© 2013 Trail Ridge Consulting, LLC
Agile Leadership

in the Enterprise
Building Adaptive
Organizations
@petebehrens
© 2013 Trail Ridge Consulting, LLC
Agenda
✓ Current State of Enterprise Agility
✓ 3 Thriving Agile Enterprises
✓ Agile Leadership for the Enterprise
© 2013 Trail Ridge Consulting, LLC
A world of change
1930 1950 1970 1990 2010
15 years
75 years
Waterfall
RAD
Agile
Spiral
Assembly Line
Lean
“The Power of Pull” (Basic Books, 2010)

average life expectancy of companies in the 1937 S&P 500 Index
CorporateLifeExpectancy
© 2013 Trail Ridge Consulting, LLC
A world of change
CEOs are attempting to create 

openand collaborative

cultures

to encourage connection and learning

2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries
© 2013 Trail Ridge Consulting, LLC
A world of change
2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries
CEOs have identified 

creativityand agility
as the

top leadership competencies

© 2013 Trail Ridge Consulting, LLC
A world of change
A New Management Paradigm

of imagination, exploration, experiment, discovery & collaboration
Steve
Denning
© 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption - Barriers
© 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption - Issues
© 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption
Agile
Assistance
Agility
Thrashing Agility
Rolling Agility
CULTURE
STRUCTURE
PROCESS
Outside-In
Years
0 1 2 3 4 5
© 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption
Years
Agility
0 1 2 3 4 5
Rolling Agility
Sustaining Agility
Thrashing Agility
CULTURE
STRUCTURE
PROCESS
Inside-Out
© 2013 Trail Ridge Consulting, LLC
Current State of Enterprise Agility
✓ Change is constant & increasing
✓ CEO’s desire Enterprise Agility
✓ Enterprise Agility is hard to

grow & sustain
Be aware of culture
© 2013 Trail Ridge Consulting, LLC
Who am I?
1970 1980 1990 2000 2010
Waterfall
RAD
Agile
RUP
Pete Behrens
Agility
© 2013 Trail Ridge Consulting, LLC
Agenda
✓ Current State of Enterprise Agility
✓ 3 Thriving Agile Enterprises
✓ Agile Leadership for the Enterprise
© 2013 Trail Ridge Consulting, LLC
IT Create Culture
People
Learning
Cultivation
Growth
CREATE
Do things first
Transformational Change
© 2013 Trail Ridge Consulting, LLC
IT Challenges 2007
✓ Long delivery cycles
✓ Inconsistent product quality
✓ Unsustainable development 

& support costs
Unsatisfied Stakeholders
© 2013 Trail Ridge Consulting, LLC
IT Transformation
-75%
-59%
Development Costs
2007 08 09 10 11 2012
41
56
73
81
89
100
Time to Market
2007 08 09 10 11 2012
25
33
50
75
83
100
-74%
Defect Rates
2007 08 09 10 11 2012
26
57
92
102100100
-78%
Support Costs
2007 08 09 10 11 2012
22
41
57
75
88
100
© 2013 Trail Ridge Consulting, LLC
IT Approach
Roles
Teams
Departments
Locations
Integrated
© 2013 Trail Ridge Consulting, LLC
Thriving Enterprise Agility
Years
3 months
1 month
Created an agile
service for clients
IT leaders are now
lead consultants 

Delivery

Cycle
2006 2008 2010 2012
12+ months
Organizational
Agility
IT -> Service
Global
Integration
TeamsRole/Title
Changes
Removed
QA
Support

2.0
Working
Software
© 2013 Trail Ridge Consulting, LLC
Compete Culture
Excellence
Never Satisfied
Competitive
COMPETE
Do things fast
Fast Change
© 2013 Trail Ridge Consulting, LLC
R&D Challenges 2006
✓ (Too?) Fast growth
✓ Complexity overwhelmed the system
✓ Internal competition of people and
resources
Inability to Deliver
© 2013 Trail Ridge Consulting, LLC
Transformation
2008 Scrum Gathering - Steve Greene
2001 2002 2003 2004 2005 2006 2007
Features Delivered

per Team
Days between

Major Releases
© 2013 Trail Ridge Consulting, LLC
Their Own Approach
“All-in” fast
Be the “Best” @ agile
Approach
Focus on
“What”
Focus on
“How”
LOWERED WIP
Redefined 2 key roles
Everything thru a team
© 2013 Trail Ridge Consulting, LLC© 2013 Trail Ridge Consulting, LLC
Established Regular Cadence
Enterprise Release Train Cadence
Enterprise Transparency
Approach
Release

