Management 3.0 - Applied
“Give me a place to stand and with a lever I will move the whole world.” - Archimedes of Syracuse (287 BC – c. 212 BC)
Johan Oskarsson – The agile leader
Agile transformation and adaptation (Martie’s Grow Structure view)
Delaval
Study/findings
Change program
Organization reengineering
Software Program
Learning’s & thoughts
Vision
3
…offers complete solutions for milk production and animal husbandry …empowers the dairy farmer with improved control over milk production …caters to customers worldwide with herd sizes ranging from 1 to 50 000
Internal
TetraLaval Group
4
Tetra Laval
Tetra Pak DeLaval Sidel
Internal
”Old School” no more
5 Internal
Heavy duty
6 Internal
Loose Housing
7 Internal
Voluntary Milking System – VMS
8 Internal
DeLaval AMR™ The world’s first automatic rotary system
9 Internal
Swinging Cow Brush
10 Internal
Study the system
“If you do not know how to ask the right question, you discover nothing” – W. Edwards Deming
Study/findings
Study the system
Delaval International
BA Capital Gods
D&E
Objective: Software development at D&E
System within system
Learning’s - Limits to grow
Frequent Deliveries
Good quality products
Reinforcing feedback
Balancing feedback
“Projects was handled without full insight to interdependencies ”
“The project models was not suited for
software development”
“The quality and huge technical debt backlog had
to be handled” “The energy level in development could
be enhanced”
“The insight in planning and visions could be
improved” “Customer felt a growing
frustration because of to few deliveries”
Learning’s - Limits to grow
The system had ended up in a too ordered state where very few products were delivered
Deliveries
Good quality
products
Budget
Project models/processes
Customer demands
Reinforcing feedback Balancing feedback Project size
Visibility/Informed decision making
Sales
Planning
Shared goals
Business proposals
Creative environment Personal
mastery
Motivated people
Empowered teams
“Stiff hierarchy with centralized
power”
“Large projects which spans over years”
“Projects planned without concern to
interdependencies ”
“Low visibility and blind
decision making with long cadence”
“Stiff low value linear project models”
“Low quality with huge technical debt backlog”
“Low energy environment”
“Unmotivated people”
“No learning organization”
“Low insight in management, planning and
visions”
“Budget process which promotes
command & control”
“Growing frustration
because of lack of deliveries”
Overall vision ( A sense of urgency was already in place)
“The only thing worse than being blind is having sight but no vision” – Helen Keller
Vision
Overall vision - Empowerment
I’m change leader and software development manager, I need power to act
Overall vision - Empowerment
Me,
My boss
3-4 weeks
Trust
Overall vision - Empowerment
Myself
My manager
3-4 months Trust
Overall vision - Empowerment
& I
My leader
4-12 months
Trust
Overall vision – Quantum leap in mindset
Waterfall
Agile
Overall vision – Leader characteristics
Development Director “my leader”
Head of PMO
Me
Head of Testing
Overall vision – Leader characteristics
Value and flow design of system
Integrate decision making with work
Measurement related to purpose
“What matters!” attitude to customers
Cooperative attitude towards suppliers
Act on the system management
Learning attitude
Adaptive & exploratory change attitude
Motivate intrinsic desires
Open and honest
Overall vision - Agile Organization Characteristics Ordered Traditional
Bureaucratic, top-down, multilevel hierarchy, policies and procedures that create
many complicated internal interdependencies
Functional, activities and order
Separated from work
Output, targets, standards, related to budget, few performance information systems distributed to executives only
Contractual
Contractual
Expectation that management will manage lower-level, people and budgets,
training to managers only
Control, specifications
Reactive, projects
Extrinsic, closed bonus system, reached targets
Inward focused, centralized, slow decisions making, political, risk adverse
Complex Agile
Nonbureaucratic, outside-in, system view, few level hierarchy, policies and procedures that produce the minimal internal interdependencies needed to serve customers
Demand, value and flow
Integrated with work
Capability, variation, related to purpose, many performance information systems,
providing data on customers especially, distributed widely
What matters
Cooperative, emergent
Expectation that management empower lower-level to manage, act on the system, training to many people
Learning, people-people collaboration
Adaptive & exploratory, iterative
Intrinsic, open bonus system, the goal is its own reward
Externally focused, empowering, quick decisions making, open and honest, risk
tolerant
Perspective & Structure
Design & System
Decision making
Measurement
Attitude to customers
Attitude to suppliers
Role of Management
Ideal
Change
Motivation
Culture
Overall vision – Agile system big picture for frequent deliveries of quality products
