Systems Thinking in Large-​Scale Modeling #Midjourney DDD Europe, June 2023

Contextualizing DDD & architecture in large change efforts Conversation facilitator Boundary spanner, connector Idea spreader, change maker About me 01 02 03 Xin Yao Independent consultant Lives in Copenhagen, Denmark Loves gardening, yoga, sci-​ fi, theater, good food, hanging out with friends and family @settling_mud xin.yao.dk@gmail.com @xinyao@mathstodon.xyz /in/xinxin/

A tale of transformation at a large bank Systems thinking basics System dynamics modeling System leverage What we will cover today

A tale of transformation at a large bank Systems thinking basics System dynamics modeling System leverage

Context: A large Nordic bank 3,5 m+ customers (B2C + B2B) 22,000+ employees 4,000+ in engineering (10 countries) +150 years old 2000+ IT systems

Organizations as sociotechnical systems Social systems (Complex) Engineered systems (Complicated) [software] [organization] The environment

The next great frontier is to understand human systems. ~Jay Forrester

Systems building blocks: feedbacks & delays Reinforcing loop Balancing loop Births Population + delay + Deaths + delay -

Nonlinearity: Cause and effect can be far apart in time and space linear cause & effect Non-​ linear feedback loop There’s a fundamental mismatch between the nature of reality in complex systems and our predominant ways of thinking about that reality. The first step is correcting that mismatch is to let go of the notion that cause and effect are close in time and space. ~Peter Senge now in one year

The eventual consistency time span in a social system is much larger than that in an engineered system. Temporal and spatial systems modeling

Graphic: Juliet Young Higher leverage at a different time, and place

A tale of transformation at a large bank Systems thinking basics System dynamics modeling System leverage

2020: Reorg & change initiative DDD & API evangelism Cloud & DevOps evangelism Agile coaching Decoupled & reusable APIs Software delivery speed Agility, autonomy + + + + Engineering maturity + + + + Enabling tribe Enabling tribe Enabling tribe Journey/Platform tribes Source: Henrik Kniberg & Anders Ivarsson delay delay delay

DDD reinforcing feedback loop Facilitated DDD workshops Eagerness to practice DDD Perceived value of DDD API delivery speed Domain modeling quality Domain understanding + + + + + + delay delay

Facilitated DDD workshops Eagerness to practice DDD Perceived value of DDD API delivery speed Domain modeling quality Domain understanding + + + + + + Availability of DDD enabling capacity Utilization of DDD enabling team Demand on DDD workshop facilitators + + + - DDD enabling capacity limits DDD "growth" Reinforcing loop Balancing loop

Pressure to increase WIP for DDD enabling team Pressure on DDD evangelists to rush domain discovery Premature convergence DDD enabling team attrition Stress & burn-​ out in DDD enabling team Idle API engineers in enabling team API specification velocity per domain Intervention makes matters worse Facilitated DDD workshops Eagerness to practice DDD Perceived value of DDD API delivery speed Domain modeling quality Domain understanding + + + + + + - - - + + + + +

System archetype: Limit to growth/success Source: William Braun - "The System Archetypes" Structure Trend

Systems vocabulary System variables Causal links Delays Feedback loops now in one year problem symptom Symptomatic solution Fundamental solution + - + - side effect + - nouns, verbs sentences, scenes Recurring plot lines System archetypes example

Why do we keep seeing the same problems recur over time? What leverage do we have in impacting the system's underlying structure? diagnostic use prospective use How do system archetypes help us • Limits to Growth (aka Limits to Success) • Shifting the Burden • Eroding Goals • Escalation • Success to the Successful • Tragedy of the Commons • Fixes that Fail • Growth and Underinvestment • Accidental Adversaries • Attractiveness Principle ... System archetypes

Domain-​ driven APIs Challenge to deliver DDD-​ enabled domain APIs Reliance on DDD enabling team + Perceived need to act on DDD skill gaps + Invested time to improve team's own DDD capacity + - + delay Alleviated resource shortage - - root cause Dependency High workload

