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Improve the chances of success of your organization with Resilience and Antifragility

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Explicitly measuring and designing culture is an enabler towards agility and can provide incredible advantages to an organization development. Understanding how to lead such change is the one thing that might save your company in the rough waters of todays market. Are you ready for the challenge?

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Improve the chances of success of your organization with Resilience and Antifragility

  1. 1. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Improve the chances of success of your organization with Resilience and Antifragility Explicitly measuring and designing culture is an enabler towards agility and can provide incredible advantages to an organization development. Understanding how to lead such change is the one thing that might save your company in the rough waters of todays market. Are you ready for the challenge?
  2. 2. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Andrea Tomasini Agile Coach & Trainer andrea.tomasini@agile42.com @tumma72 @agile42/coaches
  3. 3. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. The World around us is changing faster than we think…
  4. 4. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Technology is often one of the main drivers in this change…
  5. 5. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. And most of the time it is considered a “commodity” which we are willing to compromise and outsource…
  6. 6. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016.
  7. 7. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. What is Fragility? We are trying to reduce the impact of volatility by controlling the knowns… forgetting that when the unknowns are hitting us, they will generate immensely more harm…
  8. 8. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Fire…
  9. 9. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Fighting…
  10. 10. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Prevention…
  11. 11. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Brush…
  12. 12. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. So what are Resilience and Anti-Fragility? Let’s try to understand what these two words mean and how can help us improving our organizations…
  13. 13. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. “Resilience is the capacity of a system to absorb disturbance and reorganise while undergoing change so as to still retain essentially the same function, structure, identity, and feedbacks.” [Brian H. Walker, 2004]
  14. 14. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. “Antifragility is a property of systems that increases in capability, resilience, or robustness as a result of stressors, shocks, volatility, noise, mistakes, faults, attacks, or failures” [Nassim Nicholas Taleb]
  15. 15. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Fragile it is a system which reacts by breaking without significant signs of alteration of deformation. From an organizational standpoint this emphasize the incapability of the organization to react to changes, and simply failing in unrecoverable ways. A fragile organization is both not ready and not capable to react to changes. Any minimal disturbance in the flow, or volatility can cause a breakdown. Fragile organizations are incapable of reacting to failures.
  16. 16. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Robust It is a system which is capable to resist to stress and avoid failures, requires to be specifically suited to resist to specific types of failures or stressors. From an organizational stand point means that the design of the organization is such that allows the organization to oppose to certain types of stressors, and resist failure. At the same time it means that an organization can only be designed to resist against some known types of changes or stressors, and won't be able to adapt to unknowns very quickly. So robust organizations might turn out to be fragile against unknown stressors.
  17. 17. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Resilient it is a system which react to changes, by reestablishing itself as closely as possible to its original state. Resilience is the capacity of a system to absorb disturbance and reorganise while undergoing change so as to still retain essentially the same function, structure, identity, and feedbacks. Applied to organizational design, it means that the organization is capable of assimilating change, and evolve to a new state which substantially provides the same level of services as before the change. Resiliency allows to withstands unknown changes and volatility by co- evolving with the change into a new stable state.
  18. 18. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Antifragile Antifragility is a property of systems that increases in capability, resilience, or robustness as a result of stressors, shocks, volatility, noise, mistakes, faults, attacks, or failures. An antifragile system is a system which improves as a result of stressors and failures. Many biological systems have this property, and also some organizations can be design to be able to learn and improve based on the attacks they are subjected to and the failures they undergo. Instead of trying to go back to their previous state, they evolve to a new state which is betters suited for the current market conditions.
  19. 19. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016.agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2009. Individuals & interactions Working software Customer collaboration Responding to change Processes & tools Comprehensive documentation Contract negotiation Following a plan o v e r We recognize the value here...We value this more….
  20. 20. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Client & Value focus Self-Organization &Autonomy Iterative & Incremental change to reduce the risk Continuous Improvement
  21. 21. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. How to improve resilience and antifragilty of an organization? Can we really design an organization which is ready and prepared to recover from failure? Can failure make your organization stronger?
  22. 22. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Hierarchy Compliance Rigidity
  23. 23. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. 1st Principle: validate changes in small increments Change is difficult and confronting. Validate changes with small safe-to-fail experiments, executed at regular intervals, to reduce resistance and minimize the waste of two coexisting systems, whilst gradually incorporating validated learnings.
