Agile Leadership Scaling Agility From Projects to Organizations

Transcription

1 #project #process #change Agile Leadership Scaling Agility From Projects to Organizations PMI Philippines Chapter - Vis/Min Region Technical Session Cebu, Saturday, November 10, 2018 from 4:25pm-5:35pm next level consulting APAC 8 Eu Tong Sen Street #14-94 Singapore office-singapore@nextlevelconsulting.com

2 #project #process #change Introduction The state of agility

3 Organizations are ready to scale agility page 3

4 72% of organizations have increased their agility in the last five years Source: PMI Pulse of the Profession 2017 page 4

5 Agility is a Maturity Journey Maturity Levels Stepping Stones Fully agile Organization Hybrid Organization Scaling Isolated Experimentation Traditional Organization Agile strategy Agile performance management Full scaling Agile resourcing Agile planning Agile governance Agile leadership Agile mindset formation Agile transformation planning Agile experience workshop Agile pilots Agile team coaching page 5

6 Currently, we see most activities on levels 2 and Scaling Examples: Non-IT product-development Leadership workshops Definition of agile values Isolated Experimentation Examples: Scrum pilots in IT Working Out Loud Groups 1 Traditional Organization Drivers: Pilot successes have established the credibility of agility and organizational interest for a wider application is growing Scalability and resource issues require leadership support Digitalization and other technology investments have created new flexible execution capabilities that are not equally met by organizational flexibility, an agile mindset needs to be developed Drivers: Market pressure External success stories Increasing industry adoption page 6

7 Please vote: What is your agility maturity level? page 7

8 #project #process #change The need for agility

9 Agility Drivers So many possibilities Technology & Society Change Increases the risk of disruption Growth Mindset VUCA Environment Challenges old ways of managing Organizations Establishes the need for higher agility Organizational Agility We cannot cope Provides new ways of working Agile Methods Challenge old thinking page 9

10 The business environment is increasingly characterized by conflicting goals Products: Affordable AND high-quality Processes: Fast AND precise Manufacturing: Efficient AND safe IT: Standardized AND Flexible page 10

11 CEOs are extremely concerned about the availability of key skills and the speed of technology change Source: 20 th global CEO study, PwC, 2017 page 11

12 Technology change is expected to accelerate further Source: 20 th global CEO study, PwC, 2017 page 12

13 These concerns are not unfounded as the average lifespan of a company in the S&P 500 index has decreased from 61 years in 1958 to just 18 years MIT Technology Review Source: page 13

14 If the rate of change outside exceeds the rate of change inside, the end is near. Jack Welch page 14

15 Please vote: How is your business positioned? page 15

16 #project #process #change Challenging Causality

17 VUCA forces us to shift our way of working from causality to discovery, from being predictive to adaptive Old World Current Situation Strategy Project 1 Project 2 Project 3 Project 4 Vision CAUSALITY 1.Analyse 2.Plan 3.Execute What is right can be determined upfront VUCA World Current Situation Terrorist attack Vision Economic crisis Agile World Current Situation Values Purpose DISCOVERY 1.Act 2.Sense 3.Respond What is right can be determined in hindsight only page 17

18 Causality is embedded in most of our traditional systems and thinking Plan Do Goal School: Learn Practice High grades Education: Good school Learn well Good job Retirement: Invest Save Age gracefully Workforce: Capacity Hire Execute Business Planning: Target Implement Revenue Performance: Objectives Work Variable Pay page 18

19 Summary & Conclusion: Removing causality challenges traditional command & control management to change to the framing of context Plan Do Goal Current Situation Purpose Control Command Framing of context Trust Support Inspire page 19

20 #project #process #change Understanding and Managing Complexity

21 Several frameworks exist that help us to understand and manage complexity VUCA: Management framework for high complexity Cynefin: Decision-making framework Stacey Matrix: Decision-making framework OODA Loop: An example for autonomous teams page 21

22 VUCA describes conditions of unclear nature and development Situation Situation Knowledge of Situation: How well do we understand the situation? Predictability of Actions: How well can we predict the impact of your actions? page 22

23 Predictability of Actions The VUCA elements differ on the knowledge of the situation and the predictability of actions Low High Complexity Ambiguity Volatility Uncertainty Low High Knowledge of Situation page 23

24 VUCA poses managers with several decision making dilemmas Dilemma 4: Make a decision, become a true leader and expose yourself Dilemma 3: Delegate more to enable agility and lose control Situation Situation Dilemma 2: Take fast actions to trump the competition and fail Dilemma 1: Admit that you dont know and ask for help and lose face page 24

25 Predictability of Actions VUCA requires a different style of leadership Low High Complexity requires Understanding Ambiguity requires Clarity Volatility requires Agility Uncertainty requires Vision Low High Knowledge of Situation page 25

