Business Agility a little essay on new perspectives
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Business Agilitya l i t t le essay on new perspect ives
Business Agility
Fabio Armani
a l i t t le essay on new perspect ives
Davide Roitero“fast fish eat slow ones”
Alessandro Giardina“MVB: Minimum ViableBureaucracy! Fat fish eat too much fish ;)”
Daniel Palminsano“Competitive Marketplace. Ability to respond to change, custo0meer demands, …”
Daniela Cecchinelli“The idea of Business Value islinked to complexity.”
Stefano Muro“Manage the system, not the people.”
Anna Russo“Value is determined by customer feedback!”
Susanna Ferrario“Natural systems and evoluton”
Corrado Chiodi“… know how the value is moving and how it interacts with my whole system.”
Cinzia Pellegrino“… see the value as a complexity and systemic approach. We use value engineering...”
Setting the Stage
Setting the Stage
REASON WHY?
Business agility is the "ability of a business system
to rapidly respond to change by adapting its initial
stable configuration”
Business Agility
• Business agility refers to distinct qualities that allow
organisations to respond rapidly to changes in the
internal and external environment without losing
momentum or vision.
• Adaptability, flexibility and balance are three qualities
essential to long-term business agility.
Business Agility
The Challenge
The Challenge
EXPONENTIAL WORLD
Any sufficiently advanced technology is indistinguishable from magic
Arthur C. Clark’s 3rd Law
CENTURY OF SCIENCE AND
TECHNOLOGY
1900 2000
EXPONENTIAL GROWTH
Technology growth
ex
Product Development
• Products that are built based on older technologies
follow a specific path from initial idea to a mature stable
product.
• New products, services and solutions follow a different
path…
The S-curve
Improvements in
performance varies
throughout the life of the
technology
Problem is that people in the
R&D phase may not be right
in the growth phase
Exponential trends can be
composed of a sequence of
S- curves where each curve
is faster
The S-curve
Disruptive stress or
opportunity
Key Topics
Key Topics
BUSINESS AGILITY
Comparing agile enterprises to
complex systems
Agile enterprises & complex systems
• Interactions,
• self-organizing,
• co-evolution, and the
• edge of chaos
are concepts borrowed from complexity science that can
help define some of the processes that take place within an
agile enterprise.
complex : Interactions
• Interactions are exchanges among individuals etc.
holding a common vision and possessing the necessary
resources, behaviors, competence and experience in
aggregate.
complex : Self-organizing
complex : Self-organizing
• Self-organizing describes the spontaneous, un-
choreographed, feedback-driven exchanges that are
often found within agile enterprises.
• The creativity and innovation that arises from this self-
organizing process gives the agile enterprise an edge in
developing (and redeveloping) products, services, and
solutions for a hypercompetitive marketplace.
complex : Co-evolution
complex : Co-evolution
• Co-evolution is a key process through which the
enterprise learns from experience and adapts.
• The agile enterprise is constantly evolving in concert with
(and in reaction to) external environmental factors.
• Products and services are in a constant state of change.
• In one sense, nothing is ever completely "finished”.
complex : Edge of chaos
EDGE OF CHAOS
ED
GE
OF
OR
DE
R
complex : Chaordic
complex : Chaordic
Dee Hock – founder & CEO emeritus VISA
Options
Options
THINKING TOOLS
User Story Mapping
this is only an
example taken
from many
thinking tools
From “User Story Mapping” by Jeff Patton
Story Mapping Workshop
Backbone
Walking Skeleton
User Activity
User Task
User Task
User Task
Backbone
WalkingSkeleton
JIRA Component
JIRA Epic
JIRA Story
User Activity
User Task
Story
Story
Story
Story
Story Story
Story
Un-planned stories
Next Release
Agile Product OwnershipWhy?
Outcome
Specification
How?Earlier Later
Impact MappingGoals
Impacts
Deliverables
Story MappingUser Activities
Epics
Specification-by-Example
AcceptanceCriteria
Examples
Code
User Stories
courtesy of: Christian Hassa
Agile enterprise versus bureaucracy
Agile : enterprise
• Operating in hypercompetitive, continuously changing
markets, agile enterprises pursue a series of temporary
competitive advantages — capitalizing for a time on the
strength of an idea, product, or service then readily
discarding it when no longer tenable.
