Beyond Agile - Adaptive Organizations for the 21st century by Mike Leber
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Transcript of Beyond Agile - Adaptive Organizations for the 21st century by Mike Leber
Beyond AgileAdaptive Organizations for the
21st Century
Mike LeberAgile & Lean Coach
Twitter: @michael_leber
http://agileexperts.at
@AgileExperts | http://agileexperts.at
The Case for Adaptive Organizations
Focusing on Value – Sensing the Environment – Constantly & fast Adapting
CurrentState
VisionFuture is still uncertain, but arrivingfaster than ever
bringing change atever increasing speed!
We need end-to-end Value Creation!
@AgileExperts | http://agileexperts.at
AdaptiveOrganization
Customer & Product
Discovery
Leadership
Operational Excellence
Capability baseline for a fitterBusiness
Understandingour business
and fast changing
marketsbetter
Providing engagingstructures and movement for adaptation
@AgileExperts | http://agileexperts.at
Agile Manifesto
What did we Learn?
• Purpose, Product, Value
• People and Collaboration
• Trust and Self-Organization
• Adaptation
Where did we come from?
• Organizational Silos
• Low levels of Collaboration
• Challenged Quality of Deliverables
• Unflexible regarding Change
• Low Customer Focus
agilemanifesto.org
@AgileExperts | http://agileexperts.at
OrganizationalImprovementsEmerge
Chan
ge R
eque
sts
Mean Tail
LeftShift
RightShift
Growth of Capabilities
Copyright: Lean Kanban University, David J Anderson
@AgileExperts | http://agileexperts.at
Potentials for Operational Improvement
Time (in Quarters)
# C
Rs
10
30
50
Reduction of Backlog. From this point on, the service meets the arrival rate of requirements
240% Improvement Throughput
Time (in Quarters)
Avg
. Tim
e fo
r So
lutio
nin
day
s
25
75
12590% Reduction of end-to-end Cycle
Time*
• Increase in throughput
• Drastical reduction of lead time
• Shorter wait time for customers
• Faster feedback
• Improved quality
• Higher reliability andpredictability of system
Copyright: Lean Kanban University, David J Anderson
@AgileExperts | http://agileexperts.at
3MajorFocusPoints
Sustainability§ LimitWorkinProcess§ Avoidoverburdening§ Gainmorefocus§ Understandrisk,capability§ Allocatecapacity§ Increasepredictability
Survivability§ Leadbusiness§ Makeinformedstrategicdecisions§ Increasetherightcapabilties§ Drivefeedbackloops
Service-Orientation§ Driveoutvariabilityacrossanorganization§ Makeeducatedmanagement decisions§ Scaleoutbusiness
See: „Kanban Agendas“ via Lean Kanban University
Team vision and discipline over individuals and interactions (over processes
and tools)Validated learning overworking software (over
comprehensive documentation)Customer discovery overcustomer collaboration (over
contract negotiation)Initiating change overresponding to change (over
following a plan)
Kent Beck’sBeyond Agile Manifesto
http://www.forbes.com/sites/stevedenning/2011/05/04/innovation-applying-inspect-adapt-to-the-agile-manifesto
• „...age of hypothesis testing instead offeature development...“
• „... a new world opening up in 2015-2016“
?
