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Too many organizations are following the Scrum framework AND fail to learn, grow and achieve their desired results. Many continuously thrash by tweaking Scrum or their organization but rarely see significant positive impact or change. Others may achieve pilot success only to stagnate trying to replicate that success at the enterprise level. To achieve and sustain organizational agility, a completely different approach must be taken – it must be LED from the inside-out. This session will explore three organizations and their leaders who have thrived, sustained and grown their agility over 6 years from inside-out LEADERSHIP. That is, starting with their own personal leadership agility and organizational culture, they restructured their organization to BE agile. They are not “doing” Scrum AND they are extremely agile and winning!
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© 2013 Trail Ridge Consulting, LLC
Stop “DOING” Scrum !
BE agile
(a leadership guide)@petebehrens
© 2013 Trail Ridge Consulting, LLC
75 years
“The Power of Pull” (Basic Books, 2010)average life expectancy of companies in the 1937 S&P 500 Index
© 2013 Trail Ridge Consulting, LLC
“The Power of Pull” (Basic Books, 2010)average life expectancy of companies in the 1970’s S&P 500 Index
40 years
© 2013 Trail Ridge Consulting, LLC
“The Power of Pull” (Basic Books, 2010)average life expectancy of companies in the 2010’s S&P 500 Index
15 years
© 2013 Trail Ridge Consulting, LLC
Corporate Life Expectancy
1930 1950 1970 1990 2010
“The Power of Pull” (Basic Books, 2010)
15 years
75 years
40 years
© 2013 Trail Ridge Consulting, LLC
Corporate Agility
1930 1950 1970 1990 2010
Waterfall
RAD
Agile
Spiral
ComputersAssembly
Line
Lean
15 years
75 years
© 2013 Trail Ridge Consulting, LLC
Corporate Agility
1930 1950 1970 1990 2010
Agile
Assembly Line
WORLD OF CONTINUITY
15 years
75 years
WORLD OF DISCONTINUITY
© 2013 Trail Ridge Consulting, LLC
The World of Discontinuity
2010 IBM survey of more than 1,500 CEOs from 60 countries and 33 industries
CEOs identified creativity and agility
as the
top leadership competencies
© 2013 Trail Ridge Consulting, LLC
However
agility is elusiveThis presentation was given at the 2013 Mile High Agile Conference in Denver, CO.
I have include help text for those not attending to “hear my voice over” through the slides...
© 2013 Trail Ridge Consulting, LLC
Who am I?
1970 1980 1990 2000 2010
WaterfallRAD
Agile
agility
RUP
© 2013 Trail Ridge Consulting, LLC
Years0 1 2 3 4 5
Adopting Agility
InitialTraining & Coaching
Sustaining Agility
Rolling Agility
Thrashing Agility
Agility
© 2013 Trail Ridge Consulting, LLC
Adopting Agility
Why?
Years
Agility
0 1 2 3 4 5
Why is it that some organizations grow and thrive on agility while most plateau and lose their agility over time?
© 2013 Trail Ridge Consulting, LLC
What is Agility?
CULTURE
STRUCTURE
PROCESS
values
form
behaviors
Outside-In
Most agile adoptions leverage an “outside-in” approach. Starting with a process like Scrum or Kanban, they expose impediments within the organization.
© 2013 Trail Ridge Consulting, LLC
Years
Agility
0 1 2 3 4 5
“Outside-In” Adoption
Training & Coaching
Rolling Agility
Thrashing Agility
Agile doesn’t stick because this outside-in approach runs into systemic structures and values of the organization which don’t align to agility.
© 2013 Trail Ridge Consulting, LLC
What is Agility?
CULTURE
STRUCTURE
PROCESS
Inside-O
ut
values
form
behaviors
Taking an opposite approach - from the “inside-out”, leaders start with an understanding of their culture and build systems to support and sustain agility.
© 2013 Trail Ridge Consulting, LLC
Years
Agility
0 1 2 3 4 5
“Inside-Out” Adoption
Sustaining Agility
With an “inside-out” approach, agile sticks because it builds on values and creates an organizational architecture to support agility - much like a software architecture supports scalability and growth.
© 2013 Trail Ridge Consulting, LLC
Culture is a prevalent problem identified in the latest state of agility survey (2013) by Version One.
