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Business Agility and Organisational Learning

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Many companies facing the dilemmas of business change, tries to adopt Agile methods and practices in order to achieve the benefits of Agile. However, all they end up with is the "Cargo Cult". This is due to their short term pursuit to achieve quick productivity gains to stem the delivery chaos which is inherent in a traditional delivery model. They fail to realise that any change effort has to start with people; as it is the culture that will determine the sustainability of the change.

In this presentation I will take you through the concepts of business agility and organisational learning and how a focus on culture can help the organisations to become more competitive overtime.

Published in: Business
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Business Agility and Organisational Learning

  1. 1. The  capacity  to  learn  is  a  gift;  the  ability  to  learn  is  a  skill;  the  willingness  to  learn  is  a  choice.  Brian  Herbert Business  Agility  &  Learning  Organisation LAST  Conference  2015,  Melbourne
  2. 2. Structure Business  Agility   &  People   Engagement Structural   Issues/Culture Learning   Disabilities  in   Organisations Challenges Learning   Disciplines
  3. 3. Shoaib  Shaukat Principal  Consultant  @  AZRA Leading  Agile  Adoption  @  Citi  Power Leading  Continuous  Improvement  Program  @  Citi  Power
  4. 4. Sense Respond Business   Agility Adapt
  5. 5. Business  Agility  -­‐>  Competitive  Advantage
  6. 6. 27% Almost  one-­‐third  (27%)  of  respondents  say  that  their  organisation  is  at  a   competitive  disadvantage  because  it  is  not  agile  enough. Source:  Towers  Watson  2012
  7. 7. To  be  successful  we  want   people  to  be  fully  enthusiastic   and  involved  with  the  work!
  8. 8. Source:  Towers  Watson  2012 Nearly  65%  of  the  global  workforce  is  disengaged  with  the   organisation!!
  9. 9. Nearly  90%  of  the  executives   surveyed  by  the  Economist   Intelligence  Unit  believe  that   organisational  agility  is  critical  for   business  success.. Yet  most  companies  admit  they  are  not  flexible   enough  to  compete  successfully!
  10. 10. Source:  Towers  Watson  2012 Excellent  contribution  when  highly  engaged! Impact  of  under-­‐engaged  employees  on  the   performance  of  organisation??
  11. 11. Despite  recognising  it  as  important    consistently    spending  on  people   development  programs  why  organisations  are  failing  to  engage  their   workforce?
  12. 12. We  are  running  21st Century businesses  with  20th Century  workplace  practices  and  programs,  and   19th Century  Mindset!
  13. 13. 1880 1900 1930 1940 1990 2000 2010 F.  Taylor 1960 1970 1980 TPS  Developed TSM  Developed TSM  in  use TPS  in  use Taichii  Ohno Deming Toyota  Production  System Theory  of  Scientific  Management One  best  way  of  doing   the  job “First  Class  Men”  to  do  each  job Pay  per  piece Duties  of  Management Total  Quality   Management Just  In  Time Avoidance  of  waste Jidoka -­‐ Automation Flexible  Production Customer  Focus Evolution  of  Systems  and  Practices Evolution  of  Management  Practices  and  Mental  Models Cost  Accounting Performance   Management TargetsPlanning Service  levels Economies  of  scale Lean System   Thinking Cycle  times Pull
  14. 14. Peter  Senge’s 7Learning  Disabilities Source:  Peter  Senge,  The  Fifth  Discipline  p.  17-­‐26 Lack  of  big  picture Passing  on  blame Reactivity  is  mistaken  as   proactivity Short  term  goals Slow  Reaction Overreliance  on  experience   learning Skill  incompetence
  15. 15. This image cannot currently be displayed. 1st Disability I  am  what  my  position  is:   (Lack  of  big  picture)
  16. 16. 2nd Disability The  enemy  is  out  there  -­‐ Passing  on  blame   Associated  with  a  state  of  mind  that  is  used  to  be  suspicious  of   the  others  and  on  passing  blames..  [Lack  of  accountability].
  17. 17. 3rd Disability Illusion  of  taking  charge:   Proactive-­‐ness  can  really  be  reactiveness  in  disguise.  True  pro-­‐ activeness  comes  from  seeing  how  our  own  actions  contribute   to  problems.
  18. 18. 4th Disability  -­‐ Fixation  on  Events:   Associated  with  focus  and  engagement  in  events  and  details  ..   Distracting  the  focus  of  the  organisation  ..  The  focus  is  on  the   problem  and  not  on  the  causes  and  consequences..
  19. 19. In  this  disability  the  organisation  is  unable  to  connect  things  to   each  other  focuses  on  short  term  and  neglects  long  term   targets. 4th Disability  -­‐ Fixation  on  Events:  
  20. 20. 5th Disability  -­‐ The  parable  of  the  boiled  frog: Appears  when  an  organisation  overlooks  small  but  constant   changes  ..  And  get  used  to  neglect  minor  changes,  which  may   lead  to  aggravation,  threatening  it  overtime.
  21. 21. Can  you  put  a  frog  in  a  pot  and  cook  it  without  causing  it  to  jump   out  of  the  pot?