System archetype: Shifting the burden Source: William Braun - "The System Archetypes" Structure Trend

Fast flow of change Value delivery rate + Team independence (X-​ as-​ a-​ service) + Stable platform APIs + + Changes in environment (e.g. regulatory requirements) Need for platform rethink (different boundaries?) Need for coordination across teams Risk to miss fast flow KPI (embarrassment) + + Pressure to find a workaround (no interface change) + Accidental complexity (Business debt) + + - Is "flow" a non-​ negotiable goal DDD to discover platform boundaries + Local optimization = negative externality KPI delay constraint = accidental complexity +

Slowing down growth gives the balancing loop with limits and delays, time to function ... The optimal rate in a system is far less than the fastest possible growth. ~Donella Meadows Optimizing the whole

What is Systems Thinking Interdependencies Living systems Many parts Synthetic holism Analytical reductionism Synthetic holism Analytical reductionism Graphics: Systems Innovation Network Mechanistic thinking Systems thinking

A tale of transformation at a large bank Systems thinking basics System dynamics modeling System leverage

How do fish explain the water they are in?

Systems dynamics modeling: Moving to higher levels of abstraction problem symptom Symptomatic solution Fundamental solution + - + - side effect + - now in one year Structures of which we are unaware hold us prisoner. We can only grasp a complex system through abstract modeling. Reality Models

Hurray! Now we can use systems dynamics modeling to understand and impact systems.

You are only seeing my view of the world My experiences My data selections My perspectives My assumptions My conclusions My beliefs "The optimist sees the doughnut, the pessimist sees the hole." ~ Oscar Wilde

You are not even seeing my view of the world

Systems understanding: The Iceberg Model Graphics: Academies For Systems Change API delivery speed = business value APIs in prod pr. month Systems archetype Our team delivered no API this month. Observable Hidden

Low leverage point: event-​ driven systems A system input output Event handler Gain achieved Pain relieved events Trends Structures Mental models Credit: Systems Innovation Network Event issue, problem, goal

React High leverage point: mental models events Trends Structures Mental models Anticipate Design Transform Credit: Systems Innovation Network

A transformation isn't an event. It's a progressive accumulation of habits. -​Andrew Clay Shafer

Culture (collective habits) for an organization is like personality for a person. Your energy to try to change it will tend to make it stronger. ~Peter Senge

My worst event storming workshop

Workshop retrospective You are too in love with your model :-). We don't see forest, only trees You=Me model=event storming

We perceive the world through our individual filters Source: Jeff Patton

Externalize our thinking visually "Make the implicit explicit" Source: Jeff Patton

Combine & refine - integrate perspectives Source: Jeff Patton

discussion Reflective conversation Credit: David Bohm, Peter Senge, Chris Argyris advocacy advocacy inquiry Here is how I see it. Here are the facts that support how I see it I know I don't see the whole picture, how do you see it? Here is what I think this data/episode means... Do you see it differently? Oh, that's a perspective I haven't considered Do you see gaps in my reasoning? Here is my view and here is how I arrived at it. dialogue

What is it about this situation, and about me or others, that is making open exchange difficult? The questions that got us unstuck What are you most passionate about contributing to in this domain? What is the future we dream of for this domain?

What happened after event storming Collective reflection Inquiry & advocacy

To DDD or not to DDD Q: Why do you still want to finish the DDD Workshop series? A: You were trying to convince us before. Now we are testing ideas together.

To enable is to lead "Will you follow me?" Task-​ oriented Skill-​ oriented Relationally oriented

Undercover systems change with DDD DDD consultancy/ facilitation DDD output + + Reflective converations + Generative, adaptive capacity + + The ideal Present (or future?) "DDD change agent"

Life is not a problem to be solved, but a reality to be experienced. ~ Søren Kierkegaard

A tale of transformation in a large bank Systems basics Systems dynamics modeling Systems leverage What we've covered today

Thank you @settling_mud xin.yao.dk@gmail.com @xinyao@mathstodon.xyz /in/xinxin/ Contact me if you need an undercover change agent :-)