The Culture of Agility

© 2011 Trail Ridge Consulting, LLC

Pete BehrensLeadership Agility CoachEmail [email protected] @petebehrens

The Culture of Agility

Understanding why some companies succeed through sustained agility while others flounder following initial success

Wednesday, August 17, 2011

mailto:[email protected]

mailto:[email protected]


93%of what you’ve learned

at Agile 2011will fail to stick

in your organization*

* without a supportive agile culture




What is culture?

Why is culture important?

A Language for culture

Culture and Agility

4 Keys to an Agile Culture

@petebehrens



What isCulture ?

What we do to succeed



INTP

There are many culture success modelsjust as there are many successful personalities

Culture is to an organization As personality is to a person




What is culture?



Culture and Agility


@petebehrens


© 2011 Trail Ridge Consulting, LLC Years

Agility

0 1 2 3 4 5

Learning Agility

Training & Coaching

Internal Learning

Sustainability

While many organizations adopt agile, and those that bring in outside aid do so much faster than others, few are able to sustain their agile transformation - this is the focus of the presentation



Agile is a Strategy

Not the Goal!



Product Agility

What is Agility?

Organizational Agility

Cultural Agility



Culture

Structure

Process WhatHow

WhoWhere

Why

Behaviors

Roles, TeamsResponsibilities

ValuesBeliefs

What is Agility?



Culture

Structure

Process WhatHow

WhoWhere

Why

Behaviors


ValuesBeliefs

What is Agility?

93% of th

e

sess

ions at

Agile 20

11



Culture

Structure

Process WhatHow

WhoWhere

Why

Behaviors


ValuesBeliefs

What is Agility?Im

pact

s



Steve Denning @ Agile 2011

Shift from Value

to Values



Culture

Structure

Process WhatHow

WhoWhere

Why

Behaviors


ValuesBeliefs

What is Agility?Im

pact

sFocu

s




What is culture?



Culture and Agility


@petebehrens



A language for Culture

William Schneider, The Reengineering Alternative



Socialization base in military organizationsStructured hierarchically, focused functionally

Control Culture



Leaders exercise “role” powerFollow chain of commandCommand respect and complianceDelegation is tight, clear

“Authoritative”

Control Culture



"Everyone at P&G is like a hand in a bucket of water, when the hand is removed, the water closes in and there is no trace."

The system is more important than peopleInformation is guarded with care and flows down/up

“System”

Control Culture



"We are the biggest SOP company in the business.”

Policy and procedure are extremely importantDecision making is methodical and systematic

“Process”

Control Culture



Socialization base in the family or athletic teamStrong focus on people and interactions

Success through building and developing teams

Collaboration Culture



1982 each employee gave $1,000 to buy a $30M Boeing 767

1973 during energy crisis they had a no layoff policyThey shifted to other jobs, cleaning, selling tickets, etc.

Personal sacrifice for the organizationCamaraderie, shared celebrations, shared wealth

Individual identity tied to organizational identity

“We”




"The only difference between us and our competitors is our people, our engineers are more creative, our people

are more productive, we are going to beat them."

Relationship power is keyPeople stick with the organization a long time

“People over

Process”




"When decisions have to get made, we get everyones opinion."

Their CEO, a 32 year veteran with the company,still eats with packers, and junior managers

Success comes through synergy from working togetherThey hire a wide variety of people with versatility

“2+2 = 5”




Socialization base in the universityStrong focus on expertise and knowledge

Value competition against a standard of excellence

Competence Culture



Seymour Cray "was obsessed by a vision of technological achievement, scientific purity, and quality"

Focus on new products, services, markets, businessesIdeas and concepts ultimately motivate people

“Visionary”

Competence Culture



Giant research lab in electrical engineering, chemistry, biology, computer science, and physics with over 26,000 patents

Success by having the best product, technology or servicePursuit of excellence, ingenuity and creativity

“Excellence”

Competence Culture



"One of the things that characterizes Microsoft is insecurity. People never believe that they've got the best product.