  24. 24. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. The traditional approach to change management… …focused on standardization, before stabilization… t Design Documentation Rollout Fix Issues > 3-4 months…
  25. 25. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. The agile approach to change management… …focused on stabilization with emergent standardization… Design Rollout Doc Rollout Doc Rollout Doc Coach ≤ 12 weeks t Design Coach Rollout Doc Rollout Doc Experimentations allows for better approaches to emerge
  26. 26. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Goal PSF NC Agile Strategy Map™ Define the Goal we want to achieve Possible Success Factor (PSF) represents a hypothesis about a key factor that would enable us to achieve the Goal Necessary Condition (NC): what is needed in order to fulfill the Success Factor
  27. 27. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Strategy Map from March 2014 • The Goal for 2015 has been established • The Transition Team identified at least 7 PSFs that would provide a powerful leverage to achieve the final Goal
  28. 28. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Strategy Map June 2014 • Break out groups worked on detailing the various PSFs into actionable experiments to validate the hypothesis for organizational improvement Safe-To-Fail Experiments
  29. 29. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. 2nd Principle: focus on value delivery and adjust accordingly Your organization is a tool to deliver value to your customers. Identify what that value is and adjust the organization to focus on delivering it, whilst removing waste and making adjustments to streamline the simplest path to delivery.
  30. 30. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. The matrix organization… SubSystem1 SubSystem2 SubSystem3 Infrastructure Operations PMO Project 1 Project 2 Project 3 … optimized for utilization, not value delivery… Handovers and coordination Value Client Push in the lines
  31. 31. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Stream 1 Stream 2 Stream 3 The agile organization… SubSystem1 SubSystem2 SubSystem3 Infrastructure Operations … optimized for value delivery and time to market Value Client Pull on the streams
  32. 32. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Opportunity Canvases to create context and focus on Customer Value… Lean Portfolio Canvas™ have been created by agile42 and are licensed using Creative Common 3.0 with attribution (BY), non commercial usage (NC) and share alike (SA) options. You can reuse and modify the template, but you will always have to leave the logo on it. OpportunityName (title) 1. Opportunity 2. Customer Segments What is the problem to be solved? What type of customers & users will benefit from this solution? How is the customer solving the problem right now? 3. Possible Solution What are the key points of a possible solution to the presented problem? 4. Benefits What are the benefits for the customers? 6. Measuring Success What metrics will be best measure the success of the feature? 5. Business Readiness What steps are required from the business side to be able to use this capability? 7. Cost of Delay Which profile better represent the cost of delay (CoD)? 8. Costs Structure How does the cost structure look like for such a feature? One time, ongoing costs, contractors expenses, development costs? 9. Value to Customer and Business What are the expected incremental revenue for selling this feature, and what are the strategic and tactical benefit? What are the intangible values (usability, performance, customer knowledge obtained...) Opportunity Owner (name)
  33. 33. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Unified Portfolio and Program System to increase transparency, to visualize Customer Value and dependencies
  34. 34. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016.
  35. 35. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016.
  36. 36. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. 3rd Principle: decentralize control Decentralization of control and decision making shortens feedback loops and enables a more responsive organization. Define goals and constraints to allow for autonomous decision making and create Containers for Empowerment encouraging responsibility ownership and empowered action. Set boundaries with Enabling Constraints and encourage growth within these boundaries and challenges of them when they become limiting.
  37. 37. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Control ! Worker 1 Sub 1 Worker 2 Sub 2 Sub 3 The hierarchical organization… Centralized Control, ends up overloaded, introducing delays Requests Authorization the design is based on mistrust… Information&power
  38. 38. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Container for empowerment Worker 3Worker 2 The agile organization… Decentralized Control reduces overhead, and encourage collaboration the design is based on trust… Worker 1 Collaboration Information&power
  39. 39. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. • Both on the “budget” level, as well as on the expected delivery and preparation levels • This level of transparency allows to build trust between Portfolio Management and self-organizing teams • Clear Policies describing the range of autonomy the teams have
  40. 40. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. • Every team has two “avatars” to volunteer on upcoming Opportunities • The Opportunity Owner will get in touch with the team to get their input and enrich the backlog
  41. 41. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. 4th Principle: remove unnecessary synchronization of flow Interdependencies are a symptom of an over synchronized system design. They carry the excessive burden of coordination, handovers and project plans which dramatically increase the transaction costs. Design a decoupled system which removes unnecessary synchronization and establishes effective working agreements which grant collective responsibility and ownership.
  42. 42. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. t Project 2 Project 3 Project 1 The plan driven organization… Synchronization of all Projects for a release, decreases efficiency and increases coordination costs Release Pm 3 Pm 1 Pm 2 …fixed scope and fixed date…
  43. 43. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. t The agile organization… De-synchronization of development teams to reduce cost of release …variable scope and variable date… Feature A Release Team 1 Team 2 Team 3 Team 4 Feature B Release Release Feature C Release Feature D Release Feature E
  44. 44. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Release incrementally, with higher quality Automated testing in short cycles Delivered serviceable Product in just 2 months
  45. 45. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Continuos Integration & Delivery… Switch from big product releases to incremental change, every feature is released on all platforms “Focusing on one Feature at a time allowed for faster feedback also involving stakeholders was easier… deliver fast to learn fast”
  46. 46. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. And don’t forget about culture and context… Ok, now you get which patterns can help your organization and your teams improve their resilience and antifragility so what do you need to make it happen?
