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AGILE and the ENTREPRISE CULTURE
BY Etienne Laverdière & Hugo Villeneuve
AGILE TOUR MONTREAL 2014
2014
15.11
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 03
Our
Ag
ile fo
rt
Leading an agile project of 60 pers. inside a waterfall project of 500+ pers.
Cultural Clash
4
IT Projects are getting more complex, but our management approach is still the same
04
1:1
Ra
tio W
BS
5
Complexity Factors in Large Enterprise Cynefin Framework Organizational Culture
Lessons Learned and recommendations
05
Organizational Structure and
Culture Complexity
Agenda:
6
Complexity
06
CULTURE & STRUCTURE COMPLEXITY LESSONS LEARNED RECOMMENDATIONS
ENTREPRISE STARTUP
Context
07
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY LESSONS LEARNED RECOMMENDATIONS 09
CULTURE & STRUCTURE COMPLEXITY LESSONS LEARNED RECOMMENDATIONS 10
Complicated: Knowable
Simple: Known
Cause and effect is obvious to all
« Best Practices »
Complex
Chaotic
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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 »
CULTURE & STRUCTURE COMPLEXITY 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 »
CULTURE & STRUCTURE COMPLEXITY LESSONS LEARNED RECOMMENDATIONS 14
« Good Practices »
« Best Practices » « Crisis management »
Complicated: Knowable Complex
Chaotic Simple: Known
« Emergent Practice »
Follow a plan
Build a plan Build a solution
Adapt to a context
Act
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY LESSONS LEARNED RECOMMENDATIONS
Traditional management Agile
16
Agile works well in a complex domain.
Traditional management works well in a complicated domain
Complicated: Knowable Complex
CULTURE & STRUCTURE COMPLEXITY 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.
CULTURE & STRUCTURE COMPLEXITY 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.
CULTURE & STRUCTURE COMPLEXITY LESSONS LEARNED RECOMMENDATIONS
Agile
19
There is a culture clash between Agile and the traditional management style
Traditional management
Complicated: Knowable Complex
Chaotic Simple: Known
20
Culture & Organizational Structure
20
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
Lessons Learned
29
CULTURE & STRUCTURE COMPLEXITY 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: Knowable Complex
CULTURE & STRUCTURE COMPLEXITY 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
Recommendations
32
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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!
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
CULTURE & STRUCTURE COMPLEXITY 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
2007 2014
Some readings…
38
Some companies…
FAVI, Foundry, France
39
Questions ?
39
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