Agile Board of Directors

Are you also wondering why you shall be Agile and your board of directors and the executive team is not? I wrote about Agile at the executive team last time, now it’s time to have a look at the board of directors.

There is no real reason why the board of directors should not act as an Agile team. Just the habit as most of the directors of the board are coming from the traditional companies and had never experienced it. The governance is important, but the usual committee structure presenting a report to the board each quarter doesn’t help them to react to challenges. I did this presentation at several different organizations, and I thought it might be useful to summarize the key points here as well.

Let’s start with an overview of what any Agile entity needs: Have Agile values of transparency, trust, respect, collaboration, and a shared understanding of a purpose so people are having the same goals. Simply be a great team, not just a group of individuals. But applying radical transparency, get feedback and collaborate is often very hard at this level. Not that it would not be useful, but it’s not going to be easy. Secondly, the board must be consistent with the organization. If Agile stops at the board level, it creates a gap within the organization and governance inconsistency and the whole organization will struggle. Finally, Agile boards are not just governance bodies, Agile boards of directors create a purpose-driven organizations, the sense of belonging which skyrockets organizations success. Having said so, it’s critical that Agile boards collaborate on the key strategic initiatives with the rest of the organization, which if you think about it is very far from filtering anything in and out of the board through the CEO. There are three principles of the Agile board of directors:

#1 Team over individuals and hierarchy

While traditional organizations are formed by stable departments and individuals, Agile organizations form communities build around the purpose. Internally there is usually a quite liquid structure to keep adaptivity and strategy focus in the nowadays complex world. It embraces the team as the key building unit and forms a collaborative network of teams. Similarly, the board of directors is a team which has one goal, even if internally there is a structure of the committees, each committee is a collaborative team as well where all the committee chairs and the board chair are acting more like facilitators then managers of the group. The board as a team is just a small part of the whole picture. We use the ‘team in the team’ concept in Scrum having a Development team being part of the Scrum team, being part of the product team once you scale, and such product teams being part of the entire organization which acts as a team or collaborative network if you wish, where all those pieces only stay together with a strong purpose which creates a common goal for everyone. The same way the board shall form a collaborative team with CEO, the BoD together with the CEO shall form a team structure with management and eventually the entire organization. Too much hierarchy kills the collaborative mindset and a team spirit. There is always going to be some hierarchy in the organization, but maybe the way of work may not be driven by the hierarchy – but the purpose, collaboration, having the radical transparency as a pre-requisite.

#2 Flexibility over fixed plans and budgets

The more are we responsive to changes through the collaboration, the higher need for adaptiveness is in the organization. Agile organizations are moving from year fixed budgets into the Beyond Budgeting principles. Valuing the purpose driven continuous planning over annual top-down fixed goals and plans.  You will see more voluntary based virtual teams over fixed departments or speaking about the board the committees. People are groping around the common cause instead of the fixed plan while the planning is a continuous inclusive process instead of a top-down annual event. Anyone shall be invited to join when they have something to add to the purpose of the event. Keep it transparent, inclusive, open. All that is an iterative process with regular feedback and an opportunity to inspect and adapt.

#3 Strategy over operational

The good board shall be focused 80% on strategy and significant business issues, 20% reporting. Nothing new, right? It’s the same old 80/20 rule which we often used in the Agile product ownership, organization in general or economy. The Agile boards are going through significant shift refocusing into strategic over operational. Don’t take me wrong, the governance is important. The same as the importance of the processes in the Agile Manifesto: “While there is value in the items on the right, we value the items on the left more”. The same applies here. Reporting is part of the transparency. It shall almost not be even needed if the transparency is there as everyone can just see it. The board doesn’t have to meet to get a status. They shall meet to discuss, understand each other, have creative conversations, visionary sessions, give feedback. The boards shall meet frequently every 1-2 months (that’s their Sprint time), and focus on a communication and work between meetings. There is no need for reporting, all the documents shall be visible so you save a meeting for conversations about the direction. Similarly to the product environment, the shorter Sprints ends up with better understanding, feedback, and higher delivered value.

