Knowledge Bank
Knowledge Bank

Evaluate your Agility for Free

12.07.21 08:56 AM By Michael

A video from our Business Agility Foundations course (ICP-BAF) free for anyone to watch and the results allow you to understand why the values of business agility make sense and how you can objectively measure the starting point of your journey.

Kia Ora, i'm mike from Surge.Coach we partner with leaders to maximize your organization's potential we hope you've had a cracking year or as best you can under the circumstances in this video we're going to give away a free lesson from our business agility foundations course we are going to focus on the values of our business agility model and how that comes into the business agility radar so what is in this for you you will be able to understand what makes up the business julie radar and for what reason what problem is it actually solving you'll then be able to go to your organization and measure it yourself allowing you to have a high level current state analysis this current state analysis will allow you to set objectives outcomes and ways of measuring success towards business agility it'll also allow you not to waste time in areas that probably isn't the right focus and we'll get into that very shortly but first of all merry christmas from the surge family and we look forward for feedback on these videos if you want any different lessons if you want any other training online just let us know and we'll see what we can do awesome so let's crack into this

we know that the world has changed it's forever changing it's going through evolution and we know that the word volcker or vuca is said quite a lot and that's for good reason we are finding that the world is volatile i.e the speed and the rate of change is forever increasing we know that there are a lot of surprises that come up in the market code 19 was a surprise and we are most likely going to get more surprises so it's uncertain the future is uncertain

we are moving into a complex world it's multifaceted now what does this mean for organizations what it means is we're going to find more and more connections between other organizations and and industries they're going to that is going to make competitive advantage much more difficult in the future

ambiguity ideal versus actual it is getting to a point now where planning is getting too hard to actually even have any value minceberg in 1994 said that strategic planning is should be phased out it's still around and yet he predicted in 1994 this decline in a competitive advantage from strategic planning and we're seeing it every year getting less and less it's getting less and less

of an advantage to do right so how do we help and how do we move our organizations to deal with a vocal environment or a vulcan environment first of all we're going to have vision we're going to have a vision for the future that vision of the future is like a north star or a purpose or some form of

future state that is your current direction you're aiming towards we're going to understand that the world is going to change and there will be surprises and it's okay

we're gonna perform a we're gonna have frameworks and we're gonna have clarity around how complex the environment is and lastly we're going to have agility our delivery models are going to have are going to be flexible they're going to adapt to the environment and they're going to respond to customer demands so voca can be fixed with volca very simple right so let's go through the four different values that search has in its business agility model if we talk about strategic planning for a moment how does 36 month strategy plan sound can you imagine three years ago what your life was like is it different to today i bet it is it's almost guaranteed to be due just due to october 19 let alone due to uber disrupting the market and uber has tried many things uber's gone into couriers so when you think about uber couriers uh uber um uber itself taxi service uber eats they're just disrupting the market constantly and they're not the only ones we are gonna find many many startups that have a lower barrier entry to disrupt your industry incumbents will need to adapt variation is this really weird thing i always say that i've got a phone that i do not need but i seem to constantly be upgrading it my phone now has more technology than what landed us on the moon now when we think about that it means that the customer has more access to great variable products keep that in your mind and globalization now globalization people say started in the 70s it most it definitely did however what we found is that since 2010 it's become almost um a one-world system for global companies they are dominating and the barriers to entries to new companies trying to do similar things is is decreasing and what we're finding as well is that countries like new zealand and australia who were quite segmented from the global market are now becoming very involved in the global market and are losing this is they're losing mostly due to the fact that a lot of the industry growth is in technology which with my fiber connection we could do anything so when you think about that how can your organization leverage not only its location but leverage everything inside of new zealand with fiber connections with the um the human capital and assets that we've got here and with our connections and trade networks

so the market kept evolving there's nothing we can do about this it will continue to evolve strategic planning is slow it's not motivating why is it not motivating it's not motivating because initiatives normally come from the top without a purpose they're telling people what to do and almost how to do it in some organizations they may have some controlled innovation so if you've ever had a controlled friday innovation day or an innovation sprint you'll find that they're not actually as innovative as you think they are create creativity does not come through planning it comes from almost downtime going for a walk whereas strategic agility is focusing on an emergent strategy it's understanding that things are going to change and therefore we must position ourselves to adapt to things that may change it really is intrinsically motivating because there's no way someone up the top can actually make a initiative plan that will allow enough speed of the market from the knowledge workers so you have to empower the knowledge workers it creates continuous improvement and continuous innovation why is that that happens because those knowledge workers because they've been empowered they make decisions on the floor when they need to and that allows them to pivot very quickly instead of having to go up the hierarchy and down the hierarchy to get any decision made which is very demotivating for most workers now we're not saying that strategic planning is not valuable we're just saying that strategic agility is more valuable

