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OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
Agile is dead, so what ?
Agile @ Scale, Beyond Budgeting and other recipes
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
Once upon a time...
CIO
CFO
CHO
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
The watermelon syndrome
Focus on growth rather than value
New comers with short time-to-market
Happy clients?
Be more client focused
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
Resources?
People are not engaged
The talent war is there
We don’t really know what happens
Change management mindset
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
Budgeting as a cost center
Summer means available changes
We do not execute what we plan
We make cost decision and not business
From batch to flow
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
Let’s try….
Agile new Leadership model Beyond Budgeting
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
We need to scale Agile in
the organization
Agile = Scrum
From component to feature
◉ Stuck in the system (budget, rewards,…)
◉ Autonomy when allowed by the
management
◉ 2 operating models at the same time
◉ Focus on delivering features (vs software)
◉ Progress more visible
◉ Better collaboration
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
We must change the
system
New Leadership model
From command & control to sense & respond
◉ We got a problem with middle managers
◉ Nothing really change (waiting for the next
wave)
◉ Managers behave as the system constraints
◉ Changes at operational level
◉ Discussions about the all in one manager
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
We need to change our
management model
Beyond Budgeting = Rolling Forecasts
From traffic light to round about
◉ New ways of budgeting (project portfolio,
capacity, VC,…)
◉ Targets are not budget, resources
allocations doesn’t mean projects
◉ Detailed doesn’t mean accurate
◉ Problems more visible
◉ Decentralization decisions = Trust
◉ Rolling forecasts <> Cost cutting aka budget
optimization
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
Let’s try…
Agile @ Scale The why manager Beyond Budgeting principles
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
System thinking
Agile @ Scale
Looking for business capabilities
◉ What is your north star?
◉ What does value mean for you?
< Customer experience
< Business process
< Technology systems
◉ Cut dependencies (to go faster)
◉ Balance value and coherence
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
◉ The principle of mission: specify the end state,
its purpose, and minimal possible constraints
Let them make decisions
The why manager
Think or act?
◉ Organic organization: split the manager job in
2 roles, Delivery & Growth/System
◉ Help your people grow is as important as tell
them where to go
◉ Make decisions at the right level
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
Last BBRT news
◉ How to implement a reliable, agile and optimised
forecasting process?
◉ How to define a fair incentive scheme?
◉ How to empower people at Business Unit level?
◉ How the Beyond Budgeting approach can reinforce
the “business partner” role of the Finance function?
◉ Cécile Canabis of Danone as CFO of the year due to
the successful implementation of Beyond Budgeting
in the Danone group.
Management innovation
Beyond budgeting principles
The adaptive management model
◉ The why at every level of the organization
(example: OKR [Objectives - Key Results])
◉ What am I supposed to do as a manager?
◉ Culture = Management
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
All is linked, all is consequence
OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
◉ Keep principles in mind
◉ Context is key
Agile is dead
+
+
17

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Beyond budgeting, agile scale and other recipes

  • 1. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable Agile is dead, so what ? Agile @ Scale, Beyond Budgeting and other recipes
  • 2. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable Once upon a time... CIO CFO CHO
  • 3. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable The watermelon syndrome Focus on growth rather than value New comers with short time-to-market Happy clients? Be more client focused
  • 4. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable Resources? People are not engaged The talent war is there We don’t really know what happens Change management mindset
  • 5. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable Budgeting as a cost center Summer means available changes We do not execute what we plan We make cost decision and not business From batch to flow
  • 6. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable Let’s try…. Agile new Leadership model Beyond Budgeting
  • 7. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable We need to scale Agile in the organization Agile = Scrum From component to feature ◉ Stuck in the system (budget, rewards,…) ◉ Autonomy when allowed by the management ◉ 2 operating models at the same time ◉ Focus on delivering features (vs software) ◉ Progress more visible ◉ Better collaboration
  • 8. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable We must change the system New Leadership model From command & control to sense & respond ◉ We got a problem with middle managers ◉ Nothing really change (waiting for the next wave) ◉ Managers behave as the system constraints ◉ Changes at operational level ◉ Discussions about the all in one manager
  • 9. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable We need to change our management model Beyond Budgeting = Rolling Forecasts From traffic light to round about ◉ New ways of budgeting (project portfolio, capacity, VC,…) ◉ Targets are not budget, resources allocations doesn’t mean projects ◉ Detailed doesn’t mean accurate ◉ Problems more visible ◉ Decentralization decisions = Trust ◉ Rolling forecasts <> Cost cutting aka budget optimization
  • 10. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable Let’s try… Agile @ Scale The why manager Beyond Budgeting principles
  • 11. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable System thinking Agile @ Scale Looking for business capabilities ◉ What is your north star? ◉ What does value mean for you? < Customer experience < Business process < Technology systems ◉ Cut dependencies (to go faster) ◉ Balance value and coherence
  • 12. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable ◉ The principle of mission: specify the end state, its purpose, and minimal possible constraints Let them make decisions The why manager Think or act? ◉ Organic organization: split the manager job in 2 roles, Delivery & Growth/System ◉ Help your people grow is as important as tell them where to go ◉ Make decisions at the right level
  • 13. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable Last BBRT news ◉ How to implement a reliable, agile and optimised forecasting process? ◉ How to define a fair incentive scheme? ◉ How to empower people at Business Unit level? ◉ How the Beyond Budgeting approach can reinforce the “business partner” role of the Finance function? ◉ Cécile Canabis of Danone as CFO of the year due to the successful implementation of Beyond Budgeting in the Danone group. Management innovation Beyond budgeting principles The adaptive management model ◉ The why at every level of the organization (example: OKR [Objectives - Key Results]) ◉ What am I supposed to do as a manager? ◉ Culture = Management
  • 14. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable
  • 15. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable All is linked, all is consequence
  • 16. OCTO © 2018 - Reproduction interdite sans autorisation écrite préalable ◉ Keep principles in mind ◉ Context is key Agile is dead + +
  • 17. 17