In the 21st century, organisations need to put the customer in the centre of our focus, shed outdated ways of thinking, embrace an Agile mindset, incorporate new ways of working and leverage the pace of change for competitive advantage. About Shane Hastie: Shane joined ICAgile in 2017 as the Director of Agile Learning Programs. He oversees the strategic direction and expansion of ICAgile’s learning programmes, including maintaining and extending ICAgile’s learning objectives, providing thought leadership and collaborating with industry experts, and supporting the larger ICAgile community which includes more than 90 member organisations and over 60,000 ICAgile certification holders. Over the last 30+ years, Shane has been a practitioner and leader of developers, testers, trainers, project managers and business analysts, helping teams to deliver results that align with overall business objectives. Before joining ICAgile, he spent 15 years as a professional trainer, coach and consultant specialising in Agile practices, business analysis, project management, requirements, testing and methodologies for SoftEd in Australia, New Zealand and around the world. He has worked with large and small organisations, from individual teams to large transformations all around the world. He draws on over 30 years of practical experience across all levels of Information Technology and software intensive product development. Shane is a former director of the Agile Alliance and is the founding Chair of Agile Alliance New Zealand. He leads the Culture and Methods editorial team for InfoQ.com.

1. The Foundations of Business Agility
Shane Hastie
Director of Learning – ICAgile

3. Our purpose is to be a leading forum to create and sustain a nationwide
agile community, independent of commercial drivers or any specific
method/framework, guided by and actively advocating for the values and
principles of the Agile Manifesto
The Agile Alliance of New Zealand has the primary goals of:
• Supporting the growth of the agile mindset through the industry in New
Zealand, with particular emphasis on areas which are currently
underserved (geographic areas as well as industries)
• Running programmes which have socially beneficial outcomes as well as
improving the state of the industry

4. Agenda
• Introduction
• The need for business agility
• What your organisation can do
• What you can do
• Wrap-up
4

5. Business Agility
•Business agility describes the
nimbleness of a company; that is, the
ability to adapt quickly while
empowering everyone associated with
the brand.
•Forbes
•Agility is the ability of an organization to
renew itself, adapt, change quickly, and
succeed in a rapidly changing,
ambiguous, turbulent environment.
•McKinsey
http://theagiledirector.com/article/2017/05/25/domains-of-business-agility-v2/

6. Why Business Agility

7. The World today is in a state of VUCA
“A rapidly evolving, dynamic, chaotic
complex business environment is the
norm rather than the exception”
David Sypnieski
• Rate of change
Volatility
• Unclear about future
outcomesUncertainty
• Many, many loosely related
factors impact outcomesComplexity
• Lack of clarity about
meaningAmbiguity

8. Business Agility is Necessary for Survival
The ability to respond rapidly to changes
in the internal and external environment
without losing sight of organisational
goals
•Adaptability
•Flexibility
•Balance
Building responsiveness and change
into the DNA of the organisation

9. Change Your Organisation

10. State of Business Agility
State of Business Agility Report – 2017 – CA Technologies

11. Changed Imperatives
• Leadership at every levelTop-down
management
• Do less, betterDo more with less
• Minimum viable process,
empowered people
Process over people
• Realtime value metricsCentralized annual
planning & budgeting
• Decentralized rolling-wave
planning
Activity milestones
• Long lived teams responsible
for products or services
Temporary teams on
projects

12. Organisations that have embraced Agile
have 3 core characteristics*
•The law of the small team
•The law of the customer
•The law of the network
*From an article by Steve Denning: http://www.forbes.com/sites/stevedenning/2016/09/08/explaining-agile/#4415385e2ef7

13. Great Teams
https://rework.withgoogle.com/guides/understanding-team-effectiveness/steps/identify-dynamics-of-effective-teams/

14. Create Space for Learning

15. Aligned Autonomy

16. Measuring the Right Things
•Value as outcomes delivered, not as work
done
•Productivity (Value/Cost to create Value)
•Benefits Realized
•Quality
•Customer and Employee Engagement &
Satisfaction
•Net Promoter Score
•Org Capability and Responsiveness
•How rapidly are we learning?

17. Beyond Budgeting – New Financial Models
Traditional Budgeting
Management Model
Beyond Budgeting
Management Model
Targets & rewards Incremental targets
Fixed incentives
Stretch goals
Relative targets & rewards
Planning & controls Fixed annual plans
Variance controls
Continuous planning
KPI’s & rolling forecasts
Resource &
coordination
Pre-allocated resources
Central co-ordination
Resources on demand
Dynamic coordination
Organisational
culture
Central control
Focus on managing
numbers
Local control of goals/plans
Focus on value creation

18. Radical Transparency

19. Act on Feedback
•Truthfully and honestly examine
the feedback through all
channels
•What is the next sensible step –
amplify, change direction, or
stop?
•Adapt and respond

20. Avoid Waste
Partially
done work
Extra
features
Relearning
HandoffsDelays
Task
switching
Defects

21. Rethink our Organizations
Respond at the speed of
change
Constantly listening to the
voice of the customer
Empower and align our
people
People are not
“resources” or “assets” –
they are the primary
source of value and
innovation
Outcomes over outputs Value over busy
Innovation as a core
competency
#NoProjects,
#NoEstimates – stop
pretending we can predict
the unpredictable and
adopt new funding
models

22. This means real changes,
not putting lipstick on a pig
http://thenewsdoctors.com/wp-content/uploads/2014/11/pig-lipstick.jpg

23. Change Yourself

25. ATTITUDES AND HABITS
ESTABLISHED SET
OF

26. Become a Lifelong Learner

27. Become Passionately Dissatisfied
•Challenge the status quo
•“We’ve always done it that way” leads to
entrenched failures
•Stop trying to “do more with less” –
focus on doing less, and doing it well
•Look for new ways, new ideas, new
combinations of existing ideas
•Take ownership of your own
improvements
•Hold yourself and your colleagues
accountable
Image © Kenhurst | Dreamstime Stock Photos
& Stock Free Images

28. Become Customer Fanatical
•We all have customers
•Empathize and understand
their needs
•We all contribute to the
value stream
•How can I make my
customers’ lives better?

29. Think like an entrepreneur
•Everything is an experiment
•Estimates are hypotheses
•Take calculated risks
•Courage to fail in order to succeed sooner
•Welcome challenges
•Embrace uncertainty and transform into knowledge
•Learn continuously through fact-based data analysis
•Create time and space for experimentation and innovation
•Become comfortable being uncomfortable
Source: IDEO

30. Transform Yourself
•Personal transformation is
necessary in order to
achieve sustainable
organisational
transformation
•This is the responsibility of
everyone in the
organization, not just
those at the top
https://www.linkedin.com/pulse/20140714023453-85816712-the-difference-between-change-and-transformation

31. VUCA Revisited

32. VUCA Revisited
•Vision
•The intent to create the future
•Understanding
•Learn, hear, feedback
•Clarity
•Sense making
•Agility
•The ability to respond to change
in order to profit in a turbulent
world
“A rapidly evolving, dynamic, chaotic complex
business environment is the norm rather than
the exception”
David Sypnieski

34. • People
• Marketing
• Finance
• Innovation
• Leadership
Business
Agility
Foundations

36. Contact Information
shane@icagile.com
ICAgile.com
Twitter: @shanehastie
LinkedIn: http://nz.linkedin.com/in/shanehastie/
Shane Hastie,
Director of Agile Learning Programs

37. Thanks for listening