26 The Cynefin framework advises decision making approaches for different environments Fluid =VUCA world Causal = Old world Source: page 26

27 Agreement Disagreement In times of uncertainty agreement needs to be reached through co-creation and consulting to avoid chaos 2. Selling buy-in strategies, change agents, persuasion, negotiation, real-time strategic change development 1. Telling rational decision making, classic project management, organizational development 3. Consulting scenarios, leadership, intuition, learning organizations, systems thinking 4. Chaos avoidance, disintegration 5. Co-creating methods and approaches that maximize the management of knowledge, resources and the utilization of passion and responsibility Decision Making Zones 1: Rational - organizations are built here and continuously optimized to stay there. 2+3: Complicated - is necessary when uncertainty or politics interfere. 4: Impossible - insufficient information. 5: Complex - requires new forms of collaboration and communication to gain broader insights. Certainty Uncertainty Source: Stacey RD. Strategic management and organizational dynamics: the challenge of complexity. 3rd ed. Harlow: Prentice Hall, 2002 from GP-Training and Rick on the road page 27

28 OODA was developed by Colonel John Boyd > January 23, 1927 March 9, 1997 > USAF Colonel > Possibly world s greatest fighter pilot, literally wrote the book > Military strategist > Business strategist > Creator of the OODA Loop in the 1950ies page 28

29 OODA defines an agile edge execution process OBSERVE ORIENT DECIDE ACT Unfolding Circumstances Implicit Guidance & Control Implicit Guidance & Control Outside Information Unfolding Interaction With Environment Unfolding Interaction With Environment page 29

30 Quotes about OODA The proper mindset is to let go a little, to allow some of the chaos to become part of his mental system, and to use it to his advantage by simply creating more chaos and confusion for the opponent. He funnels the inevitable chaos of the battlefield in the direction of the enemy. Robert Greene in OODA and You page 30

31 Summary & Conclusion > VUCA is there to stay > Organizations need to adapt to it > It requires a different type of leadership that instills > Openness > Discovery > Cooperation > Learning page 31

32 #project #process #change Agility Definition

33 Organizational Agility is the ability of organization to adapt to external change Disruption Danger Foresight See it coming Know what is going on Face reality What we realize Success Factor Change Organization AGILITY Execution Faster decisions Flexible resources Scalable capacity What we do AGILITY Adaptation Goal-attainment Impact Swift Reactions Powerful Responses Sustainable Results What we achieve page 33

34 Agility Areas: getting from insights to results quickly Change Organization Foresight Execution Impact Market Strategy Structure Systems Speed Customer Insights Business Competitor People Culture Partners Purpose Quality Results Sustainability page 34

35 Example: Digitalization Impact Change Organization Foresight Execution Impact Digitalization Customer Market Insights Business Competitor Strategy People Structure Culture Partners Systems Purpose Quality Speed Results Sustainability Plus: Technology-to-technology impacts e.g. Digitalization to Security page 35

36 Project Portfolio Management drives organization agility by connecting strategy with operations and foresight with innovation Change Agility Organization Strategy Foresight Project Portfolio Management Innovation Operations page 36

37 Portfolio Management: an evolution with the potential for a revolution Strategy Project Portfolio Management Top-down revolution: Of transparency, trust, executive alignment and execution Operations Bottom-up evolution: of project maturity from project management excellence over PMObased standardization page 37

38 Summary & Conclusion: Executives need to lead the agile transformation > 87% view C-suite executives as the biggest proponents of organizational agility > The C-suite plays an integral role in driving adoption of agility across the enterprise: 35% of [executives] view the CEO as responsible for organizational agility Source: Forbes Insights report page 38

39 #project #process #change Organizational Implications

40 Previously, structures were changed when needed to increase flexibility ies 1990ies Knowledge Society Information Society Network Society Change pressure Change pressure Change pressure Reorg Reorg Reorg Functional hierarchy Matrix organization Project organization Flat hierarchy page 40

41 Internal tensions limit value delivery page 41

42 Now, higher demands of organizational agility forces structure itself to become flexible ies 1990ies 2000ies Knowledge Society Information Society Network Society 4th Industrial Revolution Change pressure Change pressure Project organization Reorg Flat, stable hierarchy One last reorg Agile organization Properties Self-organizing Team-oriented Edge execution Customer-focused Lean management page 42

43 Organizational execution has moved from being vertical to increasingly horizontal Efficiency Cost reduction Automation Integration Customer-orientation Results page 43

44 Process Agility breaks down silos COMPANY CUSTOMERS Function, Silo R&D Sales Support Business Unit R&D Sales Support Product Line R&D Sales Support Country R&D Sales Support page 44

45 Agility is enabled by autonomous teams Properties: Customer-focused Process or project-based Cross-functional Diverse Organizational Framework & Guidance Organizational Support: Trust Empowerment: Delegation Enablement: Resources Integration page 45

