XP2014 talk: Driving Company Evolution Using a Complex Dynamic System Approach
One of a leaders’ biggest challenges is to lead through complexity. As companies consist of formal and informal networks of people working in ever changing, uncertain technical and business environments, they can be regarded as Complex Dynamic Systems. According to Dave Snowden and his Harvard Business Review article from 2007, a good leadership/management approach to complex dynamic systems is “Probe-Sense-Respond”, i.e. experiment with the system to find advanced ways to maximize (business) value. A crucial part of this approach is to work effectively with the company’s tangible and intangible constraints. Also, Peter Senge in his book "The fifth discipline" is introducing Systems Thinking as a key to the Learning Organization. This talk will give a brief introduction into the topic of complex dynamic systems. Based on this I will introduce a tool that me and my team have developed and are experimenting with at Ericsson. The tool helps us to manage the constraints of our complex dynamic company system in a structured way. I will give practical examples of system changes we have done and how we are using the tool to further evolve our company.
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XP2014 talk: Driving Company Evolution Using a Complex Dynamic System Approach
- 1. Hendrik Esser Director, Portfolio & Technology Management @HendrikEsser Supporting Agile Adoption
- 2. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 3 Why did our agile transition succeed?
- 3. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 4 Our transition People Practices Processes Structures 1 23 “Our process is not good enough” “No Silos + Our structures need to support the way we work” “Oops! Almost forgot something!”
- 4. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 5 Our transition: changes People Practices Processes Structures 1 23 Scrum Kanban Uncertainty Management New Organization New roles New Governance Wanted culture Leadership mindset Recruitment of leaders
- 5. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 6 Insight: We have addressed the (whole?) “System”
- 6. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 7 Manage / Lead The company as a System?
- 7. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 8 Cynefin Dave Snowden, HBR Article, Nov 2007 SIMPLE COMPLICATEDCOMPLEX CHAOTIC sense-categorize-respond sense-analyze-respondprobe-sense-respond act-sense-respond DISORDER
- 8. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 9 The Learning Organization Peter Senge, The fifth discipline Systems Thinking Team Learning Shared Vision Mental Models Personal Mastery Real World Decision Results Decision Rules Mental Model
- 9. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 10 How could we (Leaders) make use of this, practically
- 10. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 11 Understand the organization as a complex dynamic adaptive system Lead by vision + setting/managing constraints (continuously) Need to (continuously) align mental models to achieve a shared vision Evolving an organization
- 11. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 12 Constraints People Processes Structures Behavior Capabilities Interdependencies
- 12. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 13 Basic procedure Develop a hypothesis on how the System works, explaining the observed phenomena (Discussion mental model alignment) Decide what changes you want to trigger towards constraints (Discussion shared vision) Observe the emerging system response and iterate/fine-tune.
- 13. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 14 The tool ProcessesStructures Behavior Capabilities Target/ Goal/ Vision
- 14. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 15 The tool ProcessesStructures Behavior Capabilities Target/ Goal/ Vision Behavior Mindset/attitude Values Competence Skills # people Hidden talent Processes Practices Tools Habits Organization Governance Remuneration Roles (Informal) networks
- 16. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 17 ProcessesStructures Behavior Capabilities Manage Uncertainty Communicate Make uncertainty visible Accept, that uncertainty is always there Share views and insights Speak up when you see something unexpected React constructively on surprises Show and discuss uncertainty in governance meetings Frequent meetings to digest updates/new insights Distributed planning on different levels Iterative development feedback loop Communication structure Manage expectations anticipate expectations and address them Translate uncertainty into realistic expectations (customers, internal stakeholders)
- 17. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 18 ›Analyze/understand issues/problems/impediments ›Propose system solutions to issues/problems/impediments ›Propose system changes to achieve a goal/target/vision ›Follow-up on made implemented system changes ›Adapt to a changed goal/target/vision ›… use cases
- 18. Hendrik Esser | © Ericsson AB 2014 | 2014-05-20 | Page 19