Por$olio manager
Product manager & Council Facilitator
Product manager Product manager
Product manager
Por%olio council Product visions
Por-olio vision
Architecture runway Architectural Epic
Business Epic
Por-olio backlog
Program manager
Project managers System architect
Configura:on manager
Quality Assurer Release manager
Product Owner
Agile Master
Architect Testers
Developers
Product Owner
Agile Master
Testers
Developers
Product Owner
Agile Master
Testers
Developers
Team A Team B Team C
Release backlog
Team C
Team B
Team A
Release
Team backlog
Sprint backlogs
Features
Stories & Tasks
BUSINESS /D&E MANAGER
PROJECT /D&E MANAGER
SOFTWARE / HARDWARE /TEST MANAGER
Memo Memo Memo
Architect Architect
Product council
Incremental
IteraBve
Scaling agile D. Leffingwell
Change program
“If you don’t like something, change it. If you can’t change it, change your attitude” – Maya Angelou
Change program
Change program – “The social architecture”
Why
What How
Study the system
Initiation & Setup
System design
Test of concept
Training & preparation
Deployment Instructions
Flawless system
Procedures & guidelines
Return on investment
Benefits realizations
Conceptualize
Con
solid
ate
Coordinate
New paradigm
Change program – Guiding Coalition
Management
Leadership
X
X X
X
X
X X
X X
X
Change team
Management team
Informal leaders
Study
Paradigm Organization reengineering
Initiation & setup
Test of concept
Training & preparation
Deployment Instructions Flawless system
Procedures & guidelines
System transformation
to Agile Agile portfolio/
program management Continuous integrations
Requirement management
Test
strategy
Back-end support
Change program
Study
Paradigm Organization reengineering
Initiation & setup
Test of concept
Training & preparation
Deployment Instructions Flawless system
Procedures & guidelines
System transformation
to Agile Agile portfolio/
program management Continuous integrations
Requirement management
Test
strategy
Back-end support
Change program
System
Study
Paradigm Organization reengineering
Initiation & setup
Test of concept
Training & preparation
Deployment Instructions Flawless system
Procedures & guidelines
System transformation
to Agile Agile portfolio/
program management Continuous integrations
Requirement management
Test
strategy
Back-end support
Change program
System
Individuals
Study
Paradigm Organization reengineering
Initiation & setup
Test of concept
Training & preparation
Deployment Instructions Flawless system
Procedures & guidelines
System transformation
to Agile Agile portfolio/
program management Continuous integrations
Requirement management
Test
strategy
Back-end support
Change program
System
Individuals
Interactions
Study
Paradigm Organization reengineering
Initiation & setup
Test of concept
Training & preparation
Deployment Instructions Flawless system
Procedures & guidelines
System transformation
to Agile Agile portfolio/
program management Continuous integrations
Requirement management
Test
strategy
Back-end support
Change program
System
Individuals
Interactions
Organizational reengineering
“I think the players win the championship, and the organization has got something to do with it, don’t get me wrong. But don’t try put the organization above the players” – Michael Jordan
Organization reengineering
Different organizational structure – Informal Structure
Different organizational structure – Informal Structure
• Social networks/structure • The social network is always there like it or not,
can be good, can be bad, very powerful • The social network influences the organization • Usually ignored
Different organizational structure – Value Creation Structure
Value Unit (Cell)
Different organizational structure – Value Creation Structure
• Flow based structure • Any organization have it, but it is only through this structure that
performance, value and market success can be created • Most organization structures are not build this way • Can together with Systems Theory be mapped as network of
Value Units (cells), interrelated by value flow, pay, communication, etc
• Each value unit either creates value for other network units or for the outside market
• Value creation structure and flows are in many organizations
being crippled by other types of structures
Value Unit (Cell)
Different organizational structure – Formal Structure
Top-down power distribution
Different organizational structure – Formal Structure
Top-down power distribution
• Produce compliance, but never value • From Scientific Management • A common fallacy among managers is that
work(value) is done through the formal structure
• The formal hierarchy is not a demand from
customer, but usually a (wasteful) internal centralization of power
Different organizational structure – Distribution of structures
30%
All organizations have it (more or less…)
20%
50%
Different organizational structure – Distribution of structures
30%
All organizations have it (more or less…) • Processes • Planning • Centralized coordination • Hierarchy • Top-down decision making • Micro managing • BUDGET!
