Trading One Silo for Another

I think we have silo busting all wrong. Well… partially wrong. I recall a story about a university campus. When buildings were put up on campus, there was a deliberate choice to not build any sidewalks or walk paths. Students, staff and faculty moved freely from building to building and over time, paths were worn into the ground where people had walked. The worn paths were the natural walking routes between buildings. Sidewalks were built on the beaten paths.

The usual approach to sidewalks and walk paths is to make straight lines, usually perpendicular or parallel to buildings. They look nice, neat and organized. But they are often not the way people choose to walk from point A to point B. Traditional organization design creates a neat, easy to understand model of how things should work. When it doesn’t work, we re-organize in the hope we are busting a silo. What happens instead is that we create a new silo. Silos are impossible to avoid. We trade one for another.

If instead, we could focus on the paths, we might have a chance of finding something better. In large knowledge-worker enterprises, the flow of information is the real organization. The rules and policies and containers we build are often not respected when something just has to get done. We use our network of trusted colleagues who have access to the right levers and information. When designing an organization, think about the flow of information. Go out into the organization and look for the beaten information paths. Find the “natural networks”, the ones that actually get things done and reinforce them. The challenge is to reinforce them without inhibiting natural change, or without constraining them.

Cultural Architecture

Last week I had the opportunity to present at Agile2011, which was attended by 1604 registered participants and over 250 talks. The conference was a wonderful opportunity to connect with old friends and make new ones.

The talk, titled Cultural Architecture was about how culture influences the way we work and interact differently depending on our cultural biases, rules and filters. Each culture presents unique challenges, and as change leaders, coaches, and practitioners, we have a responsibility to educate ourselves on how cultures influence what people do, why they do it, and how. As teams become increasingly cross-cultural and global, cultural knowledge becomes more important than ever.

What does it mean to have a 100% Agile organization?

This is a question that comes up from time to time and to me, it’s like asking; “What does it mean to be 100% Chinese, Indian,  German or Italian?”

If we have everyone doing Scrum, does that mean we are 100% Agile? That’s like asking, “If I listen to Italian music, eat Italian food, drink Italian wine, and live in Italy, does this make me Italian?” Maybe it does…maybe it doesn’t! If you  have read about my talk at Agile-2011 know where I am going with this. Being 100% Agile to some extent means we cannot explain why we are Agile, we simply are. Why am I Italian? I just am.

I come from a Punjabi culture. While  preparing my talk for Agile-2011, I asked my sister why we value respect and deference to our elders. Her comeback was “The culture of guilt and shame.” We laughed. She reminded me of how if we failed to accord the appropriate respect to our elders, which included our parents’ best friends, we were taken aside and admonished with, “Aren’t you ashamed of yourself? Go say sorry to your Auntie!” Mom and Dad never explained WHY we should feel ashamed, only that we should…
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Leadership and Process Principles for Agile Finance

I’ve been reading “Implementing Beyond Budgeting” by Bjarte Bogsnes. Finance is sometimes a neglected area in terms of Agile Transformation and Bogsnes’s book offers rock-solid advice. The first element is the set of leadership and process principles.There are 6 of each:

Leadership:

  1. Customers. Focus everyone on improving customer outcomes, not on hierarchical relationships.
  2. Organization. Organize as a network of lean, accountable teams, not around centralized functions.
  3. Responsibility. Enable everyone to act and think like a leader, not merely follow the plan.
  4. Autonomy. Give teams the freedom and capability to act; do not micromanage them.
  5. Values. Govern through a few clear values, goals, and boundaries, not detailed rules and budgets.

Process:

  1. Goals. Set relative goals for continuous improvement; do not negotiate fixed performance contracts.
  2. Rewards. Reward shared success based on relative performance, not in meeting fixed targets.
  3. Planning. Make planning a continuous and inclusive process, not a top-down annual event.
  4. Controls. Base controls on relative indicators and trends, not on variances against the plan.
  5. Resources. Make resources available as needed, not through annual budget allocations.
  6. Coordination. Coordinate interactions dynamically, not through annual planning cycles.

