Looking at your Technology company through the "3 Horizons of growth" model.
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The model was originally proposed by Mckinsey as the "3 horizons of growth" to help business leaders honing their analysis of where and how to compete, grow, and best manage their organizations. In this talk I put to the audience the model could be applied to Technology businesses, and I attempt to draw the members present into a discussion on its application to people & teams as well as architecture or tech strategy. I also outline a few activities that can provide data points for consideration and focus the attention of people as part of the model. All this comes with the disclaimer "all models are incorrect some are useful". I look forward to hearing your feedback. https://www.meetup.com/CTO-School-Melbourne/events/235165561/
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Looking at your Technology company through the "3 Horizons of growth" model.
- 1. CTO School Melbourne November 2016
- 2. Thanks to our sponsors
- 3. Join our Trello board http://tinyurl.com/ctoschoolmelb
- 4. Join our Slack conversation https://ctoschoolmelbourne.slack.com/
- 5. send a request to join in to james.ross@envato.com or peter.moran@rea-group.com
- 6. This Month’s Topic Looking at your technology business through the lens of the 3 horizons model with Nigel Fernandes SEEK
- 8. Thinking about technical strategy & growth Nigel Fernandes Architecture Practice Manager
- 9. Objective: Help you understand whether the 3 Horizons of Growth model could work for you
- 10. THIS TALK IS NOT ENDORSED BY
- 12. Individual autonomy without collective alignment leads to anarchy. ~ Sam Newman
- 13. Platform = People + Technology ~ Scott Shaw
- 14. Software delivery capability is a function of the alignment of the platform to the needs of the product. ~ Me
- 15. 3 Horizons Model
- 16. 3 Horizons Model
- 19. The Product side Extend and defend core business Build emerging businesses Create viable options
- 20. Experienced business operators extend the core Business builders develop new opportunities Visionaries, champions create viable options The People side
- 21. Transitional Architecture modernizes the core Evolutionary Architecture guides growth with opportunities Emergent Architecture based on disruptive tech The Technology side
- 23. Extend and defend core business Horizon 1 Transitional Architecture modernizes the core Experienced business operators extend the core
- 24. We rely on experienced technical leaders who possess: • A track record and love for working effectively with legacy code • The ability refactor as you go along and be disciplined • The ability to strangle systems along functionality seams • The explainers. The patient. The calm and steady. People
- 25. Transitional Architectures aiming for SOA/Microservices as a strangler and for complexity management Automated operations and effective team level support/on-call New tech as a way of solving problems of scale: AWS, Docker etc. New tech as a way of decoupling, managing blast radius Focus on Inter-operability Established pattern based decision making
- 26. Tech Radar as a Reflection Exercise Activity Get technologists in a room. Ask them to reflect on Techniques, Tools, Platforms and Languages in use. Classify these as Assess, Trial, Adopt or Hold.
- 27. TIME modeling with Leadership Activity Sit with your leadership team Ask them to review products and systems using Gartner’s TIME model. Classify each into one of the four quadrants Use the results as an input to decision making
- 28. STARS modeling with Leadership. Activity Sit with your leadership teams Ask them to assess their products and the teams working on them Classify each as Start-Up, Turnaround, Accelerated Growth, Realignment or Sustaining Success Reflect on the implications
- 29. Patterns. Everywhere. Logging. Metrics. Deployment. Secrets.
- 30. Horizon 2 Taking advantage of new opportunity
- 31. Build emerging businesses Horizon 2 Business builders develop new opportunities Evolutionary Architecture guides growth with opportunities
- 32. We rely on Product engineers. Characterized by: • Enthusiasm and passion. Evangelists. • A Strong sense of optimism • Comfort with working in higher degrees of uncertainty • Comfortable with trading tech debt for speed, and the experience doing it. • Knowledge of the second system effects • Ability to think on their feet, adapt fast, and thrive while under delivery pressure. People
- 33. Evolutionary Architectures guided by : Composibility of existing services to extend/create new products Add new services to expose new capabilities/data Invest in older software assets only where required New tech as a way of attracting and retaining talent New tech as a way of achieving shortened time to market Optimize for code for flexibility not efficiency Focus on Inter-operability
- 34. FFF Exercise with Teams on a regular basis Activity To help teams keep their focus on the things that are important. Use the FFF for non functional requirements Have teams determine The dimensions
- 35. Trade off sliders with Teams on a regular basis Activity To help teams keep their focus on the things that are important. To help keep product and technology teams honest.
- 36. Tech Debt walls mapping Activity Technical teams get uncomfortable with borrowing down on tech debt. Visibility helps deal with managing the debt versus productivity scales
- 37. Horizon 3 Creating new viable businesses
- 38. Horizon 3 Emergent Architecture based on disruptive tech Business builders develop new opportunities Create viable options
- 39. We rely on Entrepreneurial engineers. Characterized by: • Self driven. Champions and visionaries. • Comfort with working with a lack of clarity • Comfortable with building quick and dirty solutions • Comfortable with throwing work away as products develop and pivot. • Ability to learn fast without a lot of formal support • The courage to be different. People
- 40. Emergent Architectures characterized by : Operating outside the boundaries of established systems New tech as a market disruptor New tech as a commercially defensible IP Optimized for learning Mandates the need for re-investment later
- 41. Horizon scanning Activity Workshop with the whole cross functional team and the entire stakeholder group to course correct and maintain engagement
- 43. Experienced business operators extend the core Business builders develop new opportunities Visionaries, champions create viable options Culture evolution
- 44. Ref:Connected Company – Dave Gray
- 45. Ref:Connected Company – Dave Gray
- 46. Thank you
- 47. Discussion notes Wardley maps: (Matt Fellows and Ervin Van der Koogh) http://blog.gardeviance.org/2015/03/on-pioneers-settlers-town-planners-and.html?m=1 and https://vimeo.com/189984496 Is there a Horizon 0 – the people and tech left behind after an organization has moved on, post the evolution from horizon 1 -> 2. What does that look like? (Liz Douglass – has upcoming talk at YOW CTO summit on this) The 3 horizons model as applied to features and code flows within an application. 3 horizons of features, core feature set, potential high adoption/value- add/differentiator features, and long shots? How would you engineer these given this view? Would you put more rigour around networks and error case handling for horizon 1 versus 3 for example? (Oliver Jones) Crossing the chasm & related HBR article : https://hbr.org/2007/07/to-succeed-in- the-long-term-focus-on-the-middle-term (Nish Mohanty and others)
Notas del editor
- Maybe help you explain whether micro-services could work for you.
