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Network Structure

It's very easy to become hierarchical and turn into a "bank" when company is growing fast. Is there a way to avoid that? How to keep the focus on value creation? What about Value departments, not Functional departments? Want to share some ideas...
by

Andrej Ruckij

on 5 December 2015

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Transcript of Network Structure



@ruckiand
www.agilemindstorm.com
Back to org. design

Questions?
Scrum
Everything started with
Scientific
management
1911
Mechanical
Engineer
Efficiency
It led to this...
Scientific
management
1. Replace rule-of-thumb
work methods with scientific ones
2. Scientifically select and develop employees
4. Detailed instructions
3. Divide work between
workers and managers
Thinking
was separated from
Doing
budgets
planning
hierarchy
control
command
strategy
do what you are told
implement
report bottom-up
follow instructions
no information
Why did it work in 1911?
Level of education
Lack of information
Low competition
No computers
Complicated projects
But wait, it's 2014 now!
Scientific Management
= Smoking
It's like bad habit
And it's difficult to quit
Is it still good?
For knowledge workers
Labs
Software companies
Startups
Creative agencies
NO!

90% of what we call management
consists of making it difficult for people to get work done
Peter Drucker. Management by Objectives
Douglas McGregor. Theory X and Theory Y
W. E. Deming. System of Profound Knowledge
94% of problems in business are system-driven
Create an environment where
employees are motivated
via self-control
Taiichi Ohno. Toyota Production System
We are reducing the time line by reducing the non-value adding wastes
Managers
Workers
It was
Revolutionary!
Interesting Links
http://www.slideshare.net/npflaeging
http://en.wikipedia.org/wiki/Frederick_Winslow_Taylor
http://en.wikipedia.org/wiki/Peter_Drucker
http://en.wikipedia.org/wiki/Douglas_McGregor
http://en.wikipedia.org/wiki/W._Edwards_Deming
http://en.wikipedia.org/wiki/Taiichi_Ohno
Monopolies
Org. design
Niels Plaeging. Organize for complexity
Most orgs. are designed to produce
fear, not value creation
Let's take
an old-school project!
Project manager
Waterfall
1. Analysts
2. Dev
3. QA
Everyone is
busy
but still produce
crap
SCRUM TO THE RESCUE!
Cross functional teams
Value is delivered incrementally
Team is formed around value creation
It works!
Teams are protected
and served by Scrum Masters
Function, not value
"Function" drives actions
IT buys HW in batches to be effective
Feature teams feel the pain
- plan early
- buy just in case
Feeling of getting slower
HR, Marketing, Billing, ...
ALTERNATIVES?
Value network structure
POD framework
Types of a POD
some ideas...
Structure
POD Sponsor/Angel
POD Leader
POD keeper/developer
Knows what and why to do
Knows how to how to organize work in the best way
Key principles
Clear internal or external clients
Clearly identified services or product
<= 35 size multi-skilled team
Entrepreneurial leader
Can use external services: outsource, tools, ...
Transparent metrics
# of users
Services costs
Revenue
Investments made
POD types
Feature
a.k.a. Startup?
Challenges
Hiring is even bigger pain
Change Mindset
Control
serve
Transparency
Describe framework
Principles
help, feedback, support...
product
development

Technical practices
Common goal
PODs
And there were lost of smart people since than...
1954
Decentralization and simplification
1960s
1951 in Japan
1993 in U.S.
1951 -
1975
1998 - ...
+ centralization
p.s. can you find a user?
POD structure
external role: POD sponsor/angel
POD developer/keeper
POD Lead
Feature
Platform
Service
Supports POD on a company level, helps to kick-off
client support, selling, marketing, ...
DMP, PPAS, HTML5 creative toolkit
Platform
serving engine, data storage, UX
Service
IT, Devops, Billing, Marketing, ...
governance, not business domain knowledge
unique, difficult to scale knowledge
features delivery, fastest pace
vs
Hints
Structure
Metrics
Setup PODs Core group
For now: Simonas, Mats, me
First Will experiment with
Values
Full transcript