agile leadership in the enterprise

© 2013 Trail Ridge Consulting, LLC

Agile Leadership in the Enterprise

Building Adaptive Organizations

@petebehrens


Agenda

✓ Current State of Enterprise Agility

✓ 3 Thriving Agile Enterprises

✓ Agile Leadership for the Enterprise


A world of change

1930 1950 1970 1990 2010

15 years

75 years

Waterfall

RAD

Agile

Spiral

Assembly Line

Lean

“The Power of Pull” (Basic Books, 2010)average life expectancy of companies in the 1937 S&P 500 Index

Corp

ora

te L

ife

Exp

ecta

ncy


A world of change

CEOs are attempting to create open and collaborative

culturesto encourage connection and learning

2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries


A world of change

2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries

CEOs have identified creativity and agility

as the

top leadership competencies


A world of change

A New Management Paradigmof imagination, exploration, experiment, discovery & collaboration

Steve Denning


Enterprise Agile Adoption - Barriers


Enterprise Agile Adoption - Issues


Enterprise Agile Adoption

Agile

Assis

tanc

e

Agility

Thrashing Agility

Rolling Agility

CULTURE

STRUCTURE

PROCESSOutside-In

Years0 1 2 3 4 5


Enterprise Agile Adoption

Years

Agility

0 1 2 3 4 5

Rolling Agility

Sustaining Agility

Thrashing Agility

CULTURE

STRUCTURE

PROCESS

Inside-Out


Current State of Enterprise Agility

✓ Change is constant & increasing

✓ CEO’s desire Enterprise Agility

✓ Enterprise Agility is hard togrow & sustain

Be aware of culture


Who am I?

1970 1980 1990 2000 2010

WaterfallRAD

Agile

RUP

Pete Behrens

Agility


Agenda





IT Create Culture

People

Learning

Cultivation

Growth

CREATEDo things first

Transformational Change


IT Challenges 2007

✓ Long delivery cycles

✓ Inconsistent product quality

✓Unsustainable development & support costs

Unsatisfied Stakeholders


IT Transformation

-75%

-59%

Development Costs

2007 08 09 10 11 2012

4156

738189100

Time to Market

2007 08 09 10 11 2012

253350

7583100

-74%

Defect Rates

2007 08 09 10 11 2012

26

57

92102100100

-78%

Support Costs

2007 08 09 10 11 2012

2241

5775

88100


IT Approach

Roles Teams Departments Locations

Integrated


Thriving Enterprise Agility

Years

3 months

1 month

Created an agile service for clients

IT leaders are now lead consultants

Delivery Cycle

2006 2008 2010 2012

12+ monthsOrganizational Agility

IT -> ServiceGlobal

Integration TeamsRole/Title

Changes

RemovedQA

Support2.0

WorkingSoftware


Compete Culture

Excellence

Never Satisfied

CompetitiveCOMPETEDo things fast

Fast Change


R&D Challenges 2006

✓ (Too?) Fast growth

✓ Complexity overwhelmed the system

✓ Internal competition of people and resources

Inability to Deliver


Transformation

2008 Scrum Gathering - Steve Greene

2001 2002 2003 2004 2005 2006 2007

Features Deliveredper Team

Days between Major Releases


Their Own Approach “All-in” fast Be the “Best” @ agile

Approach

Focus on “What”

Focus on “How”

LOWERED WIP Redefined 2 key roles Everything thru a team

© 2013 Trail Ridge Consulting, LLC© 2013 Trail Ridge Consulting, LLC

Established Regular Cadence Enterprise Release Train Cadence Enterprise Transparency

Approach

Release Cycle

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

SprintCycle

ReviewCycle

Shared Reviews

Shared Releases



2006 2008 2010 2012

R&DAgility

ITAgility

Tech OpsAgility

MarketingAgility

Every release delivered on time!

