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Agility & Disciplined Agile
BUSINESS AGILITY
TRASFORMARE LE DISCONTINUITÀ DEI MERCATI
IN VANTAGGIO COMPETITIVO
Emiliano Soldi
https://www.EmilianoSoldi.it
@AgileTriathlete
FREQUENCY OF WORD DISRUPTION
Sources printed: 1900-2019, American-English
Sources printed: 1900-2019, Italian
For many, disruption, is a good thing
Disturbance or problems
which interrupt an event,
activity or process
Disruption
Oxford Dictionary
Crisis
The turning point of a disease when an important change takes place
…for better or worse
Oxford Dictionary
Disruptions happens
whether you are ready or not
And when
disruptions
arrive, often
you never ever
imagined
it was like that
Spherical extracellular viral particles (COVID-19)
And you start measuring life in a different manner
Before Corona After Corona
Never Normal
A reality where
change is
constantly
triggered by
'seismic shocks'
Peter Hinssen
Super Fluidity
Current reality is such that continuous systemic shifts
- social, ecological, biological, geopolitical, technological -
influence and compenetrate each other in ways
that we cannot even remotely predict
To cope with disruptions, organizations need
to develop new capabilities
Ability to keep
operating even
when things go bad
(up to the breaking point)
Starting from
Robustness
By Seng P. Merrill
Developing Resiliency
Ability to recover quickly from difficult conditions
…to finally becoming Antifragile
Ability to search for, go through and exploit, adverse events
to become more robust and resilient (leveraging on breaking points)
Interesting…
But, from where I am supposed to start?!
FREQUENCY OF WORD AGILITY
Sources printed: 1900-2019, American-English
Sources printed: 1900-2019, Italian
FREQUENCY OF WORD DISRUPTION VS AGILITY
DISRUPTION - Sources printed: 1900-2019, Italian
AGILITY - Sources printed: 1900-2019, Italian
Ability to move quickly and easily
Agility
Ability to think and understand quickly
Oxford Dictionary
The Agile Revolution and Evolution
Agile was born in the 2000s as a
product development approach,
mainly for IT small projects
Over time, it is understood that
Agile and its benefits could be
applied to the entire company
Business Agility was born
From 2010 onwards, first scaled
frameworks for large projects
are invented
http://agilemanifesto.org/
SAFe 5.0
LeSS
DAD
Nexus
Business Agility Domains
Business Agility Institute
Customer Satisfaction and Speed to market
Motivation and employee satisfaction
Collaboration & communication,
and better ways of working
Source: Business Agility Report – Business Agility Institute
Business Agility Benefits
Faster adaptation to COVID-19
Cool! And so…how can we transform
disruptions into competitive advantage?!
Purpose
Express the organization’s
why and impact on the
lives of customers, clients,
whomever the company is
trying to serve
Culture
Underlying beliefs,
assumptions, values and
ways of interacting that
contribute to the unique
social and psychological
environment of the
organization
People
How people are hired and
trained. How performance
are measured and salaries
and benefits calculated;
the ways their career could
evolve, in what roles and
following what paths
Structure
The way the organization is
arranged in terms of teams,
functions, departments,
business units, locations
Processes
Sequence of tasks that add
sequential value to
generate as a final result
the product or service
offered by the company
Governance
Set of principles, rules,
procedures and underlying
roles, concerning the
management and
governance of an
organization
Copyright © 2020 All rights reserved.
