Management 3.0 in 50 minutes


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Excerpts from the Management 3.0 course. See:

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  • This slide will be on screen when people enter the room before the course starts.
  • I sometimes get the question “why 3.0”?See book: pagesxxxiv to xxxv
  • Here I show the many reasons why companies adopt Agile, according to the VersionOne research.
  • Here I show the problems with Agile adoption, and I point out that most of them are management responsibilities!See book: page 28
  • Peter Drucker knew already decades ago that management is about people.But he also pointed out why management is a crucial role in organizations!It is therefore not true that organizations don’t need managers, as some Agilists seem to claim.
  • I briefly explain the six management views according to Martie the management model, as described in the book.I also explain that in the rest of the course we will treat and discuss each of these views one by one.
  • Here I refer to “Embrace Change”, the subtitle of the famous Kent Beck book about Extreme Programming.And the primary reason for organizations to be Agile: coping with changing environments.
  • Here I refer to the first value of the Agile manifesto.
  • The “long tail” and the “strength of weak ties” are both metaphors that suggest that the sum of all small things in a social network can together be more powerful than the few strong things in the network.Likewise, several weak models can be more powerful than one strong model.In social systems we only have weak models (no strong mathematical models).Therefore, we need multiple models to make sense of the world around us.
  • Experimentation is often forgotten on Agile teams.They only do (lots of) adaptation and (a bit of) anticipation.
  • The practices you try will influence the system, but the system will also influence the practices you try.
  • I did some research into intrinsic desires and found several interesting sources.First is the 16 basic desires.See book: page 80-82
  • Some of these 16 basic desires I think are not really applicable in organizations.(Note: some students have claimed that Tranquility and Physical Activity could be addressed in an organization too.)
  • In Self-Determination Theory I found 3 more.
  • That gives us 10 intrinsic desires. A nice round number. 
  • And then there are 3 basic desires referred to in Daniel Pink’s book Drive.But they all map to what we already had.(Note: actually Daniel Pink refers to Self-Determination research in his book, but doesn’t follow it exactly.)
  • The final result, reviewed briefly on the following slides...
  • I explain that the 360 degree evaluation is, in principle, a good idea. Because the point is to let the system (the team) generate its own feedback about its parts (team members).However, in some companies it is implemented badly. There are even HR tools that fully automate the 360-degree process, enabling people to fill out forms via email, anonymously, about each other. This is very bad for trust and respect in the organization.I explain that the last time I organized a 360 degree evaluation I did it during dinner with the whole team. It was a great and very useful experience.See book: page 242-245
  • Both Jeff Sutherland and Henrik Kniberg have expressed that the happiness index is for them the first metric to use to monitor the motivation on a team.Also see:
  • I have promoted the use of Twitter in my last organization, because it gave people the opportunity to learn more about each other’s lives.
  • See book: page 111-112
  • See book: page 127-129
  • The nice thing about this approach is that there is an urge to make things flow from left to right, just like a regular task board.
  • I explain that complexity researcher Dave Snowden says in his keynotes that stories/narratives work better than values or vision statements. And I show with this picture that we used a lego model of metaphors, combined with photos and video, to craft the vision for the ALE network.
  • I start this module by explaining there are various models about competence development.The Shu-Ha-Ri model is the best known one in Agile circles.Here I also explain that, according to research, journeymen are best able to teach apprentices, and masters can teach journeyman.The gap between masters and apprentices is sometimes too big.
  • I explain that (in my opinion) real competence means having both skill and discipline.
  • And so these are the 7 approaches to competence development.It starts with the first one: self-development. You can forget about the rest if that one doesn’t work well.But the other approaches can help to improve the effectiveness.
  • We can use this grid to check what parts of our complex system we want to measure.We can never hope to measure everything. But we can do our best not to forget what’s important.This grid will help us with that.I point out that the balanced scorecard has promoted a similar concept: multiple metrics to cover the entire organization. But the balanced scorecard was used in a management 2.0 manner, on the old hierarchical architecture of a business.
  • Fractals (from chaos theory) have the same properties at all scales.That also means the same communication overhead at all scales!That’s why organization experts aim for organizational designs following fractal principles.We aim to be able to scale our organizations without being bogged down by bureaucracy.
  • I believe we should see all teams as value delivering units. They do stuff for other teams, or for stakeholders (customers, shareholders, etc).I give examples of the good experiences I have with system administrators and a design unit treating Scrum teams as their customers. The Scrum teams were allowed to choose whether or not to use their services.The same should apply for other kinds of teams, like PMO’s and HR departments.
  • Many people don’t realize that creating awareness is not enough. Then you are only addressing the rational side of people. The ADKAR model says there are 4 other things to do at the personal level.
  • The Adoption Curve says that behaviors spread through different kinds of people at different times.
  • I added one “I” to the “4 I’s” that were discussed earlier in the course.Because I think “Infrastructure” can be treated separately from “Information”.
  • Management 3.0 in 50 minutes