46 Example: The Spotify Model page 46 46

47 Resources & Support Functions Example: a projectized organization centered around portfolio management Project-based organization HR Procurement IT Legal Finance Engineering Executive Management Project Project Enterprise Portfolio Management PMO/PPM Project Project Projects Project Project Operating Principles Direct Customer-engagement Most senior roles lead projects Functions supply resources Careers through projects Examples: ANZ ING Zappos (Holacracy) page 47

48 Hybrid operation Bi-modal organization Operating Principles Direct Customer-engagement Most senior roles lead projects Functions supply resources Careers through projects Mode 1: Operation Mode 2: innovation Examples: Huawei, shipping company (IT) Osram, SEW-Eurodrive (production) K-Bank (organization) page 48

49 The future organization is flexible Today Future Structure Hierarchical functions Projects, Squads, Teams, Shared Services Teams & Projects Formed slowly over time Assemble and stop quickly Jobs & Roles Job descriptions, job levels, job titles Assignments, tasks, expert roles Managers Own teams and people s careers Manage projects and coach people Careers Influenced by managers Transparent marketplace Assignment Workforce Planning People are assigned based on skills and work on multiple teams Rewards By level, tenure, experience By outcomes, reputation, collaboration Culture Inclusion, Sustainability, Diversity Citizenship, Collective Thinking, Shared Values page 49

50 Managers will migrate to senior executive and frontline manager roles Senior Executives: provide context Middle Management Frontline Managers: integrate and support teams, influencing behaviors e.g. as coaches and product owners page 50

51 Summary & Conclusion: >Structure needs to become fluid in order for organizations to become agile > Several organizational models exist that can be adopted and customized > Leaders need to proactively shape the agile transformation > Autonomous customer-oriented teams are the key concept to drive agility >Autonomous teams require a supportive organizational context that need to be provided by management >Managers are more important than ever but must work proactively on finding new roles and responsibilities to continue to add value page 51

52 #project #process #change Individual Agility Transformation

53 Individual Agility Transformation Process 2. My Mindset Culture Values Principles Market Resources Vision Strategy 1. My Situation My agility 3. My Toolset Frameworks Methods Tools Scale 4. My Implementation Results Priorities Execution Learning Recommendations: Don t follow others Start small and where it makes most sense Assess constantly as you scale up page 53

54 Iterative implementation for scalability (agile journey) 3. My Toolset 4. My Implementation 2. My Mindset Sclability 1. My Situation Iteration 1 Iteration 2 Iteration 3 page 54

55 Individual Agility Examples Implemented project management as core capability to empower and enable customer-facing teams to create customized products Uses 14 leadership principles to guide self-regulating execution, customer-orientation, ownership, trust, innovation, and learning Adopted process organization fully owned by tech families to rapidly, organize, prioritize, deliver and align service innovations Implemented tri-modal IT-model separating data, infrastructure and front-end responsibilities to develop customer-centric solutions Shifts product design & development to project teams responsible for co-creation in direct interaction with customers page 55

56 Leadership Principles 1. Leaders are right, a lot 2. Bias for action 3. Customer obsession 4. Deliver results 5. Dive deep 6. Ownership 7. Earn trust 8. Frugality 9. Have backbone, disagree and commit 10. Hire & Develop the best 11. Insist on the highest standards 12. Invent & Simplify 13. Learn and Be Curious 14. Think Big page 56

57 Summary & Conclusion >Agility needs to be defined individually >Become agile is agile in itself >Start quickly, learn and evolve page 57

58 #project #process #change Developing an agile culture

59 Mindset, Values and Principles - Definitions Mindset: core beliefs and mental models Values: what is important (e.g. trust) Principle: instruction on how to implement a value (e.g. Do not lie) Practice (or method): applied principle that defines how to do something Tool & Processes: support and automate practices page 59

60 #project #process #change Mindset

61 Fundamental Mindsets develop from childhood as phases that later become modes > Me Mode: Focus on your own needs and their realization. Up to adulthood. > We Mode: Belonging based on the right social behavior. > Right Mode: Searching for truth. Only what is right is good. Black/white thinking. Based on own competencies and strengths. > Effective Mode: Pursuit of own values in the context of society. Self optimization and self-determination based on individual values, views and goals. Open for other perspectives but often the own ones are seen as superior. > Flexible Mode: awareness that perception shapes reality. Can relate to other perspectives and tolerate ambiguities. Respect the autonomy of others and are prepared to learn and evolve. fixed mindset agile mindset page 61

62 Managers tend to be mostly in Right and Effective Mode Flexible Mode 17% We Mode 15% Effective Mode 30% Right Mode 38% Source:William Torbert and David Rooke page 62

