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Agile practices have proven to help software teams develop better software products while shortening delivery cycles to weeks and even days. To respond to the new challenges of cloud computing, mobility, big data, social media, and more, organizations need to extend these agile practices and principles beyond software engineering departments and into the broader organization. Adaptive leadership principles offer managers and development professionals the tools they need to accelerate the move toward agility throughout IT and the enterprise. Jim Highsmith presents the three dimensions of adaptive leadership and offers an integrated approach for helping you spread agile practices across your wider organization. Jim introduces the “riding paradox” and explores the elements of an exploring, engaging, and adaptive leadership style. Learn about the good things that can happen when you coherently articulate why agility is so critical today and then follow up with a plan of action. Find out how to build a continuous delivery capability within your company-at the team, department, and organization levels.
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KW2 Keynote 11/7/2012 12:45 PM
"Adaptive Leadership: Accelerating Enterprise Agility"
Presented by:
Jim Highsmith ThoughtWorks, Inc.
Brought to you by:
340 Corporate Way, Suite 300, Orange Park, FL 32073 888‐268‐8770 ∙ 904‐278‐0524 ∙ sqeinfo@sqe.com ∙ www.sqe.com
Jim Highsmith ThoughtWorks, Inc.
An executive consultant at ThoughtWorks, Inc., Jim Highsmith has more than thirty years of experience as an IT manager, product manager, project manager, consultant, and software developer. Jim is the author of Agile Project Management: Creating Innovative Products; the Jolt Award winner Adaptive Software Development: A Collaborative Approach to Managing Complex Systems; and Agile Software Development Ecosystems. He is a co-author of the Agile Manifesto, a founding member of The Agile Alliance, co-author of the Declaration of Interdependence for project leaders, and co-founder and first president of the Agile Project Leadership Network. Jim has consulted with IT and product development organizations, and software companies worldwide.
1
Adaptive Leadership: Accelerating Enterprise Agility
Jim HighsmithgExecutive Consultant
Don’t micro-manage
Buy pizza andget out of the way
2
Goals of Adaptive Leaders3
Envision a Responsive Envision a Responsive Enterprise
Deliver a Continuous Stream of Value
Why Agile?
Be Agile
Do Agile
Create an Innovative Culture
©2011 ThoughtWorks, Inc.
AgileAgile
Agility is a Strategic Issue4
“88% of executives cite organisational agility as key to global success.”
“50% say that agility is not only important, but diff ti t ”a core differentiator.”
Source: The Economist, Special Report on Agility, March 2009
3
exploit the changeOpportunity
…exploit the change
5
…survive the changeDanger
Are We at an Inflection Point?
“Every decade• 2000 ‐ the Web
• 2012‐mobility (individuals), cloud (system) plus big
Every decade or so since the beginning of the computer age there comes a
data and social mediaplatform change...”
Source: “The Impact of Technology Mega‐Trends on Corporate IT and Business Models,” Tuck School of Business at Dartmouth.
4
Social Business is Big Business
Dell’s Social Media Command Center monitors Facebook, Twitter, and more in the blogosphere. In 13 languages, effectively in every country. “It’s really 24/7, and you can’t even take a tea break.”
Source: “The Impact of Technology Mega‐Trends on Corporate IT and Business Models,” Tuck School of Business at Dartmouth
Core Business Strategies 8
ResponsivenessEfficiency
©2011 ThoughtWorks, Inc.
5
Beyond Budgeting
Lean (lean Next Gen (startup)Management
Business Responsiveness10
6
Strategy & Continuous Delivery11
sing
Com
mitm
ent
Increasing Benefit & Investment
Incr
eas
©2011 ThoughtWorks, Inc.
The Evolution to Continuous Innovation12
Continuous Discovery
C i
Continuous Delivery
©2011 ThoughtWorks, Inc.
Continuous Development
7
Two Strategic Questions13
I h d In what ways does our business need to be more responsive?
If we could deliver solutions much faster solutions much faster
via continuous design & delivery, how could we
take advantage of that?
©2011 ThoughtWorks, Inc.
Levels of Agility/Delivery14
©2011 ThoughtWorks, Inc.
8
Why Adaptive Leadership?
Better Performance
Engaging Work Environment
Battle for the Future
Do Agile Be Agile
Enterprise(Adaptive TalentCustomers
Purpose
(Adaptive Leadership)
TalentCustomers
Shareholders/Financial Markets
9
How Important is Health (Being)?
“Organizations that focused on performance AND health simultaneously were nearly twice as successful as those that focused on health alone, and nearly three times as successful as those that focused on performance alone.”
