Agile Management: Leading Teams with a Complex Mind

1. Agile Management LeadingTeams with a Complex Mind Jurgen Appelo jurgen@noop.nl

3. Agile ManagementWorkshop (intro) Explain to the other people at your table why you are here (instead of somewhere else).

4. The Management 3.0 Model Six organizational views based on complexity thinking

5. Emergent, self-organizing, unpredictable http://www.flickr.com/photos/judepics/

6. Sometimes adaptive, sometimes not http://www.flickr.com/photos/hdr400d/

7. Complex Systems “A complex system is a system composed of interconnected parts that as a whole exhibit one or more properties (behavior) not obvious from the properties of the individual parts.” Sometimes called the sciences of complexity (plural) http://cfpm.org/pub/users/bruce/thesis/chap4.pdf

8. General SystemsTheory Autopoiesis (how a system constructs itself) Identity (how a system is identifiable) Homeostatis (how a system remains stable) Permeability (how a system interacts with its environment) Ludwig von Bertalanffy (biologist) 1901-1972 Study of relationships between elements

9. Cybernetics Goals (the intention of achieving a desired state) Acting (having an effect on the environment) Sensing (checking the response of the environment) Evaluating (comparing current state with system’s goal) Norbert Wiener (mathematician) 1894-1964 Study of regulatory systems

10. Dynamical SystemsTheory Stability (stable states versus unstable states) Attractors (systems getting sucked into stable states) Study of system behavior

11. GameTheory Competition versus cooperation Zero sum games versus non-zero sum games Strategies (including evolutionary stable strategies) John von Neumann (mathematician) 1903-1957 Study of co-adapting systems

12. EvolutionaryTheory Population (more than one instance) Replication (mechanism of making new instances) Variation (differences between instances) Heredity (differences copied from existing instances) Selection (environment imposes selective pressure) Charles Darwin (naturalist) 1809-1882 Study of evolving systems

13. ChaosTheory Strange attractors (chaotic behavior) Sensitivity to initial conditions (butterfly effect) Fractals (scale-invariance) Edward Lorenz (meteorologist) 1917-2008 Study of unpredictable systems

14. And more... Dissipative systems (spontaneous pattern-forming) Cellular automata (complex behavior from simple rules) Genetic algorithms (adaptive learning) Social network analysis (propagation of information) Study of all kinds of systems

15. The Body of Knowledge of Systems Complex systems theory enables a descriptive approach to the study of social systems

16. Complexity “Complexity is that property of a system which makes it difficult to predict its overall behavior, even when given reasonably complete information about its components and their relations.” http://cfpm.org/pub/users/bruce/thesis/chap4.pdf “edge of chaos” “chaordic processes”

17. System Dynamics Circular feedback loops and time-delayed relationships Analysis through simulations and calculations Jay Wright Forrester (computer engineer) 1918- Study of non-linear behavior of systems

18. SystemsThinking “Problems” are part of a system View systems in a holistic manner Not a science, but a “frame of mind” Peter Michael Senge (social scientist) 1947- Approach to problem solving

19. Some Criticism “The strength of systems thinking is its recognition that human systems are messy, they frequently need focus and alignment; its weakness is that it assumes that the design of that focus and alignment is a top down objective based process. […]The ambiguity of human systems is recognized, but the basic concept of central control or planning remains at the heart.” Multi-ontology sense-making - David Snowden (2005) http://kwork.org/stars/snowden/Snowden.pdf

20. Some Criticism “Systems thinking contains a fundamental difficulty right at its roots.This is to regard human interaction as a system.This assumption leads to thinking about that interaction as something about which another human standing outside it makes choices.” Complexity and Management – Ralph Stacey (2000) http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/

21. “Traditional” SystemsThinking http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/ observer system

22. ComplexityThinking http://www.amazon.com/Complexity-Management-Inorganisations-Ralph-Stacey/dp/0415247616/ observers system

23. The Unknowns Knowns Unknowns Unknowns Unknowns

24. Non-linearity

25. ComplexityThinking Don’t separate the designers from the system Don’t ignore the human part (social complexity) Don’t ignore the unknown unknowns Don’t rely (too much) on linear cause and effect ComplexityThinking = SystemsThinking++ Jurgen Appelo (idea farmer) 1969-

26. Exercise: ComplexityThinking

27. The Management 3.0 Model

28. View #1: Energize People People are the most important parts of an organization and managers must do all they can to keep people active, creative, and motivated.