3 per year for 6 years0.5M Subscribers 6% Marketshare

3.5M Subscribers 16% Marketshare


Control Culture

Top Down

Rules & Process

Efficiency FocusCONTROLDo things right

Incremental Change


Challenges 2008

✓Overwhelming process overhead

✓ Long cycles with few change opportunities

✓Manufacturing mindset for software

Inability to Deliver


Enterprise Agility Bubbles

EnergyResearchHealthcare

Power& Water

Software Sciences

Computational Sciences

HealthcareSystems

HealthcareIT

SpecialtySolutions

Software Systems

Software Solutions

JV: Digital Pathology


Business Unit Focus

Build Time & CycleTechnical PracticesTest Automation

Short Release cyclesWater(Scrum)FallSAFe Release Trains

Integrated ResearchLean Startup - Fastworks


© 2013 Trail Ridge Consulting, LLC© 2013 Trail Ridge Consulting, LLC

Agile Transformation

Build Time11 hours ➜ 20 min400K hours saved annually

Release cycles24 ➜ 6 months60% projects agile50% release adaptation40% defect reduction18% test productivity

GE Software COE


Release Cycle

Build/Test Cycle



2008 2009 2010 2011 2012 2013

HC Specialty

HC IT EnergySSG

SoftwareSciences

WSJ: GE is a TOP 10 innovation companyGE

Venture

Lean Startup

ResearchSoftware

Source: 2013 Boston Consulting Group Study


3 Thriving Agile Enterprises

Create Culture Compete Culture Control Culture

TransformationalGrowth-orientedFlexible & Fluid

FastMarket-orientedCompetitive

IncrementalEfficiency-orientedHierarchical

Different Cultures = Different Agility= Different Leadership


Agenda




influences informs Leadership Agility


Agile Leadership for the Enterprise

influences informs

Leadership Agility

① Align Agility toward Culture

② Influence Culture toward Agility

③ Develop Leadership Agility


Aligning Agility and Culture

Competing Values Framework (CVF)

Assessing culture


Align Agility toward Culture

10

20

30

40

50

20

30

40

50

10

20

30

40

50

10

30

40

50

10

20

CreateCom

pete

Colla

bora

teCo

ntro

l

Exposing culture informs agility


Align Agility toward Culture

Role Definitions Silo Breakdowns

Balanced Matrix Team Structure

Shared Sprint Cycle Build & Test Automation

Short Releases Close Customers Tight Teams

Own ADM Best @ Agile Fast Change

SAFe Release Trains Water (Scrum) Fall Incremental Change

Structure

Process

Culture

Create Culture Compete Culture Control Culture



influences informs

Leadership Agility





Align Agility and Culture

10

20

30

40

20

30

40

50

10

20

30

40

50

10

30

40

10

20

Desired

Focus on rapid release and innovation

CreateCom

pete

Colla

bora

teCo

ntro

l


Influencing Culture toward Agility

10

20

30

40

50

20

30

40

50

10

20

30

40

50

10

30

40

50

10

20

CreateCom

pete

Colla

bora

teCo

ntro

l

Focus on speed, competency and repeatability


Influence Culture toward Agility

10

20

30

40

50

20

30

40

50

10

20

30

40

50

10

30

40

50

10

20

CreateCom

pete

Colla

bora

teCo

ntro

l

R&D

IT

Acquisition

Aligning subcultures for enterprise collaboration


Align Agility and Culture

Competence

Create

Control

Cultural awareness & visioning to engage people in the change



influences informs

Leadership Agility





Developing Leadership Agility

Expert Achiever Catalyst


Developing Leadership Agility

Expert Achiever Catalyst80% 10%

Leverage People Solve Problems Direct Their Plan Competitive Competent

Develop People Create Solutions Open to Change Inter-dependent Self & System Aware

Drives complianceLimits growth & flexibility Challenged by complexity

Drives shared ownershipCreates growth & flexibility Thrives in complexity


Develop Leadership Agility

Years

Agi

lity

0 1 2 3 4 5

Changeis constant is speeding up is hard

Agile LeadershipModels self-change Leads organizational change Coaches others in change

Sustaining Agility

Agile is a journey, not a destination



Understand & align agility

to/with culture

Change organizational

structures & flexibility

Focus on learning & expect ongoing

change

Agile Leadership