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.
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 and Scrum transformation is not any easy and it takes time. For a big organization, such time can easily be counted in years. During those years you would be dealing with so-called undone organization. Scrum itself only knows three roles – ScrumMaster, Product Owner, and Development Team. That’s all we need to deliver value to the customer. The other roles are ultimately not needed.
However, at the beginning of our journey, the undone organization might be bigger than the Scrum part of our organization. As our Definition of Done is extending, the teams are getting more and more cross-functional, we are able to embrace those people and make them part of the team. The more the team extends its cross-functionality, the closer we get to the production quality and real-time feedback.
For example Architect and UX people are often at the beginning of the Scrum journey outside of the team but as the team is getting better and learn, teams are able to take it over and make it part of the Definition of Done and separate Architect and UX roles disappear and people move into teams. At first, it sounds unrealistic but in some time this is exactly what needs to happen in order to optimize for fast value delivery and feedback.
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.
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.
Most of the people, when you ask them, admit that KPIs are not any useful at their organizations. They don’t motivate, they don’t change people’s behavior to any better way. In the best case KPIs are usually a formal metric, in the worst case a way how to punish people. In modern organizations, which are built on top of collaboration and teams, the need for individual metrics disappeared. So what can you do instead?
If you have a bit of courage, you may try this: ask all team members to distribute for example 100$. They can give it to any team member, but can’t keep it for themselves. In a very short time, you get a very honest feedback. If you ask people to give Kudos or appreciations together with that, it’s awesome. Problem of bonus distribution solved. There are companies which distribute the bonuses not only within one team, but across the whole organization. To the receptionist, CEO, sales, developer. Your choice. We make it very transparent, so the system will correct any weird behavior as exchanging bonus money within two people. In general this is more theoretical question. I haven’t seen it happen but it comes out anytime we talk about it with managers. I guess it indicates lack of trust.
Another way how to do it when your organization is more Agile is to give every month people some money to their bonus account, you can keep them of give some to the others. Each month the random person from your company rolls a dice and if there is a six, the money is yours and we start to build another jackpot. When it’s any other number, they just continue in moving money as appreciation. As no one knows when the money is going to be paid, they don’t game it.
Finally, I have to admit that I don’t believe in any money bonuses. They are not going to help with real motivation and the risk of side effect is higher than possible outcome. So I would kill not only individual KPIs but bonuses as well. You can achieve better motivation by giving people autonomy, responsibility and clear purpose. And you can help them grow with coaching. It takes more time and energy then do KPIs and bonuses, but it brings higher results.
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.
The 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. 🙂
The world dimension of #ScrumMasterWay concept represents three levels ScrumMasters shall operate. The third element is called Entire System. Though the time and energy ScrumMasters spend on each level differ based on the team or organizational culture and maturity level, they have to be present at every level to keep an eye on changes. As organizations are complex systems, you can stay here forever. There is always some change which needs your attention, there is always a better way how we can do things, there is always a better way of work.
Level 3: Entire System
At this level, ScrumMasters shall look at the organization as a system, from ten thousand feet distance. Searching for organizational improvements. They shall become servant leaders, helping others to become leaders, grow communities, and heal relationships. Bring the Agile values to the organizational level. Address the system in its whole complexity and make it a self-organized network of great teams. At this stage, you can see your organization as a living organism. This living organism has one goal of which no one has doubts. This system takes experiments and learns from failures. The safety, transparency, and trust are deep in the system DNA. The culture value collaboration and trust which gives us an opportunity to come up with more innovative and creative ideas then hierarchical traditional structures.
You might feel you are done, you made it. Please celebrate, it’s a huge achievement. And then let me remind you, there is no end of your journey. The goal is to achieve the right mindset of inspect and adapt every day. Being Agile is the star on the horizon, you can never touch it, but in short iterations, you can get closer. That’s what Agile is all about.
If you are struggling about how to create such Agile organization and how to work at this Entire System level of #ScrumMasterWay concept, join my Certified Agile Leadership class (CAL) which we now offer as the only ones in the Czech Republic and Slovakia.
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.
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.
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.
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.
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 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.
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.
As one of the CSTs – Certified Scrum Trainers – I’ve got a unique opportunity to travel around the world during the last two years and teach Scrum at a variety of businesses, organizational environments, and very different cultures. I must admit that Scrum is awesome as it is universal. You can apply it to software, hardware, marketing, HR, executive teams and be rapidly successful, significantly better, change the way of work and become the best of the greatest. The flip side of the coin is, that despite the easy way how Scrum is defined, there are still companies, teams and individuals completely failing to understand what Scrum is and therefore failing to implement it.
