Agile HR: Shape the Culture

I already wrote here that during the agile journey, the Agile HR changes the entire focus from being compliant driven to focus on overall employee experience. Agile HR is about leadership, system coaching, and large groups facilitation. And there is another layer. Agile HR should shape the culture. Yes, that’s right. There is an interesting framework of Competing Values which is in a very simple way describing culture as a tension between control and creative quadrants and competing and collaborative quadrants. The traditional organizations were grounded in the control and competition hemisphere, having the fixed processes, hierarchy and competition at the both individual and organizational level, while the agile organizations are more leaning towards the collaboration and creativity hemisphere changing the focus from individuals to the teams and networks, having higher level of autonomy and empowerment, forming partnerships instead of fighting with competitors.

As organizations continue on their agile journey, the culture is shifting and sooner or later the practices need to follow. For example, having a very hierarchical narrow position structure becomes an obstacle of a higher level of collaboration and self-organization. The silos are in the way of the cross-functional teams so the first step is to get rid of traditional positions i.e. Developer, Analyst, Tester and create a team member position as in the cross-functional team that’s all we need. The steep carrier path gets in the way of collaboration from the other side so organizations usually descale and become (more) flat as they rely more on intrinsic over extrinsic motivation. Speaking about motivation, how many of you are motivated by performance review and KPIs? None? That’s right. So what’s the other option? When we remove the individual goals and KPIs together with the performance review, how can we assure people get actionable feedback? So instead of artificial annual performance conversation, we invest into creating a learning environment where people learn from failures, get frequent peer feedback and mentoring from their colleagues so they can co-create their journey and grow as individuals and teams together. It’s not that much about any magical practices, but more about coaching and facilitation skills – that’s where ScrumMasters could be quite helpful. And I guess I can continue.

And keep in mind, it’s not about practices, processes, and tools, those can only support or make your journey harder. It’s about having a strong sense of purpose, common values, and joined identity. Once you have it, the practices will follow in a very natural way. So where to start? Think about your organization, where your culture is right now, and then think about where you need to be to keep up with nowadays business challenges and stay competitive. Only then, you are ready to assess individual practices. Are they supporting that shift? Are they indifferent? Or are they in the way of the desired culture shift?

Agile HR: Recruiting

The more organizations shift to Agile, the more they need to redesign how they work with the employees. During this series, we focus on different functions of HR in Agile organization and explain the fundamental shift HR need to do in order to support agility in the organization. 

Knowledge and skills are not anymore the key factors of what are we looking for. Agile organization builds on top of the collaboration, encourage innovations and need high flexibility. Experiences are also applicable only to a certain extent. It’s more about having an open mind, being able to learn new things, and collaborate with others to deal with complexity and unpredictability then being an expert with deep but narrow specialization. If you don’t think so, have a look at your own career. How many of you are still having in the same specialization? Most of the people changed their career more than once. And it’s getting even faster. So would you still care about hiring experts with particular specialization? Not really as they create silos and prevent your organization from changing a direction of the business. Agile organization needs people who are ready to learn, inspect and adapt. People who are not afraid to take over responsibility and run experiments. People who are not stuck with one way of working often saying “we always did it this way” and are ready to change their way of work as the business needs it. 

Skills are easier to be learned then mindset.

If you think about it, it’s very hard to create a traditional job description based on skills, and experiences as those are soon to be irrelevant. The new advertisement for an open position can say instead:

“We are looking for an enthusiastic, flexible, and open-minded person, who is ready to take over responsibility and collaborate with others on achieving the value. We are a team-oriented organization with a flat structure, which will support you in your personal growth. Join our team for a day to experience our culture. Together we can [achieve the vision].”

Quite different, right? When we tried it, no recruiting company was ready to support our needs. How many years of Java experience they need? What is the position description you are hiring for? No matter if you were looking for developers or new CEO… Quite a mismatch. Eventually, we realized that hiring new graduates is easiest for us. They were flexible, had ideas and be ready to be learned. All we had to do was to create a team learning environment based on pair and team working where they can get things fast. We realize that learning is easier than unlearning old habits, so very often, to get fresh graduates up to the speed was easier then hire Sr. Employees with individualistic habits which were creating more harm than help for the team environment. And that’s a hard message for all people who believe experience years count and shall result in a higher salary. Maybe if you are working for the government, but in Agile space, not necessarily as the recruiters may not care about your traditional company experience years at all. 

Unfortunately, a similar experience was with executive search companies, no matter how ‘big name’ of recruiting company you choose. They often had no idea about what agile is, so they are not helpful assessing the candidates, nor finding relevant people either. If you are looking for a leader with an Agile mindset, they are hard to find. Most of the executives are having bad habits acting as directive managers from hierarchical traditional organizations and again, it’s easier to grow leaders from your organization then hire externally. 

