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Agile Organization DesignLv Yi @ Odd-e
Introduction
What is organization?
“An organization is a social entity that has a collective goal and is linked to an external environment.”
- Wikipedia
Organization Design
Star Model
Strategy
• Set the organization’s direction
• Encompass company’s vision and mission, as well as its short- and long-term goals
• The cornerstone of organization design process
Structure
• Determine where formal power and authority are located
• It comprises the organizational components, their relationships, and hierarchy
• It is what is shown on a typical organization chart, including roles and responsibilities
Processes
• Structure alone creates barriers to collaboration
• Lateral capabilities to overcome (from informal to formal)
Rewards
• Metrics help align individual behaviors and performance with the organizational goals
• Reward and recognition system communicates what the company values
People
• The people (HR) practices create organizational capability from the many individual abilities resident in the organization
• Different strategies require different people practices in the area of selection, performance feedback, and learning and development
Agile Organization
Strategy
Organizational Capabilities
Origin of Scrum
Scrum in the Context
Strategy Product
Organizational capability
Speed and flexibility
Organizational design
(explicit) Structure and Processes
(implicit) Rewards and People
Agile transformation is to increase organizational agility
Exercise: What is Organizational Agility?
Doing and Being
Practices
Culture
Perfection Vision
Create the organizational ability to respond to changes by being able to deliver or change direction at any time without additional cost
- Craig Larman- Bas Vodde
Agility is the ability to create and respond to change in order to profit in the turbulent business environment.
An enterprise’s ability to take advantage of opportunities, respond to challenges, and to do so while controlling risk.
- Jim Highsmith
- Ken Schwaber
Performance
• Speed
• Flexibility
• Value
• Quality
• Productivity
Begin with the end in mind
M-MGWWe believe that fundamental changes needed in our minds to succeed with this journey are as follows:
• More people initiative and less top down control
• More team players and less individual heroes
• More courage and less risk avoidance
• More conversations and less one way communication
• More personal growth and less comfort zone
My own experience
• Quality crisis
• Responding to change
• “I felt that our organization were like a school where we learned together”
Structure
Organizational Structure
Functional
Product
Customer
Exercise: Understand basic structures
Functional Structure
+ Knowledge sharing+ Specialization+ Leverage with vendors+ Economies of scale+ Standardization
- Managing diverse products or service- Cross-functional processes
Product Structure
+ Product development cycle+ Product excellence+ Broad operating freedom
- Divergence- Duplication- Lost economies of scale- Multiple customer points of contact
Customer Structure
+ Customization+ Relationships+ Solutions
- Divergence- Duplication- Scale
Scrum Roles
Product Owner Team ScrumMaster
Scrum Teams as Organizational Unit
Cross-functional Team
• All skills needed to build the product
• Balancing specialization with generalization
• Close cross-functional collaboration
Self-managing Team
Team together has the authority to:
✓Design, plan, and execute their task
✓Monitor and manage their progress
✓Monitor and manage their process
Authority Matrix
Feature team vs. Component team
Item 1
Item 2
Item 3
Item 4
...
…
system
comp
C
Team
comp
A
Work from multiple teams is required to finish a customer-centric feature. These dependencies cause waste such as additional planning and coordination work, hand-offs between teams, and delivery oflow-value items. Work scope is narrow.
Product
Owner
comp
B
Team
comp
A
Team
comp
B
comp
C
Item 1
Item 2
Item 3
Item 4
...
…Team
Wu
Product
Owner
Team
Shu
Team
Wei
system
comp
A
comp
B
comp
C
Every team completes customer-centric items. The dependencies between teams are related to shared code. This simplifies planning but causes a need for frequent integration, modern engineering practices, and additional learning.Work scope is broad.
Component teams Feature teams
www.craiglarman.com
www.odd-e.com
Copyright © 2010
C.Larman & B. Vodde
All rights reserved.
Feature team vs. Feature project
Product Project
Exercise: How does Scrum team support your strategy?
Managementin Agile organization
Exercise: Where do they fit?
Product Owner Team
ScrumMaster Others
Product Management
Product Manager as Product Owner
Change!!!
✓ Product Manager is used to “throwing the project over the wall” and holding engineering responsible for meeting needs.
✓ Scrum puts this responsibility back on the Product Owner and customers through the inspect and adapt and the Sprint Review. Make decisions regarding ROI every Sprint end.
Project Management
Distributed Project Management
Avoid or Transform PMO?
http://blog.odd-e.com/yilv/2014/10/the-future-of-project-managers.html
People Management
Manager as ScrumMaster?
Experience reportfrom Nokia Siemens Networks
Fewer Managers?