Cycle

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Sprint

Cycle
Review

Cycle
Shared Reviews
Shared Releases
© 2013 Trail Ridge Consulting, LLC
Thriving Enterprise Agility
2006 2008 2010 2012
R&D
Agility
IT
Agility
Tech Ops

Agility
Marketing

Agility
Every release

delivered on time!
3 per year for 6 years

0.5M Subscribers
6% Marketshare
3.5M Subscribers
16% Marketshare
© 2013 Trail Ridge Consulting, LLC
Control Culture
Top Down
Rules & Process
Efficiency Focus
CONTROL
Do things right
Incremental Change
© 2013 Trail Ridge Consulting, LLC
Challenges 2008
✓ Overwhelming process overhead
✓ Long cycles with few change
opportunities
✓ Manufacturing mindset for software
Inability to Deliver
© 2013 Trail Ridge Consulting, LLC
Enterprise Agility Bubbles
EnergyResearchHealthcare
Power

& Water
Software
Sciences
Computational
Sciences
Healthcare
Systems
Healthcare
IT
Specialty
Solutions
Software
Systems
Software
Solutions
JV: Digital
Pathology
© 2013 Trail Ridge Consulting, LLC
Business Unit Focus
Build Time & Cycle
Technical Practices
Test Automation
Short Release cycles
Water(Scrum)Fall
SAFe Release Trains
Integrated Research
Lean Startup -
Fastworks
EnergyResearchHealthcare
© 2013 Trail Ridge Consulting, LLC© 2013 Trail Ridge Consulting, LLC
Agile Transformation
Build Time
11 hours ➜ 20 min
400K hours saved
annually
Release cycles

24 ➜ 6 months
60% projects agile
50% release adaptation
40% defect reduction
18% test productivity
GE Software COE
EnergyResearchHealthcare
Release
Cycle
Build/Test

Cycle
© 2013 Trail Ridge Consulting, LLC
Thriving Enterprise Agility
2008 2009 2010 2011 2012 2013
HC

Specialty
HC IT
Energy
SSG
Software

Sciences
WSJ: GE is a TOP 10

innovation company
GE

Venture
Lean Startup
Research
Software
Source: 2013 Boston Consulting Group Study
© 2013 Trail Ridge Consulting, LLC
3 Thriving Agile Enterprises
Create Culture Compete Culture Control Culture
Transformational
Growth-oriented
Flexible & Fluid
Fast
Market-oriented
Competitive
Incremental
Efficiency-oriented
Hierarchical
Different Cultures = Different Agility
= Different Leadership
© 2013 Trail Ridge Consulting, LLC
Agenda
✓ Current State of Enterprise Agility
✓ 3 Thriving Agile Enterprises
✓ Agile Leadership for the Enterprise
influences informs
Leadership Agility
© 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
influences informs
Leadership Agility
① Align Agility
toward Culture
② Influence Culture
toward Agility
③ Develop Leadership Agility
© 2013 Trail Ridge Consulting, LLC
Aligning Agility and Culture
Competing Values Framework (CVF)
Assessing culture
© 2013 Trail Ridge Consulting, LLC
Align Agility toward Culture
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
CreateCompete
CollaborateControl
Exposing culture
informs agility
© 2013 Trail Ridge Consulting, LLC
Align Agility toward Culture
Role Definitions
Silo Breakdowns
Balanced Matrix
Team Structure
Shared Sprint Cycle
Build & Test Automation
Short Releases
Close Customers
Tight Teams
Own ADM
Best @ Agile
Fast Change
SAFe Release Trains
Water (Scrum) Fall
Incremental Change
Structure
Process
Culture
Create Culture Compete Culture Control Culture
© 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
influences informs
Leadership Agility
① Align Agility
toward Culture
② Influence Culture
toward Agility
③ Develop Leadership Agility
© 2013 Trail Ridge Consulting, LLC
Align Agility and Culture
10
20
30
40
20
30
40
50
10
20
30
40
50
10
30
40
10
20
Desired
Focus on rapid release
and innovation
CreateCompete
CollaborateControl
© 2013 Trail Ridge Consulting, LLC
Influencing Culture toward Agility
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
CreateCompete
CollaborateControl
Focus on speed, competency
and repeatability
© 2013 Trail Ridge Consulting, LLC
Influence Culture toward Agility
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
CreateCompete
CollaborateControl
R&D
IT
Acquisition
Aligning subcultures for
enterprise collaboration
© 2013 Trail Ridge Consulting, LLC
Align Agility and Culture
Competence
Create
Control
Cultural awareness & visioning to
engage people in the change
© 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
influences informs
Leadership Agility
① Align Agility
toward Culture
② Influence Culture
toward Agility
③ Develop Leadership Agility
© 2013 Trail Ridge Consulting, LLC
Developing Leadership Agility
Expert Achiever Catalyst
© 2013 Trail Ridge Consulting, LLC
Developing Leadership Agility
Expert Achiever Catalyst
80% 10%
Leverage People
Solve Problems
Direct Their Plan
Competitive
Competent
Develop People
Create Solutions
Open to Change
Inter-dependent
Self & System Aware
Drives compliance

