The Wizard of OSS: The Magic of Open Space and Sociocracy for Business Agility

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A true agile business transformation can’t result from simply “trying harder” in using known agile methods only because agile has no answer to such questions as legal organizational structure strategy, inspiration, or the role of support departments such as finance or HR. For this reason, necessary key components for a successful enterprise agile transformation must be found outside of agile in other streams of development. These other streams can more readily guide us in developing: Continuous improvement strategies necessary to enable self-sufficiency and adaptation in every department - not just the software department. The executive and board roles in driving organizational agility. Processes, strategies, and structures that enable the current culture to self-organize for company-wide agility. We suggest “BOSSA nova” as a composite of four streams of development that, together, can lead us toward a broad enterprise agile transformation. The acronym stands for: B = Beyond Budgeting, OS = Open Space, S = Sociocracy, and A = Agile. Bossa nova, the style of music, is a synthesis of samba and jazz. Similarly BOSSA nova, the enterprise strategy, is a synthesis of different streams of development. Bossa nova is also an intricate dance, where dancers adapt their steps to the music, and their movements and their spirit in turn influences the musicians. In the same way, BOSSA nova helps your company adapt to its complex context and also influence that context. And finally, Bossa nova in Portuguese means new trend, new wave - which is how we envision a true business agility transformation. In this session, I will focus on the OSS in BOSSA nova and how those two streams of development (Open Space and Sociocracy) can be leveraged for a successful agile business transformation. These two components focus on answering the questions about the strategy for the legal organizational structure and the incorporation of the inspiration.

©2012-2018 by JEckstein.com11
@JuttaEckstein
Jutta@JEckstein.com
www.JEckstein.com
The Wizard of OSS:
The Magic of Open Space and Sociocracy for
Business Agility

©2012-2018 by JEckstein.com4
Open Space
 Self-organization
– Everyone is invited to address critical issues
 Passion bound by responsibility
– Self-responsible for learning and helping others learn
– Passion follows the strategy
 Empowerment
– Anything can happen inspired by anyone

©2012-2018 by JEckstein.com5
Sociocracy
 Definition:
– Rule by „socios,“ by people who know each other as
partners
– Subset of democracy
 Designed for use in organizations
– Feedback built-in the structure
– Every voice gets heard, no perspective overlooked

©2012-2018 by JEckstein.com6
DECISION MAKING

©2012-2018 by JEckstein.com7
Making Decisions

©2012-2018 by JEckstein.com8
Deciding by Consent

©2012-2018 by JEckstein.com9
Application of consent decisions

©2012-2018 by JEckstein.com10
ROLES & HIERARCHIES

©2012-2018 by JEckstein.com11
Example: Electing People to Functions & Tasks

©2012-2018 by JEckstein.com12
Approach: Electing People to Functions & Tasks
 Clarification of functions and tasks
 Proposal round – in writing
 Proposals are collected by facilitator and read out loud
 Rationale round
 Change round
 Summary of remaining suggestions and proposal
 Consent round
 Celebrate

©2012-2018 by JEckstein.com13
Application: Electing People to Functions & Tasks

©2012-2018 by JEckstein.com14
Hierarchies…

©2012-2018 by JEckstein.com15
Double Linking

©2012-2018 by JEckstein.com16
Application of Double Linking

©2012-2018 by JEckstein.com17
INVITATION FOR INNOVATION

©2012-2018 by JEckstein.com18
Failures are Opportunities

©2012-2018 by JEckstein.com21
Do you really mean it?
Probe: Are performance evaluations really reflecting
customer focus?
 Background:
– Company values are often lip service, other values often
rewarded
 Hypothesis:
– If customer focus is the foundation for performance
evaluation, customer satisfaction improves
 Experiment:
– Invite an experimental unit to write own performance
evaluation criteria related to their work & reflecting customer
interests

©2012-2018 by JEckstein.com23
OSS: Your Magic Wand
 Consent decision making for full buy-in to implement
change quickly
 Empower teams and individuals to make a hierarchy
agile with double-linking
 Elect people for roles to ensure new leaders can
emerge quickly
 Invite everyone to follow their passion and embrace
ideas for continuous innovation and improvement
 Be prepared to be surprised all the time by anyone!

