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!


AdaptiveOrganization

Customer & Product

Discovery

Leadership

Operational Excellence

Capability baseline for a fitterBusiness

Understandingour business

and fast changing

marketsbetter

Providing engagingstructures and movement for adaptation


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

Niklas'Modig,'PärÄhlström

NiklasModig,PärÄhlström

Doing versusBeing

Practices

Principles

Values


OrganizationalImprovementsEmerge

Chan

ge R

eque

sts

Mean Tail

LeftShift

RightShift

Growth of Capabilities

Copyright: Lean Kanban University, David J Anderson


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


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“

Agile Methodsalone don‘t make aBusinessAgile

Eric Ries

Build – Measure - Learn

You can do everything rightand still be totally wrong!

?

„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


Innovator‘s Dilemma

https://osmoticinnovation.wordpress.com/tag/innovators-dilemma/


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

It is not necessary to change. Survival is not mandatory.

W.E. Deming


Existing Biz ModelsNew Biz Models

Continuous Exploration

Continuous Improvement

Leadership

Behaviors Values

Structures

ExplorationStrategy

Innovation IdeasPortfolio

ExploitationOptions

BalanceCommitment

2 Engines for Growth


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


Innovation≠ Incubator

Innovation≠ Accelerator

Innovation≠ Startup

Innovation≠ LeanAnything

Innovation≠ ReorganizationTheseareallphysical placestodo

innovation Steve Blank


InnovationSucceeds

• Wherethereisapathtoadoption• Whenitfitsintotheoverallmissionandstrategy• Becauseitperforms,hasmetrics,…• Itismanagedasaninnovationportfolio• Andhasmanagementsupport(thespiritof“yes”)

Continuous Innovation requires New Management Tools

Steve Blank


DiscoveryandExploitation

„LeanEnterprise“, JezHumble, JoanneMolesky,BarryO‘Reilly


http://blog.gardeviance.org/2015/03/on-pioneers-settlers-town-planners-and.html

Pioneers, Settlers, Town PlannersSimon Wardley


Dual Operating SystemJohn Kotter

John P. Kotter

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.


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


Change is speeding up

DigitalizationIndustrie 4.0


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


ExponentialOrganizations

http://frankdiana.wordpress.com/2015/04/01/exponential-organizations/

SalimIsmail,MichaelS.Malone,YurivanGeest

We need to shape better Environments for People Collaboration

Finally it is all about People


Engaging Leadership

Jurgen Appelo

Multiple Purpose Dimensions

Copyright: Stephen Parry

Business Purpose

People Purpose Customer Purpose

Common Purpose

„WeallworkforthesameCompany,butweliveIndifferentworlds“ThomasQueisser

Purpose

Measurement

Acitvity

!?

? ?

Human beings are born for AdaptivenessOur old Systems eliminate this Gift

Carol Dweck

Strong Opinions, weakly heldBob Johansen, Palo Alto Institute for the Future


Peopledonotgenerallyfearchange!

Peopledonotfeartoworkonchallenges.Whattheyveryoftenmiss,isaTrustful,EngagingandInspiringEnvironmentwheretheycanCollaborate,Experiment,Learn,Grow.


IUMRING TQ GQNGIUSIQNS

Whatdoyouread?

Copyright:MikeRother


IUMRING TQ GQNGIUSIQNS

Ourbrainautomaticallyfillsinblanks,insteadofsayingtous“Sorry,Idon’tknowyet”

Copyright:MikeRother

Change that Fits

„LeanChangeManagement“ Cycleby JasonLittle


Agenda for anAdaptive Organization

• OutcomeoverOutput• EducatedCommitment• ManagingSystemsnotPeople• GrowingVision,Purpose&Values• LeveragingHumanePotentials• NurturingCreativity,Collaboration,Learning• FocusedExperimentation• ChallengingandReinventingestablishedModels


Disrupt or be disrupted

AdaptKeep growing by Reinventing


beyond agile - adaptive organizations for the 21st century by mike leber

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