Agile organization design workshop
- 3. What is organization?
“An organization is a
social entity that has a
collective goal and is
linked to an external
environment.”
- Wikipedia
- 6. Strategy
• Set the organization’s direction
• Encompass company’s vision and mission, as
well as its short- and long-term goals
• The cornerstone of organization design
process
- 7. Structure
• Determine where formal power and authority
are located
• It comprises the organizational components,
their relationships, and hierarchy
• It is what is shown on a typical organization
chart, including roles and responsibilities
- 9. Rewards
• Metrics help align individual behaviors and
performance with the organizational goals
• Reward and recognition system
communicates what the company values
- 10. People
• The people (HR) practices create organizational capability from
the many individual abilities resident in the organization
• Different strategies require different people practices in the area
of selection, performance feedback, and learning and development
- 15. Scrum in the Context
Strategy Product
Organizational
capability
Speed and flexibility
Organizational
design
(explicit) Structure and Processes
(implicit) Rewards and People
- 20. Agility is the ability to create and respond
to change in order to profit in the
turbulent business environment.
An enterprise’s ability to take advantage of
opportunities, respond to challenges, and
to do so while controlling risk.
- Jim Highsmith
- Ken Schwaber
- 24. M-MGW
We believe that fundamental changes needed in our
minds to succeed with this journey are as follows:
• More people initiative and less top down control
• More team players and less individual heroes
• More courage and less risk avoidance
• More conversations and less one way communication
• More personal growth and less comfort zone
- 25. My own experience
• Quality crisis
• Responding to change
• “I felt that our organization were like a
school where we learned together”
- 29. Functional Structure
+ Knowledge sharing
+ Specialization
+ Leverage with vendors
+ Economies of scale
+ Standardization
- Managing diverse products
or service
- Cross-functional processes
- 30. Product Structure
+ Product development cycle
+ Product excellence
+ Broad operating freedom
- Divergence
- Duplication
- Lost economies of scale
- Multiple customer points of
contact
- 34. Cross-functional Team
• All skills needed to build
the product
• Balancing specialization
with generalization
• Close cross-functional
collaboration
- 35. Self-managing Team
Team together has the authority to:
✓Design, plan, and execute their task
✓Monitor and manage their
progress
✓Monitor and manage their process
- 38. Item 1
Item 2
Item 3
Item 4
...
…
system
comp
C
Team
comp
A
Work from multiple teams is required
to finish a customer-centric feature.
These dependencies cause waste
such as additional planning and
coordination work, hand-offs
between teams, and delivery of
low-value items.
Work scope is narrow.
Product
Owner
comp
B
Team
comp
A
Team
comp
B
comp
C
Item 1
Item 2
Item 3
Item 4
...
…
Team
Wu
Product
Owner
Team
Shu
Team
Wei
system
comp
A
comp
B
comp
C
Every team completes customer-
centric items. The dependencies
between teams are related to shared
code. This simplifies planning but
causes a need for frequent
integration, modern engineering
practices, and additional learning.
Work scope is broad.
Component teams Feature teams
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Copyright © 2010
C.Larman & B. Vodde
All rights reserved.
- 46. Change!!!
✓ Product Manager is used to “throwing the project over the wall”
and holding engineering responsible for meeting needs.
✓ Scrum puts this responsibility back on the Product Owner and
customers through the inspect and adapt and the Sprint Review.
Make decisions regarding ROI every Sprint end.
- 49. Avoid or Transform PMO?
http://blog.odd-e.com/yilv/2014/10/the-future-of-project-managers.html
- 53. Fewer Managers?
• Probably yes, with flatter organization
• “My ideal is to have one supervisor for every one
hundred workers” - Ishikawa
• My experience: 3-5 teams for experienced manager,
2-3 teams for new manager
- 58. From Ready to Done
• Sprint, from Ready to Done
• What happens before Ready?
• What happens after Done?
- 63. release N release N+1
repeat
cross-functional
Scrum feature
teams do all work
so that product
can potentially be
released each
iteration
a 2-4
week
iteration
true
release
potential
release
potential
release
continuous product development eliminates projects in
product development; there is simply an ʻendlessʼ series of
iterations, each of which is similar in activities and each of
which ends in a potentially shippable product increment
Product
Backlog
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www.odd-e.com
Copyright © 2009
C.Larman & B. Vodde
All rights reserved.
- 72. Kanban in a Nutshell
Visualize
Limit WIP
Manage flow
Explicit polices
Feedback loops
Improvements
- 77. Kanban in a Nutshell
Visualize
Limit WIP
Manage flow
Explicit polices
Feedback loops
Improvements
- 79. At regular intervals, the team reflects on
how to become more effective, then
tunes and adjusts its behavior accordingly
- 88. “I hate my work, I only
do it for the money, i
don’t want to think for
myself, indeed, I’d rather
just do as little as I can.”
“I like to work, it’s part of
my life, i want to do well,
and I will work hard if
given the responsibility
and recognition I deserve.”
- 91. Compensation
• Make sure the promotion system is unassailable
• De-emphasize the merit pay system
• Tie profit sharing to economic drivers
- 96. “Improving systems and
processes improves the
performance of the
organization.”
“Individual improvement initiatives are most effective when
they are combined with serious efforts toward improving
the work climate, systems, and processes.”
“Improving individuals’
performance improves
organizational performance.”
- 97. “Remove barriers that rob people in
management and in engineering of
their right to pride in workmanship.
This means, inter alia, abolishment of
the annual or merit rating and of
management by objective”
W. Edwards Deming
- 100. Metrics for Agile Adoption
• The ratio of fixing work to feature work
• Cycle time
• Number of defects escaping to production
http://www.estherderby.com/2011/10/metrics-for-agile.html
- 101. Measure Organizational Agility
• Frequency of releases (months)
• Stabilization time for releases
• # of customers on current release
• Time to get small change to customer
• Maintenance as % of development budget
• Total defects
• Customer satisfaction
• Employee satisfaction
- 105. Team Goal
• Give all of the members of an Agile team
the same performance goals
• “How did you help achieve the team goal?”
- 107. Culture
• Behavior is the manifestation of
an organization’s culture
• No matter how clearly the
organization’s values are stated,
it is the way that people act that
defines the culture
- 111. Team Development Goals
• Baseline current
team skill profile
• Define team
development goals
• Align individual
development goals
- 114. Manager as Coach
• Teach at work
• Toyota coaching Kata
• Mentor/Mentee dialogue
• Supported by A3 report