It's always the fear that somebody is going to come up with a better product."

There is always more to doConsiderable pressure to move ahead

“Never Satisfied”

Competence Culture



Culture of superstars

Do whatever it takes to winRelationships are often competitive

The better you can be, the more you will be rewarded

“Up or Out”

Competence Culture



Socialization base in religious institutionsStrong focus on growth and faith

System of beliefs to accomplish goalsMake progress towards a higher order

Cultivation Culture



Make the world a better place, nurture people’s bodies, and uplift their souls.

Expanders and enlargers of their people and organizationEnvision possibilities - get people on a common vision

Pursuit of possibility - people possibility, uplifting

“Purposeful”

Cultivation Culture



Four acre company gardenSocial responsibility

Plant seeds and trusts nature to take its courseInformation is free-flowing, little is kept secret

Climate is relaxed, spirited and energetic

“Organic”

Cultivation Culture



“Never kill an idea, deflect it”“Biological Structure”

Encourage free flow of ideasPeople empowered to think independently

Advocate discovery, experimentation and fresh ideasThe organization is in motion a great deal

“Creative”

Cultivation Culture



Personal-Impersonal CulturesPe

rsonal

CUL

TIV

ATIO

NCOLL

ABO

RAT

ION • People driven

• Organic

• Dynamic

• Participative

• Subjective

• Informal

• Open-ended

• Emotional

Imperso

nal

COMPE

TENC

ECONT

ROL

• Detached

• Systems, policies and procedures

• Scientific

• Objective

• Formal

• Emotionless

• Prescriptive



Actuality-Possibility Cultures

Actuality

Imperso

nalPe

rsonal

COMPE

TENC

ECONT

ROL

CUL

TIV

ATIO

NCOLL

ABO

RAT

ION

• Concrete, tangible reality, facts• What has occurred and is occurring now• Actual experience and occurrence• What can be seen, heard, touched, measured• Practicality, utility

Possibility

• Insights and imagined alternatives• What might occur in the future• Ideals, beliefs, aspirations, inspirations• Novelty, innovations, and creative options• Theoretical concepts or frameworks



Core Culture Overview

Actuality

Possibility

Imperso

nalPe

rsonal




What is culture?



Culture and Agility


@petebehrens



Reading Charts and Graphs

Blue = Control Culture

Many of the subsequent slides will display information in color without coding what the color indicates. Just as the introduction of the culture language, each core culture is represented by its color.

Yellow = Collaboration Culture

Red = Competence Culture

Green = Cultivation Culture

The information presented in the subsequent slides is from real companies who have transitioned and are in various stages of sustainability of agility.

The following case studies were chosen as examples of various cultures and how understanding their culture impacted their agile adoption and sustainability.

Data was obtained through surveying the organizations.



Retail Control Culture

Control

Collaboration

Competence

Cultivation

10 15 20 25 30 35

Percent Response

This is control culture signature of a large retail IT organization with a centralized functional hierarchy. While there are many nuances to their agile adoption, in general they have been on the road for 2 years.




1. The people with the most power and influence in the organization:21 a. Are charismatic, can inspire others, and are good at motivating

others to develop their potential.53 b. Have the title and position that gives them the right and authority

to exercise power and influence.21 c. Are both contributors and team players, who are an essential

part of the team. People like working with them. 5 d. Are experts or specialists, who have the most knowledge about

something important.

ControlCollaboration

CompetenceCultivation 21

521

53

An example survey question and answers used to measure culture. Leaders in control cultures tend to drive through title and position.




2. Which of the following best describes the primary way decisions are made in the organization?

3 a. We pay close attention to our concepts and standards. We emphasize the fit between our theoretical goals and the extent to which we achieve them. Our decision-making process centers on how systematically our conceptual goals are achieved.

5 b. We pay close attention to our values. We emphasize the fit between our values and how close we are to realizing them. Our decision-making process centers on the congruence between our values or purposes and what we have put into practice.

