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The Foundations of Business Agility
- 1. 28/10/2018 1 Shane Hastie MIMICE-VM Director of Agile Learning Programs The Foundations of Business Agility
- 2. 28/10/2018 2 Agenda •Introduction •The need forbusiness agility •What your organisation can do •What you can do •Wrap-up 3 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/
- 3. 28/10/2018 3 Why Business Agility TheWorld 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
- 4. 28/10/2018 4 Business Agility isNecessary 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 Change Your Organisation
- 5. 28/10/2018 5 State of BusinessAgility State of Business Agility Report – 2017 – CA Technologies 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
- 6. 28/10/2018 6 Organisations that haveembraced 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 Great Teams https://rework.withgoogle.com/guides/understanding-team-effectiveness/steps/identify-dynamics-of-effective-teams/
- 7. 28/10/2018 7 Create Space forLearning Aligned Autonomy
- 8. 28/10/2018 8 Measuring the RightThings •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? 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
- 9. 28/10/2018 9 Radical Transparency Act onFeedback •Truthfully and honestly examine the feedback through all channels •What is the next sensible step – amplify, change direction, or stop? •Adapt and respond
- 10. 28/10/2018 10 Avoid Waste Partially done work Extra features Relearning HandoffsDelays Task switching Defects Rethinkour 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
- 11. 28/10/2018 11 This means realchanges, not putting lipstick on a pig http://thenewsdoctors.com/wp-content/uploads/2014/11/pig-lipstick.jpg Change Yourself
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- 13. 28/10/2018 13 Become a LifelongLearner 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
- 14. 28/10/2018 14 Become Customer Fanatical •Weall have customers •Empathize and understand their needs •We all contribute to the value stream •How can I make my customers’ lives better? 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
- 15. 28/10/2018 15 Transform Yourself •Personal transformation isnecessary 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 VUCA Revisited
- 16. 28/10/2018 16 VUCA Revisited •Vision •The intentto 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
- 17. 28/10/2018 17 • People • Marketing •Finance • Innovation • Leadership Business Agility Foundations
- 18. 28/10/2018 18 Shane Hastie, Director ofAgile Learning Programs Contact Information shane@icagile.com ICAgile.com Twitter: @shanehastie LinkedIn: http://nz.linkedin.com/in/shanehastie/