Limits growth & flexibility
Challenged by complexity
Drives shared ownership

Creates growth & flexibility
Thrives in complexity
© 2013 Trail Ridge Consulting, LLC
Develop Leadership Agility
Years
Agility
0 1 2 3 4 5
Change
is constant
is speeding up
is hard
Agile Leadership
Models self-change
Leads organizational change
Coaches others in change
Sustaining Agility
Agile is a journey,
not a destination
© 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
Understand &
align agility
to/with culture
Change
organizational
structures & flexibility
Focus on learning
& expect ongoing
change
Agile Leadership

Agile leadership in the enterprise

  • 1.
    © 2013 TrailRidge Consulting, LLC Agile Leadership
 in the Enterprise Building Adaptive Organizations @petebehrens
  • 2.
    © 2013 TrailRidge Consulting, LLC Agenda ✓ Current State of Enterprise Agility ✓ 3 Thriving Agile Enterprises ✓ Agile Leadership for the Enterprise
  • 3.
    © 2013 TrailRidge Consulting, LLC A world of change 1930 1950 1970 1990 2010 15 years 75 years Waterfall RAD Agile Spiral Assembly Line Lean “The Power of Pull” (Basic Books, 2010)
 average life expectancy of companies in the 1937 S&P 500 Index CorporateLifeExpectancy
  • 4.
    © 2013 TrailRidge Consulting, LLC A world of change CEOs are attempting to create 
 openand collaborative
 cultures
 to encourage connection and learning
 2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries
  • 5.
    © 2013 TrailRidge Consulting, LLC A world of change 2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries CEOs have identified 
 creativityand agility as the
 top leadership competencies