©2012-2018 by JEckstein.com24
Many Thanks!
John Buck, @johnabuck
John.Buck@SociocracyConsulting.com
http://SociocracyConsulting.com
Jutta Eckstein, @JuttaEckstein
Jutta@JEckstein.com
www.JEckstein.com
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“Measuring from above” traditionally means measuring against a standard set in the past - against a set of assumptions based on customer research. The unstated assumption is that the customer data will be valid for at least some period of time in the future. OKRs and KPIs then give feedBACK against targets set based on management’s picture of what customers want. What is needed in our VUCA world, however, is feedFORWARD. That is, we must build a model of what customers will want in the future and act now against that model. Too often innovative people in medium to large organizations have the feeling of being in a box - with startling new ideas - and no one really listens. In essence, these innovators are trying to “measure performance upwards.” This upward voice intrinsically measures strategies and customer impact, and applying the concept can significantly improve the overall performance without relying on top-down OKRs and KPIs. Moreover, “measuring from above,” tends to measure only the output of production. However, in the VUCA world, we’re living in right now, measuring the output of production is not enough for companies that need to survive and thrive on disruption. Although OKRs and KPIs have served the business world well in the past, in the future, companies need to focus on the truly important outcome: what is really making a difference for our customers and therefore for our company. However, in a VUCA world, we cannot assume any sort of stability - the model of the future must change often if it is to be sensitive to changing conditions. The “view from below” is very likely to be more attuned to such changes than the view from the top, which necessarily operates at a more abstract, longer-term level. Without measurement from below, the measurement from the top is likely to become “old-fashioned” very quickly. Adding “measurement from below” to a company can create a mindset that empowers everyone to follow their passion and interest and nourish the company’s effectiveness. Implementing a “from below” approach to measurement involves a fundamental shift that asks the company to synthesize a variety of new approaches.

How Agile Is Your Whole Company? Use Data-based KPIs to Find Out!

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There is a way to measure your company’s progress in transforming to company-wide agility! Gain a holistic perspective of (your company’s) organizational agility by using a new assessment tool. In companies, we define OKRs and KPIs for aligning and measuring our performance. However, not much has been done thus far to measure how we are progressing on our journey to company-wide agility. With the right data, that journey can go more rapidly! In this session we provide an overview of what metrics to use, based on many years of experience and groundbreaking scientific theory and articulated as “BOSSA nova” - a synthesis of Beyond Budgeting, Open Space, Sociocracy & Agile. Embracing a data-driven approach to company-wide agility doesn’t mean you’ll have all the answers - but you’ll be able to ask better questions. A focus on data is especially important today when remote work settings create additional barriers to communication and understanding.

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4. ©2012-2018 by JEckstein.com4 Open Space  Self-organization – Everyone is invited to address critical issues  Passion bound by responsibility – Self-responsible for learning and helping others learn – Passion follows the strategy  Empowerment – Anything can happen inspired by anyone

5. ©2012-2018 by JEckstein.com5 Sociocracy  Definition: – Rule by „socios,“ by people who know each other as partners – Subset of democracy  Designed for use in organizations – Feedback built-in the structure – Every voice gets heard, no perspective overlooked

12. ©2012-2018 by JEckstein.com12 Approach: Electing People to Functions & Tasks  Clarification of functions and tasks  Proposal round – in writing  Proposals are collected by facilitator and read out loud  Rationale round  Change round  Summary of remaining suggestions and proposal  Consent round  Celebrate

21. ©2012-2018 by JEckstein.com21 Do you really mean it? Probe: Are performance evaluations really reflecting customer focus?  Background: – Company values are often lip service, other values often rewarded  Hypothesis: – If customer focus is the foundation for performance evaluation, customer satisfaction improves  Experiment: – Invite an experimental unit to write own performance evaluation criteria related to their work & reflecting customer interests

23. ©2012-2018 by JEckstein.com23 OSS: Your Magic Wand  Consent decision making for full buy-in to implement change quickly  Empower teams and individuals to make a hierarchy agile with double-linking  Elect people for roles to ensure new leaders can emerge quickly  Invite everyone to follow their passion and embrace ideas for continuous innovation and improvement  Be prepared to be surprised all the time by anyone!

24. ©2012-2018 by JEckstein.com24 Many Thanks! John Buck, @johnabuck John.Buck@SociocracyConsulting.com http://SociocracyConsulting.com Jutta Eckstein, @JuttaEckstein Jutta@JEckstein.com www.JEckstein.com PicturesbyKatjaGloggengießer

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