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Agile Introduction for Leaders
Learning Objectives • Gain an understand of what is driving the need for
agile
• Learn the fundamentals of agile: values, principles and practices
• Learn what managers and leaders need to do for agile success
– Assess teams readiness
– Learn eight risk points
• Discuss Radical Management as a flavor of agile specific for running an operation
Agenda • Why is Disruption the new norm
• Looking at why leadership and workers are so ill- prepared
• Old rules driving project success are breaking down
• Agile breakdown (high-level and quick)
• Leaders Agile tool kit
– Self organization
– Radical management
– Lean Start-up
DISRUPTION Section One
Enterprise Challenges Driving Disruption
• Speed – Rapid pace of disruption and change
– Can’t handle change, lose and lose quickly
• Productivity Challenge – Key to profitability in slow growth environment
• Finding Competitive Advantage – Customer knowledge (internal and external)
• Product Creation hit or miss – Three elements of product creation
• Competitive understanding, organizational capabilities, creating value
• Growing, Managing and Retaining Knowledge Workers – Generation “Y” dilemma (Millennial)
What we want: life to be easier
But the Reality is!
Something to Consider… “The Black Swan” impact of the highly improbable
Nassim Nicholas Taleb ISBN # 978-0-8129-7381-5
Black Swans being unpredictable, we need to adjust to their existence
(rather than naively try to predict them). There are so many things we can
do if we focus on what we don’t know…We will see that, contrary to social-
science wisdom, almost no discovery, no technologies of note, came from
design and planning—they were just Black Swans. The strategy for the
discovers and entrepreneurs is to relay less on top down planning and focus
on maximum tinkering and recognizing opportunities…free markets work
because they allow people to be lucky, thanks to aggressive trails and
error…the strategy is, then, to tinker as much as possible…
IMPACT ON HOW WE MANAGE Section Two
Bad Leaders/Disengagement
• From CLO Magazine, April 2014 “When the Boss Needs People Skills”
– At least 50% up to 70% of managers fail
– Only 30% of US workers are engaged
– Nearly 1 in 5 are actively disengaged
• New reports say 80% are disengaged
• “Engagement is the single most detrimental problem in business”
– Engagement affects customer ratings, profitability, productivity, turnover, safety incidents, absenteeism and theft
• Adding up to an estimated $300 billion in lost revenue every year
Characteristics of Knowledge Workers and their Work
Knowledge Workers
• Higher than average intelligence – Most likely smarter than leaders of
the company
• Do not want to be micro-managed
• Have some type of management experience
• Have some type of project experience
• Lack business financial skills (accounting side of business)
Their Work
• 24 by 7 meaning some level of work is always there
• It is creative
• Subjective, success / measurement is not black and white
• It is team orientated
• Time sensitive
• Usually part of a project or change initiative
T-SHAPED WORKERS Section Three
Why We are Here: Major Disruption in Workers Needed
It took 77 months to get to pre recession employment levels with the last recession, it normally takes 18 months
The % of management positions has decreased from 28% of the economy in 2000 to 24% in 2010
Positions requiring creativity and problem solving have increased by 4.8M from 2001 to 2009
Knowledge workers are engaging in creativity and problem solving, and they have specific skill requirements
T-Shaped: What Workers need to Become
\\“T-Shaped Professional
www.tsummit2014.org
Managers and Leaders need to Become…
…Managers and Leaders not measures, reporters, and doers
What is going to be demanded:
– Ability to grow people
– Break down barriers and road blocks
– Set vision and define direction
– Set goals
– Communicate goals / adjust vision and direction
– Reset goals
AGILE Section Four
How do I get what I want from my efforts?
Where does software development fit?
New Project Law: s + s + $ ≠ how Agile sees project world
Schedule: Scope: Budget:
‣ Project delivered within the timeframe originally identified
‣ No date slips
‣ Every milestone achieved
‣ Everything originally requested is delivered
‣ Everything delivered works perfectly as the customer requested, no bugs
‣ Did not spend a single cent more than originally estimated to spend
‣ Did not need any additional resources, hardware, etc. throughout entire project
on time all scope within budget
≠
happy customer
+ +
What is Agile?
• It’s a way of working differently • Set of guiding principles • Resulting in a set of practices
• Iteration • User stories • Burn down chart
• Practitioners have productized them into flavors: • Scrum • Lean • Extreme Programming • SAFe (Scaled Agile Framework)
The Foundation…
What is Agile? Guiding Principles
Waterfall vs. Agile Basics
Important Observation
VS. Plan-driven Development Adaptive Development
Agile Mindset
Agile is really a mindset… a different way to think about the work.