- Agreement on the axioms. Suspend objection for the duration of this presentation.
- Because people without technology is not useful for a tech company Because technology without people is not useful for a tech company
- Good architectures support and are driven by the needs of our business. Bad architectures require our business to change. What is easy to change in your business model should be easy to change in your architecture.
- Model disclaimer.
- Because assassins are good at execution. Value creation: Superior execution. Businesses we’re trying to run better than anyone else and at the same time defend our core business Metrics: Performance focus. Profit, cash flow, roi etc.
- A track record and love for working effectively with legacy code A special kind of mind set. People here know how to dive into the middle of a code base and work their way into affected regions. The strategies they use for feature development and managing debt is quite different. Level of comfort with tools like Structure 101, Cyclomatic complexity etc. The ability refactor as you go along and be disciplined The dark forest analogy. The system heat map. Comprehending the rate of change in the system. The story of the system rewrite. The ability to strangle systems along functionality seams Hidden seams in a system. The bus, the system integration points, the ui, the back office process etc. The explainers. Deep domain context. Onboarding new members, keeping innovation alive with new thinking while managing the complexity of big/old systems. Explaining Feature complexity.
- Transitional Architectures aiming for Microservices as a strangler and for complexity management Automated operations and effective Support New tech as a way of solving problems of scale: AWS, Docker, New tech as a way of decoupling, managing blast radius Focus on Inter-operability Established pattern based decision making
- CloudWatch & Splunk & fan out. Central functions and team operations Statsd for metrics Docker in Docker or Docker alongside docker, or docker with friend called docker or docker mania Secrets sucks for everyone. Encrypted repos. LastPass as a service. Vault & leases.
- Source of value creation: taking advantage of new opportunity. Trying to gain a significantly better position relative to your competitors. Much of the value in a company comes from relatively small business here. Market wants this. Metrics: Revenue growth, NPV
- We rely on Product engineers. Characterized by: Enthusiasm and passion. Evangelists. A Strong sense of optimism Comfort with working in higher degrees of uncertainty Comfortable with trading tech debt for speed, and the experience doing it. Knowledge of the second system effects Ability to think on their feet, adapt fast, and thrive while under delivery pressure.
- Evolutionary Architectures guided by : Composibility of existing services to extend/create new products Add new services to expose new capabilities/data Invest in older software assets only where required New tech as a way of attracting and retaining talent New tech as a way of achieving shortened time to market Optimize for code for flexibility not efficiency Focus on Inter-operability
- Activities: Fitness Functions
- “The relative effort that the team would have to spend in order to pay this debt.“ “Pain is the direct impact on productivity that this debt causes. (interest)” Keep paying down the principal, not only the interest
- Value creation: Potential value. Little experiments. Clustered experiments rather than a VC model. Clustered around themes. A focus on insights and foresight on the target market space.
- We rely on Entrepreneurial engineers. Characterized by: Self driven. Champions and visionaries. Comfort with working with a lack of clarity Comfortable with building quick and dirty solutions Comfortable with throwing work away as products develop and pivot. Ability to learn fast without a lot of formal support The courage to be different.
- Emergent Architectures characterized by : -> operating outside the boundaries of established systems -> new tech as a market disruptor – VR, -> new tech as a commercially defensible IP – machine learning, neural networks, recommendation algos etc. -> optimized for learning -> mandates the need for re-investment later
- The cultural norms and the behaviors of the teams, tech and products in the horizons 2, move into the core and become the new normal. Same for 3 to 2
- Note the data on Cities versus Companies . Consider: Closed systems versus open systems. Traditional view of the company or organization is a closed system. i.e Machine that must be managed to avoid collapse. Cities on the other hand are Open systems. Complex adaptive systems. Like an organism instead of a machine. Exchanging, reacting and evolving constantly with its environment. Consider: what happens if we view the modern agile technology company as a complex adaptive system, an organism rather than a machine?
- Complex Adaptive systems are a special class of open systems characterized by dynamic networks of agents interacting with each other and their environment. They are continuously evolving and shifting (ant colonies, bee hives, stock markets, political parties, biological ecosystems etc). Interestingly enough, the behavior of the whole cannot be predicted by analyzing parts in isolation. Cities seem to be able to organize themselves to get things done without central planners and managers. Yes they do have planners and managers, but they do not try to control the activities in the city the way some managers might try to do in a company. What they do is manage the support systems, the infrastructure and essential services..instead of trying to direct the activity of each citizen. i.e. They manage for productivity instead of managing against collapse.