Components of an Operating Model
By designing flexible work processes that
are both efficient and customer-centric,
value streams allow organizations to
tightly integrate teams from across the
organization in service of maximizing
value creation for the customer
23
Value Stream Based Organizations
Organizing Around Value Brings Several Benefits
Fewer hand-offs
Faster delivery of value
Quality increasing
Closer alignment between
business and delivery teams
Whole system is optimized
not single components
24
✓ The constituent modules must
be simple in their structure and
self-consistent in their behavior
✓ Each module has traits in
common with others, but it
specializes in terms of behavior
✓ It has homogeneous but
reconfigurable communication
interfaces allowing to intercept
the outside world
A resilient system has
a modular internal structure,
which allows for quick
and intelligent reconfiguration
in case of urgent need
Generalist
Capable in various areas but not really
expert in anyone
I-Shaped
Expertise mainly and deep focused
in one area
T-Shaped
Expert in one area but capable
in several others
Working in agile, cross-functional teams, allow people to
collaborate and communicate more, sharing
knowledge and letting the organization to accelerate
delivery of value and becoming more resilient
Create transparency of
targets and performance
Clarify the roles that leaders
play in development and
evaluation
Focus on continuous
feedback and ongoing
development
conversations
Frequently collect input
from multiple sources when
evaluating performance
Team Objectives
Individual Growth
Peer-Feedback 360°
Performance Evaluation
Competence Development +
Agile stimulates People Resiliency and Performance
Cross-functional teams
break silos and are able to
deliver a product/service
end-to-end.
Thanks to cross-functionality,
they are faster in deliverying
value and better in decision
making
According to their expertise,
Agile teams are self-
managing and self-
organizing on how to do the
work
The Product Owner is
responsible for maximizing
the value of the products
created by an Agile team
Product
Owner
Agile
Team 1
Product
Owner
Agile
Team 2
Product
Owner
Agile
Team N
Product
Owner
Chapter
Lead
Chapter
Lead
Tribe
Lead
The Chapter Lead
has line management
responsibilities and
takes care of
employees’
development,
objectives, etc.
Chapter Lead
matches the right
people to the right
agile teams
The Tribe Lead is
responsible developing
the right tribe vision,
strategies and tactics to
deliver desired business,
through the work of
belonging teams
A Tribe is a
collection of
multiple agile
teams that work
together to
achieve a the
tribe mission
and relted
business KPI
Modular & Flatter Organization Structures
Oh yes, but we are already there.
We do have Agile cross-functional teams!
…Uhm…really?!
Photo: G. Diffidenti
During the Balkan War (1991-2001), both anti-tank
and anti-personnel landmines were used during
the conflict in Kosovo.
Mines were used by the Yugoslav Army, Serbian
police, Serbian paramilitaries, and by the Kosovo
Liberation Army.
Many of the antipersonnel mines had minimum
metal content, making detection more difficult.
Font: Cluster bombs and landmines in Kosovo (2000-2001)
Coping with invisible facts
Landmines has been a terrible danger for population health,
having also bad effects on pacification efforts
Listening to Weak Signals
NATO forces were not able to see where the mines had been placed
However, they devised a system able of detecting weak and indirect signals
Through their sonars, during nights, they "listened" very carefully
to the footsteps of minelayers, which allowed to deduce their position
Organizations need to further
develop their capacity to listen
to weak signals by collecting
and spreading timely, continuous
and punctual information
Weak Signals are:
✓ Fragmented
✓ Uncertain reliability
✓ Unpredictable
✓ Apparently no utility
✓ Unusual, singular
✓ Submerged
Peter Senge
“A learning organization is a dynamical
system always in a state of continuous
adaptation and improvement
Learning organizations build feedback
loops designed to maximize the
effectiveness of their learning processes”
Lean Coffee
World Café Open Space
COPs
Retrospectives
Reviews
Lean-Agile Portfolio Management
In order to quickly invest in new
products or services, as soon as
market opportunities arise,
organizations needs to adopt
adaptive funding models and build
them iteratively and incrementally
And, just as quickly, stopping or
changing work that isn't delivering
the expected business value
33
Next Near Now No More
Evaluating Emerging Investing Retiring
Extracting
Wide ranging
exploration of new
ideas, ventures,etc.
