THE FUTURE OF MANAGEMENT
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David Jensen
BSc Business Computing Systems (Hons)
Graduated 2005
@elgrom
Head of Development at Metro Newspapers (DMGT)
Manage two cross functional technical teams delivering software to hit Metro’s mobile audience and revenue targets
Recently launched Metro Play a new start up gaming business
Previously worked in businesses ranging from all stages of start up to multinational corporations
WHO AM I
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The History of Management
The Rise of the Knowledge Worker
Agile
Radical Management
Organisational Design
WHAT WE ARE GOING TO COVER
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THE FUTURE OF MANAGEMENT
“Tomorrow’s business imperatives lie outside the performance envelope of today’s bureaucracy-infused management practices” – Gary Hamel
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The "rst traditional manager was the person who designed and built the pyramids four thousand years ago
WORK AS A SYSTEM OF THINGS
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USA, October 5th, 1841 two trains on the Western Railroad had a head on collision
Following a public outcry Major George W. Whistler tasked with creating an organisation to prevent this from happening again
He had two options to base his decision…
FAST FORWARD 4000 ODD YEARS
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Steep Hierarchy
Control from the centre
Focused on order and certainty
Practices:
» Centralisation, Coercion, Formality, Tight Rein, Imposed Discipline, Obedience, Compliance
ARMY CONTROL STRUCTURE
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Unless people are tightly controlled, they might do the wrong thing
Goal is to reach optimal decisions, even if they weren’t the most rapid
Linchpin is brilliant General at the top giving directions
Communications top down, explicit and linear
Management style was directive and transactional
FOUNDATIONS BASED ON MISTRUST
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Values established at the centre alongside a set of principles to be followed
Application of values and principles handled at lower levels depending on local knowledge
Self-discipline and individual initiative highly valued
Great deal of trust placed on individuals
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Major Whistler chose:
» Central o"ces to be run by “managers”
» Chain of command
» Clear lines of authority
» Clear descriptions of responsibilities
DECISION TIME
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Out of chaos and confusions, it created order, workability, and predictability
The risk that such a system might limit individual initiative, #exibility, and innovation seemed less important than the goal of creating order
THE APPROACH
“In the past, Man has been first. In the future, the system must be first.”
Frederick Winslow Taylor
The Principles of Scientific Management (1911)
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THE FUTURE OF MANAGEMENT
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Assembly Line (1913)
» Sliced labour into tiny parts which was reconstituted as a process controlled by management
» After initial revulsion from workers Ford eliminated other companies that did not adopt
» Ford prospered even if the jobs were monotonous
HENRY FORD
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Ford’s system was more productive for the company but not agile enough for the customers
Constantly produced too many or not enough cars.
NOT AGILE ENOUGH FOR CUSTOMERS
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Alfred Sloan at General Motors (1920s)
» Created decentralised divisions
» Operations not seen as a top management responsibility
Executives managed by numbers:
» Output, inventory, sales, margins, market share, pro#t and loss
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Top management reviewed if each division was performing in accordance with their plan.
» If not they made adjustments
Managerial work was sliced into smaller pieces in the same way that manual work had been
ACCORDING TO THE PLAN?
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Lack of management involvement created a risk that its decisions would not correspond with realities of the workplace
1950’s & 1960’s this was a minor risk due to the growing demand for goods and services and barriers to entry into the market
In a world where paying customers could be taken for granted adding more workers and managers simply equaled more pro"ts
PLANNING, PROGRAMMING & BUDGETING
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By the 1990’s the situation had changed
» Rise of the global economy
» Global networks of partners
» Escalating power of customers
» Multiplications of media channels
» Rise of knowledge workers
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Take advantage of technology to minimise hando$s and enable smaller teams to work on tasks from start to "nish
Managers were not required to change their behavior
Technology introduced did little to address root causes
Experts often didn’t understand work requirements
BUSINESS PROCESS REENGINEERING
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Processes changed were introduced without basic changes in behavior of the managers or the workers
The problems caused by those behaviors continued
#FAIL
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In the past 25 years start-ups have created 40 million jobs in the USA, established "rms created none.
