While collaborative, open, innovative, and agile cultures are highly desired by CEOs and employees alike, they remain out of reach for most organizations. In fact, in the 2013 State of Agile survey conducted by VersionOne, 52% of responses indicated that the ability to change organizational cultures as the most significant barrier to further adoption of agility.

1. © 2013 Trail Ridge Consulting, LLC
Agile Leadership
in the Enterprise
Building Adaptive
Organizations
@petebehrens

2. © 2013 Trail Ridge Consulting, LLC
Agenda
✓ Current State of Enterprise Agility
✓ 3 Thriving Agile Enterprises
✓ Agile Leadership for the Enterprise

3. © 2013 Trail Ridge Consulting, LLC
A world of change
1930 1950 1970 1990 2010
15 years
75 years
Waterfall
RAD
Agile
Spiral
Assembly Line
Lean
“The Power of Pull” (Basic Books, 2010)
average life expectancy of companies in the 1937 S&P 500 Index
CorporateLifeExpectancy

4. © 2013 Trail Ridge Consulting, LLC
A world of change
CEOs are attempting to create
openand collaborative
cultures
to encourage connection and learning
2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries

5. © 2013 Trail Ridge Consulting, LLC
A world of change
2010/2012 IBM surveys of more than 1,500 CEOs from over 60 countries
CEOs have identified
creativityand agility
as the
top leadership competencies

6. © 2013 Trail Ridge Consulting, LLC
A world of change
A New Management Paradigm
of imagination, exploration, experiment, discovery & collaboration
Steve
Denning

7. © 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption - Barriers

8. © 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption - Issues

9. © 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption
Agile
Assistance
Agility
Thrashing Agility
Rolling Agility
CULTURE
STRUCTURE
PROCESS
Outside-In
Years
0 1 2 3 4 5

10. © 2013 Trail Ridge Consulting, LLC
Enterprise Agile Adoption
Years
Agility
0 1 2 3 4 5
Rolling Agility
Sustaining Agility
Thrashing Agility
CULTURE
STRUCTURE
PROCESS
Inside-Out

11. © 2013 Trail Ridge Consulting, LLC
Current State of Enterprise Agility
✓ Change is constant & increasing
✓ CEO’s desire Enterprise Agility
✓ Enterprise Agility is hard to
grow & sustain
Be aware of culture

12. © 2013 Trail Ridge Consulting, LLC
Who am I?
1970 1980 1990 2000 2010
Waterfall
RAD
Agile
RUP
Pete Behrens
Agility

13. © 2013 Trail Ridge Consulting, LLC
Agenda
✓ Current State of Enterprise Agility
✓ 3 Thriving Agile Enterprises
✓ Agile Leadership for the Enterprise

14. © 2013 Trail Ridge Consulting, LLC
IT Create Culture
People
Learning
Cultivation
Growth
CREATE
Do things first
Transformational Change

15. © 2013 Trail Ridge Consulting, LLC
IT Challenges 2007
✓ Long delivery cycles
✓ Inconsistent product quality
✓ Unsustainable development
& support costs
Unsatisfied Stakeholders

16. © 2013 Trail Ridge Consulting, LLC
IT Transformation
-75%
-59%
Development Costs
2007 08 09 10 11 2012
41
56
73
81
89
100
Time to Market
2007 08 09 10 11 2012
25
33
50
75
83
100
-74%
Defect Rates
2007 08 09 10 11 2012
26
57
92
102100100
-78%
Support Costs
2007 08 09 10 11 2012
22
41
57
75
88
100

17. © 2013 Trail Ridge Consulting, LLC
IT Approach
Roles
Teams
Departments
Locations
Integrated

18. © 2013 Trail Ridge Consulting, LLC
Thriving Enterprise Agility
Years
3 months
1 month
Created an agile
service for clients
IT leaders are now
lead consultants
Delivery
Cycle
2006 2008 2010 2012
12+ months
Organizational
Agility
IT -> Service
Global
Integration
TeamsRole/Title
Changes
Removed
QA
Support
2.0
Working
Software

19. © 2013 Trail Ridge Consulting, LLC
Compete Culture
Excellence
Never Satisfied
Competitive
COMPETE
Do things fast
Fast Change

20. © 2013 Trail Ridge Consulting, LLC
R&D Challenges 2006
✓ (Too?) Fast growth
✓ Complexity overwhelmed the system
✓ Internal competition of people and
resources
Inability to Deliver

21. © 2013 Trail Ridge Consulting, LLC
Transformation
2008 Scrum Gathering - Steve Greene
2001 2002 2003 2004 2005 2006 2007
Features Delivered
per Team
Days between
Major Releases

22. © 2013 Trail Ridge Consulting, LLC
Their Own Approach
“All-in” fast
Be the “Best” @ agile
Approach
Focus on
“What”
Focus on
“How”
LOWERED WIP
Redefined 2 key roles
Everything thru a team

23. © 2013 Trail Ridge Consulting, LLC© 2013 Trail Ridge Consulting, LLC
Established Regular Cadence
Enterprise Release Train Cadence
Enterprise Transparency
Approach
Release
Cycle
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Sprint
Cycle
Review
Cycle
Shared Reviews
Shared Releases

24. © 2013 Trail Ridge Consulting, LLC
Thriving Enterprise Agility
2006 2008 2010 2012
R&D
Agility
IT
Agility
Tech Ops
Agility
Marketing
Agility
Every release
delivered on time!
3 per year for 6 years
0.5M Subscribers
6% Marketshare
3.5M Subscribers
16% Marketshare

