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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)

                        Change                      Learning’s &
                        program                     thoughts
                                  Organization
                                  reengineering
     Study/findings



Delaval




                                                  Software
                                                  Program
                      Vision
…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
3
TetraLaval Group

                       Tetra Laval

           Tetra Pak      DeLaval    Sidel

Internal
4
”Old School” no more




Internal
5
Heavy duty




Internal
6
Loose Housing




Internal
7
Voluntary Milking System – VMS




Internal
8
The world’s first automatic rotary system
    DeLaval AMR™




Internal
9
Swinging Cow Brush




Internal
10
Study the system

                                                              Study/findings




       “If you do not know how to ask the right question, you discover nothing”
       – W. Edwards Deming
Study the system




                                       Objective:
                              Software development at D&E



                                           D&E
                                      BA Capital Gods

                                  Delaval International
               System within system
Learning’s - Limits to grow
                                         “The quality and huge                  “The project models
                                      technical debt backlog had                 was not suited for
“The energy level in                        to be handled”                     software development”
 development could
   be enhanced”

                                            Good quality
                                             products

                                                                                           “Projects was handled
                            Reinforcing       Frequent             Balancing                without full insight to
                            feedback          Deliveries           feedback                 interdependencies ”


 “The insight in planning
   and visions could be                                      “Customer felt a growing
        improved”                                          frustration because of to few
                                                                     deliveries”
Learning’s - Limits to grow
                                       “Low energy                   “Low quality with huge          “Stiff low value linear                      “Low visibility
                                       environment”                 technical debt backlog”             project models”                             and blind
                                                                                                                                                 decision making
     “No learning                                                                                                                                   with long
     organization”                                                                                                             Visibility/          cadence”
                                                 Creative                                     Project models/                  Informed
                                               environment                                      processes                      decision
                          Personal                                         Good
                          mastery                                                                                               making
                                                                           quality
                                                                          products
                                                                                                                                                     “Projects planned
                                                                                                                                      Planning      without concern to
                                                                         Deliveries                                                                interdependencies ”
    “Unmotivated         Motivated
      people”             people
                                                                           Sales
                                            Reinforcing feedback                                    Balancing feedback
                                                                                                                                   Project
                                                                          Business                                                  size
                                 Empowered
                                                        Shared            proposals                                 Customer
                                   teams                                                        Budget
                                                         goals                                                      demands

                                                                                                                                                 “Large projects
                                                                                                                                                  which spans
                         “Stiff hierarchy             “Low insight in                  “Budget process                “Growing
                                                                                                                     frustration                   over years”
                         with centralized             management,                      which promotes
                              power”                   planning and                      command &                 because of lack
                                                          visions”                         control”                 of deliveries”



                     The system had ended up in a too ordered state where very few products
                     were delivered
Overall vision ( A sense of urgency was already in place)




                                                                       Vision




       “The only thing worse than being blind is having sight but no vision”
       – Helen Keller
Overall vision - Empowerment




              I’m change leader and software
              development manager, I need power to act
Overall vision - Empowerment



        My boss


                  3-4 weeks




          Me,                  Trust
Overall vision - Empowerment



                       My manager


                                    3-4 months
                                                 Trust



                         Myself
Overall vision - Empowerment



                               My leader
                                                  Trust

                                           4-12 months




                                  &I
Overall vision – Quantum leap in mindset


                                            Agile




                                Waterfall
Overall vision – Leader characteristics


                           Development Director
                                “my leader”



         Head of Testing                          Head of PMO



                                    Me
Overall vision – Leader characteristics


                                                    Value and flow design of system
                    Motivate intrinsic desires

                                                                           Integrate decision making with work
Adaptive & exploratory change attitude

                                                                           Measurement related to purpose
                    Learning attitude

                                                                        “What matters!” attitude to customers
             Act on the system management

                                        Cooperative attitude towards suppliers


                                             Open and honest
Overall vision - Agile Organization Characteristics
                              Ordered Traditional                                                                                              Complex Agile

Bureaucratic, top-down, multilevel hierarchy, policies and procedures that create      Perspective &        Nonbureaucratic, outside-in, system view, few level hierarchy, policies and procedures
                 many complicated internal interdependencies                             Structure            that produce the minimal internal interdependencies needed to serve customers

                         Functional, activities and order                             Design & System                                     Demand, value and flow

                              Separated from work                                     Decision making                                       Integrated with work

  Output, targets, standards, related to budget, few performance information           Measurement            Capability, variation, related to purpose, many performance information systems,
                     systems distributed to executives only                                                               providing data on customers especially, distributed widely

                                  Contractual                                       Attitude to customers                                       What matters

                                  Contractual                                       Attitude to suppliers                                  Cooperative, emergent

