pdf
  • 20. Some Criticism “Systems thinking contains a fundamental difficulty right at its roots.This is to regard human interaction as a system.This assumption leads to thinking about that interaction as something about which another human standing outside it makes choices.” Complexity and Management – Ralph Stacey (2000) http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/
  • 23. The Unknowns Knowns Unknowns Unknowns Unknowns
  • 25. ComplexityThinking Don’t separate the designers from the system Don’t ignore the human part (social complexity) Don’t ignore the unknown unknowns Don’t rely (too much) on linear cause and effect ComplexityThinking = SystemsThinking++ Jurgen Appelo (idea farmer) 1969-
  • 28. View #1: Energize People People are the most important parts of an organization and managers must do all they can to keep people active, creative, and motivated.
  • 29. Extrinsic Motivation Desire to achieve goal G Reward behavior B Assumption B leads to G Problems with non-linear effects
  • 30. Intrinsic Motivation Desire to achieve goal G Reward behavior B Where B = G No non-linear effects
  • 31. “16 Basic Desires” Acceptance The need for approval Physical Activity Or exercise Curiosity The need to think Power The need for influence of will Eating The need for food Romance The need for love and sex Family The need to raise children Saving The need to collect Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Tranquility The need to be safe Order Or stable environments Vengeance The need to strike back Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002
  • 32. “16 Basic Desires” Acceptance The need for approval Physical Activity Or exercise Curiosity The need to think Power The need for influence of will Eating The need for food Romance The need for love and sex Family The need to raise children Saving The need to collect Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Tranquility The need to be safe Order Or stable environments Vengeance The need to strike back Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002
  • 33. “16 Basic Desires” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Order Or stable environments Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002
  • 34. “Self-DeterminationTheory” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Order Or stable environments Edward L. Deci and Richard M. Ryan. The Handbook of Self-Determination Research. Rochester: University of Rochester Press, 2004 Competence The need to feel capable Autonomy The need to choose one’s own actions Relatedness The need to be socially involved
  • 35. “Self-DeterminationTheory” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact / Relatedness The need for friends Idealism The need for purpose Status The need for social standing Independence / Autonomy Being an individual Order Or stable environments Competence The need to feel capable Edward L. Deci and Richard M. Ryan. The Handbook of Self-Determination Research. Rochester: University of Rochester Press, 2004
  • 36. 10 Intrinsic Desires Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact / Relatedness The need for friends Idealism The need for purpose Status The need for social standing Independence / Autonomy Being an individual Order Or stable environments Competence The need to feel capable
  • 37. “Drive” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact / Relatedness The need for friends Idealism / Purpose The need for purpose Status The need for social standing Independence / Autonomy Being an individual Order Or stable environments Competence / Mastery The need to feel capable Daniel H. Pink, Drive: The Surprising Truth About What Motivates Us. Riverhead, 2009
  • 40. View #2: EmpowerTeams Teams can self-organize, and this requires empowerment, authorization, and trust from management.
  • 41. Self-organization… a definition “Self-organization is a process of attraction and repulsion in which the internal organization of a system, normally an open system, increases in complexity without being guided or managed by an outside source.” http://en.wikipedia.org/wiki/Self-organization
  • 43. Cool!
  • 45. Self-organization has a dark side…
  • 47. Self-organization… the dark side http://www.flickr.com/photos/agder/2783124139/
  • 55. “Self-organization requires that the system is surrounded by a containing boundary.This condition defines the "self" that will be developed during the self-organizing process.” http://amauta-international.com/iaf99/Thread1/conway.html
  • 56. The containing boundary has a chance to direct self-organization towards value
  • 59. Management is the special case
  • 60. Self-organized For example: a software development team Self-selected (= self-designed) Self-organized and system selects its own members For example: founders of a start-up business Self-directed (= self-governed) Self-selected and no direction outside the system For example: criminal organization Three levels of self-organization
  • 61. The Darkness Principle “Each element in the system is ignorant of the behavior of the system as a whole [...] If each element ‘knew’ what was happening to the system as a whole, all of the complexity would have to be present in that element.” http://iscepublishing.com/ECO/ECO_other/Issue_6_3_10_FM.pdf
  • 63. Tell: make decision as the manager Sell: convince people about decision Consult: get input from team before decision Agree: make decision together with team Advise: influence decision made by the team Inquire: ask feedback after decision by team Delegate: no influence, let team work it out Seven levels of authority in empowerment
  • 66. View #3: Align Constraints Self-organization can lead to anything, and it’s therefore necessary to protect people and shared resources, and to give people a clear purpose and defined goals.