  • 6.
    © 2013 TrailRidge Consulting, LLC A world of change A New Management Paradigm
 of imagination, exploration, experiment, discovery & collaboration Steve Denning
  • 7.
    © 2013 TrailRidge Consulting, LLC Enterprise Agile Adoption - Barriers
  • 8.
    © 2013 TrailRidge Consulting, LLC Enterprise Agile Adoption - Issues
  • 9.
    © 2013 TrailRidge Consulting, LLC Enterprise Agile Adoption Agile Assistance Agility Thrashing Agility Rolling Agility CULTURE STRUCTURE PROCESS Outside-In Years 0 1 2 3 4 5
  • 10.
    © 2013 TrailRidge Consulting, LLC Enterprise Agile Adoption Years Agility 0 1 2 3 4 5 Rolling Agility Sustaining Agility Thrashing Agility CULTURE STRUCTURE PROCESS Inside-Out
  • 11.
    © 2013 TrailRidge Consulting, LLC Current State of Enterprise Agility ✓ Change is constant & increasing ✓ CEO’s desire Enterprise Agility ✓ Enterprise Agility is hard to
 grow & sustain Be aware of culture
  • 12.
    © 2013 TrailRidge Consulting, LLC Who am I? 1970 1980 1990 2000 2010 Waterfall RAD Agile RUP Pete Behrens Agility
  • 13.
    © 2013 TrailRidge Consulting, LLC Agenda ✓ Current State of Enterprise Agility ✓ 3 Thriving Agile Enterprises ✓ Agile Leadership for the Enterprise
  • 14.
    © 2013 TrailRidge Consulting, LLC IT Create Culture People Learning Cultivation Growth CREATE Do things first Transformational Change
  • 15.
    © 2013 TrailRidge Consulting, LLC IT Challenges 2007 ✓ Long delivery cycles ✓ Inconsistent product quality ✓ Unsustainable development 
 & support costs Unsatisfied Stakeholders
  • 16.
    © 2013 TrailRidge Consulting, LLC IT Transformation -75% -59% Development Costs 2007 08 09 10 11 2012 41 56 73 81 89 100 Time to Market 2007 08 09 10 11 2012 25 33 50 75 83 100 -74% Defect Rates 2007 08 09 10 11 2012 26 57 92 102100100 -78% Support Costs 2007 08 09 10 11 2012 22 41 57 75 88 100
  • 17.
    © 2013 TrailRidge Consulting, LLC IT Approach Roles Teams Departments Locations Integrated
  • 18.
    © 2013 TrailRidge Consulting, LLC Thriving Enterprise Agility Years 3 months 1 month Created an agile service for clients IT leaders are now lead consultants 
 Delivery
 Cycle 2006 2008 2010 2012 12+ months Organizational Agility IT -> Service Global Integration TeamsRole/Title Changes Removed QA Support
 2.0 Working Software
  • 19.
    © 2013 TrailRidge Consulting, LLC Compete Culture Excellence Never Satisfied Competitive COMPETE Do things fast Fast Change
  • 20.
    © 2013 TrailRidge Consulting, LLC R&D Challenges 2006 ✓ (Too?) Fast growth ✓ Complexity overwhelmed the system ✓ Internal competition of people and resources Inability to Deliver
  • 21.
    © 2013 TrailRidge Consulting, LLC Transformation 2008 Scrum Gathering - Steve Greene 2001 2002 2003 2004 2005 2006 2007 Features Delivered
 per Team Days between
 Major Releases
  • 22.
    © 2013 TrailRidge Consulting, LLC Their Own Approach “All-in” fast Be the “Best” @ agile Approach Focus on “What” Focus on “How” LOWERED WIP Redefined 2 key roles Everything thru a team
  • 23.
    © 2013 TrailRidge Consulting, LLC© 2013 Trail Ridge Consulting, LLC Established Regular Cadence Enterprise Release Train Cadence Enterprise Transparency Approach Release
 Cycle
 May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Sprint
 Cycle Review
 Cycle Shared Reviews Shared Releases
  • 24.
    © 2013 TrailRidge Consulting, LLC Thriving Enterprise Agility 2006 2008 2010 2012 R&D Agility IT Agility Tech Ops
 Agility Marketing
 Agility Every release
 delivered on time! 3 per year for 6 years
 0.5M Subscribers 6% Marketshare 3.5M Subscribers 16% Marketshare
  • 25.
    © 2013 TrailRidge Consulting, LLC Control Culture Top Down Rules & Process Efficiency Focus CONTROL Do things right Incremental Change
  • 26.
    © 2013 TrailRidge Consulting, LLC Challenges 2008 ✓ Overwhelming process overhead ✓ Long cycles with few change opportunities ✓ Manufacturing mindset for software Inability to Deliver
  • 27.
    © 2013 TrailRidge Consulting, LLC Enterprise Agility Bubbles EnergyResearchHealthcare Power
 & Water Software Sciences Computational Sciences Healthcare Systems Healthcare IT Specialty Solutions Software Systems Software Solutions JV: Digital Pathology
  • 28.
    © 2013 TrailRidge Consulting, LLC Business Unit Focus Build Time & Cycle Technical Practices Test Automation Short Release cycles Water(Scrum)Fall SAFe Release Trains Integrated Research Lean Startup - Fastworks EnergyResearchHealthcare
