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Agile adoption stories from highly varied organisational cultures How your culture is shaping your Agile [email protected] @rowanb Rowan Bunning CST - Scrum WithStyle

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Agile adoption stories from highly varied organisational cultures

How your culture is shaping your Agile

[email protected] @rowanb

Rowan Bunning CST - Scrum WithStyle

@rowanb© 2017 Scrum WithStyle scrumwithstyle.com

Organisational culture eats Agile…

Image credit: dreamstime.com/royalty-free-stock-photos-big-fish-image4138958#_

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Session outline• Quick outline of LaLoux culture model Adoption stories and insights from…

• Amber organisations • Orange organisations • Green organisations • Partially Teal organisation

• What you can do

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Thanks to…

Michael Spayd Michael HammanMichael Sahota Jean Tabaka

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1950 1960 1970 1980 1990 2000 2010

Frederic LaLoux

A short history of consciousness theory

Spiral Dynamics

Clare W. Graves, Ph.D Ken Wilber

Integral Theory

@rowanb© 2017 Scrum WithStyle scrumwithstyle.com© Frederic Laloux (content based on his book „Reinventing organizations“ (2014) 9

Human development Overview of the main (organizational) paradigms

Levels of Consciousness

TURQUOISE

TEAL

GREEN

ORANGE

AMBER

RED

MAGENTA

INFRARED foraging bands

authority by the Elders

powerful chiefdoms

formal hierarchies command & control “the stick”

effective matrix,

predict & control,

“the carrot”, shareholder perspective

relationships above

outcomes, stakeholder perspective

self manage-ment for

evolutionary purpose

100 000 yrs ago

100 00 yrs ago

1000 yrs ago

100 yrs ago

10 yrs ago

1 yr ago

@rowanb© 2017 Scrum WithStyle scrumwithstyle.com Source: Frederic LaLoux, Reinventing Organizations (Nelson Parker 2014)

20-25% of Australians

50%

20-25%

2%

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Agile

Agile Culture is here

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Subtitle TextConformist - Amber

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Conformist Amber

“Agile” in Amber

Surrounded by bureaucracy

30% of organisations including most of public sector

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Conformist Amber

Amber orgs value the opposite of Agile

over Individuals and interactions

over Working softwareComprehensive documentation

Processes and tools

Contract negotiation over Customer collaboration

Following a plan over Responding to change

The traditional manifesto

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Conformist Amber

Theory X dominant in AmberTheory X Theory Y

Dislike work and avoid it Need to work and can enjoy it

Need to control Direct ourselves

Avoid responsibility Seek and accept responsibility

Motivated by money Motivated to realise our potential

Little creativity Highly creative

Build projects around motivated individuals. Give them the environment and support they need,

and trust them to get the job done.

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Conformist Amber

Agile only survives within a protected bubble

📖

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Conformist Amber

Against the grain• Hard work protecting the bubble

• Heavy reporting up based on predictive plan

• Secretive by default

• Disinterested in “theory” - can’t reason for continuous improvement 📖

• Positional power up hierarchy where understanding of work situation is limited 📖

• Good Agile is fragile and can be rapidly destroyed 📖

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Subtitle TextAchievement - Orange

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Achievement Orange

More concerned about going fast than going in the right direction in

the face of uncertainty

> 40% of organisations including most large corporate

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Achievement Orange

agility != “faster”“We considered a bunch of names, and agreed eventually on “agile” as we felt that captured the adaptiveness and response to change which we felt was so important to our approach." - Martin Fowler

“Agile does not mean delivering faster. Agile does not mean fewer defects or higher quality. Agile does not mean higher productivity. Agile means agile - the ability to move with quick easy grace, to be nimble and adaptable. To embrace change and become masters of change - to compete through adaptability by being able to change faster and cheaper than your competition can." - Craig Larman and Bas Vodde

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Achievement Orange

Which has agility?

Source:YouTube Source: invorma.com/16-super-jumping-animals

or

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Achievement Orange

Ability to steer

Photo credits: thoughtcatalog.com and static.ezermester.hu

not

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Achievement Orange

Organisation as machineMachine language: Measurement and control, efficiency, order, programmes, inputs and outputs, production, top down, bottom-up, centralised, decentralised, roll-out. Forcing language: Consistency, standardisation, Get people to, make them… etc.

