Agile Organization DesignLv Yi @ Odd-e

Introduction

What is organization?

“An organization is a social entity that has a collective goal and is linked to an external environment.”

- Wikipedia

Organization Design

Star Model

Strategy

• Set the organization’s direction

• Encompass company’s vision and mission, as well as its short- and long-term goals

• The cornerstone of organization design process

Structure

• Determine where formal power and authority are located

• It comprises the organizational components, their relationships, and hierarchy

• It is what is shown on a typical organization chart, including roles and responsibilities

Processes

• Structure alone creates barriers to collaboration

• Lateral capabilities to overcome (from informal to formal)

Rewards

• Metrics help align individual behaviors and performance with the organizational goals

• Reward and recognition system communicates what the company values

People

• The people (HR) practices create organizational capability from the many individual abilities resident in the organization

• Different strategies require different people practices in the area of selection, performance feedback, and learning and development

Agile Organization

Strategy

Organizational Capabilities

Origin of Scrum

Scrum in the Context

Strategy Product

Organizational capability

Speed and flexibility

Organizational design

(explicit) Structure and Processes

(implicit) Rewards and People

Agile transformation is to increase organizational agility

Exercise: What is Organizational Agility?

Doing and Being

Practices

Culture

Perfection Vision

Create the organizational ability to respond to changes by being able to deliver or change direction at any time without additional cost

- Craig Larman- Bas Vodde

Agility is the ability to create and respond to change in order to profit in the turbulent business environment.

An enterprise’s ability to take advantage of opportunities, respond to challenges, and to do so while controlling risk.

- Jim Highsmith

- Ken Schwaber

Performance

• Speed

• Flexibility

• Value

• Quality

• Productivity

Begin with the end in mind

M-MGWWe believe that fundamental changes needed in our minds to succeed with this journey are as follows:

• More people initiative and less top down control

• More team players and less individual heroes

• More courage and less risk avoidance

• More conversations and less one way communication

• More personal growth and less comfort zone

My own experience

• Quality crisis

• Responding to change

• “I felt that our organization were like a school where we learned together”

Structure

Organizational Structure

Functional

Product

Customer

Exercise: Understand basic structures

Functional Structure

+ Knowledge sharing+ Specialization+ Leverage with vendors+ Economies of scale+ Standardization

- Managing diverse products or service- Cross-functional processes

Product Structure

+ Product development cycle+ Product excellence+ Broad operating freedom

- Divergence- Duplication- Lost economies of scale- Multiple customer points of contact

Customer Structure

+ Customization+ Relationships+ Solutions

- Divergence- Duplication- Scale

Scrum Roles

Product Owner Team ScrumMaster

Scrum Teams as Organizational Unit

Cross-functional Team

• All skills needed to build the product

• Balancing specialization with generalization

• Close cross-functional collaboration

Self-managing Team

Team together has the authority to:

✓Design, plan, and execute their task

✓Monitor and manage their progress

✓Monitor and manage their process

Authority Matrix

Feature team vs. Component team

Item 1

Item 2

Item 3

Item 4

...

…

system

comp

C

Team

comp

A

Work from multiple teams is required to finish a customer-centric feature. These dependencies cause waste such as additional planning and coordination work, hand-offs between teams, and delivery oflow-value items. Work scope is narrow.

Product

Owner

comp

B

Team

comp

A

Team

comp

B

comp

C

Item 1

Item 2

Item 3

Item 4

...

…Team

Wu

Product

Owner

Team

Shu

Team

Wei

system

comp

A

comp

B

comp

C

Every team completes customer-centric items. The dependencies between teams are related to shared code. This simplifies planning but causes a need for frequent integration, modern engineering practices, and additional learning.Work scope is broad.

Component teams Feature teams

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C.Larman & B. Vodde

All rights reserved.

Feature team vs. Feature project

Product Project

Exercise: How does Scrum team support your strategy?

Managementin Agile organization

Exercise: Where do they fit?

Product Owner Team

ScrumMaster Others

Product Management

Product Manager as Product Owner

Change!!!

✓ Product Manager is used to “throwing the project over the wall” and holding engineering responsible for meeting needs.

✓ Scrum puts this responsibility back on the Product Owner and customers through the inspect and adapt and the Sprint Review. Make decisions regarding ROI every Sprint end.

Project Management

Distributed Project Management

Avoid or Transform PMO?

http://blog.odd-e.com/yilv/2014/10/the-future-of-project-managers.html

People Management

Manager as ScrumMaster?

Experience reportfrom Nokia Siemens Networks

Fewer Managers?

