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Collaborative Environment

Speaking of creating the right environment – even in the agile world you sometimes need to make a decision. While that’s not surprising to most managers, it’s often something that agile coaches struggle with. On the other hand, managers often struggle to collaborate and participate, while agile coaches are usually much better at it. All over in an agile environment, you need them both. Decision-making and collaboration.

Decision-making is not that hard once you have a clear purpose of what you like to achieve. But without a clear vision, there are so many options to choose from and the nature of the complex world makes many of them looking good, they all are ok, but it’s impossible to know which one of the right ones, without trying, inspecting, and adapting. And again, the ability to hear feedback and learn from it is critically needed. As in a VUCA world we can’t know which option is the right one, all we can do about it is to experiment and learn from failures. Fail fast, learn fast. There are environments where people react well to what I’ve just said. They understand that it’s better to know you are not going in the right direction sooner than later, they work in short iterations, experiments and get open and honest feedback regularly. They know it’s better to return after a week than when the entire delivery is done in a year from now. Those environments are already agile, they have high trust and are neither afraid of transparency nor failure.

But there are environments where people react with frustration on my sentence. “What do you mean by failing?” they ask. “We can’t fail here!” they say and you can sense the fear and stress growing in the space. “We would be fired if we fail.”. And I’m not surprised. They are living in a different mindset, where they still believe the world is predictable and the business problems can be analyzed, planned, and solutions delivered accordingly. They try to pretend that unpredictability doesn’t exist and that the world is not complex. Just analyze, plan, and do it. That’s it. And all the difficulty is in how to manage it. That’s a traditional mindset and if you like to change it, and increase the agility in a space, you need to start with increasing trust and transparency. Without it there is no real collaboration happening.

In collaborative environments, there are two soft skills needed – coaching and facilitation. You might never be as good at them as professional coaches and professional facilitators are, but be able to use them and help people to raise their awareness about the situation and have an effective conversation and collaborate better is always useful.

Finally agile is a change. Change of the way of working, change of culture and mindset. You can address it at three different levels – changing yourself, through your own behaviors and habits. Becoming a role model. In my mind, this is the most powerful change. Leaders need to change first, the organization will follow. Secondly, you can change the way we work by implementing different frameworks and practices. Thirdly, you can influence the organization and the system level and change the culture and social system.

Agile Leader

Over the last two decades, agile shifted from software teams to organizations. We talk about different cultures, agile organization, agile leadership, agile HR, agile finance, all over business agility. Simply the ability to embrace agile values and principles at the organizational level and change the way organizations run their business. It’s a fundamental change that is more than just implementing some framework.

“Business agility creates an organization best able to serve its customer, no matter what the future brings.”

I found this definition fascinating. In today’s complex, fast-changing, and unpredictable world, agile organizations are good at responding to the nowadays challenges. Agile brings flexibility, allows you to respond to changes fast, learn through the iterations, inspect and adapt. In order to be successful, organizations need to serve its customer, no matter what the future brings. Fixed plans are failing as the business environment is not stable enough. All that matters is creativity and flexibility.

In my second English book published by Addison Wesley – The Agile Leader: Leveraging the Power of Influence I’m looking at organizational agility and focusing on the shift required from the leaders and organizations. Through practical exercises and assessments, you learn how to unleash your potential, become a better catalyst and community builder, sensibly apply transparency, improve functions from HR to finance, and guide entire organizations towards greater agility. Agility at this level is not about practices, nor frameworks. Though those are good at the beginning, as they are helpful in creating an environment with high transparency, autonomy, and collaboration, the real impact we need to create goes way beyond that. Creating a culture that supports innovations and creative solutions is a pre-requisite for real organizational change.

So how does agile start at the organizational level? You can say it starts with a management decision or training, but I would say it all starts with a dream. Is that dream strong enough to leverage the discomfort caused by changing the way we work? Is it strong enough for you? Or let me ask you this: If you won a lottery, would you be still going to work trying to make it happen? Or would you better give up and take a rest? And I’m not speaking about having a vacation to relax for a while, but is the vision important enough for you to hang around even if you don’t need to get paid? No change is smooth and agile brings a fundamental shift of values and culture, so you better have a strong reason for the change.