29. Extrinsic Motivation Desire to achieve goal G Reward behavior B Assumption B leads to G Problems with non-linear effects

30. Intrinsic Motivation Desire to achieve goal G Reward behavior B Where B = G No non-linear effects

31. “16 Basic Desires” Acceptance The need for approval Physical Activity Or exercise Curiosity The need to think Power The need for influence of will Eating The need for food Romance The need for love and sex Family The need to raise children Saving The need to collect Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Tranquility The need to be safe Order Or stable environments Vengeance The need to strike back Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002

32. “16 Basic Desires” Acceptance The need for approval Physical Activity Or exercise Curiosity The need to think Power The need for influence of will Eating The need for food Romance The need for love and sex Family The need to raise children Saving The need to collect Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Tranquility The need to be safe Order Or stable environments Vengeance The need to strike back Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002

33. “16 Basic Desires” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Order Or stable environments Steven Reiss. Who Am I? The 16 Basic Desires That Motivate Our Actions and Define Our Personalities. City: Berkley Trade, 2002

34. “Self-DeterminationTheory” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact The need for friends Idealism The need for purpose Status The need for social standing Independence Being an individual Order Or stable environments Edward L. Deci and Richard M. Ryan. The Handbook of Self-Determination Research. Rochester: University of Rochester Press, 2004 Competence The need to feel capable Autonomy The need to choose one’s own actions Relatedness The need to be socially involved

35. “Self-DeterminationTheory” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact / Relatedness The need for friends Idealism The need for purpose Status The need for social standing Independence / Autonomy Being an individual Order Or stable environments Competence The need to feel capable Edward L. Deci and Richard M. Ryan. The Handbook of Self-Determination Research. Rochester: University of Rochester Press, 2004

36. 10 Intrinsic Desires Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact / Relatedness The need for friends Idealism The need for purpose Status The need for social standing Independence / Autonomy Being an individual Order Or stable environments Competence The need to feel capable

37. “Drive” Acceptance The need for approval Curiosity The need to think Power The need for influence of will Honor Being loyal to a group Social Contact / Relatedness The need for friends Idealism / Purpose The need for purpose Status The need for social standing Independence / Autonomy Being an individual Order Or stable environments Competence / Mastery The need to feel capable Daniel H. Pink, Drive: The Surprising Truth About What Motivates Us. Riverhead, 2009

38. Exercise: 10 Intrinsic Desires

40. View #2: EmpowerTeams Teams can self-organize, and this requires empowerment, authorization, and trust from management.

41. Self-organization… a definition “Self-organization is a process of attraction and repulsion in which the internal organization of a system, normally an open system, increases in complexity without being guided or managed by an outside source.” http://en.wikipedia.org/wiki/Self-organization

42. Organization without management?

43. Cool!

44. but…

45. Self-organization has a dark side…

47. Self-organization… the dark side http://www.flickr.com/photos/agder/2783124139/

50. But people care… about value.

52. http://www.flickr.com/photos/sukanto_debnath/504258852/

53. http://www.flickr.com/photos/suneko/92395757/

54. http://www.flickr.com/photos/calliope/104661075/

55. “Self-organization requires that the system is surrounded by a containing boundary.This condition defines the "self" that will be developed during the self-organizing process.” http://amauta-international.com/iaf99/Thread1/conway.html

56. The containing boundary has a chance to direct self-organization towards value

57. Directed self-organization Don’t go here! Go there!

58. Self-organization is the norm

59. Management is the special case

60. Self-organized For example: a software development team Self-selected (= self-designed) Self-organized and system selects its own members For example: founders of a start-up business Self-directed (= self-governed) Self-selected and no direction outside the system For example: criminal organization Three levels of self-organization

61. The Darkness Principle “Each element in the system is ignorant of the behavior of the system as a whole [...] If each element ‘knew’ what was happening to the system as a whole, all of the complexity would have to be present in that element.” http://iscepublishing.com/ECO/ECO_other/Issue_6_3_10_FM.pdf

62. Therefore, management requires… Distributed governance and leadership

63. Tell: make decision as the manager Sell: convince people about decision Consult: get input from team before decision Agree: make decision together with team Advise: influence decision made by the team Inquire: ask feedback after decision by team Delegate: no influence, let team work it out Seven levels of authority in empowerment

64. Exercise: Delegation Game

66. View #3: Align Constraints Self-organization can lead to anything, and it’s therefore necessary to protect people and shared resources, and to give people a clear purpose and defined goals.

67. The Game of Life (JohnConway) http://www.bitstorm.org/gameoflife/

84. The Game of Life 1. 3 neighbors = new life 2. 2 or 3 neighbors = stay alive 3. 0 or 1 or > 3 neighbors = death simple rules, great results

85. 1. 3 neighbors = new life 2. 2 or 3 neighbors = stay alive 3. 0 or 1 or > 3 neighbors = death management = simple rules, great results? But does that mean...

