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Beyond Agile - Adaptive Organizations for the 21st century by Mike Leber

Agile methods have become a de-facto standard in software development. Software is everywhere today - so Agile has been a big step for the industry, though not yet achieved by all. However, its still not enough. The business landscape has changed dramatically over the past 10-15 years. Startups have grown into dominant businesses. And the digital economy is flooding any business corner across the globe. All of this is fostering exponential growth of new ideas, leading very quickly to exponential change. While the future appears even faster, predicting it has become harder. And the only thing we know: what we need for this are more adaptive businesses, end-to-end Business Agility. In this talk we will explore the adaptive organization for the 21st century.

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Beyond Agile - Adaptive Organizations for the 21st century by Mike Leber

  1. 1. Beyond Agile Adaptive Organizations for the 21st Century Mike Leber Agile & Lean Coach Twitter: @michael_leber http://agileexperts.at
  2. 2. @AgileExperts | http://agileexperts.at The Case for Adaptive Organizations Focusing on Value – Sensing the Environment – Constantly & fast Adapting Current State Vision Future is still uncertain, but arriving faster than ever bringing change at ever increasing speed! We need end-to-end Value Creation!
  3. 3. @AgileExperts | http://agileexperts.at Adaptive Organization Customer & Product Discovery Leadership Operational Excellence Capability baseline for a fitter Business Understanding our business and fast changing markets better Providing engaging structures and movement for adaptation
  4. 4. @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
  5. 5. Niklas'Modig,'PärÄhlström
  6. 6. Niklas Modig, Pär Ählström
  7. 7. Doing versus Being Practices Principles Values
  8. 8. @AgileExperts | http://agileexperts.at Organizational Improvements Emerge ChangeRequests Mean Tail Left Shift Right Shift Growth of Capabilities Copyright: Lean Kanban University, David J Anderson
  9. 9. @AgileExperts | http://agileexperts.at Potentials for Operational Improvement Time (in Quarters) #CRs 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.TimeforSolution indays 25 75 125 90% 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 and predictability of system Copyright: Lean Kanban University, David J Anderson
  10. 10. @AgileExperts | http://agileexperts.at 3 Major Focus Points Sustainability § Limit Work in Process § Avoid overburdening § Gain more focus § Understand risk, capability § Allocate capacity § Increase predictability Survivability § Lead business § Make informed strategic decisions § Increase the right capabilties § Drive feedback loops Service-Orientation § Drive out variability across an organization § Make educated management decisions § Scale out business See: „Kanban Agendas“ via Lean Kanban University
  11. 11. Team vision and discipline over individuals and interactions (over processes and tools) Validated learning over 
working software (over comprehensive documentation) Customer discovery over 
customer collaboration (over contract negotiation) Initiating change over 
responding to change (over following a plan) Kent Beck’s Beyond Agile Manifesto http://www.forbes.com/sites/stevedenning/2011/05/04/innovation-applying-inspect-adapt-to-the-agile-manifesto
  12. 12. • „...age of hypothesis testing instead of feature development...“ • „... a new world opening up in 2015- 2016“
  13. 13. Agile Methods alone don‘t make a Business Agile
  14. 14. Eric Ries Build – Measure - Learn You can do everything right and still be totally wrong!
  15. 15. ? „In the Next 10 Years, 40% of the Fortune 500 Companies will be gone.“ John M. Olin School of Business, Washington University
  16. 16. Organizations - Not always what we think Exaptation Paypal First built for Palmpilots Twitter Was a podcasting company Freshbooks Was invocing for a web design firm Wikipedia Was to be written by experts only Hotmail Was a database company Autodesk Made desktop automation Everything is going exponential in VUCA World Evolution Disruption Flickr Was going to be an MMO* * Massively-Multiplayer-Online Game Hyper-Collaborative Global Economy
  17. 17. @AgileExperts | http://agileexperts.at Innovator‘s Dilemma https://osmoticinnovation.wordpress.com/tag/innovators-dilemma/