Being an agile leader is a journey. It always starts with you. You need to change first, the others will follow. Agile leaders need to have a vision that will motivate people to join their effort and work together to achieve it. They need to create a collaborative environment, with high trust, and transparency where the feedback is natural. They need to motivate people by giving them purpose, autonomy, and a learning environment.

Agile Journey

Agile is a journey. In the beginning, people think it’s about different tools, new processes, new names. They keep comparing it to what they know and they are frustrated that the new way of working doesn’t fit the world they know. They still try to analyze, plan, estimate, and track delivery. The problem with that is that they are changing to agile not because there is a new improved method, but because their current way of working is not as successful as it used to be. There is a strong need for significant change. The traditional way of working was effective in solving predictable problems, not in dealing with complexity. In the current world, organizations need to be more flexible, innovative, and creative to address VUCA challenges. Agile brings new paradigms, a new mindset, a new way of working. It’s not comparable anyhow to the traditional ways of managing and delivering work.

Once they pass the initial phase, stop comparing and start looking for understanding, people often fall into a trap of taking all agile as a ‘religion’. Just follow the process, implement tools, do scrum according to the Scrum Guide! This phase is not much fun either. But they are on a journey, not fighting with any strong resistance anymore, and deepening their knowledge about various practices. People are interested, they want to understand it, do it well, however they are usually asking fundamentally wrong questions, looking for the best practices, believing they can copy & paste practices.

When they experiment, fail, and learn from failures enough, they start realizing the real agility, which is not in practices and tools, but in a different culture, mindset, and approach to things. They start realizing the organization and leadership need to change in order to finish the transformation and allow the agility to be successful. Agile becomes the way you not only organize the work but the way you live. It will bring different values and different perspectives.

Business Agility

People mostly believe that agility needs to start top-down and that they need management support first but I know many organizations where the top-down approach failed and many others where the bottom-up approach was successful. And more importantly, I see it as a fundamentally wrong question. Agile is not about hierarchy, but collaboration and self-organization so agile needs to begin by experiencing work at small self-organized teams. As teams experimenting with an agile way of working, learning from it, and gaining their own experience and success, they develop the mindset and influence the teams around. It’s like a snowball effect. Once organizations have decent experience with team-level agility, they quite naturally start experimenting with different scaling approaches and form multi-team collaborative ecosystems where organizations usually start seeing the real business impact of the change. While experience with the agile way of working is growing through the organization, the executive team and board of directors have to get their hands-on experience with teamwork and self-organization. Although their personal experience is helpful in scaling, it became critical when agility is applied at the organizational level which usually implies changing the culture, structure, and leadership role.

It all sounds very simple, but there are a few important pieces to focus on. Agile organizations give teams higher autonomy than traditional ones, allowing them to take ownership and responsibility for their decisions and collaborate. But no collaboration is happening without trust which is the most common obstacle we are facing in the organizations. Unfortunately, the higher in the hierarchy, the harder is to gain the trust and overcome the artificial harmony. Trust is a pre-requisite for any collaboration. Transparency on the other hand is an enabler. Without it, there is no collaboration as misunderstanding and politics take over. Finally, the last piece you need to have is an evolutionary purpose which is strong enough that people are willing to give up their own individual goals in favor of the common goal.

The most usual benefits of business agility are better communication & collaboration, better ways of working, speed to market, and customer satisfaction. No surprise here. But I’m missing one which is nowadays the most common reason why organizations shift to agile. It’s innovation, creativity, and adaptability. In other words, the ability to better respond to the VUCA challenges of the nowadays world. The new world brings new challenges and requires new ways of working. The organizations which could not innovate are not here anymore. So better to start now. Business agility can make your organization competitive in the VUCA world.

