م.47-#تواصل_تطوير-م.محمد العربى-إستخدام مفاهيم الرشاقة للتحول الإستراتيجي للمنظمات فى العصر الرقمى

USING AGILE CONCEPTS FOR ORGANIZATIONS'
STRATEGIC TRANSFORMATION IN THE DIGITAL AGE
Delivered by Eng. Mohammed Al-Arabi

Delivered by Eng. Mohammed Al-ArabiAugust 2020
Sponsored by
2

Lecturer: Mohammed Al-Arabi
Management Consultant and Instructor
 Computer and Systems Engineer with 30+ years experience
 Candidate MSc holder during 2021 in Organizational Psychology field
 Professional Field:
 Co-founder and Managing Partner at Nexus – Project Management
 Main Focus:
 Consultation and Training services in management fields
 Short Bio:
 Developed Methodologies and Frameworks in different management fields
 An author for Arabic books in Marketing and Project Management
 A speaker at different conferences, forums, seminars, and webinars
 Consultation services: Maturity assessment, establishing offices, developing management systems
 Certifications
 BSP, CSSBB, MPM, PMP, PMI-PBA, PMI-RMP, PMI-SP, MCP, MCTS, MS Project, IT Project+, ITIL, PRINCE2, MSP,
MOP, P3O, PMOC, PMD Pro, SFC, ICC, CQIA, Marketing Diplomas
 Some of the training offerings
 Strategic Planning, Balanced Scorecard, Governance, Portfolio Management, Initiative Management, PMOC,
PMP, PRINCE2, MoV, Managing Multiple Projects, Six Sigma, TQM, Setting & Measuring KPIs, Service
Management, Business Process Management, ITIL
3

Agenda
 Part I: Foundation
 Part II: Business (Competitive) Level Strategy
 Part III: Strategy Development
 Part IV: Strategy Execution
 Part V: Strategy Evaluation
 Part VI: Question & Answer
4

What is an organization?
Why it is existed?
6
 An organization is a social arrangement
 which pursues collective goals,
 which controls its own performance, and
 which has a boundary separating it from its environment.
 Why it is existed?
 Seek for Profit
 Serve society
 Educate people
 Search and observe
 Judge performance and results
 Help a specific community and specialists…

Logical Organization
VISION
MISSION
STRATEGY
OBJECTIVES
Vision: what does Org. want to be in the future
Mission: what the Org. does, how it is done, and
for whom
Strategy: a high-level set of directions that
articulate how the Org. will achieve its mission
Objectives: concrete statements describing what
the Org. is trying to achieve in the short term.
7

Marketing & Sales Service/Product Development Financial & Admin.
CEO
BOARD OF DIRECTORS
Typical Organizational Structure
8
SHAREHOLDERS

Project A1 Project A2 Operation A1 Operation A2 Project B1 Operation B1 Operation B2 Project B2 Project C1 Project C2 Project C3 Operation C1
PORTFOLIO 1 PORTFOLIO 2 PORTFOLIO 3
CEO
HIGHEST LEVEL PORTFOLIO
BOARD OF DIRECTORS
Typical Organizational and Portfolio Structure
9

A Portfolio and its Programs, Projects, and
Operations (Business As Usual – BAU)
10
Sample Portfolio
Program B1
Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9
Business As
Usual (BAU)
Shared Resources & Stakeholders
Program A Program B Portfolio A
Program C
Marketing
&
Sales

Portfolio Management
Organizational Strategy Objectives
Mission
Vision
Management
Of Authorized
Programs and Projects
Management
of On-Going Operations
Organizational Resources
Strategy Execution
Strategy Development and Strategy Execution
11

Change – from Current State to Future State
12
 Where are we now?
o (Assessment)
 Where do we need to be?
o (Gap / Future Desired State)
 How will we close the gap?
o (Develop Strategies and Strategic Plan)
 What will we do to close the gap?
o (Execute Strategies)
 How will we monitor our progress?
o (Balanced Scorecard)
Where are we now?
Where do we need to be?
How will we close
the gap?
What will we do to
close the gap?
Current
State
Gap
Analysis
Desired
State
How will we monitor our progress?