  18. 18. @AgileExperts | http://agileexperts.at 3 Horizons of Business Playgrounds „The Alchemy of Growth“ Merhdad Baghai, Stephen Coley, and David White, 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 revenue growth + tomorrow‘s cash flow Options for future high-growth businesses Today‘s cash-flow
  19. 19. It is not necessary to change. Survival is not mandatory. W.E. Deming
  20. 20. @AgileExperts | http://agileexperts.at Existing Biz ModelsNew Biz Models Continuous Exploration Continuous Improvement Leadership Behaviors Values Structures Exploration Strategy Innovation Ideas Portfolio Exploitation Options Balance Commitment 2 Engines for Growth
  21. 21. @AgileExperts | http://agileexperts.at Existing Biz ModelsNew Biz Models Leadership Behaviors Values Structures Exploration Strategy Innovation Ideas Portfolio Exploitation Options Balance Commitment Develop Sensors for Adaptation § Flow efficiency and Slack Time over Capacity Utilization § Validated Learning over Mass of Deliverables § Understanding Stakeholders and Business Risk over Blaming § Risk Aware Decisions over HIPPO Enforcement § Organizational Liquidity over purely Scaling up a Business
  22. 22. @AgileExperts | http://agileexperts.at Innovation ≠ Incubator Innovation ≠ Accelerator Innovation ≠ Startup Innovation ≠ Lean Anything Innovation ≠ Reorganization These are all physical places to do innovation Steve Blank
  23. 23. @AgileExperts | http://agileexperts.at Innovation Succeeds • Where there is a path to adoption • When it fits into the overall mission and strategy • Because it performs, has metrics, … • It is managed as an innovation portfolio • And has management support (the spirit of “yes”) Continuous Innovation requires New Management Tools Steve Blank
  24. 24. @AgileExperts | http://agileexperts.at Discovery and Exploitation „Lean Enterprise“, Jez Humble, Joanne Molesky, Barry O‘Reilly
  25. 25. @AgileExperts | http://agileexperts.at http://blog.gardeviance.org/2015/03/on-pioneers-settlers-town-planners-and.html Pioneers, Settlers, Town Planners Simon Wardley
  26. 26. @AgileExperts | http://agileexperts.at Dual Operating System John Kotter John P. Kotter
  27. 27. Gary Hamel, American Management Expert Right now, our companies have 21st century Internet enabled business processes, mid 20th century management processes, all built atop 19th century management principles.
  28. 28. @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
  29. 29. @AgileExperts | http://agileexperts.at Change is speeding up Digitalization Industrie 4.0
  30. 30. @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
  31. 31. @AgileExperts | http://agileexperts.at Exponential Organizations http://frankdiana.wordpress.com/2015/04/01/exponential-organizations/ Salim Ismail, Michael S. Malone, Yuri van Geest We need to shape better Environments for People Collaboration
  32. 32. Finally it is all about People
  33. 33. @AgileExperts | http://agileexperts.at Engaging Leadership Jurgen Appelo
  34. 34. Multiple Purpose Dimensions Copyright: Stephen Parry Business Purpose People Purpose Customer Purpose Common Purpose „We all work for the same Company, but we live In different worlds“ Thomas Queisser Purpose Measurement Acitvity !? ? ?
  35. 35. Human beings are born for Adaptiveness Our old Systems eliminate this Gift
  36. 36. Carol Dweck Strong Opinions, weakly held Bob Johansen, Palo Alto Institute for the Future
  37. 37. @AgileExperts | http://agileexperts.at People do not generally fear change! People do not fear to work on challenges. What they very often miss, is a Trustful, Engaging and Inspiring Environment where they can Collaborate, Experiment, Learn, Grow.
  38. 38. @AgileExperts | http://agileexperts.at IUMRING TQ GQNGIUSIQNS What do you read? Copyright: Mike Rother
  39. 39. @AgileExperts | http://agileexperts.at IUMRING TQ GQNGIUSIQNS Our brain automatically fills in blanks, instead of saying to us “Sorry, I don’t know yet” Copyright: Mike Rother
  40. 40. @AgileExperts | http://agileexperts.at
  41. 41. Change that Fits „Lean Change Management“ Cycle by Jason Little @AgileExperts | http://agileexperts.at
  42. 42. Agenda for an Adaptive Organization • Outcome over Output • Educated Commitment • Managing Systems not People • Growing Vision, Purpose & Values • Leveraging Humane Potentials • Nurturing Creativity, Collaboration, Learning • Focused Experimentation • Challenging and Reinventing established Models @AgileExperts | http://agileexperts.at Disrupt or be disrupted
  43. 43. Adapt Keep growing by Reinventing @AgileExperts | http://agileexperts.at