Emergent Leadership

Agile organizations are collaborative, creative, and adaptive networks. They are like living organisms, operating on different principles. They naturally flatten the hierarchical structure, making the Org chart quite unimportant. They are based on autonomy, self-organization, and empowerment, leveraging the power of self-organization and instead of hierarchical leadership, they rely on emergent leadership which is not tight to any position but can emerge from different situations and needs on the fly. In Agile organization everyone is a leader. Everyone can take a step and take over an initiative. If that initiative gains the interest of others, they form a team and support it. The radical transparency takes care of feedback and corrects any ideas which are not supporting the overall purpose we are all trying to achieve.

And here is the reason why traditional organizations are generally afraid of loosening the fixed positional power structures and giving teams autonomy. They are often scared of emergent leadership and I’m not surprised by that. In order to make it work you need to have a collaborative culture with high trust, transparency and safety, and strong evolutionary purpose which creates alignment among different parts of your organization so they are heading towards the same direction. Without a clear purpose, everything might look like a good idea worth of trying and higher autonomy usually only creates chaos, while strong purpose helps people to test their ideas by asking a simple question “If we do that, how does it going to help to get closer to the desired state defined by the purpose?” and if it doesn’t we don’t do it and figure out something else which will help us to get there. Radical transparency will allow any initiative to be tested by the crowd and filter weak ideas already before they start. The safe to fail environment encourages people to take over the responsibility and come up with their own ideas. Finally, the collaborative environment will support good ideas. In an agile organization, nothing is fixed. Sometimes I came up with an idea and others form a team around it, next time I join the initiative as a team member. Leadership is emergent and structure liquid.

Now, do you need it? That’s up to you to decide. It all depends on the overall business environment and the challenges you need to work on. Are they predictable and repetitive? A fixed structure will help you to be faster. Are they unpredictable and hard to plan? Are you regularly facing the VUCA (volatility, uncertainty, complexity, and ambiguity) challenges? Then more flexible structures with emergent leadership will be necessary to crack the challenges and be successful in nowadays constantly changing world.

Agile Transformation Metrics

It’s very common that people ask me how they shall measure the success of their Agile transformation. It’s a hard question because there is no meaningful metrics unless you know why you decided to start the agile transformation at the first place at all. Agile is not your goal, it’s just a way how to achieve some of your more strategic goals i.e. address complexity better, be more change responsive, shorten time to market, be more flexible, … And once you know why you are starting your agile journey, then those reasons are exactly the metrics you are going to measure at the organizational level. All are business-oriented and value-driven (outcome), so there is no velocity, no story points as those are focusing on output.

If you want to have a fast culture check on how far you have moved towards the agile mindset, you may look into how many experiments the teams are running, what are their actions from the retrospectives, and how they help them to deliver more value, how likely your teams take failure as learning vs. blaming opportunity, how close are they to customers, and how they collaborate vs. work individually or in silos. As a follow-up, you can have a look to your positions (are they rather broad supporting cross-functional teams than detail task-oriented), recruiting (are we hiring for approach and personality over the hard skills), performance review (team-oriented based on peer feedback over the individual), goals and objectives (team-based focused on purpose and outcome over tactical and individual KPIs focused on output), … and I can continue.

Looking to technical practices, you can check how your software teams implemented Extreme Programming practices i.e. Continuous Integration (even one-minute old code is old code), TDD – Test Driven Development (and overall attest automation), if they use pair programming or mob-programming to collaborate, having strong Definition of Done, focusing on one story at a time, and are ready for Continuous Delivery.

All over Agile is about team collaboration, customer-centered value-driven way of working, and short feedback loops. The rest are just practices, processes, and tools which might support your journey or not. The most important is not what exactly you are measuring, but what you are going to change based on that metric. If the metrics is helping you to improve and change your way of working, it’s a good metric. Measuring something just so you have it, or so you can draw a chart is a waste of your time.