Change Elements
1313
Element Rationale
Output
What we need to
create to enable the
change?
Capability
What will we need to
have in place to
enable the operating
state?
Outcome
What is the desired
operation state of the
organization using the
new things?
Benefit Why is this justified?

Benefits Modeling and Maps
Project
output
New HR IT
system
Capability
Retrained
managers
New
Recruitment
process
Outcome
Delays for
applicants
reduced
Applications
processed
faster
Benefit
Fewer
vacancies
Increased HR
Staff
efficiency
Higher staff
morale
Better staff
retention
Lower
recruitment
costs
Fewer HR
staff
Improved
continuity
Increased
productivity
Corporate
objective
Reduced
Personnel
costs
14
Change Elements

Service Delivery and Operate
15
(BAU)

Balanced Scorecard
How will we monitor our progress?
16
Original Balanced Scorecard Revised Balanced Scorecard
Strategic Result
Financial Measure
Customer Value Measure
Process Measure
Learning & Growth
Measure
What
How
How
How
Strategic Result
Benefit Measure
Service Value Measure
Capability Measure
Process, Organization, Technology,
and Information (POTI) Measure
What
How
How
How
ResultsEnablers
Interpretation
CauseandEffect
@MohammedAlarabi

Organizational Enablers
Organizational enablers are
structural, cultural, technologies
and human- recourse best
practices that underpin the
implementation of best practices
in projects, programs and
portfolios supporting strategic
goals.
17

Balanced Scorecard
(Enablers → Results) format
18
Original Balanced Scorecard Revised Balanced Scorecard
Strategic Result
Financial Measure
Customer Value Measure
Process Measure
Learning & Growth
Measure
What
How
How
How
Strategic Result
Benefit Measure
Capability Measure
What
How
How
How
ResultsEnablers
Interpretation
CauseandEffect

XXX Initiative
Transformation (from current state to future state)
across Corporate Time Horizons
19
Current state
Future state

Business (Competitive) Level Strategy20

Different Levels of Strategies
21
Corporate
Strategies
Business
(Competitive)
Strategies
Functional
Strategies
Operational
Strategies

Types of Corporate Level Strategy
22
• expansion into new products
and marketsGrowth
• maintenance of the status of
the organizationStability
• redirection of the firm into
new marketsRenewal

Business (Competitive) Level Strategy
23
VRIO or VRIN
Supplier
Chain
Firm Chain
Buyer Chain
Supplier
Chain
Buyer Chain
Buyer Chain

Balanced Scorecard Strategy Map
24
Resources
Capabilities
Core Competencies
Competitive
Advantage
Strategic
Competitiveness
Causal
link

Feature vs. Benefit
Feature Benefit
A feature is simply an attribute or fact
about your product, service, or
company. The customer may have an
entirely different interpretation of
what the benefit of a particular
feature is.
A benefit is how that feature helps your
customer. Benefits are usually
expressed in terms of loss or gain, and
are best when they’re quantifiable.
Benefits are typically stated after a
feature and answer the question on
your customer’s mind: What’s in it for
me – or WIFM?
Example: The car is fuel efficient and
gets 50 mpg on the highway and 40
mpg in the city.
Example: The car is fuel efficient
(WIFM?), which means that you’ll save
up to $20 per visit to the gas station.
25
Benefit
Cause
andEffect
Feature
Balanced Scorecard

System Development Life Cycle (SDLC)
 Like anything that is manufactured on an assembly line, an SDLC aims to
produce high-quality systems that exceed customer expectations, based
on product features that meet customer requirements.
 SDLC is composed of a number of clearly defined and distinct work
phases which are used by systems engineers and systems developers to
deliver, for example; information systems.
26