© 2013 Trail Ridge Consulting, LLC
75% of Organizations are
“Doing” Scrum
© 2013 Trail Ridge Consulting, LLC
© 2013 Trail Ridge Consulting, LLC
© 2013 Trail Ridge Consulting, LLC
© 2013 Trail Ridge Consulting, LLC
© 2013 Trail Ridge Consulting, LLC
What do we know?
✓We live in a discontinuous world
✓ CEO’s want creativity and agility
✓Most organizations are “Doing” Scrum
✓Organizational agility is hard
✓Organizational agility requires culture
© 2013 Trail Ridge Consulting, LLC
Agility Dimensions
Clarity to determine what
to do
Physical & Technical ability
to change
Executional competence to deliver
© 2013 Trail Ridge Consulting, LLC
A Language for Culture
© 2013 Trail Ridge Consulting, LLC
Competing Values Framework
CREATECOLLABORATE
CONTROL COMPETE
Do things together
Do things right Do things fast
Do things first
Let’s start with an understanding of culture. Using the Competing Values Framework (CVF) as a model to understand the values and norms of what makes an organization tick.
© 2013 Trail Ridge Consulting, LLC
Collaborate / Clan Culture
Family Team
PeopleFocused
Interactions
Sacrifice
RelationshipPower
Diverse
Communication
Development
© 2013 Trail Ridge Consulting, LLC
Collaborate / Clan Culture
Collaboration cultures are personal cultures who value the relationships and people over the process and systems. They believe teams are stronger when they work together.
© 2013 Trail Ridge Consulting, LLC
Create / Adhocracy Culture
Organic
FreeFlowing
Visionary Transformation
Innovation Independent
ExpandingIdeas
Cultivation
© 2013 Trail Ridge Consulting, LLC
Create / Adhocracy Culture
Creation cultures are personal and focused on growth of people and of the world beyond their organization. They are quite fluid and organic structures and value new ideas, learning and growing.
© 2013 Trail Ridge Consulting, LLC
Compete / Market Culture
University
CustomerFocus
Excellence
Intense
Competitive
MarketShare Aggressive
Visionary
© 2013 Trail Ridge Consulting, LLC
Compete / Market Culture
Compete cultures are impersonal and focused on the work products or research. It is less about the people and more about what they accomplish. They are intense and competitive environments.
© 2013 Trail Ridge Consulting, LLC
Control / Hierarchy Culture
Top-down
TightDelegation
RealisticMethodical
Analytical
Hierarchy Systems & Processes
Efficient
© 2013 Trail Ridge Consulting, LLC
Control / Hierarchy Culture
Control cultures tend to be more impersonal and focused on the systems and processes to create predictability and performance through repeatability.
© 2013 Trail Ridge Consulting, LLC
Competing Values Framework
MagnitudeVelocity
CREATECOLLABORATE
CONTROL COMPETE
FastChange
VELOCITYSome dimensions expressed in the model in dealing with change, collaborate cultures focus on long-term while compete cultures change quickly.
Long-TermChange
© 2013 Trail Ridge Consulting, LLC
Competing Values Framework
MagnitudeVelocity
CREATECOLLABORATE
CONTROL COMPETE
TransformationalChange
IncrementalChange
FastChange
MAGNITU
DE
VELOCITY
In addition, control cultures seek small and incremental changes while create cultures transform through big changes.
Long-TermChange
© 2013 Trail Ridge Consulting, LLC
Competing Values Framework
MagnitudeVelocity
ExternalPositioning
InternalMaintenance
CREATECOLLABORATE
CONTROL COMPETE
The cultures on the left focus more internally on people and processes.
The cultures on the right focus on ideas, markets and solutions.
© 2013 Trail Ridge Consulting, LLC
Competing Values Framework
MagnitudeVelocity
ExternalPositioning
InternalMaintenance
IndividualityFlexibility
StabilityControl
CREATECOLLABORATE
CONTROL COMPETE
The cultures on the bottom focus more on systems.
The cultures on the top focus more on people.
© 2013 Trail Ridge Consulting, LLC
Leading Agility “Inside-Out”
Understand and align the culture
Build flexibility into the organization
Focus on learning& expect change
© 2013 Trail Ridge Consulting, LLC
McKinsey IT Create Culture
People
Learning
Cultivation
Growth
CREATEDo things first
© 2013 Trail Ridge Consulting, LLC
McKinsey IT Create Culture
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
Create
Com
pete
Col
labo
rate
Con
trol
This is a create cultural signature of a very agile company. They have been agile for over 6 years.
