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Stop scaling... start growing an agile organization (IIBA)

Strategic advantage lies in being yourself and doing the right things the right way. Those who copy what their competitors are doing, place themselves behind the pack — a sure way of losing. This is why “scaling” agility is misleading at best, and disastrous at worst. When you take an existing model and fit your organization to that, you lose much of what makes you unique and different.

Companies small and large must instead learn to grow their own agility for their own advantage. This sounds simple — and it is, when you know what to look for.

In this presentation, Andrea Tomasini presents guidelines and heuristics for growing an agile organization along with concrete examples from Siemens and Ericsson. You will understand why the first step in any transition must be learning how to change. Small inexpensive experiments and empirical metrics will lead you towards your strategical goal, iteratively and incrementally.

The agile transition never ends — but you know it’s working when transitioning becomes a way of life. This not only lets you adapt to new market conditions: it also allows you to create change in the market, on your own terms.

Stop scaling... start growing an agile organization (IIBA)

  1. 1. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Stop scaling… Start growing an agile organization
  2. 2. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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 - 2015. What to scale?
  4. 4. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Delivery Model? Organizational Structure? Teams and Processes?
  5. 5. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. We’llhave largerProjects,we needtoscale… Ithinkscaling culturewillbethereal challenge…
  6. 6. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Why scale?
  7. 7. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. CorporateHierarchy Compliance Individual
  8. 8. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Agile Pilot Success! Teams demonstrated that Agile can deliver value faster, with higher quality, and is motivating… Organizations are pressed into Agile, and react using traditional approach...
  9. 9. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. The heartbeat of an agile organization…
  10. 10. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Client & Value focus Self-Organization &Autonomy Iterative & Incremental change to reduce the risk Continuous Improvement
  11. 11. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Adhocracy MarketHierarchy Flexibility & Discretion Stability & Control Internalfocus&Integration Externalfocus&Differentiation Clan Organizational Culture Profile (CVF) Agile Values & Principles
  12. 12. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. New Organization
 (up to 60 people) Grown Organization (from 60 to 500 people) Corporation (from 500 to many thousands people) “One size fits all?”… Not in practice… but in Principles!
  13. 13. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Basic principles and recurring patterns for growing agile…
  14. 14. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 1st Principle: focus on small incremental changes Whenever changing from one way of working to another, we will go through a hybrid situation where the coexistence of two different ways generates attrition, duplications and other forms of waste. The awareness of this fact should push us in delivering changes fast and in small increments…
  15. 15. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. The traditional approach to change management… …focused on standardization, before stabilization… t Design Documentation Rollout Fix Issues > 3-4 months…
  16. 16. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  17. 17. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  18. 18. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  19. 19. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Strategy Map June 2014 • Break out groups worked on detailing the various PSFs into actionable experiments to validate the hypothesis for organizational improvement
  20. 20. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 2nd Principle: focus on value and organize accordingly Focusing on value means to make sure that there are as few obstacles as possible in the direction of the value streams…
  21. 21. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  22. 22. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  23. 23. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Ideas Potential ROIF Ready to Pull Success: we can compare the value of projects easily (using defined KPIs) and make consistent business decisions. Failure: we still have endless discussions about priority and it’s costly to prepare project info for the portfolio process High Mid HighHigh HighHigh Dev Team Unified Portfolio & Program System to focus on Customer Value…
  24. 24. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Lean 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)
  25. 25. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2015. • Unified Portfolio and Program System to increase transparency, to visualize Customer Value and dependencies
  26. 26. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
  27. 27. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 3rd Principle: decentralize control whenever possible Decentralization of control and decision making, reduces the feedback loops, and enables faster reaction times. It requires defining goals and constraints to allow for autonomous decision making.
  28. 28. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  29. 29. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  30. 30. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. • 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
  31. 31. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 4th Principle: avoid synchronization of flows unless necessary De-synchronization is unintuitive, but allows for parallel distributed work, without having to carry the excessive burden of coordination and handovers.
  32. 32. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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…
  33. 33. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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
  34. 34. agile42 | We make your Agile transition succeed! www.agile42.com | All rights reserved. Copyright © 2007 - 2014. Release incrementally, with higher quality Automated testing in short cycles Delivered serviceable Product in just 2 months
  35. 35. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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”
  36. 36. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Overall lessons learned Changes in behaviour happened thanks to focus on principles and values, the resulting emergent systems showed recurring and reusable patterns to produce similar behaviours.
  37. 37. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. EDD Hendrik Esser | Commercial in confidence | © Ericsson AB 2015 | 2015-02-11 | Page 2 Commitment – We have moved from the question “are you committed?” to “how can we deliver?” Distribution instead of hierarchy – Planning/forecasting is distributed: many people do this from different angles (Strategy, Product Roadmap, Product Release, Feature, Sprint) – Each party trusts the other that they do their part of the whole. – Continuous flow of planning, follow-up and adaptation Collaboration instead of co-existence – No “contracts” between parts of Ericsson – Collaboration with a lot of interaction to drive alignment and by this enable autonomy. Most significant Changes after 7 years through transition
  38. 38. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Page 14 MC Conference | May 2014 Gunther Birk / I DT MC R&D 11 Restricted © Siemens AG 2014. All rights reserved Fast Lane PLC319F Lean transformation in practice Learnings •  Direct communication is the enabler for doing the necessary things at the right time •  Timeboxed development is mandatory to establish learning methods •  Ranked backlog / visualization creates unknown transparency on where we stand - over 7 teams, with more than 40 people •  Giving responsibility into the teams leads to outstanding engagement and results •  Thinking in customer value within each iteration gives us control on the functionality of our deliverables
  39. 39. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Page 12 MC Conference | May 2014 Gunther Birk / I DT MC R&D 11 Restricted © Siemens AG 2014. All rights reserved Fast Lane PLC319F Adopting lean thinking to hardware development The Question How can we be sure, that our redesign will be o.k.?! Parallel Sourcing - Serial material - Testing Equipment - Rapid Prototypes Parallel Qualification - Typetest - Loadtest Risk Exclusion -  Execute Complete DVT -  Evaluate Production process -  Build up production samples •  Speed-up by 40% •  Enhanced Quality •  Enhanced Design for Production Blog: LEAN@MC - english Blog
  40. 40. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Assessment Strategy Pilot Projects Rollout Enterprise Transition Framework (ETF)
  41. 41. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 1. There is no blueprint for an Agile Organization, as from the moment you’ll try to define one, it won’t be Agile anymore! agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
  42. 42. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 2. Scaling is not about the delivery or a model it’s about culture change, and continuous improvement agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
  43. 43. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 3. Becoming an Agile organization it is not a goal, it is a conscious decision to embrace a journey towards continuous improvement agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
  44. 44. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 4. Experience shows that there are recurring patterns emerging by embracing specific principles. Using this experience can be extremely valuable on your own journey agile42 | We advise, train and coach companies building software www.agile42.com | All rights reserved. Copyright © 2007 - 2015.
  45. 45. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. Thank You!
  46. 46. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. More food for thought... http://slideshare.net/tumma72
  47. 47. agile42 | the agile coaching company www.agile42.com | All rights reserved. Copyright © 2007 - 2015. 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, Team Coaching Framework TCF and 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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