63 Example: Growth Mindset Fixed Mindset I am either good at it, or I am not When I am frustrated, I give up I don t like to be challenged When I fail, I am not good Tell me I am smart If you succeed, I feel threatened Me abilities determine everything Growth Mindset I can learn anything I want to When I am frustrated, I persevere I want to challenge myself When I fail, I learn Tell me I try hard If you succeed, I am inspired My effort and attitude determine everything page 63

64 Agile Complete Mindset Example The complexity belief > Many of the challenges we face are complex adaptive problems, meaning that by trying to solve these problems we change the nature of the problem itself. > The end solution is not predictable at the outset. The people belief > Individuals are both independent from and dependent on their teams and organisations. Human beings are interdependent. > Given the right environment (safety, respect, diversity and inclusion) and a motivating purpose, it is possible for trust and self-organisation to arise. > For this to happen, it is necessary to treat everyone with unconditional positive regard. The proactive belief > We must proactively and relentlessly pursue improvements. Source: Simon Powers, page 64

65 #project #process #change Values

66 Frequently used agile values > Accountability > Autonomy > Collaboration > Communication > Commitment > Courage > Focus > Iteration > Learning > Openness > Respect > Responsiveness > Results > Speed > Transparency > Trust page 66

67 Please vote page 67

68 #project #process #change Agiles tools & practices

69 Agile Toolset (examples) > #noprojects > (Product Development) Flow > 6 sigma > Accelerated Agile > Adaptive Software Development (ASD) > Agile Modelling > Agile project management > Agile Strategy Development > BABOK > Behaviour Driven Development (BDD) > Being present > Beyond Budgeting > Bi-modal IT > Cloud Computing > Co-creation > Context Driven Testing > Creative thinking > Critical Thinking > Crystal > Cynefin > Deming Profound Knowledge System > Design Thinking > DevOps > DevOps > LEAP > Disciplined Agile Delivery (DAD) > Management 3.0 > Drive > Meditation > Dynamic Systems Development Method > Mikado Method (DSDM) > Mindfulness > Effectuation > Mob Programming > Enterprise Scrum > Nexus > Enterprise Transformation Framework > NoEstimates (ETF) > Nopan > Enterprise Unified Process (EUP) > Open Innovation > Extreme Manufacturing > Personal Kanban > Extreme Programming (XP) > PESTLE > Feature Driven Development (FDD) > Planning Poker > Holacracy > PMI ACP > Horizon Scanning > Podularity > Human Centered Design > Prince 2 Agile > Human-Centered Design (HCD) > Product Development (FLOW) > icagile > Programmer Anarchy > Kaizen (Continuous Improvement) > Project portfolio management > Kanban > Projectization > Large enterprise Scale Scrum (LeSS) > Radical Management > Lean > Rational Unified Process (RUP) > Lean Software Development > Right Shifting > Lean Startup > Rightshifting > Scale Agile Framework (SAFe) > Scenario Planning > Scrum > Scrumban > Scrumbut > ScrumPLOT (Pattern Languages of Programs) > Systems Thinking > TDD/ATDD/BDD/SBE > Teal Organization > Team Rooms > Test Driven Development > The Connected Company > The Deliberately Developmental Organization > The Studio Model > Theory of Constraints > Value elicitation > Vanguard Method > Wideband Delphi > Wirearchy > Xanpan > XSCALE (AgileTNG) page 69

70 Combination of Design Thinking, Lean Startup, and Agile Project Management page 70 70

71 Please vote page 71

72 #project #process #change Examples

73 Agile Culture Examples Mindset We depend on each other Giving is more important than taking I can learn from others Value Honesty Transparency Learning Principle Do not lie Share where you stand Practice Tool & Process Think before speaking Display your status Documentation Kanban Ask for help Work closely with others Peer programing page 73

74 According to the agile manifesto, agility requires transparency, collaboration, trust and learning Mindset: Transparency Collaboration Trust Learning 4 Values: Individuals and interactions Working software Customer collaboration Responding to change 12 Principles: Satisfy the customer Welcome changes Deliver frequently Collaboration Trust, support & motivation Face-to-face communication Progress is working software Constant pace Excellence & good design Simplicity Self-organizing teams Continuous improvement Agile Manifesto (2001) page 74

75 Scrum vs. XP practices page 75

76 Summary & Conclusion >An agile culture is defined by a mindset, values, principles and choosing matching practices, tools & processes >Developing an individual agile culture creates the foundation for agile scaling and building consistent agile organizations page 76

77 #project #process #change Overall Summary & Conclusion

78 Key Messages > Agility is driven by VUCA and is bound to stay > Agility is an additional tool in the organizational tool box that should be well understood and considered for use if suitable > What agility means for an organization needs, where and how to apply it needs to be defined individually > Agile requires a new leadership style and changes the manager role > To implement, start quickly and iterate often page 78

79 #project #process #change Q&A

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