I draw this picture to illustrate that becoming Scrum is a journey. You can’t just do Scrum, you have to embrace it. You have to become Scrum yourself first. It’s often not that straightforward as we’ve been got used to the traditional processes throughout the history, but at the same time, this is the very best strength of Scrum. Once you master it, it becomes the part of your life. It’s not just a process, it is a way of living.
First, let me say explicitly that “Technical Scrum” is not Scrum. It only pretends to be Scrum. It’s a camouflage. However, it might be the necessary first step in certain organizations to move to the real Scrum. How do you recognize Technical Scrum? People “do” Scrum. They are looking for ways how to remain the same as they used to be. They are eager to get checklists of practices which need to be done, in order to do proper Scrum. Therefore Technical Scrum is all about estimations techniques, burn-downs, measuring velocity. The very important metric would be individual utilization, so they usually insist on time task estimates, capacity calculations, and time-sheets to be filled. They have identified new roles, but in reality, they just renamed the traditional roles and didn’t change the behavior. Scrum meetings are usually long and felt redundant. Managers use Scrum to micromanage. The overall team focus is on “how”. The team is not any team but a group of individuals working on similar items. The individual accountability matters. They are looking how to split responsibilities instead of how to collaborate to achieve the goal. Product Backlog is usually a to-do list where most things have to be done.
In the real Scrum, your team understands the mindset and they are “living” Scrum. They take it as the way how to focus on customers, how to innovate, how to collaborate. The estimates, efficiency, and utilization become quite unimportant, as they focus on delivering value to the customer and overall long term results. The first step here is usually “Team Scrum” where the development team becomes a real self-organized and cross-functional team which works together. The team creation process produces a huge trust internally among the team members but also externally to the organization. It’s the first tiny ‘snowball’ which afterward starts the whole transformation and creates forces to change how we run our business and how the organization itself is structured.
The “Organizational Scrum” builds on top of the values we experienced at team level – openness, transparency, and trust which leads the organization to be more business driven, flexible, and open to innovations. The business slowly starts to be picking up and the organization has to follow the rest. At this time, the snowball is big enough to attract the rest of the organization. At that time, you are truly Agile.
Such transformation can take years. It’s not uncommon that companies are falling back and restarting the whole initiative again. It’s hard. To succeed you need a good reason for change and courage. Eventually, every company has to change as the word is getting more complex and fast. The same way as industry revolution changed the way we were hundred years ago, the complexity of our current life is changing us now. To succeed in a long term, we have to be more flexible and dynamic – more Agile.
As the world is getting more complex, organizations has to change to keep competitive. They must become more flexible, team oriented, self-organized. And as a consequence, the leaders shall adopt another approach to motivate people and lead the organizations to keep up the speed. Agile Leadership concept was created to help the leaders to understand the nature of the change which is happening in the business right now, and be able to react to the challenges which modern organizations brought in its all complexity. Agile Leadership concept is not about how to implement Agile, Scrum, Kanban, Extreme Programming, or Lean. You have people in your organization who can do that. The Leadership model is here for leaders, managers, directors, entrepreneurs, and owners to help them to sustain the change and be able to create Agile organization or become effective in it.
Organization is a complex system by itself as it deals with people and their behavior. There is no clear link between cause and effect. It’s a network of interdependent elements. It’s not predictable so the traditional approaches which expect predictability and consistency fail. It all worked until about 1970 as the world had been only complicated at that time. Nonetheless, a lot changed from that time. Globalization and Internet allows businesses to grow fast so the density of nowadays businesses is so huge and communication so fast that they involve each other all the time and cause doesn’t link to any predictable effect anymore.
The first step of the Agile Leadership model is “Get Awareness”. Awareness of the current reality, understanding of what’s happening around us, be mindful about the surrounding. Organization is a system which constantly sends signals. All we have to do is to be aware of them, notice them, and listen to them. The second step is “Embrace It”. It helps us to accept whatever is happening in the system without the urge to evaluate. Who knows what is good and what is bad. Our self-power is coming from our ability to gain enough clarity so it builds trust in the whole system. The third step is “Act Upon”. It uses the power gained in the previous step to influence things and change the system behavior.
To make it simple, in our Agile Leadership Program we guide you through those steps. Every change is difficult, and the change of ourselves is usually the toughest. However, the result will definitely pay off.
