#AgileTauranga17

Our purpose is to be a leading forum to create and sustain a nationwide agile community, independent of commercial drivers or any specific method/framework, guided by and actively advocating for the values and principles of the theAgile Manifesto

The Agile Alliance of New Zealand has the primary goals of:• Supporting the growth of the agile mindset through the

industry in New Zealand, with particular emphasis on areas which are currently underserved (geographic areas as well as industries)

• Running programmes which have socially beneficial outcomes as well as improving the state of the industry

Shane Hastie MIM ICE-VM

Director of Agile Learning Programs

The Foundations of Business Agility

Agenda

•Introduction

•The need for business agility

•What your organisation can do

•What you can do

•Wrap-up

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Business Agility

•Business agility describes the nimbleness of a company; that is, the ability to adapt quickly while empowering everyone associated with the brand.

•Forbes

•Agility is the ability of an organization to renew itself, adapt, change quickly, and succeed in a rapidly changing, ambiguous, turbulent environment.

•McKinsey

http://theagiledirector.com/article/2017/05/25/domains-of-business-agility-v2/

Why Business Agility

The World today is in a state of VUCA

“A rapidly evolving, dynamic, chaotic complex business environment is the

norm rather than the exception”

David Sypnieski

• Rate of changeVolatility

• Unclear about future outcomesUncertainty

• Many, many loosely related factors impact outcomesComplexity

• Lack of clarity about meaning Ambiguity

Business Agility is Necessary for Survival

The ability to respond rapidly to changes in the internal and external environment without losing sight of organisational goals

•Adaptability

•Flexibility

•Balance

Building responsiveness and change into the DNA of the organisation

Change Your Organisation

State of Business Agility

State of Business Agility Report – 2017 – CA Technologies

Changed Imperatives• Leadership at every levelTop-down

management

• Do less, betterDo more with less

• Minimum viable process, empowered people

Process over people

• Realtime value metricsCentralized annual planning & budgeting

• Decentralized rolling-wave planning

Activity milestones

• Long lived teams responsible for products or services

Temporary teams on projects

Organisations that have embraced Agilehave 3 core characteristics*

•The law of the small team

•The law of the customer

•The law of the network

*From an article by Steve Denning: http://www.forbes.com/sites/stevedenning/2016/09/08/explaining-agile/#4415385e2ef7

Great Teams

https://rework.withgoogle.com/guides/understanding-team-effectiveness/steps/identify-dynamics-of-effective-teams/

Create Space for Learning

Aligned Autonomy

Measuring the Right Things

•Value as outcomes delivered, not as work done

•Productivity (Value/Cost to create Value)

•Benefits Realized

•Quality

•Customer and Employee Engagement & Satisfaction

•Net Promoter Score

•Org Capability and Responsiveness

•How rapidly are we learning?

Beyond Budgeting – New Financial Models

Traditional BudgetingManagement Model

Beyond BudgetingManagement Model

Targets & rewards Incremental targetsFixed incentives

Stretch goalsRelative targets & rewards

Planning & controls Fixed annual plansVariance controls

Continuous planningKPI’s & rolling forecasts

Resource & coordination

Pre-allocated resourcesCentral co-ordination

Resources on demandDynamic coordination

Organisationalculture

Central controlFocus on managingnumbers

Local control of goals/plansFocus on value creation

Radical Transparency

Act on Feedback

•Truthfully and honestly examine the feedback through all channels

•What is the next sensible step –amplify, change direction, or stop?

•Adapt and respond

Avoid Waste

Partially done work

Extra features

Relearning

HandoffsDelays

Task switching

Defects

Rethink our Organizations

Respond at the speed of change

Constantly listening to the voice of the

customer

Empower and align our people

People are not “resources” or “assets” – they are the primary

source of value and innovation

Outcomes over outputs Value over busy

Innovation as a core competency

#NoProjects, #NoEstimates – stop

pretending we can predict the

unpredictable and adopt new funding models

This means real changes,

not putting lipstick on a pig

http://thenewsdoctors.com/wp-content/uploads/2014/11/pig-lipstick.jpg

Change Yourself

ATTITUDES AND HABITSESTABLISHED SET OF

Become a Lifelong Learner

Become Passionately Dissatisfied

•Challenge the status quo •“We’ve always done it that way” leads to entrenched failures

•Stop trying to “do more with less” –focus on doing less, and doing it well

•Look for new ways, new ideas, new combinations of existing ideas

•Take ownership of your own improvements

•Hold yourself and your colleagues accountable

Image © Kenhurst | Dreamstime Stock Photos& Stock Free Images

Become Customer Fanatical

•We all have customers

•Empathize and understand their needs

•We all contribute to the value stream

•How can I make my customers’ lives better?

Think like an entrepreneur

•Everything is an experiment

•Estimates are hypotheses

•Take calculated risks

•Courage to fail in order to succeed sooner

•Welcome challenges

•Embrace uncertainty and transform into knowledge

•Learn continuously through fact-based data analysis

•Create time and space for experimentation and innovation

•Become comfortable being uncomfortable

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Source: IDEO

Transform Yourself

•Personal transformation is necessary in order to achieve sustainable organisational transformation

•This is the responsibility of everyone in the organization, not just those at the top

https://www.linkedin.com/pulse/20140714023453-85816712-the-difference-between-change-and-transformation

VUCA Revisited

•Vision•The intent to create the future

•Understanding•Learn, hear, feedback

•Clarity•Sense making

•Agility•The ability to respond to change in order to profit in a turbulent world

“A rapidly evolving, dynamic, chaotic complex business environment is the norm rather than the exception”

David Sypnieski

• People

• Marketing

• Finance

• Innovation

• Leadership

Business Agility

Foundations

Shane Hastie,Director of Agile Learning Programs

Contact Informationshane@icagile.com

ICAgile.com

Twitter: @shanehastie

LinkedIn: http://nz.linkedin.com/in/shanehastie/