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Management & Leadership
of the Agile Organisation
What needs changing?
March 2017
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“Scientific” Management
The Machine model – 3 premises:
1. It is possible to know all you need to in order to plan what
to do
2. Planners and doers should be separated
3. There is but one right way
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The Problem with Power
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The
Powerful
The
Powerless
Ambition
Politics
Mistrust
Fear
Greed
Resentment
Resignation
Our Management ’operating system’
• Management creating plans
• ‘Resource’ allocation
• Milestones
• Steering Groups
• Progress reports
• Measuring individual performance
• Annual budgeting
• Organisation silos
• Timesheets
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Our Operating System is in
need of an upgrade
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The Management Problem
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Outcomes
PlansActions
Knowledge
Gap
Alignment Gap
Effects Gap
Ref: Stephen Bungay, The Art of Action, 2011
The Usual Reactions
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Outcomes
PlansActions
Ref: Stephen Bungay, The Art of Action,
Knowledge Gap:
More detailed
information
Alignment Gap:
More detailed instructions
Effects Gap:
More detailed controls
Helmuth Von Moltke , 1869
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Outcomes
PlansActions
Knowledge Gap:
“Do not command more
than is necessary or plan
beyond the
circumstances you can
foresee”
Alignment Gap:
“Communicate to every unit as much
of the higher intent as is necessary to
achieve the purpose”
Effects Gap:
“Everyone retains
freedom of decision
and action within
bounds
Ref: Stephen Bungay, The Art of Action,
Directed Opportunism
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Outcomes
PlansActions
Knowledge Gap:
Limit direction to
defining and
communicating the
INTENT
Alignment Gap:
Allow each level to define how they
will achieve the intent of the next
level up and ‘backbrief’
Effects Gap:
Give individuals
freedom to adjust their
actions in line with
intent
Ref: Stephen Bungay, The Art of Action,
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Alignment
Autonomy
Intent: what and why
Actions: how
Adapted from: Stephen Bungay, The Art of Action
Confusion
Clarity
Inaction
Effective
Targeted
action
Misdirected action
Alignment needs to be achieved
around intent, and autonomy
granted around actions
High alignment enables high
autonomy
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BA Mission Statement: “To ensure that BA is the
customer’s first choice through the delivery of
an unbeatable travel experience.”
18Source: Michael Sahota, Agile Leadership, 2017
The importance of employee engagement
• Managers account for at least 70% of the variance in
employee engagement scores across business units
–Gallup poll
• Only 35% of people feel engaged in their work. 43%
feel “detached” or “actively disengaged”. 22% feel
“unsupported”
–Towers Watson, 2012 (32,000 people worldwide)
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20Source: Management 3.0, Jurgen Appelo,
A word on Structure
“Any organisation that designs a
system will produce a design whose
structure is a copy of the
organisation’s communication
structure”
- Conway’s Law
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Management is a key factor in
organisational agility –
either constraining or enabling it
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Culture
McKinsey 7 S framework
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Strategy
Structure
Systems
Shared
Values
Skills
Staff
Style
Sahota model
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Schneider model of Culture
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Turn the
Ship
Around!
- L. David Marquet
• Control
• Competence
• Clarity
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Autonomy, Mastery, Purpose
Autonomy, Competence, Relatedness
Control, Competence, Clarity
LEADERSHIP
drives
CULTURE
drives
PERFORMANCE
29Source: Deloitte University Press, Feb 2015
Teams over Individuals
• Work is accomplished by
groups, not individuals
• Individual performance is a
myth
• High performers distinguished
by diverse groups
30Source : Harvard Business School 2004, Betacodex
Empower Teams
• Control through bosses
• Information flows up,
commands flow down
• Top-down decision-making
• Rules for containment
• Control through
Transparency, peer pressure
• Principles, shared
responsibility
31Source : Harvard Business School 2004, Betacodex
Cross-functional Teams
• Groups aligned by function
• Work requires handoffs
between groups
• Co-ordination via managers
• Cross-functional teams
• Co-ordination among peers
• Faster delivery
32Source : Betacodex
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Pluralistic - Green Paradigm
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ACHIEVEMENT PARADIGM
SUCCESS OR FAILURE
HIERARCHY
CORPORATIONS
OUTCOMES
TOP-DOWN DECISION-MAKING
DECISIVE LEADERS
PLURALISTIC PARADIGM
MORE TO LIFE
PLURALISM
NON-PROFITS
RELATIONSHIPS
BOTTOM-UP CONSENSUS
SERVANT LEADERSHIP
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Valve
• ‘Flat’ Structure. No bosses.
• People choose their own projects
• Desks with wheels
• Temporary roles within team
• Peer reviews and stack ranking
• “Like high school”
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38Source: http://www.slideshare.net/reed2001/culture-1798664
Patty McCord, Chief Talent Officer
Evolutionary Purpose
• Living entity
• Strategy emerges organically
• Competition is irrelevant, “competitors” are embraced
• Profits come naturally when focussing on purpose
• Radically simplified budgeting, no variance tracking
• Workable solutions, fast iterations
• Sense what’s needed. No targets
• Change programs irrelevant
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Wholeness
• Self-decorated spaces, no status markers
• Clear values, ground rules
• Meditation, silence, reflection, storytelling practices
• Shape roles according to own need
• Time commitments
• Training in conflict resolution, relational skills, culture-building
• Interviews by future colleagues
• Everyone’s voice is heard in meetings
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Self-management
• No hierarchy. Self-organising teams
• Staff functions performed by teams themselves, esp. hiring,
salaries
• No job titles or job descriptions
• Fully decentralised decision making based on advice process
• Radical transparency of information sharing
• Simplified or no policies for expenses, holidays, working hours
• Formal multi-step conflict resolution process
• Team performance over individual. Peer-based appraisals
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Examples of Teal Organisations
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‘Integral’ model
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Interior Perspective Exterior Perspective
Individual
Perspective
Collective
Perspective
People’s
beliefs and
mindsets
People’s
behaviour
Organisational
Culture
Organisational
Systems
(structures,
Processes,
Practices)
Source: Ken Wilbur & Frederic Lalouxi
‘Integral’ model
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Interior Perspective Exterior Perspective
Individual
Perspective
Collective
Perspective
People are
motivated by
money and
recognition
Individualistic
behaviour, cut
corners to
make the
numbers
Internal
competition,
individual
achievers
Top-down target-
setting,
individual
incentives
Source: Ken Wilbur & Frederic Lalouxi
‘Integral’ model
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Interior Perspective Exterior Perspective
Individual
Perspective
Collective
Perspective
Explore and
challenge
personal beliefs
Role-modelling
from people
with moral
authority
Organisational
Culture
Put in place
supporting
structures,
processes,
practices
Source: Ken Wilbur & Frederic Lalouxi
A few pioneering organisations are
showing us the way to
Organisations inspired by the next
stage of human consciousness
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