Download - The Culture of Agility
© 2011 Trail Ridge Consulting, LLC
Pete BehrensLeadership Agility CoachEmail [email protected] @petebehrens
The Culture of Agility
Understanding why some companies succeed through sustained agility while others flounder following initial success
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
93%of what you’ve learned
at Agile 2011will fail to stick
in your organization*
* without a supportive agile culture
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© 2011 Trail Ridge Consulting, LLC
The Culture of Agility
What is culture?
Why is culture important?
A Language for culture
Culture and Agility
4 Keys to an Agile Culture
@petebehrens
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
What isCulture ?
What we do to succeed
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© 2011 Trail Ridge Consulting, LLC
INTP
There are many culture success modelsjust as there are many successful personalities
Culture is to an organization As personality is to a person
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
The Culture of Agility
What is culture?
Why is culture important?
A Language for culture
Culture and Agility
4 Keys to an Agile Culture
@petebehrens
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC Years
Agility
0 1 2 3 4 5
Learning Agility
Training & Coaching
Internal Learning
Sustainability
While many organizations adopt agile, and those that bring in outside aid do so much faster than others, few are able to sustain their agile transformation - this is the focus of the presentation
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Agile is a Strategy
Not the Goal!
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Product Agility
What is Agility?
Organizational Agility
Cultural Agility
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Culture
Structure
Process WhatHow
WhoWhere
Why
Behaviors
Roles, TeamsResponsibilities
ValuesBeliefs
What is Agility?
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
Culture
Structure
Process WhatHow
WhoWhere
Why
Behaviors
Roles, TeamsResponsibilities
ValuesBeliefs
What is Agility?
93% of th
e
sess
ions at
Agile 20
11
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© 2011 Trail Ridge Consulting, LLC
Culture
Structure
Process WhatHow
WhoWhere
Why
Behaviors
Roles, TeamsResponsibilities
ValuesBeliefs
What is Agility?Im
pact
s
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
Steve Denning @ Agile 2011
Shift from Value
to Values
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
Culture
Structure
Process WhatHow
WhoWhere
Why
Behaviors
Roles, TeamsResponsibilities
ValuesBeliefs
What is Agility?Im
pact
sFocu
s
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
The Culture of Agility
What is culture?
Why is culture important?
A Language for culture
Culture and Agility
4 Keys to an Agile Culture
@petebehrens
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
A language for Culture
William Schneider, The Reengineering Alternative
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
Socialization base in military organizationsStructured hierarchically, focused functionally
Control Culture
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Leaders exercise “role” powerFollow chain of commandCommand respect and complianceDelegation is tight, clear
“Authoritative”
Control Culture
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"Everyone at P&G is like a hand in a bucket of water, when the hand is removed, the water closes in and there is no trace."
The system is more important than peopleInformation is guarded with care and flows down/up
“System”
Control Culture
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"We are the biggest SOP company in the business.”
Policy and procedure are extremely importantDecision making is methodical and systematic
“Process”
Control Culture
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Socialization base in the family or athletic teamStrong focus on people and interactions
Success through building and developing teams
Collaboration Culture
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1982 each employee gave $1,000 to buy a $30M Boeing 767
1973 during energy crisis they had a no layoff policyThey shifted to other jobs, cleaning, selling tickets, etc.
Personal sacrifice for the organizationCamaraderie, shared celebrations, shared wealth
Individual identity tied to organizational identity
“We”
Collaboration Culture
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"The only difference between us and our competitors is our people, our engineers are more creative, our people
are more productive, we are going to beat them."
Relationship power is keyPeople stick with the organization a long time
“People over
Process”
Collaboration Culture
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"When decisions have to get made, we get everyones opinion."
Their CEO, a 32 year veteran with the company,still eats with packers, and junior managers
Success comes through synergy from working togetherThey hire a wide variety of people with versatility
“2+2 = 5”
Collaboration Culture
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Socialization base in the universityStrong focus on expertise and knowledge
Value competition against a standard of excellence
Competence Culture
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Seymour Cray "was obsessed by a vision of technological achievement, scientific purity, and quality"
Focus on new products, services, markets, businessesIdeas and concepts ultimately motivate people
“Visionary”
Competence Culture
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Giant research lab in electrical engineering, chemistry, biology, computer science, and physics with over 26,000 patents
Success by having the best product, technology or servicePursuit of excellence, ingenuity and creativity
“Excellence”
Competence Culture
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"One of the things that characterizes Microsoft is insecurity. People never believe that they've got the best product.
