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Agile and the Enterprise Culture

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Agile is an ideal organizational model to manage complex domains, but it does question many structural and cultural assumptions found in a traditional management culture. This presentation shows how transforming a large enterprise towards Agile requires not only a shift in methodology but also a shift in beliefs. We examine the limits of implementing Agile into a traditional enterprise and explore some transformational approaches that address these limits.

Publicada em: Negócios

Agile and the Enterprise Culture

  1. 1. AGILE and the ENTREPRISE CULTURE BY Etienne Laverdière & Hugo Villeneuve AGILE TOUR MONTREAL 2014 2014 15.11
  2. 2. 2  02 ETIENNE LAVERDIÈRE PMP, PMI-ACP, CSP, ICP-ACC, ICP-ATF 15 years in IT Agile Coach, Tech Lead Digital Tango ltée @elaverdi HUGO VILLENEUVE Engineering graduate 15 years in IT Tech Lead Start up Co-Founder Enterprise Architect Desjardins Bank @hugovilleneuve Presented at Agile Tour Montreal 2014 in French : http://goo.gl/69lvBa
  3. 3. 3  03 OurAgilefort   Leading an agile project of 60 pers. inside a waterfall project of 500+ pers. Cultural Clash  
  4. 4. 4   IT Projects are getting more complex, but our management approach is still the same 04 1:1RatioWBS  
  5. 5. 5   Complexity Factors in Large Enterprise Cynefin Framework Organizational Culture Lessons Learned and recommendations 05 Organizational Structure and Culture Complexity Agenda:
  6. 6. 6   Complexity 06
  7. 7. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS ENTREPRISESTARTUP Context 07
  8. 8. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS More Stakeholders More variability More systems and interconnections More technical knowledge More requirements, higher expectations More innovation and new technologies More Legacy Systems and technical debt 08 Complexity Factors in a large Enterprise
  9. 9. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 09
  10. 10. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 10 Complicated: Knowable Simple: Known Cause and effect is obvious to all « Best Practices » Complex Chaotic
  11. 11. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 11 Cause and effect requires analysis, investigation and/or the application of expert knowledge « Good Practices » « Best Practices » Complicated: Knowable Simple: Known Cause and effect is obvious to all Complex Chaotic
  12. 12. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 12 Cause and effect can only be perceived in retrospect, but not in advance « Good Practices » « Best Practices » Complicated: Knowable Simple: Known Cause and effect requires analysis, investigation and/or the application of expert knowledge Cause and effect is obvious to all Complex Chaotic « Emergent Practice »
  13. 13. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS No relationship between cause and effect 13 « Good Practices » « Best Practices » Complicated: Knowable Simple: Known Cause and effect can only be perceived in retrospect, but not in advance Cause and effect requires analysis, investigation and/or the application of expert knowledge Cause and effect is obvious to all « Crisis management »   Complex Chaotic « Emergent Practice »
  14. 14. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 14 « Good Practices » « Best Practices »« Crisis management »   Complicated: KnowableComplex Chaotic Simple: Known « Emergent Practice » Follow a plan Build a plan Build a solution Adapt to a context Act  
  15. 15. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 15 « Good Practices » « Best Practices » 16%   38%   25%   18%   Complicated: Knowable Simple: Known « Crisis management »   Complex Chaotic « Emergent Practice » Task repartition in a standard IT Project   Joseph Pelrine, On Understanding Software Agility - A Social Complexity Point Of View, 2011  
  16. 16. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Traditional managementAgile   16 Agile works well in a complex domain. Traditional management works well in a complicated domain Complicated: KnowableComplex
  17. 17. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 53% Inability to change organizational culture 42% General resistance to change 17 Barriers to further agile adoption Trying to fit agile in a non- agile framework 35% Version One: Agile Survey 2013  *respondents where able to select multiple options.  
  18. 18. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS SAFE DAD Vocabulary None of these tools address the cultural aspect Poker Planning 18 53% Inability to change organizational culture 42% General resistance to change Barriers to further agile adoption Trying to fit agile in a non- agile framework 35% Version One: Agile Survey 2013  *respondents where able to select multiple options.  