© 2013 Trail Ridge Consulting, LLC
McKinsey IT - Organizational Glue
Create
Com
pete
Col
labo
rate
Con
trol
Commitment to innovation and development.
There is an emphasis on being on the cutting edge.
Loyalty and mutual trust.
Commitment to this organization runs high.
Formal rules and policies.
Maintaining a smooth-running organization is important.
Emphasis on achievement & goal accomplishment.
Aggressiveness and winning are common themes.
One of the dimensions in the model looks at what ties the organization together - you can see here that they are very forward thinking.
© 2013 Trail Ridge Consulting, LLC
McKinsey IT Results
In addition to being agile, they are succeeding across many business metrics.
© 2013 Trail Ridge Consulting, LLC
McKinsey IT Results
Years
Rel
ease
Dur
atio
n
2007 2008 2009 2010 2011 2012
12+ months
1 month
3 months
A key metric they measure is how quickly they can productize functionality for their business - before they began their agile journey, it took over 1 year to deliver functionality - now they average 1 month.
© 2013 Trail Ridge Consulting, LLC
McKinsey IT Transformation
Years
OrganizationalAgility
2007 2008 2009 2010 2011 2012
IT -> Service
GlobalIntegration
WorkingSoftware
SmallTeams
No ScrumMaster
Role/TitleChanges
RemovedQA
Support2.0 3 months
12+ months
1 month
Release Duration
To accomplish this, they have had many significant transformational organizational changes to their roles, responsibilities, team structures, and global alignment. These are signatures of a create culture.
© 2013 Trail Ridge Consulting, LLC
Be Agile
McKinsey IT is not “DOING” Scrum
they are “being” agileand they are evolving and growing
© 2013 Trail Ridge Consulting, LLC
Salesforce.com Compete Culture
Competitive
Never Satisfied
Be the “Best”COMPETEDo things fast
© 2013 Trail Ridge Consulting, LLC
Salesforce.com Compete Culture
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
Create
Com
pete
Col
labo
rate
Con
trol
This is a compete cultural signature of another very agile company. They have been agile for over 7 years.
© 2013 Trail Ridge Consulting, LLC
Salesforce R&D - Strategic Emphasis
Create
Com
pete
Col
labo
rate
Con
trol
Acquiring new resources & creating new challenges.
Trying new things and prospecting for opportunities are valued.
Human development.
High trust, openness, and participation persist.
Permanence and stability.
Efficiency, control and smooth operations are important.
Competitive actions and achievement.
Hitting stretch targets and winning in the marketplace are dominant.
Another dimension in the CVF model looks at what strategic emphasis - you can see that competition is critical to their external and internal world.
© 2013 Trail Ridge Consulting, LLC
Salesforce.com
2001 2002 2003 2004 2005 2006 2007
Features Deliveredper Team
Days betweenMajor Releases
2008 Scrum Gathering - Steve Greene
Prior to their agile transition in 2006, they struggled with delivery as their organization and clients grew.
© 2013 Trail Ridge Consulting, LLC
Salesforce.com Impact
Features Deliveredper Team
Days betweenMajor Releases
2008 Scrum Gathering - Steve Greene
2001 2002 2003 2004 2005 2006 2007
Since that time, they have turned around and have been one of the top performing companies in the world.
© 2013 Trail Ridge Consulting, LLC
Their own approach
“All-in” fast
Be the “Best” @ agile
Salesforce.com Approach
As a compete culture, they took the initiative to be the “best” at agile. They developed their own approach, R&D went “all-in” through a rapid transition (like pulling off a bandaid), and they have never looked back.
© 2012 Trail Ridge Consulting, LLC
Balanced Team PowerRedefined Roles
Everything thru a team
Salesforce.com Approach
Focus on “What”
Focus on “How”
Balanced MatrixIn addition, they made a subtle, but significant shift in the balance of power/responsibilities in their leadership - their engineering managers focused on coaching over directing - allowing the teams to better self-organize on the work.
© 2013 Trail Ridge Consulting, LLC
Salesforce.com Results
2006 2008 2010 2012
R&DAgility
ITAgility
Tech OpsAgility
MarketingAgility
Every release - 3 per year Has been delivered on time!300 people
1,800 ppl
$21.90 stock price
$163 sp
Their compete culture drives them to be the best in the world, not only at delivering solutions, but in how they do it - and their growth has shown it.
