Building the Agile Enterprise

Board Room Finance & Portfolio Mgmt HR Marketing & Sales Product Management Design Development Testing Operations Canteen Reception DevCo Agile DevCo Finance Board Room HR Business Unit 1 Business Unit 2 Business Unit 3 Business Unit 5 Canteen Reception Building the Agile Enterprise ScrumCenter GmbH Operations Business Unit 4 Agile Enterprise Transition Teams formed for projects and then dissolved - forming and re-forming Handovers between departments Relearning necessary because teams are temporary Specialists recruited - impossible resource planning due to complex environment Focus on technical skills rather than creating a balanced team Incentives are normally contingent (doesn't work!) Typically annual cycle Transaction costs high Takes too long and costs too much to prioritise the portfolio and approve budgets Missed opportunities Focus on heavy weight quantitative and qualitative data Out of date by the time it is available and feedback received too late Based on assumptions which are a form of “inventory” waste until they are validated Missed opportunities Business units with self-organising, cross-functional teams Management/leadership style changes from command and control to servant leadership Product development and customer development Scrum teams in parallel Iterative, empirical approach to validating assumptions and testing in market as quickly as possible Customer Development Lean Startup Communities of Practice provide alignment and learning across teams (intra and inter-BU) Self-organisation at the team overarching level Intrinsic motivation: Autonomy, Mastery, Purpose (Dan Pink) From specialists to generalizing specialists Job descriptions for the Scrum roles so that people have a career perspective Low transaction costs Prioritise projects/products often and little Make decisions quickly Rolling budgets Improve customer outcomes Network of accountable teams Everyone should act like a leader Empowered teams Govern though shared values Radical transparency Relative goals Inverted pyramid Servant leadership Gemba Respect for people as engine for continuous improvement Optimize the whole Big win due to less micro-management - more time for strategy Reward shared success based on relative targets Continuous, inclusive planning Relative indicators and trends rather than plan conformity Allocate resources as needed Coordinate interactively, not through annual planning Beyond Budgeting - Leadership Beyond Budgeting - Process Michel Löhr michel.loehr@scrumcenter.com Simon Roberts simon.roberts@scrumcenter.com CEO Managers Workers CEO Managers Workers