10 c inetpub files00003184steve denning keynote
TRANSCRIPT
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
1/64
Making
The Entire OrganizationAgile
Steve Denningwww.stevedenning.com
These slides:http://www.stevedenning.com/slides/agile.pdf
http://www.stevedenning.com/mailto:[email protected]:[email protected]://www.stevedenning.com/ -
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
2/64
Video
Making
The Entire OrganizationAgile
Explaining the idea in sixty seconds
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
3/64
http://www.youtube.com/watch?v=tTwdpRukACk
http://www.youtube.com/watch?v=tTwdpRukACkhttp://www.youtube.com/watch?v=tTwdpRukACk -
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
4/64
Video
Making
The Entire OrganizationAgile
Explaining the idea in sixty seconds
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
5/64
http://www.youtube.com/watch?v=tTwdpRukACk
http://www.youtube.com/watch?v=tTwdpRukACkhttp://www.youtube.com/watch?v=tTwdpRukACk -
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
6/64
President, Ford Motor Company, 1960Secretary of Defence, 1961-1968President, World Bank, 1968-1981
Robert McNamara
the smartest man I ever metJohn F. Kennedy
1978
http://upload.wikimedia.org/wikipedia/commons/1/10/Robert_McNamara_at_a_cabinet_meeting,_22_Nov_1967.jpg -
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
7/64
A knowledge managementprogram was launched
1996
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
8/64
Why do managersact this way?
(These are highly intelligent, educated people!)
In 2008, I began exploring:
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
9/64
One clue
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
10/64
Within a few years, it hadbeen put on a back-burner
Not just the World Bank BP Ernst & Young IBM HP
Knowledge management
Its not just leadership storytelling!
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
11/64
Its not just leadership storytelling!
Lean Manufacturing
Only 1% of lean initiativesmeet their goals.
Jeffrey Liker
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
12/64
Marketing
25 ways in which traditionalmanagement systematicallykills great marketing ideas
Its not just leadership storytelling!
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
13/64
Innovation
How managementsystematically kills
disruptive innovation
Its not just leadership storytelling!
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
14/64
2008
Why did managementsystematically kill al l the creative
things in organizations?
knowledge management? lean manufacturing? innovation? marketing? leadership storytelling? even Agile and Scrum
The question was broader
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
15/64
Traditional
managementrests onfive interlocking
principles
Most management textbooks Most business schools
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
16/64
1. The purpose of a firm is outputs
Five planks of traditional management
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
17/64
2. The main goal is efficiency
Five planks of traditional management
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
18/64
3. Customers are demand thatcan be manufactured
Five planks of traditional management
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
19/64
4. Staff are human resourcesthat can be manipulated
Five planks of traditional management
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
20/64
5. Communicate by directives
Five planks of traditional management
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
21/64
Five planks of traditional management
Traditional managementpractices are a success
the smartest man I ever metJohn F. Kennedy
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
22/64
Contrary evidence is inadmissible
Five planks of traditional management
the smartest man I ever metJohn F. Kennedy
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
23/64
2009: Conclusive proof of the
failure of traditional management The rate of return on assets has
fallen by 75% since 1965 The l ife expectancy of Fortune500 firms down to 15 years, and isheading towards 5 years. Only 1 in 5 workers fully engaged
Sources: Deloittes Center for the Edge: The Shift Index; Kauffman Foundation
1965
Today
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
24/64
Management
is broken!
Many are now concluding:
f
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
25/64
We have tomanage
differently!
Implication for organizational survival:
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
26/64
The shifts are self-reinforcing & interdependent
Make money
for shareholders
Managers arecontrollers
of indivduals
Bureaucracy:rules, plans, reports
Top downcommands
Efficiency,cost cutting
Single fix improvements make no impact
I li i f i i l i l
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
27/64
The significant problems wehave cannot be solved at the
same level of thinking withwhich we created them.
Implication for organizational survival:
Albert Einstein
We have to think differently!
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
28/64
5 big shifts( and 70+ practices)!
We know how to manage differently:
Fi bi hif
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
29/64
1. New goal for the organization
2. New role for managers3. New coordination mechanisms4. Shift from value to values
5. New way to communicate
Five big shifts
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
30/64
1. NEW GOAL: delight the customersfrom outputs to outcomes
1
Delight the customer Produce outputs
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
31/64
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
An epochal shift in the balanceof power in the marketplace:
The customer is now the boss!Sorryaboutthat!
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
32/64
A newbottomline for
business
Delight the customer Make money
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
33/64
Customer delightEfficiency
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
34/64
Customer delightCosts come down of
their own accord!
A paradoxical discovery!
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
35/64
You takewhat we
make!
We want tounderstand & help
solve your problems!
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
36/64
21 st Century4 buttonsSimple
Easy to use
iPod
LESSIS
MORE !
20 th Century54 buttons
ComplicatedHard to use
DVDcontroller
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
37/64
Customers are happy to getfree shipping.
They are delighted when acustomer orders by midnightEST, and gets the deliveryeight hours later.
