Agile, Management 3.0, Holacracy...what next?

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Information about Agile, Management 3.0, Holacracy...what next?

Published on March 1, 2014

Author: Managewell



My talk at #AgileIndia2014 on what are some of the key trends concerning workgroups and workplaces.

Agile, Management 3.0, Holacracy… …what next? Tathagat Varma, VP Strategic Process Innovations,

Let’s break something today! Agile Manifesto Agile Management 3.0 Holacracy Lattice #NoManager What next? …starting with some mental models…

Why were Pyramids built? To preserve the dead!

Why were Hierarchies built?

Taylor ‘s Prescription, 1911 “I  can  say,  without  the  slightest  hesita3on,'   Taylor  told  a  congressional  commi9ee,   'that  the  science  of  handling  pig-­‐iron  is  so   great  that  the  man  who  is  ...  physically   able  to  handle  pig-­‐iron  and  is  sufficiently   phlegma3c  and  stupid  to  choose  this  for  his   occupa3on  is  rarely  able  to  comprehend   the  science  of  handling  pig-­‐iron.”  

“Managers and Overheads”

Can’t they a bit less hierarchical? …a bit more simple, functional and even a bit more beautiful?

World’s first (finest?) modern org chart… NY & Erie Railroad, 1855 PS: Who is at top / bottom?

Disney Org Chart, 1943 PS: Where is the hierarchy? h#p://­‐building/disney-­‐organiza<on-­‐chart/    

…and then it got ugly

…real ugly!

Is hierarchy working after all?

Let’s start from the beginning… …of this century!

Agile Manifesto, 2001 “Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.” “The best architectures, requirements, and designs emerge from self-organizing teams.” Never talked about ‘structure’!

So, who killed hierarchy then?

It was Scrum that killed the “Manager”! …though not the “management”

Traditional Manager – Authority = “Scrum Master”

So, who does the “management”? The “Team” Pic  -­‐  h#p://­‐teams-­‐self-­‐organize-­‐for-­‐project-­‐success/    

Has that really happened? Maybe / Maybe Not! Hint: just search if companies claiming to be Scrum shops still hire old-style managers?

Management 3.0, c 2011 “I believe that Agile software development has overlooked the importance of (line) management. If managers don’t know what to do and what to expect in an Agile organization, how are they supposed to feel involved in a transition to Agile software development? What is the message of Agile here? If it’s just “we don’t need managers,” it’s no wonder Agile transitions are obstructed all over the world.(Page 27).” Management 1.0 = Hierarchies Management 2.0 = Fads Management 3.0 = Complexity


What does Management 3.0 mean? Energize People •  People are the most important part of an organization and managers must do all they can to keep people active, creative and motivated Empower Teams •  Teams can self-organize, and this requires empowerment, authorization and trust from the management Align Constraints •  Self-organization can lead to anything, and therefore it’s necessary to protect people and shared resources and to give people a clear purpose and defined goals Develop Competence •  Teams cannot achieve their goals if team members are not capable enough, and managers must therefore contribute to the development of competence Grow Structure •  Many teams operate within the context of a complex organization, and thus it is important to consider the structure that enhance communication Improve Everything •  People, teams and organizations need to improve continuously to defer failure for as long as possible

Holacracy® •  Holacracy is a real-world-tested social technology for purposeful organization. •  It radically changes – how an organization is structured, – how decisions are made, – and how power is distributed. •  Is NOT Leaderless! •  Focus is on work, not people!

How it changes with Holacracy? In Conventional Organizations Formal Structure “Requisite” Structure h#p://­‐wrong-­‐with-­‐your-­‐organiza<onal-­‐ Extant Structure With Holacracy

Holacracy h#p://­‐risky-­‐venture-­‐indeed/    


The  Corporate  LaJce  –  Cathleen  Benko  and  Molly  Anderson  

#NoManager / Boss-free •  Flat / Horizontal Organization, Delayering •  No or very few levels of middle management •  Promotes employee involvement –  through decentralization and empowerment •  Rotating Team Leaders – 37Signals, Valve •  Open Allocation – Valve, GitHub Inc, Treehouse, •  No Manager – The Morning Star Company, Gore