  • 67. The Game of Life (JohnConway) http://www.bitstorm.org/gameoflife/
  • 84. The Game of Life 1. 3 neighbors = new life 2. 2 or 3 neighbors = stay alive 3. 0 or 1 or > 3 neighbors = death simple rules, great results
  • 85. 1. 3 neighbors = new life 2. 2 or 3 neighbors = stay alive 3. 0 or 1 or > 3 neighbors = death management = simple rules, great results? But does that mean...
  • 86. 1. 3 neighbors = new life 2. 2 or 3 neighbors = stay alive 3. 0 or 1 or > 3 neighbors = death management = simple rules, great results? No.
  • 87. The actual rules => complicated code The Game of Life
  • 88. The constraints => a grid, 1 player The Game of Life
  • 90. Settlers of Catan It took minutes to define the constraints It took years to create and tune the rules (KlausTeuber) http://www.wired.com/gaming/gamingreviews/magazine/17-04/mf_settlers
  • 92. complex adaptive system the system adapts itselfwe adapt the rules complex non-adaptive system
  • 93. A manager / team leader is not a game designer Don’t create rules
  • 94. Define constraints (playing field, players) Let the system create its own rules
  • 95. Let’s ignore the (subtle) differences for now… goal vision mission objective intent target aim
  • 96. Keep it simple Commander’s intent A goal in just a few lines of text
  • 97. Goal checklist specific and understandable simple and concise manageable and measurable memorable and reproducible attainable and realistic ambitious and stimulating actionable and assignable agreed-upon and committable relevant and useful time-bound and time-specific tangible and real excitable and igniting inspiring and visionary value-based and fundamental revisitable and assessable
  • 98. Bad example 1 We are committed to providing outstanding customer experience, to being a great place to work, a thoughtful steward of the environment and a caring citizen in the communities where we live and work.We are passionate about sustainably connecting people and places and improving the quality of life around the world.
  • 99. Bad example 2 As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self- criticism, continual self-improvement, and mutual respect.We are committed to our customers and partners and have a passion for technology.We take on big challenges, and pride ourselves on seeing them through.We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.
  • 100. Good example 1 Our mission is to organize the world’s information and make it universally accessible and useful.
  • 101. Good example 2 We help people save money so they can live better.
  • 102. Do not allow individual stakeholder goals to replace extrinsic and emergent goals
  • 103. Goals are not meant to... Intimidate people if they cannot achieve them
  • 104. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline
  • 105. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline Confuse short-term wins with long-term losses
  • 106. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline Confuse short-term wins with long-term losses Distract people from outcomes with action plans
  • 107. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline Confuse short-term wins with long-term losses Distract people from outcomes with action plans Overload people with too many objectives
  • 108. Goals should not be pushed with financial rewards And... http://www.amazon.com/gp/product/1594488843?ie=UTF8&tag=noopnl- 20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1594488843
  • 111. View #4: Develop Competence Teams cannot achieve these goals if team members aren’t capable enough, and managers must therefore contribute to the development of competence.
  • 112. Safest traffic in the world 1. Marshall Islands 2. San Marino 3. Malta 4. Iceland 5. Netherlands 6. Sweden 7. United Kingdom 8. Switzerland 9. Japan 10. Singapore http://en.wikipedia.org/wiki/List_of_countries_by_traffic-related_death_rate http://www.flickr.com/photos/bobjagendorf/4122137519/
  • 116. We can learn how to manage software teams by studying management of similar systems (like traffic management)
  • 117. Subsidiarity principle “The dictionary defines subsidiarity as the idea that a central authority should have a subsidiary function, performing only those tasks which cannot be performed effectively at a more immediate or local level.” http://en.wikipedia.org/wiki/Subsidiarity
  • 118. Subsidiarity principle And thus… Delegate decisions until you’ve hit a competency problem (team members decide unless there is some lack of competence)
  • 119. Precautionary principle Assuming that things are risky, in the absence of evidence. http://en.wikipedia.org/wiki/Precautionary_principle http://kwebble.com/blog/tag/haarlem
  • 120. Precautionary principle And thus… Decide who has the burden of proof for competency (assume team members are competent, unless proven they’re not)
  • 122. Shared space Increased risk perception People are less mindful when they see no risks Reduced false security / risk compensation People show riskier behavior when they think they are safe http://en.wikipedia.org/wiki/Shared_space
  • 123. Shared space And thus… Remove rules to increase risk perception and reduce false security
  • 124. But how do we develop competence?
