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Johanna Rothman @johannarothman www.jrothman.com Lead an Innovative Organization: From Change Management to Manage FOR Change

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© 2022 Johanna Rothman @johannarothman Your organization wants innovation. How do they act? 2

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© 2022 Johanna Rothman @johannarothman Does Your Organization Demand: • Detailed plans: • Estimates • Schedules • ROI • Upfront planning 3

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© 2022 Johanna Rothman @johannarothman Does Your Organization Offer: • An opportunity where you know: • The value of your work • The goal for this version of the product • Trust for you to do the right thing • Request for demos on a regular basis 4

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© 2022 Johanna Rothman @johannarothman The Demand for Unknowable Data vs The Offer for Great Work 5

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© 2022 Johanna Rothman @johannarothman Demands are Theory X; Offers are Theory Y 6

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© 2022 Johanna Rothman @johannarothman Don’t blame the managers. They are part of a greater system of work. 7

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© 2022 Johanna Rothman @johannarothman Want innovation? Innovate management/leadership practices. 8

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© 2022 Johanna Rothman @johannarothman Consider These Suggestions 1. Management teams at all levels work for one overarching goal 2. Reduce organizational WIP 3. Eliminate performance management 9

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© 2022 Johanna Rothman @johannarothman 1. Theory Y Management for Management • Do your functional managers/leaders collaborate? • Organizations based on individual rewards: • Reduce management collaboration • Create slow decisions • Optimize too low 10

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© 2022 Johanna Rothman @johannarothman Hierarchical Decisions Take Forever 11

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© 2022 Johanna Rothman @johannarothman Management Teams • We already talk about teams for senior leadership and product • Many orgs have a cohort at one level • Why not have cohorts at each level? 12

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© 2022 Johanna Rothman @johannarothman About Management Flow Ef fi ciency • Manager outcomes are decisions, not features • When managers work in fl ow ef fi ciency as a team they make faster decisions 13

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© 2022 Johanna Rothman @johannarothman 2. Reduce Organizational WIP • The fallacy of resource ef fi ciency • When everyone is busy, we’ll get more work out of them! • Resource ef fi ciency, which optimizes for outputs and time • Instead, we need to optimize for deliverables and value • Team works together 14

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© 2022 Johanna Rothman @johannarothman Focus on the Flow of Work, Not the Person • Resource ef fi ciency looks ef fi cient • But it focuses on the person, not the work • Delays inside the team, between teams and projects compete with each other for people • Multitasking costs • Agile teams (& mgmt teams) need to work in fl ow ef fi ciency 15

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© 2022 Johanna Rothman @johannarothman What Teams Need Instead of Utilization • Decide why the organization exists: the overarching goal • Goal for this product now (purpose) • Reduce organizational WIP & decide what not to do for now • Experiment to reduce/eliminate wait states 16

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© 2022 Johanna Rothman @johannarothman Limit organizational WIP to support the fl ow of work through teams 17

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© 2022 Johanna Rothman @johannarothman 3. Eliminate Performance Management • Performance management does not work • Ranking doesn’t work • Comparing people or teams doesn’t work • Competition doesn’t work • Feedback, especially reinforcing feedback, does work 18

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© 2022 Johanna Rothman @johannarothman Create Engagement • Put Theory Y to use • Explain the purpose, the why, at all levels, from organization down to team • Encourage personal and team mastery with fl ow ef fi ciency • Create an opportunistic culture, where people discover new and interesting work, skills, collaboration, and more 19

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© 2022 Johanna Rothman @johannarothman Feedback Tips • More reinforcing feedback than change- focused feedback • Peer-to-peer feedback: • Create an opening to deliver feedback. • Use data to describe the behavior or result in a way that the person can hear. • State the impact on you, using "I" language. • Make a request for changed or continued behavior. 20

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© 2022 Johanna Rothman @johannarothman Instead of Performance Management… • Regular one-on-ones to build a trusting relationship • Create goals that support the entire team • Autonomy, mastery, purpose • Create some team-based compensation • Jungle-gym career ladders based on in fl uence, not individual achievement 21

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© 2022 Johanna Rothman @johannarothman 22

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© 2022 Johanna Rothman @johannarothman Manage for change: Optimize to learn 23

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© 2022 Johanna Rothman @johannarothman Start with management innovation That will free you to lead an innovative organization 24

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© 2022 Johanna Rothman @johannarothman Three Big Ideas • Create management teams with an overarching goal using Theory Y • Reduce organizational WIP • Eliminate performance management 25

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© 2022 Johanna Rothman @johannarothman All 7 Modern Management Principles 1. Clarify your purpose (you, team, organization). 2. Build empathy with the people who do the work. 3. Build a safe environment. 4. Seek outcomes and optimize for the overarching goal. 5. Encourage experiments and learning. 6. Catch people succeeding. 7. Exercise your value-based integrity. 26

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© 2022 Johanna Rothman @johannarothman Let’s Stay in Touch • Pragmatic Manager: • www.jrothman.com/ pragmaticmanager • Please link with me on LinkedIn • Modern Management Made Easy: https://www.jrothman.com/mmme 27