Source: cleanlanguage.co.uk

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Achievement Orange

Orange orgs want faster but not agility• Shareholder value + IT as a cost centre —>

playing a cost side, resource efficiency game • Misinterpret Agile as a tool for increasing

efficiency • “Program efficiency” and “delivery” are where

Orange orgs believe the problem is • “Agile” the Execute within “Plan-then-Execute” • “iterations” used to build out fixed scope to plan • Actually doing Incremental Development

and calling it “Agile”• Not: agility, iteration from customer

feedback, working in pure value order or amplified learning,

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Achievement Orange

Agile positioned as “delivery” tool• Management by Objectives (MbO): “define objectives (predict); follow-up

(control); strategic planning; mid-term planning, yearly budgeting cycles, key performance indicators, and balanced scorecards” [LaLoux14]

• Leads to negotiating fixed Scope & Date…

Contract negotiation over Customer collaboration

• “The most serious impediments to using Scrum are habits of waterfall, predictive thinking over the last twenty to thirty years; these have spawned command and control management, belief that demanding something will make it happen, and the willingness of development to cut quality to meet dates. These are inbred habits that we aren’t even aware of anymore.” - Ken Schwaber

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Achievement Orange

Agility constrained by hierarchy of objectives

Delivery DeliveryDelivery

Agile is put in these boxes

Team

Program

Value Stream

Portfolio

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Achievement Orange

Project/PI focus over customer focus• Projects, Programs, PMO

abstract away the external customer

• Internal stakeholder interests dominate over external customers

• Programs, projects as means of control

• Heavy lifting to mediate between internal stakeholder interests

Project

Focus on project delivery

😃

😞

Focus on Customer

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Water-Scrum-Fall💡 $

ArchitectsBusiness AnalystsProject Control Board

User Reps Operations

SIT UAT

System Testers

Deployment

😞

Benefits Realisation begins

Business case

Big Batch Specification

Big Batch Project Scope

Product Backlog Current Product

Users

Limited Coverage

Agile Team Programmers & Testers only

Months

2 weeks each iteration

Months

Released

Dependent on other groups to get anything specified or released

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Achievement Orange

Big bang “transformation” to Agile

• “Changes must be mapped out in blueprints, then carefully implemented according to plan.” [LaLoux14]

• Big up-front plan for “Agile transformation” with defined end state 📖

Slideshare from Sathyanarayana H.R Agile Resource Plan Template for Visio from Business Documents UK

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Achievement Orange

Process over Values“Orange Organisations increasingly feel obligated to follow the fad: they define a set of values, post them on office walls and company web site, and then ignore them whenever that is more convenient for the bottom line.”

Control through formal rules (policies), procedures, supervision etc. rather than relying on values

Less ability to decide what is situationally appropriate

Agile and Scrum values seen as fuzzy and not nearly as relevant day-to-day as following the defined “process”

Misinterpret Scrum etc. as a process

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Achievement Orange

Clash with self-organisation• Pre-defined job titles and roles impede

self-organisation • Individual performance review • Efficiency drive + technical work =

• narrow division of labour + hierarchy for technical supervision

• local optimisation • Opposite of generalising specialists

and Scrum rule of no titles or sub-teams

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Achievement Orange

Professional mask impediment• Fear of disempowerment an elephant in the

room impediment to Agile adoption

• "Emotions, doubts, and dreams are best kept behind a mask, so that we do not make ourselves vulnerable. Our identity is no longer fused with our need to be seen as competent and successful, ready for the next promotion.” [LaLoux14]

Image credit: 9hues.com

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Control systems in organisationsMarket system

Bureaucratic system

Clan system

• Prices drive very efficient decision making • Measure Input and Output

• Formal rules, roles, processes, compliance • Supervision, direction and hierarchy • Specialisations enable clearer comparison with

like workers

• Informal value based rules • Allows innovation and collaboration • Most suitable for unique, interdependent or

ambiguous work e.g. software development Reference: A Conceptual Framework for the Design of Organizational Control Mechanisms, William G. Ouchi, Management Science, Vol. 25, No. 9. 1979.