organizations that have been you know fine the stock price has been going up they've had a competitive advantage you got to remember your customer is ready for change

having a vision allows your organization to focus on that why people don't buy um people don't buy the solution they they buy based on the problem that it solves for them what is the problem it's solving however there's a lot of competition on problem solving so most people especially in in worlds with adequate wages will focus on companies that they want to deal with the why the purpose behind their brand are they sustainable are they feeding the children all these little nuances really help people make good decisions

the specialization that used to work really well it used to make real sense in specialization you would have um sales people you'd have marketing people customer service technology departments this made sense when efficiency was king now when was efficiency king probably all the way from 1920s all the way up to 1980s because if you could do something cheaper than your competition and scale faster than they can by reducing your costs and lowering the barrier lowering the the price which increases the barrier to entry you are on to a winning formula in federic le loo's book reinventing organizations you could call that the orange in the orange culture you'll find that efficiency can work really well especially if it's outcome driven but as you know the values at the end if you've got an amazing finance department an amazing customer service team but your operations team is lagging behind then you've got waste in your system and that's why we had all those big lean transformations especially in the 90s because they were realizing that getting the value to end was more important

the problem we've got at the moment is generation z are coming of age they are already in their early 20s now and what we're finding from them is they already know they can't buy a house they already know that they're not gonna get the ceo position because we've removed all the middle layer of management there's no way of moving up the chain for them they want more they want purpose they want to make sure they've put a thing in the universe and if you're a leader who's struggling with people who are not motivated think about your vision not your plan we've got a globalized workforce now i can hire almost anything that's not manufacturing i can hire manufacturing as well if i wanted to but if i want to have it made in new zealand i could hire every other industry outside of new zealand it's very easy to collaborate and since covert 19 we have found that this is growing exponentially i personally have had contacts from singapore thailand north america and europe i i i could not imagine working on a different time frame but if you want that you could have that now if you're living in wellington in new zealand which is the capital tour here in new zealand you only had a real choice between some minor private companies and the government now you have access to google yahoo facebook all these wonderful companies and look open knowledge share is now really important why is that important if you don't have open knowledge share you will struggle to adapt your environment quickly your competitive advantage will decrease people will leave and their intellectual property will live with them so not only are we are we losing people we're also losing the ability to offload that knowledge to somebody else we need to have open knowledge share

functional silos they had a higher cost of delivery they had low motivation and we knew this we knew this a hundred years ago this um interesting chap called kyle marx and i always say i ignore his manifesto but i focus on his behavioral science especially around alien nation now karl marx stipulated quite bluntly that if you alienate a worker from their family from the customer and from the purpose you will find a demotivated staff member and we are seeing just that now the things that cannot be automated by machines and technology we need those people to love what they do so we need them closer to the customer and we need them to own their work and we most likely we need them actually closer to their families that work life balance makes total sense

some quick example on the power of a crowd versus specialization and this is an old example but i quite like it so francis galton was a country fair in 1906 so the story goes and to be honest i've never quite believed this story it's 1906 i'm sure a whole bunch of fibbing is going on he came across the competition that you had to guess the weight of an ox 787 guesses and and they calculated the average it was 1 197 pounds the actual weight of the ox was 1 198 pounds so the entire crowd was very close when you aggregate the data and average it out to the actual weight of the ox and they went into detail to say hey look this you know the experts were actually further off again i didn't really believe it until a few years ago using software to do a a mass study over three and a half thousand people were actually looked at and look at penelope the cow and as you can see quite clearly there is a massive range a massive range going on however the average guess was 1287 pounds and penelope's weight was 1355

crowd power team power was more important than individual but here's where it's interesting when we looked at the specialists the experts yes the deviation was less as you can as you can clearly see they're closer from that kind of average but their average was 12 20 12 72 further away and i find that fascinating these are butchers farmers these are people that should know closer the weight of the average but when you have specialists they tend to overthink and think they're right whereas a lot of normal people we just tend to just go on gut feel and the gut feel aggregated will give us a better average now why am i telling you this i'm telling you this because as we're starting to realize this this moment's going on we don't want um groups of people anymore under a manager so if you could guess which one's which you have a common interest on the left a common purpose on the right

on the left we have individual accountability individual goals and on the right we have common mutual goals and mutual accountability so which one which one is actually the team versus the group

so the team a true team is a set of individuals that have a common goal and a common set of accountabilities

