enabling company-wide agility in a dynamic world by john buck & jutta eckstein
TRANSCRIPT
Enabling Company-Wide Agility in a DYNAMIC WORLD
Jutta Eckstein, @juttaeckstein [email protected] http://JEckstein.com
John Buck [email protected] http://SociocracyConsulting.com
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LEARNING OUTCOMES
● Understand what it means to be agile as a
company. ● Know the methods that need to be combined to
transform a whole company : Agile, Sociocracy, Beyond Budgeting, and Open Space.
● Know how to get started in changing your company to be agile regardless of your position in the company
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OVERALL AGENDA (10:00AM - 6:00PM)
• Setting the Stage • Definition of an agile company • Diving into the different streams and their
alignment ● Agile principles ● Sociocracy ● Beyond Budgeting ● Open Space
• Applicability in participant’s own context ● Planning your next steps
• Reflection, summary & wrap-up
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CHALLENGES COMPANIES ARE FACING
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CHALLENGES •Companies face volatile, uncertain, complex, and ambiguous (VUCA) conditions ●Lack of Theory ●Size ●People ●Digital Revolution ●Biological Revolution ●Collision of Values
• Difficulties with company-wide Agility ●What are the basic principles? ●What does it mean to be Agile in HR, legal, sales? ●Is control of corporations by shareholders still appropriate? ●Should the structure be hierarchy, matrix, network, something else?
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UPDATE ON CHALLENGES
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How does the Agile Manifesto translate to company-wide Agility?
Manifesto Values: • Individuals and interactions over processes and tools
• Working software over comprehensive documentation
• Customer collaboration over contract negotiation
• Responding to change over following a plan
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How does the Agile Manifesto translate to company-wide Agility?
Manifesto Values: • Individuals and interactions over processes and tools
• Working software over comprehensive documentation
• Customer collaboration over contract negotiation
• Responding to change over following a plan
Translates to: • Self-organization • Transparency • Constant customer focus • Continuous learning
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CONVERGING STREAMS
• Agile • Sociocracy • Beyond Budgeting • Open Space
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WHAT OTHER STREAMS OF DEVELOPMENT EXIST?
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● Egalitarian methods ○ Agile
○ Beta Codex
○ Beyond Budgeting
○ Circle Forward
○ Deep Democracy
○ Holacracy
○ Sociocracy
○ Sociocracy 3.0
○ World Blu
○ Exponential Organizations
● Specific
implementations ○ Damenhur
○ Gore
○ Mondragon
○ Northern Tomato
○ Semco
○ Spotify
● Philosophies ○ Senge - The Necessary
Revolution
○ Spiral Dynamics (includes
teal organizations)
○ Theory U
● Learnings from
facilitation techniques ○ Open Space
○ World Cafe
SOCIOCRACY
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HIERARCHIES…
IT-Department
Marketing & Banking Operations Department
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CIRCULAR HIERARCHIES
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OPEN SPACE
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ORIGINS OF BEYOND BUDGETING
•Developed by CFOs
•Caused by two-fold
experiences
●Request for too much money
●Request for not enough money
•Developed several principles and recommendations
DEFINITION
•Budgeting ●Generic for command & control management
•Beyond Budgeting ●Beyond command & control ●Toward a management model that is more empowered and adaptive
MORE CONCRETE: MAIN PRINCIPLE
•Good target has to be ambitious
•Forecast / estimation is for closing gap to goal
•Forcing a target and a forecast into one number is almost guaranteed to result in:
●either a bad target or
●a bad forecast
MORE CONCRETE: RECOMMENDATION
•Budgets need to be more flexible
●Rolling budget
●Event-based budget
ADAPTED COMPANY-WIDE VALUES
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SELF-ORGANIZATION
• Use accountable cross-functional teams ● At different levels of abstraction ● With a common aim that ● Govern through shared values not through rules
• That ● Select themselves ● Follow their passion ● Are responsible for whole story ● And hold retrospectives
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TRANSPARENCY
Create transparency for all involved in two directions: • Provide information
● On progress and delivery related to common aim • Lower barriers to information needed for
● Making informed decisions ● Self-regulation, innovation, and learning
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CONSTANT CUSTOMER FOCUS
Focus wide on every aspect of the company: • Product & Process
● Common aim ● MVP ● User Stories & personas ● Value stream analysis ● Feedback on each production step
• Structure & Strategy ● Includes owners (shareholders) ● Value centers & support service teams ● Rolling or event-based budgeting
• Individual contributions / people ● Passion guides contribution ● Relative individual objectives not fixed ones
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CONTINUOUS LEARNING
• Always ● Learning/contributing to other’s learning guides all work
• Get Feedback, ● Retrospectives ● Role improvement reviews with peer feedback ● Separate individual objectives from bonuses
• And Adapt ● Your plans as you develop
• Development = learning (training), teaching, researching in interaction with your aim
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BOSSA NOVA: OVERVIEW
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Value\Stream Beyond Budgeting Open Space Sociocracy Agile
Self-
Organization
Govern thru shared values
not rules
Accountable teams for
common goal
Self-Selected teams
Individuals follow
their passion
Common aim
Equivalence
Levels of abstraction
Retrospectives
Cross-functional
teams
Transparency Open info for self-
regulation, innovation,
learning
All information is
accessible by
interested people
No insurmountable
barriers to getting
needed info
Progress &
delivery
Constant
Customer
Focus
Value centers & support
service teams
Rolling/event budgets
Relative not fixed
individual objectives
Customer focus is
always combined
with passion
Common aim
Feedback on each
production step
Include owners/
shareholders
MVP
User stories &
personas
Value stream
analysis
Continuous
Learning
Indiv objectives not tied to
bonuses
Holistic perf evaluation
Learn & contribute
to learning of others
guides all work
Development =
learning, teaching,
research ⇔ aim
Adapt plans per
feedback
Retrospectives
BOSSA NOVA IN YOUR CONTEXT
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BIBLIOGRAPHY & SUGGESTED READING
•http://www.infoq.com/articles/agile-teams-sociocratic-solution
•http://www.infoq.com/articles/planning-controlling-complex-projects-beyond-budgetting
•Beyond Budgeting homepage: http://bbrt.org
•Bogsnes, Bogsnes: Implementing Beyond Budgeting. Unlocking the Performance Potential. Hoboken, NJ: Wiley.
•Buck, John & Villines, Sharon: We the People. Consenting to a Deeper Democracy. Washington, D.C.: Sociocracy.info
•See how Valve is using Open Space (handbook for employees): http://media.steampowered.com/apps/valve/Valve_ Handbook_ LowRes.pdf
•Whitehurst, John: The Open Organization: Igniting Passion and Performance. Harvard Business Review Press.
•http://www.agilefluency.org
•Owen, Harrison: Open Space Technology. A User’s Guide. Berrett-Koehler Publishers
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THANK YOU SO MUCH! Jutta Eckstein, @juttaeckstein [email protected] http://JEckstein.com
John Buck [email protected] http://SociocracyConsulting.com
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