Management 3.0 - Applied

“Give me a place to stand and with a lever I will move the whole world.” - Archimedes of Syracuse (287 BC – c.  212 BC)

Johan Oskarsson – The agile leader

Agile transformation and adaptation (Martie’s Grow Structure view)

Delaval

Study/findings

Change program

Organization reengineering

Software Program

Learning’s & thoughts

Vision

3

…offers complete solutions for milk production and animal husbandry …empowers the dairy farmer with improved control over milk production …caters to customers worldwide with herd sizes ranging from 1 to 50 000

Internal

TetraLaval Group

4

Tetra Laval

Tetra Pak DeLaval Sidel

Internal

”Old School” no more

5 Internal

Heavy duty

6 Internal

Loose Housing

7 Internal

Voluntary Milking System – VMS

8 Internal

DeLaval AMR™ The world’s first automatic rotary system

9 Internal

Swinging Cow Brush

10 Internal

Study the system

“If you do not know how to ask the right question, you discover nothing” – W. Edwards Deming

Study/findings

Study the system

Delaval International

BA Capital Gods

D&E

Objective: Software development at D&E

System within system

Learning’s - Limits to grow

Frequent Deliveries

Good quality products

Reinforcing feedback

Balancing feedback

“Projects was handled without full insight to interdependencies ”

“The project models was not suited for

software development”

“The quality and huge technical debt backlog had

to be handled” “The energy level in development could

be enhanced”

“The insight in planning and visions could be

improved” “Customer felt a growing

frustration because of to few deliveries”

Learning’s - Limits to grow

The system had ended up in a too ordered state where very few products were delivered

Deliveries

Good quality

products

Budget

Project models/processes

Customer demands

Reinforcing feedback Balancing feedback Project size

Visibility/Informed decision making

Sales

Planning

Shared goals

Business proposals

Creative environment Personal

mastery

Motivated people

Empowered teams

“Stiff hierarchy with centralized

power”

“Large projects which spans over years”

“Projects planned without concern to

interdependencies ”

“Low visibility and blind

decision making with long cadence”

“Stiff low value linear project models”

“Low quality with huge technical debt backlog”

“Low energy environment”

“Unmotivated people”

“No learning organization”

“Low insight in management, planning and

visions”

“Budget process which promotes

command & control”

“Growing frustration

because of lack of deliveries”

Overall vision ( A sense of urgency was already in place)

“The only thing worse than being blind is having sight but no vision” – Helen Keller

Vision

Overall vision - Empowerment

I’m change leader and software development manager, I need power to act

Overall vision - Empowerment

Me,

My boss

3-4 weeks

Trust

Overall vision - Empowerment

Myself

My manager

3-4 months Trust

Overall vision - Empowerment

& I

My leader

4-12 months

Trust

Overall vision – Quantum leap in mindset

Waterfall

Agile

Overall vision – Leader characteristics

Development Director “my leader”

Head of PMO

Me

Head of Testing

Overall vision – Leader characteristics

Value and flow design of system

Integrate decision making with work

Measurement related to purpose

“What matters!” attitude to customers

Cooperative attitude towards suppliers

Act on the system management

Learning attitude

Adaptive & exploratory change attitude

Motivate intrinsic desires

Open and honest

Overall vision - Agile Organization Characteristics Ordered Traditional

Bureaucratic, top-down, multilevel hierarchy, policies and procedures that create

many complicated internal interdependencies

Functional, activities and order

Separated from work

Output, targets, standards, related to budget, few performance information systems distributed to executives only

Contractual

Contractual

Expectation that management will manage lower-level, people and budgets,

training to managers only

Control, specifications

Reactive, projects

Extrinsic, closed bonus system, reached targets

Inward focused, centralized, slow decisions making, political, risk adverse

Complex Agile

Nonbureaucratic, outside-in, system view, few level hierarchy, policies and procedures that produce the minimal internal interdependencies needed to serve customers

Demand, value and flow

Integrated with work

Capability, variation, related to purpose, many performance information systems,

providing data on customers especially, distributed widely

What matters

Cooperative, emergent

Expectation that management empower lower-level to manage, act on the system, training to many people

