Scaling Up Software Development
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1) The document discusses a strategic decision by an IT organization leader and their group to transform from a conventional single-mode operation to a bi-modal IT organization in order to achieve the digital agility needed to meet changing business demands. 2) Bimodal IT involves operating in two separate but coordinated modes - Mode 1 focuses on stability/efficiency while Mode 2 focuses on agility/innovation. This approach aims to address the "digital divide" between what IT provides and what the business requires. 3) A force field analysis is used to evaluate the driving and restraining forces for change. Actions are proposed to increase forces for change and decrease forces against change to help the transition to a bimodal model.
Scaling Up Software Development
- 1. EVALUATING A COMPLEX DECISION Scaling Up Software Development
- 2. CHALLENGE: ACHIEVING DIGITAL AGILITY WITH BIMODAL IT As a leading organization in Information Technology, we are committed to providing unparalleled research, advisory, and consulting services to our clients to help them make the right decisions, every day. We work with every client to research, analyze and interpret the business of IT within the content of their individual role, from CIOs and senior IT leaders, business leaders, technology investors, to professional services. The digital world is becoming a wild west, where opportunities come and go quickly, and wining or losing has meaningful consequences and impact for the business. As a group leader reporting to the CIO’s org, we are challenged to operate differently to deal with the greater uncertainty, be more exploratory, responsive and agile. We are looking at transforming our conventional single-mode operations to confront the range of needs presented by digital business and add more critical capabilities to our organization to achieve the required digital agility without making mess and with minimum possible disruption. My group and I are making a strategic decision to becoming bi-modal IT organization and take the journey.
- 3. WHY WE CARE TO MAKE THE LEAP … Nowadays, the digital world demands greater dexterity in creating value from technology and the existing traditional workforce strategies, processes and programs designed to support siloed, hierarchical organizations are ill-suited to respond to the increasing uncertainty and challenge of the new-age IT. Therefore, Bimodal IT is a tool vital to addressing these problems. Using it, IT adopts two distinct ways to meet enterprise demand: being agile and flexible, and having a structured approach that ensures efficiency and predictability. Bimodal IT is the practice of managing two separate, coherent and coordinated modes of IT services and delivery, one focuses on ongoing operations and stability and the other on agility and innovation. We strongly believe that by leveraging this approach, we will fill the digital gap between what IT provides and what the enterprise really
- 4. MOTIVATION & DRIVER Digital Divide Our Current Capability Digital Demand Forces Diminishing … Forces Increasing … Increasing pace of business change Growing shadow IT Competition filling the void Growing IT Skills gap One size fits all operation Old methods & inflexible architecture The whole world is becoming digital, and sooner or later, every commercial, industrial and service sector, public and private, will be "digitally re-mastered." Digital is disruptive for most industries, overturning rather than extending accepted modes of operation. The digital divide between what the IT organization can provide and what the enterprise wants and
- 5. BIMODAL IT IN A NUTSHELL MODE 1 This is the traditional and sequential approach, emphasizing safety, accuracy. Focused on running the business, keep the lights on, and deliver new solutions that are well defined. It favors stability and efficiency over innovation and speed. Operator culture: satisfying the internal and external customers MODE 2 This is the exploratory and nonlinear approach, emphasizing agility and speed. Focused on creating new things, explore uncharted territories, and delivery new solutions where requirements are uncertain. It favors agility and speed over standardization and safety. Innovator culture: exploring the new, and continually pivoting and adapting.
- 6. THE DECISION MAKING: STATUS QUO VS. BIMODAL Where we are Where we want to be Focus Linear processes Business models Capabilities IT and Service Management Digital Leadership Engagement Treat colleagues as customers, unengaged with external customers Treat colleagues as partners, engaged with external customers Outputs and Outcomes Services and solutions, efficiency and effectiveness Digital business innovation, new types of value
- 7. THE DECISION MAKING: THE TWO MODES ARE DEEPLY DIFFERENT BUT BOTH ESSENTIAL We must vary our response to opportunities by becoming bimodal. This entails operating IT in two modes that are comprehensive, coordinated and coherent, yet deeply different — and exploiting the benefits of both approaches. Mode 1 Mode 2 Goal Reliability Agility Value Price for performance Revenue, brand, customer experience Approach Sequential, high ceremony Agile, low ceremony Governance Well planned, approval- based Empirical, continuous, process driven Sourcing Enterprise suppliers, long term deals Small, new vendors; short term deals Talent Good for traditional projects Good for new/uncertain projects Culture Operator, IT-centric Innovator, business- centric Cycle Long (months) Short (weeks)
- 8. THE DECISION MAKING: VALUES AND IMPACT Value to the IT Organization Creates more front-office value for the business Improves engagement with the business Generates credibility and recognition from key stakeholders Ensures the IT organization's relevance to digital transformation Value to the Enterprise Enables rapid digital exploration and innovation, and supports a more exploratory culture Improves enterprise agility Creates a sustained ability to deal with greater uncertainty and risk Increases digital savvy and improves collaboration
- 9. THE DECISION MAKING: FORCE FIELD ANALYSIS BIMODAL DRIVING FORCES STATUS QUO RESTRAINING FORCES • Digital transformation and competition • Manage uncertainty and create agility • Collaborative and iterative environment • Align IT activities with the dynamics of digital business • Ability to respond to increasing customer demands and needs • Increasing performance standards • Relaxed and non-transparent environment • Steady state and business as usual activities; hostile to doing things differently • Conflicting agendas • Fear of change and failure; well learned norms and procedures • Clear expectations and requirements upfront