So if we can’t measure experience and skills and count working years, how shall we find out if the person is the right match? The same as in every other relationship. Let’s start ‘dating’. In this case, it’s about meeting team members at the interview. To be able to talk about the usual day, see if candidates feel attracted and also talk about candidates dreams and visions, to see if there is a match. Once they pass, they can go with the team to lunch. Informal conversation is critically important to learn about each other. And finally, it’s a good practice to offer a candidate one day at the company. To try and feel how it’s gonna look like. 

Hiring is more about creating relationship then assessing skills

If you feel uncomfortable with having interviews just like that, and feel a need for more formal assessment, you can try to role play some situations. Again, it’s not about correct answers as there are no correct answers in the complex world, but seeing the behavior and reaction when the candidate is surprised. Those situations are great to know how the candidates react when things go unpredictably. Again, it’s more about personality, approach, and mindset then skills and knowledge. 

That’s it. Forget experiences which are mostly irrelevant and skills which are soon to become irrelevant and focus on the relationship and employee experience. That’s the only way how you can be successful in finding the right employees and truly supporting the culture of the organization. 

Agile HR

Agile HR or if you want Talent Management as it is called nowadays turn the whole company around. It’s employees centric, delivering value to the whole organization. At a glance, not much had changed. We still need to hire people, take care of people growth, do some evaluations. Just the way we work changed significantly. So let’s go one by one to see the shift.

Hiring

Hiring process focuses not that much on skills, because skills could be learned, and will change depending on the business value priorities, and the team needs, but a person who is a good match to the company culture and the team. In an Agile organization people who can learn fast, are the starts. They can go to any cross-functional team and deliver value. We look for someone who has not a fixed mindset, is ready to change. Having said so, people are often not hired by HR and managers but the teams and the HR are only consulting and coaching teams in that process. The world of the fixed positions is over. All the recruiting agencies need to adapt as well. When we’ve been hiring, we involve team members and give them a strong voice in the process. We stopped looking for C++, Java, or C# experts, we were looking for passionate people who have energy, passionate about anything they did. We want to hear stories about what they love to do. Even if it was just a tiny thing they did over the evenings. We were transparent on how the work is going to look like, stressing the downsides, so they have clear expectations. Transparency is the key, so one of the great ideas is to invite candidates to join a team for a day. It’s like going to the date, getting to know each other better, get a sense on both sides how is it going to be.

One example of a very different interview is to ask the candidate to use a creative set of Lego bricks and visualize how it’s going to be once they joined the organization and have a conversation about the model. It’s something you rarely see in the interviews but it shows a lot about the candidates.

Evaluations

Evaluations and performance reviews changed significantly in Agile space. It’s less about reviewing, performance, and evaluation, more about development and vision of the future and growth. As the Agile organization operates internally in very short cycles, where through radical transparency and instant feedback through retrospectives the organization gets to inspect and adapt and solve any issues right away, we don’t really need classical KPIs as they are not supporting the adaptivity and flexibility Agile organizations need and missing a team aspect as well. As a first step, you can start with setting team goals, instead of individual ones. It will help. However, eventually, you need to redesign the whole concept from the scratch. The key focus is on coaching conversations, transparency, and candid feedback from your peers.

One example of a radical change you can use is the team-oriented feedback. You give each person on a team or organization (yes, it scales) a certain amount of money to give away. Let say $100, and ask them to distribute it to the colleagues. The only rule is you can’t keep it. If you think about it, the message you got by receiving $0 it’s much stronger feedback then anything your manager can ever  say about your performance. Indeed, we need a lot of coaching to help people understand and handle what’s going on, but in general, that’s a good thing. If you scale this to the whole organization it’s even more fun, as the managers get such instant feedback as well as the employees.

Talent management

As I mentioned at the beginning of this article we are speaking more about talent development then HR. What motivates people? How do we grow talents? How do we support them on their journey? How can we help them to be successful? The answer is coaching, support them to create their own development goals, grow their interest, empower them, raise their awareness about themselves. Not surprising, but how many HR are taking such a support role and how many of the companies take it as process and governance role.

Example of such coaching conversation for the people growth could be using a few categories which are strategic for the organization right now to frame the conversation. Firstly, you need to make people aware of how the coaching scale works, that it’s very different from evaluation, it doesn’t have to grow quarter to quarter and that there is always a better way of doing things, and that this tool shall help them to identify their potential and find ways how they can grow to support the organization. As a next step, you let people rate themselves on a relative scale 1..10, where 1 = not good at this area, and 10  = I’m great at this. They need to be able to compare themselves with the other people around in the organization, explain how it would be, when you are 2 points above the level you are currently, what would be different once you get there, what would it mean to the organization, what is currently in their way, etc. All of those are good coaching questions. No magic. It just works like a magic 🙂