Confirm validity of
next generation
products
Enrich features
and push selling
Enhance
offering
Ideas
Experiments
Stop
Reject
Decomission
Decomission
Moving from Surviving to Thriving
Organizations need to
decide what percentage
of the budget must be
invested in new ideas,
ventures, developing new
products and what part to
invest in existing solutions
During early stages (Next
/ Near) Lean Startup
approaches must be used
to decided when to
persevere, pivot or stop
any initiatives
Investing money mainly
into Horizon Now means
Surviving, distribute it
through all four, paying
attention to Horizon Next,
means to Thrive
Horizons
Adaptive Development - Persevere, Pivot or Stop
Portfolio
Backlog
Initative Build MVP
Collection of
approved
initiatives
Once there
is some free
capacity the
top priority
initiative
is put under
development
Periodically
re-prioritized
Is the
benefit
hypothesis
still valid?
The initiative
is being tested
through the
development
of a Minimum
Viable Product
(MVP)
Prod
Increment
Build
PERSEVERE
Stop
Any
relevant
insights
emerged?
New
Initiative
Identified
YES
NO
NO
YES
Next Generation Products
Mature Products
Ideas / Experiments
Young Products
Initiative Types Legend
PIVOT
Budget is assigned
according to initiative
reference horizon
Budget is assigned
according to
initiative reference
horizon
Once the benefit
hypothesis is no more
valid, any emerging
insights deserve to be
evaluated and added
to the Portfolio Backlog
Accepted initiatives are
stored in the Portfolio
Backlog and periodically
prioritized
Once there’s available
capacity, the top priority
initiative is pulled, the
relative budget reserved
to the reference horizon is
assigned to build the MVP
Once the MVP or the next
Product Increment have
been built, the initial
benefit hypothesis is
verified to decide whether
to Persevere, to Pivot or
to Stop the initiative
Initiative
Evaluation
& Approval
New
Approved
Initiatives
Lean-Agile budgeting approach aims to shift
from traditional funding of projects over
assign budgets to value streams, avoiding to:
• creating detailed plans based on difficult-
to-make projections
• annual basis budget planning
• being mostly concentrated on checking if
projects are on time and on budget, instead
of focusing on steady release of value
• Move people from one project to the other
(move people to work), instead of creating
stable teams (move work to teams)
From being Reactive to Proactive with Lean-Agile Budgeting
VALUE
STREAM 1
VALUE
STREAM 2
VALUE
STREAM N
BUDGET QUARTERLY REVIEW
✓ Commitment, you do what you promise
✓ Consistency, you walk the talk
✓ Competence, you act what you know
✓ Consideration, you support who you care
Agile@Scale needs Trust@Scale
Thank You!
Emiliano Soldi
https://www.EmilianoSoldi.it
@AgileTriathlete

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Business Agility - Transforming Disruptions into Competitive Advantage

  • 1. Agility & Disciplined Agile BUSINESS AGILITY TRASFORMARE LE DISCONTINUITÀ DEI MERCATI IN VANTAGGIO COMPETITIVO Emiliano Soldi https://www.EmilianoSoldi.it @AgileTriathlete
  • 2. FREQUENCY OF WORD DISRUPTION Sources printed: 1900-2019, American-English Sources printed: 1900-2019, Italian
  • 3. For many, disruption, is a good thing
  • 4. Disturbance or problems which interrupt an event, activity or process Disruption Oxford Dictionary
  • 5. Crisis The turning point of a disease when an important change takes place …for better or worse Oxford Dictionary
  • 7. And when disruptions arrive, often you never ever imagined it was like that Spherical extracellular viral particles (COVID-19)
  • 8. And you start measuring life in a different manner Before Corona After Corona
  • 9. Never Normal A reality where change is constantly triggered by 'seismic shocks' Peter Hinssen
  • 10. Super Fluidity Current reality is such that continuous systemic shifts - social, ecological, biological, geopolitical, technological - influence and compenetrate each other in ways that we cannot even remotely predict
  • 11. To cope with disruptions, organizations need to develop new capabilities
  • 12. Ability to keep operating even when things go bad (up to the breaking point) Starting from Robustness
  • 13. By Seng P. Merrill Developing Resiliency Ability to recover quickly from difficult conditions
  • 14. …to finally becoming Antifragile Ability to search for, go through and exploit, adverse events to become more robust and resilient (leveraging on breaking points)
  • 15. Interesting… But, from where I am supposed to start?!