why is this important not only the penalty idea but it's also around the collaborative nature of those people and how they actually will increase productivity increase happiness and therefore increase customer value at the end we had some examples from atlassian so atlassian last year 2019 actually sat all of the people that were basically had hero complexes that weren't part of a team

and if you think that's crazy then look at their productivity since then they created good culture by focusing on supporting teams and not groups of people the navy seals have another common example that i like so navy seals they get their kpis are the amount of people who pass but they can't decrease the barrier to actually passing navy seals so they looked at some science and they went you know what what a great idea this will be if we have navy seals and we put the best people potential people inside every squad they'll raise everybody up what do you think happened

less navy seals went through people dropped out and they were perplexed yeah if we look at the science the behavioral signs we can see why nobody wants to be part of a group with one person who is dominating and making everybody else look bad people like to have people around them have similar skills and ability that creates a unison between those people and the whole point of navy seals is that you have a team or squad so they the next year they went oh this didn't work so they put all the best together and all the worst together still do far better than i would and they actually had better results more people actually went through and become navy seals because when little jimmy falls over he doesn't feel guilty because these mates also falling over and they're helping each other up they're egging each other on

john who's flipping amazing doesn't hold back he's competing against people in his own class so the the best people did even better and the people who were most likely to actually fail were more likely to actually pass which is quite cool we can't understand this from the heart the marslow's hierarchy of needs we have our basic needs and most that in especially in the first world countries they are already met we know they're already met we have great systems of of um social welfare that allow us to feel comfortable that we know that our shelter food and water are all met we've moved out of that now we know we've moved out of that now we need to work on psychological needs and that's the belonging that's feeling that we're part of something hence why a vision from an organization really helps to drive that and we need to feel accomplished now we can feel accomplished individually or we can feel accomplished as a team and i'm here to say that as a team makes more sense the creating teamwork can give you a belonging having self-direction can give you a sting and having mastery will allow you to self-actualize and receive your full potential so we can really use business agility to actually allow people to reach their uh pinnacle as long as they're intrinsically motivated to do so hence the vision and hence the empowerment

so how do you become a team how do you get a team up and running because i've heard many ways of doing it well here's how i do it i ensure that they have a common objective and they commit to it if they don't commit to it i tick the box group and i treat the whole situation different if i can have a team commit to a common objective i'll then have them ask themselves how do we have diverse ways of thinking how do we ensure that we have the right skill sets we need to deliver without dependencies and i don't just mean technology dependencies i mean dependencies overall what does the value stream look like and which skills do we need to come up with an idea and deliver it and see the customer smile at the end and lastly teams make decisions together and they feel safe to do so and that's where psychological safety comes in psychological safety is talked about quite a bit but we really think about it the most important thing about psychological safety is the ability for people to say things and make adapt to adapt to changes while having that if they don't feel safe they won't say things you won't potentially improve and leaders have a step in

very very quickly the five songs of the team great book if you if you want to go read it but we'll quickly go over it um we have absence of trust which can cause would be caused by invulnerability we have fear of conflict which creates artificial harmony lack of commitment which creates ambiguity and avoidance of accountability which equals low standards low standards result in intentions to results which normally resolve by status and ego now i quite like this book and i'm a big fan of it i don't go into too much detail in this lesson but as you can see they're kind of all kind of all linked right and why do they all link they all link because if there's an absence of trust then you're not going to feel free to actually have conflict and if you can't have conflict you're not going to commit and if you're not going to commit you're going to avoid the accountability and you're going to have no results so if you want to fix one of those try and find out where in the team things are breaking down where these are just becoming a group of people where they're all becoming i people not we people and that's kind of the key bit there so the employee kept evolving especially in the last 30 40 years specialization is low motivation because it's not linked to the customer it's a silo experience for the customer so not only are we getting lower employee value we're also getting lower customer value from specialization but it costs less so there's one thing i guess which again remember business agility is not for everybody it really isn't for everybody if you have a organization that works on commoditization then you don't actually need to adapt you just need to lower costs but you also need the right employees that that's what they actually want to do what we promote is cognitive diversity the team cross functionality so focusing on teams are cross-functional and closer to the customer so by removing those lines from the customer you can have a great little agile team over here and if they got 15 steps to the customer they're not actually as motivated if you bring all those people together and deliver straight to customer if you can see a smiling face you feel a lot better that's a reward that is more motivation than paying them more again we don't want to drop specialization at all we don't want to say now everyone's just a developer of value we still need some specialization especially as we go through this transition paradigm but we're saying that cognitive diversity is more valuable a good way of looking at this is if you do this this test for psychology profiles and have a look at how many people are concrete sequential abstract etc so for instance i'm a concrete sequential person what does that mean i like facts and figures and i like linear processes but if you have all of us in a team i can guarantee you will come up with exactly the same solution

