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The Seven Habits of
Highly Effective Organisations
Erwin van der Koogh
Principal Consultant
evanderkoogh
What has Agile
achieved?
No seriously..
Maybe we fixed IT departments…
Image © Trammell Hudson https://www.flickr.com/photos/osr/
But have we fixed organisations?
Image © Nicola https://www.flickr.com/photos/15216811@N06/
So have we fixed organisations?
Image © Nicola https://www.flickr.com/photos/15216811@N06/
Not always..
So what is a highly
effective
organisation?
One that is prepared for the
realities of the 21st century
Image © John Shepherd https://www.flickr.com/photos/johnrobertshepherd
Massive
Uncertainty,
Unpredictability &
Complexity
Image © Will Ockenden
Complicated
Complex
“An environment where cause and effect
are only obvious in hindsight, with
unpredictable, emergent outcomes.”
Complex Environment:
From Scaling Efficiency
Image © https://www.flickr.com/photos/guysie/
To Scalable Learning
Our current organisations
Anti-fragile
“The only competitive
advantage left in the 21st
century is adaptability.”
- William Gibson
The future is already here.
It is just not very evenly
distributed
7 Habits
People
1Trust People
Do you get to decide…
Where you work?
Do you get to decide…
When you work?
Do you get to decide…
How you work?
Do you get to decide…
With whom you work?
Do you get to decide…
On what you work?
Do you…
Have a Company Credit Card?
?Why not?!
Valve Software
One of the most profitable businesses/employee
Morning Star
Recommended Reading
1 Trust People
2Tolerate Embrace Failure
I have not failed.
I have just found 10,000
ways that won’t work
Thomas Edison
Image © https://www.flickr.com/photos/besz/
I've missed more than 9000 shots
in my career. I've lost almost 300
games. 26 times, I've been trusted
to take the game winning shot
and missed. I've failed over and
over and over again in my life. And
that is why I succeed.
Michael Jordan
By Diegoestefano97 (Own work) [CC BY-SA 3.0]
Anyone who has never made
a mistake has never tried
something new
Albert Einstein
Failure Cake @ Spotify
Recommended Reading
1 Trust People
2 Embrace Failure
The Organisation
3Be Brutally Honest
with yourself
First Digital Camera
Invented by Eastman Kodak
In 1975
VS.
VS.
Mail DVDs Streaming
VS.
Mail DVDs Streaming
Consumers value the simplicity
Netflix has always offered and we
respect that. There is a difference
between moving quickly — which
Netflix has done very well for
years — and moving too fast,
which is what we did in this case.
Reed Hastings
&
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4Allow Autonomy
At All Levels
The tactical result of an
engagement forms the base for
new strategic decisions because
victory or defeat in a battle changes
the situation to such a degree
that no human acumen is able to
see beyond the first battle.
Helmuth Moltke the Elder
“A military doctrine where commanders
give subordinate leaders a clearly
defined goal instead of a detailed order.”
Auftragstaktik (Mission Command):
Alignment)&)Autonomy)
Alignment
False dichotomy!
Do what
I say!
Autonomy
Do
whatever
Source: Stephan Bungay. Image © Hendrik Kniberg
X
Alignment)enables)Autonomy)
High
Alignment
High Autonomy
Build a
bridge!
Micromanaging
organization
Indifferent
culture
Entrepreneurial
organization
Chaotic
culture
Authoritative
organization
Conformist
culture
Innovative
organization
Collaborative
culture
We need to
cross the river
Figure out how!
We need to
cross the river
Low
Alignment
Low Autonomy
Hope someone is
working on the
river problem…
Source: Stephan Bungay. Image © Hendrik Kniberg
Svenska Handelsbanken is
one of the best
banks in the world
Svenska Handelsbanken is
one of the most efficient
banks in the world
Svenska Handelsbanken is
one of the most profitable
banks in the world
Svenska Handelsbanken has
the most loyal customers of
the banks in the world
But..
Svenska Handelsbanken has no
budgets
Svenska Handelsbanken has no
sales targets
Svenska Handelsbanken has no
bonuses
Svenska Handelsbanken has no
matrix structure
Svenska Handelsbanken has
only 3 levels of management
Jan Wallander - Former CEO of Svenska Handelsbanken
“The branch is the bank”
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5Think Big, Stay Small
In 1989 Kodak had a market cap of $30B
with 150,000 employees
When Instagram was sold
for $1B it had 11 employees
When WhatsApp was sold
for $19B it had 55 employees
W.L. Gore & Associates
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5 Think Big, Stay small
What you do
6Simplify All the Things
Simple Rules
Complex Behaviour
Expense policy at Statoil
Consumers Professionals
Desktop iMac Power Mac
Laptop iBook PowerBook
8000+ Nurses
800+ Teams
45 Admin
1 Manager (CEO)
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5 Think Big, Stay small
6 Simplify all the Things
7Relentless Customer Focus
Audience Participation
Q: What are typical customers of Facebook?
A: Advertisers
Q: What does that make us?
A: The Product
Recommended Reading
1 Trust People
2 Embrace Failure
3 Be Brutally Honest
4 Create Autonomy at all Levels
5 Think Big, Stay small
6 Simplify all the Things
7 Relentless Customer Focus
All Together Now
The 21st Century Organisation is..
A Decentralised
Network of
Autonomous,
Cross-Functional,
Self-organising Teams
Focused on the Customer
Wait a minute…!
Cross-Functional…
Self-Organising…
Teams…
Focus on Customer…?
We are all experts
Image © https://www.flickr.com/photos/nanoprobe67/
You have a choice
Image © https://www.flickr.com/photos/nanoprobe67/
Scale Agile Process in IT
Image © https://www.flickr.com/photos/guysie/
Or join us & bring management
thinking into the 21st
Century
Books: http://21stcenturymba.com/7habits
Slides: http://bit.ly/7OrgHabits
Innovation,
Agile Transformation,
Project Delivery?
We’re hiring!
Visit: elabor8.com.au/careers/
Looking for a career in

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