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SCALING AGILE IS NOT THE PATH
TO BUSINESS AGILITY
Stories from the frontlines of
Agile and Digital Transforma!ons
Inês Almeida
PROLOGUE
AGILE
The darling of the
corporate world.
AGILE today = Efficiency.
Productivity.
“Velocity”.
What we have gained in amplification, we have lost in
Vision and Ambition.
Agile
Transforma!on
in"a!ves dropped
the ball . . .
. . . with an overemphasis
on Operating Effectiveness
at the expense of
Customer-Centricity and
Connected Experience.
VS
The Enterprise seeks Sustained Growth
and Unique Competitive Advantage.
“Transformation” initiatives
• Digitisation
• Agile Engineering & Ways of
Working
• Digital Product Innovation and
the Startup Way
Transformations
70% Fail
Source: Forbes and McKinsey.
Sustained high growth?
Love?
We have forgo!en
why we copy the
unicorn.
Why do we subscribe to Spotify? Price or Personalisation?
Is the lauded “Spo!" Model” great at:
1) delivering internally focused
e#ciencies, or
2) responding to consumer needs fast and
con!nuously?
20182009
REVENUES
NET INCOME/LOSS
5 259 m
-78 m
“Although Spotify
has been posting
solid revenue
growth over the
last three years,
the company has
remained loss-
making due to
high royalty and
operating costs.”
Forbes
20182011
191m premium subs
(monthly)
87m active users
(monthly)
BUSINESS AGILITY > AGILE
Scaling agile alone is not the path to
business agil!
BUSINESS AGILITY
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
AGILITY
EXPERIENCE
BUSINESS AGILITY
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
AGILITY
EXPERIENCE
Understand and
Anticipate Customer
Needs
BUSINESS AGILITY
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
AGILITY
EXPERIENCE
Deliver Products,
Services &
Connected
Experiences that
respond to those
needs.
BUSINESS AGILITY
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
AGILITY
EXPERIENCEOperational and
Strategic Agility to
do it continuously
and at speed.
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
OPERATING AGILITY
EXPERIENCE
AGILE TRANSFORMATION
Most AGILE initiatives are still mostly focused on to the cost side of
the Business Model Canvas.
Focus of TRANSFORMATION
Address IT Legacy & Complexity
Improve Delivery Model
Build the Foundation
Business Case = Cost Savings
Takes !me . . . But, can we a"ord to wait?
ACT I
A Long Time Ago in an Engine
Room Far Away . . .
THE AGILE ENGINEERING ERA
Agile So!ware Development aspired to deliver early
value to the Business.
In the C-suite, the
CIO was the first to
see the benefit of
Agile.
Technical Debt
a by-product
of misguided
agility . . .
Technical
Debt
Time
Change?
Forget it!
Change is
Easy
Unrefactored Code
Refactored Code
Concept by Jonathan Rasmusson
Continuous
Deployment
Continuous
Delivery
DevOps
“Our goal should not be
productivity, but to design
and deploy a great
customer experience
quickly—again and again
over time.”
Jim Highsmith, Velocity is Killing
Agility, 2011
ACT II
Minimum Viable, Evolu!onary
Everything and Anything.
THE PRODUCT INNOVATION ERA
The shift from
Process-centric to
Product-centric
Agility
The Rise of the
Innova!on Labs
SCRUM
Takes Flight
Wide-scale adoption by the frozen middle
Everyone started
Sprin!ng
Design, Strategy, Marke!ng, Brand . . .
Agile vs Scrum
Religious Wars
A Pinch of
Design
Lean UX Adoption
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
EXPERIENCE
PRODUCT AGILITY
AGILITY
“We’re seeing increasing demand for
products to be delivered and scaled fast,
and this need for speed is crippling the
crea!v" of the design process.
The result is products being delivered to
market quickly (perhaps using respected
Agile processes), but that some!mes lack
simplic", elegance, personal" and—
ul!mately—cra#, all of which should be
significant selling points of design.”
FJORD Trends 2018. Design Outside the Lines.
There’s an App
for That!
Decentralised Innovation at the edges.
We focused on Lean
Portfolio Management.
We failed to address
the fragmented
experience ecosystem.
PODS & SQUADS
Loosely Coupled
&
Highly Somewhat Aligned
SLICES
Descentralised,
vertically oriented,
and iterative delivery
models
ACT III
Debt. Plen! of It. At Scale.
THE DIGITAL ERA
Digital (marketing) and
the decentralization of
technology ownership
“The number of vendors pitching
marke!ng technology, also called
martech, has exploded. There are
some 3,000 vendors today, their
ranks swelling anywhere from 300
to 500 annually. Most of them sell
directly to CMOs who, in "rn, are
more than willing to keep CIOs out
of the loop.”