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Transitioning from Orange to Green

Involves eliminating formal constraintsreplacing them with team self-regulation,

values, responsibility, inspect & adapt

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Orange vs Green stories

In order to hit our predicted half-yearly profit target, As an executive, I want all projects run to produce the predicted results on time and budget.Orange

In order to continually delight customers in a turbulent market, As an executive, I want high capability teams of people with purpose and passion, learning about customers and creating high value products that serve the interests of all stakeholders. Green

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Subtitle TextPluralistic Green

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Pluralistic Green

Interdependence and Shared Values• Motivation: Customer has power, need to

“Delight” customers • Structure around customer value creation • “Culture is paramount” 📖 • Share values instead of policies, processes • Value Relationships over Outcomes • Honest about uncertainty 📖

Image credit: gomindshift.com

< 20% of organisations inc. start-ups and growth mode

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Pluralistic Green

Customer Collaboration• Vendor seeks ongoing partnership with

client 📖

• Multi-stakeholder win-win-win increases complexity

• Agility required to wrestle success

• Value side management

• Business steering development directly makes sense (Product Owner) 📖

Image credit: phoonies.wordpress.com

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Achievement Orange

Organisation as Organism, CultureOrganism language: “Living systems, environmental conditions, adaptation, life cycles, recycling, needs, homeostasis, evolution, survival of the fittest, health, illness.” Culture language: “Socialise, values, beliefs, ideology, rituals, diversity, traditions, history, service, shared vision and mission, understanding, qualities, families.”

Source: cleanlanguage.co.uk

Photo credit: holganix.com

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Pluralistic Green

Green is easily misunderstood from an Amber/Orange perspective

"...it is clear to me that PRINCE2 is agile, and therefore I have always been running projects in an agile way since I started my project management career.

I fully expect Agile to fade away given time and perhaps end its days as a niche small project delivery (web projects) [approach] advocated by the major web agencies such as Conchango.” - Kevin Brady, 2011

Source: eprince2.com/articles/prince2-is-agile/2011/03/17/

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Pluralistic Green

And now, some words of wisdom from my favourite management though leader…

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Pluralistic Green

Capability over objectives

"The most serious impediments to using Scrum are habits of waterfall, predictive thinking over the last twenty to thirty years; these have spawned command and control management, belief that demanding something will make it happen, and the willingness of development to cut quality to meet dates. These are inbred habits that we aren’t even aware of anymore."

- Ken Schwaber

Not objectives over capability

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Pluralistic Green

Inverted hierarchy

• Distaste for power imbalance • Inverted hierarchy where

management supports teams • “Frontline workers make far-

reaching decisions without management approval” 📖

Image credit: Large-Scale Scrum: More with LeSS by Craig Larman and Bas Vodde

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Pluralistic Green

Green values Servant-leadership

• “Green insists that leaders should be in service of those they lead.”

• “In some innovating companies, managers are not appointed from above, but from below; subordinates choose their boss, after interviewing prospective candidates.” [LaLoux14]

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Evolutionary Teal

Team Performance Curve

Source: The Wisdom of Teams: Creating the High-performance Organisation, by Jon R. Katzenbach, Douglas K. Smith, Harvard Business Press, 1993.

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The “Compromise Units”

________________

______________________

____

____

____

____

____

All the characteristics of a real team, but the members are deeply committed to one another’s personal

growth and development

Equally committed to a common purpose, goals, and working approach for which they hold

themselves mutually accountable.

___________

Has not yet established collective accountability. Requires more clarity

about purpose, goals or work-products and more discipline in hammering out

a common working approach.

______________

Has not focused on collective performance and is not really trying to achieve it. Has no interest in shaping a

common purpose or performance goals.

_______________

Members act primarily to share information, best practices, or

perspectives and to make decisions to help each individual perform within

his or her area of responsibility.

___________

Working groupPerf

orma

nce

Impact

Time

Pseudo-team

Potential team

Real team

Exceptional team

Real teams come naturally

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😞😃

Folding everyone into end-to-end teams

$

Flow of Value

Benefits Realisation begins

Vision & Business Goals

Product Backlog

Current Product

Users

Feature Team that is fully cross-functional

2 weeks each iteration

Released💡Feedback re Product and Process quality

OperationsSystem Testers

The Agile Team has the skills and authority to create usable Product

Increments each iteration

ArchitectBusiness Analysts

Broadening of skills

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Finally… Scrum makes perfect sense

• The elements of Scrum that get broken in Orange orgs make perfect sense in Green

✓ Agility

✓ Customer collaboration

✓ Servant-leadership

✓ Self-management (Teal)

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Subtitle TextEvolutionary Teal

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Evolutionary Teal

Teal: purpose, self-management and possibility• Perceived context: we evolve with the world • Belief: amazing things will emerge from a

truly supportive environment • About unleashing human ingenuity • Volunteering, free choice, true taking of