Scaling Success

Companies are not scaling Agile or Scrum, they are scaling success. At our agile journey, we were often wondering how to start, what practices, tools, and processes shall we use. What I learned on my journey is that we don’t need another method. None of these are silver bullets anyway. They are all great for the beginning to change the way you work and to change the mindset. But the most important part of your journey is success. Can you share a success story? Using your own language, describing how your own environment changed, showing the impact the different ways of working created? If yes, people start picking up and trying to achieve a similar impact. The most successful agile transformations I’ve seen started exactly like it. With a small team experimenting with practices, and sharing the impact with others and depending on the starting point, sharing the various different success stories, i.e. 5 times less bugs reported by customers, 3 times more value delivered by the given time (which is not the same as more functionality but quite the opposite), significantly faster time to market, higher motivation and engagement score, more innovations which result in higher customer satisfaction, … the impact varies depending on the environment. For us a few years back it was higher flexibility, faster learning, and higher customer satisfaction.

Sharing success is not anything new in change management. It’s one of the Eight steps for successful change by John Kotter which for some reason are still not widely known in an agile community, so I thought I remind you about them here:

Create a sense of urgency – Unless you know why you are changing the way you work (to be more agile, Scrum, or Kanban), then don’t do it. Neither Agile, Scrum, or Kanban is your goal. They are just ‘walking sticks’ helping you on your journey to success. You need to have a higher purpose defined which will be stronger than their individual goals and therefore unify people.
Build a guiding coalition – You can never change the organization alone. You need to find supporters (agile enthusiasts in this case) who will create a team that will help you change the system. So, at the minimum two additional people who are true agile believers, as three are the smallest team possible. The rest will join you in seeing the results.
Form a strategic vision & initiatives – Sometimes having a purpose is not enough as people don’t see a way how to get there and the whole change is too abstract. That’s a space where frameworks, methods, and practices are useful.
Enlist a volunteer army – Finally, it’s a time to make it bigger. Make it a movement, not just another project. Get buy-in from larger crowds. Get them involved. Again, if you skip some of the previous steps, there is no way it’s going to scale.
Enable action by removing barriers – Now, once you have the energy by your side, you need to help it and remove barriers (hierarchy, silos, detailed positions, individual KPIs, … ), otherwise, all the initial enthusiasm is gone before you realize it.
Generate short-term wins – Show the success early and often, make it visible to everyone. Share stories talk about improvements, celebrate even small steps. Success is a strong engine for change. Accelerate, multiply success. Without it, any change will die.
Sustain acceleration – You can celebrate, but you can’t stop pushing after the first win, being too satisfied with your progress. There is always a better way. Find another challenge, discover a better way of working until the vision of the new way of working defined by the original purpose becomes true.
Institute change – Finally by creating connections between the new way of working and success you keep the change stick. It’s the final glue that prevents the environment from flowing back to the old way of working again.

Agile is a change, and without driving it as a change you can hardly be successful. So don’t forget the define how success looks like, celebrate it, and make it better over time.

Journal of Business Agility – Emergence

Recently I received a nice magazine in my mailbox, the Journal of Business Agility – Emergence. If you are looking for stories from different organizations, inspiration from agile leaders, I would recommend you to subscribe to it. Businesses Agility Institute is known for high-quality content conferences, and the Emergence magazine is a good example of very good curated content. So what caught my attention from this first issue of the magazine?