“Become leaders based on ability to gain the respect of peers and to attract followers.” “Relationships are everything at Gore” “Everyone at Gore has a Sponsor” •  Team-based, Flat Lattice since 1958! •  Revenue: $3B, Staff: 10,000 •  No traditional org charts, no chain of command, nor predetermined channels of communication •  “You will be responsible for managing your own workload and will be accountable to others on your team. More importantly, only you can make a commitment to do something (for example, a task, a project, or a new role)--but once you make a commitment, you will be expected to meet it. A "core commitment" is your primary area of concentration. You may take on additional commitments depending on your interests, the company's needs, and your availability.”

“We’ve been boss-free since 1996” Where  Google  boasts  20%   free  <me  for  its  employees,   Valve  boasts  100%  free   <me.     h#p://­‐24205497     •  400+ employees, $2B-4B revenue? •  anarcho-syndicalism. Effectively, free association of employees with one another •  Valve's basic approach to "managing without managers" is: –  hire only incredibly self-motivated people –  give them full autonomy to decide what project to work on –  teach them to spot valuable projects, and to understand what value they can add to those projects –  allow team structure to happen organically - teams self-select, leaders are chosen by their peers –  encourage people to acknowledge and learn from mistakes quickly to move forward –  make everyone responsible together for the success or failure of projects •  and finally (and most critically): –  determine the value and compensation of each employee by peer review

Founded:  1999,  Calls  its  execu<ves   ‘Monkeys’   Staff:  1500+,  Revenues:  $  2.1B   (2011)   2013  Nov:  Embraced  Holacracy   1-­‐year  project  that  will  see  400   ‘circles’  in  ‘holarchy’   h#p://­‐company-­‐without-­‐job-­‐<tles-­‐will-­‐s<ll-­‐have-­‐hierarchies/    

Microsoft is changing… Satya  Nadella     CEO,  Microsof   “So how do you create that selforganizing capability to drive innovation and be focused? …To me, that is perhaps the big culture change — recognizing innovation and fostering its growth. It’s not going to come because of an org chart or the organizational boundaries. Most people have a very strong sense of organizational ownership, but I think what people have to own is an innovation agenda, and everything is shared in terms of the implementation.”

Why are they all changing? Hierarchies  force  standardiza<on  and  compliance  –  and  kill  employee     mo/va/on  which  is  big  deal  for  any  industry,  any  company  today!   Hierarchies  create  predictability  –  which  is  good  in  short-­‐term,  but   resist  change  and  kill  innova/on  which  is  bad  in  long-­‐term   Hierarchies  are  too  slow  for  today’s  fast-­‐paced  VUCA  world,  and  the   leaders  must  rely  on  360  Degrees  of  Wisdom  to  steer  their  ship   Hierarchies  are  too  costly,  especially  when  many  young  workers  don’t   like  “adult  supervision”,  esp  from  people  with  an<quated  skills     Hierarchies  create  func<onal  silos  that  impedes  collabora/on  and   generates  organiza/onal  inefficiencies  

Other forces… • Remote workers • Career progression • External networks

Working remotely is good for business!

Horizontal Career Path h#p://­‐DEVELOPMENT/mapping-­‐out-­‐your-­‐career.aspx    

Cross-functional Career Path h#p://­‐DEVELOPMENT/mapping-­‐out-­‐your-­‐career.aspx    

Ladder vs. Lattice h#p://­‐by-­‐Content-­‐Type/deloi#e-­‐review/e207a920f718d210VgnVCM2000001b56f00aRCRD.htm    

The  Corporate  LaJce  –  Cathleen  Benko  and  Molly  Anderson  

This is my network! How about yours?

Adult Supervision on-demand •  Employees want to be left alone •  But managers should be there when employees need them! Horses for courses •  Networks for innovation, agility and speed •  Hierarchy for efficiency, predictability and scale Distributed and Rotating leadership •  Shared leadership and decisionmaking across the board •  No permanency or carry-over of roles

References •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •

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