25. © 2013 Trail Ridge Consulting, LLC
Control Culture
Top Down
Rules & Process
Efficiency Focus
CONTROL
Do things right
Incremental Change

26. © 2013 Trail Ridge Consulting, LLC
Challenges 2008
✓ Overwhelming process overhead
✓ Long cycles with few change
opportunities
✓ Manufacturing mindset for software
Inability to Deliver

27. © 2013 Trail Ridge Consulting, LLC
Enterprise Agility Bubbles
EnergyResearchHealthcare
Power
& Water
Software
Sciences
Computational
Sciences
Healthcare
Systems
Healthcare
IT
Specialty
Solutions
Software
Systems
Software
Solutions
JV: Digital
Pathology

28. © 2013 Trail Ridge Consulting, LLC
Business Unit Focus
Build Time & Cycle
Technical Practices
Test Automation
Short Release cycles
Water(Scrum)Fall
SAFe Release Trains
Integrated Research
Lean Startup -
Fastworks
EnergyResearchHealthcare

29. © 2013 Trail Ridge Consulting, LLC© 2013 Trail Ridge Consulting, LLC
Agile Transformation
Build Time
11 hours ➜ 20 min
400K hours saved
annually
Release cycles
24 ➜ 6 months
60% projects agile
50% release adaptation
40% defect reduction
18% test productivity
GE Software COE
EnergyResearchHealthcare
Release
Cycle
Build/Test
Cycle

30. © 2013 Trail Ridge Consulting, LLC
Thriving Enterprise Agility
2008 2009 2010 2011 2012 2013
HC
Specialty
HC IT
Energy
SSG
Software
Sciences
WSJ: GE is a TOP 10
innovation company
GE
Venture
Lean Startup
Research
Software
Source: 2013 Boston Consulting Group Study

31. © 2013 Trail Ridge Consulting, LLC
3 Thriving Agile Enterprises
Create Culture Compete Culture Control Culture
Transformational
Growth-oriented
Flexible & Fluid
Fast
Market-oriented
Competitive
Incremental
Efficiency-oriented
Hierarchical
Different Cultures = Different Agility
= Different Leadership

32. © 2013 Trail Ridge Consulting, LLC
Agenda
✓ Current State of Enterprise Agility
✓ 3 Thriving Agile Enterprises
✓ Agile Leadership for the Enterprise
influences informs
Leadership Agility

33. © 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
influences informs
Leadership Agility
① Align Agility
toward Culture
② Influence Culture
toward Agility
③ Develop Leadership Agility

34. © 2013 Trail Ridge Consulting, LLC
Aligning Agility and Culture
Competing Values Framework (CVF)
Assessing culture

35. © 2013 Trail Ridge Consulting, LLC
Align Agility toward Culture
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
CreateCompete
CollaborateControl
Exposing culture
informs agility

36. © 2013 Trail Ridge Consulting, LLC
Align Agility toward Culture
Role Definitions
Silo Breakdowns
Balanced Matrix
Team Structure
Shared Sprint Cycle
Build & Test Automation
Short Releases
Close Customers
Tight Teams
Own ADM
Best @ Agile
Fast Change
SAFe Release Trains
Water (Scrum) Fall
Incremental Change
Structure
Process
Culture
Create Culture Compete Culture Control Culture

37. © 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
influences informs
Leadership Agility
① Align Agility
toward Culture
② Influence Culture
toward Agility
③ Develop Leadership Agility

38. © 2013 Trail Ridge Consulting, LLC
Align Agility and Culture
10
20
30
40
20
30
40
50
10
20
30
40
50
10
30
40
10
20
Desired
Focus on rapid release
and innovation
CreateCompete
CollaborateControl

39. © 2013 Trail Ridge Consulting, LLC
Influencing Culture toward Agility
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
CreateCompete
CollaborateControl
Focus on speed, competency
and repeatability

40. © 2013 Trail Ridge Consulting, LLC
Influence Culture toward Agility
10
20
30
40
50
20
30
40
50
10
20
30
40
50
10
30
40
50
10
20
CreateCompete
CollaborateControl
R&D
IT
Acquisition
Aligning subcultures for
enterprise collaboration

41. © 2013 Trail Ridge Consulting, LLC
Align Agility and Culture
Competence
Create
Control
Cultural awareness & visioning to
engage people in the change

42. © 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
influences informs
Leadership Agility
① Align Agility
toward Culture
② Influence Culture
toward Agility
③ Develop Leadership Agility

43. © 2013 Trail Ridge Consulting, LLC
Developing Leadership Agility
Expert Achiever Catalyst

44. © 2013 Trail Ridge Consulting, LLC
Developing Leadership Agility
Expert Achiever Catalyst
80% 10%
Leverage People
Solve Problems
Direct Their Plan
Competitive
Competent
Develop People
Create Solutions
Open to Change
Inter-dependent
Self & System Aware
Drives compliance
Limits growth & flexibility
Challenged by complexity
Drives shared ownership
Creates growth & flexibility
Thrives in complexity

45. © 2013 Trail Ridge Consulting, LLC
Develop Leadership Agility
Years
Agility
0 1 2 3 4 5
Change
is constant
is speeding up
is hard
Agile Leadership
Models self-change
Leads organizational change
Coaches others in change
Sustaining Agility
Agile is a journey,
not a destination

46. © 2013 Trail Ridge Consulting, LLC
Agile Leadership for the Enterprise
Understand &
align agility
to/with culture
Change
organizational
structures & flexibility
Focus on learning
& expect ongoing
change
Agile Leadership