  Expectation that management will manage lower-level, people and budgets,                Role of            Expectation that management empower lower-level to manage, act on the system,
                         training to managers only                                      Management                                     training to many people

                             Control, specifications                                        Ideal                                   Learning, people-people collaboration

                               Reactive, projects                                         Change                                       Adaptive & exploratory, iterative

                Extrinsic, closed bonus system, reached targets                          Motivation                        Intrinsic, open bonus system, the goal is its own reward

   Inward focused, centralized, slow decisions making, political, risk adverse            Culture              Externally focused, empowering, quick decisions making, open and honest, risk
                                                                                                                                                 tolerant
Overall vision – Agile system big picture for frequent deliveries of
quality products
                Por%olio	
  council	
                                                                                                Product	
  visions	
  
                                                                                                                                                                                       Business	
  Epic	
  
                                       Por$olio	
  manager	
  
                                                                                                                                                                                                                                                                    Por-olio	
  vision	
  

                                                  Product	
  manager	
  &	
  Council	
  Facilitator	
  

                                                                                                                                                                                       Architectural	
  Epic	
                                                                                        BUSINESS	
  /D&E	
  
                                                                                                                                      Por-olio	
  backlog	
                                                                                                          Architecture	
  runway	
  
                                                                                                                                                                                                                                                                                                      MANAGER	
  
   Product	
  manager	
  
                                                      Product	
  manager	
  


                                Product	
  manager	
  
                                	
  




                                               Product	
  council	
                                                                                               Release	
  	
  
                                                                                                                                                                                                              Features	
  
                                                                                                                                                                                                                                                                     Release	
  

                                              Program	
  manager	
                                                                                                backlog	
  

                                                                                                           Project	
  managers	
                                                         Team	
  C	
  	
  
                     System	
  architect	
  

                                                                                                                                                                                                                                                                                                      PROJECT	
  /D&E	
  
                                                                                                                                                                                                                                                                                                      MANAGER	
  
                      Configura:on	
  manager	
                                                                                                                                            Team	
  B	
  	
  

                                                                                            Release	
  manager	
  
                                     Quality	
  Assurer	
  
                                                                                                                                                                                          Team	
  A	
  	
  

                                                                                                                                                                                                                                               Incremental	
  


            Team	
  A	
  	
                                                      Team	
  B	
  	
                                       Team	
  C	
  	
  
                                                                                                                                                                                         Team	
  
                                                                                                                                                                                         backlog	
  
                          Product	
  Owner	
                                                   Product	
  Owner	
                                     Product	
  Owner	
  
                                                                                                                                                                                                                   Stories	
  &	
  Tasks	
  

          Agile	
  Master	
                                                    Agile	
  Master	
                                      Agile	
  Master	
  

                                                                                                                                                                                                                                                                                                      SOFTWARE	
  /	
  	
  
                                           Architect	
                                                       Architect	
  
                                                                                                                                                                                                                                                                                                      HARDWARE	
  /TEST	
  
            Testers	
                                                            Testers	
                                              Testers	
                 Architect	
                                                                                                                         MANAGER	
  
                      Developers	
                                                          Developers	
  
                                                                                                                                                   Developers	
  
                                                                                                                                                                                                                    Sprint	
  backlogs	
  

                                        Memo	
                                                               Memo	
  
                                                                                                                                                                            Memo	
  
                                                                                                                                                                                                                                                     IteraBve	
  


                                                                                                                                                                                                                                                                                   Scaling agile D. Leffingwell
Change program
                                                                      Change
                                                                      program




      “If you don’t like something, change it. If you can’t change it, change your
      attitude”
      – Maya Angelou
Change program – “The social architecture”

                Study the system                            Why                              Benefits
                                                                                             realizations




                                                                                                            Consolidate
                  New paradigm
Conceptualize




                                                                                           Return on
                                                                                           investment

                 Initiation & Setup

                                                                                        Procedures &
                        System design        How                             What       guidelines


                                Test of concept
                                                                                 Flawless system

                                            Training &
                                                                       Instructions
                                            preparation
                                                          Deployment

                                                          Coordinate
Change program – Guiding Coalition

                       Management team

                                                         Change team
  Management       X                 X           X

                                         X                       X
                                             X
                                                     X
                                                                             Informal leaders
                                                                         X


                                                                     X
                                                         X




                                                             Leadership
Change program

    Study          Paradigm    Organization   Initiation &    Test of    Training &   Deployment   Instructions   Flawless   Procedures &
                              reengineering      setup       concept    preparation                                system     guidelines
    System
transformation
    to Agile
Agile portfolio/
  program
 management
 Continuous
 integrations