  • 16. FREQUENCY OF WORD AGILITY Sources printed: 1900-2019, American-English Sources printed: 1900-2019, Italian
  • 17. FREQUENCY OF WORD DISRUPTION VS AGILITY DISRUPTION - Sources printed: 1900-2019, Italian AGILITY - Sources printed: 1900-2019, Italian
  • 18. Ability to move quickly and easily Agility Ability to think and understand quickly Oxford Dictionary
  • 19. The Agile Revolution and Evolution Agile was born in the 2000s as a product development approach, mainly for IT small projects Over time, it is understood that Agile and its benefits could be applied to the entire company Business Agility was born From 2010 onwards, first scaled frameworks for large projects are invented http://agilemanifesto.org/ SAFe 5.0 LeSS DAD Nexus Business Agility Domains Business Agility Institute
  • 20. Customer Satisfaction and Speed to market Motivation and employee satisfaction Collaboration & communication, and better ways of working Source: Business Agility Report – Business Agility Institute Business Agility Benefits Faster adaptation to COVID-19
  • 21. Cool! And so…how can we transform disruptions into competitive advantage?!
  • 22. Purpose Express the organization’s why and impact on the lives of customers, clients, whomever the company is trying to serve Culture Underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of the organization People How people are hired and trained. How performance are measured and salaries and benefits calculated; the ways their career could evolve, in what roles and following what paths Structure The way the organization is arranged in terms of teams, functions, departments, business units, locations Processes Sequence of tasks that add sequential value to generate as a final result the product or service offered by the company Governance Set of principles, rules, procedures and underlying roles, concerning the management and governance of an organization Copyright © 2020 All rights reserved. Components of an Operating Model
  • 23. By designing flexible work processes that are both efficient and customer-centric, value streams allow organizations to tightly integrate teams from across the organization in service of maximizing value creation for the customer 23 Value Stream Based Organizations
  • 24. Organizing Around Value Brings Several Benefits Fewer hand-offs Faster delivery of value Quality increasing Closer alignment between business and delivery teams Whole system is optimized not single components 24
  • 25. ✓ The constituent modules must be simple in their structure and self-consistent in their behavior ✓ Each module has traits in common with others, but it specializes in terms of behavior ✓ It has homogeneous but reconfigurable communication interfaces allowing to intercept the outside world A resilient system has a modular internal structure, which allows for quick and intelligent reconfiguration in case of urgent need
  • 26. Generalist Capable in various areas but not really expert in anyone I-Shaped Expertise mainly and deep focused in one area T-Shaped Expert in one area but capable in several others Working in agile, cross-functional teams, allow people to collaborate and communicate more, sharing knowledge and letting the organization to accelerate delivery of value and becoming more resilient Create transparency of targets and performance Clarify the roles that leaders play in development and evaluation Focus on continuous feedback and ongoing development conversations Frequently collect input from multiple sources when evaluating performance Team Objectives Individual Growth Peer-Feedback 360° Performance Evaluation Competence Development + Agile stimulates People Resiliency and Performance
  • 27. Cross-functional teams break silos and are able to deliver a product/service end-to-end. Thanks to cross-functionality, they are faster in deliverying value and better in decision making According to their expertise, Agile teams are self- managing and self- organizing on how to do the work The Product Owner is responsible for maximizing the value of the products created by an Agile team Product Owner Agile Team 1 Product Owner Agile Team 2 Product Owner Agile Team N Product Owner Chapter Lead Chapter Lead Tribe Lead The Chapter Lead has line management responsibilities and takes care of employees’ development, objectives, etc. Chapter Lead matches the right people to the right agile teams The Tribe Lead is responsible developing the right tribe vision, strategies and tactics to deliver desired business, through the work of belonging teams A Tribe is a collection of multiple agile teams that work together to achieve a the tribe mission and relted business KPI Modular & Flatter Organization Structures
  • 28. Oh yes, but we are already there. We do have Agile cross-functional teams! …Uhm…really?!
