6 – 10 November 2016

Barcelona, Spain
#GartnerSYM

Bimodal — Raising Everyone's

Game for Digital Business

Simon Mingay

CONFIDENTIAL AND PROPRIETARY This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the
express written permission of Gartner, Inc. or its affiliates. © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Project Organization Is Dead.
Long Live the
Product Organization!

#GartnerSYM
1 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Key Issues

1. What is bimodal, and what isn't it?

2. What are the key principles behind scaling bimodal?
3. What are the key practices for scaling bimodal?

#GartnerSYM
2 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Bimodal is the practice of managing two separate
but coherent styles of work — one focused on
predictability and the other on exploration.

Mode 2 is
exploratory,
experimenting to
solve new problems.

Mode 1 is
predictable, improving
and renovating in more
well-understood areas.

#GartnerSYM
3 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Bimodal Helps Deal With Uncertainty in a
Complex World
 Simply put, bimodal recognizes
that there are areas of the
enterprise that have more
certainty, objectives are clear,
cause and effect is understood, we
can predict and plan — Mode 1.
 In other areas, requirements are
unclear and changing, the
relationship between action and
outcome is uncertain, and things
are less well-understood at the
start — Mode 2.
#GartnerSYM
4 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
A Model of Complexity — Differentiated Decision Models

 Enabling constraints  Governing constraints

 Loosely coupled  Tightly coupled
 Probe-sense-respond  Sense-analyze-respond
 Emergent practice  Good practice

 Lacking constraint  Tightly constrained

 Decoupled  No degrees of freedom
 Act-sense-respond  Sense-categorize-respond
 Novel practice  Best practice

The Cynefin Framework

Source: Adapted From Cognitive Edge, by D. Snowden

#GartnerSYM
5 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
A Model of Complexity — Differentiated Decision Models

Mode 1
 Enabling constraints  Governing constraints
 Loosely coupled  Tightly coupled
 Probe-sense-respond  Sense-analyze-respond
 Emergent practice  Good practice

 Lacking constraint  Tightly constrained

 Decoupled  No degrees of freedom
 Act-sense-respond  Sense-categorize-respond
 Novel practice  Best practice

The Cynefin Framework

Source: Adapted From Cognitive Edge, by D. Snowden

#GartnerSYM
6 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
A Model of Complexity — Differentiated Decision Models

Mode 2 Mode 1
 Enabling constraints  Governing constraints
 Loosely coupled  Tightly coupled
 Probe-sense-respond  Sense-analyze-respond
 Emergent practice  Good practice

 Lacking constraint  Tightly constrained

 Decoupled  No degrees of freedom
 Act-sense-respond  Sense-categorize-respond
 Novel practice  Best practice

The Cynefin Framework

Source: Adapted From Cognitive Edge, by D. Snowden

#GartnerSYM
7 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Beware of the Myths of Bimodal

Myth 1 — Agile, DevOps and Mode 2 are synonymous.

Myth 2 — Bimodal is about software development.

Myth 3 — Mode 2 is less rigorous than Mode 1.

Myth 4 — Bimodal is all about speed.

Myth 5 — Mode 1 is static and does not need to change.

Myth 6 — Mode 1 will disappear.

#GartnerSYM
8 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Phases of the Bimodal Journey

Start Scale Synthesize

 Project Bimodal:  Enterprise Bimodal:  Bimodal
Focus is on forging Significant structural Business:
identity of Mode 2 bet for whole business Synthesis never
 Mode 1 and Mode 2  Protocols for intermodal "done"
teams work independently collaboration established  Focus is on
 Projects are small and  Big changes in continuous
contained, with Mode 1 process, improvement
emphasis on learning technology  Proactive
and mindset business posture

#GartnerSYM
9 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
What Does the Endgame Look Like?

Integrated Planning and Governance, Bifurcated Decision Model,

Funding, Oversight.

Atomic Unit — Multidisciplinary, Self-Organizing, (More) Self-Sufficient,

Product Teams. Working From Prioritized Backlog of Mixed Mode Items.

Standard Toolbox, Pick the Best Tools for the Job

#GartnerSYM
10 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Six Key Guiding Principles for Scaling

#GartnerSYM
11 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
1. Shared Goals, Shared Values,
Coherent Metrics, Collaborative Culture

ONE Strategy Two Modes

ONE Organization

ONE Team

#GartnerSYM
12 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
2. Bimodal Is Very Experiential

Show, don't tell!

#GartnerSYM
13 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 "You can't convert the whole
organization in a week. Start
by going narrow and deep, Peter Jacobs
Chief Information Officer at ING Bank,
rather than wide and shallow." Netherlands

#GartnerSYM
14 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
3. Go Narrow and Deep, Then Wide —
The Key to Raising Everyone's Game

Agile
Tackle key process cycle times DevOps
and culture Multidisciplinary, self-organizing, teams
Develop underpinning capabilities, Lean startup, innovation management
methods and processes

…
Adaptive sourcing

#GartnerSYM
15 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
4. Mode 2 Is Your Nursery
Innovation Management
DevOps
Adaptive Sourcing

Lean Startup
Agile

Design Thinking

#GartnerSYM
16 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
5. You Cannot Scale Unless You Renovate the Core