  • 125. Three maturity levels (for skill) Shu traditional wisdom, learning fundamentals (apprentice) Ha detachment, breaking with tradition (journeyman) Ri transcendence, everything is natural (master) (last column: three similar levels in medieval European guild system) Note: the Dreyfus Model lists five levels of skill acquisition: Beginner,Advanced Beginner, Competent, Proficient, Expert http://en.wikipedia.org/wiki/Shuhari http://en.wikipedia.org/wiki/Master_craftsman http://en.wikipedia.org/wiki/Dreyfus_model_of_skill_acquisition
  • 126. Six maturity levels (for discipline) Oblivious “We don’t even know that we’re performing a process.” Variable “We do whatever we feel like at the moment.” Routine “We follow our routines (except when we panic).” Steering “We choose among our routines by the results they produce.” Anticipating “We establish routines based on our past experiences.” Congruent “Everyone is involved in improving everything all the time.” Gerard Weinberg, Quality Software Management: SystemsThinking (Alternative: six similar levels in “Agile Made Us Better…” by Ross Petit) http://www.amazon.com/Quality-Software-Management-Systems-Thinking/dp/0932633226/ http://www.thoughtworks.com/agile-made-us-better
  • 127. Competence = maturity in 2 dimensions
  • 128. 1. Self-development People must learn... urgence vs. importance time management boosting memory finding motivation
  • 129. 2. Coaching Hire external coaches Develop competency leaders Note: manager != coach
  • 130. 3. Certification By itself a certificate doesn’t mean anything, but... it can catalyze all other competency measures
  • 131. 4. Social pressure Let people identify with a small group Give them shared responsibility for shared goals
  • 132. 5. Infrastructure Tools must be adaptable, not just customizable Open databases, APIs, scripts, plug-ins, reports
  • 133. 6. Supervision Have someone sample/check the products of teams
  • 134. 7. Management One-on-ones to assess problem situations 360 degree meetings to assess collaboration
  • 135. 1. Self-Development 2. Coaching 3. Certification 4. Social Pressure 5. Infrastructure 6. Supervision 7. Management 7 Approaches to competency development
  • 138. View #5: Grow Structure Many teams operate within the context of a complex organization, and thus it is important to consider structures that enhance communication .
  • 139. The workplace is a network
  • 140. Individual competence “We learned that individual expertise did not distinguish people as high performers.What distinguished high performers were larger and more diversified personal networks.” Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004
  • 141. Individual competence “Engineers are roughly five times more likely to turn to a person for information as to an impersonal source such as a database.” Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004
  • 142. Scale-invariant networks (fractals) Best communication across all scales http://gut.bmj.com/content/57/7.cover-expansion
  • 144. Design Principle 1 (DP1) (through a manager) Design Principle 2 (DP2) (not through a manager) Communication across teams (Fred Emery) <- preferred
  • 145. Style Structure DP 1 Functional 1 (through manager) 2 Functional 2 (through team) 3 Cross-functional 1 (through manager) 4 Cross-functional 2 (through team)
  • 146. Value units System administrators GUI designers Project Mgt Office Community of Practice Center of Excellence Human Resources ... Delivering value to teams
  • 148. Panarchy... network of hierarchies and anarchies
  • 151. View #6: Improve Everything People, teams, and organizations need to improve continuously to defer failure for as long as possible.
  • 153. The Red Queen’s Race “It takes all the running you can do to keep in the same place.”
  • 154. Three Drivers of Improvement Adaptation Looking backward, reactive, responding to change Exploration Trying things out, interactive, experience feedback Anticipation Looking forward, proactive, imagining improvement
  • 155. Three Drivers of Improvement
  • 156. Ruggedness of Fitness Landscapes Complexity catastrophe Normal situation Ideal situation
  • 157. Most Improvement Models Look Linear
  • 158. Stuck in the Fitness Landscape What now?
  • 159. Nonlinear Improvement 1, 3, 5 Kaizen Gradual improvement 2, 4 Kaikaku Radical improvement
  • 160. The Strategy of Mutation Disturbing the system
  • 161. The Strategy of Crossover Mix multiple good performers
  • 162. The Strategy of Broadcasts Copy innovations
  • 164. The Management 3.0 Model Six organizational views based on complexity thinking
  • 165. Agile Management LeadingTeams with a Complex Mind Jurgen Appelo jurgen@noop.nl
  • 166. Agile ManagementWorkshop (outtro) Explain to the other people at your table what you will take away from this session.
  • 168. http://creativecommons.org/licenses/by-nd/3.0/ This presentation was inspired by the works of many people, and I cannot possibly list them all.Though I did my very best to attribute all authors of texts and images, and to recognize any copyrights, if you think that anything in this presentation should be changed, added or removed, please contact me at jurgen@noop.nl.