Agile Organizational Structure

Network Organization Feedback and Reflection

Flexible incentive systems Change and Learn

Dual Operation Systems
Courage to Experiment
Outside-In Strategy
Positive Idea of Man
Management 3.0
Structure & Value Openness
Circle Structure
Governance & Skills
Teal Organization Ability to create

Self Organization Customer Orientation

Wholeness
CULTURE
Purpose driven
Sociocracy
Transparency
Cybernetics
Commitment
Holacracy

Practices &
Iterative Experiment Methodology Scrumban

Innovation Spirits Kanban

Design Thinking Scrum

 Waterfall VS Agile

Large, functional teams TEAM Small, cross-functional teams

CUSTOMER & BUSINESS

Heavy at the beginning and end Constant collaboration
INVOLVEMENT

Predict and design all features up front Modularize and prioritize design features; welcome changes to
DESIGN
with exhaustive documentation undeveloped modules

Build all features at once to extract specifications DEVELOPMENT Iterative; build only what is proving valuable

Integrate and test when development is complete TESTING & INTEGRATION Continuous, real-time testing and integration

Large, infrequent releases DELIVERY Rapid, frequent increments

 Traditional vs. Agile Organizations

“Boxes and lines”

less important, focus
Quick changes, on action
flexible resources

Top-down
Hierarchy

Teams built around end-

Bureaucracy
to-end accountability

Detailed Instructions SILOS Leadership shows directions &

enables action

From Organizations as “Machines”… … to Organizations as “Organisms”

 Moving to the New Organization Model

T O D AY FUTURE

ORGANIZATION
Hierarchical business functions Projects, squads, teams, shared services
STRUCTURE:

TEAMS AND PROJECTS: Team formed slowly over time Teams assemble and stop quickly

JOBS AND ROLES: Job descriptions, job levels, job titles Assignments, tasks, expert roles

MANAGERS: Managers “own” teams & people’s career Managers manage projects & “sponsor” people

CAREERS: Jobs are “owned” by the manager & not shared Jobs open in transparent marketplace

People sought out based on skills,

FLEXIBILITY AND SPACE: People “assigned” jobs by management
work on multiple projects

People rewarded by outcomes,

REWARDS: People rewarded by level, tenure, experience
reputation, sponsorship

CULTURE: Inclusion, sustainability, diversity Citizenship, collective thinking, shared values

 NUMBER OF AGILITY ROUTINES
WITH ABOVE-AVERAGE SCORES

3 or 4 Fewer than 3

Less than
6% 27%
50%

Agile Performance
Assessment: ROA
Percentage of years ROA
Firms with only one or two of the Agility was above industry 51-79% 30% 15%

routines are more likely to have below- average

average ROAs.

More than
18% 3%
80%
01 02 The initiative owner continuously ranks
03
To address the problem, we first form a
list of features based on latest estimates The team then deconstructs top-priority
small, focused, cross-functional, self-
of value to customers, financial results, items into small modules
management team
and impact

The initiative owner builds a list of ideas The team decides how much work to
A process facilitator protects the tea from
or features. This person typically divides take on and how. They build

time between the Agile team & key

stakeholders
distractions and puts its collective
intelligence to work.
working versions in short cycles
known as sprints.
The Six-Step
Process of Agile

04 05 06
Team members hold daily meetings The team tests small working
The team brainstorms ways to
to review progress and identify increments with groups of
improve future cycles
impediments potential customers

If there are disagreements, they are resolved

If the customer gets excited, the increment may be
via experimental feedback loops, instead of Likewise, the team also prepares to go after
released immediately, even if other stakeholders feel
internal debates or appeals to authority. the next top priority in the list.
it’s not ready.
Agile & Transparent Value Centers with Individual Group
P&L Responsibility
Value Zone

Organization Structure
Geographic Customer

Brand Customer

Support services teams – optional/as

C-suite executives overseeing
needed – finance, HR, marketing, Product Customer
long-term view

logistics etc.

Product Groups Customer

Customer Segment Customer

Group up to 150 people

 Workforce Size & Location Model:
Take a mission-oriented approach to workforce sizing
and location
Reporting Structure:
Simplify and delayer your reporting structure
Role and responsibilities:
Build roles and responsibilities up from the businesses and limit HQ
to the minimum necessary to run the businesses
Governance:
Streamline decision making
Supporting Systems & Tools
Ensure the enterprise has the right tools to support an
agile way of working
Architecture Evolution:
Enable the design and evolution of architecture
base on requirements
Delivery Pipeline:
Automate your testing and integration processes to enable
fast and continuous delivery
IT Infrastructure and Operations:
Ensure you have the appropriate infrastructure and
operations to support rapid changes
Leadership:
Train managers to provide vision, inspire, model and
coach rather than direct
Talent Management:
Be ready to attract and retain the best talent
Culture:
Challenge existing culture and mind-sets
Informal Networks and Communication:
Create opportunities for employees to form organic network
Structure People across the organization
Technology Processes Team Processes:
Free up a team’s time to work on value creating activities
Linkage Mechanisms:
Create means for resources from different functions to
collaborate
Planning & Decision Processes:
Recognize that even the best plans can fail, and design planning and
decision making to rapidly test and learn
Performance Management:
Structure performance management based on outcomes