Responsibility 📖 • No projects - long-lived product

development • No budgets - why create scarcity,

why play games with each other?Image credit: healthyplace.com

Very few organisations

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Evolutionary Teal

Evolutionary purpose, breakthrough innovationInventions in the 1990’s and early 2000’s… 📖 • One of first web app languages • One of first e-retail sites, most complex Govt.

transaction • First semantic XML-based content

management • Meta-level object framework for business

application development • Semantic web-based knowledge system

re-definable without programmer • Solar thermal “big dish”

Photo: Unknown via Aperture

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Evolutionary TealCPJ inspired by Jeff Bezos' most recent annual letter. medium.com/21st-century-organizational-development/type-2-organizations-df3f1f53c66c

Distributed decision making

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Evolutionary Teal

Self-management• No “reporting lines” • High agency teams, little formal structure to take

power away • Org functioned as social network • Trust relationships valued • Team interaction directly with visionary Executive • Recent comments… “had a great culture”

“best team I’ve ever worked in”

Image credit: @NielsPflaeging Twitter

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Evolutionary Teal

People and roles are organic, dynamic• Team involvement in hiring • Not hired into narrowly defined job.

Instead, roles emerges from individual • Uncool to refer to someone by job title • “Job titles and descriptions hardly do

justice to unique combinations of roles, and they are too static to account for the fluid nature of work in Teal Organisations.” [LaLoux14]

• Empathy is essential 📖

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Evolutionary Teal

Psychological safetyPair Programming taken up readily as safety existed 📖 See Google’s Project Aristotle

Image credit: Calqui

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Hypothesis Driven Development

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Evolutionary Teal

Wholeness

• Encouraged to be yourself 📖 • Non-conformists • Strong intrinsic motivation and

loyalty 📖

Photo: careerandhumanresources.blogcommunity.com

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“I visualise Scrum as a rocket. Pushing that rocket forward is the power of its engines. But puling it back

are the forces of gravity. If the rocket it able to push far enough, it can enter into orbit. But if it cannot, it will

inevitably get pulled back to earth, right where it started. The implications of Scrum must be pushed far enough

into other parts of the organisation so that the entire transition is not pulled back by organisational gravity.”

- Mike Cohn, Succeeding with Agile

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Evolutionary Teal

Organisational Gravity: Ego• Social proof from the “big corporates” • Status through position or individual

achievement • Impediments to progressing…

• Ego, identity and positional status • Fear of vulnerability and looking incompetent • Lack of trust between managers separated

from the work • Lack of belief in team-based and self-

regulating alternativesImage credit: fortune.com

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Summary of Insights• Many are pursuing Agile for the “wrong” reasons* • Organisations are (mis)interpreting Agile to fit their current level of

consciousness • “faster, cheaper” motivation bends “Agile” to be an incremental delivery tool

to project goals at the expense of customer-centric agility • Water-Scrum-Fall is a typical consequence • The elements of Scrum and good Agile that get broken in Orange orgs are

what makes perfect sense in Green • “An organisation cannot evolve beyond its leadership’s stage of

development.” * Pursuing ends for which it was not intended by those who invented it

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What you can do yourself

• Listen for language reflecting a machine metaphor

• Have the confidence to take of your Professional Mask, say “I don’t know”

• Cultivate your own Green and Teal beliefs and share them

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What you can do to invite others

Image credit: Yi Lv, Odd-e

Example Causal Loop Diagram• Ask leadership: • why change? • would you like to talk about culture &

leadership? • Talk about sources of uncertainty, variability • Tell stories and engineer experiences that

challenge limiting beliefs • Use Systems Thinking to explore current

beliefs about organisational dynamics • Point out where behaviour is not aligned

with purported aspiration

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To learn more…• Reinventing Organizations by Frederic Laloux

• reinventingorganizations.com

• We the people: Consenting to a deeper democracy by John Buck and Sharon Villines

• sociocracy30.org

• meetup.com/Teal-Sydney-Reinventing-Organisations-and-Holacracy

• medium.com/teal-for-startups

• What would it take to Have and Agile Enterprise? slideshare.net/AgileNZ/lyssa-adkins-michael-spayd-keynote

• cleanlanguage.co.uk

• Obliquity: Why Our Goals Are Best Achieved Indirectly by John Kay

• Leadership Agility: Five Levels of Mastery for Anticipating and Initiating Change by William B. Joiner

• Talk to me… I have many more stories!

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@rowanb au.linkedin.com/in/rowanbunning

Rowan [email protected] scrumwithstyle.com