CIO-to-CMO Trans#on of Power
Is Becoming a Real$ – CIO.com
2014
Fragmented Experiences due to:
• Silos in the enterprise.
• AdTech/Martech ecosystems.
• Proliferation of Products.
• New channels.
• “Velocity killing Agility”.
• Chasm between physical and
digital.
We’ve been pulling
things and people
apart into squads,
products, APIs, and
services.
The highly effective and
autonomous building blocks
at best deliver fragmented
value.
For a while, we gain speed,
but not sustainably;
Not when we fail to look
at the bigger pic!re
and orchestrate
connected value and
experience.
EPILOGUE
A new class of digital leadership is emerging
to deliver the next era of Transforma!on.
The progressive C-level digital
leader:
• Navigate IT architectures and
end-to-end digital ecosystems,
• Co-creates compelling customer-
centred visions,
• Drives evolving strategies and
plans,
• Unlocks investments,
• Delivers change at scale,
• Continuously improves operating
effectiveness.
Keeps her focus
squarely on the
customer.
“One in four CIOs will expand their remit in 2019 and become
true owners of digital business and technology-led innovation,
leaving the rest relegated to trusted IT operators.”
Forrester Trends 2019
In Agile management, there is no such thing as
an “internal customer.” The only purpose of
work is the ultimate customer or end-user.
. . .
Satisfying so-called internal customers is
merely feeding the bureaucratic beast. It is a
pretend-version of Agile.
Steve Denning
Scaling Agile alone
is not the path to
Business Agility
Design-Led
Agile Enabled
Enterprise
Design leaders showed a:
32% higher revenue growth
&
56% higher growth of total
return to shareholders
The Business Value of Design Study by McKinsey.
.
Results hold true for both physical and digital products and services as well as
hybrids of the former two.
The Business Value of Design S!dy by McKinsey.
1. MORE THAN A PRODUCT
The most successful companies merge the boundary
between products and services by integrating them into
united customer experience.
The Business Value of Design Study by McKinsey.
2. MORE THAN A DEPARTMENT
Strong correlation between revenue growth and designer
engagement in all development stages.
The Business Value of Design S!dy by McKinsey.
3. MORE THAN A PHASE
Good design practice is to do prototype testing together
with the potential users both in the early development
process as well as after the product launch.
The Business Value of Design S!dy by McKinsey.
= STARTUP
CUSTOMERS
MANY OFFLINE & ONLINE PRODUCTS, SERVICES & EXPERIENCES
DATA
INSTITUTIONAL MEMORY
ECOSYSTEM RESPONSIBILITIES
Competitive Advantage
Great Expectations
Intelligent, personal,
relentlessly relevant,
connected, dynamic, and
consensual experiences
Getting things right. At the right time and place.
“Living and breathing
brand systems with the
abil! to learn and evolve
at scale.”
Prophet
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
EXPERIENCE
BUSINESS AGILITY
AGILITY
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
EXPERIENCE
BUSINESS AGILITY
AGILITY
Single Customer View
AI, Data & Analytics
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
EXPERIENCE
BUSINESS AGILITY
AGILITY
Product Experience
Connected Experience
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
EXPERIENCE
BUSINESS AGILITY
AGILITY
Strategic Agil!
Opera"ng Agil!
Bottom-up, decentralised approaches don’t
actually enable sustained business agility.
Deciding what and how to centralise vs
decentralise is more complicated than that.
CUSTOMER
CENTERED
INSIGHT, FORESIGHT AND WISDOM
EXPERIENCE
BUSINESS AGILITY
AGILITY
Org Refactoring
at Scale
INTERNET ERA ARTIFICIAL INTELLIGENCE ERA
“Adding Deep Learning to an internet company does not make an AI
company” – Andrew NG
• AB testing,
• Short cycle times,
• Pushing decision making to
engineers and product
managers.
• Building enterprise-wide
platforms,
• Unified data solutions,
• Organising data and
intelligence functions
horizontally.
“Data science isn’t woven into our cul!re;
it is our cul!re. We started with it at the
heart of the business, rather than adding it
to a trad"onal organiza#onal struc!re,
and built the company’s algorithms
around our clients and their needs.”
Katrina Lake
CEO - S!tch Fix
May 2018
Wanted! Transformational Digital Business
Leaders!
Design-Led
Agile Enabled
Enterprise
THANK YOUInes@NKDCO.org
0408889946

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