Agile for Non-Profit Organizations

Are we in the middle of next revolution?

The revolution is already under way

“Over the last few decades, we’ve grown beyond the Industrial economy - IT economy - Internet economy, each of which led to significant inflection points in growth and prosperity,” -Vivek Bapat, SAP’s global VP for portfolio and strategic marketing.

Industrial IT Internet Economy

“In fact, 52% of the Fortune 500 have been merged, acquired, gone bankrupt, or fallen off the list since 2000. The impact of digital disruption is real. However, it’s not the technologies that drive this change. It’s a shift in how new business models are created. We’re moving at a massive scale from systems of transaction (record) to achieving mass personalization at scale (digital)”.

R Ray Wang, Disrupting Digital Business, HBR

Digital Disruption

Convergence of multiple forces is impacting business, economy, society … just name it..

Convergence of Forces

This new economy, …resulting from the convergence of Social, Mobile, Analytics, Big Data, Cloud, the Internet of Things and the Internet of Everything…. …catalyzed by a new era of hyper connectivity…. is creating spectacular disruption and new opportunities for innovation.

The New Economy

Over the next 10 to 15 years, SAP estimates:The Networked Economy will represent a global economic value of at least $90 trillion.

The Networked Economy

What will this new disruptive digital economy would look like?

Pointers Industrial Economy Digital Economy

Economic Development Steady and linear, predictable Volatile, disruptive

Market changes Slow and linear Fast and unpredictable

Lifecycle of Products/ Tech Long Short

Key Economy Drivers Large industrial firms Innovative, Adaptive firms

Competition The big eats the small The fast eats the slow

Business Approach Vision, goals, action plans Opportunistic, dynamicSource of Competitive Advantage Cheap labor, capital, scale Speed; partnership

Organizational Structures Hierarchical, bureaucratic Flat or networked structure

Leadership Command-and-control Self organized teams

Skills Mono-skilled, manual labor Multi-skilled, intelligence

Changing Paradigm

• Technology and society changing faster than business - accelerated pace of disruption

• Marginal costs of producing and sharing goods/services declining• Students are enrolling in free massive open online courses• Social entrepreneurs are bypassing the banking establishment and using

crowdfunding to finance startup

DisruptionsDisruptions

• In SF, Uber has 3x revenue of the entire prior taxi and limo industry. • Without owning a single room, Airbnb has more rooms to offer than Hilton.

Airbnb has 800 employees, while Hilton has 152,000.• Top Kickstarters raise tens of millions of dollars that once required top-tier

investment firms.Source: Tim O’Reilly

Disruptions

• For the First time more than 50% population live in cities• 3 billion connected people so far, will grow 1.5 billion more by 2020, per ITU.• Innovation explosion with more connected people• More room for Design Thinking, Creativity, Imagination• Creates more disruptive stress or opportunity

DisruptionsDisruptions (Contd.)

The Law of Disruption

Source: Future Scenarios: Frank Diana

Disruption Scenarios

97 startups have over $1 billion valuations (WSJ - May 2015)

Startup Surge

What will happen if Google comes up with the autonomous car?

• Google says accidents will decline by 90%• No auto insurance, car makers will cover that• Fewer body shops• Roadside motel industry will get impacted• Health insurance cost will decline • Car dealers will become app dealers• Car entertainment industry will flourish• What happens to all those Uber drivers when the cars start driving

themselves?

Self-Driving Cars

• Pressure will be on employable workforce• Content becomes open and commoditized• Demand for university building, libraries, lecture hall, student housing

plummet• A teacher in a disrupted world will become more of a facilitator, seeking

to package, conduct, and monitor an optimal experience for learners.

Disruption in Education

Disruption in Education (Contd.)

• Smart home disrupts elder care industry• Connected Health will provide health services everywhere• Home security industry will be disrupted by low cost options• Insurance companies could provide home security as well or vice versa• Smart home integrators will emerge• EarlySense and Evermind have created devices that track patients' sleeping

habits and monitor if they are using their life-saving medical devices, respectively.

Disruption in Home

Banking• Simple, BankMobile, Moven provide banking with no fees. Disruption: Checking accounts, savings accounts and checks.

Money Transfer• Venmo, PayPal, Google Wallet, Snapcash, Transferwise Disruption: ATM cards, cash and checks. Blockchain, a protocol that allows for secure, direct, digital transfers of value and assets (think money, contracts, stocks, IP).

Wealth Management• “Roboadvisors” - Acorns, Betterment, Wealthfront, Robinhood allow you to invest money with

free stock trades, portfolio management tools and automated investing.

Disruption: Large investment corporations like Fidelity

Disruption in Fintech

Receiving Payments• Square, Braintree allow small businesses to accept payments Disruption: Credit card companies.

Business Loans• LendingClub, eToro (not in the US), CAN Capital and Kabbage , Fundera (match you with lenders) Disruption: Big banks with restrictive loan policies

Payroll• Small businesses that can’t afford a dedicated accounting team. Zenefits, Wave and ZenPayroll. Disruption: Accounts payable departments

Disruption in Fintech( Contd.)

• The Telcos will lose a combined $386 billion between 2012 and 2018, UK firm Ovum predicts, from customers using apps like Skype and Lync.

• VoIP will grow at 20% resulting in $63 bil in lost revenue in 2018, Ovum says.• Chat apps WhatsApp and WeChat offer social networks that retain user loyalty and

stickiness pushing people to go for smaller voice/text plans.• Telcos homegrown apps for existing customers may not scale • Netflix-Comcast like partnership opens new doors

Disruption in Telecom

Why big companies need digital transformation?