Requirement
management

     Test
   strategy

  Back-end
   support
Change program

    Study          Paradigm    Organization   Initiation &    Test of    Training &   Deployment   Instructions   Flawless   Procedures &
                              reengineering      setup       concept    preparation                                system     guidelines
    System
transformation
    to Agile
Agile portfolio/
  program
 management
 Continuous
 integrations

Requirement
management

     Test
   strategy                                                                                   System
  Back-end
   support
Change program
                                                             Individuals
    Study          Paradigm    Organization   Initiation &      Test of     Training &   Deployment   Instructions   Flawless   Procedures &
                              reengineering      setup         concept     preparation                                system     guidelines
    System
transformation
    to Agile
Agile portfolio/
  program
 management
 Continuous
 integrations

Requirement
management

     Test
   strategy                                                                                      System
  Back-end
   support
Change program
                                                             Individuals
    Study          Paradigm    Organization   Initiation &      Test of     Training &   Deployment   Instructions   Flawless   Procedures &
                              reengineering      setup         concept     preparation                                system     guidelines
    System
transformation
    to Agile
Agile portfolio/
  program
 management
 Continuous
 integrations

Requirement
management

     Test
   strategy                                                                                      System
  Back-end
   support                             Interactions
Change program
                                                             Individuals
    Study          Paradigm    Organization   Initiation &      Test of     Training &   Deployment   Instructions   Flawless   Procedures &
                              reengineering      setup         concept     preparation                                system     guidelines
    System
transformation
    to Agile
Agile portfolio/
  program
 management
 Continuous
 integrations

Requirement
management

     Test
   strategy                                                                                      System

  Back-end
   support
                                       Interactions
Organizational reengineering
                                                                       Organization
                                                                       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
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



•  Produce compliance, but never value

•  From Scientific Management
                                                        Top-down power
•  A common fallacy among managers is that              distribution
   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


All organizations have it (more or less…)




                                                    50%
                      30%
                                            20%
Different organizational structure – Distribution of structures
                                                                                        •    Processes
All organizations have it (more or less…)                                               •    Planning
                                                                                        •    Centralized coordination
             •    Side effect of the social interactions                                •    Hierarchy
             •    Coffee breaks                                                         •    Top-down decision making
             •    Friends                                                               •    Micro managing
                                                           •    Generation of value     •    BUDGET!
             •    Political rule breaking
                                                           •    Real performance
             •    Hidden agenda
                                                           •    Learning
             •    Information seeking
                                                           •    Dialogues
             •    Autonomy
                                                           •    Prototyping
                                                           •    Collaboration
                                                           •    Customer demand focus
                                                                                                     50%
                            30%
                                                                      20%
Different organizational structure – Distribution of structures
All organizations have it (more or less…)




                                                    50%
                      30%
                                            20%
Different organizational structure – Distribution of structures




                                 70%


               20%
                                                    10%
Different organizational structure – Distribution of structures

Organizational transformation, what is that?

I call it part of management!




                                               70%


                          20%
                                                     10%
Organizational reengineering – New organization


           PC

                                       Software          Software
                                      Engineering       Engineering                          Value unit


          Emb



      Merge of two departments                      Included system specialist (product
      •  40 people included consultants             owners) and system tester into a value
      •  Off-shore in India                         unit
      •  Multi-site development I Poland            •  +5 system testers
                                                    •  +8 product owners
Organizational reengineering – New teams formation


                                                      T
                                           X-functional T-shaped teams
                                           Handle any problem
                                           Communicate without managers meddling
                             Value unit
                                           Self-organized and self-selected
                                           Effective
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            NYAC  Kompetens  AB                                                          E-­Interplace

                   Master Programmer Architects in Belbin
                                                                                             PROFILGENOMSNITT  FÖR  GRUPP
                   theory and to crate a guiding coalition

                •  Workshop 2: Pair Scrum Masters and
                   Master Programmer Architects                   Observera  att  den  här  rapporten  bygger  på  den  kompletta  profilen.


                •  Workshop 3: Train and inform all others
                   in Belbin and how to create new teams

                •  Workshop 4: Team creation, exercises,                   100


                   self-selection, specialization, team values,             80

                   members, Belbin reports                                  60



                •  Workshop 5: Follow up and minor                          40


                   changes (3 changes)                                      20


                                                                             0
                                                                                  ME    SP     IMP   CF      TW     CO      PL     SH     RI
Result


 Virtual product
 owner             Scrum Master
                                                 Platform
                                                  Team
                     Developers &      Farm                 Herd
 Master               testers
 Programmer Architects              Automation              Mgmt
                                      Team                  Team
                                                 Program
                                                  Team

                                                            India
                                      Milking               Team
                                      Team