the same with abstract randoms most of the entrepreneurs in the world are abstract randoms and why they're abstract randoms because they tend to find put things to two together and it kind of happens randomly we don't we won't get on it you just it's very hard to get on should i say some some of my good friends are abstract randoms and yes they do actually frustrate me but as long as you can empathize with them it's okay but this is an interesting way to look at how you can create diversity of thought

we also look at this in terms of the t-shaped person now i'm not the biggest fan of t-shape but it does give a good example of this eye shape is all about being an expert in one thing a generalist or a general manager is a you know capable of a lot of things but not expert in anything and then t-shape is you have your specialization but you can also help out a whole bunch of other things it's a good way of looking at air it doesn't always work and that's why i don't promote this is a as a massive tool but it is a tool for your tool belt to get people to understand that yes you can do a lot of these things you are capable of it but it may not be the most productive

so when we think about customer experience we tend to look at some of the studies that are coming out the customer of the future we talk about right in the future this is going to happen well here's some studies that just happened now customers that expect companies to understand them is now 74 of customers that's a lot right customers who are willing to pay more for a great experience 86 and this makes sense i'm going to pay at least a dollar more for a coffee from the person who actually um smiles and remembers my name and that sounds silly because it's exactly the same same product i'm buying but it's the experience i'm paying for and lastly customers that have a positive experience is more influential than great advertising 63 already and that's growing what i love about this is we're tending to find that advertisement is getting lower return on investments than word of mouth then promoting your vision and creating a great customer experience it's not the future it is now nothing ever becomes real until it's experienced john keats it's a quick example of this because you know i love my data the temco group found that companies that earn one billion annually and there is some variation of smaller companies can expect a 700 million dollar average increase over three years of investing in customer experience that is huge and the reason why those companies get such a big return is because they're making the the push first they're getting the competitive advantage so think about it in terms of those companies are going out grabbing that competitive advantage and what we're finding is all the other companies even if they make the transition now it's too late they won't get a competitive advantage they'll just get an even playing field

and that's what i love we're at this point right now where you as leaders can actually make the decision to transform towards agility for the greatest competitive advantage because if your competitor does it i guarantee you'll be playing catch up

too often are strategic transformations about high performance and i i admit i do that as well i talk about performance productivity i don't like efficiency i like productivity but we've got to remember the customer is really what we're doing it for we're not doing it for our internal partners or clients or stakeholders it's all about the customer at the end of the day here's a great image from a well-known framework called the scout agile framework and as you can see the customer's at the end now to their to their point um it is 2020 now there is a safe 5.0 that was released i think a few months ago maybe eight months ago now and the customer is more central but as you can see this is a very new thing scrum a very popular agile delivery method or framework and in this delivery framework you'll find they have a product owner the product owner is a customer representation it's not the customer it is another step towards that customer again these both of these i would say are very 1990s and we've moved on from these

i look forward to seeing the data out of say 5.0 mind you which looks too good so why do we do this why do we do this we do this because um we could be afraid to fall in front of our customers yeah no totally i get that i i think especially in the 80s and 70s if you failed in front of your customers it would be publicized now we're finding if you fail but openly admit you fail customers reward you you get more because organizations especially large corporates are looked at as some form of um you know evil corporation the ones that are transparent are tend to do a lot better we know best of all you do if you know best then stop watching this video because there's nothing to learn it's different here and i've heard that so many times mike mike mike you don't understand it's different here yes i totally agree every organization is bespoke every culture is bespoke every niche customer segmentation could be different to somebody else's totally agree however it doesn't stop the fact your customers are segmenting themselves we're not doing it they're segmenting themselves and now the 20 year old female vegan who loves sport on a sunday will only buy from companies that support vegans who play football that's a really extreme example michael but it's happening the customers are evolving we're not forcing them they're doing it themselves and if you want to stand behind and let that happen by all means so what we're saying is product centricity building things no one wants is not good it's cold and old but you know what it's efficient so if you want efficiency that is part of your strategic direction if your board of directors have said actually we're going we're going to push towards the right we're focusing on efficiency we're going to come we're going to commoditize all of our products awesome oh great that's your strategy i can't complain however for the vast majority of organizations who have to work in the value add region or the innovation space you need to be aware of the customer experience customers they then feel that they're part of something things are tested earlier with massive feedback cycles and by massive i mean like there's lots of them right this whole video is a is a testing early scenario do you like the audio visual do you like the content are the slides good i know i know you all let me know it reduces your advertisement spent because you don't need to you focus on customer experience and let them do the rest that funnel that marketing funnel is a lot easier to work with if you focus if you focus on the customer and you and on their experience making it the maximum that they can get to increase the customer value

