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HR + Agile = ?

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HR + Agile = ?

M. Pochinok, 2016

Totally new employee experience thanks to agile HR services

Assistance in getting Agile by transforming organizational structure,

culture, management model, and HR processes

HR + Agile =

2

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

3

M. Pochinok, 2016

What is Agile?

4

M. Pochinok, 2016

No top-down control

Everyone really cares of what they do

A team can initiate leader changeThe amount of salary is

determined by colleagues

Multiple small teams

No personal goals

The amount of salary has nothing to do with the number of

subordinates

No boss

Free communications flow

Presenter
Presentation Notes
Introduction, review of materials, and preparation recommendations

M. Pochinok, 2016

Agile

Leading transformation approach

M. Pochinok, 2016

What is Agile organization?

Results

Agile organization can quickly adapt to ever-changing conditions in a cost-effective way thanks to

• Fast implementation

• Continuous innovation

• Fast hit-and-miss learning

Inside

Every employee does right things in a right way thanks to

• Shared objective

• Self-organization and independence

• Collaboration

M. Pochinok, 2016

HR roles and tasks

Control

Spee

d

Start-up

Stagnation

Agile

Bureaucratic

Chaos

What is Agile organization?

Presenter
Presentation Notes
Role of HR is continuing to evolve Progressing towards the goals of self-service, improved strategic impact and reducing transactional processing effort In the Year 2000, e-business and the application of web-based HR solutions have substantially increased in emphasis New challenge for HR professional will be to define and develop their ‘strategic’ role in their organization

M. Pochinok, 2016

Agile: Myths and Reality

▪ Universal solution to solve all problems

▪ No documentation and planning

▪ No discipline

▪ Multiple reworking cycles

▪ Disregarding architectureand contradicting its requirements

▪ No testing

▪ Fast and disciplined implementation

▪ Better return on investmentthanks to frequent releases

▪ Iteration product development in small parts from the very beginning

▪ Minimized risks due to fast feedback from end users

▪ Business/IT alignment

Agile: Myths… … and Reality

M. Pochinok, 2016

Agile proved to be more efficient, transparent, high-quality, and cost-effective than traditional approaches

Source: Tenth State of Agile Report 2016 by VersionOne; 1,321 projects in Numetrics software database; examples of customers

-70%

Comparison of Scrum teams and teams using traditional software development

methods in terms of efficiency

Performance

Number of

defects perstandard

requirement

Date slippage

Development cost

+27%

More efficient distributed group management 80

Faster implementation 79

Better software quality 78

Lower project risks 77

Better coordination between business and IT 73

More disciplined design 70

Improved software maintainability 62

Better predictability 81

Better team morale and motivation 81

More transparent projects 84

Improved performance 85

Change management ability 87

Benefits achieved, % of respondents who noticed benefits

-30%

-40%

M. Pochinok, 2016

Companies have been using Agile for a long time

2000s 2010s1950s

2001 –Agile Manifest

M. Pochinok, 2016

Agile: it's not a process, it's the way we work

Peopleand interaction

Workingsoftware

Customercollaboration

Responding tochange

Processesand tools

Comprehensivedocumentation

Contractnegotiation

Following an initialplan

over

M. Pochinok, 2016

What is corporate culture?Our top priority is to meet customer

needs through regular and early value delivery

A team should regularly analyze possible ways to improve efficiency and make relevant adjustments to

its working style

Agile: it's not a process, it's the way we work

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

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M. Pochinok, 2016

Traditional approach Agile approach

Top-down functional siloes Bottom-up cross-functional teams and tribes built around client needs

Agile organization: key differentiators*)

……………

Scaling aimed at outcome, 100% efficiency, and focus

Structure

Processes

People

Operations model

*)From McKinsey presentation

M. Pochinok, 2016

Partial involvement in a project Full involvement in a project

Sprint result (working product) demonstration and key stakeholder feedback collection

Long-term bureaucratized process of getting requirement/result approvals from many customers

Decision making is escalated to management Decision making is delegated to teams

Traditional vs Agile

Many review meetings Regular stand-ups

Task setter hierarchy One task setter: product owner who makes decisions

M. Pochinok, 2016

Fixed requirements Requirements are updated as feedback is collected

Personal KPI Team KPI

Traditional vs Agile

Non-iterative development Continuous feedback and visible progress

Gantt chart with fixed sequence Scrum board supporting flexible priority management