  47. 47. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. 5th Principle: make culture explicit Organizational culture exists and manifests in the form of behaviors and activities. Make it explicit to allow for better alignment and context creation - its difficult to change what cannot be seen. Once explicit, set a new direction to a more appropriate culture which supports strategic goals whilst supporting the values and behaviors that are important to the people within the organization.
  48. 48. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. “This is how we do things around here…” Culture is the set of behaviors that have been established and accepted within an organization
  49. 49. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Culture Type: Hierarchy Orientation: Controlling Leader Type: Coordinator, Monitor, Organizer Value Drivers: Efficiency, Timeless, Consistency and Uniformity Theory of Effectiveness: Control and efficiency with capable processes produce effectiveness Culture Type: Market Orientation: Competing Leader Type: Hard driver, Competitor, Producer Value Drivers: Market share, Goal achievement, Profitability Theory of Effectiveness: Aggressively competing, customer focus produce effectiveness Culture Type: Adhocracy Orientation: Creative Leader Type: Innovator, Entrepreneur, Visionary Value Drivers: Innovative outputs, Transformation, Agility Theory of Effectiveness: Innovativeness, vision, and new resources produce effectiveness Culture Type: Clan Orientation: Collaborative Leader Type: Facilitator, Mentor, Team Builder Value Drivers: Commitment, Communication, Development Theory of Effectiveness: Human development and participation produce effectiveness Flexibility & Discretion Stability & Control Internalfocus&Integration Externalfocus&Differentiation Organizational Culture Profile (CVF)
  50. 50. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Organization Cultural Profile (CVF) 10 20 30 40 50 60 10 20 20 20 10 10 30 40 50 60 30 40 50 60 30 40 50 60 Ad-hocracy Hierarchy M arket Clan Flexibility & Discretion Stability & Control Internalfocus&Integration Externalfocus&Differentiation Most of mature organizations today have a strong Hierarchy oriented profile They struggle to introduce a more agile and lean approach to work, because the hierarchical culture is not supportive of agile values and principles Agile Values & Principles
  51. 51. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Organization Cultural Profile (CVF) 10 20 30 40 50 60 10 20 20 20 10 10 30 40 50 60 30 40 50 60 30 40 50 60 Ad-hocracy Hierarchy M arket Clan Flexibility & Discretion Stability & Control Internalfocus&Integration Externalfocus&Differentiation Most of the organization today have a strong Hierarchy oriented profile They struggle to introduce a more agile and lean approach to work, because the hierarchical culture is not supportive of agile values and principles To create the right context to move toward a more agile and lean culture, we need to transition toward Clan or Ad- Hocracy
  52. 52. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. “If you can make culture explicit, you can agree where you stand, and where you want to go…” There are two ways of encouraging behaviours within an organization: 1. Story telling and role-modeling (e.g: empathy and tradition, walk the talk) 2. Ritualization (e.g: Scrum events, Ritual Dissent, Open Space)
  53. 53. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. 6th Principle: create the appropriate context Process, rules and even culture are often set without consideration to the context in which they are intended. Context matters and is a great lever for success. It needs to be created appropriately for the purpose it is intended so as to refrain from establishing a single context to fulfill multiple purposes.
  54. 54. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Ordered Unordered Disorder Complicated Good Practice Sense-Analyze-Respond Governing Constraints Obvious Best Practice Sense-Categorize-Respond Rigid Constraints Complex Emergent Practice Probe-Sense-Respond Enabling Constraints Chaotic Novel Practice Act-Sense-Respond No Constraints
  55. 55. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. t Culture, Market/Product Maturity & Context Early Adopters Early Majority Late Majority Laggers Chasm CultureTools Complex (Emergent) Com plicated (G ood Practices) Obvious (Best Practices) Rapid Prototyping/XP Scrum/
 XP Scrum/
 Kanban Kanban Chaotic (Novelty) Complex (Emergent)
  56. 56. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Thank You!
  57. 57. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. More food for thought... http://slideshare.net/tumma72
  58. 58. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2016. Copyrights notice All material produced in this presentation is protected by the Creative Common License 4.0 (by-nc-sa). The brands and logos of agile42, Enterprise Transition Framework ETF (http://agile42.com/etf/), Team Coaching Framework TCF (http://tcf.agile42.com/) and Agile Strategy Map (http://www.agile42.com/en/agile-transition/agile- strategy-map/) are Copy Rights and Trademarks of agile42 GmbH, and agile42 International GmbH and can’t be reused without written authorization

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