so you're saying we need to find out what the customer wants before we start building stuff would help would help a lot of industries so when we think about employee motivation and we touched on this before and as you can see what we're building up to is all four of these values are all interlinked we mostly have pyramid structures i think you can all know what they are right at the bottom you have knowledge workers then you have management and specialists functional heads senior leadership and the ceo the boss and what happens is if you can't get what you want you go up and down up and down you waste a whole bunch of time it's fantastic

those making decisions are not near the customer and i think simon cynic's quote where he says talks to ceos and said you know what's your purpose and they say oh it's um to serve the customer he's like when's the last time you saw a customer no your job is to look after the people who look after the people who look after the people who look after the customer

there is no need for the ceo to make any decisions other than the vision as simon says chief vision officer would make far more sense than chief executive officer it's a wasting bureaucracy as we've just said and i think we've i can't imagine anyone who hasn't experienced this the absolute waste that goes in trying to get a decision made knowledge workers they don't feel autonomous and because they have a total decision-making they can't pivot the fact is they won't even raise these issues they're like uh what's the point and nothing gets done very quickly the stages of leadership to talk about situational leadership when you first start in leadership roles you tend to micromanage a lot it's an autocratic leadership style it's um you demand authority um you basically have low supporting behavior from your teams you probably won't have teams you have groups of people you know it has a positive aspect though in repetitive manual tasks things that we're automating right now it does have a little bit of um um i think moderate correlation with success you move into management because your team are not performing and you realize okay right i'm going to change how i do things right i'm going to focus on instructing the team and i'm going to mark the results right i'm managing the team and they give them the maybe the what and they'll do the how and i'm just going to manage them still all to create leadership style but you tend to get better results in short-term knowledge workers and i always make the example of project managers especially with contract resources you can drive them into the ground you'll get positive results they'll burn out they'll leave but you've been successful is it good for long-term competitive advantage for organization no it's not can it be used during a crisis yes you can manage during a crisis and our own prime minister has shown that uh jacinda ardern she managed personally and we've just found out from the guardian that that was true that she managed it personally and made decisions and it worked well depending what side you take but from our point of view it worked

you move into facilitation mode why do why do you move into facilitation mode because you realize a lot of your teams are highly trained people who know more than you are better at doing things than you so the team are showing very high supporting behavior so you dim basically make a democratic decision to give them authority right and you facilitate their learning this is the kind of area of leadership i think scrum masters and agile facilitators do very well and for leaders in the room you could emulate that very quickly and then not only do you not need a scrum master or a natural facilitator you will have better outcomes for your organization and probably be more liked as well

when you stop getting any production um productivity gains you tend to start asking a lot of questions and then you realize that you need to be you need to participate it's a participation leadership style and this allows you to ask questions let team decide uh you get high supporting behavior you see that and if you see that you know you're in the right place this is very positive for high performance and again this is what agile coaches senior leaders do you tend to get a lot more higher performance around asking the questions getting them to have those aha moments i.e david rock from the quiet leadership book those aha moments

and then the greatest people are the ones who are not even required um lads and fair leadership style social authority leader supports a team with a vision and gets out of their way right so i love this when i see a really good coach who's barely doing any work and people say oh what's that guy or girl doing and you're like being an awesome leader because that they're there if they need them but they don't actually have to do anything anymore

you get a lot of innovation from that and if innovation is what you want that's where you want to push your leaders towards or ask them to be fair i simplified this a little bit uh situational leadership role that um that i do myself um depending on the behaviors of a team or group but start off a team i move between teach facilitate coach and support as i move around i need less time with teams i can have more teams a good example of this when i first go into an organization as i say a scrum master i may have one to three teams i'm teaching and facilitating and then i'm facilitating and coaching and then i can have probably between six and twelve teams and when i'm supporting i can support probably three four hundred teams because they shouldn't need me anymore

it's situational to the team so all of this you remember just because you're an amazing leader the team may not actually want that they may want management for time being and you want to be just one step ahead just one step ahead of all times

yeah who's up for some coaching this is where coaching goes wrong you know when you just ask questions and you're not doing it for a specific reason i quite like this feel free to pause the video and have a laugh but um you don't just want to ask questions to get the solution you want they're not open questions you want people to fail that allows you to feel that they're learning you want them to fail very very small and fast why because the impact is less you don't want to let somebody walk on a program and fail the whole program and cost millions of dollars that's just that's just barney but what you want to do is basically have little small failures that they learn from and you'll coach them through that

