business agility

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.

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.

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 virtual conferences to join in 2020

The world recently changed into a very unpredictable stage. No one expected it, no one was ready for it, and not many people like it either. However, every crisis is good for something, and this one brought new ways of doing things. While most of the traditional conferences from my recommendation from January are canceled or postponed, the new virtual events emerged from the crises and bring unique value in this difficult time. The first time ever there can be one event for everyone in any place in the world – no travel, no jetlag. If some talks are late at night or too early in the morning for you, don’t worry. There is going to be recording. And just be honest, how many of you attended all sessions at the face to face event? I didn’t. So there is no difference really 🙂

#1: Agile100

Agile100 is a series of virtual conferences that bring the world’s top 100 agile thinkers and speakers to everyone across the globe. Embracing the latest technology, the conference is not only streaming talks from great speakers but creates connections, allows participants to meet and learn from each other, offer parallel ad-hoc open-space sessions, learn from experienced Certified Agile Coaches, and much more. People with access to knowledge and information can tackle any challenge and make our world more productive, more humane, and more sustainable.

LEARN – CONNECT – GET INSPIRED

The first few dates in the 2020 series are May 29, June 26, and July 31 – 12pm – 10pm (CET – Central European Time) / 6am – 4pm (ET – Eastern Time).

#2: Emerging from the crisis

Business Agility Institute is known for the top-quality conferences across the globe. Their last face to face event in the NYC had to turn half into virtual to accommodate people with travel restriction and they did amazing job allowing online participants to join and collaborate in facilitated deep dives the same way as the face to face attendees could. The current crisis will leave an indelible mark on the world of business. What will be the impact on Leadership, HR, Strategy, Finance & Risk Management? And what role does business agility play in emerging from this crisis? This conference is not about what we need to do now to survive the crisis or adapt to remote work; we’re aiming higher. We want to learn what we need to do today in order to thrive tomorrow. Join Emerging from crisis virtual conference to be inspired through 20-minute talks and discover practical next steps through facilitated dialog with your peers, get inspiration from invited leaders and strategists who walked through crises and have come out the other side with lessons learned and best practices.

LEARN FROM THE PAST TO THRIVE IN THE FUTURE

June 17th – 19th, 2020 – two options to choose:

Option 1: 11am – 1:30pm (US Eastern Time) / 5pm – 7:30pm (CET – Central European Time)
Option 1: 6:00 pm – 8:30 pm (US Eastern Time) / 8am – 10:30am (Sydney time)

#3: LeSS Day Europe

LeSS Day Europe virtual conference takes upon a mission of bringing to you fresh, impressive and up-to-date case studies of Large-Scale Scrum (LeSS) adoptions by means of story-telling and rich knowledge exchange. Get inspired by the most recent and most insightful case studies involving hundreds of people transformation in different industries. As usually, this conference is worth joining.

LEARN FROM PROVEN CASE-STUDIES AND FIRST-HAND STORIES OF DEEP AGILE TRANSFORMATIONS

June 15 – 17, 2020 – 3pm – 7pm (CET – Central European Time) / 10am – 14pm (US Eastern Time)

5 Reasons Why to Attend AgilePrague Conference 2019

#1: World-class Program

Several years in a row we managed to achieve high-quality program while keeping it affordable to the people in the Czech Republic. This year you can be looking forward to awesome speakers, for example, Samantha Laing, Pete Behrens, Heidi Helfand, Stephen Parry, and Marsha Shenk. Register soon, the conference is always sold out.

#2: Agile Journey Focus

The theme of this year is the Agile Journey. Agile is more than an IT process. We are going to talk about Agile transformations, leadership, scaling, the new ways of running your products and businesses, collaborative culture and great teams. See the program.

#3: Coaches Clinic

You can discuss any area you are interested in and get free help from experienced coaches at our Coaches Clinic. It is a unique and free service designed to help you with specific challenges you’ve encountered on your way to a more Agile way of working. The Coaches Clinic is prepared and organized by Certified Agile Coaches – Certified Team Coaches (CTC), Certified Enterprise Coaches (CEC), Certified Scrum Trainers (CST) and other experienced Agile coaches.

#4: Open Space

AgilePrague Conference is not just about listening. We want you to participate and come up with your own session. Every mid-day there is an open space where you have an opportunity to share ideas, discuss topics with each other and join a deep dive conversation with our speakers. Open space is an opportunity to create your own program and bring your own topics to the conference.

#5: Visit Prague

Prague is an awesome city, so why not combine the sightseeing & conference? Have a beer, wander through old town & narrow streets, enjoy one of the greatest historical cities 🙂

Looking forward to seeing you on Sep 16-17, 2019 at AgilePrague Conference!