Economies of scale evaporating
Barriers to entry eroded
Competition has intensi"ed
Increasingly disloyal customers
THE CRISIS WORSENS
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SOCIAL DARWINISM
http://www.slideshare.net/elgrom/saved!les?s_title=o"cial-slideshare-for-whats-the-future-of-business&user_login=briansolis
“Workers throughout history could be ‘supervised’. They could be told what to do, how to do it, how fast to do it and so on. Knowledge workers cannot in affect be supervised” – Peter Drucker
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Knowledge workers are employees who have a deep background in education and experience and are considered people who "think for a living.”
What di$erentiates knowledge work from other forms of work is its primary task of "non-routine" problem solving that requires a combination of convergent, divergent, and creative thinking
Knowledge workers spend 38% of their time searching for information
THE RISE OF THE KNOWLEDGE WORKER
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Analyzing data to establish relationships
Assessing input in order to evaluate complex or con#icting priorities
Identifying and understanding trends
Making connections
Understanding cause and e$ect
Ability to brainstorm, thinking broadly (divergent thinking)
Ability to drill down, creating more focus (convergent thinking)
Producing a new capability
Creating or modifying a strategy
KNOWLEDGE WORKER BENEFITS
“Equipping organisations to tackle the future would require a management revolution no less momentous than the one that spawned history.” Gary Hamel
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Early software development
» Always late
» Over budget
» Plagued by problems
In 1993 Je$ Sutherland asked the question… “Is there some way that I can transform a group of fairly ordinary developers into something extraordinary?”
SOFTWARE DEVELOPMENT TRANSFORMED
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Self-organising teams used in a crisis had proven to be the best model for handling innovation
» Clear goal that was viewed as something important
» Deadline based
» Space to get the work done
» Cross-functional
» Less that eight or nine people
» Output completely done by the deadline
HIGH PERFORMING TEAMS
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The role of management was to set direction, eliminate anything that was preventing the team from performing at an extraordinary level and then get out of the way.
ROLE OF MANAGEMENT
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1995 Je$ Sutherland and Ken Schwarber presented a paper called SCRUM Development Process at a software conference
2001 The Agile Manifesto was signed in Snowbird, Colorado
AGILE WAS BORN
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We have come to value:
» Individuals and interactions over processes and tools
» Working software over comprehensive documentation
» Customer collaboration over contract negotiation
» Responding to change over following a plan
THE AGILE MANIFESTO
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Our highest priority is to satisfy the customer through early and continuous delivery of valuable software.
Welcome changing requirements, even late in development. Agile processes harness change for the customer's competitive advantage.
Deliver working software frequently, from a couple of weeks to a couple of months, with a preference to the shorter timescale.
12 PRINCIPLES OF AGILE
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Business people and developers must work together daily throughout the project.
Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.
The most e%cient and e$ective method of conveying information to and within a development team is face-to-face conversation.
12 PRINCIPLES OF AGILE
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Working software is the primary measure of progress.
Agile processes promote sustainable development. The sponsors, developers, and users should be able to maintain a constant pace inde"nitely.
Continuous attention to technical excellence and good design enhances agility.
12 PRINCIPLES OF AGILE
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Simplicity--the art of maximizing the amount of work not done--is essential.
The best architectures, requirements, and designs emerge from self-organizing teams.
At regular intervals, the team re#ects on how to become more e$ective, then tunes and adjusts its behavior accordingly.
12 PRINCIPLES OF AGILE
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Focus work on delighting the client
Work in self-organising teams
Work in client driven iterations
Deliver value to clients at each iteration
Be totally open to impediment to improvement
Create context for continuous self-improvement
Communicate through interactive conversations
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Where the work is best done alone
Where work has a small knowledge component
Where a public sector organisation must be neutral
WHERE THIS DOESN’T WORK
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Net Promoter Score
» How likely are you to recommend these goods or services to someone else?
