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[en] Agile transformation - How to deconstruct your organization step by step

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To achieve ORGANIZATIONAL AGILITY, it is important to be SMALL. This is a key factor if you want to reduce your Time To Market and gain flexibility to quickly adapt to your customers needs. However, large corporations are characterized by their large size.
In this presentation we will see an Agile maturity model (which may seem counter-intuitive to large corporate transformations), which combines an organic adoption with DELIVERED ACTIONS to CONSCIOUSLY DECONSTRUCT a complex organization and base it on teams by strategic Business initiatives.
To do this, we rely on de-scaling complexity as much as possible, influencing behaviors through a new organizational structure, explicitly work in the culture (as enabler) and Product Management (as the final result), as well as on other principles.

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[en] Agile transformation - How to deconstruct your organization step by step

  1. 1. ENTERPRISE AGILE TRANSFORMATION How to deconstruct your organization step by step Xavier Albaladejo Emerging Markets EMEA-LATAM V1.2
  2. 2. 2 Speaker Bio & Company Information  Xavier Albaladejo is specialised in organisational transformation based on Agile-Lean principles.  His work as Agile Expert in AXA Emerging Markets EMEA- LATAM (Europe, Middle East, Africa & Latin America Region) consists on the introduction of Agile as part of the Digital transformation of countries in this region, with the aim of increasing their speed and flexibility in order to better adapt to their customers’ needs.  Xavier Albaladejo coordinates the Master on Agile Methods in the University of La Salle, he is Certified Scrum Practitioner (Scrum Alliance), Certified LeSS Practitioner, founder of and Agile Barcelona. He has also been president of Agile Spain. Emerging Markets EMEA-LATAM
  3. 3. 3 AGILE @ AXA Increase business “agility”: “Reduce Time To Market and increase flexibility to quickly adapt to customer needs” This is NOT the “problem” we’ll try to solve today 
  4. 4. 4 AGILE @ AXA EMEA-LATAM – DIVERSITY OF CONTEXTS  Very diverse environment: sizes, organizations, cultures, products, competitors, process maturity, knowledge on Agile….  Typical situations of big organizations: gap from product inception to its development and to its operation: different departments, partial responsibilities, particular priorities, processes that take too long, …
  5. 5. 5 HOW TO HELP TO AGILISE SO DIFFERENT ORGANIZATIONS?  How to guide these countries in order to increase their business agility (how to reduce their Time To Market and win flexibility to quickly adapt to their business needs? ?How? Agile? Agile? How? Agile? Where are we going to
  6. 6. 6 THE NEED OF A TARGET OPERATIVE MODEL  How to guide these countries in order to increase their business agility (how to reduce their Time To Market and win flexibility to quickly adapt to their business needs? 1. Target Model (Vision) 2. Transformation Roadmap
  7. 7. 7 PRINCIPLES Big = Fast and flexible? SMALL autonomous teams Building block  CUSTOMER CENTRIC, shared goal.  All needed skills, including innovation.  Direct face-to-face communication, teamwork. CorporateissuesSolutions Enterprise silos Selling Claims IT  Own priorities  Partial responsibilities  High effort in inter- coordination  Team work?  No customer centric !! Example: By design:
  8. 8. 8 1. Target model - Customer centric - Organizational agility 2. Transformation roadmap transformación- Guidelines to solve problems - Collaborative & adaptive  Product Management: innovative, fast & flexible.  Organization: de-scaled, simple, integrated, based on small autonomous teams in order to be fast.  Culture: collaboration, test & learn, knowledge sharing, transparency, empowerment, motivation.  NO prescriptive. It’s not a recipe. It’s not a plan.  “Possible” solutions to problems and steps.  Starting point for conversations with Agile Champions and [external] coaches in each country.  50% of activities are unknown, they will appear along the path (they are context dependant).  Adjustable and re-prioritisable considering each country needs and realities, by their own transformation team.  To be grown through workshops in a regular way (Strategic reviews + PBL Refinements). ADJUSTABLE AGILE TRANSFORMACIÓN ROADMAP
