building an agile enterprise
TRANSCRIPT
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Building an Agile Enterprise
“Change is the way of life. And those wholook only to the past or present are certain to miss the future.”
John F. Kennedy
PMI Maine PD Day October 6 2017
Joseph Raynus
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Building an Agile Enterprise
• While we talk about the need for organizations to be agile and resilient, it is easier said than done.
• We still have a problem with change, but it is more about our ability to remain in charge when responding to unexpected change
• The management of organizational change is a challenge, identify the skill sets we need to cope with it at today’s ever-accelerating pace.
Introduction
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An agile force is a force that can
not do anything well
Agility means that you
spent all your time
preparing for
something that will
never ocure
Agility would be nice to have, but we simply cannot afford it
You can con a sucker
into committing to an
impossible deadline,
but you cannot con
him into meeting it
Agility would be nice to have, but
we simply cannot afford it.
Agility Sucks (if you do not have right mind set)
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Agilizing the Enterprise is Challenging and Going Beyond the Traditional Approach
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5
Unknown
Volatile
Ambiguous
Complex
• VUCA means more than “a lot of change” or the usual operational and competitive uncertainties faced by all organizations.
• The generally accepted rules and norms that govern business conduct become uncertain and volatile.
• environments are becoming more dynamic as levels of complexity and change accelerate.
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PMI and Agility (History)
• 2012 PMI presentation
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PMI Best practices
7
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So, what drives change—and therefore the need for agility and resilience—in today’s companies?
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2015 PMI Executive Counsel
9
Key factors critical to whether organizations can be truly agile:
Addressing key challenges head on and not ignoring the obvious threats facing organizations. Willful blindness is often characterized by recognizing, yet disregarding, key initial indicators of problems with project/program performance;
Promoting flexibility and communication. Encouraging flexibility, collaboration, and communication while ensuring alignment to strategy and customer focus leads to better decisions and increased organizational agility.
Embracing change. Most management frameworks and philosophies have failed to evolve despite rampant changes in external market conditions
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Product and Service. . Changes
Technology and Process Changes
Regulatory and Sociopolitical Changes Economic Conditions.
The Competitive Environment .
What’s Driving or Hindering Organizational Change
Expectations of Customers and Vendors
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2016 Paradigm Shift
• Project Focus
• Projects deliver “automatic” benefits
• IT is accountable for benefits
• ROI is king
• Project business case
• Passive benefits realization
• “Trusting the gods” to deliver benefits
• Business-outcome focus
• Projects deliver real benefits
• Benefits are a business responsibility
• Broader view on what constitutes a benefit
• Program/project value case
• Active benefits realization
• Managing risk to deliver benefits
From Project World To Project Universe
From Traditional World to Agile
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Building an Agile Enterprise
What is Agility
and Doing Something About It.
Envisioning the Changing Landscape of Business…..
Focusing Resources on Objectives
For a business, resiliencemeans being able first to absorb the impact of, and then effectively react to, severely disruptive change.
For a business to be agile means that it can move quickly, decisively, and effectively in anticipating, initiating, and taking advantage of change.
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Traditional Agile
Approach One way Set of options
Decision Rights
Limited delegation of decision rights As appropriate
Interactions Prescribed interactions Tailored
Information Dissemination
Limited– need to know
Access as appropriate- need to share
System Requirements
Point to point support
established processes
Networksupport
emergentprocesses
Traditional vs. Agile (What does it mean?)
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Business Eco System and drivers for change
14
Business Eco system
Continuous change—change that is unceasing, relentless, and not punctuated by periods of stabilityThere are simply too many organizations that see change as a competitive advantage.
Agility is the capability
to successfully
effect, cope with and/or
exploit changes in
circumstances
The pace of change is unlikely to slow in the near future
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What is Agility?
Agility is the
capability
to successfully
effect, cope with and/or exploit changes in
circumstances
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What is Agility?
within acceptable bounds of performance
(e.g. effectiveness, efficiency, risk)
10
Agility is the capability
to successfully
effect, cope with and/or exploit
changes in circumstances
• Project Portfolio Definition – investing in the RIGHT projects
• Project Portfolio Delivery – making sure projects are done the RIGHT
WAY
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Challenge and Response
Response
Cha
llen
ge
Company
response
External
challenge
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Challenge and Response
Response
Cha
llen
ge
Company response
External challenge
This is a sample text. Insert your
desired text here.