» Apple’s key metric
One unhappy customer can now tell millions through social media
“United Breaks Guitars” by Canadian singer David Carroll now has been viewed over 13 million times on YouTube
DELIGHT YOUR CLIENTS
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When we collaborate with people di$erent to us we begin see the world through their eyes
False assumptions are much quicker to be discounted
However
» Problem must complex
» Group must be cognitively diverse
» Group must given responsibility
» Must be focused on solving the problem
SELF-ORGANISING TEAMS
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Clear focus on client allows better decisions to be made quicker
Prioritisation based on clients value ensures that they are delighted sooner
User stories best way of capturing requirements, these are the beginning of the conversation rather than the end
CLIENT DRIVEN ITERATIONS
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Constantly delivery helps to keep client delighted
Encourages work to be broken down into smaller pieces
Ensures that feedback can be incorporated into the process as early as possible
DELIVER VALUE IN EACH ITERATION
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Daily meeting where everyone shares what they are working on and any impediments
When an impediment is raised they must be dealt with e$ectively
Visual displays of simple information that anyone can understand are a requirement
RADICAL TRANSPARENCY
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Retrospective meetings at the end of every iteration
Requires and open and honest environment
Requires a willingness to have change as a constant
Actually "nding the root cause of a problem is not always straight forwards
CONTINUOUS SELF-IMPROVEMENT
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Authentic narratives, open-ended questions and conversations
Communications based on stories are much more e$ective than abstractions
This is how people naturally think and allows everyone to engage in the process
INTERACTIVE COMMUNICATION
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Adapt practices to your context
Form a nucleus for change
Proceed through conversations
Establish a beachhead
Begin in a safe place
Use common terminology
Let ideas evolve
HOW TO ACHIEVE CHANGE
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Converted from traditional to radical practices over three months in 2007
» 94% more features delivered in year 1
» 38% more features per developer
» 500% more value to customers delivered
SALESFORCE
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FLATTENING BUREACRACY
CEO COO CFO Fin1 Fin2 Fin3 CTO Eng 1 Eng 2 Eng 3 CMO Mar 1 Mar 2 Mar 3 http://www.slideshare.net/JoaquinVRoca/killing-hierarchy-2
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Have all the skills and tools needed to design, develop, test, and release to production
Self- organizing team and decide their own way of working
Have a long-term mission
Experts in their area
10% of their time on “hack days”
No formal leader
“Think it, build it, ship it, tweak it”.
Mini startup
SPOTIFY - SQUADS
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Collection of squads that work in related areas
Physically located in the same o%ce
“incubator” for the squad mini-startups
Tribes hold gatherings on a regular basis
» Demos, New Tools, Techniques
Designed to be smaller than 100 (Dunbar Number)
SPOTIFY - TRIBES
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Allow some economies of scale without sacri"cing too much autonomy
Chapter
» A chapter is people having similar skills and working within the same general competency area, within the same tribe.
» Line management is done via chapter
Guild
» A Guild is a more organic and wide-reaching “community of interest”, that want to share knowledge, tools, code, and practices
» Guild usually cuts across the whole organization
» Share knowledge continuously and meet regularly to collaborate on the high level organizational improvement areas
SPOTIFY - CHAPTERS AND GUILDS
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Organisations should not blindly adopt a future, but they should clearly articulate their vision, and then actively grapple with the implications of that vision, on every dimension. Successful execution is not about the most e%cient individual transactions, but about sustaining the organisation over the long term. Only by empowering a culture that clearly places current work in the context of longer-term goals does the current work becoming meaningful—and that context is now multilayered, no longer just about a company and its employees, but about the entire ecosystem of relationships, from partners to contractors, to employees and customers.
http://www.cisco.com/en/US/prod/collateral/ps10680/ps10683/ ps10668/C11-657924_design_org_next_WP.pdf
FINAL THOUGHTS
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What Matters Now – Gary Hamel
The Lean Startup – Eric Reis
The Power of Pull - John Hagel, John Seely Brown and Land Davison
Agile Project Management with Scrum – Creating Products that Customers Love
FURTHER READING
elgrom
clinics_medley
speakbuddy
staffrecruiter
rehabrecruiting
recree14
miibio
okinakagaikotu
adacotech
doradora09
openstreet
brainpad_mk
inetoagave
mclloyd
jlugia
bermonpainter
sachag
garrettdimon
morganepeng
samanthasiow
roundedbygravity
erikaheidi
moore
rocio
smashingmag