                                                 Feeding
                                                  Team
Result


 Virtual product
 owner             Scrum Master
                                                 Platform                       Program manager
                                                  Team
                     Developers &      Farm                 Herd
 Master               testers
 Programmer Architects              Automation              Mgmt
                                                                           System Architect       Configuration Manager
                                      Team                  Team
                                                 Program
                                                  Team
                                                                     Release manager
                                                             India
                                                                                    Quality Assurer
                                      Milking               Team                                       Solution Analyst
                                      Team

                                                 Feeding              Test leader
                                                  Team
Result


 Virtual product
 owner             Scrum Master
                                                              Platform                       Program manager
                                                               Team
                     Developers &                   Farm                 Herd
 Master               testers
 Programmer Architects                           Automation              Mgmt
                                                                                        System Architect       Configuration Manager
                                                   Team                  Team
                                                              Program
                                                               Team
                                                                                  Release manager
                                                                          India
                                                                                                 Quality Assurer
                          Business Manager
                                                   Milking               Team                                       Solution Analyst
                                                   Team

                                                              Feeding              Test leader
                                                               Team


                             Portfolio Manager
Result


 Virtual product
 owner             Scrum Master
                                                              Platform                                       Program manager
                                                               Team
                     Developers &                   Farm                 Herd
 Master               testers
 Programmer Architects                           Automation              Mgmt
                                                                                                        System Architect       Configuration Manager
                                                   Team                  Team
                                                              Program
                                                               Team
                                                                                                  Release manager
                                                                          India
                                                                                                                 Quality Assurer
                          Business Manager
                                                   Milking               Team                                                       Solution Analyst
                                                   Team

                                                              Feeding                              Test leader
                                                               Team
                                                                                  Line Managers


                             Portfolio Manager
Organizational reengineering – Widen job titles


                                                          T
                           Widen job titles

                                               X-functional T-shaped teams
                                               Handle any problem
                                               Communicate without managers meddling
                                  Value unit
                                               Self-organized and self-selected
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


                                                                   T
                                    Widen job titles

                                                        X-functional T-shaped teams
          Communities of practice                       Handle any problem
                                                        Communicate without managers meddling
                                           Value unit
                                                        Self-organized and self-selected
Result – Various forums(communities) and reoccurring meetings

 Scrum Master Forum                                      Daily Scrum

                                   Platform             Scrum of Scrum
   Architect Forum                  Team                    Meeting
                         Farm                 Herd
                                                         Program team
    Testers Forum     Automation              Mgmt
                                                            meeting
                        Team                  Team
                                   Program            Product management
  Developers Forum
                                    Team                    meeting

                                                        Project Portfolio
                                              India
                        Milking                              Board
                                              Team
                        Team
                                                       Customer Support
                                                        Team meeting
                                   Feeding
                                    Team
Organizational reengineering – New teams formation


                                                                           T
                                            Widen job titles

                                                                X-functional T-shaped teams
          Communities of practice                               Handle any problem
                                                                Communicate without managers meddling
                                                   Value unit
                                                                Self-organized and self-selected




                         Value adding hierarchy
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


                                                                                 T
                                            Widen job titles

                                                                      X-functional T-shaped teams
          Communities of practice                                     Handle any problem
                                                                      Communicate without managers meddling
                                                   Value unit
                                                                      Self-organized and self-selected




                         Value adding hierarchy
                                                                Scalable
Scaling (~65 people)


                                    Platform
                                     Team
                          Farm                 Herd
                       Automation              Mgmt
                         Team                  Team
                                    Program
                                     Team

                                               India
                         Milking               Team
                         Team

                                    Feeding
                                     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


                                                                                 T
                                            Widen job titles

                                                                      X-functional T-shaped teams
          Communities of practice                                     Handle any problem
                                                                      Communicate without managers meddling
                                                   Value unit
                                                                      Self-organized and self-selected




                         Value adding hierarchy
                                                                Scalable
Software Program of Continuous Delivery




                                                                                  Software
                                                                                  Program




       “It is always wise to look ahead, but difficult to look further than you can see”
       – Winston Churchill
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)

                                                                                                          Architectural Epics
             Project Epics                 Releases                         Cost per Epic                 Business Epics

                                                                                                          Quality
                                                 Development                                              Improvements Epics
Idea         Concept                                                                     Launch

       BP1   BP2             BP3          BP4               BP5            BP6                BP7   BP8




                                                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)

                                                                                                                                 Architectural Epics
             Project Epics                   Releases                                 Cost per Epic                              Business Epics
             (Architectural &                (Integration order)                      (yearly budget)
             Prioritized Business)                                                                                               Quality
                                                     Development                                                                 Improvements Epics
Idea         Concept                                                                               Launch