Learning, people-people collaboration

Adaptive & exploratory, iterative

Intrinsic, open bonus system, the goal is its own reward

Externally focused, empowering, quick decisions making, open and honest, risk

tolerant

Perspective & Structure

Design & System

Decision making

Measurement

Attitude to customers

Attitude to suppliers

Role of Management

Ideal

Change

Motivation

Culture

Overall vision – Agile system big picture for frequent deliveries of quality products

Por$olio  manager  

Product  manager  &  Council  Facilitator  

Product  manager  Product  manager  

Product  manager    

Por%olio  council   Product  visions  

Por-olio  vision  

Architecture  runway  Architectural  Epic  

Business  Epic  

Por-olio  backlog  

Program  manager  

Project  managers  System  architect  

Configura:on  manager  

Quality  Assurer  Release  manager  

Product  Owner  

Agile  Master  

Architect  Testers  

Developers  

Product  Owner  

Agile  Master  

Testers  

Developers  

Product  Owner  

Agile  Master  

Testers  

Developers  

Team  A     Team  B     Team  C    

Release    backlog  

Team  C    

Team  B    

Team  A    

Release  

Team  backlog  

Sprint  backlogs  

Features  

Stories  &  Tasks  

BUSINESS  /D&E  MANAGER  

PROJECT  /D&E  MANAGER  

SOFTWARE  /    HARDWARE  /TEST  MANAGER  

Memo  Memo  Memo  

Architect   Architect  

Product  council  

Incremental  

IteraBve  

Scaling agile D. Leffingwell

Change program

“If you don’t like something, change it. If you can’t change it, change your attitude” – Maya Angelou

Change program

Change program – “The social architecture”

Why

What How

Study the system

Initiation & Setup

System design

Test of concept

Training & preparation

Deployment Instructions

Flawless system

Procedures & guidelines

Return on investment

Benefits realizations

Conceptualize

Con

solid

ate

Coordinate

New paradigm

Change program – Guiding Coalition

Management

Leadership

X

X X

X

X

X X

X X

X

Change team

Management team

Informal leaders

Study

Paradigm Organization reengineering

Initiation & setup

Test of concept

Training & preparation

Deployment Instructions Flawless system

Procedures & guidelines

System transformation

to Agile Agile portfolio/

program management Continuous integrations

Requirement management

Test

strategy

Back-end support

Change program

Study

Paradigm Organization reengineering

Initiation & setup

Test of concept

Training & preparation

Deployment Instructions Flawless system

Procedures & guidelines

System transformation

to Agile Agile portfolio/

program management Continuous integrations

Requirement management

Test

strategy

Back-end support

Change program

System

Study

Paradigm Organization reengineering

Initiation & setup

Test of concept

Training & preparation

Deployment Instructions Flawless system

Procedures & guidelines

System transformation

to Agile Agile portfolio/

program management Continuous integrations

Requirement management

Test

strategy

Back-end support

Change program

System

Individuals

Study

Paradigm Organization reengineering

Initiation & setup

Test of concept

Training & preparation

Deployment Instructions Flawless system

Procedures & guidelines

System transformation

to Agile Agile portfolio/

program management Continuous integrations

Requirement management

Test

strategy

Back-end support

Change program

System

Individuals

Interactions

Study

Paradigm Organization reengineering

Initiation & setup

Test of concept

Training & preparation

Deployment Instructions Flawless system

Procedures & guidelines

System transformation

to Agile Agile portfolio/

program management Continuous integrations

Requirement management

Test

strategy

Back-end support

Change program

System

Individuals

Interactions

Organizational reengineering

“I think the players win the championship, and the organization has got something to do with it, don’t get me wrong. But don’t try put the organization above the players” – Michael Jordan

Organization reengineering

Different organizational structure – Informal Structure

Different organizational structure – Informal Structure

•  Social networks/structure •  The social network is always there like it or not,

can be good, can be bad, very powerful •  The social network influences the organization •  Usually ignored

Different organizational structure – Value Creation Structure

Value Unit (Cell)

Different organizational structure – Value Creation Structure

•  Flow based structure •  Any organization have it, but it is only through this structure that

performance, value and market success can be created •  Most organization structures are not build this way •  Can together with Systems Theory be mapped as network of

Value Units (cells), interrelated by value flow, pay, communication, etc

•  Each value unit either creates value for other network units or for the outside market

•  Value creation structure and flows are in many organizations

being crippled by other types of structures

Value Unit (Cell)