89 c. We emphasize what the organization needs. Our decision-making process centers on the objectives of the organization and on what we need from each function within the organization.

3 d. We emphasize tapping into the experiences of one another. Our decision-making process centers on fully using our collective experiences and pushing for consensus.



33

89

Control cultures tend to have a functional focus on the current needs.




3. What do we pay attention to primarily in our organization and how do we make decisions?

37 a. We pay attention to what might be and we decide by relying on objective and detached analysis.

13 b. We pay attention to what is and we decide by relaying on what evolves from within the hearts and minds of our people.

18 c. We pay attention to what might be and we decide by relaying on what evolves from within the hearts and minds of our people.

32 d. We pay attention to what is and we decide by relying on objective and detached analysis.



3713

32

Not all responses will be focused in one culture - This indicates a very impersonal culture.




5. What counts most in the organization is:26 a. Winning. Being recognized as the best competitor around. 3 b. Not losing. Keeping what we've got.63 c. Evolving. Realizing greater potential. Fulfilling commitments. 8 d. Accomplishing it together. Being able to say "we did it together".



268

3

Not all responses indicate a control culture as this response indicates a cultivative response.



Agility

0 1 2 3 4 5

Retail Control Culture Adoption

Due to the control culture structure and size of the organization, agile adoption is more challenging and takes longer as the traditional structures are deconstructed in favor of more agile structures



Product Cultivative Culture

Control

Collaboration

Competence

Cultivation

10 15 20 25 30 35

Percent Response

This is a cultivative culture signature of a small product development organization.




6. Which phrase best describes our organization? 80 a. "We believe in what we are doing, we make a commitment, and

we realize unlimited potential."10 b. "We are the best at what we do." 0 c. "We are the biggest at what we do."10 d. "United we stand, divided we fall."



1010

0

Cultivative cultures look forward and look for growth in people through mission




7. What counts most in the organization is: 0 a. Security.20 b. Community.20 c. Merit.60 d. Fulfillment.



2020

0

This company shows a strong commitment to people and their beliefs



Agility

0 1 2 3 4 5

Cultivative Culture Path

Due to the smaller size and agile culture alignment, adoption was natural and fast. Added agile structures to focus on discipline of agility.

Org growth75 -> 150!

9 people at Agile 2011!



McKinsey IT (presenting @Agile2011)

Control

Collaboration

Competence

Cultivation

10 20 30 40 50 60

Percent Response

Many successful agile companies exhibit cultivative cultural behaviors - as seen by those presenting at the conference.



From Team to “WOW” Team

1. BACK TO THE BASICS

2. NO IDEA IS TOO SILLY

3. START SMALL

4. MAKE EVERYTHING FUN

This represents a summary of McKinsey IT Agile 2011 Presentation



Agility

0 1 2 3 4 5

McKinsey IT Agile Path

Due to the smaller size and agile culture alignment, adoption was natural and fast. Added agile structures to focus on discipline of agility. Even as they reach plateaus, their culture helps them move beyond them.



Barbara Fredrickson @ Agile 2011

Positive emotions expand awareness

which enable agility



Omnyx (GE Healthcare) (presenting @Agile2011)

Control

Collaboration

Competence

Cultivation

10 15 20 25 30 35

Percent Response

Another cultivative (and well balanced) organization presenting at Agile 2011



Organizational Heartbeat

From the Omnyx presentation, you can see they focus on culture as much as they focus on agility because they see them as co-dependent.



Agility

0 1 2 3 4 5

Omnyx Agile Path

Starting with a greenfield organization, in the medical field, Omnyx created a culture of agility from the outset and have continued strengthening it for 3 years



Salesforce R&D Competence Culture (presenting @ Agile 2011)

Control

Collaboration

Competence

Cultivation

10 15 20 25 30 35

Percent Response

Not all successful agile companies are cultivative. Salesforce.com, one of the most documented successful agile organizations sports a competence-based culture.



