Creating Your Agile Enterprise
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1 Creating Your Agile Enterprise A Seven Layer Framework for Agile Adoption Michael K. Spayd Collective Edge Coaching & Consulting (C) 2009 Collective Edge Consulting 1 Overview of Today You will create 1. A Customized Plan 2. All Enterprise Levels 3. Solicit Feedback 4. Create Accountability 1
2 Agile Adoption Dimensions Organizational What does Agile look like at the ORGANIZATION level? Leadership / Strategic Business / Strategic Program Management Team Individual What does Agile look like at the LEADERSHIP level? What is Agile Leadership? How does it interact with the company s strategy? What does Agile look like in the BUSINESS & STRATEGY level? How does it work within the business? What does Agile look like at the PROGRAM level? What metrics, goals & processes are tracked and improved? What does Agile look like in MANAGEMENT? What is a manager s role with a self-organized team? What does Agile look like on a TEAM? What is healthy Agile team functioning? What does the INDIVIDUAL do in Agile? Does it fit who they are as a person? 2009 Collective Edge Consulting, llc The Big Big Picture What Everyone Needs to Know Organizational Layer: Culture 2
3 Layer Seven Organizational Key Question Is your core culture consistent with Agile? Discipline CultureTek Four Core Cultures Practices Organization Culture Assessment Aligning Strategy, Culture and Leadership How Important is Culture? Collins & Porras Built to Last What s the difference between visionary and comparisons? A Strong, Integrated and Consistent Culture Most critical: Alignment where all elements of the organization work in concert $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 Stock Market Performance of Visionary vs. Comparison Companies ($100 invested) 1990 Visionary Comparison Adapted from Jim Collins & Jerry Porras, Built to Last $100,000 $
4 Four Types of CULTURE Collaboration Egalitarian Diversity Involvement United we stand Control Order Predictability / Stability Systematism Standardization Certainty From Schneider, Aligning Strategy, Culture and Leadership Cultivation Growth Humanism Values Purpose / Meaningfulness Creativity Competence Professionalism Pursuit of Excellence Autonomy / Indiv. Freedom Continuous Improvement Craftsmanship (C) 2009 Collective Edge Consulting How Important is Culture? William Schneider CultureTek ROI 81 Organizations / 14 Industries Ranked on: Profitability Cash flow strength Debt-equity ratio Bottom-line difference makers: Focus Alignment Integration Rank Aligned & Focused Unaligned & Unfocused Degree of Integra-tion tion 63% 63% 63% 63% 51% 51% 51% 51% 51% 51% 44% 12 < 40% Adapted from William Schneider, Return on Invesment CultureTek, unpublished study < 40% 44% 15 < 40% 16 < 40% 4
5 The Local Local View What What Teams & Coaches Coaches Need to Know Individual Layer Team Layer Layer One Individual Key Question Can I find satisfaction: a) if team becomes more important than me? b) working outside my role-based skill set? Discipline Self-Leadership Practices Deliberate Practice Pair switching Personal Retrospective 5
6 Layer Two Team Key Question Will this group become a performing team? What will sustain them over time? Discipline Conscious Teaming Practices Self-organized Team Selection Discovery Sessions Process, Project, Team Team Startup Designed Partnership Alliance 12 Team Performance Real Team High Performance Team Performance Impact Working group Potential Team Pseudo Team Source: Katzenbach & Smith, The Wisdom of Teams Team Effectiveness Collective Edge Consulting 6
7 A Comprehensive Model High Positivity Low Team Productivity High Positivity/Low Productivity Collegial, Friendship Based Lack of Effective Focus Insufficient Sense of Urgency Change Resistant Don t Rock the Boat Incompetence Tolerated Not Results Oriented Sense of Connection and Fun High Team Productivity High Positivity/High Productivity Successful, Fun Synchronicity, Flow Challenging Goals, Inspiring Vision Change Proactive Open Communication Great Teamwork How do we continue to improve? Low Positivity Low Positivity/Low Productivity Atmosphere of Criticism, Blame & Cynicism Overwhelm No Fun Fear of Job Loss and/or Company Failure Firefighting, Short-term Orientation Turf Protection One Step Forward; Two Steps Back Poor Teamwork Low Positivity /High Productivity Focus is efficiency Just Do It!, Bottom-Line Orientation Retention Problems, High Turnover, Burnout Guarded Clear Objectives Driven Competitive 13 Measuring the System Team Leadership Resources Trust Respect Camaraderie Decision Making Communication Proactive Constructive Interaction Accountability Values Diversity Goals & Strategies Optimism Alignment 14 7
