Agile Business Management
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If you like the ideas raised in this presentation, don't forget to check out my latest book, Directing the Agile Organisation (http://theagiledirector.com/book).
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Agile Business Management
- 2. Evan Leybourn Lean / Agile Business Leader and Author Melbourne,Australia @eleybourn http://theagiledirector.com
- 3. ‘Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so.’ - DouglasAdams, 1990
- 4. GOVERNANCE AND MANAGEMENT TOOLSOECD PRINCIPLES OF CORPORATE GOVERNANCE
- 5. GOVERNANCE AND MANAGEMENT TOOLSPROCESS CONTROL LOOPS (PDSA)
- 7. GOVERNANCE AND MANAGEMENT TOOLSTHEORY OF PROFOUND KNOWLEDGE
- 9. YOU, THE AGILE MANAGER THE 1ST DOMAIN
- 10. ‘So Mr Edison, how did it feel to fail 1,000 times?’ ‘Young man, I didn’t fail, I found 999 ways that didn’t work’ - Thomas Edison, anecdotal
- 11. FACILITATION, RISK AND GOVERNANCE NOT DIRECTLY RESPONSIBLE
- 15. ‘You can’t build a reputation on what you are going to do.’ - Henry Ford, 1951
- 17. CUSTOMERS NOT CONSUMERS A COMMON MISTAKE
- 18. WORK, THE AGILE WAY THE 4TH DOMAIN
- 19. ‘SOMETIMES YOU JUST HAVE TO JUMP OUT THE WINDOW AND GROW WINGS ON THE WAY DOWN.’ - RAY BRADBURY, 1995
- 23. THE STRUCTURE OF AN AGILE ORGANISATIONTHE 3RD DOMAIN
- 24. ‘A new type of thinking is essential if mankind is to survive and move toward higher levels.’Albert Einstein, 1946
- 25. THE WORK OF BUSINESS UNITS CONTINUOUS VS. INCREMENTAL DELIVERY
- 26. EMPHASISE TRANSPARENCY & ADAPTABILITYTHE BOARD OF DIRECTORS
- 27. MONTHLY BUDGETS TEAM CONTINGENCY STAFF WELFAREAN AGILE FINANCIAL PROCESS
- 29. TO LEARN MORE, CHECK OUT DIRECTING THE AGILE ORGANISATIONBY EVAN LEYBOURN AVAILABLE AT AMAZON AND ALL GOOD BOOK STORES CLICK HERE TO DISCOVER MORE
Notas del editor
- The seeds of this book started in Canberra, Australia, when, as a software engineer, I first discovered this ‘new-fangled’ idea called Agile, and loved the focus on rapid, iterative delivery. Later, as a team leader and project manager, I came to appreciate the close engagement with the Customer and related workflow management processes. It wasn’t until I started managing companies, and later as a director in the Australian Public Service, that I realised that Agile could go further. Existing processes were inefficient, decisions were made at the wrong level, and nobody seemed to get what they needed, when they needed it. Agile had already solved those problems and could do it again.
- Add ABM/GDAC logo
- Why Deming is Important
- Common causes / Uncommon causes – normal variation; deming
- WikispeedNZPGCity of EdmontonSuncorp
- Role of ManagerAt all levels, whether you are a team leader or CEO, as an Agile Manager you are responsible for facilitating day-to-day operation, managing risk, providing governance oversight, and directing the strategic outcomes of the organisation.You will notice that I did not say you were responsible for the day-to-day operation, but rather you were responsible for facilitating the day-to-day operation.
- Not directly responsible
- Agile Business Management focuses on engaging staff at the level of ‘self-actualisation’, by emphasising creativity, problem solving and personal empowerment.
- Embraces ChangeAccepts FailurePrioritises Staff WelfareChanging Your mind
- A Customer can delegate their responsibilities to an individual called the ‘Customer Representative’. Common situations where this occurs are:• The Customer is unavailable to fulfil their role.• The Customer is a senior executive.• There are multiple Customers.
- 1 Team: The highest level of trust where the Customer and organisation share the same goals and outcomes.2 Identification: Where the Customer has a personal relationship with specific Teams or individuals.3 Knowledge: Where the Customer bases their trust on personal knowledge and experience with the organisation.4 Contract: Where the Customer uses legally binding contracts as the mechanism to trust the organisation.Reference: Where third party references form the basis of trust.
- Do not mistake consumers for Customers. Consumers purchase products from you. An Agile Customer, who may also be a consumer, has the responsibility, and authority, to direct the delivery of the products or services.