  19. 19. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Agile   19 There is a culture clash between Agile and the traditional management style Traditional management Complicated: KnowableComplex Chaotic Simple: Known
  20. 20. 20   Culture & Organizational Structure 20
  21. 21. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Abraham   Maslow   (1908-­‐1970)   "The  Emergent,  Cyclical,     Double-­‐Helix  Model  Of     The  Adult  Human   Biopsychosocial   Systems"   C.  W.  Graves   (1914-­‐1986)   Future  of   Management   Gary  Hamel   21 C. W. Graves Model Frédéric  Laloux   ReinvenEng  OrganizaEons  (2014)   Abraham   Maslow     Hierarchy  of   needs  
  22. 22. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 22 C. W. Graves « The Emergent Cyclical Levels of Existence Theory » • Each level represents a way of thinking, a world view, a paradigm of thought • They are applicable to individuals and organizations • Higher levels include and transcend lower levels • Evolution is sequential, one cannot jump a level • No level is better, rather a level is more appropriate for a particulate context • We cannot force change to another level. We can only ease a transition by changing the environment Systemic Conformist and Traditional Egocentric Clannish Meritocratic and Results-driven Communitarian and Relativist
  23. 23. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Characteristics • Order and stability-driven • Hierarchical structure and processes • Clear roles and responsibilities • Casts and fixed privilege • Inflexible and dogmatic • Bureaucratic 23 Conformist and Traditional Systemic Conformist and Traditional Egocentric Clannish Meritocratic and Results-driven Communitarian and Relativist
  24. 24. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Characteristics • Achiever and results-driven • Factual and rational vs. emotional • Innovative and progressive • Short term and local perspective • Individualistic and competitive • World divided between winners and losers 24 Meritocratic and Results-driven Systemic Conformist and Traditional Egocentric Clannish Meritocratic and Results-driven Communitarian and Relativist
  25. 25. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Characteristics • Team work and harmony-driven • Equality, relativism and inclusiveness • Focus on culture and shared values • Team consensus • Slow and ineffective at scale • « Not-invented here » syndrome • Against hierarchical roles 25 Communitarian and Relativist Systemic Conformist and Traditional Egocentric Clannish Meritocratic and Results-driven Communitarian and Relativist
  26. 26. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS In Summary 26 Communitarian and Relativist Meritocratic and Results-driven Conformist and Traditional « Everyone in their place. We must follow the process » « Own your place. Find a way to deliver results » « You have your place. Lets find a solution together » Agile   Tradional Management   Operational Management  
  27. 27. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 27 Agile implementation without a cultural change can only be partial Agile implementation by culture Conformist and Traditional: Comprehensive  documentaGon  over  working  soJware   Following  a  plan  over  responding  to  change   Processes  and  tools  over  individuals  and  interacGons   Meritocratic and Results-driven:   Contract  negoGaGon  over  customer  collaboraGon   Working  soJware  over  comprehensive  documentaGon   Communitarian and Relativist: Individuals  and  interacGons  over  processes  and  tools   Customer  collaboraGon  over  contract  negoGaGon   Breddel, Cultural Change with Spiral Dynamics, 2012; Spayd, Coaching Agile Enterprise, 2014
  28. 28. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Each level improves the capacity to manage more complexity The level of complexity in IT projects forces organizations to modify their management styles from a hierarchical command & control to a pluralist, collaborative and adaptive mindset. An Agile transformation is a Cultural change. -50,000 Aujourd'hui 28 Organizational Culture Evolution
  29. 29. 29   Lessons Learned 29
  30. 30. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Agile   Traditional Management   30 Observation 1: Traditional management is unaware of other types of knowledge domains and therefore imposes a single management style for all type of problems. Operational Management   Complicated: KnowableComplex
  31. 31. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS 31 Martine R. Haas: The Double-edged swords of autonomy and external knowledge, 2010 Local  efficiency   Scrum   Team   Strategic   efficiency   External   Knowledge   Tasks   Team autonomy impacts: •  Higher local efficiency, lower strategic efficiency •  Replication of know solutions •  « Groupthink » and « Not-invented here » phenomena Observation 2: Team autonomy and alignment must be balanced with appropriate governance processes. Team autonomy at large scale