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

18

M. Pochinok, 2016

Structure

…………

Tribe is a group of interrelated teams formed around a product (business objective) and responsible for business results

Team is a cross-functional working group of specialists having skills, tools, authorities necessary to create a product

Chapter is a group of specialists competent in the same field

*)From McKinsey presentation

Team 1 Team 2 Team 2 Team N

Chapter 1

Chapter 2

Chapter N

Tribe

M. Pochinok, 2016

Structure

TRIBEup to 150 personsor up to 1,500 if clusters are used

CLUSTERup to 150 personsoptionally

TEAMup to 10-12 persons

CHAPTERup to 10-12 persons

"If you can't feed a team with two pizzas, it's too large"

"Tribe/cluster size is limited by Dunbar's number, which is the number of people with whom one can maintain stable social relationships and is equal to 125-150"

Jeff Bezos, Amazon CEO

Robin Dunbar, a British anthropologist

20

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

21

M. Pochinok, 2016

Roles in Agile

…………

*)From McKinsey presentation

Team 1 Team 2 Team 2 Team N

Chapter 1

Chapter 2

ChapterN

Tribe

Tribe leader Tribe architect Agile coach Product owner Scrum master Chapter leader Team member

M. Pochinok, 2016

Roles in Agile

*)From McKinsey presentation

Team 1

Tribe leader is in charge of product management and achievement of tribe's business objectives

Tribe scrum master is in charge of release management, work synchronization, and process efficiency

Agile coach is in charge of Agile approach development and adoption

Product owner is in charge of releasing a product that meets customer needs

Scrum master is in charge of work process efficiency, collaboration with other teams and business units, and making a team more mature

Chapter leader is a member of one of the teams who is in charge of chapter administrative management and competence development

Team member is a specialist who participates in product creation within the scope of their competence

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

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M. Pochinok, 2016

Working in Agile

Super sprint is a tribe work cycle during which new versions of tribe products are created as a result of joint efforts of all teams

Fixed duration: 12 weeksConsists of 6 or 12 sprints of tribe teams depending on a selected cycle (1-week or 2-week sprint)

Sprint is a team work cycle during which a new version of a product is created

May include market research, product analysis, prototyping, development, testing, implementation, and debugging processes or any other processes, depending on the tasks setMust have a specific purpose and is completed by the delivery of a new value for a productFixed duration: 1 week or 2 weeks

TRIBE

TEAMS

Super sprint12 weeks

Sprint 12 weeks

Sprint 22 weeks

Sprint 32 weeks

Sprint 42 weeks

Sprint 52 weeks

Sprint 62 weeks

25

M. Pochinok, 2016

Tribe stream

Epic

Feature

Story

Description of customer experience with products or services

Working in Agile

Description of one element of customer experience or service

Example of entire customer experience with products or services

A way to achieve business results in a certain business segment

M. Pochinok, 2016

Working in Agile

TRIBE

TEAMS

Super sprint12 weeks

Sprint 12 weeks

Sprint 22 weeks

Sprint 32 weeks

Sprint 42 weeks

Sprint 52 weeks

Sprint 62 weeks

Sprint2 weeks

Tue Wed Thu Fri Mon Tue Wed Thu Fri Mon

T2

T3

T1 T4 T5

Daily stand-up

Team backlog update

Sprint planning Demonstration Retrospective

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M. Pochinok, 2016

Working in Agile

*)From McKinsey presentation

Super sprint planning is forming an objective and a backlog for the next super sprint, team planning of backlog implementation and result achievement

Sprint planning is forming sprint objective and backlog

Daily stand-up is a daily meeting to make a day plan and define problems

Backlog update is a meeting to plan the next sprint

Demonstration is a working product demonstration, confirmation of sprint objective achievement, and feedback collection

Retrospective is discussion of factors that hinder effective performance, team work process improvement

M. Pochinok, 2016

•Agile challenges•How to overcome them•What is the biggest challenge?

