Creating the Agile IT Organisation
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- Organisational agility is developed through adopting agile operating principles across three domains: technology architecture, operating model, and mindset. - An agility assessment identifies existing principles and determines which create or inhibit agility. It provides insight into changes needed. - Leaders influence agility through their understanding and application of operating principles across these domains. Adopting agile principles confers agility.
Creating the Agile IT Organisation
- 1. Creating the Agile IT Organisation A Formicio Point of View
- 2. Agility is an organisational capability that can be developed or destroyed by the actions of leaders Organisational capabilities underpin an organisation’s ability to succeed. Agility is a relative term: organisations can become more agile or less agile. IT organisations are perceived to be agile – by their businesses colleagues – if they are The Oxford dictionary able to sense and respond to changing defines agility as the business conditions. ability to move quickly The lack of agility is most noticeable when and easily; and the the context changes, eg an acquisition, new ability to think and understand quickly. regulations or new product launch. Many CIOs who have failed did so not because they did not know what to do, but because of their inability to make the changes happen quickly enough. © 2011 Copyright Formicio Limited 1
- 3. IT organisations are more likely to be agile if they adopt agile operating principles Organisations that are more agile operate to a set of (implicit or explicit) agile operating principles. Operating principles are conscious choices – made by leaders – that define how they would like their organisation to operate. For each principle there is an equally valid alternative choice. Operating principles are transferable across organisations, and the application of the principles in a specific context (ie within a specific organisation) establishes practices that are ‘fit for purpose’. Operating practices are very difficult to transfer between organisations as they are context-specific and the context is different between organisations. © 2011 Copyright Formicio Limited 2
- 4. The three domains of operating principles that create organisational agility.... The platforms, systems and infrastructure that collectively The values, Technology comprise the beliefs and Architecture installed base. competencies held by individuals or The processes, groups of organisation, people – the Operating governance and Mindset principal driver Model sourcing – how of behaviour. work gets done. © 2011 Copyright Formicio Limited 3
- 5. Example of how operating principles shape the extent to which the technology architecture is agile Example: “Whenever possible all future solutions will be based upon industry standard platforms and open source components”, as opposed to “we will continue to develop our legacy applications”. Both operating principles are equally valid choices, the former is based upon contemporary thinking on service-orientated architectures. The latter principle results in systems that are highly tailored to the particular needs of the business and not dependent upon vendor upgrade development plans. © 2011 Copyright Formicio Limited 4
- 6. Example of how an operating principle shapes the extent to which the IT Operating Model is agile Example: “Wherever possible agile approaches ? ? ? to software development, including ? ? extreme programming, scrums and daily stand-ups, should be used”, as opposed to “Ladies and gentlemen – “all software development projects this is one of the core IS processes. Any questions?” must comply with the System Development Life Cycle (SDLC)”. Both operating principles are valid. The former confers greater agility as developers work very closely with business colleagues and functionality is delivered at frequent intervals. The latter principle is more focused on following a defined series of steps in the belief that it will deliver a quality result. © 2011 Copyright Formicio Limited 5
- 7. There are operating principles for all facets of an IT organisation’s Operating Model A key process is Processes – the Organisational software Manage Customer Relationships Manage Business-IT Portfolio processes (both Design – the development where Disco ver Busin Manage Enterprise Architecture Deliv er Oper ate Busin operational and roles, structure, management) that competencies ess- Busin ess ess IT Syste Pote Solut ms a lot of advances ions ntial Operate IT Infrastructure deliver services and resources. Manage IT Supply Manage IT Organisation have been made to and solutions to move away from the business. the rigid linear Governance – Measurement – lifecycle approach. Companie s/ BUs SVP Exec utive Coun who has what the way decision rights individuals and Managem cil ent Team Core Process Council and the resultant organisational Organization Whilst agile accountabilities. performance is approaches to measured and managed. software development are Partners – how Premiere Service Service Options Services Portfolio vendors and – how the • Basic product set • 24 x 7 hours • Product • Premium coverage set - Fastest response time extension necessary, they are - Fastest repair time s • Mobile User • Advance d Service Level Quality Technolo gy Introducti on Standard • Other suppliers (outside product and Service • Basic product set • Prime hours • Guaranteed coverage, e.g., - Response time - Repair time not sufficient to the organisational Service Content Richness service offerings create the agile IT boundaries) are that meet sourced and business demand organisation. managed. are prioritised. © 2011 Copyright Formicio Limited 6
- 8. Example of how operating principles shape peoples’ mindset and thereby the extent to which they are agile Example: “It is always better to try and fail quickly than to do nothing”, as opposed to “It is always safer around here to do nothing. If you try something and it fails there are negative consequences. If you do something quickly and there are small mistakes there are negative consequences”. Mindsets are formed from a set of values, beliefs and competencies. They can be held by individuals, or groups of people, and become so established that they create a powerful incentive to continue to adopt or accept prior behaviours, choices, methods or tools. © 2011 Copyright Formicio Limited 7
- 9. The first step to developing agility as an organisational capability is to understand existing operating principles An Agility Assessment gives insight into the extent to which existing operating principles, within and across the three domains (implied or explicit), create or inhibit agility. It also identifies the extent to which people – particularly the leadership: – Understand the impact that operating principles have on their organisation’s The assessment is ability to be agile; done through a combination of: – Value those principles that confer agility; • Interviews – Apply agile operating principles. • Self assessments An assessment provides insight as to what • Forum discussions changes need be made to the Technology Architecture, Operating Model and Mindset. © Copyright Formicio Limited 8
- 10. Our point of view on IT organisational agility revisited 1. Agility is an organisational capability. 2. Agility can be developed or destroyed by the actions of leaders. 3. IT organisations are perceived to be agile – by their businesses colleagues – if they are able to sense and respond rapidly to changing business conditions. 4. IT organisations are more likely to be agile if they adopt agile operating principles. 5. The three domains of operating principles are: If agility creates success, then – Technology Architecture adoption of the – Operating Model agile operating – Mindset principles confers agility. 6. The first step is to understand existing operating principles. © 2011 Copyrig.ht Formicio Limited 9
- 11. We hope you found our point of view helpful We encourage you and your leadership colleagues to develop a shared point of view on making their IT organisation agile. It will take time and you won’t all agree at the outset, but it will be of great value in the longer term. The Formicio Team © 2011 Copyright Formicio Limited 10
- 12. This is an Insight presentation by Formicio We are thought partners and advisers to business and technology leaders around the world. We help our clients make informed choices, build capability and deliver sustained business change. Through a combination of learning and consulting we help our clients: Build innovation and organisational capability. Succeed with the most complex transformation programmes. Equip IT organisations to meet the challenges ahead. © 2011 Copyright Formicio Limited 11
- 13. For further information contact... David Trafford david.trafford@formicio.com +44 (0)20 7917 2993 www.formicio.com © 2011 Copyright Formicio Limited 12