It's always the fear that somebody is going to come up with a better product."
There is always more to doConsiderable pressure to move ahead
“Never Satisfied”
Competence Culture
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Culture of superstars
Do whatever it takes to winRelationships are often competitive
The better you can be, the more you will be rewarded
“Up or Out”
Competence Culture
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Socialization base in religious institutionsStrong focus on growth and faith
System of beliefs to accomplish goalsMake progress towards a higher order
Cultivation Culture
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Make the world a better place, nurture people’s bodies, and uplift their souls.
Expanders and enlargers of their people and organizationEnvision possibilities - get people on a common vision
Pursuit of possibility - people possibility, uplifting
“Purposeful”
Cultivation Culture
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Four acre company gardenSocial responsibility
Plant seeds and trusts nature to take its courseInformation is free-flowing, little is kept secret
Climate is relaxed, spirited and energetic
“Organic”
Cultivation Culture
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“Never kill an idea, deflect it”“Biological Structure”
Encourage free flow of ideasPeople empowered to think independently
Advocate discovery, experimentation and fresh ideasThe organization is in motion a great deal
“Creative”
Cultivation Culture
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Personal-Impersonal CulturesPe
rsonal
CUL
TIV
ATIO
NCOLL
ABO
RAT
ION • People driven
• Organic
• Dynamic
• Participative
• Subjective
• Informal
• Open-ended
• Emotional
Imperso
nal
COMPE
TENC
ECONT
ROL
• Detached
• Systems, policies and procedures
• Scientific
• Objective
• Formal
• Emotionless
• Prescriptive
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Actuality-Possibility Cultures
Actuality
Imperso
nalPe
rsonal
COMPE
TENC
ECONT
ROL
CUL
TIV
ATIO
NCOLL
ABO
RAT
ION
• Concrete, tangible reality, facts• What has occurred and is occurring now• Actual experience and occurrence• What can be seen, heard, touched, measured• Practicality, utility
Possibility
• Insights and imagined alternatives• What might occur in the future• Ideals, beliefs, aspirations, inspirations• Novelty, innovations, and creative options• Theoretical concepts or frameworks
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Core Culture Overview
Actuality
Possibility
Imperso
nalPe
rsonal
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
The Culture of Agility
What is culture?
Why is culture important?
A Language for culture
Culture and Agility
4 Keys to an Agile Culture
@petebehrens
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
Reading Charts and Graphs
Blue = Control Culture
Many of the subsequent slides will display information in color without coding what the color indicates. Just as the introduction of the culture language, each core culture is represented by its color.
Yellow = Collaboration Culture
Red = Competence Culture
Green = Cultivation Culture
The information presented in the subsequent slides is from real companies who have transitioned and are in various stages of sustainability of agility.
The following case studies were chosen as examples of various cultures and how understanding their culture impacted their agile adoption and sustainability.
Data was obtained through surveying the organizations.
Wednesday, August 17, 2011
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Retail Control Culture
Control
Collaboration
Competence
Cultivation
10 15 20 25 30 35
Percent Response
This is control culture signature of a large retail IT organization with a centralized functional hierarchy. While there are many nuances to their agile adoption, in general they have been on the road for 2 years.
Wednesday, August 17, 2011
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Retail Control Culture
1. The people with the most power and influence in the organization:21 a. Are charismatic, can inspire others, and are good at motivating
others to develop their potential.53 b. Have the title and position that gives them the right and authority
to exercise power and influence.21 c. Are both contributors and team players, who are an essential
part of the team. People like working with them. 5 d. Are experts or specialists, who have the most knowledge about
something important.
ControlCollaboration
CompetenceCultivation 21
521
53
An example survey question and answers used to measure culture. Leaders in control cultures tend to drive through title and position.
Wednesday, August 17, 2011
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Retail Control Culture
2. Which of the following best describes the primary way decisions are made in the organization?
3 a. We pay close attention to our concepts and standards. We emphasize the fit between our theoretical goals and the extent to which we achieve them. Our decision-making process centers on how systematically our conceptual goals are achieved.
5 b. We pay close attention to our values. We emphasize the fit between our values and how close we are to realizing them. Our decision-making process centers on the congruence between our values or purposes and what we have put into practice.
89 c. We emphasize what the organization needs. Our decision-making process centers on the objectives of the organization and on what we need from each function within the organization.