VALUE
• Understand where value is created in
the industry and where company
needs to be distinctive
• Define end-to-end value streams
• Identify elements that can benefit
from greater agility, either more
dynamic or stable
Agile Blueprint
STRUCTURE
• Design the overall structure (eg.
Organizational axes, reporting
lines)
• Identify organizational
groupings, informed by value
streams to create an organization
map
• Define the “capability” axis, eg,
chapters or disciplines
AGILE
TEAMS
• Identify teams and define missions
to deliver value streams
• Select best agile way of working
foreach mission, eg, cross-
functional, flow to work
BACKBONE ROADMAP
• Outline requirements on the core • Decide on implementation
processes, people and technology approach
to enable agility
• Develop high level road
• Identify required changes in map
culture and mind-sets
• Create backlog list
• Prioritize for immediate next
steps
 TRIBE 1 TRIBE 2 REST OF ORGANIZATION

Cell 1 Cell 2 Cell 3 Cell 1 Cell 2

Discipline Traditional Department/

Project

Cross unit discipline

Discipline Department/Project

Discipline

Agile Blueprint:
Self-Managing Cell 01 Specialist Cell Specialist Cell

Tribe Map
Self-Managing Cell 02

Flo-to-work Cell
 Agile Blueprint: Tribe Map

Chapter Lead
SQUAD SQUAD SQUAD SQUAD

Product Owner

TRIBE
CHAPTER TRIBE AGILE Collection of squads with
LEAD COACH interconnected missions

SQUAD
CHAPTER
Basis of new agile organization

CHAPTER
Develops expertise and
knowledge across squads

TRIBE
 Agile Implementation: Do’s and Dont’s

DO THESE

01 Adhere to Agile Principles Inability or unwillingness to apply 01

02 Start Small and Scale Up Lack of leadership support 02

A conflict between Agile principles & our 03

03 Create an Agile Architecture
organization’s operating model

DON’T DO
 Core Pillars of Agile Adoption

1 2 3
Only appoint one boss
for decisions
4 5
Create change in roles before Focus on teams-

Have a cohesive set of change in structures not on individuals Leaders guide with questions,
enterprise level priorities not orders

Be clear who commissions cross-

Although we are creating cross- functional teams, who selects and The collective intelligence of a team is
Individual teams that are focusing functional teams, we should not be replace team members, who appoints more important than individual Agile leaders guide team members with
on small parts of a broader, more making changes to the organizational the team leader, and who approves a intelligence. Agile teams leverage questions—e.g. What do you
complex problem need to see and structure. Instead, we can employ team’s decisions process facilitators to continuously recommend? How could we test that?

work from the same ranked list of Matrix Management. improve the team’s collective This fosters ingenuity and creative
enterprise level priorities. intelligence thinking among the team members.
 Agile Activity Groups
There are 4 Agile Activity Groups that distinguish high-performing
organizations. Each group encompass 3 key activities.

Management and Organizational

Sense of Shared Purpose Sensing Slack in Resources
Autonomy

Change-friendly Identity Communication Risk Management Embedded Change Capability

Robust Strategic Intent Interpretation Learning Performance Management

DYNAMIC MARKET RESPONSE CHANGE

STRATEGY ENVIRONMENT REFINEMENT MANAGEMENT
DEVELOPMENT RESPONSE

01 02 03 04

AGILE ACTIVITY GROUP
Dynamic Strategy Development
01
Sense of Shared Purpose
Value-driven purpose and
business model shared to drive
behavior.
Agile Activity Groups: Example
DESCRIPTION CASE STUDY
Clear, relevant, and shared strategy
undertaken with 3 key activities integrated Company: Your Name Corporation
within the strategy.
• A $16 billion consumer finance powerhouse.
KEY ACTIVITIES • Strategized the 3 elements dynamically.
 A widely shared and well-understood sense of purpose properly codified in its
mission statement and business model.
02 03  Test and learn as the company’s change friendly identity.
 Strategic intent embraces continuous change.
 Rapid shift in operation to adjust the aggressiveness of marketing, customer
Change-friendly Identity Robust Strategic Intent
support, new product development, or R & D and modification of product
Clear sense of company’s identity and Current business strategy and intent features.
direction stable enough to ground the that clarifies how the company
organization. differentiates itself.