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© 2016 ShareDynamics
19
Let’s talk components
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© 2016 ShareDynamics
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Leadership
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Napoleon and Strategic Agility
• Small units
• Mobile, light, fit, fast, stealthy
• Flexible combination : Assembly => Concentration
• Strategically dispersed, carefully positioned
• Imaginatively Recombined in course of battles/missions
• Decision decentralization: Autonomy and interdependence…
Leadership
Unity
Strategic Approach
Allows superior real time assessment
Resource Flexibility
An organizational innovation
Exploited through
Collective Commitment
• Superior (dispersed) intelligence
• Networked communication channels
• “Collective mind” in sensemaking
and strategy/plan development
• Active dialogues at the top, shared decisions,
involved officers
• “First among peers”
• Inspirational Values (freedom)
• Collective decision-making
• High involvement/commitment
• Trust in execution AND initiative
• Explicit communication
• High rewards, high
risks
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The Curse of Enterprise Success
Resource Fluidity
•Imprisoned resources•Business system rigidity•Ties that bind•Management mediocrity and competence traps
•Tunnel Vision•Tyranny of the core business•Strategic Myopia•Dominance mindset•Snap judgment and intellectuallaziness
Strategic Approach
•Management divergence•Heady charm of fame andpower
•„Expert‟ management
Leadership Unity
Strategic Agility Turns into Strategic Paralysis Over Time …
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Single-minded attention to clear direction and focus leads to…
Leadership position in
everything we do
Tight focus on continuous
improvement
Sustained effort at
maximally leveraging our
core business
Clear vision for the future
of our core business
Driver
High action orientation
and self-confidence
Strategic myopia
Dominance mindsetReluctance to open
collaboration and
experimentation
Short term internal
orientation
Tyranny of the core
business
Framing everything in the
light of the core business
Tunnel vision
Considering everything
outside the core as non-
relevant
Consequence Toxic side-effect
Action hero syndrome,
no time and interest for
alternatives
Snap judgment
and
intellectual laziness
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Learning by doing and
building on experience
Deep collaborative
relationships with key
customers and partners
Highly efficient business
systems and processes
Strong business units
with sufficient autonomy
as they grow
Driver Toxic side-effect
Management mediocrity
and competence
gaps
Forgiven and hidden
misbehavior and
shortcomings
Ties that Bind
Customer & partner „lock
in‟ and decreasing
strategic freedom
•Activity system
rigidification
Increasingly differentiated
and specialized („fit for
purpose‟) activity systems
Resource
imprisonmentCore business managers
„sitting on their resources‟
Consequence
Single-minded attention to High Efficiency leads to…
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Let’s Start with Strategic Planning
What is our
Mission?
Who is our
customer?
What is customer
value?
What is our
result?
What is our plan?
Five Questions of Peter Drucker
Strategic Management Questions for situational analysis
What do I need to know before developing a strategy?
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Let’s Analyze what we do!
• Are we doing the right things?– Addresses business direction and program alignment to that direction
• Are we doing them the right way?– Addresses business processes & program integration to those processes
• Are we getting them done well?– Addresses capabilities, resources, and supporting infrastructure
• Are we getting the benefits from them?– Addresses the proactive management of benefits
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Who’s involved?Programs
Projects
Companies
Decrease cost, increase profitability of new product and service development effortsMissionStrategic goals and vision
Portfolio
The set of initiatives
you choose to spend
your money, resources
and time on is called a
portfolio.
Programs subdivide big
problems into small
problems, and then
assemble the result
into a working whole.
Programs manage a
set of subordinate
projects to achieve
strategic goals often
through subdivided
objectives
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The Big Picture Alignment
Portfolio Management Align portfolio with Strategy
Maintain portfolio balance
Maximize portfolio value
Enterprise StrategyInvestment decisions
Project
Management
€ (+24%)
€millio
ns)
-800400
1 ’500 5’600
4’500
20112010
Investment
Resource supply and demand, by project and department
Investment
Project Prioritization & Optimization
Value and Risk
Portfolio Value Change
Project Strategic Commercial Operational CostsProject
scoreRank
A 90 70 50 60 68 1
B 65 65 50 75 64 2
C 85 85 30 50 63 3
D 75 80 30 65 63 4
E 55 45 55 90 61 5
-500
0
500
1'000
1'500
2'000
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Launch probability
NPV
€ m
illio
ns
0
20
40
60
80
100
120
2012 2013 2014 2015
Res
ourc
e us
e (%
)
Dept A
Dept B
Dept C
Dept D
0
500
1'000
1'500
2'000
2'500
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
€ m
illio
ns
50%
25%
10%
75%
90%1'000
1'500
2'000
2'500
3'000
Pipeline value change: + 1100 m
Pip
elin
e v
alu
e (
Pipeline-derived Sales
From a business perspective, a project is aimed at taking an organization from one level of measured performance to a higher level of measured performance.