Delivery Methods /1
27
 Traditional (Predictive) vs. Agile (Adaptive)
Definable
Work
Planning-based
Delivery
Discoverable
Work
Value-base
Delivery

Agile (Adaptive)
Delivery Methods /3
Agile (both Iterative and Incremental)  These iterative and incremental
approaches reduce waste and
rework because the teams gain
feedback.
 These approaches use:
 Very short feedback loops,
 Frequent adaptation of process,
 Reprioritization,
 Regularly updated plans, and
 Frequent delivery.
29

Delivery Methods /4
30
 Waterfall Serial Development (Predictive)
$$$
Analysis
Design
Development
Deployment
Analysis
Design
Development
Deployment
Analysis
Design
Development
Deployment
$ $$
$Deployment
Development
Design
Analysis
Invest up front, only realize value at end, assuming value proposition hasn’t changed.
 Agile Concurrent Development (Adaptive)
 Fund incrementally – opt to extend,
redirect or cancel at a very granular level
 Deliver and realize value steadily
 Validate designs with users and customers
 Continuously adapt to risk and change
 Integrate early and often

Delivery Methods /5
31
Command & Control Self-Organizing
Analysis Design Development Deployment
AnalysisDesign
Development Deployment

Agile
Values, Principles, and Practices
32
This model is inspired by Ahmed Sidky
Values
Define the core set
of most important
beliefs of what is
truly important
Principles
Define a set of ways
to meet the values
Practices
Define in detail how
this is implemented in
practice

Agile is a Blanket Term for
Many Approaches
33

Mixing Agile Approaches /2
35
 Agile teams rarely limit their practices to one agile approach.
 Each project context has its own peculiarities.
 Often, teams practice their own special blend of agile.
 The most common blends in widespread use involves a coordinated use
of
 the Scrum framework,
 the Kanban Method, and
 elements of the eXtreme Programming (XP) method.

Kanban
 The word kanban is literally translated as “visual sign” or “card.”
36

Scrumban
 Scrumban is an agile approach originally designed as a way to
transition from Scrum to Kanban.
 As additional agile frameworks and methodologies emerged, it became
an evolving hybrid framework in and of itself where teams use Scrum as
a framework and Kanban for process improvement.
 In Scrumban, the work is organized into small “sprints” and leverages the
use of kanban boards to visualize and monitor the work.
38

Extreme Programming (XP)
 eXtreme Programming (XP) is a
software development method
based on frequent cycles.
39

Scrum and eXtreme Programming (XP)
 While Scrum at the project
management level focuses on
prioritizing work and getting
feedback, XP focuses on
software development good
practices.
40

Product Vision, Product Roadmap, Release Planning,
and Iteration Planning
42

Burn-down Chart
43
No. of
Tasks

Typical Agile Behaviours, Concepts and Techniques
44

45
Digital Transformation Journey Framework
Mission & Vision Business Design Value Design Business Architecture Evaluation
Digital Transformation
Change
TOM
COM
Strategy Development Strategy Execution Strategy Evaluation

47
Change
TOM
COM

Mission & Vision48
Mission & Vision

The Golden Circle
By Simon Sinek
 Organizations function on three levels:
 What we do,
 How we do it, and
 Why we do it.
49
Product
Every organization
knows WHAT they do. These are
products they sell or the services
they offer.
Some organizations
know HOW they do it. This can
set them apart from competition.
Very few organizations
know WHY they do what they do.
Output
Process
Purpose

Mission Development Triangle
 Societal need
 Stockholder/stakeholder need
 Customers
 Areas
 Products
 Services
 Values, beliefs, philosophies
 Major activities, techniques, technologies
 Core competencies and capabilities
50