© 2013 Trail Ridge Consulting, LLC
Be Agile
Salesforce.com is not “DOING” Scrum
they are “being” agileand they are evolving and succeeding
© 2013 Trail Ridge Consulting, LLC
Leading Agility “Inside-Out”
Understand and align the culture
Build flexibility into the organization
Focus on learning& expect change
© 2013 Trail Ridge Consulting, LLC
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
Current
Desired
DominantCharacteristics The organization is...
• A very controlled and structured place
• Formal procedures generally govern what people do
• A very dynamic entrepreneurial place
• People are willing to stick their necks out and take risks
Most organizations find a gap between their current and desired cultures. The CVF model maps this and provides leadership tools to move forward in a more agile fashion.
© 2013 Trail Ridge Consulting, LLC
Cultural Gap AnalysisHere is an example leadership analysis of the gaps in the create and control cultural dimensions - in this example, looking at ways to increase create and decrease control.
© 2013 Trail Ridge Consulting, LLC
Agile Leadership
CatalystLeadership
WORLD OF UNITY, COLLABORATION,
INTERDEPENDENCY
WORLD OF DUALITY, COMPETITION,SEPARATION
HeroicLeadership
OR ANDThe key to CVF is the value created by holding both competing values simultaneously - (e.g. we do not throw out control values as we add create values - we balance them)
© 2013 Trail Ridge Consulting, LLC
Competing: Collaborate & Compete
Com
pete
Col
labo
rate
Let’s look at a couple of competing leadership values - in this case collaborate and compete.
© 2013 Trail Ridge Consulting, LLC
Leadership: Intense Collaboration
The leader speed and urgency to the exclusion of teamwork and collaboration. The leader focuses exclusively on immediate results and ignores long-term outcomes.
The leader emphasizes teamwork and collaboration to the exclusion of speed and urgency. The leader overemphasizes participation and empowerment and is indecisive
Negative
Negative
The leader emphasizes teamwork and collaboration
The leader emphasizes speed and urgency
Positive
Positive
As competing values, both collaborate and compete have positive opposites - however, taken too far, each one can become a negative characteristic.
© 2013 Trail Ridge Consulting, LLC
Competing Values Leadership: Intense Collaboration
The leader emphasizes teamwork and collaboration to the exclusion of speed and urgency. The leader overemphasizes participation and empowerment and is indecisive
The leader speed and urgency to the exclusion of teamwork and collaboration. The leader focuses exclusively on immediate results and ignores long-term outcomes.
Intense UnityRapid Alliances
Intensity &Rapidity
Unity &Alliances
The leader emphasizes speed and urgency
The leader emphasizes teamwork and collaboration
NEGATIVE
POSITIVE
While many companies (or leaders) prefer a single focus, the most value is generated from integrating the opposites - in this case intense collaboration.
© 2013 Trail Ridge Consulting, LLC
Competing Values: Create & Control
Create
Con
trol
Let’s look at a one other example of competing leadership values - in this case control and create.
© 2013 Trail Ridge Consulting, LLC
Leadership: Responsible Risk-Taking
Positive
Positive
Negative
Negative
The leader emphasizes innovation and risk-taking
The leader emphasizes predictability and stability
The leader’s ungrounded future-mindset overlooks operationalizing opportunities.
The leader’s over-conformity stunts growth and misses opportunities.
Again, each value has an opposite positive - and negative if taken too far.
© 2013 Trail Ridge Consulting, LLC
Value: Responsible Risk-Taking
The leader emphasizes predictability and stability to the exclusion of innovation and risk taking. The leader’s over-conformity stunts growth and misses opportunities.
The leader emphasizes innovation and risk-taking to the exclusion of predictability and stability. The leader’s ungrounded future-mindset overlooks operationalizing opportunities.
Sustainable IngenuityReliable Courage
Ingenuity & Courage
Sustainability & Reliability
The leader emphasizes innovation and risk-taking
The leader emphasizes predictability and stability
NEGATIVE
POSITIVE
The key is in the balance.
© 2013 Trail Ridge Consulting, LLC
Cultural Visioning
Competence
Create
Control
Here are some cultural modeling samples from leadership workshops - in this case looking at cultural change.
© 2013 Trail Ridge Consulting, LLC
“Inside-Out” Agile Leadership
enables
TeamsA Leader’s focus on
Cultureto be
Successful
© 2013 Trail Ridge Consulting, LLC
Adopting Agility
Why?
Years
Agility
0 1 2 3 4 5
Companies that start with an understanding of culture, and build their organizational systems to support agility will out perform, out maneuver, and out last their competition.