• Side effect of the social interactions • Coffee breaks • Friends • Political rule breaking • Hidden agenda • Information seeking • Autonomy
20%
50%
• Generation of value • Real performance • Learning • Dialogues • Prototyping • Collaboration • Customer demand focus
Different organizational structure – Distribution of structures
30%
All organizations have it (more or less…)
20%
50%
Different organizational structure – Distribution of structures
20%
70%
10%
Different organizational structure – Distribution of structures
20%
70%
10%
Organizational transformation, what is that? I call it part of management!
Organizational reengineering – New organization
Emb
PC
Software Engineering
Merge of two departments • 40 people included consultants • Off-shore in India • Multi-site development I Poland
Included system specialist (product owners) and system tester into a value unit • +5 system testers • +8 product owners
Value unit Software
Engineering
Organizational reengineering – New teams formation
Value unit
X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected Effective
T
New teams formation workshops
• Belbin theory as a theme to shift focus from daily work and to learn how to build teams
• Workshop 1: Train Scrum Masters and Master Programmer Architects in Belbin theory and to crate a guiding coalition
• Workshop 2: Pair Scrum Masters and Master Programmer Architects
• Workshop 3: Train and inform all others in Belbin and how to create new teams
• Workshop 4: Team creation, exercises, self-selection, specialization, team values, members, Belbin reports
• Workshop 5: Follow up and minor
changes (3 changes)
NYAC Kompetens AB E-Interplace
© Belbin Associates 2001 Utskriven den 17-Oct-12
PROFILGENOMSNITT FÖR GRUPP
Observera att den här rapporten bygger på den kompletta profilen.
0
20
40
60
80
100
ME SP IMP CF TW CO PL SH RI
Antal kandidater: 56Antal observationer: 308
Gruppens bästa egenskap är dess väl genomtänkta angreppssätt på problem och dessomsorgsfulla val bland möjliga alternativ. Med sin försiktiga attityd kommer den härgruppen knappast att begå några allvarligare misstag även om den kan vara långsammed att omsätta beslut i handling.
I värsta fall blir den här gruppen alltför introvert och inte tillräckligt intresserad av vad somsker i världen utanför. Det här spelar kanske inte så stor roll i vissa lägen, men om detgör det bör gruppen söka efter någon som tycker om att utforska och knyta nya kontakter.