Organizations are constantly evolving. In the 1970’s the most common organizational structure was the pyramid structure. It was deep, hierarchical, and full of power. Companies got strong bosses who lead such structure. Internally their approach was full of command and control, bureaucracy, and standardization.
Those pyramid hierarchical structures were not wrong in any way. They were the perfect solution to world industrialization and to the dynamics of business at that time. Most of the companies followed the best practices for a simple world, where problems can be classified as obvious, and applied a simple structure to address it. And it worked. Bosses got results. Companies started growing and became more successful.
The most common management tool was a carrot and a stick, because organizations believed that their employees are lazy slackers who can’t work without it. Most of the people were in a mood of tribal leadership 2 where the motto is “my life sucks”. Complaining all the time. Not happy, not motivated. Their only motivation to do something was driven by getting some bonus – a carrot, or because they were forced to – a stick.
Twenty years later, Organization 2.0 was here addressing the difficulty of the business world focusing on specialization, processes, and structure. Companies realized that the world is not simple any more, and the majority of problems can be classified as complicated.
As a result, they adopted complicated processes, focused on deep analysis, and invested in experts.
The belief in Organization 2.0 is that complicated problems need experienced individuals and detailed analysis. As a result, companies invested in learning and specialization. They began to grow. The work which used to be done by one person, now needed specific and dedicated positions. We’ve got a specialized department to deal with java, database, testing, architecture, analysis, documentation, customers, accounts, plans, and chair purchases.
Organizations are trying to create a process to describe everything, to have every possibility thought over. Companies create career paths and talk about motivation. They have spent months describing KPIs, but the more processes and specializations they had, the less responsibility and goal driven individuals they had. They were starving. They tried to cut on expenses, but that did not bring any long term success either.
So they dream about the previous stage, where it was much easier to manage resources. At that time, managers had real power. They could make decisions. They could force people to work. They could use the carrot and the stick. It was so simple – no need for committees, no need to call a meeting for every single detail. At that time, allocation of individual resources did not cost most of their time.
The pressure on individuals to make themselves more successful, better, and smarter than others was huge. “What if my colleague is be better in the performance review?” “What if I am not promoted in two years?” It leads to a culture that emphasizes own goals over the organizational ones. Most of the managers and experts live in the third level of the tribal leadership model, where they believe that “I’m great, but you are not.” So they treat their employees and colleagues with little respect or trust. This leads to the leadership style of “leader-follower”, where the managers decide, and the people below them just do the job. No initiative is expected. People just follow the process and do what is ordered.
Nowadays, when the world is not complicated anymore, neither Organization 1.0 nor Organization 2.0 can address its full complexity. We have realized that such complexity needs a very different approach that can keep up with business dynamics. The Agile environment brings Organization, 3.0 which builds on teams instead of individuals, on different styles of leadership, and on intensive collaboration through the dynamic network structure. We need to completely change the leadership style, create partnerships, enforce self-organization, enforce real responsibility and ownership, enforce trust and transparency, and build the organization as a network structure which is flexible enough so that it can effectively respond to change. Decentralization is taking over, and is bringing a certain level of autonomy to self-organized systems.
Instead of being a huge tanker, you can imagine the Organization 3.0 as a flotilla of smaller boats, going into the same direction, living in the same context, having the same values, but making some decisions differently based on the situation.
The Organization 3.0 is a true Agile organization. In order to build it, you need to apply a different leadership style of “leader-leader”, which supports growth of people, instead of “leader-follower” which is so common in Organization 1.0 and Organization 2.0. Hand in hand with this new leadership style, you need to create a culture of tribal leadership “We are great!” where the focus is not on the individuals but on the systems and teams.
Organizations are complex, as they have to deal with people’s behavior. People are not predictable. Every time we tried to make them behave in a predictable way, we failed. A modern Agile organization is built from people. It is a collaborative, creative, and adaptive network. It’s a sphere built from autonomous systems which are connected to each other, so they influence themselves but still keep consistent. Such a change of mindset is a huge mental challenge for most organizations.
So how to start?
– Help all people to become better leaders by applying the “leader-leader” leadership style, and build a culture of tribal leadership: “We are great!”
– Decentralize, build networks and communities.
– Allow autonomy in a well-defined context.
– Read my book The Great ScrumMaster, which is a guidebook not only for ScrumMasters, but also for leaders of any organization who want to become an Organization 3.0.
You can see my talk Agile Organization – Organization 3.0 at AGILEEE Conference 2016: