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© improuv GmbH Agile Leadership | http://improuv.com
Agile Transformation
Concepts and Experiences in Large Enterprises
© improuv GmbH Agile Leadership | http://improuv.com
About us
Christoph Mathis
Founder of improuv
Agile Experience since 2001
• Agile Coach and Trainer
• Agile Leader
• Organisation Transformation
Background
• Computer Science,
PhD in Artificial Intelligence
improuv GmbH
München
Since 2011
• Agile Transformation
• Agile Leadership
• Scaling Agile
• Training and Consulting for
Scrum, Kanban, SAFe, LeSS
© improuv GmbH Agile Leadership | http://improuv.com
Why is it so difficult
to become agile
© improuv GmbH Agile Leadership | http://improuv.com Source: Holger Neumann, infineon
Finally we‘re Agile !!!
© improuv GmbH Agile Leadership | http://improuv.com
We need to scale, but:
Scaling comes in many flavors
▪ Team -> multiple teams
▪ Covering the complete value stream
▪ Culture of transparency an dtrust
▪ Depth: developing appropriate principles and practices on
all levels of management
© improuv GmbH Agile Leadership | http://improuv.com
We are missing something
fundamental
© improuv GmbH Agile Leadership | http://improuv.com
Becoming Agile is a transformation
What will change
Collaboration People cooperate differently and stronger - internally and with
customers
Mindset People are motivated and compensated differently
Pull vs. Push, Self-organization
Roles New (& different) organizational roles
Values New values, ethics etc.
Behaviour New practices
Fail early, often & forward
2
© improuv GmbH Agile Leadership | http://improuv.com
Agility provides new Capabilities
© improuv GmbH Agile Leadership | http://improuv.com
Key Capabilities
of an
Organization Amplify
Learning
Discover,
Disrupt,
Deliver
Operational
Excellence
© improuv GmbH Agile Leadership | http://improuv.com
Elements of Transformation
© improuv GmbH Agile Leadership | http://improuv.com
© improuv GmbH Agile Leadership | http://improuv.com
Orientation: How to Start
Basic Questions
▪ Are we ready
▪ Skills we need
▪ Develop a Plan
First Steps
▪ Identify Sponsors
▪ Find the right scope
▪ Understand the
Environment
▪ Understand the Culture
▪ Understand the Mindstate
▪ Bootstrap the Corporate
Learning Cycle
Readiness Check
Train everybody
- the DACH30
curriculum
Prepare
for Action
© improuv GmbH Agile Leadership | http://improuv.com
Knowledge
Agile Evolution Readiness Check
Culture
CultureofLearning
CustomerFocus
Trust
Delivery
Quality
IncrementalDelivery
Portfolio&Strategy
Structures
Agile-enabling
HRpractices
(more)
(more)
(more)
(more)
© improuv GmbH Agile Leadership | http://improuv.com
Agile Consortium of DACH30plus
Agile Experts of large enterprises, responsible for the agile transition
The network “Transition to Agile” was founded 2016 in order to facilitate the exchange of
corporate agile transition experts from many of the top 50 companies in the DACH region
Large enterprises face (common) specific challenges to integrate agile principles into their
processes, governance systems and company culture.
© improuv GmbH Agile Leadership | http://improuv.com
© improuv GmbH Agile Leadership | http://improuv.com
© improuv GmbH Agile Leadership | http://improuv.com
© improuv GmbH Agile Leadership | http://improuv.com
© improuv GmbH Agile Leadership | http://improuv.com
Management Levels
© improuv GmbH Agile Leadership | http://improuv.com
Three Major Approaches
in Large Enterprises
Setup a complete,
new „Agile“ Organization
in parallel to an existing
„Traditionall“ Organization
Introduce Agile Teams in
the existing organization
and grow from there
Switch to a complete agile
organization
GreenfieldDisruptiveEvolutionary
Source: Holger Neumann, infineon
© improuv GmbH Agile Leadership | http://improuv.com
1. Evolutionary Approach
Introducing Agile Teams (agile islands)
Evolutionary
Source: Holger Neumann, infineon
© improuv GmbH Agile Leadership | http://improuv.com
1. Evolutionary Approach
Start with Agile Teams as Islands
▪ Very Low Risk for Biz
▪ Very easy to start
▪ Growing pace as needed
▪ Piloting & Test-Ballons
▪ Driven by highly motivated
people
▪ High Team Performance
Evolutionary
Decision / Grow
Advantage
Bottom-up
Invest
Challenges
Effectiveness / Usage
• Low effort to start
• Low Budget
• Team effort high
▪ Interaction/Interface to
traditional organization
▪ Each team starts from scratch
▪ Very Heterogene implementation
▪ High waste and effort in
training and communication
▪ Strong Dependencies
▪ Low Awareness in HR, PUR,
Exec, Top-Mgmt.
▪ Top-Mgmt. acts „only“ as
sponsor
▪ „Fighting“ against the traditional
culture and rules
▪ „The leader‘s dilemma“Pace/Sustainability
▪ Very slow
▪ Very unstable
▪ High effort to maintain
▪ Results, Effect and Benefit very
low and local
▪ Most common approach
Source: Holger Neumann, infineon
© improuv GmbH Agile Leadership | http://improuv.com
2. Disruptive Approach (Revolutionary)
Switch from a traditional to an Agile Organization
Disruptive
Source: Holger Neumann, infineon
© improuv GmbH Agile Leadership | http://improuv.com
2. Disruptive Approach (Revolutionary)
Switch from a Traditional to an Agile Organization
▪ Top-Mgmt. very committed
▪ Clear decision & Vision
▪ Executives are aware
▪ Homogene Implementation
▪ HR, PUR, etc. have to „deal“ with
it
Disruptive
Decision / Grow
Advantage
Top-Donw
Invest
Challenges
Effectiveness / Usage
▪ High effort to start
▪ Medium-High
Budget
▪ Team effort
medium
▪ Extremely high peak effort at the
beginning
(Communication/Training)
▪ Very high risk for running
operation
▪ Implementation “not” agile
(scrumbut)
▪ Mix of oranizational structure
▪ Reluctancy high due to decision
“to change”
▪ Key players, experts and
manager will leave
▪ (Two tier-society)
▪ Still old mind-set with new
practices
Pace/Sustainability
▪ Very Fast but high ops-risk
▪ Quite Stable (possible losses)
▪ Medium effort to maintain
▪ Medium Results and Benefit
▪ Often from evolution to disruptive
Source: Holger Neumann, infineon
© improuv GmbH Agile Leadership | http://improuv.com
3. Green Field Approach
Parallel Setup of new agile organisation
Green Field
Source: Holger Neumann, infineon
© improuv GmbH Agile Leadership | http://improuv.com
3. Green Field Approach
Parallel Setup of new agile organisation
▪ Very Low Risk for Biz
▪ Very easy to start
▪ Growing pace as needed
▪ No inherited burdens
▪ Create your own culture
▪ Best fit recruiting
▪ Homogeneous Implementation
▪ High Team Performance &
Motivation
▪ High Awareness & Support from
Top-Mgmt & Executives
▪ Strong commitment
Green Field
Decision / Grow
Advantage
Top-Donw
Invest
Challenges
Effectiveness / Usage
▪ Low effort to start
▪ High Budget/Cost
▪ Team effort Low
▪ High conflicts between
Interaction/Interface and
traditional organization
▪ Overlapp & Competition
▪ Strong Dependencies
▪ Two tier-society
▪ High recruiting effort
▪ New Product vs. Old Product
▪ Political games
▪ Merging Strategy
▪ Fear (Employees)
Pace/Sustainability
▪ Fast, low risk
▪ Extremely Stable
▪ „Natural“ Maintenance
▪ Low at the beginning BUT: high
potential
▪ Current Trend in large enterprises
Source: Holger Neumann, infineon
© improuv GmbH Agile Leadership | http://improuv.com
The Right approach?
© improuv GmbH Agile Leadership | http://improuv.com
Source: Holger Neumann, infineon
Which is the right approach?
THE right approach does not exist and it depends on
▪ Company Culture & Structure
▪ Willingness, Ability and Pressure to change
▪ Product Portfolio and Strategy
▪ Market dynamics and environment (e.g. safety)
▪ Customer Interaction
In each case it is a serious Change and needs
▪ Senior Manangement Commitment and Change Management
▪ Expertise and a dedicated Transition Team
GreenfieldDisruptiveEvolutionary
© improuv GmbH Agile Leadership | http://improuv.com
© improuv GmbH Agile Leadership | http://improuv.com
Agile Evolution
Culture
Scope
Environment
Structures
Enable
Align
Empower
Focus
© improuv GmbH Agile Leadership | http://improuv.com
Drive the Evolution
Manage yourself
▪ Be authentic
▪ Become a Catalyst
Make Agile Work
▪ Create a Culture of Trust
and Transparency
▪ Stable Teams
▪ Continuous Value Flow
Lead your People
▪ Focus – Enable – Align –
Empower
Manage your Organisation
▪ Scope – Culture –
Structures - Environment
© improuv GmbH Agile Leadership | http://improuv.com
Agile pitfalls and success factors
Pitfalls
▪ Practices only
▪ Shop floor only
Agile is mindset, principles and practices
▪ Pursue solid Agile practices
▪ Improve continuously, make change the way of working
▪ Make trust and collaboration part of your company’s DNA

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Agile Transformation Defined

  • 1. © improuv GmbH Agile Leadership | http://improuv.com Agile Transformation Concepts and Experiences in Large Enterprises
  • 2. © improuv GmbH Agile Leadership | http://improuv.com About us Christoph Mathis Founder of improuv Agile Experience since 2001 • Agile Coach and Trainer • Agile Leader • Organisation Transformation Background • Computer Science, PhD in Artificial Intelligence improuv GmbH München Since 2011 • Agile Transformation • Agile Leadership • Scaling Agile • Training and Consulting for Scrum, Kanban, SAFe, LeSS
  • 3. © improuv GmbH Agile Leadership | http://improuv.com Why is it so difficult to become agile
  • 4. © improuv GmbH Agile Leadership | http://improuv.com Source: Holger Neumann, infineon Finally we‘re Agile !!!