Result
Scrum Master
Developers & testers Master
Programmer Architects
Virtual product owner
ProgramTeam
India Team
Herd Mgmt Team
PlatformTeam
FeedingTeam
Farm Automation
Team
Milking Team
ProgramTeam
India Team
Herd Mgmt Team
PlatformTeam
FeedingTeam
Farm Automation
Team
Milking Team
Result
Scrum Master
Developers & testers Master
Programmer Architects
Virtual product owner
Program manager
System Architect Configuration Manager
Quality Assurer
Release manager
Test leader
Solution Analyst
ProgramTeam
India Team
Herd Mgmt Team
PlatformTeam
FeedingTeam
Farm Automation
Team
Milking Team
Result
Scrum Master
Developers & testers Master
Programmer Architects
Virtual product owner
Program manager
System Architect Configuration Manager
Quality Assurer
Release manager
Business Manager
Portfolio Manager
Test leader
Solution Analyst
ProgramTeam
India Team
Herd Mgmt Team
PlatformTeam
FeedingTeam
Farm Automation
Team
Milking Team
Result
Scrum Master
Developers & testers Master
Programmer Architects
Virtual product owner
Program manager
System Architect Configuration Manager
Quality Assurer
Release manager
Business Manager
Portfolio Manager
Line Managers
Test leader
Solution Analyst
Organizational reengineering – Widen job titles
Value unit
X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected
T Widen job titles
Widen job titles (wider responsibility) All team members are now software engineers! Programmers have to do more: • Test more • Install at farms • Requirement analysis
Testers: • Do different types of test • Get involved in requirement analysis • Get involved in design • Get involved in planning
Requirement people: • Test more • Always available
Organizational reengineering – Communities of practice
Value unit
X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected
T Widen job titles
Communities of practice
Result – Various forums(communities) and reoccurring meetings
ProgramTeam
India Team
Herd Mgmt Team
PlatformTeam
FeedingTeam
Farm Automation
Team
Milking Team
Scrum Master Forum
Architect Forum
Testers Forum
Developers Forum
Scrum of Scrum Meeting
Program team meeting
Project Portfolio Board
Product management meeting
Customer Support Team meeting
Daily Scrum
Organizational reengineering – New teams formation
Value unit
X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected
T
Value adding hierarchy
Widen job titles
Communities of practice
Value adding hierarchy – Program team, the center of the unit
“Center” Serves the periphery
“Periphery” Reaction &
decision
“Business Area”
Decentralized decision-making
Organizational reengineering – New teams formation
Scalable
Value unit
X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected
T
Value adding hierarchy
Widen job titles
Communities of practice
Scaling (~65 people)
ProgramTeam
India Team
Herd Mgmt Team
PlatformTeam
FeedingTeam
Farm Automation
Team
Milking Team
Scaling (~100-150 people, 10 teams)
Scaling a formal structure is easy
Scaling a formal structure is easy
Scaling a formal structure is easy
Scaling a formal structure is easy
Scaling a formal structure is easy
Scaling a formal structure is easy
Scaling a formal structure is easy
Scaling Value Creation Structure is complex and more complicated
Scaling Value Creation Structure is complex and more complicated
Organizational reengineering – New teams formation
Scalable
Value unit
X-functional T-shaped teams Handle any problem Communicate without managers meddling Self-organized and self-selected
T
Value adding hierarchy
Widen job titles
Communities of practice
Software Program of Continuous Delivery
“It is always wise to look ahead, but difficult to look further than you can see” – Winston Churchill
Software Program
Software Program – Break down of a project
Idea Concept Development Launch
BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8
Scope (fix) – Time (1-2 years not usual) – Cost (yearly budget)
Project Epics Releases Cost per Epic
BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8
Idea Concept Development
Launch
Architectural Epics
Business Epics
Quality Improvements Epics
Shorten lead-times to market
Software Program – Break down of a project
Idea Concept Development Launch
BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8
Scope (fix) – Time (~1-2 years not usual) – Cost (yearly budget)
Project Epics (Architectural & Prioritized Business)
Releases (Integration order)
Cost per Epic (yearly budget)
BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8
Idea Concept Development
Launch
Architectural Epics
Business Epics
Quality Improvements Epics
Shorten lead times for first time delivery of customer value, PSI multiple times during project life-time
Shorten lead times for first feedback, opportunity to adapt to changing demands and possibility to close a project without sunk-cost, etc
Software Program – Continuous Delivery of Multiple Projects
Inc n + 1 Inc n + 2 Inc n + 3 Inc n + 4
Project A
System Architecture
Quality Releases
Project B
Project C
Project D
System Releases
Single point of entry, handles all variation…
Software Program - Scaled Scrum
PSI
• -------- • -------- • -------- • -------- • -------- • --------
Increment backlog
• Build release candidate
• Demo • Release review
meeting
Joint teams retrospective meeting
Hardening period 3 weeks
RC
PSI PSI PSI PSI
PPB 1 PPB 2
Sprint planning meeting
Daily Scrum
Weekly Scrum of Scrums Year 1 Year 2
Inc 1 Inc 2 Inc 3 Inc 4 Inc 5
Pre-planning meeting
Release planning meeting
PSI
Field test
Software integration
Sprint retrospective
One-pager release report • Aggregated increment burndown
• Status &progress each Epic
• Improvements to be done
• Impediments
• -------- • -------- • -------- • -------- • -------- • --------
Software Program – IRL Visualization
Projects pulse board
Software Program board 1 year floating window
Software Program board current increment
Team Kanban board
Support issue board
Program team improvement Kanban board
Learning’s & thoughts Learning’s & thoughts
“It’s all about where your mind’s at” – Kelly Slater
ProgramTeam
India Team
Herd Mgmt Team
PlatformTeam
FeedingTeam
Farm Automation
Team
Milking Team
Learning's – Team formation
“Scrum Masters not easy to find!”