SaaS R&D Competence Culture

8. Which of the following best describes how you feel about working in your organization:

7 a. This is a caring and "spirited" place. I feel supported.24 b. People are able to count on one another. 2 c. Things are no nonsense and restrained.66 d. Things are rather intense. I feel like I have to be on my toes all

the time.



6624

2

Competence cultures tend to drive their people and have higher intensity




9. Which of the following best describes our organization's primary approach in dealing with customers?

14 a. Partnership. We team up with our customers. We want to be able to say "We did it together".

19 b. We emphasize uplifting and enriching our customers. We concentrate on realizing the possibilities and potential of our customers more fully.

12 c. We emphasize gaining the greatest market share that we can get. We would like to be the only game in town for our customers.

54 d. We emphasize offering superior value to our customers. We try to provide state-of-the-art goods or services to our customers.



5414

12

Competence cultures tend to drive their products as hard as their people. Nothing is good enough, there is always better.



Agility

0 1 2 3 4 5


“All In” approach in R&D with training/coaching help brought early success. Continued expanding through IT, Tech Ops, Marketing over next 4 years.Agile structures have guided its continued growth.

250 in R&D

> 1,000 in R&D, IT, Ops, Mktg



Salesforce.com:A Financial Perspective

Salesforce.com’s financial performance has paralleled their agility as compared to Apple, one of the top performing companies in the past decade.



SaaS IT Culture (same company)

Control

Collaboration

Competence

Cultivation

10 15 20 25 30 35

Percent Response

Company cultures are not singular. In this case, Salesforce.com IT organization exhibits a cultivative culture.



SaaS Acquisition (same company)

Control

Collaboration

Competence

Cultivation

10 15 20 25 30 35

Percent Response

Again, through acquisition, yet another sub-culture is brought into the mixture.



Sub-Cultures

Control

Collaboration

Competence

Cultivation

10 15 20 25 30 35

Percent Response

ITR&DAcquisition

Working across differing sub-cultures can be very challenging and is what causes failure within organizations and mergers.



Cultural Discovery

R&D Acquisition

In this case, a leadership summit focused on culture began to expose the organization to this language and their culture. It aided in their shared understanding of different sub-cultures.



Cultural Visioning

During the summit, cross-departmental teams envisioned new cultures based on what they had learned - these examples illustrate a desire to take the strengths across all cultures to drive a new future combined culture.




What is culture?



Culture and Agility


@petebehrens



Agility

0 1 2 3 4 5

What makes the difference?

Why?



1. Start with Awareness

Visualize the Organizational Culture



2. Focus on Leadership

Leadership Culture

Leadership drives culturein new organizations

Culture drives leadership in matured organizations



Expert

Achiever

Catalyst


Leadership Agility

Catalyst-level leadership is required to foster and support organizational agility and an agile culture, especially when a corporate culture exhibits behaviors which inhibit agility.



3. Change the Structures

This is an organizational sociogram highlighting the communication structures across roles in an organization.

It, along with other structural tools, can aid in understanding how the structures are enabling or hindering agility.




Fewer Roles

IncreasesCommunication

Source: 2004 Patterns of Effective Organizations by Neil Harrison

Serving as one example, reducing roles within an organization can increase communication and collaboration - keys to agility.




Org Review Cycle

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Sprint Cycle

Program Review Cycle

Organizational Heartbeat

Serving as a second example, creating organizational shared learning and collaboration structures like this organizational heartbeat drive increased agility.



Day

MonthSprint

BacklogOrganizational

Change

Org

aniz

atio

nal

Bac

klog

Organizational Agility Team

Impediments, Challenges, Learning,Tools, Surveys, Feedback, Issues, etc.

Using Agile toBE(COME) Agile


Organizational Agility Team



4. Expect Constant Change

Agility is not a one-time event

it is a process of ongoing improvement

where change is not the exception

it is the norm

and creates an environment of insecurity in our organizations constantly




“Get Comfortable with being uncomfortable”Michael Meissner, Omnyx @ Agile 2011




1. Start with Awareness





Business

The Culture of Agility