These are difficult principles to live by without trust, transparency and simplicity in your organization. Adopting these principles takes time and effort, and a rather gargantuan mind shift. Eventually you’d want them all, but if you had to start somewhere, which principles would start acting on tomorrow?

Can we apply Pareto to the budgeting process, focusing on the top 20% of financial decisions and issues aligned with the Product Backlog?

Decisions on what to STOP doing are as important as the decision on what to START doing. Are you making the hard calls? Can you apply Pareto to both decision types? What will we fund? What will we kill?

More to follow on this topic in a future post.

The Colors of Change – Tools for Change Management

Leading change requires change agents to exercise influence. Understanding individual motivations and assumptions matters. People come in different colors. Understanding each color and the motivations and assumptions that drive each one can help you get into the shoes of others, and consequently, help you understand how to best help them embrace change. There are five colors. There is no bad color or good color. Each color brings a different perspective, thinking style, and work style to the table.

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Speaking @ Agile 2011 – Salt Lake City, August 8-12 2011

I’ll be presenting “Cultural Architecture” at the Agile2011 Conference in Salt Lake City this August. Here’s an overview of the talk.

If our business culture was a product, how would we re-architect it? Culture influences everything. So how can we influence culture? What tools help us understand cultural influences, from the implicit, the elements we don’t even think about, to the visible, the artifacts that lead to stereotypes? Adopting an Agile culture, when it is under-laid with the cultures of the world is challenging. Reconciling cultural dilemmas drives collaboration and innovation. Culture is the core of it all. Knowing this, you can create a pull for cultural change in your organization.

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Sources of Complacency

Leading change without a Sense of Urgency… is it possible? John p. Kotter lists 9 sources of complacency. They are:

  1. The absence of a major and visible crisis.
  2. Too many visible resources.
  3. Low overall performance standards.
  4. Organizational structures that focus employees on narrow functional goals.
  5. Internal measurement systems that focus on the wrong performance indexes.
  6. A lack of sufficient performance feedback from external sources.
  7. A kill-the-messenger-of-bad-news, low candor, low confrontation culture.
  8. Human nature, with its capacity for denial, especially if people are already busy or stressed.
  9. Too much happy talk from senior management.

So now what? Kotter recommends BOLD action. He suggests:

  1. Link 50% of top executives’ pay to significant quality improvements.
  2. Find ways to get all the external customer complaints in front of everyone every week.
  3. Sell the jet and corporate headquarters and move into a building that looks more like a battle command center.
  4. Set an objective to become #1 or #2 or we are forced to liquidate and shut our doors in 2 years.
  5. Set your business targets so high they cannot be met doing business as usual.
  6. Stop measuring sub-unit performance and narrow functional goals.
  7. Use consultants to help force the honest conversations that need to happen.
  8. Use company newsletters/communication to provide not only good news, but business reality.
  9. Bombard people with information on these future opportunities for capitalizing on these opportunities, and on the organization’s inability to do so.

Over-managed and under-led cultures fail to do this according to Kotter.

The Longitude Problem

Expert entrainment is both good and bad depending on the domain in which it is applied. Dave Snowden‘s video explains why. Not only is this instructive, it is humorous. The main points I took away were:

  1. Despite having a plausible theory and good empirical proof, uptake of a new idea is not a slam-dunk. External pressure is needed to to drive change in many instances.
  2. Mental filters cloud our thinking. Adapting one set of mental tools to solve a problem in another domain can fail when you are operating the complex domain.
  3. And finally, the Welsh discovered America.

Leading change effectively means dealing with expert entrainment by adding competing perspectives. Enjoy…

The Trajectory of Change

Last Thursday I had the opportunity to share some thoughts on leading change at AgileTourRTP. The presentation is now available on SlideShare here. You can view it right here also.

Change is an emotional journey, for the change agent, as well as the colleagues you lead through change. Understanding the emotional arcs or trajectories that you will personally experience, as well as the emotions of others provides you with tools to lead change more effectively. The presentation has three parts:

  • Context – the business in which I work and the challenges of Wireless Telecom.
  • Experiences with Change – what I have personally witnessed as a change agent in our business, going from traditional to Agile.
  • The change models that can help you understand what to expect in terms of both emotions, action and performance.