Budget planning: Prioritization – Capacity – Funding

I start with the first article where Jardena London shares her insights about Budget planning. It’s so much close to what I experienced as a Director running a software organization. “Stop talking about budget and capacity until you prioritize the outcomes you want across the organization. Even the high-level strategic goals need to be put in order.” So many organizations are unable to focus and try to push more things without a conversation about priorities. Once ordering is done “Start by planning capacity by teams, it’s way easier than planning for individuals. You may find that your current team structure no longer serves the needs of your portfolio, so you’ll have to tweak it, maybe add/ remove team.” On my journey, I learned that working with teams is so much easier than trying to plan everything with individuals. From the organizational perspective, working with individuals is too detailed and all different irregularities made it too fuzzy and unpredictable. I can also relate to this note: “Don’t plan out the year, plan the now.” In the current VUCA world, the yearly planning cycles feels outdated and unrealistic. I still remember when we went away from estimations and how enlightening it was. However, when I speak about it now, many people are almost freaking out. How can you plan your capacity without it, they ask. “When we estimate hours, we miss all kinds of variables like task switching cost, administrative time, and buffer time. We spend energy trying to get more precision in the output than we have accuracy for in the input.” Instead, in an agile environment, we focus on forecasting how much teams can produce in a short iteration. “With the same number of people, capacity can change over time. Improvements to capability and technology can impact capacity. Capacity is great for forecasting and planning.” But it’s still a concept very hard to accept not only by finance departments but also by the teams. Finally, “Once you have prioritized and planned capacity, and you’re ready to go, allocate funding. This is the very last thing we do, allowing money to be free and flexible as long as possible.” Agile is about flexibility and the ability to be change responsive. “Decoupling prioritization, capacity and funding can breathe new life into budget planning, alleviating the difficulty for employees and improving outcomes for the organization.”

Fact Sheet: The State of Business Agility in 2020

For those who like facts, numbers, and charts, there is a summary of the State of Business Agility report. “In 2020 we saw a significant increase in business agility globally. Compared to last year, we have seen more organizations commencing their business agility journey, and those on the journey report greater progress.” It’s no surprise for me, as I’m getting the same message from organizations, but it’s still good to have it confirmed with data. And it’s also no surprise that “Leadership continues to be the common theme amongst all transformational challenges.” I can see that in most of the organizations. Boards and executives are struggling with a core understanding of agility beyond practices, processes, and frameworks. Their experience with business agility is still very limited. The good news is, that there are many inspirational stories and use-cases covering every spectrum of organizational function, but still looking for an agile organization is a tough job. When I was writing my new book The Agile Leader: Leveraging the Power of Influence I was bringing in some of those pioneers to share their insights in a short story. We need more stories about the successful agile. We need more insights from their journeys. That’s the only way how to make business agility more accessible for leaders and organizations. If you are looking for three tips where to start, the report brings you three tips: “Organizations who reported higher ratings in these three characteristics also report higher overall business agility and associated benefits: 1. Encouraging a culture of learning and experimentation, 2. funding business outcomes rather than specific work outputs or projects, and 3. aligning work to customer-centric value streams.” Very true. Experiment, learn from feedback and deliver value. Looks very simple, but it’s unfortunately very hard to do in some organizations.

The agile journey of Scrum Alliance

I was watching the Scrum Alliance journey for several years, and I’m very proud of how they changed and the experiments they were courageous to take. Living the Scrum values is never simple, and being agile is a journey. “The Scrum Alliance revolution – beginning with reflection, continuing through a complete rebuild of the organization’s working methods, and ending in a revitalization of public perception.” That’s easy to be said, but hard to be done. “Before the self-organization process, Scrum Alliance had multiple departments with multiple part-time scrum teams. Afterward, the structure had been simplified to six cross-functional and cross-departmental scrum teams.” Once the change was implemented as a trainer I could see immediate value to be created every sprint. How interesting change from all the years before, where value delivery was much slower. “By changing the internal structures of Scrum Alliance, Melissa and Howard had also changed attitudes, operational standards, and revitalized the ethos of the entire organization.” It’s great to read about successes but equally important is to read about things that didn’t go so smoothly. Being agile is a journey and this article is showing the journey with all the transparency and honesty. “Most importantly, Melissa and Howard have built an organization that strives every day to practice what it preaches and embody the values and principles of Business Agility” and that’s something you don’t see every day.