so why am i saying this why am i saying all these things because the culture kept evolving and again there's nothing we can do about it culture internally in organizations culture and outside organizations it is evolving very rapidly the more global networks we get more facebook to you know everything else we are just getting more aligned and there's nothing that any organization can do about it hierarchies are slow to respond they're not motivating and they reduce innovation you lose great leaders as well you can have a great leader as a team lead who is fantastic potential who could probably have you know three four hundred people under them and you put them in a row and because they're not doing their kpis you know around you know slapping everyone's hand they don't move up the ranks and then they leave and you've lost a great leader autonomy is intrinsically motivating it creates new ways of working so you don't require frameworks to keep on being brought in by new fad coaches and it creates an environment for high innovation because it just naturally happens again i think there's one hierarchy called the pancake hierarchy doesn't mean there should be no hierarchies i'm sure there is legit reasons for that i believe in a network of um you know living organism i like that a lot but each of their own it depends on the situation we're just saying autonomy is more valuable so

this is the business agility radar right and you just saw this then the green organizations where part of the course we talk about green organizations and what that means and how do we get there but i'm going to quickly jump to the actual i guess business agility radar and what this does is it allows me to talk you through why these are all important and as you can see there's four segments they have a a diagonal so strategic agility impacts customer experience quite a lot um they should be very similar cultural diversity on the bottom bottom right and employee empowerment are also very similar they should have similar results if they're not similar results if you find there are different results then use very easy fixes to find and this is this is where this model gets really powerful also strategic agility will have an influence over diversity and again empowerment and customer experience why because employee value equals increase a moderate correlation with customer experience and i love that that's what i find fascinating so this the results we'll talk about at the end on how you actually get there but we'll just go for every question so feel free to do this yourself it's down at the bottom there forward slash capital bar the business agility radar this was named by the cohort one of our first class and i let the name all of the ip of surge and they came up some you know good and bad uh search canvas is i still think very bad but hey um so vision again i think the good thing about why we've gone through this in this way is you can understand why vision is important someone once said to me and i really liked it is you can't be half pregnant you have it in or out so when you do this make sure you actually are fully all those words so there is no strategic vision the strategic vision for management so they have one in management sorry but no clear correlation or connection between the work and the vision and that happens a lot especially if you get a big full consultancy company that comes in creates a vision sort of values a strategy and then over here the actual work being created is completely different um that's very common one strategic vision for all to see and work towards as you can see that's your amber

tribe has input into shaping the strategic vision work and vision are connected so why is that important that's important because if we want a vision that makes sense that's purely connected we want more connection between the leadership and the tribes and lastly strategic vision is driven by the customer and teams use this to drive decision making

beautiful world hardly ever see that let's be fair again so we're moving on to the next stage of strategic agility emergent which is all about emergent strategy so you could have no strategy

if you're gonna put that make sure you double check because i'm pretty certain most organizations have a strategy um strategy is created every three to five years by executives that's phasing out right now that sort of command ego planning is kind of getting rid of it's been replaced by goals are set every three to five years right and you may find those you may find goals every three to five years and then strategic strategic initiatives done yearly

30 to 120 day strategy plans

are being used with a single prioritized backlog so the whole organization and you can do this at a tribe level you know an art level it says fine you can use them both ways i like to use the organizational levels that's where i like to play but you can use this as a department as well this allows you basically to understand how you draw down funds for finance so if you ever wondered how you get finance on board you show your value and show how drawing down funds every quarter makes way more sense and lastly the strategy is that there is no strategy so not we have no strategy we have a strategy to say there is no deliberate strategy and everyone adds to the single backlog and the most valuable work is completed first so everyone's adding these fun things and you have a mechanism for value and it's prioritized you're always pulling from the top

pivot on demand so you need the ability to respond and adapt your organization if you don't you're just going to have the same problems again and again and you may do this transformation if you don't allow the pivot on demand then what's going to happen is you have a great vision a great emergent but you won't actually pivot and why is that bad because you could be two months into a program of work and you go oh i spent two months now i'm also continue it's like well no if the customer doesn't want it you've just saved a million dollars by not continuing the project