Finally, keep in mind that the less fixed is the structure and the plan, there is a higher need for a good facilitation, as without it you might end up in the chaos.

Five books every Agile leader should read before they start Agile transformation

To continue my with my book recommendations (check Five books every ScrumMaster should read and Five books every Product Owner should read), I have several books here, I would recommend every Agile Leader and manager in Agile Organization to read before they start Agile transformation. It’s a mix which will help you to understand Agile Leadership, Agile Organization, it’s structure, design, and culture and allow you to adapt to the different leadership style. Enjoy reading 🙂

  1. Niels Pflaeging – Organize for Complexity: How to Get Life Back Into Work to Build the High-Performance Organization is about complexity and work – and about how to deal productively with both. A condensed introduction to the theory and practice of organizational high performance. A manifesto for contemporary leadership and profound transformation in organizations of all kinds. It is “practically theoretic”, featuring cutting-edge insight. It proposes new language and thinking for a new way of work and organizations.
  2. Frederic Laloux – Reinventing Organizations is a must. The way we manage organizations seems increasingly out of date. Survey after survey shows that a majority of employees feel disengaged from their companies. The epidemic of organizational disillusionment goes way beyond Corporate America-teachers, doctors, and nurses are leaving their professions in record numbers because the way we run schools and hospitals kills their vocation. Government agencies and nonprofits have a noble purpose, but working for these entities often feels soulless and lifeless just the same. All these organizations suffer from power games played at the top and powerlessness at lower levels, from infighting and bureaucracy, from endless meetings and a seemingly never-ending succession of change and cost-cutting programs.
  3. Large-Scale Scrum: More with LeSS is looking at the organizational design from a different perspective. Rather than asking, “How can we do agile at scale in our big complex organization?” a different and deeper question is, “How can we have the same simple structure that Scrum offers for the organization, and be agile at scale rather than do agile?” This profound insight is at the heart of LeSS. In Large-Scale Scrum: More with LeSS, Craig Larman and Bas Vodde have distilled over a decade of experience in large-scale LeSS adoptions towards a simpler organization that delivers more flexibility with less complexity, more value with less waste, and more purpose with less prescription.
  4. The Responsibility Process: Unlocking Your Natural Ability to Live and Lead with Power is about FREEDOM, POWER, and CHOICE. Leadership is innate. The Responsibility Process proves it. The Responsibility Process is a natural mental pattern that helps you process thoughts about taking or avoiding responsibility. How you navigate it determines whether you are leading toward meaningful results or just marking time. This book gives you precision tools, practices, and leadership truths to navigate The Responsibility Process and lead yourself and others to freedom, power, and choice.
  5. Leadership and Self Deceptions shows how most personal and organizational problems are the result of a little-known problem called self-deception. Through an entertaining and highly instructive story, Leadership and Self-Deception shows what self-deception is, how people get trapped in it, how it undermines personal achievement and organizational performance, and- most importantly the surprising way to solve it.

Difference between manager and leader

Leader and manager, what is the difference? Is there any? People are often mixing these terms up so let’s make it more clear.

Leader- LeaderFirstly, managers shall be leaders. That’s where the confusion is most likely coming from. But leaders are not just managers, leader is not a position, anyone can be a leader. In an Agile organization where hierarchy is becoming less important, we take more focus on leadership than management. There is no authority given to a leader. They gain it by their actions and behaviors and by their service to the people around them. Leaders could be anywhere in your organization and their power grows by respect of others. Managers, on the other hand, are often associated with decision making, and certain power which must be given to them.

Leaders are key to any Agile organization. The more leadership is in the organization, the more likely the mindset will change and the Agile transformation will become successful.

“Leaders need to change first. The organization will follow. “

Don’t wait for anyone, you are the leader you can change today. Agile is not about practices, rules, or processes. Agile is about the different way of thinking, different way of approaching things, different mindset. And it’s all in your hands. You are the leader.

What is Agile Leadership

What is agile leadership about? How would you define it, how would you explain it? Those are just a few questions people are asking these days.