Different organizational structure – Formal Structure

Top-down power distribution

Different organizational structure – Formal Structure

Top-down power distribution

•  Produce compliance, but never value •  From Scientific Management •  A common fallacy among managers is that

work(value) is done through the formal structure

•  The formal hierarchy is not a demand from

customer, but usually a (wasteful) internal centralization of power

Different organizational structure – Distribution of structures

30%

All organizations have it (more or less…)

20%

50%

Different organizational structure – Distribution of structures

30%

All organizations have it (more or less…) •  Processes •  Planning •  Centralized coordination •  Hierarchy •  Top-down decision making •  Micro managing •  BUDGET!

•  Side effect of the social interactions •  Coffee breaks •  Friends •  Political rule breaking •  Hidden agenda •  Information seeking •  Autonomy

20%

50%

•  Generation of value •  Real performance •  Learning •  Dialogues •  Prototyping •  Collaboration •  Customer demand focus

Different organizational structure – Distribution of structures

30%

All organizations have it (more or less…)

20%

50%

Different organizational structure – Distribution of structures

20%

70%

10%

Different organizational structure – Distribution of structures

20%

70%

10%

Organizational transformation, what is that? I call it part of management!

Organizational reengineering – New organization

Emb

PC

Software Engineering

Merge of two departments •  40 people included consultants •  Off-shore in India •  Multi-site development I Poland

Included system specialist (product owners) and system tester into a value unit •  +5 system testers •  +8 product owners

Value unit Software

Engineering

Organizational reengineering – New teams formation

Value unit

X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected Effective

T

New teams formation workshops

•  Belbin theory as a theme to shift focus from daily work and to learn how to build teams

•  Workshop 1: Train Scrum Masters and Master Programmer Architects in Belbin theory and to crate a guiding coalition

•  Workshop 2: Pair Scrum Masters and Master Programmer Architects

•  Workshop 3: Train and inform all others in Belbin and how to create new teams

•  Workshop 4: Team creation, exercises, self-selection, specialization, team values, members, Belbin reports

•  Workshop 5: Follow up and minor

changes (3 changes)

NYAC  Kompetens  AB E-­Interplace

©  Belbin  Associates  2001 Utskriven  den  17-­Oct-­12

PROFILGENOMSNITT  FÖR  GRUPP

Observera  att  den  här  rapporten  bygger  på  den  kompletta  profilen.

0

20

40

60

80

100

ME SP IMP CF TW CO PL SH RI

Antal  kandidater:  56Antal  observationer:  308

Gruppens  bästa  egenskap  är  dess  väl  genomtänkta  angreppssätt  på  problem  och  dessomsorgsfulla   val   bland   möjliga   alternativ.   Med   sin   försiktiga   attityd   kommer   den   härgruppen   knappast   att   begå   några  allvarligare  misstag   även  om  den   kan   vara   långsammed  att  omsätta  beslut  i  handling.

I  värsta  fall  blir  den  här  gruppen  alltför  introvert  och  inte  tillräckligt  intresserad  av  vad  somsker   i  världen  utanför.  Det  här  spelar  kanske  inte  så  stor  roll   i  vissa  lägen,  men  om  detgör  det  bör  gruppen  söka  efter  någon  som  tycker  om  att  utforska  och  knyta  nya  kontakter.

Result

Scrum Master

Developers & testers Master

Programmer Architects

Virtual product owner

ProgramTeam

India Team

Herd Mgmt Team

PlatformTeam

FeedingTeam

Farm Automation

Team

Milking Team

ProgramTeam

India Team

Herd Mgmt Team

PlatformTeam

FeedingTeam

Farm Automation

Team

Milking Team

Result

Scrum Master

Developers & testers Master

Programmer Architects

Virtual product owner

Program manager

System Architect Configuration Manager

Quality Assurer

Release manager

Test leader

Solution Analyst

ProgramTeam

India Team

Herd Mgmt Team

PlatformTeam

FeedingTeam

Farm Automation

Team

Milking Team

Result

Scrum Master

Developers & testers Master

Programmer Architects

Virtual product owner

Program manager

System Architect Configuration Manager

Quality Assurer

Release manager

Business Manager

Portfolio Manager

Test leader

Solution Analyst

ProgramTeam

India Team

Herd Mgmt Team

PlatformTeam

FeedingTeam

Farm Automation

Team

Milking Team

Result

Scrum Master

Developers & testers Master

Programmer Architects

Virtual product owner

Program manager

System Architect Configuration Manager

Quality Assurer

Release manager

Business Manager

Portfolio Manager

Line Managers

Test leader

Solution Analyst

Organizational reengineering – Widen job titles

Value unit

X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected

T Widen job titles

Widen job titles (wider responsibility) All team members are now software engineers! Programmers have to do more: •  Test more •  Install at farms •  Requirement analysis

