Intersection18: Self-Management and the Process Centric Organization - Sasha Aganova
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Presented at Intersection Conference - http://intersectionconf.com/ Sasha Aganova Managing Partner, Process Renewal Group Imagine a company with no bosses and no time or money wasted on complex layers of management. This is a reality today for a growing number of organizations that are adopting self-management structure. These organizations achieve true organizational agility and eliminate unnecessary management overhead activities. While the self-management organization come in different shapes and sizes, there is one common aspect between all of them, and that is a focus on process management. In fact, an end to end process view becomes the common language that the various teams use to communicate, and operate on a daily basis. In this session Sasha will: • Discuss how self-management enables a highly scalable and agile enterprise • Learn the essence of end to end value process management as can be applied in any organization • Understand how some self-managed organizations operate • Develop an appreciation for how process management is critical for self-managed organizations
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Intersection18: Self-Management and the Process Centric Organization - Sasha Aganova
- 1. www.processrenewal.com © Process Renewal Group 2018 Sasha Aganova +1-416-473-9899 Sasha.Aganova@processrenewal.com Twitter: @SashaAganova www.processrenewal.com
- 2. www.processrenewal.com © Process Renewal Group 2018 2 WHY? Why are companies interested in self-management? and Why now?
- 3. www.processrenewal.com © Process Renewal Group 2018 3 Big Companies Want to Act Like Small ones SPEED TO MARKET ENGAGED TEAM FAST DECISION FAST CHANGE PRODUCT BASED ON INSIGHTS EVERYONE SEES THE BIG PICTURE
- 4. www.processrenewal.com © Process Renewal Group 2018 4 President VP Manager Staff Staff Staff Manager Staff Staff Staff Manager Staff Staff Staff VP Manager Staff Staff Staff Manager Staff Staff Staff Manager Staff Staff Staff VP Manager Staff Staff Staff Manager Staff Staff Staff Assistant The traditional view of the organization
- 5. www.processrenewal.com © Process Renewal Group 2018 5 The real organization Source unknown
- 6. www.processrenewal.com © Process Renewal Group 2018 6 The Organization in a Process View
- 7. www.processrenewal.com © Process Renewal Group 2018 7 The Organization As An Eco System Each dot represents an activity Represents a designed role
- 8. www.processrenewal.com © Process Renewal Group 2018 8 Each dot represents an activity Represents a designed role The Organization As An Eco System
- 9. www.processrenewal.com © Process Renewal Group 2018 FREEDOM WITHIN A FRAMEWORK “True freedom is not the absence of structure — letting the employees go off and do whatever they want — but rather a clear structure that enables people to work within established boundaries in an autonomous and creative way.” Erich Fromm (1900—1980) German-born American psychoanalyst and social philosopher
- 10. www.processrenewal.com © Process Renewal Group 2018 10 Spiral Dynamics Centralized Structure Decentralized Structure Cost Savings / Efficiency Customer Service Rigid Rules Ambiguous Structure Automation Flexibility
- 11. www.processrenewal.com © Process Renewal Group 2018 11 WHAT? What is self-management? and Where is it best suited?
- 12. www.processrenewal.com © Process Renewal Group 2018 12 The Morning Star Company • Largest tomato processor in the world, a self-managed company since 1990 – without a single boss, over 400 employees over 4000 seasonal workers and revenues just under $1Bil • Morning Star supplies approximately 40% of the U.S. industrial tomato paste and diced tomato markets • 2 Core Principles: • Human beings should not use force or coercion against other human beings • People should honor the commitments that they make to each other
- 13. www.processrenewal.com © Process Renewal Group 2018 13 The Morning Star Company Morning Star – Org. Chart Lines are commitments to each other • Management responsibility of planning, selecting, controlling is part of everyone's job description • Everyone is a manager, and everyone has an equal voice that impacts what they do • Do not need to seek permission • Leadership is earned • Nobody dictates start A and stop doing B • Requires active communication, that requires initiative • People have to keep their scorecards • Self-healing organism
- 14. www.processrenewal.com © Process Renewal Group 2018 14 Characteristics of a Self Managed Company Decision Making Continuous Improvement Colleague Engagement Structure
- 15. www.processrenewal.com © Process Renewal Group 2018 15 The Self-Managed company Critical processes for SMO (bigger focus on these processes than in other types of organizations). Irrespective of the company size and industry • Recruit Talent • Set-up and maintain contractual relationships (i.e. prepare/review Peer Agreement; update regularly personal and organizational infrastructure) • Monitor personal and business performance and act accordingly • Make decisions • Recognize and reward Self and Peers • Resolve conflicts