Beyond Performance: How Great Organizations Build Ultimate Competitive Advantage, Scott Keller & Colin Price (McKinsey & Co.)
Extensive Beyond Performance Research
Surveys: 600,000 respondents, 500 companies6 800 CEO’s & senior executives6,800 CEO s & senior executivesReviews: 900 books & academic journals
Personal interviews: 30 CEO’sData from: >100 McKinsey clients
10
Agenda20
Envision a Responsive Envision a Responsive Enterprise
Deliver a Continuous Stream of Value
Why Agile?
Be Agile
Do Agile
Create an Innovative Culture
©2011 ThoughtWorks, Inc.
AgileAgile
Practices & Process
11
Managers & Key Links
Execution Levers
21
Continuous Innovation
12
Lean Start Up Principles
Entrepreneurs areEntrepreneurs are everywhere
Entrepreneurship is management
Validated Learning
B ild M LBuild – Measure - Learn
Innovation Accounting
Execution Levers
24
Do Less Quality
Speed to Capability Speed to Value
©2011 ThoughtWorks, Inc.
13
25
Continuous Delivery of Value
Feature Backlog Items
RunningTested Features
V l Hi h l f
©2011 ThoughtWorks, Inc.
Value: High value featuresCycle Time: Concept to cash
Throughput: Volume of features
Do your Do your systems look
like this?
Do you think it Do you think it impacts your
agility?
14
Quality Matters
Scientific Instrument Company, CanadaAverage results from 6 before and 6 after Agile projects
27
Average results from 6 before- and 6 after-Agile projects
Pre-Agile Post-Agile % Improvement
Project Cost$2.8 M $1.1M 61%
Project Schedule18 months 13.5 months 24%
Cumulative Defects2,270 381 83%
Staffing18 11 39%
Source: Michael Mah, QSM Assosciates
Quality Issues (technical)
Code qualityDesign qualityAutomated testingTechnical debt reduction
Blah, blah, blah is what your business partners hear!, , y p
15
Historical Dilemma29
Features Quality
BusinessOutcome
Technical Outcome
What if?30
Features ?
Business Outcome
Business Outcome
16
What if?31
Features Cycle Time
Business Outcome
Business Outcome
The Consequences of Waterfall
MaintainPlan, Develop, Build, Test, Release
12+/- monthsHundreds of featuresSerial Development
WeeksFew Features
Serial Development
Feedback from poor quality is long term
Consequences of low quality difficult to determine
17
Agile & Continuous Delivery
3 6 th 3 6 th 3 6 th
Milestone 1R1 R2 R3 …
Feedback immediate, a matter of weeks
3-6 mths
Weekly Releases
Milestone 2R1 R2 R3 …
3-6 mths
Milestone 3R1 R2 R3 …
3-6 mths
Consequences of low qualityeasier to determine.
Goal Not Features, but Continuous Stream of Value!
Speed to Value34
“To create a profile of dexterous organizations, we grouped those
CEOs who recognized the value of fast decisions, an iterative approach to strategy and the ability to execute
Source: IBM—Capitalizing on Complexity: Insights from the Global Chief Executive Officer Study (2010)
to strategy, and the ability to execute with speed.”
18
Speed to Value: The Agile Triangle
Value(R l bl P d )(Releasable Product)
35
Quality(Reliable, Adaptable Product)
Constraints(cost, schedule, scope)
Do Less (But Get More)36
Do the simplest thing possible that delights the delights the
customer
©2011 ThoughtWorks, Inc.
19
Always7%
Do Less: Eliminate Marginal Value37
2% f d d itt
Never Used45%
Rarely Used19%
Sometimes16%
Often13%
2% of code used as written$35 Billion, DOD Software
Crosstalk Journal 2002
< 5% of code used19%
64% of code never or rarely used
Standish Group Study, reported by CEO Jim Johnson,
XP2002
Commercial Software400 projects over 15 years IEEE
conference 2001
38
“Everyone tries to do too much: solve too many problems, build products with too many features. We say ‘no’ to almost everything. If you include every decent idea that comes along, you’ll just wind up with a half-assed version of your product. What you want to do is build half a product that kicks ass.”
Quotes from the founders of 37signals in Practically Radical by William Taylor, 2011)
©2011 ThoughtWorks, Inc.
20
Traditional Value Curve
Value Cost Ratio Curve (Traditional)
39
2025
50
100
20
3040
5060
7080
90100
20
40
60
80
100
120e
Capt
ured
vs
Cost
Exp
ende
d
Value %Cost %
5 5 5 510
1520
1020
0
20
1 2 3 4 5 6 7 8 9 10
Development Phases
Vaul
e
©2011 ThoughtWorks, Inc.