  • 5. © improuv GmbH Agile Leadership | http://improuv.com We need to scale, but: Scaling comes in many flavors ▪ Team -> multiple teams ▪ Covering the complete value stream ▪ Culture of transparency an dtrust ▪ Depth: developing appropriate principles and practices on all levels of management
  • 6. © improuv GmbH Agile Leadership | http://improuv.com We are missing something fundamental
  • 7. © improuv GmbH Agile Leadership | http://improuv.com Becoming Agile is a transformation What will change Collaboration People cooperate differently and stronger - internally and with customers Mindset People are motivated and compensated differently Pull vs. Push, Self-organization Roles New (& different) organizational roles Values New values, ethics etc. Behaviour New practices Fail early, often & forward 2
  • 8. © improuv GmbH Agile Leadership | http://improuv.com Agility provides new Capabilities
  • 9. © improuv GmbH Agile Leadership | http://improuv.com Key Capabilities of an Organization Amplify Learning Discover, Disrupt, Deliver Operational Excellence
  • 10. © improuv GmbH Agile Leadership | http://improuv.com Elements of Transformation
  • 11. © improuv GmbH Agile Leadership | http://improuv.com
  • 12. © improuv GmbH Agile Leadership | http://improuv.com Orientation: How to Start Basic Questions ▪ Are we ready ▪ Skills we need ▪ Develop a Plan First Steps ▪ Identify Sponsors ▪ Find the right scope ▪ Understand the Environment ▪ Understand the Culture ▪ Understand the Mindstate ▪ Bootstrap the Corporate Learning Cycle Readiness Check Train everybody - the DACH30 curriculum Prepare for Action
  • 13. © improuv GmbH Agile Leadership | http://improuv.com Knowledge Agile Evolution Readiness Check Culture CultureofLearning CustomerFocus Trust Delivery Quality IncrementalDelivery Portfolio&Strategy Structures Agile-enabling HRpractices (more) (more) (more) (more)
  • 14. © improuv GmbH Agile Leadership | http://improuv.com Agile Consortium of DACH30plus Agile Experts of large enterprises, responsible for the agile transition The network “Transition to Agile” was founded 2016 in order to facilitate the exchange of corporate agile transition experts from many of the top 50 companies in the DACH region Large enterprises face (common) specific challenges to integrate agile principles into their processes, governance systems and company culture.
  • 15. © improuv GmbH Agile Leadership | http://improuv.com
  • 16. © improuv GmbH Agile Leadership | http://improuv.com
  • 17. © improuv GmbH Agile Leadership | http://improuv.com
  • 18. © improuv GmbH Agile Leadership | http://improuv.com
  • 19. © improuv GmbH Agile Leadership | http://improuv.com Management Levels
  • 20. © improuv GmbH Agile Leadership | http://improuv.com Three Major Approaches in Large Enterprises Setup a complete, new „Agile“ Organization in parallel to an existing „Traditionall“ Organization Introduce Agile Teams in the existing organization and grow from there Switch to a complete agile organization GreenfieldDisruptiveEvolutionary Source: Holger Neumann, infineon
  • 21. © improuv GmbH Agile Leadership | http://improuv.com 1. Evolutionary Approach Introducing Agile Teams (agile islands) Evolutionary Source: Holger Neumann, infineon
  • 22. © improuv GmbH Agile Leadership | http://improuv.com 1. Evolutionary Approach Start with Agile Teams as Islands ▪ Very Low Risk for Biz ▪ Very easy to start ▪ Growing pace as needed ▪ Piloting & Test-Ballons ▪ Driven by highly motivated people ▪ High Team Performance Evolutionary Decision / Grow Advantage Bottom-up Invest Challenges Effectiveness / Usage • Low effort to start • Low Budget • Team effort high ▪ Interaction/Interface to traditional organization ▪ Each team starts from scratch ▪ Very Heterogene implementation ▪ High waste and effort in training and communication ▪ Strong Dependencies ▪ Low Awareness in HR, PUR, Exec, Top-Mgmt. ▪ Top-Mgmt. acts „only“ as sponsor ▪ „Fighting“ against the traditional culture and rules ▪ „The leader‘s dilemma“Pace/Sustainability ▪ Very slow ▪ Very unstable ▪ High effort to maintain ▪ Results, Effect and Benefit very low and local ▪ Most common approach Source: Holger Neumann, infineon