  • 29.
    © 2013 TrailRidge Consulting, LLC© 2013 Trail Ridge Consulting, LLC Agile Transformation Build Time 11 hours ➜ 20 min 400K hours saved annually Release cycles
 24 ➜ 6 months 60% projects agile 50% release adaptation 40% defect reduction 18% test productivity GE Software COE EnergyResearchHealthcare Release Cycle Build/Test
 Cycle
  • 30.
    © 2013 TrailRidge Consulting, LLC Thriving Enterprise Agility 2008 2009 2010 2011 2012 2013 HC
 Specialty HC IT Energy SSG Software
 Sciences WSJ: GE is a TOP 10
 innovation company GE
 Venture Lean Startup Research Software Source: 2013 Boston Consulting Group Study
  • 31.
    © 2013 TrailRidge Consulting, LLC 3 Thriving Agile Enterprises Create Culture Compete Culture Control Culture Transformational Growth-oriented Flexible & Fluid Fast Market-oriented Competitive Incremental Efficiency-oriented Hierarchical Different Cultures = Different Agility = Different Leadership
  • 32.
    © 2013 TrailRidge Consulting, LLC Agenda ✓ Current State of Enterprise Agility ✓ 3 Thriving Agile Enterprises ✓ Agile Leadership for the Enterprise influences informs Leadership Agility
  • 33.
    © 2013 TrailRidge Consulting, LLC Agile Leadership for the Enterprise influences informs Leadership Agility ① Align Agility toward Culture ② Influence Culture toward Agility ③ Develop Leadership Agility
  • 34.
    © 2013 TrailRidge Consulting, LLC Aligning Agility and Culture Competing Values Framework (CVF) Assessing culture
  • 35.
    © 2013 TrailRidge Consulting, LLC Align Agility toward Culture 10 20 30 40 50 20 30 40 50 10 20 30 40 50 10 30 40 50 10 20 CreateCompete CollaborateControl Exposing culture informs agility
  • 36.
    © 2013 TrailRidge Consulting, LLC Align Agility toward Culture Role Definitions Silo Breakdowns Balanced Matrix Team Structure Shared Sprint Cycle Build & Test Automation Short Releases Close Customers Tight Teams Own ADM Best @ Agile Fast Change SAFe Release Trains Water (Scrum) Fall Incremental Change Structure Process Culture Create Culture Compete Culture Control Culture
  • 37.
    © 2013 TrailRidge Consulting, LLC Agile Leadership for the Enterprise influences informs Leadership Agility ① Align Agility toward Culture ② Influence Culture toward Agility ③ Develop Leadership Agility
  • 38.
    © 2013 TrailRidge Consulting, LLC Align Agility and Culture 10 20 30 40 20 30 40 50 10 20 30 40 50 10 30 40 10 20 Desired Focus on rapid release and innovation CreateCompete CollaborateControl
  • 39.
    © 2013 TrailRidge Consulting, LLC Influencing Culture toward Agility 10 20 30 40 50 20 30 40 50 10 20 30 40 50 10 30 40 50 10 20 CreateCompete CollaborateControl Focus on speed, competency and repeatability
  • 40.
    © 2013 TrailRidge Consulting, LLC Influence Culture toward Agility 10 20 30 40 50 20 30 40 50 10 20 30 40 50 10 30 40 50 10 20 CreateCompete CollaborateControl R&D IT Acquisition Aligning subcultures for enterprise collaboration
  • 41.
    © 2013 TrailRidge Consulting, LLC Align Agility and Culture Competence Create Control Cultural awareness & visioning to engage people in the change
  • 42.
    © 2013 TrailRidge Consulting, LLC Agile Leadership for the Enterprise influences informs Leadership Agility ① Align Agility toward Culture ② Influence Culture toward Agility ③ Develop Leadership Agility
  • 43.
    © 2013 TrailRidge Consulting, LLC Developing Leadership Agility Expert Achiever Catalyst
  • 44.
    © 2013 TrailRidge Consulting, LLC Developing Leadership Agility Expert Achiever Catalyst 80% 10% Leverage People Solve Problems Direct Their Plan Competitive Competent Develop People Create Solutions Open to Change Inter-dependent Self & System Aware Drives compliance
 Limits growth & flexibility Challenged by complexity Drives shared ownership
 Creates growth & flexibility Thrives in complexity
  • 45.
    © 2013 TrailRidge Consulting, LLC Develop Leadership Agility Years Agility 0 1 2 3 4 5 Change is constant is speeding up is hard Agile Leadership Models self-change Leads organizational change Coaches others in change Sustaining Agility Agile is a journey, not a destination
  • 46.
    © 2013 TrailRidge Consulting, LLC Agile Leadership for the Enterprise Understand & align agility to/with culture Change organizational structures & flexibility Focus on learning & expect ongoing change Agile Leadership