Zappos runs its warehouse24/7
This is not an efficient way to
run a warehouse
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
38/64
1
Outputs Outcomes
Things People
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
This changes the game completely
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
39/64
1
This changes the game completely
Outputs Outcomes
Simpl e Complex
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
40/64
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
The goal is: delighting the customer Making money is not the goal Being agile is not the goal. Working software is not the goal. Agile & Scrum & working software
are means to achieving the goal .
Everyone must focus on the goal
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
41/64
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
Is customer delight a serious business proposition?
joyenchantmenthappiness
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
42/64
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
43/64
1. NEW GOAL: delight the customersi.e. from outputs to outcomes
1
Is customer delight a serious business proposition?
Customer delightismeasurable.
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
44/64
2. NEW MANAGER ROLE: from controller to enabler2
Controller of
individuals
Enabler of self-
organizing teams
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
45/64
3. COORDINATION OF WORK: Dynamic linking3
Clientdriven
Shortcycles
Hierarchical bureaucracy Dynamic linking
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
46/64
4. FROM VALUE TO VALUES: radical transparency
Alan Mullaly CEO, Ford
4
Just do it
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
47/64
47
Get the product out
4. FROM VALUE TO VALUES: continuous improvement4
The status quo is
never good enough
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
48/64
5. INTERACTIVE COMMUNICATON: conversation
Command andcontrol
5
Adult-to-adult conversations
The shifts are self-reinforcing & interdependent
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
49/64
The shifts are self reinforcing & interdependent
Delightingcustomers
From controllerto enabler
From bureaucracyto dynamic linking
From commandto conversations
Radicaltransparency
WHATS NEW d i g ll t
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
50/64
Individually, none of the shifts is new
Delightingcustomers
From controllerto enabler
From bureaucracyto dynamic linking
From commandto conversations
Radicaltransparency
WHATS NEW: doing all at once
WHATS NEW d i g ll t
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
51/64
Delightingcustomers
From controllerto enabler
From bureaucracyto dynamic linking
From commandto conversations
Radicaltransparency
Principal focus of Agile/Scrum
Agile
WHAT S NEW: doing all at once
WHATS NEW: doing all at once
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
52/64
Delighting customers is pivotal
Delightingcustomers
From controllerto enabler
From bureaucracyto dynamic linking
From commandto conversations
Radicaltransparency
Agile
The lynch pin
WHAT S NEW: doing all at once
The transition is inevitable
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
53/64
The transition is inevitable
Two- to four-times
gains in
productivityEconomics will drive the change!
Firms that delight their customers
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
54/64
Six-year share price 2004-2011
Firms that delight their customers,
are also HUGELY PROFITABLE
Firms that delight their customers,
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
55/64
Ten-year share price 2001-2011
g ,
are also HUGELY PROFITABLE
Firms that delight their customers
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
56/64
Ten-year share price 2001-2011
Firms that delight their customers,
are also HUGELY PROFITABLE
While the other firms
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
57/64
Ten-year share price 2001-2011
While the other firms
STRUGGLE just to STAY IN PLACE
While the other firms
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
58/64
Ten-year share price 2001-2011
While the other firms
STRUGGLE just to STAY IN PLACE
Th i i b
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
59/64
1990s: Fords Romeo plantin Michigan
The worlds best plant:Fords Hermosillo plant
in Mexico
The transition wont be easy
1990
2006: The new CEO,Allan Mullaly, embraces it
Thehugeopportuni tyforScrum
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
60/64
The huge oppor tuni ty for Scrum
Educate yourselves!
Educate your managers!
Become leaders of the new movement: inspire!
Disseminate the Shift Index Disseminate the books that show how
Master the principles and practicesof radical management
Theopportuni tyforScrumandAgile
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
61/64
Lead the revolution! Embody the change Be the strategy ( not support the strategy) Master leadership storytelling Challenge management to join the future Encourage others who share the vision Take charge of the future
The opportuni ty for Scrum and Agile
Lets move
to thefront ofthe bus!
Reinventing management requires systemic change
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
62/64
Once you introduce this,it affects everything in theorganization the way youplan, the way you manage,
the way you work.Everything is different. It
changes the game
radically .Mikkel Harbo
VP, Systematic Software (Denmark)
Reinventing management requires systemic change
More than a new set of management tools!
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
63/64
The real voyage ofdiscovery consists not inseeking new landscapes,but in having new eyes.
Marcel ProustEverything
isdifferent!
Reinventing Management Requires Systemic Change
-
8/10/2019 10 C Inetpubwwwrootsystemresource Files00003184Steve Denning Keynote
64/64
Managers areenablers of self-organizing teamsManagers provide clear line of sight tocustomers and remove impediments
Interactive communications :
The firms goal is todelight customers
Making money is a resultof delighting customers
The firms goal is tomake money for shareholders
Customers are demandto be parsed & manufactured
Managers arecontrollers of individuals
Employees are human resourcesto be manipulated with carrots & sticks
Dynamic linking:Teams work in short cycles withdirect feedback from customers
Bureaucracy :Work is coordinated byrules, plans and reports
Values that delight customers :Radical transparency &
continuous improvement
Economic value:Single-minded focus on
efficiency, economies of scale
One-way communication:
Traditional management Radical management
New Role
Communications
New Goal
Newcoordinationmechanisms
Value vs Values