Srinath Ramakrishnan

CSP, CSM, PMI-ACP, ICP-Agile Coaching, PMP

Purpose : Make money

for shareholders

Managers act as

―Controllers‖ of

individuals

Work is coordinated

by ―hierarchical bureaucracy‖

Main value is ―efficiency‖

Managers communicate

through―directives‖

Traditional Management

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Traditional management ◦ systematically kills all the creative things in organizations such

as Innovation and knowledge management

◦ Limits the engagement and commitment of the employees

◦ Minimizes attention to necessary people issues like consistent communication and emotional reactions to change.

―Only one in 5 workers are fully engaged in his or her work‖

Source : Deloitte's Center for the Edge Shift index

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Work has shifted from semi skilled to knowledge work

Engagement of the workforce

How customers were treated

Managers have to stop doing things topeople and start doing things with people

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―Traditional notions of management are great if you want compliance. If you want engagement, self direction works better.‖

http://www.yesware.com/blog/2013/02/20/dan-pink-modern-selling-strategies

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Failing FirmsDispirited Employees

Frustrated Customers

What we have now

What we need

Thriving FirmsDeep job

satisfactionDelighted customers

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It‘s a set of values, principles and practices that spark the passion, the excitement, and the insights of the people who work there

It ignites delight in those for whom the work is done.

It happens to be much more productive than traditional management.

―Radical management is a way of managing that can inspire—simultaneously—extraordinary productivity, continuous innovation, deep job satisfaction and client delight‖

https://www.americanexpress.com/us/small-business/openforum/articles/creating-a-company-culture-of-joy/

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It is congenial to:• knowledge management

• innovation

• high-performance teams

• leadership storytelling

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Goal : Delighting customers

Role: From Controller to

Enabler

Accountability: Bureaucracy to

Dynamic Linking

Values : Radical Transparency

Communication: From Command to Conversations

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―There is only one valid definition of business purpose: to create a customer. It is the customer who determines what a business is. It is the customer alone whose willingness to pay for a good or for a service converts economic resources into wealth, things into goods. . The customer is the foundation of a business and keeps it in existence.‖

http://www.cgu.edu/images/drucker/peter_drucker/pages/PeterDrucker004_jpg.htm

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Providing a continuous stream of additional value to customers and delivering it sooner

the purpose of the firm shifts from making money for shareholders to client primacy. The firm makes money, but this is the result of delighting the customer, not the goal ◦ Shift from shareholder capitalism to customer capitalism.

◦ shift from inside-out (―You take what we make‖) to outside-in (―We seek to understand your problems and will surprise you by solving them‖).

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Identify your primary clients

Delight primary clients by meeting their unrecognized desires

Explore the possibility of delighting more by offering less

Focus on People not Things

Give the people doing the work a clear line of sight to the people for whom the work is being done

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Net Promoter Score - Fred Reichheld◦ How likely is that you would recommend out product or

service to your friends or colleagues?

http://www.netpromotersystem.com/about/measuring-your-net-promoter-score.aspx13

Traditional management was designed to produce consistent performance from largely non-skilled workers.

Not suited for innovation Bureaucracy can produce outputs not generate

outcomes Shift was needed from a controller of individuals

to enabler of self organizing teams◦ By empowering workers to facilitate collaboration, rapid

learning and innovation◦ By being accountable to those doing the work and for

removing any impediments that are hindering the work.

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◦ Organize work in self organizing teams

◦ Keep teams small

◦ Be patient

◦ Hold teams accountable

◦ Recognize performance

◦ Remunerate fairly

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The group is given responsibility – the team has the ball

The team is working together – focused on solving the problem – taking the ball whole length of the field

Ordinary lay people often make better decisions than experts do

Diverse groups of problem solvers outperformed groups of likeminded individuals

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“ In resolving complex problems, ordinary people make better decisions than experts do. That is because cognitively diverse group of ordinary people do better than groups of like minded experts‖

http://www.amazon.in/The-Difference-Diversity-Creates-Societies-ebook/dp/B003TFELFI/ref=sr_1_8?ie=UTF8&qid=1407152209&sr=8-8&keywords=scott+page

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Articulate a compelling purpose in terms of delighting clients

Consistently communicate a passionate belief in the worth of the purpose

Transfer power to the team for accomplishing team purpose

Make the transfer of power conditional on the team‘s accepting responsibility to deliver

Recognize the contribution of people doing the work

Make sure remuneration perceived is fair Consistently use tools and techniques that create

and sustain self organizing teams18

Bureaucracy is◦ inherently demotivating

◦ inhibits innovation

◦ not agile enough to delight customers in the modern workplace

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Organize work in short cycles or iterations

Team estimates how much time work will take

Team decides how much work it can do in an iteration, and how to do it

Team measures its own performance

Define work goals through user stories

Systematically remove impediments

Conduct retrospective reviews

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Toyota‘s goal was to go ―from ‗Order‘ to ‗Cash‘ as fast as possible at a sustainable pace to deliver things of value to the customer in shorter and shorter cycle times … while still achieving highest quality and morale levels‖.

Quadrant Homes in US sells the home before building it and involves the buyer iteratively in the design and building of the homes. The customer can choose from multiple footprints and floor plans.