    1. version 4
    2. Jurgen Appelo writer, speaker, entrepreneur...
    3. Scrum Mike Cohn. Succeeding with Agile: Software Development using Scrum, 2010 3
    4. Lean Startup ideas productdata measure Eric Ries,The Lean Startup: HowToday's Entrepreneurs Use Continuous Innovation…, 2011
    5. DesignThinking Richard Buchanan, “Wicked Problems in Design Thinking” viability feasibilitydesirability
    6. Benefits Obtained from Agile 6
    7. 7
    8. Management is about human beings. Its task is to make people capable of joint performance […]. This is what organization is all about, and it is the reason that management is the critical, determining factor. Management: Revised Edition, 2008 Peter F. Drucker 8
    9. Management is too important to be left to the managers. 9
    10. Management3.0 10
    11. A team is a complex adaptive system (CAS), because it consists of parts (people) that form a system (team), which shows complex behavior while it keeps adapting to a changing environment. 11
    12. Anticipate, adapt, explore Apart from looking forward (proactive), and looking backward (reactive), don’t forget to try things out (safe-to-fail experiments). Evolutionary systems by their nature involve experimentation. Mike Rother, Toyota Kata, 2009 12
    13.  2011 Alex S. Bayley,CreativeCommons 3.0 Experiment with tools, techniques, and architectures.
    14. Shorten the feedback cycle Systems with slower feedback cycles have higher extinction rates. The only way to win is to learn faster than anyone else. Eric Ries, The Lean Startup, 2011 14
    15.  2007 Alexis O’Connor, Creative Commons 3.0 From 4-week sprints to continuous delivery in a few years.
    16. Steal and tweak Successful systems spend most of their time copying and adapting ideas from others. We usually think of innovation as inventing new things, but we may be smarter to think of it as recombining old ones. TheBuildNetwork, “A Smarter Definition of Innovation” 16
    17. Feedback door + happiness index = happiness door.
    18. Management3.0 18
    19. People are the most important parts of an organization and managers must do all they can to keep people active, creative, and motivated. 19
    20. 10 Intrinsic Desires Curiosity The need to think Honor Being loyal to a group Acceptance The need for approval Mastery / Competence The need to feel capable Power The need for influence of will Freedom / Independence / Autonomy Being an individual Relatedness / Social Contact The need for friends Order Or stable environments Goal / Idealism / Purpose The need for purpose Status The need for social standing 20
    21. Put the motivator cards in order, from unimportant1. to important (You may leave out any cards you don2. ’t want to use.) Exercise: Moving Motivators 21
    22. Consider an important change in your work (for example,3. becoming a more Agile organization) Move cards4. up when the change is positive for that motivator; move them down when the change is negative Exercise: Moving Motivators positive change negative change 22
    23. Teams can self-organize, and this requires empowerment, authorization, and trust from management. 24
    24. 1. Tell: make decision as the manager 2. Sell: convince people about decision 3. Consult: get input from team before decision 4. Agree: make decision together with team 5. Advise: influence decision made by the team 6. Inquire: ask feedback after decision by team 7. Delegate: no influence, let team work it out The Seven Levels of Authority
    25. Self-organization can lead to anything, and it’s therefore necessary to protect people and shared resources… …and to give people a clear purpose and defined goals. 27
    26.  2007 Bert Werk, Creative Commons 3.0
    27. Teams cannot achieve their goals if team members aren’t capable enough, and managers must therefore contribute to the development of competence. 32
    28. Support emerging creativity.  2012 Jurgen Appelo, taken at Cisco SystemsNorway,Oslo
    29. Many teams operate within the context of a complex organization, and thus it is important to consider structures that enhance communication. 35
    30. Informal structures.  2012 Elliott Brown, Creative Commons 2.0,
    31. Value units System administrators GUI designers Project Mgt Office Community of Practice Center of Excellence Human Resources ... Delivering value to others
    32. People, teams, and organizations need to improve continuously to defer failure for as long as possible. 38
    33. Track happiness to better understand improvement.  2012 Jurgen Appelo, taken atVI Company, Rotterdam
    34. The Management 3.0 model Six organizational views based on complexity thinking
    36. @jurgenappelo
    37. This presentation was inspired by the works of many people, and I cannot possibly list them all. Though I did my very best to attribute all authors of texts and images, and to recognize any copyrights, if you think that anything in this presentation should be changed, added or removed, please contact me at