5 reasons why to attend AgilePrague Conference 2018

#1: World-class Program
Several years in a row we managed to achieve high-quality program while keeping it affordable to the people in the Czech Republic. This year you can be looking forward to awesome speakers – for example: David Hussman, Roman Pichler, Evan Leybourn, Marsha Shenk, Yves Hanoulle and many more.

#2: Business Agility Focus
The theme for this year is Business Agility. Agile is more than an IT process. We are going to talk about Agile transformations, scaling, the new ways of running your products and businesses, Agile Leadership, collaborative culture and great teams.

#3: Coaches’ Clinic
You can discuss any area you are interested in and get free help from experienced coaches at our Coaches’ Clinic. It is a unique and free service designed to help you with specific challenges you’ve encountered on your way to a more Agile way of working.

#4: Open Space
AgilePrague Conference is not just about listening. We want you to participate and come up with your own session. Every mid-day there is an open space where you have an opportunity to share ideas, discuss topics with each other and join a deep dive conversation with our speakers. Open space is an opportunity to create your own program and bring your own topics to the conference.

#5: Visit Prague
Prague is an awesome city, so why not combine the sightseeing & conference? Have a beer, wonder though old town & narrow streets, enjoy one of the greatest historical cities 🙂

Looking forward to seeing you on Sep 10-11, 2018 at AgilePrague Conference! Register for Agile Prague 2018.

The hot topic of the next few years will be leadership

Modern world brings not only the different way of developing software called Agile but also changes in the organizational structure and leadership. You see it more and more often. People at the classes are asking why their managers are not there to hear the message. But very often they are, and they are ready to change the entire organization and their leadership style.

The ‘Shu’ level of Agile transformation is focused on practices and individuals or teams. How can we start? As a result, we create small isolated islands of Agility where we get to experience and learn more about what does it mean to be Agile. Sometimes companies are looking for shortcuts. But you can’t skip this level. It’s your foundation. If you make it solid, you are more likely going to be successful with Agile at the organizational level. At this level, you might see some improvements, but can’t achieve greater efficiency across the whole organization.

The ‘Ha’ level of Agile Transformation is when you start Scaling phase. This is where the Business Agility starts to take place. That’s where the different leadership starts to be critically needed as you have to grow the different structure and mindset. The key focus is shifting towards how to develop leaders and how senior employees are growing within a company. As the right culture is getting its place, people are coming with innovative creative ideas which can make a difference in the company results. This situation is currently the biggest challenge we are facing now as an industry and its topic of many discussions. Together with Scaling frameworks (like LeSS – Large Scale Scrum) which address the organizational design, we talk about different Agile management practices, Agile HR, Agile in marketing, Agile in finance. Companies that understand this can create an environment that is more efficient, productive, and more successful than anything we have ever achieved with classical management methods.

Finally, the ‘Ri’ level of Agile transformation starts when the Business Agility is the normal way you operate your business. We have individual Agile leaders in the organization, and people take over initiatives. This is a time for another organizational shift. At this stage, we have a true Agile executive team, focusing on long-term strategy and Agile Board of Directors focusing on the purpose and vision both working as teams collaborating together. Both truly living Agile values.

Emerging Trends in Agile

The world is changing in cycles, fashion goes in cycles, and the same is true for Agile. What was trendy yesterday, is not today and it can change surprisingly fast 🙂 So let’s have a look what are the new trends in Agile and what the Agile community is talking about:

Agile Leadership and Agile Organization

Agile is not just a set of practices how to write a good software, but it’s more and more used in every part of the organization. The traditional leadership (leader-follower model) is no longer acceptable in Agile environments. In the previous years, almost everybody focused on teams and how to adopt Agile, Scrum, and Kanban to the teams. But if we want to be successful at the organizational level, this is not enough. We need to push boundaries and help the whole organization to change. Hand in hand with that, we need to grow Agile leaders and support Agile leadership which is the critical key to the organizational success with Agile.

Agile out of IT

As it was already mentioned, for real success, it’s important to change the whole organization into Agile. The common practice is to change IT department and leave it as isolated island inside the traditional organization. But this is just the beginning. The company has to follow the same culture and the same style of the working, so you hear more and more about Agile in HR and talent management, Agile finances, Agile marketing etc.

Business Agility

Finally, there is a term of Business Agility which brings back the real value of Agile. Agile was never meant to be development process of your IT. It was supposed to be business value driven. It should bring the startup mindset back to the organizations, and look at the delivery from a business perspective. Prioritize, deliver value in short cycles, get feedback, measure impact. This is the real Agile mindset.

If you are in Agile or do you plan to try and implement it focus on these topics because without it Agile become only an empty skeleton of practices and processes. Agile is organizational change, it changes the mindset, culture, leadership, and business focus. If you take it as such change, you are going to be successful with Agile.