The Lean Pyramid
By Eric Ries
51
 Vision – where you thrive to reach
 Strategy – Business model, Roadmap, Point of view, .. etc.
 Product – End result of the strategy
PRODUCT
STRATEGY
VISIONDestination – Point B
Roadmap - repeatable
Roadmap – means of transport
A
B

Vision Statement
A vision statement describes how the future
will look if the organization achieves its mission.
52

WHY
WHY
Mission Statement and Vision Statement
A mission statement gives the overall purpose of an organization,
while a vision statement describes a picture of the "preferred future."
53
WHY?
PRODUCT
STRATEGY
VISION
WHAT?
HOW?
A
B

54
Change
TOM
COM

Business Design55
Business Design

Business Model – Lean Canvas /1
56

57

58

Business Model Engine
59
VISION
STRATEGY
VALUE PROPOSITION
PRODUCT
Value
Driver
Value
Planning
Value
Creation
Value
Delivery PRODUCT
STRATEGY
VISION
A
B
MARKET

60
Change
TOM
COM

Feature vs. Benefit vs. Value
Feature Benefit Value
A feature is simply an attribute or
fact about your product, service, or
company. The customer may have an
entirely different interpretation of
what the benefit of a particular
feature is.
A benefit is how that feature helps
your customer. Benefits are usually
expressed in terms of loss or gain,
and are best when they’re
quantifiable. Benefits are typically
stated after a feature and answer
the question on your customer’s mind:
What’s in it for me – or WIFM?
Value extends beyond what your
product or service can do for your
customer and aligns your benefits
with the customer’s larger goals and
objectives.
Example: The car is fuel efficient and
gets 50 mpg on the highway and 40
mpg in the city.
Example: The car is fuel efficient
(WIFM?), which means that you’ll
save up to $20 per visit to the gas
station.
Example: The fuel-efficient car allows
you to reduce overall travel expenses
by 20 percent.
62

Business Value
 Business value as the net quantifiable benefit derived from a business
endeavor.
 Business value refers to the benefit that the results of a specific project
provide to its stakeholders.
Satisfaction of needs (benefits)
(monetary and non-monetary)
VALUE
Use of resources (expenditure)
(money, people, time, energy and materials)
63

Value Proposition Design
64
 To get a successful business you have to ensure the value of your
product or service by intentionally Visualize, Design and Test how you
create value for your customers.

Business Model – Lean Canvas
Helps you create value for your business
65

Value Proposition Canvas
Helps you create value for your customers
66
Channels
Path to the customer

Customer profileValue map
Jobs
Gains
Pains
Offering
Gain creators
Pain relievers
Fit
67

Three Kinds of Fit
68
1 Problem-Solution Fit
2 Product-Market Fit
3Business
ModelFit
PRODUCT MARKET

Product Development Extremes
71

Minimum Viable Product (MVP) /1
“In product development, the MVP is a strategy used for fast and
quantitative market testing of a product or product feature”
72

73

74

Development Roadmaps
Traditional Roadmap MVP Roadmap
75

Next Developments by Learning
“A minimum viable product is the version of a new product which allows a
team to collect the maximum amount of validated learning about customers
with the least effort.” Eric Ries, “The Lean Startup”
76

78
Change
TOM
COM

Business Architecture79
Business Architecture
COM

80
Change
TOM
COM

Enhanced Business Model Lean Canvas
Back End
(operations)
Front End
(customers/channels)
Middle
(value)
81

Operating Model Canvas
82
 The objective of the Operating Model Canvas is to capture thoughts about how to
design operations and organization that will deliver a value proposition to a target
customer or beneficiary.