the strong fight for budget management raises business cases based on budget quite common business cases are raised for yearly budget approval with return on investment yep as the next accountant i love that lean business canvas or similar are produced and approved within a financial quarter with either a focus on competition or value metric so really focusing on value there already trying to beat condition and lastly hypothesis testing is completed to validate the highest priority every month internal disruption is promoted that is key otherwise you don't get you have a psychologically safe company and they're not going to keep on moving it's not a people-centric culture so the way i ease let's remember it so those three things there you've got amber orange and green why do i follow on the same suite as uh revit organizations simple makes it easy to be honest amber is all about your hierarchies and efficiency orange is all about outcomes and goals green is a people-centric culture that creates collaboration and innovation again it doesn't mean you all have to be green what i'm saying is is that it's a good way of knowing where you are now and therefore where are you going to go and if you find out you're an amber organization but you do your strategy session and you think actually that's where we want to be we're actually going to drive costs down massively awesome you're going to sit in the valley ed region then orange is where you need to be right now if you're not in orange then you're losing competitive advantage to people who are in orange and they're growing and you're probably shrinking your possible possibilities if you lay in the innovation space right or you're looking to get younger people into your organization for whatever reason then the green is where you want to aim for now bear in mind if you are looking at all amber right now please don't jump to green that jump is too massive that's too disruptive you will lose money you need to slowly transition over vision could be green if that's the vision you want that's the way we're going but i urge you to start where you are and incrementally just move little dials and measure is customer value increasing and you can measure customer value similar to what we've published which split into four ways brand loyalty customer satisfaction functional value and price logo sales and you can use those and leverage those however you see fit to increase your customer value and i always say that it's moderate correlation around increasing employee value which increases customer value so

mindset mindsets about how people think and it's very related to cultural diversity what's wrong with fixed mindset if we want to improve we need more people we knew people sorry that's like blaming people basically prescribed feedback is given to individuals and training courses are bought i know what they need

feedback loops allow individuals to learn and continuously develop without management approval think about like a system of online e-courses people can choose whenever they want to um yeah happening more having more and more and um feel free we've got a agile 101 course that'll be completely free add that to your repertoire and this business agility course will be completely online over the videos um for a very good price in the future 2021 here we come and lastly teams are responsible for continuous learning and teaching new members of the team and a growth mindset is embedded into our culture

value chain so how the value chain from end to end is is linked now again you need to have an understanding of what your value chain is to actually measure this properly but on a high level no deliberate strategy for employees so we have no idea organization is mapped based on functional silos with no map to customer value so we've just done what suits the ceo basically teams are aligned to functional silos within multiple values chains so you have a team and they're working on three or four value chains think a badly implemented safe organization or people trying to do the spotify model but they're actually working on many value chains this is why you need to identify variable chains first before you actually start creating arts or tribes some may have virtual teams aligned with a customer value teams work within functional silos within a single value chain and or no customer has been engaged

and lastly teams are cross-functional within a single value chain and are aligned to the customer view of that value what a great place to be transparency we said earlier wrong we need things to be transparent we need these things to be open to improve automatically i'm unsure when knowledge is kept

knowledge is available on management computers

organizational knowledge is communicated and stored centrally think about a jira or confluence that's like store centrally and admin centrally information is freely available to read but admin is an individual so that's very similar to the top one but you can actually get it a lot better so confidence pages may be open you can actually edit things on the fly but you can't admit it yourself you can't create things yourself very similar but just slight little difference there and knowledge is openly promoted and discussed for all to update like wikipedia where everyone's an admin because we trust our staff don't we we all trust each other customer at the center so putting the customer in the center of your organization or every part of the organization is vital for not getting time to market getting the right product out increasing correlation with business outcomes obtaining a competitive advantage one product our products are more important than our customers

when revenues decline we blame the staff or our customers it's their fault they don't know they don't know they knew our products are better they'd buy them just you're aware there's a great study that was done 2018 and if anyone's interested message me and i will forward it to you it says that more more technol more technological products actually were less correlated with success then customer collaboration high quality staff was less than customer collaboration

more innovation lesser customer collaboration customer collaboration was the most important correlation for successful outcomes so if you focus on one thing that is more important than what you think personas are created by design teams outside of our tribe so i tried looking at you know what your functional um so what your value chain is part problem you're solving and then there are some design thinking teams over there and they feed into you because you can't do that sure enough we understand who our customer is and what they need we have personas empty maps and customer journeys or something similar we understand our customers lastly customer has been brought into the team to develop and report back on changes instantly so we're actually getting real feedback they really are part of the company

customer feedback look it's not required who needs that we don't need feedback

our ceo is the customer oh they know best

feedback is requested after delivery of value so what we'll do is we'll basically do some value and then we'll basically go back and say hey can you uh give some feedback on that

we have a customer representation inside our team who gets regular feedback from customers so think about product owners they're kind of the customer representation and then the customer is part of the team allowing us to make rapid decisions based on new feedback

almost almost there and if yours looks like this by the way um there's something a bit bit wrong you'll find it would be a little bit crazy but it's not that's crazy customer alignment there's no alignment each year your organization strategy is realised to what ceo wants each manager has a different view of customer value centralized vision for customer value but implemented by individuals differently so we you know