  22. 22. Can  you  put  a  frog  in  a  pot  and  cook  it  without  causing  it  to  jump   out  of  the  pot? Scientific  experiments  have  shown  that  if  a  frog  is  placed  in  a  pot  with  water,  and   you  lift  the  temperature  slowly  but  continuously  the  frog  will  get  used  to  the   change  and  will  not  feel  the  danger  until  it  dies.
  23. 23. 6th Disability Delusion  of  learning  from   experience Associated  with  dependency  on    previous   experiences  and  personal  intelligence  to   deal  with  situations..  we  develop   experience  through  trial  and  error  but  do   you  reckon  that  past  experiences  will  yield   same  results  in  different  times,  places  and   people?
  24. 24. 7th Disability Myth  of  Management  Team Associated  with  management’s   desire  to  appear  as  a  cohesive   group  that  is  pulling  in  the  same   direction.
  25. 25. Do  you  see  the  challenge  coming?
  26. 26. Forces  of  Change New  Disruptive   Technologies Government  and   Legislative   changes Continuous   Improvements Social  Media Rising  Customer   Expectations Global   Competitiveness
  27. 27. The  law  of  learning is  the  same  in  all  parts  of  life. The  starting  point  need  to  be:  the  establishment  of  a  workplace  culture  that  addresses   organisational  learning  disabilitiesand  supports  positive  energy,  and  thus  positive  learning.
  28. 28. Key  Challenges In  this  triad  of  People,  Process   and  Technology;  process   optimisation  and  technology   deployment is  given  a  lot   more  importance  and   organisations  are  largely   driven  by  this.
  29. 29. Key  Challenges Learning  starts  with  people.
  30. 30. Diligence Obedience Passion Creativity Initiative Intellect Human  Capabilities  (Source:  Gary  Hamel  – Future  of  Management,  2007) Commodities  &  Engagement
  31. 31. Learning  Disciplines  for  Business  Agility people  who  are  passionate,  creative  and  take   initiative  to  make  an  impact. allow  people  to  define  purpose  and  have  the   independence  to  work  around  what  they  enjoy. enable  continuous  learning  and  discovery  by   allowing  people  to  align  their  purpose  with   customer  needs. organisational  support  programs  for  people  to   unlock  their  potential  (e.g.  job  tailoring).   Organisational   Learning Personal   Mastery System   Thinking Mental   Models Shared   Vision Team   Learning
  32. 32. Learning  Disciplines  for  Business  Agility We  are  linear  thinkers  in  a  non-­‐linear  world.   Here  lies  our  limitation  as  a  System  Thinker. Real  world  is  a  complex  interdependency  of   people,  processes,  technologies  and   environments. Continuously  expand  the  horizon  of  learning  by   brining  various  teams  to  collaborate  on  customer   needs. Blur  functional  boundaries. Opening  value  stream  analysis  to  enable  wider   learning. Organisational   Learning Personal   Mastery System   Thinking Mental   Models Shared   Vision Team   Learning
  33. 33. Learning  Disciplines  for  Business  Agility They  are  deeply  ingrained  assumptions,   generalisations,  experiences  or  images  that   influence how  we  understand  the  world  and  how   we  take  actions. Promote  critical  thinking,  constructive  criticism   and  debate as  part  of  the  dialog  process  that   allows  the  teams  to  look  at  their  work   objectively  and  align  with  purpose. Experimentation  &  recovering  from  failure. Cross  functional  collaboration  on  work  activities   allows  people  to  see  big  picture  and  adjust  their   mental  models  gradually. Organisational   Learning Personal   Mastery System   Thinking Mental   Models Shared   Vision Team   Learning
  34. 34. Learning  Disciplines  for  Business  Agility Shared  vision  -­‐>  organised  pursuit  of   success • Values  and  behaviours • Helps  engage  business  units  and   functions. • Linking  streams  of  work  to  business   strategy. • Rethink  functional  boundaries  and   organisational  structure.   Organisational   Learning Personal   Mastery System   Thinking Mental   Models Shared   Vision Team   Learning
  35. 35. Learning  Disciplines  for  Business  Agility Successful  teams  understand  their  limits  and   opportunities. • Individuals  learn  more  in  groups  and  when   there  is  a  culture  of  knowledge  sharing  and   trust. • Enable  dialogue,  the  capacity  of  team   members  to  suspend  personal  assumptions   and  enter  into  a  genuine  thinking  together   mode. • Promote  trust,  team  work  and  collaboration. • Individual  KPI/Targets  -­‐>  Team  Purpose • Career  paths  consistent  with  cultural   objectives. Organisational   Learning Personal   Mastery System   Thinking Mental   Models Shared   Vision Team   Learning
  36. 36. Scrum XP LeanVisual  Management Continuous  Delivery Kanban Agile  toolset  is  a  mean  to  advance  business  agility. MVP Spotify Holacracy Others
  37. 37. Sense Respond Business   Agility Adapt Recap Learning  starts  with  People Change  starts  with  few  people.

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