Enterprise Strategy
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Agile PM
John Doe
Is Project Management like Spinning Plates?
Imagine you are spinning many plates on the end of poles. All you have to do is to keep all the plates spinning at once, or at least catch them when they drop! To do this you need to share the vision of the project sponsors so that you can help them to realize their objective.
What are the plates?
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What are the key metrics and indicators?How are we going to monitor and report the progress?
The success of the project depends on how to take advantage of continuously changing project environment!
Efficiency
EffectivenessEfficacy
How it will be delivered?What are the delivery channels? Who are the stakeholders?What is communication strategy?
When do we want to do it?How to track progress against plans?
What resources do we need?What are the potential sources of capability?
What is an acceptable balance of cost benefit and risk and how they should be managed?
What is the business objective?Benefits Mapping.Outcomes Mapping.
Operations
StrategyResources and Capabilities
Balance
Cost/Risk/Benefits
?
Four Forces that Drive Strategic Project Planning
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How to Make Project Management Agile?
• Integrate planning, implementation, and evaluation.
• Prevent mismatches between activities and effects.
• Leverage the power of partnerships.
• Enhance accountability by keeping stakeholders focused on outcomes.
• Set priorities for allocating resources.
• Identify data needs and provide a framework for interpreting results.
• Define shared language and shared vision for community change.
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What are the key metrics and indicators?How are we going to monitor and report the progress?
Efficiency
EffectivenessEfficacy
How it will be delivered?What are the delivery channels? Who are the stakeholders?What is communication strategy?
When do we want to do it?How to track progress against plans?
What resources do we need?What are the potential sources of capability?
What is an acceptable balance of cost benefit and risk and how they should be managed?
What is the business objective?Benefits Mapping.Outcomes Mapping.
Operations
StrategyResources and Capabilities
Balance
Cost/Risk/Benefits
Four Forces that Drive Strategic Value Creation
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Project Activities &Milestones
How many milestones are needed?
What is the milestone schedule for tracking progress?
Capabilities
What are the potential sources of capability?
Resources
What resources do we need?
Key Deliverables & Scope
What is the scope?How is it going to be delivered? What are the delivery channels? Who are the stakeholders?
What is communication strategy?
Goals & Objectives
What is the strategic content of the project?
Which business goals/objectives will be advanced?
Are they achievable?
Benefits
What is the business objective?
How are the benefits mapped to objectives?
How are outcomes mapped to objectives?
Performance Measures
What are key metrics and indicators?
How key deliverables will be monitored? How progress is going to be reported?
Cost/Risk/Benefit Balance
What is a cost management approach?
What is acceptable balance of cost benefit and risk?
How cost/risk balanced should be managed?
How? Why?What?
7
6 5 3 2 1
8 4
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34
Exercise
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35
Problem Definition 1
Value Delivery2
Entrepreneurial Agility3
How it affects the Enterprise?
Strategic leadership4
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What are We Lacking?
Strategic Leadership: A never-ending commitment to actively nurture, and systematically strengthen, entrepreneurial mindsets and behavior throughout the organization. This includes everything from leadership, strategy and values to onboarding, training, communications and personnel management
Value delivery: An obsession with continuously adding value for customers and
users. This is more than an increased attention to customers: it is a fundamental
shift in the goal of the organization.
Problem Definition: A presumption that in a VUCA world, big difficult problems
need to be disaggregated into small batches and performed by small cross-
functional autonomous teams, working iteratively in short cycles in a state of flow, with fast feedback from customers and end-users.
• Entrepreneurial Agility: A recognition that, to be fully entrepreneurial, the whole organization needs to embrace the entrepreneurial mindset:
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© 2016 ShareDynamics
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Innovation
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10 types of Innovation: Move Beyond Products to Win
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10 types of Innovation: Move Beyond Products to Win
Business
model
Finance
Networking
2. Networkingenterprise’s structure/value chain
1. Business modelhow the enterprise makes money
Channel
Delivery
Brand Customer
experience
10. Customer experience
how you create an overall
experience for customers
8. Channelhow you connect your offerings to your customers
9. Brandhow you express your offering’s benefit to customers
Core
process
Process.