Example - Operating Model Canvas
 Start by laying out the value chain(s) needed to deliver the value
proposition(s)
83

Value Chain Levels
84
Product
Development Manufacturing Marketing Sales Customer
Service
Finance &
Accounting
Things we do, measure, and manage

Capability Mapping
85
Value
Chain
Cause
andEffect
Capability
Balanced Scorecard

Key
Functional
Activities
Service Lifecycle
Service Transition Marketing the Service Selling the Service Delivering the Service Promoting the Service
Supporting Functions – Backend
Coordination – IT - LMS-N - Marketing communication – Customer Service
BAU (Regular Operation – Routine)
Tactics – Supervision – O & M - Sales
– Accounting – Website -
Administration
Information Systems [Website (Drupal) - MS Office - Accounting System – Learning Management System (LMS-N) – CRM (Current
Salesforce, Lightning) – Help Desk (Zendesk) – Email Marketing & Automation (Drip) – Task Management & Payroll (Zoho) -
Project Management and Kanban (Trello / JIRA) - Business Dashboard (Power BI)]
Build capabilities for
Changing the Business
(Project & Program Management)
Service Lifecycle - Service Design
Key Resources (Training Material – Instructors – Staff – Website - Tools)
On demand
(Recruitment - Service
Quality – Business
Analysis)
Functional Strategies –
Functional Planning –
Operational Planning
Key Partners (Partners - Accreditation bodies)
Corporate Activities
Mission Model Business Model Value Model Transformation ModelOperating Model
Operating Model
Customer Service - Frontend (Queries – Requirements – Support – Complaint)
@MohammedAlarabi

Digital Operating Model
87
 Four Digital Operating Models

Customer Journey /2
Expectations Experiences Satis.
90

Customer Experience and Touch Points
92

Change – Target Operating Model (TOM)93
Change
TOM

94
Change
TOM
COM

Target Operating Model (TOM) - Definition
95
The Target Operating Model (TOM) is a viewpoint of HOW a business should run at
future state point in time based on a new strategy that has been agreed

The McKinsey 7S Framework /1
96
 It’s a management Framework that describes the following 7 factors to
organize a company in a holistic and effective way.
 Strategy
 Structure
 Systems
 Shared values
 Style
 Staff
 Skills
STRUCTURE
SHARED
VALUES
SYSTEMS
STYLE
STAFF
SKILLS
STRATEGY

97
The 7S
Factors
Current Operating Model (COM)
Answers for your current situation
Target Operating Model (TOM)
Answers for your proposed situation
Strategy
Structure
Systems
Shared
Values
Style
Staff
Skills

98
 Double check that the 7S in your target situation are aligned
Structure Strategy System S. Values Staff Style Skills
Structure ✓ ✓ ✓ ✓ ✓ ✓
Strategy ✓ × ✓ ✓ ✓ ×
System ✓ ✓ O O O ×
S. Values ✓ ✓ ✓ ✓ ✓ ×
Staff ✓ ✓ ✓ ✓ ✓ ×
Style ✓ ✓ ✓ ✓ ✓ ×
Skills ✓ ✓ ✓ ✓ ✓ ✓

99
The 7S
Factors
Summarize the main gaps between
the current and target situation
Create a plan of action to fill the gaps
Strategy Action #1:
Action #n:
Structure Action #1:
Action #n:
Systems Action #1:
Action #n:
S. Values Action #1:
Action #n:
Style Action #1:
Action #n:
Staff Action #1:
Action #n:
Skills Action #1:
Action #n:

Blueprint Design
100
Current state and gap analysis
 Showing the initial analysis of the gap

Designing The Blueprint Delivery
101
 How the final blue
print is delivered via
step changes

Using Agile Concepts for TOM Delivery
102
1 Sprint
3 Weeks
1 Quarter
3 Months
1 Year
1 Year
3 Year
3 Year

Digital Transformation103

104
Change
TOM
COM

Digitization vs. Digitalization
“Digitization is the connection of people,
process[s], data and things to provide intelligence
and actionable insights enabling business
outcomes”
Cisco
“Digitalization means the use of digital
technologies and of data (digitized and natively
digital) in order to create revenue, improve
business, replace/transform business processes
(not simply digitizing them) and create an
environment for digital business, whereby digital
information is at the core.”
I-SCOOP
107