3 d. We emphasize tapping into the experiences of one another. Our decision-making process centers on fully using our collective experiences and pushing for consensus.
ControlCollaboration
CompetenceCultivation 5
33
89
Control cultures tend to have a functional focus on the current needs.
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Retail Control Culture
3. What do we pay attention to primarily in our organization and how do we make decisions?
37 a. We pay attention to what might be and we decide by relying on objective and detached analysis.
13 b. We pay attention to what is and we decide by relaying on what evolves from within the hearts and minds of our people.
18 c. We pay attention to what might be and we decide by relaying on what evolves from within the hearts and minds of our people.
32 d. We pay attention to what is and we decide by relying on objective and detached analysis.
ControlCollaboration
CompetenceCultivation 18
3713
32
Not all responses will be focused in one culture - This indicates a very impersonal culture.
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Retail Control Culture
5. What counts most in the organization is:26 a. Winning. Being recognized as the best competitor around. 3 b. Not losing. Keeping what we've got.63 c. Evolving. Realizing greater potential. Fulfilling commitments. 8 d. Accomplishing it together. Being able to say "we did it together".
ControlCollaboration
CompetenceCultivation 63
268
3
Not all responses indicate a control culture as this response indicates a cultivative response.
Wednesday, August 17, 2011
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Agility
0 1 2 3 4 5
Retail Control Culture Adoption
Due to the control culture structure and size of the organization, agile adoption is more challenging and takes longer as the traditional structures are deconstructed in favor of more agile structures
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Product Cultivative Culture
Control
Collaboration
Competence
Cultivation
10 15 20 25 30 35
Percent Response
This is a cultivative culture signature of a small product development organization.
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Product Cultivative Culture
6. Which phrase best describes our organization? 80 a. "We believe in what we are doing, we make a commitment, and
we realize unlimited potential."10 b. "We are the best at what we do." 0 c. "We are the biggest at what we do."10 d. "United we stand, divided we fall."
ControlCollaboration
CompetenceCultivation 80
1010
0
Cultivative cultures look forward and look for growth in people through mission
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Product Cultivative Culture
7. What counts most in the organization is: 0 a. Security.20 b. Community.20 c. Merit.60 d. Fulfillment.
ControlCollaboration
CompetenceCultivation 60
2020
0
This company shows a strong commitment to people and their beliefs
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Agility
0 1 2 3 4 5
Cultivative Culture Path
Due to the smaller size and agile culture alignment, adoption was natural and fast. Added agile structures to focus on discipline of agility.
Org growth75 -> 150!
9 people at Agile 2011!
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McKinsey IT (presenting @Agile2011)
Control
Collaboration
Competence
Cultivation
10 20 30 40 50 60
Percent Response
Many successful agile companies exhibit cultivative cultural behaviors - as seen by those presenting at the conference.
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From Team to “WOW” Team
1. BACK TO THE BASICS
2. NO IDEA IS TOO SILLY
3. START SMALL
4. MAKE EVERYTHING FUN
This represents a summary of McKinsey IT Agile 2011 Presentation
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Agility
0 1 2 3 4 5
McKinsey IT Agile Path
Due to the smaller size and agile culture alignment, adoption was natural and fast. Added agile structures to focus on discipline of agility. Even as they reach plateaus, their culture helps them move beyond them.
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Barbara Fredrickson @ Agile 2011
Positive emotions expand awareness
which enable agility
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Omnyx (GE Healthcare) (presenting @Agile2011)
Control
Collaboration
Competence
Cultivation
10 15 20 25 30 35
Percent Response
Another cultivative (and well balanced) organization presenting at Agile 2011
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Organizational Heartbeat
From the Omnyx presentation, you can see they focus on culture as much as they focus on agility because they see them as co-dependent.
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Agility
0 1 2 3 4 5
Omnyx Agile Path
Starting with a greenfield organization, in the medical field, Omnyx created a culture of agility from the outset and have continued strengthening it for 3 years
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Salesforce R&D Competence Culture (presenting @ Agile 2011)
Control
Collaboration
Competence
Cultivation
10 15 20 25 30 35
Percent Response
Not all successful agile companies are cultivative. Salesforce.com, one of the most documented successful agile organizations sports a competence-based culture.
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SaaS R&D Competence Culture
8. Which of the following best describes how you feel about working in your organization:
7 a. This is a caring and "spirited" place. I feel supported.24 b. People are able to count on one another. 2 c. Things are no nonsense and restrained.66 d. Things are rather intense. I feel like I have to be on my toes all
the time.