       BP1   BP2           BP3              BP4                   BP5                BP6                  BP7               BP8




                                     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

Single point of entry, handles all variation…


 System Releases       Inc n + 1   Inc n + 2   Inc n + 3   Inc n + 4


 System Architecture


 Quality Releases



Project A


 Project B


 Project C



 Project D
Software Program - Scaled Scrum

                                  PSI                            PSI               PSI                 PSI            PSI
                        Inc 1                 Inc 2                      Inc 3                 Inc 4         Inc 5
                                                          Weekly Scrum of Scrums
                 Year 1                                                                                               Year 2
                                        •  --------
                                        •  --------
                                        •  --------
                                        •  --------
                                        •  --------
                                        •  --------                                                                  RC       PSI
                 Increment
                 backlog                              Sprint
                                                      planning                 Sprint
                  •  --------                                                                                             Field
                  •  --------
                                                      meeting                  retrospective
                  •  --------                                                                                             test
                  •  --------
                  •  --------
                  •  --------

                                                                                                         Hardening           Joint teams
                                                                                   Software
        PPB 1                                                                                            period 3            retrospective
                                                                                   integration
                          PPB 2                                                                          weeks               meeting
                                                                                                                                             One-pager release report
  Pre-planning    Release                                                                                      •  Build release              • Aggregated increment
  meeting         planning
                  meeting
                                                                                                                  candidate                    burndown
                                                                                                               •  Demo
                                                                                                               •  Release review             • Status &progress each
                                                                                                                  meeting                      Epic
                                                                                                                                             • Improvements to be
                                                                                                                                               done
                                                                                                                                             • Impediments
                                                                 Daily Scrum
Software Program – IRL Visualization

             Projects pulse board

                                       Support issue board
             Software Program board
             1 year floating window
                                       Program team
                                       improvement Kanban
             Software Program board
                                       board
             current increment


             Team Kanban board
Learning’s & thoughts
                                                           Learning’s &
                                                           thoughts




                   “It’s all about where your mind’s at”
                   – Kelly Slater
Learning's – Team formation

    “Scrum Masters                                        “What should the
    not easy to find!”                 Platform
                                                          program team do?”
                                        Team
                             Farm                 Herd                “How will it all
 “What should the         Automation              Mgmt
                                                                      work?”
 team specialization        Team                  Team

 be?”                                  Program
                                        Team              “More people is
                                                  India
                                                          complicated!”
 “Is this the right         Milking
                            Team
                                                  Team

 team for me?”
                                       Feeding
                                        Team
         “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      “It is scary to meet a
                      have to system test?”        customer!”

                     “Access to testers when we
                     need them!”
                                                  “Access to requirement
                                                  people when we need
                                                  them!”
Learning’s – Communities of practices

                                         “The Program team
“Each forum needs a                      meeting works well in a
facilitator who is a driving             Kanban structure!”
force!”




                                         “The PPBs need a lot of
 “One hour a week is not                 preparations!”
 enough for architecture
 work!”
Learning’s - Value adding hierarchy

                                        “Don’t specify, grow &
  “I need resources to do               explore! ”
  this, to do that….”




“Who is responsible!”
                                        “The program team shall
                                        serve the development
                                        teams, not the other way
                                        around!”
Learning’s - Change


                                       “To change the system, you have to
  “It is mindset which is the most     be out there, where it happens, at all
  important to change, the model and   times!”
  processes are secondary!”



                                         “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             johan-oskarsson


      @johanoskarsson             www.captaintrouble.com


      Johan.oskarsson@knowit.se


      +46 073 3355778

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Management 3.0 applied at lean experience