- 16. www.processrenewal.com © Process Renewal Group 2018 16 Companies predisposed to Become Self-Managed Software Design Millennial majority Start-ups (from ground-up) Leader embraced, no desire for formal power
- 17. www.processrenewal.com © Process Renewal Group 2018 17 HOW? Steps to implement a Self management
- 18. www.processrenewal.com © Process Renewal Group 2018 7 STEP APPROACH FOR IMPLEMENTING SELF-MANAGEMENT 1 2 3 4 5 6 7 Commitment Open Space Master Class Infrastructure Contract Development Contract Signing Ceremony Sustainment Confirm commitment from leadership: • Understand the reasons • Confirm how deep • Identify who will drive/maintain self- management Listen and observe to: • Understand current concerns, values and beliefs • Identify current strengths and weaknesses of the team behaviours Train, engage and establish: • Principles, practices and foundation • Commitment, trust, communication • Management, culture, conflict Develop infrastructure: • Connect and align all collected elements • Review for completeness and orphan processes • Prepare personal and overall organisational infrastructure Prepare contracts: • Negotiate the terms of Colleague Letters of Understanding • Populate Colleague Letters of Understanding • Update infrastructure Sign contracts: • Sign Colleague Letters of Understanding • Declare transition to organisational self- management • Celebrate hard work and the new organization On an on-going basis: • Review of contract performance and business key metrics • Mitigate and resolve conflicts • Replicate the implementation of organizational self- management Methodology developed by Doug Kirkpatrick
- 19. www.processrenewal.com © Process Renewal Group 2018 7 STEP APPROACH FOR IMPLEMENTING SELF-MANAGEMENT 1 2 3 4 5 6 7 Commitment Open Space Master Class Infrastructure Contract Development Contract Signing Ceremony Sustainment Confirm commitment from leadership: • Understand the reasons • Confirm how deep • Identify who will drive/maintain self- management Listen and observe to: • Understand current concerns, values and beliefs • Identify current strengths and weaknesses of the team behaviours Train, engage and establish: • Principles, practices and foundation • Commitment, trust, communication • Management, culture, conflict Develop infrastructure: • Connect and align all collected elements • Review for completeness and orphan processes • Prepare personal and overall organisational infrastructure Prepare contracts: • Negotiate the terms of Colleague Letters of Understanding • Populate Colleague Letters of Understanding • Update infrastructure Sign contracts: • Sign Colleague Letters of Understanding • Declare transition to organisational self- management • Celebrate hard work and the new organization On an on-going basis: • Review of contract performance and business key metrics • Mitigate and resolve conflicts • Replicate the implementation of organizational self- management Methodology developed by Doug Kirkpatrick
- 20. www.processrenewal.com © Process Renewal Group 2018 3 steps to develop Infrastructure 01 02 Collect, connect and align all elements Review for completeness and orphan processes Prepare personal and overall organizational infrastructure 03
- 21. www.processrenewal.com © Process Renewal Group 2018 21 01 Collect, connect and align all elements
- 22. www.processrenewal.com © Process Renewal Group 2018 22 01 Connect and align all collected elements BPM attributes relationships ©alexaganov
- 23. www.processrenewal.com © Process Renewal Group 2018 23 01 Connect and align all collected elements Many to many relationships Principles Values Strengths Products Opportunities Vision Strategy Goals Objectives Requirements Threats Constraints Stakeholders Value Chains Events Responsibilities Triggers Functions Business Rules Skills Workflow Procedures Jobs Roles Information Legal Facilities Knowledge Financial Assets Data Tax Objects Time Locations Cost Budget Hardware Networks Databases Applications Middleware Systems Methodologies Tools Weaknesses Mission Organizations Models Use Cases Services People Projects Risks Processes
- 24. www.processrenewal.com © Process Renewal Group 2018 24 02 Review for completeness and orphan processes Process-centric Organisation
- 25. www.processrenewal.com © Process Renewal Group 2018 25 03 Prepare personal and overall organisational infrastructure 1. Personal infrastructure – Personal Contracts that contain : • Intent - personal mission • Overall, company responsibilities (i.e. Company Vision, Mission) 2. Personal responsibilities (tasks) 3. Decision-making authority 4. Perfect Result per responsibility (personal KPIs) • Near term Target Results • Dates to report on results • Date on updating Personal Contract Customer