• Probably yes, with flatter organization

• “My ideal is to have one supervisor for every one hundred workers” - Ishikawa

• My experience: 3-5 teams for experienced manager, 2-3 teams for new manager

Processes

New Product Development

Iteration(Processes around Scrum)

Scrum in a Nutshell

From Ready to Done

• Sprint, from Ready to Done

• What happens before Ready?

• What happens after Done?

Exercise: “Value Stream Mapping”

Before Ready

Is Release Planning predictive or adaptive?

Stop Contract Game

release N release N+1

repeat

cross-functional

Scrum feature

teams do all work

so that product

can potentially be

released each

iteration

a 2-4

week

iteration

true

release

potential

release

potential

release

continuous product development eliminates projects in

product development; there is simply an ʻendlessʼ series of

iterations, each of which is similar in activities and each of

which ends in a potentially shippable product increment

Product

Backlog

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Copyright © 2009

C.Larman & B. Vodde

All rights reserved.

Dual-track Scrum

Discovery Delivery

Opportunity backlog Product backlog

Discovery team Delivery team

Collaborative Self-organizing

Continuous Scrum flow

Getting Ready Getting Done

After Done

“Undone” work

Plan

ReviewP

lan

ReviewP

lan

ReviewP

lan

Review

Release?

Undone Undone Undone Undone

Plan

Review

Delay Risk

Release

Stabilization Sprint

“Undone” unit is a trap!

Extending “Done”

Planning

Analysis

Architecture, Infrastructure

Coding

Design Testing

Performance

User Acceptance

Pilot

Live

Continuous Delivery

• From sprint-based delivery to continuous delivery

• Customer impact assessment

Flow(Processes around Kanban)

Kanban in a Nutshell

Visualize

Limit WIP

Manage flow

Explicit polices

Feedback loops

Improvements

Kanban System

Maintenance

Exercise: Maintenance Models

Challenge with Scrum

Kanban in a Nutshell

Visualize

Limit WIP

Manage flow

Explicit polices

Feedback loops

Improvements

Continuous Improvement

At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly

Sprint Retrospective

Release Retrospective

Improvement Vision

• Emerging

- The most painful problems from the past

• Envisioning

- What is the perfection?

Rewards & People

Performance Evaluation

Exercise: Why Performance Evaluation?

Functions of Performance Evaluation

Feedback and Communication

Staffing and Development

Coaching and Guidance

Improvement

Compensation

Legal Document

Rewards

“I hate my work, I only do it for the money, i

don’t want to think for myself, indeed, I’d rather just do as little as I can.”

“I like to work, it’s part of my life, i want to do well,

and I will work hard if given the responsibility

and recognition I deserve.”

Video: Drive by Dan Pink

1.

2.

Compensation

• Make sure the promotion system is unassailable

• De-emphasize the merit pay system

• Tie profit sharing to economic drivers

Autonomy

Mastery

Purpose

Exercise: How does Agile help “drive”?

Improvement

Management By Objectives

“Improving systems and processes improves the performance of the organization.”

“Individual improvement initiatives are most effective when they are combined with serious efforts toward improving the work climate, systems, and processes.”

“Improving individuals’ performance improves organizational performance.”

“Remove barriers that rob people in management and in engineering of their right to pride in workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective”

W. Edwards Deming

Performance Metrics

Performance

• Speed

• Flexibility

• Value

• Quality

• Productivity

Metrics for Agile Adoption

• The ratio of fixing work to feature work

• Cycle time

• Number of defects escaping to production

http://www.estherderby.com/2011/10/metrics-for-agile.html

Measure Organizational Agility

• Frequency of releases (months)

• Stabilization time for releases

• # of customers on current release

• Time to get small change to customer

• Maintenance as % of development budget

• Total defects

• Customer satisfaction

• Employee satisfaction

Exercise: Leading vs. Lagging metrics

Measurement Dysfunction

Span of Control

Span of Influence

Team Goal

• Give all of the members of an Agile team the same performance goals

• “How did you help achieve the team goal?”

Values and Behaviors

Culture

• Behavior is the manifestation of an organization’s culture

• No matter how clearly the organization’s values are stated, it is the way that people act that defines the culture

Exercise: Vital behaviors

Development

Team Development Goals

• Baseline current team skill profile

• Define team development goals

• Align individual development goals

Individual Development Goals

• Set individual goals for individual development

• Make sure individual goals are aligned with team goals

Generalizing Specialist

• Avoid job titles and job descriptions

• Try simple general job descriptions

Manager as Coach

• Teach at work

• Toyota coaching Kata

• Mentor/Mentee dialogue

• Supported by A3 report

Staffing

Self-organizing into teams

Team Behaviors

Value highly the personal traits, characteristics, and behaviors of good team members

Team hiring

Reference