  • 1. 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
  • 2. Agile transformation and adaptation (Martie’s Grow Structure view) Change Learning’s & program thoughts Organization reengineering Study/findings Delaval Software Program 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 3
  • 4. TetraLaval Group Tetra Laval Tetra Pak DeLaval Sidel Internal 4
  • 5. ”Old School” no more Internal 5
  • 8. Voluntary Milking System – VMS Internal 8
  • 9. The world’s first automatic rotary system DeLaval AMR™ Internal 9
  • 11. Study the system Study/findings “If you do not know how to ask the right question, you discover nothing” – W. Edwards Deming
  • 12. Study the system Objective: Software development at D&E D&E BA Capital Gods Delaval International System within system
  • 13. Learning’s - Limits to grow “The quality and huge “The project models technical debt backlog had was not suited for “The energy level in to be handled” software development” development could be enhanced” Good quality products “Projects was handled Reinforcing Frequent Balancing without full insight to feedback Deliveries feedback interdependencies ” “The insight in planning and visions could be “Customer felt a growing improved” frustration because of to few deliveries”
  • 14. Learning’s - Limits to grow “Low energy “Low quality with huge “Stiff low value linear “Low visibility environment” technical debt backlog” project models” and blind decision making “No learning with long organization” Visibility/ cadence” Creative Project models/ Informed environment processes decision Personal Good mastery making quality products “Projects planned Planning without concern to Deliveries interdependencies ” “Unmotivated Motivated people” people Sales Reinforcing feedback Balancing feedback Project Business size Empowered Shared proposals Customer teams Budget goals demands “Large projects which spans “Stiff hierarchy “Low insight in “Budget process “Growing frustration over years” with centralized management, which promotes power” planning and command & because of lack visions” control” of deliveries” The system had ended up in a too ordered state where very few products were delivered
  • 15. Overall vision ( A sense of urgency was already in place) Vision “The only thing worse than being blind is having sight but no vision” – Helen Keller
  • 16. Overall vision - Empowerment I’m change leader and software development manager, I need power to act
  • 17. Overall vision - Empowerment My boss 3-4 weeks Me, Trust
  • 18. Overall vision - Empowerment My manager 3-4 months Trust Myself
  • 19. Overall vision - Empowerment My leader Trust 4-12 months &I
  • 20. Overall vision – Quantum leap in mindset Agile Waterfall
  • 21. Overall vision – Leader characteristics Development Director “my leader” Head of Testing Head of PMO Me
  • 22. Overall vision – Leader characteristics Value and flow design of system Motivate intrinsic desires Integrate decision making with work Adaptive & exploratory change attitude Measurement related to purpose Learning attitude “What matters!” attitude to customers Act on the system management Cooperative attitude towards suppliers Open and honest
  • 23. Overall vision - Agile Organization Characteristics Ordered Traditional Complex Agile Bureaucratic, top-down, multilevel hierarchy, policies and procedures that create Perspective & Nonbureaucratic, outside-in, system view, few level hierarchy, policies and procedures many complicated internal interdependencies Structure that produce the minimal internal interdependencies needed to serve customers Functional, activities and order Design & System Demand, value and flow Separated from work Decision making Integrated with work Output, targets, standards, related to budget, few performance information Measurement Capability, variation, related to purpose, many performance information systems, systems distributed to executives only providing data on customers especially, distributed widely Contractual Attitude to customers What matters Contractual Attitude to suppliers Cooperative, emergent Expectation that management will manage lower-level, people and budgets, Role of Expectation that management empower lower-level to manage, act on the system, training to managers only Management training to many people Control, specifications Ideal Learning, people-people collaboration Reactive, projects Change Adaptive & exploratory, iterative Extrinsic, closed bonus system, reached targets Motivation Intrinsic, open bonus system, the goal is its own reward Inward focused, centralized, slow decisions making, political, risk adverse Culture Externally focused, empowering, quick decisions making, open and honest, risk tolerant
  • 24. Overall vision – Agile system big picture for frequent deliveries of quality products Por%olio  council   Product  visions   Business  Epic   Por$olio  manager   Por-olio  vision   Product  manager  &  Council  Facilitator   Architectural  Epic   BUSINESS  /D&E   Por-olio  backlog   Architecture  runway   MANAGER   Product  manager   Product  manager   Product  manager     Product  council   Release     Features   Release   Program  manager   backlog   Project  managers   Team  C     System  architect   PROJECT  /D&E   MANAGER   Configura:on  manager   Team  B     Release  manager   Quality  Assurer   Team  A     Incremental   Team  A     Team  B     Team  C     Team   backlog   Product  Owner   Product  Owner   Product  Owner   Stories  &  Tasks   Agile  Master   Agile  Master   Agile  Master   SOFTWARE  /     Architect   Architect   HARDWARE  /TEST   Testers   Testers   Testers   Architect   MANAGER   Developers   Developers   Developers   Sprint  backlogs   Memo   Memo   Memo   IteraBve   Scaling agile D. Leffingwell
  • 25. Change program Change program “If you don’t like something, change it. If you can’t change it, change your attitude” – Maya Angelou
  • 26. Change program – “The social architecture” Study the system Why Benefits realizations Consolidate New paradigm Conceptualize Return on investment Initiation & Setup Procedures & System design How What guidelines Test of concept Flawless system Training & Instructions preparation Deployment Coordinate