all customer touch points are aligned to a customer vision for great customer value that is agreed to with a customer so again we'll bring the customer back in

so we're on to employee empowerment now last three questions we have mostly contractors

contractors are brought in for programs of work and then released upon delivery teams have been created for project delivery i.e scrums you've set up some teams you've brought some people in oh we're doing scrum we're very agile but to me you're just amber why are you amber with scrum in that context because you're just creating a project cycle you're gonna um you're gonna undo those teams later on because you know best autonomous teams have been created with individual kpis and management lines and or team members have titles with individual responsibilities so yeah do what you want but you're actually still reporting to me right so create create i'm gonna create your goals and that causes a lot of problems especially if you work in an agile environment right now you'll find a team there's a ba a developer a tester etc and what you find is their manager is over there giving them kpis that different to what the team is creating it causes problems teams are self-organizing with authority over what work they complete and have access to the customer and have group ownership of work with leaders who coach the team if you have that please hire me

agile delivery no work is being started or complete okay crazy i'm sure it happens work is given to teams to do not all work is complete before the new work begins very common in a highly push i know best environment teams break work down into small tasks for use in a process governed by executives so think about again i'd say a badly informative safe skeletal framework environment execs will create pi planning they'll tell them exactly what they have to do and they'll break the word down it's still better than having nothing but it's not optimal organizations have implemented a framework such as safe or dea i'm saying properly right i'm not saying you just you say you're doing save say you're doing di you have a you have a delivery mechanism that's the framework you've put pulled out and that's that spotify model less model everything else right or the search model teams create their own process based off of objective data and past events so that's the key bit right it's about we may start off doing scrum and i always say if you're still doing scrum in three months time you're doing something wrong because you should be iteratively developing out of scrum very quickly scrum is designed as a framework for certain situations most likely will not work for you in 2020

last one kaizen kai zen towards zen towards perfection never quite get there there is no continuous improvement process we transform our way to improvements through technology or restructures happens a lot it happened a lot in the 90s and there's a lot more red organizations in the 90s there is a process improvement team looking for new ways to increase efficiency all these six sigma you know black belt pebble belt rainbow belt not sure and a leader measures outcomes to see if improvements can be made such as six sigma

we use data to continuously test new hypothesis and record the outcomes to make teams decisions cool

what you're going to find is one or two options you are going to find they're very very similar so amber orange and just give you an example pretty much all organizations um most most of them sorry were actually um were actually amber with a little bit of red a little bit orange that's kind of the common that we found we've got 400 uh people in there now and we're getting more data so please go through click enter save that join the study we get more data if we get more data we share more data we share more data everyone learns together this is why this is a free tool this is a free tool because data allows everyone to do better so if you use this and you found it valuable promote it if you use this and you found it valuable do it again in six months time after your transformation if it moves i may give you a call and say hey did you increase customer value we're finding a moderate to strong correlation with customer value in using this what does that mean we know that we can link business outcomes and competitive advantage to customer value we know we can link customer value to increasing this um business duty radar we also know that if you have some divergence you have mostly amber and then you have a few reds it's better to go get rid of those reds to create a full circle that is more important than it actually is to try and grow the other bits and it had a strong correlation with customer value mostly because of employee value to be fair because if you ever an organization that's really agile but over here all the information is kept under wraps and you can't change the jira it's very frustrating you end up leaving whereas happy staff happy customers so you may find you have it very rounded or you may find massive spikes if you have massive spikes it's normally because you've gone through some sort of transformation and the strategy used wasn't rounded it was literally just a transformation out of a book going in one direction and you're finding little variances hey i hope you enjoyed this video and i'm hoping you got some value out of it so what is the action i want you to take i want you to reflect on why the four values of business glt from surge employee empowerment strategic strategic agility cognition diversity and customer experience right so why are they important how can they help your organization why does every segment matter and then do a current analysis very high level you just do it yourself if you want to do a real big one get like 25 people together and take an average and if you want message me and what i'll do i'll try and bring those figures for you together right and use a company code and similar you'll see in the results there's a company code use a company code that's the same and i'll better find those details for you and then create your strategy if you know where you've started you can then go where am i going to go now what's my you see behind me what's my horizon 1 horizon 2 horizon 3 transformation strategy what can i do right now to receive benefits right this second what am i planning for the next 18 months of horizon 2 what's my long-term cultural evolution for the company in horizon 3. it's all different everyone's bespoke but you can structure things in a certain way it all starts with a current state analysis awesome thank you very much hope you enjoyed and enjoy your year merry christmas