Change vs. Transformation
Change fixes the past
 CHANGE requires becoming familiar with the
current situation, and working to make things
better, faster, cheaper, or some other “er”
word.
 The past is the fundamental reference point
and actions are intended to alter what
already happened.
 When you choose CHANGE, your future is
really a reconditioned or improved version of
the past.
Transformation creates the future
 TRANSFORMATION doesn’t describe the
future by referencing the past (better, faster,
or cheaper); it births a future that is entirely
new.
 When you choose the path of
TRANSFORMATION, it becomes easier to
leave the past behind after thoroughly
considering the As Is.

108

Digitalization
109
Digitalization
Customer Relation
Organization
Product &
Business Model
Market &
Competition

Innovation
110
Innovation
Customer Relation
Organization
Product &
Business Model
Market &
Competition

111
Digital
Transformation
Customer Relation
Organization
Product &
Business Model
Market &
Competition

Sustaining vs. Disruptive Innovation
 Sustaining innovation, seeks to improve
existing products. Meaning, it does not create
new markets or values, but rather merely
develop existing ones.
 Disruptive innovation means to reinvent a
technology, business model, or simply invent it
all together.
 Disruptive innovation generates new markets
and values, in order to disrupt existing ones.
No Cars No Real EstateNo Inventory
112

Digital Industrial Transformation Framework
113

Bimodal IT Definition
Bimodal IT refers to having two modes of IT, each designed to develop and
deliver information and technology-intensive services in its own way.
 Mode 1 is traditional, emphasizing safety and accuracy.
 Mode 2 is non-sequential, emphasizing agility and speed.
114

The Difference between
Mode 1 and Mode 2
115

Mode Layers
(Run, Differentiate, and Innovate)
116

CxO Roles across the Mode Layers
CIO
Chief Information Officer
CMO
Chief Marketing Officer
CDO
Chief Digital Officer
+Governance→-
-Change→+
117

CxO Collaboration in the Operating Model
118
@MohammedAlarabi
CIO
CMO
CDO

CxO Collaboration in the Strategy Map
119
 Revised Balanced Scorecard
Strategic Result
Benefit Measure
Capability Measure
What
How
How
How
CIO
CMO
CDO

121
Change
TOM
COM

Strategy Evaluation122
Evaluation

Annual Strategy Review
 Assess the status of how well your strategy plan has been achieved
 Assess the implementation of your system of managing
TRANSFORMATION.
123

Annual Strategy Review Tasks
 Reacting to TRANSFORMATION in the environment and their
implications for updating your core strategies.
 Update annual action priorities for the next 12 months for each core
strategy and hold the annual large-group review meeting
 Update your leadership steering committee’s plan for success and its
system for managing TRANSFORMATION.
124

Strategy Evaluation /1
125
 Strategy Evaluation throws light on the efficiency and effectiveness of
the comprehensive plans in achieving the desired results.
 The managers can also assess the appropriateness of the current
strategy in today’s dynamic world.
 Strategic Evaluation is the final phase of strategic management.

Strategy Evaluation /2
126
 The significance of strategy evaluation lies in its capacity to
coordinate the task performed by managers, groups, departments
etc. through control of performance.
 Strategic Evaluation is significant because of various factors such
as: developing inputs for new strategic planning, the urge for
feedback, appraisal and reward, development of the strategic
management process, judging the validity of strategic choice etc.

Steps of Strategy Evaluation Process
127
1. Fixing benchmark of performance
2. Measurement of performance
3. Analyzing Variance
4. Taking Corrective Action

Strategy Development, Execution, and Evaluation
128

Using Agile Concepts
for Organizations‘ Strategic Transformation in the Digital Age
129

م.47-#تواصل_تطوير-م.محمد العربى-إستخدام مفاهيم الرشاقة للتحول الإستراتيجي للمنظمات فى العصر الرقمى

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