Enabling
process
3. Enabling processassembled capabilities
4. Core processproprietary processes that add value
6. Product systemextended system that surrounds an offering
Product
performance
Offering
Product
system
Service
7. Servicehow you service your customers
5. Product performancebasic features, performance and functionality
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Agilizing the Enterprise
40
Agile Value Propositions
Agile Leadership
Agile Programs
Agile Teams
Agile Culture
Agile Innovation
Agile Portfolios
Agile Mindset
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© 2016 ShareDynamics
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Let’s Build a Matrix
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The Enterprise Agility Matrix
Flexibility is having more than one way to achieve a desired result.Freedom to operate.
.
Adaptability refers to making changes to self and involves changes to organization, policies, and/or processes
Org
aniz
atio
nal
Fle
xib
ility
Org
aniz
atio
nB
usi
ne
ssM
od
el Leadership Unity
and Culture Strategic
FlexibilityResources Adaptive
Dynamic Strategy
Leadership Innovation
Strategy (Goals, Policy, Objectives) Focus resources on challenge and objective
Business Model – set of structured relationships between company and its customers, suppliers, partners, etc.
When businesses model is failing company must be able find new model or ways of operating in the face of change
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The Enterprise Agility Matrix
Flexibility is having more
than one way to achieve a
desired result. Freedom to
operate.
.
Adaptability refers to
making changes to self
and involves changes to
organization, policies,
and/or processes
Org
an
iza
tio
na
l F
lex
ibil
ity
Org
an
iza
tio
nB
us
ine
ss
Mo
de
l Leadership
Unity and
CultureStrategic
FlexibilityResources Adaptive
Dynamic Strategy
Leadership Innovation
Strategy (Goals, Policy,
Objectives) Focus
resources on challenge
and objective
Business Model – set of
structured relationships
between company and
its customers, suppliers,
partners, etc.
When businesses model is failing company must be able find new model or ways of operating in the face of change
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The Enterprise Agility Matrix
Flexibility is having more
than one way to achieve a
desired result. Freedom to
operate.
.
Adaptability refers to
making changes to self
and involves changes to
organization, policies,
and/or processes
Org
an
iza
tio
na
l F
lex
ibil
ity
Org
an
iza
tio
nB
us
ine
ss
Mo
de
l Leadership
Unity and
CultureStrategic
FlexibilityResources Adaptive
Dynamic Strategy
Leadership Innovation
Strategy (Goals, Policy,
Objectives) Focus
resources on challenge
and objective
Business Model – set of
structured relationships
between company and
its customers, suppliers,
partners, etc.
When businesses model is failing company must be able find new model or ways of operating in the face of change
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The Enterprise Agility Matrix
Flexibility is having more
than one way to achieve a
desired result. Freedom to
operate.
.
Adaptability refers to
making changes to self
and involves changes to
organization, policies,
and/or processes
Org
an
iza
tio
na
l F
lex
ibil
ity
Org
an
iza
tio
nB
us
ine
ss
Mo
de
l Leadership
Unity and
CultureStrategic
FlexibilityResources Adaptive
Dynamic Strategy
Leadership Innovation
Strategy (Goals, Policy,
Objectives) Focus
resources on challenge
and objective
When businesses model is failing company must be able find new model or ways of operating in the face of change
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Agilize the Enterprise:
• View yourself as agile and resilient.• See “change as an opportunity.”• Say that the pace of change has gotten
faster but remains predictable.• View yourself as having better change
capacities at the individual, team, and organizational levels.
Factors to Consider:• Embrace the entrepreneurial mindset
• Enterprise functions are interactive network, not a top-down bureaucracy with a few teams implementing Agile tools and processes.
• Agile is not just for IT: it is a change in the way that the whole organization thinks, is led and managed
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© 2016 ShareDynamics
Questions?
Org
an
iza
tio
na
l
Fle
xib
ilit
y
Org
an
iza
ti
on
Bu
sin
es
s
Mo
de
l
Leadership
Unity and
CultureStrategic
FlexibilityResources Adaptive
Dynamic Strategy
Leadership Innovation
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© 2016 ShareDynamics
Thank You!www.sharedynamics.com
Contact Joe Raynus at (781) 354-0635
e-mail [email protected]