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Focus on stakeholders and what is of value to them

Consider how to deliver more value sooner and cheaper

Decide as late as responsibly possible what work is to be included as part of each iteration

Find out more about the client‘s world◦ Jeff Patton – Grocery Store

◦ Toyota Lexus – Teams sent to California beachfront

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The goal shifts from making money for the shareholders – to a broader focus on the values that will grow the business by generating innovation and customer delight.

radical transparency◦ Display real time information◦ Set priorities at the beginning of each cycle◦ Embrace two sided accountability

commitment to continuous improvement.◦ Embrace continuous improvement◦ Align the team‘s interests with the organization◦ Share, rather than enforce, improved practices

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Have the team estimate how much time it would take to complete the task

Let the team decide how much work to undertake

Establish a clear line of sight from the team to the client

Align the team‘s interest to those of the organization

Embrace the need for continuous self improvement

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None of the above shifts will be sustained if management communicates in the traditional mode of top-down commands, one way messages that dispirit knowledge workers.

Interactive communication is characterized by◦ Authentic narrative

◦ Open ended questions and conversations

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Use authentic story telling to inspire a passion for delighting clients

Deploy user stories as catalysts for conversations

Practice deep listening

Give recognition for identifying impediments

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Traditional management Radical management

Delight clients (& stakeholders)

Purpose of of the firm

Produce goods and services

How managers communicate

Top-down: Tell people what to do

Interactive: stories, questions, conversations

How work is structured

Bureaucracy & hierarchy: Self-organizing teams

Impact on employees

Only 20% fully engaged

THINGS

High productivity & continuous innovation

PEOPLE

How work is organized

Single big plan: Client-driven iterations

Transparency Tell people what they need to know

Radical transparency:

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Where the work is best done alone.

E.g. writing novels, composing symphonies or being a lighthouse keeper.

Where the work has a small knowledge component:

Not suitable for traditional organizations with mainly unskilled labour

Where a public sector organization must be neutral e.gdispensation of justice is required to be neutral for all parties.

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Innovative practices at the workplace

http://www.amazon.com/Joy-Inc-Built-Workplace-People/dp/1591845874

https://www.americanexpress.com/us/small-business/openforum/articles/creating-a-company-culture-of-joy/

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Innovative practices at Menlo Innovations

• Pairing• High Tech Anthropology• open and collaborative workspace• high speed voice technology• daily stand up• 40 hour work weeks• pets and babies at work• making mistakes faster

• doing the simplest thing that could possibly work• origami project mgmt• work authorization boards; story cards, yarn, and stickers• estimation without fear• integrated quality advocacy• test-driven development

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Research what makes users successful in their interactions with an application.

―The only way to understand what makes a new system successful is to study and observe the potential end users in their native environment‖

Gather requirements by designing potential solutions and checking design assumptions with representative users

Techniques used◦ job shadowing◦ Personas ◦ use cases◦ hand-drawn screen mock ups◦ workflow assessments, ◦ high-level screen designs

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Innovative way of hiring people

3 basic principles◦ Drop regular job interviews

◦ Involve existing team

◦ Personality matters

Goals for recruiting◦ Don‘t increase headcount, increase team‘s output

◦ Get new hires up to speed quickly

◦ Continue work while interviewing

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1. First interview◦ All candidates given an overview of XP

◦ Evaluated not on programming skills but ability to think critically, ask good questions and make their partner feel good

◦ Given 3 twenty minute exercises – after which candidates sorted based on team work skills

◦ 15 of those with the strongest team work skills invited back for second interview

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2. Second interview ◦ work on actual Menlo tasks by pairing with an existing

employee

◦ Assess technical skills and the candidate‘s fit at Menlo

◦ Candidate gets a feel of what work is being done

3. Make the decision◦ Ranking based who would make great pairing partners

◦ Letters of offer released to top 8 candidates

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http://baohouse.net/post/8076471854/tearing-down-the-cubicle-walls-the-case-for-open-space 35

Set in a big ―open factory‖ – no walls, offices, cubes or doors

Space can be reconfigured regularly as projects end, new projects begin, or current projects change size.

Pull-down power and network drops from the ceiling

counting on teams overhearing one another - exchange of knowledge across projects is a big factor in their success

Client discussions also take place in these open spaces

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https://www.americanexpress.com/us/small-business/openforum/articles/creating-a-company-culture-of-joy/

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Two heads, two hearts, four hands, one computer Pairing

◦ fosters a learning system◦ builds relationships◦ eliminates towers of knowledge ◦ simplifies on boarding of people ◦ flushes out performance issues

Pairs assigned and switched every week Lunch ‗n Learn

◦ Deals with a topic related to client work◦ Build self confidence to present before others

Give the team permission to learn through pairing

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http://www.amazon.in/The-Leaders-Guide-Radical-Management/dp/0470548681/ref=sr_1_1?ie=UTF8&qid=1407153987&sr=8-1&keywords=radical+management

http://www.amazon.in/Joy-Inc-Built-Workplace-People/dp/1591845874/ref=sr_1_1?ie=UTF8&qid=1407154016&sr=8-1&keywords=joy+inc

http://www.forbes.com/sites/stevedenning/2011/03/07/measuring-what-matters-from-outputs-to-outcomes-part-3/

http://www.forbes.com/sites/stevedenning/2011/02/27/measuring-what-matters-from-outputs-to-outcomes-part-2/

http://stevedenning.typepad.com/steve_denning/2010/11/the-deathand-reinventionof-management-a-draft-synthesis.html

http://www.forbes.com/sites/stevedenning/2011/02/25/measuring-businesss-new-bottom-line-customer-delight/

http://positivesharing.com/2006/09/extreme-interviewing/ http://www.menloinnovations.com/our-method/high-tech-anthropology http://www.infoq.com/articles/agile-team-spaces

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Thank you

Email:

Twitter feed:

ramakrishnan.srinath@gmail.com

@rsrinath

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