Testers: •  Do different types of test •  Get involved in requirement analysis •  Get involved in design •  Get involved in planning

Requirement people: •  Test more •  Always available

Organizational reengineering – Communities of practice

Value unit

X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected

T Widen job titles

Communities of practice

Result – Various forums(communities) and reoccurring meetings

ProgramTeam

India Team

Herd Mgmt Team

PlatformTeam

FeedingTeam

Farm Automation

Team

Milking Team

Scrum Master Forum

Architect Forum

Testers Forum

Developers Forum

Scrum of Scrum Meeting

Program team meeting

Project Portfolio Board

Product management meeting

Customer Support Team meeting

Daily Scrum

Organizational reengineering – New teams formation

Value unit

X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected

T

Value adding hierarchy

Widen job titles

Communities of practice

Value adding hierarchy – Program team, the center of the unit

“Center” Serves the periphery

“Periphery” Reaction &

decision

“Business Area”

Decentralized decision-making

Organizational reengineering – New teams formation

Scalable

Value unit

X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected

T

Value adding hierarchy

Widen job titles

Communities of practice

Scaling (~65 people)

ProgramTeam

India Team

Herd Mgmt Team

PlatformTeam

FeedingTeam

Farm Automation

Team

Milking Team

Scaling (~100-150 people, 10 teams)

Scaling a formal structure is easy

Scaling a formal structure is easy

Scaling a formal structure is easy

Scaling a formal structure is easy

Scaling a formal structure is easy

Scaling a formal structure is easy

Scaling a formal structure is easy

Scaling Value Creation Structure is complex and more complicated

Scaling Value Creation Structure is complex and more complicated

Organizational reengineering – New teams formation

Scalable

Value unit

X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected

T

Value adding hierarchy

Widen job titles

Communities of practice

Software Program of Continuous Delivery

“It is always wise to look ahead, but difficult to look further than you can see” – Winston Churchill

Software Program

Software Program – Break down of a project

Idea Concept Development Launch

BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8

Scope (fix) – Time (1-2 years not usual) – Cost (yearly budget)

Project Epics Releases Cost per Epic

BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8

Idea Concept Development

Launch

Architectural Epics

Business Epics

Quality Improvements Epics

Shorten lead-times to market

Software Program – Break down of a project

Idea Concept Development Launch

BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8

Scope (fix) – Time (~1-2 years not usual) – Cost (yearly budget)

Project Epics (Architectural & Prioritized Business)

Releases (Integration order)

Cost per Epic (yearly budget)

BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8

Idea Concept Development

Launch

Architectural Epics

Business Epics

Quality Improvements Epics

Shorten lead times for first time delivery of customer value, PSI multiple times during project life-time

Shorten lead times for first feedback, opportunity to adapt to changing demands and possibility to close a project without sunk-cost, etc

