Agile Operating Model

training@HyperdriveAgile.com
www.HyperdriveAgile.com
When Strategy Needs Agile
Stacey Louie
Understanding Agile
Operating Models
CEO, Hyperdrive Agile
slouie@HyperdriveAgile.com

The purpose of today is to…
1. Understand Agile Strategy & Operating Models
2. Aligning Teams to a Vision and Business Model
Purpose of Today

1. The business must be made effective.
2. Business potential must be identified and realized.
3. The business must be made into a different business for
a different future.
Drucker’s Economic Tasks of Leadership

• Is AGILE a STRATEGY?
VOTE!

• What is Strategy?
Strategy
Strategic positions can be based on customers’
needs, customers’ accessibility, or the variety of
a company’s products or services.
-- Michael Porter

• Examples of Strategy
Strategy
Pick a Company – write down the strategy.
• Your own
• Southwest Airlines
• Amazon
• Spotify
• Ikea
• Toyota

www.hyperdriveagile.com
Strategy, Operating Model, Execution
7
The operating model serves as a bridge from strategy to execution.

8

9

A way that organizations operate to maximize
outcomes in an environment of new strategy and
execution demands
… using Agile patterns.
Agile as an Operating Model

• Why did your organization
implement Agile?
• What surprises did you have?
• Where has it fallen short of your
expectations?
• How many of you mapped the
business’ strategy into Agile?
Back to the Future

Look for the Breakdowns
“Operational effectiveness and strategy
are both essential to superior
performance... achieving excellence in
both is related to competitive success.”
- Michael Porter, Author and Harvard Business School
1

What part of the Operating Model are impacted?

What is an Agile Operating Model?
1

What is an Agile Operating Model?
• A way that organizations operate to maximize outcomes in
an environment of new strategy and execution demands
using Agile patterns.

Breakdown Solutions
• Using one of your “Breakdowns”, what Agile patterns could
be used to solve areas in the existing Operating Model.

BESo

BESo
Breakdown Evidence Solution

Breakdown Solutions
• In your existing operations – where could you regularly
examine the Breakdowns?
• What “agile patterns” can help the Inspect/ Adapt cycle
occur faster at Strategic levels?

Any foreign innovation in a corporation will stimulate the
corporate immune system to create antibodies that destroy it.
Cuckoo Effect
“Every business regards what happened in the past
as normal, with a strong inclination to reject as
abnormal whatever does not fit the pattern.”
– Peter Drucker, Managing for Results

2

• Projects with Agile are 3.5x more likely to be successful.
• Waterfall projects fail 3x more than Agile.
• What does this tell us about our Agile Teams?
Successful
39%
Challenged
52%
Failed
9%
AGILE
Successful
11%
Challenged
60%
Failed
29%
WATERFALL
Source:
Standish
Group
2016
CHAOS
report.
Data
covers
FY2011-‐2015
across
10,000
projects.

Scrum as an Enabler
A framework within which
people can address
complex adaptive problems
while productively and creatively
delivering products
of the highest possible value.

• 3 Roles:
– Product Owner
– Delivery Team
– ScrumMaster
Scrum: Deceptively Simple – Yet Complex
• 5 Events:
– Sprint
– Sprint Planning
– Dally Stand-up
– Sprint Review
– Retrospective
• 3 Artifacts
• Product Backlog
• Sprint Backlog
• Increment

Daily

Stand
up
Scrum: Refresher
Sprint
Feature
n
Feature
3
Feature
2
Feature
1
Sprint
Backlog
Product
Ideas
Product
Increment
User
Story
User
Story
User
Story
User
Story
User
Story
User
Story
Sprint
Planning Sprint
Review
Sprint

Retrospective

Embrace an Agile Mindset
"If you start by saying, 'Let’s implement a practice', you will
get to the end of it very quickly and you will have changed
very little in your organization and then you will find yourself at
a dead end."
-- Gary Hamel
2

“All
models
are
wrong;
but

some
are
useful.”
-‐ Dr.
George
Box,
author
and
statistician

Cynefin by David Snowden
Source:
Edwin
Stoop

• Complexity of decisions are
impacted by the
understanding of both How
and What.
• The nature is to move
issues from chaos to
simple by gaining
knowledge of How or
What.
The Stacey Matrix

“The biggest barrier we experienced
was lack of clarity. Like a piece of
information that maybe didn’t get
shared at all levels, or in some cases
a lack of clarity as to what success
looked like.”
– Andy Worshek, Chief of the Boat
(retired), USS Santa Fe
Aligning to a Product Vision

• What does your
Product Business Plan
look like?
• What ways can help
get the team aligned?
Lean Canvas

“Agile enables organizations to master continuous change. It
permits firms to flourish in a world that is increasingly volatile,
uncertain, complex and ambiguous.”
- Steve Denning, Forbes
Agile is Values & Principles Based

• Head of Agile Practice
• Leader of 2 Agile Leadership Networks
• Founder of AgileCamp
• Former CIO/ CTO Verisk Analytics & Stewart
Technology
• Product Management at Oracle (built Oracle ERP/
CRM Suite 11i)
• Former Xerox PARC
• Led Software Development, Network Operations,
DevOps, Product Management, and PMO
Stacey Louie
Enterprise Agile Coach and Trainer
slouie@HyperdriveAgile.com
@epicstart

Agile Operating Model

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