Yes, we all know the world has gone VUCA (Volatile, Uncertain, Complex and Ambiguous). But even within the Agile movement, deep inside, we still like to stick to an idea of management which is attached to concepts such as predictability, systematization, repeatability, and tries to make reality fit to this mindset. Based on Dave Snowden’s Cynefin Framework, and in partnership with his company, we are at the moment developing a set of practical methods and tools that allow managers from, the team leader upwards to master the complex aspects of reality. This paper gives you insight into our ongoing work.

2. 15. October 2016
Complexity in the Company
Dr. Bernhard Sterchi

3. 3
It’s inadequate, but
it’s all you’ve got.

4. What is complexity?
The system in the box has two
states, White and Black:
White:
You press A,
it shows the first light,
and the system is Black.
Black:
You press A,
it shows the third light,
and the system is White.

5. Complexity with Humans
5

6. What’s the connection to Agile?
6

7. The Cynefin Framework
7
Dave Snowden/
Cognitive Edge

8. 8
Principles:
• Result orientation
• Contribution orientation
• Concentration on the
essential
• Utilize existing strengths
• Trust
• Positive outlook
Peter Drucker/Fredmund
Malik

9. Cynefin Manager
9
Tools Activities Principles Framework Principles Activities Tools
Explore complexity –
exploit order
Manage
by vectors
Make sense
Experiment
Rules of thumb
(heuristics)
Pre mortem
Closed circuits
Team time-out
Ritual dissent
Future
backwards
Strategic
storyline
Delegation
Safe-to-fail
experiments
Nudge for
emergence
Obvious
ComplicatedComplex
Chaotic
Resilience
Distributed
intelligence
Aligned
autonomy
Small objects
Remove filters
Facilitate
Recovery
Manage
constraints
Four points
contextualisation

10. Manage Constraints
10

11. Manage Constraints
11

12. Manage Constraints
12

13. Finding Rules of Thumb
1. Identify the SYSTEM IN FOCUS
2. Describe the PATTERNS in this situation.
• What is happening over and over again? (Agents)
3. Find out what INFLUENCES the patterns. (Modulators)
4. Identify the BENEFICIAL direction
• More of this, less of that.
5. Describe a rule to FOCUS on the influences

14. Closed Circuits
14
In an organization, closed circuits of communication increase
resilience, by making sure the organization finds out quickly if
things are not going as planned.
Confirmation of order
At the moment an order (or request) is given, a confirmation of
order makes sure the principal knows that the order has arrived,
and that the agent expects to complete it within the
communicated parameters. If parameters cannot be met, the
principal receives this information early, when alternative
options are still available.
Return on execution
Once the task is completed, the agent informs the principal. This
is essential if the result does not per se end up in the hands of
the principal.
Tracking
If a principal keeps track of deadlines for delegated tasks, he is
in a position to react quickly if the expected return on execution
does not arrive.

15. 15
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16. Bernhard Sterchi, Palladio Trusted Advisers, Gerbergasse 30, Postfach, CH-4001 Basel, +41 78 783 72 44, bernhard.sterchi@palladio.net, www.palladio.net

17. THANK YOU TO OUR

18. THANK YOU TO OUR
PARTNERS