  10. 10. 10 MATURITY LEVELS – 1 TO 3: INTEGRATED VALUE CHAIN  Agile-Lean Product Portfolio Management (MVP / small chunks, limited to capacity & WIP reduction)  Feature teams (all tiers)  Organizational impediments service  Systems thinking  Lean Startup  Continuous Delivery – DevOps - Cloud  Test & learn mindset  Small autonomous teams, dedicated & stable (Scrum, Kanban, XP)  Biz value KPIs  Teamwork principles  Integrated end-to-end
  11. 11. 11 MATURITY LEVELS – 1 TO 3: INTEGRATED VALUE CHAIN  Agile-Lean Product Portfolio Management (MVP / small chunks, limited to capacity & WIP reduction)  Feature teams (all tiers)  Organizational impediments service  Systems thinking Level 2 is produces the first key impact in organizational agility (enablement of Business Value):  Focus on selected critical projects (faster delivery of them).  Flexibility to context/market changes.  Reduces “wishful thinking”.  Fosters collaboration. Can you start HERE?
  12. 12. 12 Are you ready for the final acceleration?
  13. 13. 13 MATURITY LEVELS – 4: KNOWLEDGE SHARING AND ALIGNMENT Communities of Practice (specialty strategy, cross- learning, standardization and innovation re-use)
  14. 14. 14 MATURITY LEVELS – 4: ORGANISATIONAL IMPROVEMENT Improvement Champion (E2E view) Organizational impediments service (started in level 2) Very short, clear priorities & focus, no inventory waste Scrum Masters, Agile Coaches, Management  Based on teams needs (Gemba)  Back to CoPs and teams backlogs
  15. 15. 15 MATURITY LEVELS – 4: ORGANISATIONAL SCAFFOLDING !!  Communities of Practice (specialty strategy, cross-learning, standardization and innovation re- use)  Organizational impediments service (started in level 2)  End-to-End organization KPIs  Competence development & Teams empowerment In a natural way, the team identifies the transversal impact of Business initiatives
  16. 16. 16 MATURITY LEVELS – 5: VALUE CENTRES  Customer centric micro-enterprises (own responsibility with all end-to- end business skills integrated)  Strategic objectives by Value Center, own budget  Strong alignment through values (hiring & firing) and common purpose
  17. 17. 17 TARGET ORGANISATIONAL MODEL : CUSTOMER CENTRICITY Autonomy (and innovation) on customer segment decisions (why, what, how, budget, organization). Ownership and empowerment. Supporting ecosystem Central services:  Business agnostic  Small, fast & efficient (otherwise, value centers can take their functions) Teams are the basic organizational building block This organizational model supports any company size: a big organization is a fractal of smaller ones so it’s easy to scale if new business needs appear
  18. 18. 18 How to do it
  19. 19. 19 CHANGE: DELIBERATED AND ORGANIC DE-CONSTRUCTION 1 Need of business agility 3 Ready, right moment, key Agile roles in place 2 Right people = open minded / People ask for Agile (organic) Deep & narrow (iterative deconstruction and maturity increase by area) Broad sales motion will FAIL
  20. 20. 20 = impact in Management CHANGE: IMPACT IN BUSINESS AND CULTURE BY MATURITY LEVEL Systems thinking (capacity based, WIP reduction) & new organizational structure Competence Management & Teams empowerment Strong alignment through values (hiring & firing) Test & learn mindset (avoiding fear of failure) Teamwork principles, breaking silos (Biz vs IT) Joint Visual Management  New structure & roles  Right people  High sponsorship 1. Ration out” cultural change in order not to die by overdose  2. Transform area by area (deep & narrow test & learn)
  21. 21. 21 CONCLUSIONS  The essential goal is to get satisfied customers. Instead of coordinate specialities and departments, it is better to integrate the full value chain by customer segment.  If organisations get slower and more politized as much as their increase their size, then it’s better to have small self- contained teams which are empowered to take decisions (the organizational building block).
  22. 22. 22 LAST RECOMMENDATIONS  “Organic” adoption – The organization should decide on agilization actions by taking into account which is the most important aspect to improve at any moment.  “Test & learn” – As the environment usually is complex, first test things in small contexts and learn before disseminating across the organization.  Models and principles where to dig deeply :  LESS (Large Scale Scrum) & Spotify  Organize for Complexity - Betacodex  Cynefin framework  Favor what implies direct interaction between people who do the “real” work, in the trences.
  23. 23. 23 LAST RECOMMENDATIONS Product / service X Strategic initiative A Strategic initiative B DELIBERATED deconstruction  You can move from level 1 to 5 very quickly if you segregate Value Centers: internal spin-offs!!
  24. 24. Xavier Albaladejo Agile transformation expert • Blog: • Twitter:@xavi_albaladejo Emerging Markets EMEA-LATAM