- Elephant - NZPG
- Language & Semantics – Pair Work, TDW, Quality Control Test, Requirements Backlog, Daily Stand-up, Summary Stand-up, Cust Rep, Team Faciliator, Iteration, Requirement,
- Incremental Delivery: Planning and delivering related Requirements in short, fixed-time blocks.Continuous Delivery: Planning and delivering related, or unrelated, Requirements as they are identified and prioritised.Continuous vs Incremental work Continuous vs. IncrementalEffort Hours to days Weeks to yearsNotice On-demand (no notice) PlannedDeliver Single requirements Multiple Requirements with multiple tasksBacklog Requirements Backlog Requirements Backlog and Iteration Backlog
- TM Financial ServicesDescribe the structure
- The third domain of Agile Business Management is an organisational structure that promotes increased communication, trust and empowerment of your Teams. The ideal Agile Business Management structure has the minimum layers of management between the CEO, or equivalent, and junior Team Members, whilst still remaining efficient and functional. By creating self-organising and cross-functional Teams made up of individuals empowered with personal authority and accountability, a single, mid-level manager should be capable of supporting between 10-20 Teams. Each cross-functional Agile Team is typically between 5-9 full-time staff, where the whole Team works towards a single, specific outcome.
- Sales and Marketing: Work style: Ad hoc. Suitable for Continuous Delivery - For B2B products, sales staff are still responsible for lead generation, but handover to the Delivery Teams is much earlier. HR: Ad-hoc, Suitable for Continuous Delivery - though there may be significant cultural changes. Changes are primarily to workflow, transparency and Customer interaction.Finance and Accounting: Long-term planned work, suitable for planned Incremental Delivery - Changes are primarily to workflow and transparency.Legal: Advisory Requirements are generally ad hoc, suitable for Continuous Delivery. However, most Requirements for the legal team are larger, and are suitable for Incremental Delivery.
- The Board needs to be involved in the development of the Agile corporate strategies, and is responsible for monitoring the integrity, and effectiveness, of the Agile Business Management practices. In addition to their legally binding responsibilities, Agile Boards need to apply greater due diligence to the governance of their organisation. This is not due to a lack of trust in their chosen executive, but because an Agile organisation can, and will, adapt and change rapidly. Because of this, the Board needs to work closely with the executive, to remain informed, so they can make appropriate governance decisions.In order to deliver on their Agile obligations, the Board should expect greater transparency and communication from the organisation and the executive. This, in turn, improves their ability to act, in good faith, in the best interest of the organisation and its shareholders.
- 1 Monthly or quarterly budgets: By reducing the duration of each budget, organisations can tailor funding to meet the current needs of a Team, or Department. As most budget proposals will be identical, or nearly identical, to previous months, there is negligible overhead in managing multiple, short, budgets. Teams and Departments are encouraged (and in some cases incentivised) to be innovative with their existing budgets, and, where possible, reduce outgoing expenditure.2 Team level contingency: As part of their monthly budget, allocate each Team a contingency budget (usually ~20%) to spend at their discretion, either in the delivery of Customer Requirements, or as a mechanism to innovate change within the organisation. Unused contingency should carry over, to encourage sensible spending, rather than the traditional ‘use it or lose it’ approach.3 Staff welfare: Departmental and Team budgets are planned around ensuring delivery of the Customer Requirements, while maintaining a sustainable workload for each Team. From a budget planning perspective, it can help to visualise your Agile Team as a pipeline, as shown in Figure 48. The width of the pipe is your Team size, and the length is the time available to deliver. If a new, high priority, Requirement comes into the pipe, and as an Agile Team this is encouraged, the lowest priority Requirement will fall out the end. In Agile terms, the Velocity of each Team doesn’t change just because you give them more work. New research actually suggests that sustained overtime can lead to a significant reduction in productivity , , , . If your Customer wants you to deliver the new Requirement, as well as all the older Requirements, then the pipe will need to be widened (new staff added), or lengthened (additional time given), both of which will have an impact on the quote and/or budget for the Customer.
- Let’s finish off by looking at our original definition of business growth; Business growth comes from applying profitability to customer growth. Profitability comes from delivering services to your customers, accurately and efficiently. Over the last 15 minutes we have looked at some of the mechanisms from the lean and agile traditions that we can apply for adaptable businesses and sustainable business growth. And I’ll leave you on that note. Any questions.