  • 29. Photo: G. Diffidenti During the Balkan War (1991-2001), both anti-tank and anti-personnel landmines were used during the conflict in Kosovo. Mines were used by the Yugoslav Army, Serbian police, Serbian paramilitaries, and by the Kosovo Liberation Army. Many of the antipersonnel mines had minimum metal content, making detection more difficult. Font: Cluster bombs and landmines in Kosovo (2000-2001) Coping with invisible facts Landmines has been a terrible danger for population health, having also bad effects on pacification efforts
  • 30. Listening to Weak Signals NATO forces were not able to see where the mines had been placed However, they devised a system able of detecting weak and indirect signals Through their sonars, during nights, they "listened" very carefully to the footsteps of minelayers, which allowed to deduce their position
  • 31. Organizations need to further develop their capacity to listen to weak signals by collecting and spreading timely, continuous and punctual information Weak Signals are: ✓ Fragmented ✓ Uncertain reliability ✓ Unpredictable ✓ Apparently no utility ✓ Unusual, singular ✓ Submerged
  • 32. Peter Senge “A learning organization is a dynamical system always in a state of continuous adaptation and improvement Learning organizations build feedback loops designed to maximize the effectiveness of their learning processes” Lean Coffee World Café Open Space COPs Retrospectives Reviews
  • 33. Lean-Agile Portfolio Management In order to quickly invest in new products or services, as soon as market opportunities arise, organizations needs to adopt adaptive funding models and build them iteratively and incrementally And, just as quickly, stopping or changing work that isn't delivering the expected business value 33
  • 34. Next Near Now No More Evaluating Emerging Investing Retiring Extracting Wide ranging exploration of new ideas, ventures,etc. Confirm validity of next generation products Enrich features and push selling Enhance offering Ideas Experiments Stop Reject Decomission Decomission Moving from Surviving to Thriving Organizations need to decide what percentage of the budget must be invested in new ideas, ventures, developing new products and what part to invest in existing solutions During early stages (Next / Near) Lean Startup approaches must be used to decided when to persevere, pivot or stop any initiatives Investing money mainly into Horizon Now means Surviving, distribute it through all four, paying attention to Horizon Next, means to Thrive Horizons
  • 35. Adaptive Development - Persevere, Pivot or Stop Portfolio Backlog Initative Build MVP Collection of approved initiatives Once there is some free capacity the top priority initiative is put under development Periodically re-prioritized Is the benefit hypothesis still valid? The initiative is being tested through the development of a Minimum Viable Product (MVP) Prod Increment Build PERSEVERE Stop Any relevant insights emerged? New Initiative Identified YES NO NO YES Next Generation Products Mature Products Ideas / Experiments Young Products Initiative Types Legend PIVOT Budget is assigned according to initiative reference horizon Budget is assigned according to initiative reference horizon Once the benefit hypothesis is no more valid, any emerging insights deserve to be evaluated and added to the Portfolio Backlog Accepted initiatives are stored in the Portfolio Backlog and periodically prioritized Once there’s available capacity, the top priority initiative is pulled, the relative budget reserved to the reference horizon is assigned to build the MVP Once the MVP or the next Product Increment have been built, the initial benefit hypothesis is verified to decide whether to Persevere, to Pivot or to Stop the initiative Initiative Evaluation & Approval New Approved Initiatives
  • 36. Lean-Agile budgeting approach aims to shift from traditional funding of projects over assign budgets to value streams, avoiding to: • creating detailed plans based on difficult- to-make projections • annual basis budget planning • being mostly concentrated on checking if projects are on time and on budget, instead of focusing on steady release of value • Move people from one project to the other (move people to work), instead of creating stable teams (move work to teams) From being Reactive to Proactive with Lean-Agile Budgeting VALUE STREAM 1 VALUE STREAM 2 VALUE STREAM N BUDGET QUARTERLY REVIEW
  • 37. ✓ Commitment, you do what you promise ✓ Consistency, you walk the talk ✓ Competence, you act what you know ✓ Consideration, you support who you care Agile@Scale needs Trust@Scale