„In the Next 10 Years,40% of the Fortune 500 Companies will be gone.“
John M. Olin School of Business,Washington University
Organizations - Not always what we think
Exaptation
PaypalFirst built forPalmpilots
TwitterWas apodcastingcompany
FreshbooksWas invocingfor a webdesign firm
WikipediaWas to be writtenby experts only
HotmailWas a databasecompany
AutodeskMadedesktopautomation
Everything is goingexponential in VUCAWorld
Evolution
Disruption
FlickrWas going to be an MMO*
*Massively-Multiplayer-OnlineGame
Hyper-Collaborative Global Economy
@AgileExperts | http://agileexperts.at
Innovator‘s Dilemma
https://osmoticinnovation.wordpress.com/tag/innovators-dilemma/
@AgileExperts | http://agileexperts.at
3 Horizons of Business Playgrounds
„TheAlchemyofGrowth“MerhdadBaghai,StephenColey,andDavidWhite,1999
Key Challenges - Too much Focus on H1§ Shareholder Value and Quick ROI§ Bonus Payments§ Budgeting Process§ Avoid Exeriments§ Limit to current segments§ No longer term impact
Today‘s revenuegrowth + tomorrow‘scash flow
Options for futurehigh-growthbusinesses
Today‘s cash-flow
@AgileExperts | http://agileexperts.at
Existing Biz ModelsNew Biz Models
Continuous Exploration
Continuous Improvement
Leadership
Behaviors Values
Structures
ExplorationStrategy
Innovation IdeasPortfolio
ExploitationOptions
BalanceCommitment
2 Engines for Growth
@AgileExperts | http://agileexperts.at
Existing Biz ModelsNew Biz Models
Leadership
Behaviors Values
Structures
ExplorationStrategy
Innovation IdeasPortfolio
ExploitationOptions
BalanceCommitment
Develop Sensors for Adaptation
§ FlowefficiencyandSlackTimeoverCapacityUtilization§ Validated LearningoverMassofDeliverables§ Understanding StakeholdersandBusiness RiskoverBlaming§ RiskAwareDecisions overHIPPOEnforcement§ OrganizationalLiquidity overpurelyScalingupaBusiness
@AgileExperts | http://agileexperts.at
Innovation≠ Incubator
Innovation≠ Accelerator
Innovation≠ Startup
Innovation≠ LeanAnything
Innovation≠ ReorganizationTheseareallphysical placestodo
innovation Steve Blank
@AgileExperts | http://agileexperts.at
InnovationSucceeds
• Wherethereisapathtoadoption• Whenitfitsintotheoverallmissionandstrategy• Becauseitperforms,hasmetrics,…• Itismanagedasaninnovationportfolio• Andhasmanagementsupport(thespiritof“yes”)
Continuous Innovation requires New Management Tools
Steve Blank
@AgileExperts | http://agileexperts.at
DiscoveryandExploitation
„LeanEnterprise“, JezHumble, JoanneMolesky,BarryO‘Reilly
@AgileExperts | http://agileexperts.at
http://blog.gardeviance.org/2015/03/on-pioneers-settlers-town-planners-and.html
Pioneers, Settlers, Town PlannersSimon Wardley
Gary Hamel, American Management Expert
Right now, our companies have21st century Internet enabledbusiness processes, mid 20thcentury management processes,all built atop 19th century management principles.
@AgileExperts | http://agileexperts.at
Drivers for More Change
• Digital Economy – Declining Transaction Cost
• Individualization – Customization for mass markets
• Flexibilization – Alliances, Workforces
• Demographic Change
• People as Adults – Having a Voice
@AgileExperts | http://agileexperts.at
5Ps for better Ways to Organize• Purpose – Focus on „Why“• People – Humane Values, Engaging, Inspiring• Process – Value generating, adaptive
Capability• Product – Validation, Learning, Value• Platform – Engaging across multiple Channels
Sense & Respond across the whole Organization
@AgileExperts | http://agileexperts.at
ExponentialOrganizations
http://frankdiana.wordpress.com/2015/04/01/exponential-organizations/
SalimIsmail,MichaelS.Malone,YurivanGeest
We need to shape better Environments for People Collaboration
Multiple Purpose Dimensions
Copyright: Stephen Parry
Business Purpose
People Purpose Customer Purpose
Common Purpose
„WeallworkforthesameCompany,butweliveIndifferentworlds“ThomasQueisser
Purpose
Measurement
Acitvity
!?
? ?
@AgileExperts | http://agileexperts.at
Peopledonotgenerallyfearchange!
Peopledonotfeartoworkonchallenges.Whattheyveryoftenmiss,isaTrustful,EngagingandInspiringEnvironmentwheretheycanCollaborate,Experiment,Learn,Grow.
@AgileExperts | http://agileexperts.at
IUMRING TQ GQNGIUSIQNS
Ourbrainautomaticallyfillsinblanks,insteadofsayingtous“Sorry,Idon’tknowyet”
Copyright:MikeRother
Agenda for anAdaptive Organization
• OutcomeoverOutput• EducatedCommitment• ManagingSystemsnotPeople• GrowingVision,Purpose&Values• LeveragingHumanePotentials• NurturingCreativity,Collaboration,Learning• FocusedExperimentation• ChallengingandReinventingestablishedModels
@AgileExperts | http://agileexperts.at
Disrupt or be disrupted