  • 27. Change program – Guiding Coalition Management team Change team Management X X X X X X X Informal leaders X X X Leadership
  • 28. Change program Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines System transformation to Agile Agile portfolio/ program management Continuous integrations Requirement management Test strategy Back-end support
  • 29. Change program Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines System transformation to Agile Agile portfolio/ program management Continuous integrations Requirement management Test strategy System Back-end support
  • 30. Change program Individuals Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines System transformation to Agile Agile portfolio/ program management Continuous integrations Requirement management Test strategy System Back-end support
  • 31. Change program Individuals Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines System transformation to Agile Agile portfolio/ program management Continuous integrations Requirement management Test strategy System Back-end support Interactions
  • 32. Change program Individuals Study Paradigm Organization Initiation & Test of Training & Deployment Instructions Flawless Procedures & reengineering setup concept preparation system guidelines System transformation to Agile Agile portfolio/ program management Continuous integrations Requirement management Test strategy System Back-end support Interactions
  • 33. Organizational reengineering Organization 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
  • 34. Different organizational structure – Informal Structure
  • 35. 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
  • 36. Different organizational structure – Value Creation Structure Value Unit (Cell)
  • 37. 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)
  • 38. Different organizational structure – Formal Structure Top-down power distribution
  • 39. Different organizational structure – Formal Structure •  Produce compliance, but never value •  From Scientific Management Top-down power •  A common fallacy among managers is that distribution 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
  • 40. Different organizational structure – Distribution of structures All organizations have it (more or less…) 50% 30% 20%
  • 41. Different organizational structure – Distribution of structures •  Processes All organizations have it (more or less…) •  Planning •  Centralized coordination •  Side effect of the social interactions •  Hierarchy •  Coffee breaks •  Top-down decision making •  Friends •  Micro managing •  Generation of value •  BUDGET! •  Political rule breaking •  Real performance •  Hidden agenda •  Learning •  Information seeking •  Dialogues •  Autonomy •  Prototyping •  Collaboration •  Customer demand focus 50% 30% 20%
  • 42. Different organizational structure – Distribution of structures All organizations have it (more or less…) 50% 30% 20%
  • 43. Different organizational structure – Distribution of structures 70% 20% 10%
  • 44. Different organizational structure – Distribution of structures Organizational transformation, what is that? I call it part of management! 70% 20% 10%
  • 45. Organizational reengineering – New organization PC Software Software Engineering Engineering Value unit Emb Merge of two departments Included system specialist (product •  40 people included consultants owners) and system tester into a value •  Off-shore in India unit •  Multi-site development I Poland •  +5 system testers •  +8 product owners
  • 46. Organizational reengineering – New teams formation T X-functional T-shaped teams Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Effective
  • 47. 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 NYAC  Kompetens  AB E-­Interplace Master Programmer Architects in Belbin PROFILGENOMSNITT  FÖR  GRUPP theory and to crate a guiding coalition •  Workshop 2: Pair Scrum Masters and Master Programmer Architects Observera  att  den  här  rapporten  bygger  på  den  kompletta  profilen. •  Workshop 3: Train and inform all others in Belbin and how to create new teams •  Workshop 4: Team creation, exercises, 100 self-selection, specialization, team values, 80 members, Belbin reports 60 •  Workshop 5: Follow up and minor 40 changes (3 changes) 20 0 ME SP IMP CF TW CO PL SH RI
  • 48. Result Virtual product owner Scrum Master Platform Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt Team Team Program Team India Milking Team Team Feeding Team
  • 49. Result Virtual product owner Scrum Master Platform Program manager Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt System Architect Configuration Manager Team Team Program Team Release manager India Quality Assurer Milking Team Solution Analyst Team Feeding Test leader Team
  • 50. Result Virtual product owner Scrum Master Platform Program manager Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt System Architect Configuration Manager Team Team Program Team Release manager India Quality Assurer Business Manager Milking Team Solution Analyst Team Feeding Test leader Team Portfolio Manager
  • 51. Result Virtual product owner Scrum Master Platform Program manager Team Developers & Farm Herd Master testers Programmer Architects Automation Mgmt System Architect Configuration Manager Team Team Program Team Release manager India Quality Assurer Business Manager Milking Team Solution Analyst Team Feeding Test leader Team Line Managers Portfolio Manager
  • 52. Organizational reengineering – Widen job titles T Widen job titles X-functional T-shaped teams Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected
  • 53. 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
  • 54. Organizational reengineering – Communities of practice T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected
  • 55. Result – Various forums(communities) and reoccurring meetings Scrum Master Forum Daily Scrum Platform Scrum of Scrum Architect Forum Team Meeting Farm Herd Program team Testers Forum Automation Mgmt meeting Team Team Program Product management Developers Forum Team meeting Project Portfolio India Milking Board Team Team Customer Support Team meeting Feeding Team
  • 56. Organizational reengineering – New teams formation T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Value adding hierarchy
  • 57. Value adding hierarchy – Program team, the center of the unit “Center” Serves the periphery “Periphery” Reaction & decision “Business Area” Decentralized decision-making
  • 58. Organizational reengineering – New teams formation T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Value adding hierarchy Scalable
  • 59. Scaling (~65 people) Platform Team Farm Herd Automation Mgmt Team Team Program Team India Milking Team Team Feeding Team
  • 61. Scaling a formal structure is easy
  • 62. Scaling a formal structure is easy
  • 63. Scaling a formal structure is easy
  • 64. Scaling a formal structure is easy
  • 65. Scaling a formal structure is easy
  • 66. Scaling a formal structure is easy
  • 67. Scaling a formal structure is easy
  • 68. Scaling Value Creation Structure is complex and more complicated
  • 69. Scaling Value Creation Structure is complex and more complicated
  • 70. Organizational reengineering – New teams formation T Widen job titles X-functional T-shaped teams Communities of practice Handle any problem Communicate without managers meddling Value unit Self-organized and self-selected Value adding hierarchy Scalable
  • 71. Software Program of Continuous Delivery Software Program “It is always wise to look ahead, but difficult to look further than you can see” – Winston Churchill
  • 72. 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) Architectural Epics Project Epics Releases Cost per Epic Business Epics Quality Development Improvements Epics Idea Concept Launch BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8 Shorten lead-times to market
  • 73. 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) Architectural Epics Project Epics Releases Cost per Epic Business Epics (Architectural & (Integration order) (yearly budget) Prioritized Business) Quality Development Improvements Epics Idea Concept Launch BP1 BP2 BP3 BP4 BP5 BP6 BP7 BP8 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
  • 74. Software Program – Continuous Delivery of Multiple Projects Single point of entry, handles all variation… System Releases Inc n + 1 Inc n + 2 Inc n + 3 Inc n + 4 System Architecture Quality Releases Project A Project B Project C Project D
  • 75. Software Program - Scaled Scrum PSI PSI PSI PSI PSI Inc 1 Inc 2 Inc 3 Inc 4 Inc 5 Weekly Scrum of Scrums Year 1 Year 2 •  -------- •  -------- •  -------- •  -------- •  -------- •  -------- RC PSI Increment backlog Sprint planning Sprint •  -------- Field •  -------- meeting retrospective •  -------- test •  -------- •  -------- •  -------- Hardening Joint teams Software PPB 1 period 3 retrospective integration PPB 2 weeks meeting One-pager release report Pre-planning Release •  Build release • Aggregated increment meeting planning meeting candidate burndown •  Demo •  Release review • Status &progress each meeting Epic • Improvements to be done • Impediments Daily Scrum
  • 76. Software Program – IRL Visualization Projects pulse board Support issue board Software Program board 1 year floating window Program team improvement Kanban Software Program board board current increment Team Kanban board
  • 77. Learning’s & thoughts Learning’s & thoughts “It’s all about where your mind’s at” – Kelly Slater
  • 78. Learning's – Team formation “Scrum Masters “What should the not easy to find!” Platform program team do?” Team Farm Herd “How will it all “What should the Automation Mgmt work?” team specialization Team Team be?” Program Team “More people is India complicated!” “Is this the right Milking Team Team team for me?” Feeding Team “We need more people in the team?”
  • 79. Learning’s – Widen job titles/roles “I’m specialized in C#, should I now do C++?” “I’m a programmer, do I “It is scary to meet a have to system test?” customer!” “Access to testers when we need them!” “Access to requirement people when we need them!”
  • 80. Learning’s – Communities of practices “The Program team “Each forum needs a meeting works well in a facilitator who is a driving Kanban structure!” force!” “The PPBs need a lot of “One hour a week is not preparations!” enough for architecture work!”
  • 81. Learning’s - Value adding hierarchy “Don’t specify, grow & “I need resources to do explore! ” this, to do that….” “Who is responsible!” “The program team shall serve the development teams, not the other way around!”
  • 82. Learning’s - Change “To change the system, you have to “It is mindset which is the most be out there, where it happens, at all important to change, the model and times!” processes are secondary!” “Changes are hard, it takes time, a lot of effort and a lot of pain!”
  • 83. My thought about Management 3.0… “Universal, not only for software development.”
  • 84. 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.”
  • 85. 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.”
  • 86. 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.”
  • 87. 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.”
  • 88. 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  
  • 89. 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
  • 90. My thought about Management 3.0…over all “New door to many very useful theories and practices.”
  • 91. My thought about Large Scale Agile “Stay releasable, always!!”
  • 92. 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
  • 93. 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
  • 94. Said about scrum…. “…scrum and all is fine, but I have an other model, JDT – Just Do It!” - Jonas Wahlgren, programmer
  • 95. 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
  • 96. Me… Johan Oskarsson johan-oskarsson @johanoskarsson www.captaintrouble.com Johan.oskarsson@knowit.se +46 073 3355778