There is also a caution here. Emotional responses can be unexpected. Being open and aware and not relying on cookie-cutter change formulas gives you a better chance of success. Given that two-thirds of all change initiatives fail to deliver on their promise, it is wise to carefully observe how emotion is playing out in your context, on an individual as well as organizational level.

Change only occurs when individuals see the value of it, can visualize a better future, and can see a personal cost/benefit trade-off that makes the journey worthwhile. Resistance to change is human nature. Change violates the equilibrium and status quo. Individuals and organizations are invested both financially and emotionally in the status quo. It provides a sense of identity and belonging. Influencing people to “leave home” and venture into the unknown requires care, a support system, and compassion. The journey is difficult and loaded with unseen obstacles.

The key to successful change lies in creating conditions where emotions are tied to focus, thus creating engagement. Ask yourself:

  • How do I personally feel about change?
  • Can my colleagues articulate the vision in their own language, in their own personal context?
  • Is the value of change clear and does it feel within reach?
  • Am I using more than rational explanations to describe the future? Am I tapping into how the new world will feel?
  • Have I created a support system that my colleagues can leverage to air their concerns and issues in an open and safe environment?
  • Am I championing those who take the leap?
  • Am I helping those who fail to try again, with compassion?
  • Am I providing “air cover” for those that venture out into the unknown?
  • Am I filtering the noise and turbulence so people can focus?

Change is hard. Think about the rational argument of more exercise and better eating habits to lose weight. We know it’s the best way to shed unwanted pounds. But without focus, emotional engagement, and a support system, change can fail.

Adapt or Die – US Military develops Agile Leaders

I read a very interesting paper on why the traditional Command and Control, plan up-front approach steeped in military history must change.

“Operating within an uncertain, unpredictable environment, the Army must be prepared to sustain operations during a period of persistent conflict—a blurring of familiar distinctions between war and peace.” This is a protracted war against adversaries employing irregular, unconventional, and asymmetrical means. The implications of this new context are clear: “Adapt or Die.”

The landscape of warfare has changed. More uncertainty, hidden enemies, and unpredictability. Training leaders to respond in this context requires a different approach.

The Army’s Training and Leader Development Panel (ATLDP) Officer Study concluded that, because of the ambiguous nature of the future operating environment, leaders should focus on developing the “enduring competencies,” or what they call metacompetencies, of self-awareness and adaptability. They recognized that the two were symbiotic; one without the other is useless. These metacompetencies are the essential building blocks of learning. Agility embodies this symbiotic relationship between self-awareness and adaptability. In this paper, agility is a metaphor for self-awareness and adaptability in action, the essence of learning.

Adapting fast requires changes in doctrine and the evolution of rapid organizational learning.

The process of rapid, effective organizational learning is the essence of organizational agility.

Senior leaders have the authority and resources to drive this change into their organizations, be they military organizations, or otherwise. The organization’s culture must be tuned to allow Agility to take hold. Differences between British and American military culture is telling.

Culture is unique; it is the organization’s personality based on its own set of experiences. Nagl’s study, as well as others that he cites, show the differences between the American and British military cultures and the impact on their ability to innovate during conflict. His conclusion is that differences in organizational culture allowed the British military to adapt and learn during its irregular warfare experience of counterinsurgency in Malaya, while the U.S. Army’s culture prevented it from learning during its similar experiences in Vietnam. Culture, an organization’s conventional wisdom about its essence, is a powerful lens that organizations use in interpreting their experiences and determining how or what to learn from these experiences.

The change in mindset required is the adoption of the “culture of innovation”

The training approach recommended in this paper is a move away from the traditional master-apprentice approach to that of co-learner and facilitator. I’ll close with this quote from the paper which says it all.

Rather than operating in a paradigm that perceives certain determinable linear cause-and-effect relationships, students will operate in a context that sees holistic, open, dynamic, emergent, complexly organized, rationalistic relationships that are too complex to be absolutely known. Applying knowledge and skill sets in this complex and ambiguous environment, dealing with the unexpected, operating with incomplete information, and making calculated decisions of risk all increase individual agility.

You can find the paper here.

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