• Probably yes, with flatter organization
• “My ideal is to have one supervisor for every one hundred workers” - Ishikawa
• My experience: 3-5 teams for experienced manager, 2-3 teams for new manager
Processes
New Product Development
Iteration(Processes around Scrum)
Scrum in a Nutshell
From Ready to Done
• Sprint, from Ready to Done
• What happens before Ready?
• What happens after Done?
Exercise: “Value Stream Mapping”
Before Ready
Is Release Planning predictive or adaptive?
Stop Contract Game
release N release N+1
repeat
cross-functional
Scrum feature
teams do all work
so that product
can potentially be
released each
iteration
a 2-4
week
iteration
true
release
potential
release
potential
release
continuous product development eliminates projects in
product development; there is simply an ʻendlessʼ series of
iterations, each of which is similar in activities and each of
which ends in a potentially shippable product increment
Product
Backlog
www.craiglarman.com
www.odd-e.com
Copyright © 2009
C.Larman & B. Vodde
All rights reserved.
Dual-track Scrum
Discovery Delivery
Opportunity backlog Product backlog
Discovery team Delivery team
Collaborative Self-organizing
Continuous Scrum flow
Getting Ready Getting Done
After Done
“Undone” work
Plan
ReviewP
lan
ReviewP
lan
ReviewP
lan
Review
Release?
Undone Undone Undone Undone
Plan
Review
Delay Risk
Release
Stabilization Sprint
“Undone” unit is a trap!
Extending “Done”
Planning
Analysis
Architecture, Infrastructure
Coding
Design Testing
Performance
User Acceptance
Pilot
Live
Continuous Delivery
• From sprint-based delivery to continuous delivery
• Customer impact assessment
Flow(Processes around Kanban)
Kanban in a Nutshell
Visualize
Limit WIP
Manage flow
Explicit polices
Feedback loops
Improvements
Kanban System
Maintenance
Exercise: Maintenance Models
Challenge with Scrum
Kanban in a Nutshell
Visualize
Limit WIP
Manage flow
Explicit polices
Feedback loops
Improvements
Continuous Improvement
At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly
Sprint Retrospective
Release Retrospective
Improvement Vision
• Emerging
- The most painful problems from the past
• Envisioning
- What is the perfection?
Rewards & People
Performance Evaluation
Exercise: Why Performance Evaluation?
Functions of Performance Evaluation
Feedback and Communication
Staffing and Development
Coaching and Guidance
Improvement
Compensation
Legal Document
Rewards
“I hate my work, I only do it for the money, i
don’t want to think for myself, indeed, I’d rather just do as little as I can.”
“I like to work, it’s part of my life, i want to do well,
and I will work hard if given the responsibility
and recognition I deserve.”
Video: Drive by Dan Pink
1.
2.
Compensation
• Make sure the promotion system is unassailable
• De-emphasize the merit pay system
• Tie profit sharing to economic drivers
Autonomy
Mastery
Purpose
Exercise: How does Agile help “drive”?
Improvement
Management By Objectives
“Improving systems and processes improves the performance of the organization.”
“Individual improvement initiatives are most effective when they are combined with serious efforts toward improving the work climate, systems, and processes.”
“Improving individuals’ performance improves organizational performance.”
“Remove barriers that rob people in management and in engineering of their right to pride in workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective”
W. Edwards Deming
Performance Metrics
Performance
• Speed
• Flexibility
• Value
• Quality
• Productivity
Metrics for Agile Adoption
• The ratio of fixing work to feature work
• Cycle time
• Number of defects escaping to production
http://www.estherderby.com/2011/10/metrics-for-agile.html
Measure Organizational Agility
• Frequency of releases (months)
• Stabilization time for releases
• # of customers on current release
• Time to get small change to customer
• Maintenance as % of development budget
• Total defects
• Customer satisfaction
• Employee satisfaction
Exercise: Leading vs. Lagging metrics
Measurement Dysfunction
Span of Control
Span of Influence
Team Goal
• Give all of the members of an Agile team the same performance goals
• “How did you help achieve the team goal?”
Values and Behaviors
Culture
• Behavior is the manifestation of an organization’s culture
• No matter how clearly the organization’s values are stated, it is the way that people act that defines the culture
Exercise: Vital behaviors
Development
Team Development Goals
• Baseline current team skill profile
• Define team development goals
• Align individual development goals
Individual Development Goals
• Set individual goals for individual development
• Make sure individual goals are aligned with team goals
Generalizing Specialist
• Avoid job titles and job descriptions
• Try simple general job descriptions
Manager as Coach
• Teach at work
• Toyota coaching Kata
• Mentor/Mentee dialogue
• Supported by A3 report
Staffing
Self-organizing into teams
Team Behaviors
Value highly the personal traits, characteristics, and behaviors of good team members
Team hiring
Reference