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

30

M. Pochinok, 2016

Culture

ORGANIZATIONAL CHANGES

Flattened structure

Cross-functional teams

High level of trust and authority delegation

New competencies and design thinking

Team goals

Evaluation by peers

Change of HR processes

M. Pochinok, 2016

T-shaped people

M. Pochinok, 2016

Culture. Personal qualities

Self-ogranization

Collaboration

Empathy

Acknowledgment of mistakes

Result-focused approach

Continuous self-improvement

Psychological safety

M. Pochinok, 2016

Culture

CHANGE OF ATTITUDE AND VALUES

• Client-centric approach

• De-bossing

• Team goals over personal ambitions

• Enthusiastic and responsible team members

• Work environment is not politically charged

• Friendly motivating working climate

• Team members are encouraged to try new things and not punished for mistakes

• Engaging in informal communication and immediate feedback

• Free communications flow

• Living in uncertainty is normal

M. Pochinok, 2016

Culture

SPACE REMODELING

Open space

Team zones

Socializing zones

Dress code

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

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M. Pochinok, 2016

"Island changes"*)

The rest of the company:

• Continues operating as usual

• New structure is adopted stage-by-stage

• Individual elements of a newculture are implemented throughout the company

Some employees act as a 'bridge' between old and new structures

Pilot business units:

• New flattened structure, small self-managed teams

• Standalone workplaces

• New motivation and outcome measurement principles

• Digital culture

*)M. Rozin

M. Pochinok, 2016

Potential criteria for an 'island'

• Immediate significant effect for a client• External threat level• Limited group of business customers• Optimal scale

M. Pochinok, 2016

How to start Agile if you are not 'on the island'

• Constantly ask yourself how the work that you do creates value for a client

• Ask for and create feedback from end client

• Build a cross-functional team to solve tasks

• Minimize formal document flow in favor of a more hands-on approach

• Encourage team members to experiment and prototype any solutions

• Adopt a less hierarchical team structure

• Establish 'organic' feedback

• Introduce visual team task management: Backlog Board and persons in charge. Immediatesignificant effect for a client

• Have regular stand-ups to discuss work progress

M. Pochinok, 2016

Contents

Agile organization Agile organization: differentiators Agile organization: structure Roles in Agile Working in Agile Agile culture Agile implementation Agile HR

40

M. Pochinok, 2016

Talent Management Agile Talent Management

Planning for 12 months (from strategies and budgets to development plans)

Planning by quarter

Unstructured appraisal practices / Large-scale and non-dedicated programs

Appraisal practices are unified so that to meet positing groups (according to a job catalog*)

Unique appraisal procedures for each position in a job catalog

No individual development plan for every employee Every employee has their own development plan

Appraisal results are often not connected with company training procedures

Appraisal results are directly connected with company training procedures, including self-learning and trainings

No regular screening of changes in values being appraised

Regular screening of changes in productivity, competence level, and training results of all employees Changes in these values are considered for individual

business units and organizational levels

No single storage for personnel data HRM systems aggregate all information about employees (Success Factors, etc.)

Agile HR

M. Pochinok, 2016

Talent Management Agile Talent Management

Managers make TM decisions based on their own vision of company developmentORUse benchmarking, i.e. best practices of other companies

TM decisions are based on their company's data

One long-term solution option both for company in general, and individual employees

Several TM solutions options for possible scenarios both for company's high level, and individual employees

No outsourcing Active outsourcing when internal resources are not enough

Agile HR

M. Pochinok, 2016

Talent Management Agile Talent Management

TM KPIs are either not measured at all, or measured irregularly

Quarterly measured TM KPIs, including: Employee turnover Customer satisfaction Personnel satisfaction, loyalty, and engagement Position filling rate (same development indicators for criteria being

assessed) etc.

Focus of managerial, stable competencies Focus on evaluation and development of qualities that ensure efficiency in innovative environment

Agile HR

M. Pochinok, 2016

Measurable (Data-driven)

Technology-savvy

Systemic (interrelated set of TM processes)

Medium-term planning (fast hiring, fast replacement)

Evaluation of qualities that ensure

Flexibility and change implementation

Agile HR

M. Pochinok, 2016

Competencies of managers in Agile Talent Management According to DDI survey:

Implement changes

Being a leader (team building)

Encourage others to participate in mission critical tasks

Manage personnel of various age categories

Encourage creative and innovative ideas of employees