86. 1. 3 neighbors = new life 2. 2 or 3 neighbors = stay alive 3. 0 or 1 or > 3 neighbors = death management = simple rules, great results? No.

87. The actual rules => complicated code The Game of Life

88. The constraints => a grid, 1 player The Game of Life

89. Another example

90. Settlers of Catan It took minutes to define the constraints It took years to create and tune the rules (KlausTeuber) http://www.wired.com/gaming/gamingreviews/magazine/17-04/mf_settlers

91. complex non-adaptive system we adapt the rules

92. complex adaptive system the system adapts itselfwe adapt the rules complex non-adaptive system

93. A manager / team leader is not a game designer Don’t create rules

94. Define constraints (playing field, players) Let the system create its own rules

95. Let’s ignore the (subtle) differences for now… goal vision mission objective intent target aim

96. Keep it simple Commander’s intent A goal in just a few lines of text

97. Goal checklist specific and understandable simple and concise manageable and measurable memorable and reproducible attainable and realistic ambitious and stimulating actionable and assignable agreed-upon and committable relevant and useful time-bound and time-specific tangible and real excitable and igniting inspiring and visionary value-based and fundamental revisitable and assessable

98. Bad example 1 We are committed to providing outstanding customer experience, to being a great place to work, a thoughtful steward of the environment and a caring citizen in the communities where we live and work.We are passionate about sustainably connecting people and places and improving the quality of life around the world.

99. Bad example 2 As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self- criticism, continual self-improvement, and mutual respect.We are committed to our customers and partners and have a passion for technology.We take on big challenges, and pride ourselves on seeing them through.We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.

100. Good example 1 Our mission is to organize the world’s information and make it universally accessible and useful.

101. Good example 2 We help people save money so they can live better.

102. Do not allow individual stakeholder goals to replace extrinsic and emergent goals

103. Goals are not meant to... Intimidate people if they cannot achieve them

104. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline

105. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline Confuse short-term wins with long-term losses

106. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline Confuse short-term wins with long-term losses Distract people from outcomes with action plans

107. Goals are not meant to... Intimidate people if they cannot achieve them Impress shareholders or others on the sideline Confuse short-term wins with long-term losses Distract people from outcomes with action plans Overload people with too many objectives

108. Goals should not be pushed with financial rewards And... http://www.amazon.com/gp/product/1594488843?ie=UTF8&tag=noopnl- 20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1594488843

109. Exercise:Agile Goal Setting

111. View #4: Develop Competence Teams cannot achieve these goals if team members aren’t capable enough, and managers must therefore contribute to the development of competence.

112. Safest traffic in the world 1. Marshall Islands 2. San Marino 3. Malta 4. Iceland 5. Netherlands 6. Sweden 7. United Kingdom 8. Switzerland 9. Japan 10. Singapore http://en.wikipedia.org/wiki/List_of_countries_by_traffic-related_death_rate http://www.flickr.com/photos/bobjagendorf/4122137519/

113. http://www.flickr.com/photos/quimbo/20555416/

114. http://www.flickr.com/photos/lilidelamora/5320093/

115. http://www.flickr.com/photos/12386296@N08/4055379221/

116. We can learn how to manage software teams by studying management of similar systems (like traffic management)

117. Subsidiarity principle “The dictionary defines subsidiarity as the idea that a central authority should have a subsidiary function, performing only those tasks which cannot be performed effectively at a more immediate or local level.” http://en.wikipedia.org/wiki/Subsidiarity

118. Subsidiarity principle And thus… Delegate decisions until you’ve hit a competency problem (team members decide unless there is some lack of competence)

119. Precautionary principle Assuming that things are risky, in the absence of evidence. http://en.wikipedia.org/wiki/Precautionary_principle http://kwebble.com/blog/tag/haarlem

120. Precautionary principle And thus… Decide who has the burden of proof for competency (assume team members are competent, unless proven they’re not)

121. http://www.flickr.com/photos/38607288@N03/4087457751/

122. Shared space Increased risk perception People are less mindful when they see no risks Reduced false security / risk compensation People show riskier behavior when they think they are safe http://en.wikipedia.org/wiki/Shared_space

123. Shared space And thus… Remove rules to increase risk perception and reduce false security

124. But how do we develop competence?

125. Three maturity levels (for skill) Shu traditional wisdom, learning fundamentals (apprentice) Ha detachment, breaking with tradition (journeyman) Ri transcendence, everything is natural (master) (last column: three similar levels in medieval European guild system) Note: the Dreyfus Model lists five levels of skill acquisition: Beginner,Advanced Beginner, Competent, Proficient, Expert http://en.wikipedia.org/wiki/Shuhari http://en.wikipedia.org/wiki/Master_craftsman http://en.wikipedia.org/wiki/Dreyfus_model_of_skill_acquisition