ControlCollaboration
CompetenceCultivation 7
6624
2
Competence cultures tend to drive their people and have higher intensity
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SaaS R&D Competence Culture
9. Which of the following best describes our organization's primary approach in dealing with customers?
14 a. Partnership. We team up with our customers. We want to be able to say "We did it together".
19 b. We emphasize uplifting and enriching our customers. We concentrate on realizing the possibilities and potential of our customers more fully.
12 c. We emphasize gaining the greatest market share that we can get. We would like to be the only game in town for our customers.
54 d. We emphasize offering superior value to our customers. We try to provide state-of-the-art goods or services to our customers.
ControlCollaboration
CompetenceCultivation 19
5414
12
Competence cultures tend to drive their products as hard as their people. Nothing is good enough, there is always better.
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Agility
0 1 2 3 4 5
SaaS R&D Competence Culture
“All In” approach in R&D with training/coaching help brought early success. Continued expanding through IT, Tech Ops, Marketing over next 4 years.Agile structures have guided its continued growth.
250 in R&D
> 1,000 in R&D, IT, Ops, Mktg
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Salesforce.com:A Financial Perspective
Salesforce.com’s financial performance has paralleled their agility as compared to Apple, one of the top performing companies in the past decade.
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SaaS IT Culture (same company)
Control
Collaboration
Competence
Cultivation
10 15 20 25 30 35
Percent Response
Company cultures are not singular. In this case, Salesforce.com IT organization exhibits a cultivative culture.
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SaaS Acquisition (same company)
Control
Collaboration
Competence
Cultivation
10 15 20 25 30 35
Percent Response
Again, through acquisition, yet another sub-culture is brought into the mixture.
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Sub-Cultures
Control
Collaboration
Competence
Cultivation
10 15 20 25 30 35
Percent Response
ITR&DAcquisition
Working across differing sub-cultures can be very challenging and is what causes failure within organizations and mergers.
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Cultural Discovery
R&D Acquisition
In this case, a leadership summit focused on culture began to expose the organization to this language and their culture. It aided in their shared understanding of different sub-cultures.
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Cultural Visioning
During the summit, cross-departmental teams envisioned new cultures based on what they had learned - these examples illustrate a desire to take the strengths across all cultures to drive a new future combined culture.
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC
The Culture of Agility
What is culture?
Why is culture important?
A Language for culture
Culture and Agility
4 Keys to an Agile Culture
@petebehrens
Wednesday, August 17, 2011
© 2011 Trail Ridge Consulting, LLC Years
Agility
0 1 2 3 4 5
What makes the difference?
Why?
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© 2011 Trail Ridge Consulting, LLC
1. Start with Awareness
Visualize the Organizational Culture
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2. Focus on Leadership
Leadership Culture
Leadership drives culturein new organizations
Culture drives leadership in matured organizations
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Expert
Achiever
Catalyst
2. Focus on Leadership
Leadership Agility
Catalyst-level leadership is required to foster and support organizational agility and an agile culture, especially when a corporate culture exhibits behaviors which inhibit agility.
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3. Change the Structures
This is an organizational sociogram highlighting the communication structures across roles in an organization.
It, along with other structural tools, can aid in understanding how the structures are enabling or hindering agility.
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3. Change the Structures
Fewer Roles
IncreasesCommunication
Source: 2004 Patterns of Effective Organizations by Neil Harrison
Serving as one example, reducing roles within an organization can increase communication and collaboration - keys to agility.
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3. Change the Structures
Org Review Cycle
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Sprint Cycle
Program Review Cycle
Organizational Heartbeat
Serving as a second example, creating organizational shared learning and collaboration structures like this organizational heartbeat drive increased agility.
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Day
MonthSprint
BacklogOrganizational
Change
Org
aniz
atio
nal
Bac
klog
Organizational Agility Team
Impediments, Challenges, Learning,Tools, Surveys, Feedback, Issues, etc.
Using Agile toBE(COME) Agile
3. Change the Structures
Organizational Agility Team
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4. Expect Constant Change
Agility is not a one-time event
it is a process of ongoing improvement
where change is not the exception
it is the norm
and creates an environment of insecurity in our organizations constantly
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4. Expect Constant Change
“Get Comfortable with being uncomfortable”Michael Meissner, Omnyx @ Agile 2011
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The Culture of Agility
1. Start with Awareness
2. Focus on Leadership
3. Change the Structures
4. Expect Constant Change
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