Agile : enterprise
Business Agility
Continuous Delivery
Agile Delivery
Agile Development
Four stages of an
Agile Enterprise
Agility start with the
development team,
than expands through
operations until the
entire business is
aligned tp give the
customer better value,
faster.
organizational : Agility
Habits
Ecosystem
Culture WHY
HOW
WHAT
organizational : Agility
Habits
Ecosystem
Culture WHY
HOW
WHATOrganizational Agility is a culture
based on the values and
principles of Agile, supported by
the organizational ecosystem and
manifested through personal and
organizational habits
(how work really gets done).
traditional versus creative economy
• The Traditional Economy had to choose between
disciplined execution vs continuous innovation
Bureaucracy
Team
innovation
dis
cip
lined
execution
• The Creative Economy achieves both disciplined
execution and continuous innovation
Bureaucracy
Team
innovation
dis
cip
lined
execution AGILE
This is a basic change in mindset!
Bureaucratic Org
• Internally focused
• Fixed mindset
• Defend existing advantages
• Make money for stakeholders
Agile Org
• Externally focused
• Growth mindset
• Create new advantages
• Deliver value to the customer
Managers
CustomerTeams
Business Agility
Business Agility
sense respondBusiness
Agilityadapt
Business Agility
sense respondBusiness
Agilityadapt
• Listen to trends
• Innovation at the Edges
• Track Leading Indicators
• Predictive Analytics
• Rapid Prototyping
• Decentralized decision
making
• Assess results and modify
experiments
• Reconfigure Operations
• Scale or shrink on
demand
• Continuous
Improvement
• Ability to Experiment
• Speed to market
• Scale rapidly
• Decisions based on
Insights
• Ability to reconfigure
operations quickly
Business Agility
sense respondBusiness
Agilityadapt
• Listen to trends
• Innovation at the Edges
• Track Leading Indicators
• Predictive Analytics
• Rapid Prototyping
• Decentralized decision
making
• Assess results and modify
experiments
• Reconfigure Operations
• Scale or shrink on
demand
• Continuous
Improvement
• Ability to Experiment
• Speed to market
• Scale rapidly
• Decisions based on
Insights
• Ability to reconfigure
operations quickly
Agile : enterprise
BUSINESSAGILITY
SENSE, CREATE &RESPOND TO CHANGE
PORTFOLIOAGILITY
OPTIMIZE FORBUSINESS VALUE
EXECUTIONAGILITY
DELIVER VALUEFASTER
Real World
THE REAL WORLD DOESN’T REWARD PERFECTIONISTS.
IT REWARD PEOPLE WHO GET THINGS DONE.
EXPERIENCES
Value Team
• The concept of Value team is an mashup of
two concepts:
– Discovery Track
– Extended Team (see Lean UX)
– Value Stream Map
this is only an
example taken
from many
experiences
ChangeUp CoP
A BetterWay CoP
Avalon CoP
Agile Portfolio Room
Operating at the edge of chaos
At the edge of chaos
• These structures — including a shared purpose or
vision, resource management aids, reward systems, and
shared operating platforms — often emerge from three
key organizational processes:
– strategizing,
– organizing, and
– mobilizing
edge of chaos : strategizing
edge of chaos : strategizing
• Strategizing is an experimental process for the agile
enterprise, in which individuals repeatedly generate
ideas (exploration), identify ways to capitalize on ideas
(exploitation), nimbly respond to environmental feedback
(adaptation), and move on to the next idea (exit).
edge of chaos : strategizing
Exploration
Exploitation
Adaptation
Exit
edge of chaos : organizing
edge of chaos : organizing
• Organizing is an ongoing activity to develop structures
and communication methods that promote serial
execution.
• It often includes defining a shared vision, as well as
systems and platforms, that ground the enterprise.
edge of chaos : mobilizing
edge of chaos : mobilizing
• Mobilizing involves managing resources, ensuring the
fluid movement of people between projects, and finding
ways to enhance internal and external interactions.
• Typically, enterprise values, personal accountability, and
motivational and reward systems are a key output of this
process.
Business Agility
Agile : enterprise
ThanksThanks
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