DSDM.org, 1994
DEFINING AGILE Why does Agile work?
Agile Readiness Assessment
Traditional Models Agile Model
Punish Problems Problems are Treasures
Best Practices Shu-Ha-Ri (Continuous Improvement)
BDUF (Big Definition Up Front) JEDI (Just Enough Definition Initially)
Silo’s and Specialization Blur the lines – We’re all team members
Command and Control Self-organizing teams, Servant Leadership - Empowerment
Work the Plan The Plan will Evolve
Individual Performance Team Performance
Check Quality Out Build Quality In
Death March is a Tool Maintain a Constant Pace
Shoot for the stars and hit the moon Only commit to a realistic amount of work
PM is One-Throat-to-Choke Team Accountability
A Project Manager Assigns the Work Team Volunteers for the Work
Choose the familiar way to communicate Choose the most effective and efficient way to communicate
Focus on getting tasks done Team has full ownership of the Goal
Sequential Development Iterative and Incremental
22
Why Agile?
Agile Practices / Concepts
• Product Owner / Scrum Master
• Daily Scrum aka Daily Stand Up
• Agile Planning / Estimating
• Sprint aka Iteration
• User Story
• Task Board
• Burn down / Velocity
• Retrospective
The Mechanics of Scrum
Product
Backlog
2-4 Weeks
Daily
Sprint
Backlog Product
Increment
Product Vision /
Roadmap
Product
Release
Retrospective
Process Overview
Agile Benefits
Agile Development Value Proposition
Agile Development Traditional Development
VISIBILITY ADAPTABILITY
BUSINESS VALUE RISK
Copyright 2004 - 2006 VersionOne, LLC
SELF-ORGANIZED TEAMS Section Five
Self-Organized Teams
What is it in Reality
• A way to organize a group
• Allows decision making / problem solving to happen at the source of the work
• Increases empowerment which should increase productivity and morale
• Significantly disrupts traditional management
• Some call it Holacracy
How is Autonomy Driven, Two Way Street?
• Shared Guiding Principals
• Common goals
• Communication
• Trust and Accountability
• Self-Esteem
• Great resource – ZAPP! The Lighting of Empowerment:
How to Improve Productivity, Quality and Employee Satisfaction
(Byham & Cox ISBN 10:0679400427)
Self-Organized…Being an Adult?
• Being treated like an adult
• Acting like an adult
– Adult definition
• N: One who has attained maturity or legal age
• Adj: Fully developed and mature
– Adulthood
• The state (responsibility) of a person who has attained maturity
• All ties to autonomy
Agile Risk Points 1. Workers don’t have the skills to self-organize 2. No change management plan in place, specifically
around communicating the whys and hows 3. Weak business unit engagement leading to no
Product owner 4. Product Owner designate has no authority 5. Iteration cycles pushing way past the maximum 4
week length 6. Teams fixates on perfecting each build, get mired in
mud of rework 7. Team never properly learns story point estimating 8. Team doesn’t learn how to change from role to work
based planning
AGILE FLAVORS FOR MANAGEMENT
Section Six
Radical Management
• Agile Moving to Leadership and Management
• Basically a Productized Version of Agile for Managing, Based on Agile Guiding Principals http://www.forbes.com/sites/stevedenning/2012/04/09/the-best-kept-management-secret-on-the-planet-agile/
• Five Foundational Principals of Radical Management
1. From maximizing shareholder value to maximizing custom delight
2. Manager from controllers to enablers
3. Work organized bureaucratically to work organized around customer outcomes
4. From straight economic value to that plus transparency, continuous improvement and sustainability
5. From top-down command communication to conversations
Radical Management: Seven Principles of Continuous Innovation
1. Focus work on delighting the client
2. Do work through self-organized teams
3. Do work in client driven iterations
4. Deliver value to clients with each iteration
5. Be totally open about impediments
6. Create a context for continuous self-improvement
7. Communicate through interactive conversations
Lean Start Up
• Based on the iterative approach • More tests, less structure around tests
• Let market provide feedback • Continuously improved or kill based on feedback • Be comfortable with failure, learn and adapt
• Incrementally invest • Provide month to month operating capital only • Wait for initial round of funding until product as been
proven out
• Can do this in large companies (intrapreneur) • Why does this approach work
Learning Objectives • Gain an understand of what is driving the need for
agile
• Learn the fundamentals of agile: values, principles and practices
• Learn what managers and leaders need to do for agile success
– Assess team’s readiness
– Learn eight agile risk points
• Discuss Radical Management as a flavor of agile specific for running an operation
Thank you!!! I appreciate your time.
David Mantica
President, ASPE Training