Digital: Task Support Through App-Style Software

Regional BU Corporate
 SOA and API
Public App Store
App Store App Store App Store architecture
 Modernizing application
architectures, reducing
software and
Exposing APIs: API Management: Security: Integrity: QoS
architectural complexity
Cloud On-Premises Packaged Custom  Application
Core IT: Heterogeneous and Hybrid Services rationalization
Bimodal does not offer a way to avoid tackling the thorny issues of  Infrastructure agility,
renovating the IT core — nor is it an excuse to extend the life of hybrid cloud
outmoded or inappropriate practices. In fact, to scale bimodal, it's
essential to address these troublesome issues.  Postmodern ERP

#GartnerSYM
17 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
6. Optimize the System, Don't Just Implement Methods

A Resource Optimized Model Is Never

Going to Get You The Innovation, Agility
Generate and Surface and Velocity the Executives Want.
Leverage Lean
How long does it take for the best ideas
Select and Fund
Optimize
to make it into products or services?
Explore This  Visualize that process
Critical
Develop Cycle Time  Engage the executive team
Deploy  Identify the waste, such as waiting
 Be uncompromising in optimizing

Products and Services

#GartnerSYM
18 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 Key Practices for Scaling

#GartnerSYM
19 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 Invest in coaching of product
owners/managers and the
executive team

#GartnerSYM
20 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Combine Design Thinking, Lean Startup and Agile
Sprint planning
Ideate

Learn
Abstract

Product Sprint
backlog execution
Define
Try experiments

Pivot/persevere?
Sprint Shipable
Concrete

review increment
Empathize

Customer PROBLEM Customer SOLUTION

DESIGN THINKING LEAN STARTUP AGILE

#GartnerSYM
21 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Invest Management Time in Synchronization

ING's QBR Process:

 1 day/quarter
 CIO and board —
seven priorities
 Tribe leads share six page
— what have we done, what
will we do (three- and 12-
month view)
 10 days "trading" ahead of
QBR day.
 Priorities and
interdependenaces agreed.

#GartnerSYM
22 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Rotate Staff for Development and Engagement

Localiza:
 Largest car rental in
Latin America.
 Extensive outsourcing
 Product owners in place
for three to four years
 Rotate at least one person
each month between
operations, development
and innovation teams
 One full cycle is three years

#GartnerSYM
23 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Product Organization: Multidisciplinary,
Self-Organizing (Self-Sufficient-ish)
Marketing  Many variations on the theme.
Engineering  Some more IT-centric, some
User Experience more business-centric.
Data Analytics  Increase levels of self-
sufficiency as they mature.
Dev
 Contingent on needs of
Test Automation the product.
Product Owner  Compliance, security, engaged
DevOps early and late.
#GartnerSYM
24 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
The Product Organization:
Communities/Chapters/Guilds Become the Glue

Automated Test

Ops.

UX

#GartnerSYM
25 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 "We nailed code production,
but the best line of code is the
Krischa Winright
one you don't have to write." Chief Information Officer
Priority Health

#GartnerSYM
26 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Architecture — The New Black From City Planning to
Simple Rules, Guidelines to Guardrails

"Architecture is not how it used to be. Before, the architect would give 700 pages of
documentation to a project team then come back in 6 months to tell them what they
had done wrong. Now they must work with the Scrum master on process, the Product
Owner as co-stakeholder and developers as guide or mentor", Keith Mann

#GartnerSYM
27 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Case Study: Carmax

 Creating a consistent experience across channels.

 Partnered with the CMO and the EVP of Strategy and Stores.
 Agility enabled through a multitiered governance model.
 Trained business participants in architecture and
agile principles. "Each year we spent months
 Cadence issues remain a challenge, but have resources planning and preparing for the
annual budgeting process, but we
ring-fenced to support Mode 2. only ever delivered less than half of
 Make use of a product model. what was in the plan. So we decided
to stop doing that. Annual budget
 Right funding, stakeholders, priorities, planning for IT now takes a few
days, and we have a three tiered
 Strategy in place governance structure that provides
much more dynamic prioritization
 Everyone understands why change. and resource allocation."

#GartnerSYM
28 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Recommendations

 Focus approach on one strategy, one organization, one team.

 Go narrow and deep, before going wide.
 Ensure Mode 2 is acting as trailblazer and nursery.
 Rotate staff through Modes.
 Move to a product organization and funding model for
Mode 2 promptly.
 Invest management time in synchronization activities:
– Leverage approaches like the QBR at ING, and the multitiered model
at Carmax.

#GartnerSYM
29 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
Recommended Gartner Research

 Deliver on the Promise of Bimodal

Simon Mingay and Mary Mesaglio (G00299685)
 Dispel the Myths of Bimodal to Succeed With Digital Transformation
Simon Mingay, Mary Mesaglio (G00310228)
 Embrace Bimodal Business Transformation by Adopting Lean Startup Techniques
Bruce Robertson (G00308853)
 Transitioning to Bimodal IT Requires Rearchitecting the IT Money Flow
Andy Kyte (G00275220)
 Emerging Mode 2 Practices in Bimodal Governance
Bill Swanton, Donna Fitzgerald and Luis Mangi (G00297174)
 Manage Architectural Debt to Enable Continuous Innovation and Delivery
Marcus Blosch, Betsy Burton and David Norton (G00291303)
For more information, stop by Gartner Research Zone.

#GartnerSYM
30 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.
 Check out sessions you missed or watch
your favorite sessions again.
Recapture all the "aha" moments for an
entire year, on your own or with your team.

#GartnerSYM
31 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.