And there is more…

Stories from leaders, experiences shared by practitioners. That’s all that we currently need on our agile journey as a society. Agile is not anymore a different project management method. For long ago it left the basement where the IT department was closed. It’s changing the way how organizations operate, and how they do their business. The topics of Agile Organization, Agile Leadership, Agile HR, Agile Finance, and Business Agility are everywhere. There are schools applying agile values and principles, there are governments changing their way of working. Agile is everywhere. The new generation is different, they don’t want to be told what to do, they are asking for higher flexibility and autonomy, they require freedom to choose from where they are going to work and how they deliver the value. Some organizations already figured it out and started accommodating the change. Others are picking up. “The intention of business agility is to create an organization best able to serve its customer, no matter what the future brings.” That last part – no matter what the future brings – is in my mind the most important. Imagine an organization that is flexible and fast responsive, so it is ready for any situation. What else could you wish for succeeding in the VUCA world, right?

Subscribe for Emergence Journal and get a 10% discount using “agileprague” promo code.

Top 10 Agile conferences to attend in 2021

Every year I speak at many conferences and based on my experience I recommend some places to go for inspiration. 2020 was a weird year with almost every conference canceled or transferred to virtual space and there is a risk 2021 might be the same. But no matter if you are virtual or not, we still need to get some inspiration and interaction from similarly minded people. So here is my list of Top 10 Agile conferences to attend in 2021. It’s not my intention to cover them all, I’m sharing places where I like to return. Inspiring places with interaction, high energy, and great speakers.

Agile 100 is one of the most interesting virtual events bringing a series of talks from agile space focusing on a mix of innovations, products, teams, organizations, and culture topics. It’s a monthly event combining 30 min talks and 20min interview with the speakers. Even if you can’t join all the events in a series, join at least a few at agile100.com. The 2021 series starts on Friday, Feb 12, 2021
Business Agility Institute organizes several high-quality content conferences every year focusing on stories from executives, thought leaders, and practitioners on their agile journey. TED-style talks are followed by facilitated deep-dive conversations where participants can digest the experience and learn from each other. This year I would recommend you to join the virtual Business Agility Global Summit on Mar, 22-26, 2021.
ICR Agile is a great event organized by the local Iowa community, I really loved the first year, so I recommend you to join the second year of ICR Agile Conference (Cedar Rapids, IA, USA) on February 25, 2021
LeSS Conference is this time planned in Prague (nice city 🙂 ) and the organizers are still hoping they can organize this gathering of LeSS practitioners face-to-face. Reserve 16-17 September 2021 for LeSS in Prague.
Another tip is a 12-hour virtual conference with active networking, great vibes, small groups, and international Agile leaders talks called Beyond Agile Israel on January 31, 2021.
XPDays Benelux has a date for 25-26th November 2021, Parc Alvisse in Luxembourg. Let’s see if they are able to organize this highly collaborative event. Don’t expect any talks, this conference is more about workshops and interaction.
Agile Coaching Retreat is not a typical conference, but it’s a great place to network and get inspiration from other agile coaches and practitioners. The 2021 Agile Coaching Retreat is planned for Lisbon/Sintra, Portugal on June 17-19,2021.
AgileTestingDays is another great event happening for many years in Potsdam, Germany. Join Europe’s greaTEST Agile Testing Festival on Nov 15-18, 2021. There are always great speakers and a friendly atmosphere.
Agile Manifesto 20th Anniversary is calling all agilists to celebrate the 20th Anniversary of the Agile Manifesto streaming live from Snowbird, Utah from the Aspen Room where it all happened. You can’t miss this event.
Finally, if you want to experience something different, join Regional Scrum Gathering Tokyo. It’s organized by an enthusiastic agile community in Japan. The purpose is to provide a “Ba” (place) where practitioners share ideas among Scrum practitioners having a great diversity. Regional Gatherings provides a unique experience and even if you don’t speak Japanese, there are some talks in English and other translated. Join the local community on January 6-8, 2021.

The selection is based on my personal preference and experiences from those events.

Other conferences to consider this year:

Regional Scrum Gathering Belgrade 2021, 7-8 October 2021, Belgrade, Serbia.

There are many great events that didn’t make it to this list, so please share your suggestions with us and we add them to the following list.