Agile leaders are able to inspire others, creates and communicate an appealing vision or a higher purpose which motivates organization and would constantly be looking for better ways of working through feedback. It’s about being inclusive, support others on their leadership journey. Being open to new ideas, experiments and innovations. Support creativity. Be able to garden the right mindset and creates cultures based on collaboration. Agile leader is a coach and good listener.

Agile leadership is not about tools, practices or methodologies. It’s an ability to look at the organization from the system perspective, understand system dynamics, be able to get awareness about what’s happening, embrace it, understand it and become an integral part of the system and finally be able to act upon and influence it with coaching, and initiate a change.

Agile Leadership Model

New management paradigm is about collaboration and trust, decentralization, continuous adaptation and flexibility, cooperation and teamwork. From the static management in the industrial era, we shifted to strategic management in last twenty years of the last century and moved quickly into the dynamic management which tries to keep up the speed with modern constantly changing, complex world. That’s the world which critically needs agile leadership as anything else is not flexible enough to deal with nowadays challenges. Companies need more creativity, collaboration, and innovations – simply agility. That’s the way how to be successful. That’s the way how to achieve their goals. That’s the way how to survive and don’t become new dinosaurs who are so huge, slow and inflexible that they eventually disappear from the world.

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.

ShuThe ‘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.

HaThe ‘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.

RiFinally, 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 OrganisationAgile 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.

Agile Leaders are the beginning of modern management

In order to achieve success at the organizational level, we need to start management talent development program to create leaders who will help to grow a company, make quick decisions and stay ahead of others. Modern leadership style is no longer applying the traditional model of the “leader-follower”, i.e. one decides and the other executes orders. Nowadays, when most employees are from the category of creative workers and the company is looking for innovation and creative ideas to stay competitive, the leader-leader model is a more effective one, where the leaders’ main goal is to help others to be successful leaders. What is modern Agile management or Agile leadership about?

Excellent Agile Leader has four core competencies: Ability to define the vision, motivate, gain feedback, and ability to influence through themselves, others and system.

The ability to formulate a vision is the engine of change and motivation. A vision is not necessarily linked to product and business but should be focused on the organization and its purpose. The second competency is the ability to motivate and give the energy. It is a competence closely related to the vision. If you have a good vision, it motivates itself. Agile leadership builds on so-called internal motivation to strengthen the autonomy of individuals and teams. The third of Agile leader’s competences is feedback. Feedback is DNA component for Agile Organization together with openness and transparency. The art of getting system-level feedback is critical for the leader. The last is the art of influencing complex environments. Change things, people and their behavior, support and consolidate culture. Agile leadership begins with a change of self, your judgments, values, and behavior, style of work. Great leaders start with themselves as a role model, to change the way they show up, how they interact with others, and how they can inspire people around them to collaborate, create a team spirit, and become leaders. They are capable of working with the entire system and influence the whole organization and its culture.

Agile Leader-Wheel

Agile Leader Wheel also defines four supporting competencies to help leaders define the right approach. When is it better to decide and when decisions can be delegated and it’s better to collaborate. At the same time, when it’s better to take a role of facilitator and when start coaching. We do not talk that much about coaching individuals, which of course may be useful, but coaching the whole system – teams and organizations as a whole. Excellent Agile Leaders have not been born as Agile Leaders, but they are constantly looking for new ways to get better and to gain and strengthen the above-mentioned competencies.

Agile Leader Competence Map

The more the Agile Leadership is popular, people are asking for more description. Who is the Agile Leader, what makes him different from a traditional manager, and which competences and skills they have to have. So I created this Agile Leader Wheel so you can map the competences and skills.

Great Agile Leaders have four core competences in which they can create vision, enhance motivation, get feedback, and implement change. Vision is the driving engine. It’s not necessarily related to the product and business but the organization itself. The second segment is motivation. Agile Leaders understand the nature of motivation, are familiar with the power of intrinsic motivation of autonomy and purpose. The third one from the top section of Agile Leader Wheel is feedback. For Agile Organizations feedback is crucial, it makes the team and product feedback part of their DNA, it becomes integral part of their culture. The same for Agile Leaders, the regular feedback from the system is the key to their success. The last piece is ability to implement change. For Agile Leaders the change is happening at three levels. Firstly there is change of myself, my own beliefs, reactions, the way I work. Secondly there is the ability to influence others. Make them part of my team, get supports who will help me to lead the change. Finally the third element of change is change at the system level, the whole organization level.