Businesses are realizing that future success is tied to digital transformation: - We are no longer an economy of products and services.

The digital transformation demands that we focus our attention on experiences and outcomes.

- An effort to renovate business vision, models, and investments for a new digital economy

I often use the iPhone as an example of a device that destroyed 27 business models.

- Enabling companies to operate in a rapidly changing business environment. Products are getting obsolete very fast. Companies releasing faster into production.

Digital TransformationDigital Transformation

• Internet Companies and start-ups have the advantage • Barriers for new market entrants continue to collapse. • But most companies are traditional companies and have long way to go.

– Their organizational policies, practices, processes and structures that inhibit digital transformation will change.

Threats/OpportunitiesThreats and Opportunities

• Big companies are not structured for future• Existing assets are getting obsolete• Technology undermines advantages of scale• Need new Agile thinking

• Growth oriented• Networked, flat• Management 3.0 • Entrepreneurial and innovative• Agile practices• Fast, Iterative, experimental

Threats/OpportunitiesThreats and Opportunities (Contd.)

Digital transformation requires an integrated strategy enabled by converging advances in • Technology (Cloud, Mobile, Social and Big Data, plus future scenarios)• Principles and Concepts (Lean/Agile, user centered design, design thinking,

Microservices, automation, continuous deployment/integration)• People and Organizations (Mastery, autonomy, purpose, self-organization,

collaboration, small distributed teams, crowdsourcing, holacracy)

Road to Redemption

The Art of Possibility

Challenges of Non-Profit Organizations• Lack of user focus - Diverse stakeholders, difficult expectations• Millennials and all want transparency in the dollars donated• People want to have a short, easy, and convenient way to get to

information, and find the project they would like to support• Finding the right skill set, locally• Technology is changing fast• Lack of agility• Depleting source of funding• Lack of awareness - social media, mobile technology, analytics and big

data, the cloud, or connected Internet – all of these things – if they’re not doing it now, they will miss the trip later

Future of Non-Profits• Traditional Non-Profits almost becoming cloud-based virtual organizations,

bringing talent and products globally. • Reducing overhead costs by leveraging the cloud – leveraging these great cloud

cells that support HR, talent management, scheduling, and supply chain. • Utilizing the Internet of Things to monitor and provide the transparency that their

donors are interested in.• Leveraging mobile, social media to reach donors as well as get valuable

information.

Agile for Non-Profits• What is Agile?

• Does it vary from organization to organization? • Does it vary from industry to industry ?

• 2 Pillars of Agility • Respect individual • Continuous improvement

• Is there a difference between agile for profit and non-profit?• This is not about for-profit organization for making profit• This is about explaining the importance of agility in the new economy

and why is it important for govt/non-govt, any industry, school, college, sports, teams, military or non military entities.

Agile Umbrella

The Agile Manifesto*We are uncovering better ways of developing software by doing it and helping

others do it. Through this work we have come to value:

Individuals and interactions over processes and toolsWorking software over comprehensive documentation

Customer collaboration over contract negotiationResponding to change over following a plan

That is, while there is value in the items on the right, we value the items on the left more.

*http://agilemanifesto.org/

What is Scrum?*• A framework within which people can

address complex adaptive problems, while productively and creatively delivering high value products.

• Lightweight • Simple to understand • Difficult to master

• Founded on empirical process control theory- transparency, inspection, and adaptation.

• Employs an iterative, incremental approach to optimize predictability and control risk.

*https://www.scrum.org/Scrum-Guide

Scrum Benefits and Risks• Benefits

• Emphasis on working software• More empowered team• Considered more suitable for innovation• Works well when Empirical Process models fail• Works well when there is uncertainty

• Risks• Larger efforts can go haywire without proper standards• Frequently misinterpreted as free for all• Requires significant collaboration effort• Not well understood outside technology community

Scrum Roles• Developer

• All roles that actually produce working software• Product Owner

• Owns Backlog, priorities, and ROI• Scrum Master

• Emulates the Scrum principles, helps resolve blockers for the team, protects the team

Key Concepts• Value Driven, not Plan Driven• Self Organizing Teams• No Command and Control• Servant Leader• Respect the Individual• Continuous Improvement

Scrum Values…Scrum needs a set of values as the foundation for the team's success. Focus - We can focus on only a few things at a time to produce an excellent work sooner. Courage - As a team, we feel supported and have more resources at our disposal. This gives us the courage to undertake greater challenges.Openness - We work together, we express how we're doing, what's in our way, and our concerns so they can be addressed.Commitment - We have greater control over our own destiny, we are more committed to success.Respect - We as a team share success and failure, we respect each other as well as respect the knowledge and skills people bring to the team.

The Applicability of ScrumThe environments in which the application of Scrum would lead to excellent results:

• Small team of 6-9 people• Close interaction with client• Co-located work space• Unstable requirements• Motivated team members• Appropriate Sprint length • Efficient Scrum meetings

Scrum Framework

Vision

Sprint Planning Meeting•Review Product Backlog•Estimate Sprint Backlog•Commit to the Sprint•Sprint Goal

Sprint Review Meeting•Review overall goal of the sprint•Feedback from stakeholders

Sprint Retrospective•Inspect and adapt

Daily Scrum•Done since last meeting?•Plan for today?•Obstacles?

Scrum EventsScrum prescribed events for inspection and adaptation

The SprintSprint Planning Daily Scrum Sprint Review Sprint Retrospective

Additional Scrum Activities• Product Backlog Refinement

https://www.scrum.org/Scrum-Guide

Wrap-Up

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