“What should the team specialization be?”
“Is this the right team for me?”
“What should the program team do?”
“How will it all work?”
“More people is complicated!”
“We need more people in the team?”
Learning’s – Widen job titles/roles
“I’m specialized in C#, should I now do C++?”
“I’m a programmer, do I have to system test?”
“Access to testers when we need them!”
“Access to requirement people when we need them!”
“It is scary to meet a customer!”
Learning’s – Communities of practices
“Each forum needs a facilitator who is a driving force!”
“One hour a week is not enough for architecture work!”
“The PPBs need a lot of preparations!”
“The Program team meeting works well in a Kanban structure!”
Learning’s - Value adding hierarchy
“I need resources to do this, to do that….”
“Who is responsible!” “The program team shall serve the development teams, not the other way around!”
“Don’t specify, grow & explore! ”
Learning’s - Change
“It is mindset which is the most important to change, the model and processes are secondary!”
“To change the system, you have to be out there, where it happens, at all times!”
“Changes are hard, it takes time, a lot of effort and a lot of pain!”
My thought about Management 3.0…
“Universal, not only for software development.”
My thought about Management 3.0…and complexity
“Recognize different situations and understand when to approach them with complexity and when to use good practices in ordered situations.”
My thought about Management 3.0…and setting constrains
“As a manager, set constrains and understand what the difference is from rules, and be comfortable when it doesn’t turn out the way I thought it would.”
My thought about Management 3.0…and practices
“To work with emerging practices, to explore and adapt rapidly. Don’t push the system when it doesn’t do what I want, but to change the angle and try something else.”
My thought about Management 3.0…and structure
“Fractal organization scaling really changed the way I thought about how to create an effective structure. Scale it up in theory and imagine the problems, solve them using fractal theory and optimize for flow, demand and value. Scale down but use the same structure.”
My thought about Management 3.0…and changing
“How to change the world? Start with “why”, then “how” and verify with “what”. The mojito model can be really effective when used with good preparations and thorough analysis before applied. Easy to see what I did wrong looking back, don’t under-estimate the amount of work needed to plan for future changes. It truly is complex.”
Change Management 3.0
My thought about Management 3.0…and vision
“Unless a vision starts with “why” and “how” not enough will follow. “what” is attractive only to the early adopters, the early and late majority don’t follow freely “what”. When I failed with “why” and “how” I tried the old command & control, use my power as a manager. I told them to do … which was wrong and the result was nowhere to my satisfaction. BAD MANAGER!!” “what” = specification/command “why” = incentive/motivation “how” = sense-making
My thought about Management 3.0…over all
“New door to many very useful theories and practices.”
My thought about Large Scale Agile
“Stay releasable, always!!”
Said about planning the release….
“…we cut and we cut, and cut until there was nothing left. We are down to the bare minimum of the minimum. It was a horrendous day.” - Fernando Mazeris, System Director
Said about planning the release….
“Today we deliver on time with better control of the quality. To improve also on the scope we are turning best practice advice on structure and routines into action. “ - Ola Markusson, Director Development & Engineering
Said about scrum….
“…scrum and all is fine, but I have an other model, JDT – Just Do It!” - Jonas Wahlgren, programmer
Software Program
• Study the system • Create a value based vision • Setup a change program • Refactor the organization towards a flow based system
which scales • Chose multiple suitable Agile models …….and don’t forget to change your mindset, it is the hardest part…
Thank you
Me…
Johan Oskarsson
@johanoskarsson
+46 073 3355778
johan-oskarsson
www.captaintrouble.com