Agile Leader Wheel

In addition to the mentioned competences, Agile leaders will need to balance the time when they need to take a decision and when it’s better to delegate and empower others to take decision and responsibility for that. Finally on the right side Agile Leaders are facilitators and coaches. We are not speaking here about one-one coaching. Great Agile Leaders use coaching as a spice to address the complexity at the system level, and coach organization as whole. Great Agile Leaders are not born this way but constantly develop those competences and skills. This concept is part of my Agile Leadership program where I help leaders to understand complexity of nowadays organizations and be successful in their roles. Looking forward to see you at some of my Agile Leadership workshops.

Agile Culture

Culture is intangible. It’s hard to touch. Hard to define, hard to measure. However, it is the critical piece for the organizational success. We may debate if culture follows an organizational structure or vice versa, but I don’t think it is important. Culture reflects our values and philosophy. The way we are. Being Agile is about changing mindset. If enough people change their mindset, the culture changes and they become Agile Organization. Simple if you say it this way, but hard to do.

I’ve been looking for a good definition of culture for years. I surprisingly find it at CAL (Certified Agile Leadership) training which I attend from Michael Sahota in California. I very much like his way of describing culture, and I used it as an inspiration for my drawing.

Agile CultureThe culture consists of two parts. The mindset and structure. I’ve always seen the mindset as the most important part of culture, a driving force. Something which can change the structure part if done well. To my belief structure is always preventing us from change, from being successful. So shall we change the structure or mindset?  I would always go for the mindset. It’s harder, but it brings significantly better results. Create a clear goal. Purpose. Something which makes to you stand up every morning and put energy into it. Something you truly believe in and are willing to take ownership and responsibility for. Something which makes you collaborate with others, something which makes your day. When you succeed with the mindset, you are usually ready to change the structure. So I truly believe that structure follows mindset. Which is good, because as the first step you can start with changing yourself. 🙂

Leadership – Myself Dimension – #ScrumMasterWay concept

Let’s continue with the last element of ‘Myself’ dimension. As we already said in the previous blog posts, each element of this dimension is represented by a dice which you can roll every day of Sprint and choose the aspect you are going to take. The fourth dice stands for leadership. If you want to transform the organization, your leadership style shall change first. In this element, we talk about being a servant leader, creating the culture, feedback, motivation, collaboration, and leader-leader style.

Servant Leader

ScrumMaster is a leadership role. One of the aims of ScrumMaster is to make others work better, they are servant leaders. They can heal relationships, create communities, listen to others, have empathy, and think beyond day-to-day tasks and short-term goals. Only when you become servant leader you can be the great ScrumMaster.

We Culture

Agile needs the right culture. It’s all about us, how we work as a team. Be collaborative, support each other, take over responsibility and ownership for the team. ScrumMasters shall be using their leadership skills to create such culture because without it Agile and Scrum can never be successful.

Feedback

Give and receive feedback is critical for every leader. It’s important prerequisite to inspect and adapt. ScrumMasters shall be actively searching for feedback and find creative ways to allow people to learn from it.

Motivation

Part of the motivation is coming from the environment and culture. ScrumMasters support intrinsic motivation factors as they are aligned with their goal to create a self-organized team. Motivate through an understanding of the purpose and clear goals, safe to fail learning environment, and open and transparent culture.

Collaboration

Collaboration is written in the Scrum DNA. Scrum is all about teams and collaboration. There is no individual work important in real Scrum, no individual goals. We do our best to achieve the goal – deliver value to the customer.

Leader-leader

The leader-leader model helps you to change the traditional leadership style of leader–follower where people are expected to follow orders into the leader-leader concept of servant leadership where leaders are here to help the other people to grow and become leaders themselves.