  32. 32. 32   Recommendations 32
  33. 33. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS To align autonomous teams - develop a systemic governance •  Use the Enterprise Architecture to help align products and vision •  Use Communities of Practices to align methodologies and technical skills •  Use an Agile PMO to structure these communities •  Use “Principles” to guide and facilitate decision making Systemic perspective 33 Medium and large-sized enterprises
  34. 34. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS EA Principles defined by Amazon CEO Jeff Bezos: EA Principles examples 34 ①  You build it, you run it. ②  All teams will henceforth expose their data and functionality through service interfaces. Teams must communicate with each other through these interfaces. ③  There will be no other form of interprocess communication allowed (no direct linking, no shared-memory model, no back-doors whatsoever). ④  It doesn't matter what technology they use. (Jeff Bezos doesn't care.) ⑤  All service interfaces, without exception, must be designed from the ground up to be externalizable. That is to say, the team must plan and design to be able to expose the interface to developers in the outside world. No exceptions. ⑥  Anyone who doesn't do this will be fired. Thank you; have a nice day!
  35. 35. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Medium and large-size enterprise Bimodal approach Mode-2 : Innovation, agility, short iterations Client focused Agile and lean gravity center Mode-1 : Standardization and predictability Stability, order and cost control Stage-based and traditional management gravity center Two models of Agile Transformation at scale 35 Meritocratic and Results-driven Communitarian and Relativist e.g.. SCRUM Solution 1: Build a bi-modal enterprise. To avoid a cultural clash Gartner: Bimobal stragegy, 2014
  36. 36. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Spin-Off 36 Solution 2: Start an independent « agile & systemic » company. Medium and large-size enterprise Bimodal approach Two models of Agile Transformation at scale Meritocratic and Results-driven Communitarian and Relativist e.g.. SCRUM Solution 1: Build a bi-modal enterprise. to avoid a cultural clash Gartner: Bimobal stragegy, 2014
  37. 37. CULTURE & STRUCTURECOMPLEXITY LESSONS LEARNED RECOMMENDATIONS Characteristics • Mission and principle-driven • Flexible and opportunist • Networked structure with groups autonomy • Each level of management has its place depending on the context • For decision making, the entire system is considered (e.g. l’Holacracy) • Decision supported by the entire organization • Sustainable structure and development • Systemic view: no opposition between emotions and rationality 37 Graves’ Systemic level for IT Systemic Conformist and Traditional Egocentric Clannish Meritocratic and Results-driven Communitarian and Relativist
  38. 38. 38   2007  2014   Some readings… 38 Some companies… FAVI,  Foundry,  France  
  39. 39. 39   Questions ?     39
  40. 40. 40       Russell L. Ackoff: From Mechanistic to social Systemic Thinking, System Thinking in Action Conference, 1993 Dajo Breddel: Cultural Change with Spiral Dynamics, http://tinyurl.com/qdjn5yf, 2012. Chabreuil: La spirale dynamique, Interedition, 2008. Cowan & Beck: Spiral Dynamics: Mastering Values, Leadership and Change, Wiley-Blackwell, 1996 Martine R. Haas: The Double-edged swords of autonomy and external knowledge: Analyzing team effectiveness in a multinational organization in Academy of Management Journal 2010, Vol. 53, No. 5, University of Pennsylvania, 2010. Gary Hamel and Bill Breen: The Future of Management, Harvard Business Review Press, 2007 Clare W. Graves: Levels of Existence: an Open System Theory of Values in Journal of Humanistic Psychology 1970; 10, 131 Frederic Laloux: Reinventing Organization, Nelson Parker, 2014 References 40 Joseph Pelrine: On Understanding Software Agility - A Social Complexity Point Of View in E:CO Issue Vol. 13 Nos. 1-2, 2011 Snowden, Boone: A Leader’s Framework for Decision Making in Harvard Business Review, Novembre 2007 Kurtz. Snowden, The new dynamics of strategy: Sense-making in a complex and complicated world, http://tinyurl.com/ldgsa2x, 2003 Michael Spayd: Time’s arrow: The evolution of complexity in Downloading the Integral Operating System (IOS) A Framework for Agile Enterprise Transformation, 2014 http://tinyurl.com/o74fqdy Michael Spayd: What would it mean to Coach an Agile Enterprise?, http://tinyurl.com/peozpk8, 2014 * * * Deloitte: Scalling Edge, A Pragmatic Pathway to broad internal change, 2012 Gartner: Bimobal stragegy, http:// www.gartner.com/newsroom/id/2865718, 2014 Version One: 8th Annual State of Agile Survey 2013, http://www.versionone.com/pdf/2013-state-of- agile-survey.pdf

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