Software Program – Continuous Delivery of Multiple Projects

Inc n + 1 Inc n + 2 Inc n + 3 Inc n + 4

Project A

System Architecture

Quality Releases

Project B

Project C

Project D

System Releases

Single point of entry, handles all variation…

Software Program - Scaled Scrum

PSI

•  -------- •  -------- •  -------- •  -------- •  -------- •  --------

Increment backlog

•  Build release candidate

•  Demo •  Release review

meeting

Joint teams retrospective meeting

Hardening period 3 weeks

RC

PSI PSI PSI PSI

PPB 1 PPB 2

Sprint planning meeting

Daily Scrum

Weekly Scrum of Scrums Year 1 Year 2

Inc 1 Inc 2 Inc 3 Inc 4 Inc 5

Pre-planning meeting

Release planning meeting

PSI

Field test

Software integration

Sprint retrospective

One-pager release report • Aggregated increment burndown

• Status &progress each Epic

• Improvements to be done

• Impediments

•  -------- •  -------- •  -------- •  -------- •  -------- •  --------

Software Program – IRL Visualization

Projects pulse board

Software Program board 1 year floating window

Software Program board current increment

Team Kanban board

Support issue board

Program team improvement Kanban board

Learning’s & thoughts Learning’s & thoughts

“It’s all about where your mind’s at” – Kelly Slater

ProgramTeam

India Team

Herd Mgmt Team

PlatformTeam

FeedingTeam

Farm Automation

Team

Milking Team

Learning's – Team formation

“Scrum Masters not easy to find!”

“What should the team specialization be?”

“Is this the right team for me?”

“What should the program team do?”

“How will it all work?”

“More people is complicated!”

“We need more people in the team?”

Learning’s – Widen job titles/roles

“I’m specialized in C#, should I now do C++?”

“I’m a programmer, do I have to system test?”

“Access to testers when we need them!”

“Access to requirement people when we need them!”

“It is scary to meet a customer!”

Learning’s – Communities of practices

“Each forum needs a facilitator who is a driving force!”

“One hour a week is not enough for architecture work!”

“The PPBs need a lot of preparations!”

“The Program team meeting works well in a Kanban structure!”

Learning’s - Value adding hierarchy

“I need resources to do this, to do that….”

“Who is responsible!” “The program team shall serve the development teams, not the other way around!”

“Don’t specify, grow & explore! ”

Learning’s - Change

“It is mindset which is the most important to change, the model and processes are secondary!”

“To change the system, you have to be out there, where it happens, at all times!”

“Changes are hard, it takes time, a lot of effort and a lot of pain!”

My thought about Management 3.0…

“Universal, not only for software development.”

My thought about Management 3.0…and complexity

“Recognize different situations and understand when to approach them with complexity and when to use good practices in ordered situations.”

My thought about Management 3.0…and setting constrains

“As a manager, set constrains and understand what the difference is from rules, and be comfortable when it doesn’t turn out the way I thought it would.”

My thought about Management 3.0…and practices

“To work with emerging practices, to explore and adapt rapidly. Don’t push the system when it doesn’t do what I want, but to change the angle and try something else.”

My thought about Management 3.0…and structure

“Fractal organization scaling really changed the way I thought about how to create an effective structure. Scale it up in theory and imagine the problems, solve them using fractal theory and optimize for flow, demand and value. Scale down but use the same structure.”

My thought about Management 3.0…and changing

“How to change the world? Start with “why”, then “how” and verify with “what”. The mojito model can be really effective when used with good preparations and thorough analysis before applied. Easy to see what I did wrong looking back, don’t under-estimate the amount of work needed to plan for future changes. It truly is complex.”

Change  Management  3.0  

My thought about Management 3.0…and vision

“Unless a vision starts with “why” and “how” not enough will follow. “what” is attractive only to the early adopters, the early and late majority don’t follow freely “what”. When I failed with “why” and “how” I tried the old command & control, use my power as a manager. I told them to do … which was wrong and the result was nowhere to my satisfaction. BAD MANAGER!!” “what” = specification/command “why” = incentive/motivation “how” = sense-making

My thought about Management 3.0…over all

“New door to many very useful theories and practices.”

My thought about Large Scale Agile

“Stay releasable, always!!”

Said about planning the release….

“…we cut and we cut, and cut until there was nothing left. We are down to the bare minimum of the minimum. It was a horrendous day.” - Fernando Mazeris, System Director

Said about planning the release….

“Today we deliver on time with better control of the quality. To improve also on the scope we are turning best practice advice on structure and routines into action. “ - Ola Markusson, Director Development & Engineering

Said about scrum….

“…scrum and all is fine, but I have an other model, JDT – Just Do It!” - Jonas Wahlgren, programmer

Software Program

•  Study the system •  Create a value based vision •  Setup a change program •  Refactor the organization towards a flow based system

which scales •  Chose multiple suitable Agile models …….and don’t forget to change your mindset, it is the hardest part…

Thank you

Me…

Johan Oskarsson

@johanoskarsson

Johan.oskarsson@knowit.se

+46 073 3355778

johan-oskarsson

www.captaintrouble.com