8 The Middle Middle View What Middle Mgmt / Agile Prog Mgr Need to Know Management Layer Program Layer Layer Three Management Key Question Does middle management have a place in your adoption? Discipline Eight Competencies of an Agile Manager Practices Management Standup Team-based Performance Review Agile Portfolio Management Agile Metrics & Reporting 8
9 Four LEADERSHIP Styles Participative Team Builder * Coach * Close partner w/customers * Integrator * Push for consensus * Conflict manager * Amiable * Pragmatist Directive Authoritative * Conservative * Driver firm & assertive * Definitive * Realist From Schneider, Aligning Strategy, Culture and Leadership Charismatic Cultivator * Catalyst * People Steward * Idealist * Commitment Builder * Expressive * Idealist Standard Setter Conceptual visionary * Challenger of others * Spurs competition * Tough taskmaster * Stretcher of people * Analyst (C) 2009 Collective Edge Consulting 18 The Organizational Ecosystem The Context for Agile Management Collective Edge Consulting 9
10 Eight Competencies for Agile Managers 19 Managing Teams Team Discipline Basics Managing Agile Teams Resource Management Performance Management Managing the Environment Suppliers & Outsourcing Internal Partner Management Managing Investments Metrics & Reporting Managing the Portfolio Meta Skills Organization Change & Culture Collective Edge Consulting Layer Four Program Key Question What needs to be the same across teams? What can be different? Discipline Balancing the Crystal approach vs. Defined Organizational Process Practices Program Steering Council Agile Metrics TOC Metrics 10
11 The Executive Executive Perspective What Executives Need to Know Business Layer Leadership / Strategic Layer Layer Five Business / Strategic Key Question: Will the business drive? What is the relationship between business & IT? Does Agile support or hinder business strategy? Discipline Lean Thinking Practices Lean Tools (e.g., Value Stream Map, Kaizen, Kanban, etc.) Strategy Analysis Agile Business Projects Product Owner career path 11
12 Layer Six Leadership / Strategic Key Question: Do we want to become an Agile Enterprise? What can happen if the organization becomes Agile, not just delivery teams? Does Agile focus the culture, or diffuse it? Discipline Envisioning the Agile Enterprise Leadership Agility Practices Strategic vs. Tactical Adoption Culture Assessment Strategy Alignment Four Core STRATEGIES Synergy Close partnership * High customization * Total solution * High personalization * Codevelopment * Incremental relationship Certainty Dependability * Efficiency * Commodity * Predictability * Convenience Enrichment * Growth of Customer * Raising of human spirit * Realization of ideals, value, higher-order purposes * Take customer to another plateau Superiority One of a kind * Unmatched Product or Service * Excellence * Constant Innovation * Product Leadership From Schneider, Aligning Strategy, Culture and Leadership (C) 2009 Collective Edge Consulting 12
13 Why Management Ideas Fail Collaboration Self-directed Teams Management by Consensus Participative Management Agile Control Six Sigma (precision) Statistical Process Control Cultivation Principle-center Leadership Open Book Management Spirit at Work Seeking Employee Commitment Agile Competence Best Practice / Benchmarking Six Sigma (excellence) Knowledge Capital XP? Adapted fom Schneider (C) 2009 Collective Edge Consulting The Big Big Picture What the Senior Sponsor Needs to Know Organizational Layer: Change 13
14 Layer Seven Organizational Key Question How does this organization change? Discipline Eight Critical Success Factors Model of Change Practices Selling the Problem Stakeholder Analysis Job & Role Impact Analysis Communication Plan Arc of the Transition Journey Beginning Pent up demand for change Easy wins are, well easy Early Adopters are..friendly Middle Benefits of the change are evident, but the threats it creates also start to manifest Late Adopters are..challenging You may lose your compass bearings Beware subversion by the dominant paradigm End How do we know we are done? The difficulty of dissolving 14
15 Eight Keys to a Successful Journey A Burning Platform is Driving the Change A Compelling Vision is Pulling the Change A Cascading Chain of Sponsorship Forms A Change Team with a Change Architect Maintaining Awareness Key Stakeholders are Meaningfully Engaged and Have Influence All Stakeholders are Empowered to Make the Change with Dignity The Organization Becomes Aligned around the Change The Magic of Time has a Chance to Work Collective Edge Consulting Thank You! CONTACT: michael@collective-edge.com (C) 2009 Collective Edge Consulting 15
16 31 Response to Positive Change Source: Daryl Conner, Managing at the Speed of Change Collective Edge Consulting 16
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