Agile Value Curve40
Strategies
Most valuable first
Evolve features
Determine right cut-off
Value Cost Ratio Curve (Agile)
55
75
8590
95 98 100
4050
60
7080
90100
40
60
80
100
120
ured
vs
Cost
Exp
ende
d
Value %Cost %
515
30
1020
3040
0
20
40
1 2 3 4 5 6 7 8 9 10
Iteration
Vaul
e Ca
ptu
Where is the right cut-off point?©2011 ThoughtWorks, Inc.
21
41
“ …innovation is not about …innovation is not about saying "yes" to everything. It's
about saying "no" to all but the most crucial features.”
©2011 ThoughtWorks, Inc.
Steve Jobs, (former CEO Apple Computer Inc)
Build Capability42
People Technology Process Culture
©2011 ThoughtWorks, Inc.
22
The Possible—HP’s FutureSmart
Goal: Revamp HP LaserJet software across product lineacross product line
Common software
Adaptable
Applications
5% to 40% innovation
Cycle time from 2 months to 1 day
Reduced development costs by 40%Reduced development costs by 40%
Enterprise Agile planning & prioritization
400 people, distributed
Complex and fast changing market
3 years for transformation
Started with CI & CD!
Source: Practical Large Scale Agile, Gary Gruver, Mike Young, Pat Fulghum, Addison Wesley mid-2012
44
Build a Responsive Software Delivery Engine
WIP Value
Feature Backlog Items
RunningTested Features
M
©2011 ThoughtWorks, Inc.
Technicaldebt
DoLess
Quality
Measures:Value
Cycle TimeThroughput
23
Software Delivery Evolution45
12+ months After 12+ months
MaintainBuildProject
Release 1Product Release 2 Release 3
9-12+ mths 9-12+ mths 9-12+ Mths
©2011 ThoughtWorks, Inc.
Release 1D1 D2 D3 …
Continuous Delivery
3-6 mths
Days toWeeks
Release 2D1 D2 D3 …
3-6 mths
Days to Weeks
Release 3
D1 D2 D3 …
3-6 mths
Days to Weeks
24
Agenda47
Envision a Responsive Envision a Responsive Enterprise
Deliver a Continuous Stream of Value
Why Agile?
Be Agile
Do Agile
Create an Innovative Culture
©2011 ThoughtWorks, Inc.
AgileAgile
Values & Principles
Command-Control
48
Adaptive Leadership©2011 ThoughtWorks, Inc.
25
49
“Simple, clear purpose and principles give rise to complex
Simple Rules — Dee Hock
principles give rise to complex, intelligent behavior.”
“Complex rules and regulations give rise to simple, stupid behavior ”behavior.
©2011 ThoughtWorks, Inc.
50
26
Adaptive Leadership Mindset
51
Adapting Exploring
Ridi Riding Paradox Engaging
©2011 ThoughtWorks, Inc.
52
It is difficult to make predictions, especially about the future.
Yogi Berra
©2011 ThoughtWorks, Inc.
27
Adapting53
A traditional manager focuses on following the plan with minimal changes, whereas an agile leader focuses on
adapting successfully to inevitable changes.
–Jim Highsmith
Predictable versus Adaptable54
28
Four Tools for Adapting55
Purpose Alignment Model (Pixton, Nickolaisen, Little, & McDonald, 2009)
OODA Loop (adapted from (Boyd, 1995)
©2011 ThoughtWorks, Inc.
The Short Horizon Model
The Satir Change Model (Weinberg & Smith, 2000)
Exploring Exploring
29
Engage/Inspire57
Daniel Pink, Drive: The Surprising Truth about What Motivates Us
©2011 ThoughtWorks, Inc.
Engage—Facilitating
30
Create an Innovative Team Culture
AutonomySelf-organizing
TeamEngagement
Autonomy
Empowerment
Self organizing
Delegation
59©2010 Jim Highsmith
DecisionFraming
LeadershipPeer-to-Peer
Riding Paradox
Paradox
NOT =
Problem
31
61Agile 101
Paradoxes for Adaptive Leaders
Yin Yang
Control Freedom
Accountability Autonomy
Top-down Hierarchy Self-organizing
Predictability Adaptability
Managers and Edicts Peers and Norms
Hi hi N kHierarchies Networks
Efficiency Responsiveness
32
33
More Information
White paper: “Adaptive Leadership: Accelerating Enterprise Agilit ” Jim Highsmith A ailable on Enterprise Agility,” Jim Highsmith, Available on www.thoughtWorks.com. My blog: www.jimhighsmith.com.Twitter: @jimhighsmith
©2011 ThoughtWorks, Inc.
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