126. Six maturity levels (for discipline) Oblivious “We don’t even know that we’re performing a process.” Variable “We do whatever we feel like at the moment.” Routine “We follow our routines (except when we panic).” Steering “We choose among our routines by the results they produce.” Anticipating “We establish routines based on our past experiences.” Congruent “Everyone is involved in improving everything all the time.” Gerard Weinberg, Quality Software Management: SystemsThinking (Alternative: six similar levels in “Agile Made Us Better…” by Ross Petit) http://www.amazon.com/Quality-Software-Management-Systems-Thinking/dp/0932633226/ http://www.thoughtworks.com/agile-made-us-better

127. Competence = maturity in 2 dimensions

128. 1. Self-development People must learn... urgence vs. importance time management boosting memory finding motivation

129. 2. Coaching Hire external coaches Develop competency leaders Note: manager != coach

130. 3. Certification By itself a certificate doesn’t mean anything, but... it can catalyze all other competency measures

131. 4. Social pressure Let people identify with a small group Give them shared responsibility for shared goals

132. 5. Infrastructure Tools must be adaptable, not just customizable Open databases, APIs, scripts, plug-ins, reports

133. 6. Supervision Have someone sample/check the products of teams

134. 7. Management One-on-ones to assess problem situations 360 degree meetings to assess collaboration

135. 1. Self-Development 2. Coaching 3. Certification 4. Social Pressure 5. Infrastructure 6. Supervision 7. Management 7 Approaches to competency development

136. Exercise: Competence Development

138. View #5: Grow Structure Many teams operate within the context of a complex organization, and thus it is important to consider structures that enhance communication .

139. The workplace is a network

140. Individual competence “We learned that individual expertise did not distinguish people as high performers.What distinguished high performers were larger and more diversified personal networks.” Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004

141. Individual competence “Engineers are roughly five times more likely to turn to a person for information as to an impersonal source such as a database.” Cross, Rob et.al. The Hidden Power of Social Networks. Boston: Harvard Business School Press, 2004

142. Scale-invariant networks (fractals) Best communication across all scales http://gut.bmj.com/content/57/7.cover-expansion

143. <- preferred Segmentation of teams

144. Design Principle 1 (DP1) (through a manager) Design Principle 2 (DP2) (not through a manager) Communication across teams (Fred Emery) <- preferred

145. Style Structure DP 1 Functional 1 (through manager) 2 Functional 2 (through team) 3 Cross-functional 1 (through manager) 4 Cross-functional 2 (through team)

146. Value units System administrators GUI designers Project Mgt Office Community of Practice Center of Excellence Human Resources ... Delivering value to teams

147. Functional (DP1) Functional (DP2) cross- functional (DP1) cross- functional (DP2) A D C E B Draw a value network

148. Panarchy... network of hierarchies and anarchies

149. Exercise:Value Network Game

151. View #6: Improve Everything People, teams, and organizations need to improve continuously to defer failure for as long as possible.

152. Fitness Landscape system configuration performance

153. The Red Queen’s Race “It takes all the running you can do to keep in the same place.”

154. Three Drivers of Improvement Adaptation Looking backward, reactive, responding to change Exploration Trying things out, interactive, experience feedback Anticipation Looking forward, proactive, imagining improvement

155. Three Drivers of Improvement

156. Ruggedness of Fitness Landscapes Complexity catastrophe Normal situation Ideal situation

157. Most Improvement Models Look Linear

158. Stuck in the Fitness Landscape What now?

159. Nonlinear Improvement 1, 3, 5 Kaizen Gradual improvement 2, 4 Kaikaku Radical improvement

160. The Strategy of Mutation Disturbing the system

161. The Strategy of Crossover Mix multiple good performers

162. The Strategy of Broadcasts Copy innovations

163. Exercise: Improvement Strategy Game

164. The Management 3.0 Model Six organizational views based on complexity thinking

165. Agile Management LeadingTeams with a Complex Mind Jurgen Appelo jurgen@noop.nl

166. Agile ManagementWorkshop (outtro) Explain to the other people at your table what you will take away from this session.

167. @jurgenappelo (twitter) slideshare.net/jurgenappelo jurgenappelo.com (site) noop.nl (blog) management30.com (book)

168. http://creativecommons.org/licenses/by-nd/3.0/ This presentation was inspired by the works of many people, and I cannot possibly list them all.Though I did my very best to attribute all authors of texts and images, and to recognize any copyrights, if you think that anything in this presentation should be changed, added or removed, please contact me at jurgen@noop.nl.

Agile Management: Leading Teams with a Complex Mind

Agile Management: Leading Teams with a Complex Mind

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