  • 23. © improuv GmbH Agile Leadership | http://improuv.com 2. Disruptive Approach (Revolutionary) Switch from a traditional to an Agile Organization Disruptive Source: Holger Neumann, infineon
  • 24. © improuv GmbH Agile Leadership | http://improuv.com 2. Disruptive Approach (Revolutionary) Switch from a Traditional to an Agile Organization ▪ Top-Mgmt. very committed ▪ Clear decision & Vision ▪ Executives are aware ▪ Homogene Implementation ▪ HR, PUR, etc. have to „deal“ with it Disruptive Decision / Grow Advantage Top-Donw Invest Challenges Effectiveness / Usage ▪ High effort to start ▪ Medium-High Budget ▪ Team effort medium ▪ Extremely high peak effort at the beginning (Communication/Training) ▪ Very high risk for running operation ▪ Implementation “not” agile (scrumbut) ▪ Mix of oranizational structure ▪ Reluctancy high due to decision “to change” ▪ Key players, experts and manager will leave ▪ (Two tier-society) ▪ Still old mind-set with new practices Pace/Sustainability ▪ Very Fast but high ops-risk ▪ Quite Stable (possible losses) ▪ Medium effort to maintain ▪ Medium Results and Benefit ▪ Often from evolution to disruptive Source: Holger Neumann, infineon
  • 25. © improuv GmbH Agile Leadership | http://improuv.com 3. Green Field Approach Parallel Setup of new agile organisation Green Field Source: Holger Neumann, infineon
  • 26. © improuv GmbH Agile Leadership | http://improuv.com 3. Green Field Approach Parallel Setup of new agile organisation ▪ Very Low Risk for Biz ▪ Very easy to start ▪ Growing pace as needed ▪ No inherited burdens ▪ Create your own culture ▪ Best fit recruiting ▪ Homogeneous Implementation ▪ High Team Performance & Motivation ▪ High Awareness & Support from Top-Mgmt & Executives ▪ Strong commitment Green Field Decision / Grow Advantage Top-Donw Invest Challenges Effectiveness / Usage ▪ Low effort to start ▪ High Budget/Cost ▪ Team effort Low ▪ High conflicts between Interaction/Interface and traditional organization ▪ Overlapp & Competition ▪ Strong Dependencies ▪ Two tier-society ▪ High recruiting effort ▪ New Product vs. Old Product ▪ Political games ▪ Merging Strategy ▪ Fear (Employees) Pace/Sustainability ▪ Fast, low risk ▪ Extremely Stable ▪ „Natural“ Maintenance ▪ Low at the beginning BUT: high potential ▪ Current Trend in large enterprises Source: Holger Neumann, infineon
  • 27. © improuv GmbH Agile Leadership | http://improuv.com The Right approach?
  • 28. © improuv GmbH Agile Leadership | http://improuv.com Source: Holger Neumann, infineon Which is the right approach? THE right approach does not exist and it depends on ▪ Company Culture & Structure ▪ Willingness, Ability and Pressure to change ▪ Product Portfolio and Strategy ▪ Market dynamics and environment (e.g. safety) ▪ Customer Interaction In each case it is a serious Change and needs ▪ Senior Manangement Commitment and Change Management ▪ Expertise and a dedicated Transition Team GreenfieldDisruptiveEvolutionary
  • 29. © improuv GmbH Agile Leadership | http://improuv.com
  • 30. © improuv GmbH Agile Leadership | http://improuv.com Agile Evolution Culture Scope Environment Structures Enable Align Empower Focus
  • 31. © improuv GmbH Agile Leadership | http://improuv.com Drive the Evolution Manage yourself ▪ Be authentic ▪ Become a Catalyst Make Agile Work ▪ Create a Culture of Trust and Transparency ▪ Stable Teams ▪ Continuous Value Flow Lead your People ▪ Focus – Enable – Align – Empower Manage your Organisation ▪ Scope – Culture – Structures - Environment
  • 32. © improuv GmbH Agile Leadership | http://improuv.com Agile pitfalls and success factors Pitfalls ▪ Practices only ▪ Shop floor only Agile is mindset, principles and practices ▪ Pursue solid Agile practices ▪ Improve continuously, make change the way of working ▪ Make trust and collaboration part of your company’s DNA