- 10. THE DECISION MAKING: FORCE FIELD ANALYSIS Actions to increase forces for change • Advocate the importance of time to market and agility, otherwise our organization will go out of business • Foster creative space and time to individuals • Treat the different cultures equally and reward equally, both modes are important • Align the change to the groups and individuals goals and inspirations • Increase funds and resources for innovation and operational excellence • Reduce processes that inhibit innovation; remove bottlenecks and layers of approvals • Incorporate lessons learned • Cultivate innovation, ideas, risk-tolerance, and interests
- 11. THE DECISION MAKING: FORCE FIELD ANALYSIS Actions to decrease forces against change • Encourage interdepartmental collaboration, mix groups in projects and initiatives, and engage in team building activities • Train people on innovation techniques, experimentation, and new efforts • Celebrate failure by rewarding teams for failures from which critical lessons were extracted or different procedures were applied • Increase communication and inclusion across the employee base • Increase rapid prototyping and experimentation skills, build with incomplete requirements
- 12. THE DECISION MAKING: ORGANIZATIONAL FACTORS Bimodal is a way of operation and conducting business in the digital age, the organization environment and culture need to be poised for the change and embrace it faithfully. While timing is critical, the organization goal is to become fully agile and ahead of the curve in the digitalization by year 2017, as such we don’t believe time and deadlines will impost any constraints when making the decision to move to Bimodal. Nonetheless, we have to be conscious and be able to work under pressure to gather data and constantly evaluate the situation. Additionally, the organization has the necessary human capital, financial resources, procedures and reward system that will enable the decision making process, acquiring and analyzing necessary information, and influence good and high quality decision outcomes. However, When assessing our organization and its characteristics, we are coming across some opportunities and challenges that we need to be aware of and manage throughout the decision making process. These are primarily: • Organizational Structure • Specialization
- 13. THE DECISION MAKING: ORGANIZATIONAL FACTORS Organizational Structure As most corporations, our organization is highly hierarchical with different levels of management, power or authority which limits information flow and productivity by introducing layers of management. We will need to reach out to the leaders in the organization and guarantee agility and promote employee involvement throughout the decision making process so that information, and feedback can reach all employee quickly and outcomes become more directly accessible by the entire organization. Specialization It is vital that team members and departments step out of the silos and start collaboration and working together to achieve the digital transition and succeed in Bimodal. We believe there are some degree of isolation at our organization that will inhibit the organizational agility and Bimodal efforts. Let alone the geographically dispersed teams and expert leaders who are involved in the technology transformation and who we need to strive to engage in effective and efficient decision making process and information. Extra planning and communication need to take place to ensure all information are uncovered and expertise brought into the decision making process.
- 14. THE DECISION MAKING: VROOM-YETTON DECISION TREE In our case, the top three main outcomes that will aid shaping the decision making process are quality, staff commitment and growth. Decision Point Question Y/N QR Quality Requirement How important is the quality of the decision? Yes CR Commitment Requirement How important is employee commitment to this decision? Yes LI Leaders Information Do you have sufficient information to make a high-quality decision? Yes ST Problem Structure Is the problem clearly structured? Yes CP Commitment Probability If you were to make the decision by yourself, is it reasonably certain that your managers would be committed to it? Yes GC Goal Congruence Do your managers share the organizational goals to be attained in making a good decision? Yes SC Subordinate Conflict Is conflict among your managers over preferred solutions likely? No SI Sufficient Information Do your managers have sufficient information to make a high-quality decision for themselves? Yes
- 15. THE DECISION MAKING: DECISION MAKING METHOD BY VROOM-YETTON Decision Making Method AI You have considered the issue and have decided to reach a decision on your own, considering any information you have readily available. AII You have considered the issue and decided to reach a decision by yourself but you realize you don't have all the information you need. Therefore, you seek data from other sources but you don't feel it is necessary to consult with anyone else or ask for their advice. CI You have considered the decision and decided that it would be helpful to solicit advice from members of your management team. You consult with one or more of your managers but do not ask for their help in making the final decision, which is yours alone. CII You have considered the decision and decided that it would be helpful to hear what members of your management team have to say about the situation. You would like them to have the benefit of hearing all perspectives, so you decide to hold a meeting to discuss the problem. You make the decision independently, based on your own judgment from what you have heard. GII You have given thought to the decision and decided to hold a meeting of your management team so that all perspectives and opinions can be considered. You coordinate the meeting and facilitate the discussion, hoping to bring the group to consensus regarding the best possible decision. You make a special effort to In my situation with Bimodal, I can use any decision process equally well, I personally will use CII to use the meeting as a vehicle to spread out the information in the organization and promote direct employee involvement.
- 16. THE DECISION MAKING: BIMODAL HIGH LEVEL DECISION TREE Should we respond to digitalization Scale up operations to deal with greater uncertainty and win more/new opportunities Go Bimodal Create Separate Coherent Modes: Mode 1 & Mode 2 Build New Critical Capabilities, Embed in Culture, Tap into uncharted territories and Innovate Tweak Mode 1 to Support Innovation and Digitalization Challenging Uni-mode with discrete goals, values, governance, cultures and cycles. Grow traditional ongoing operations Uni-mode, one-size-fits-all, limited growth, lost opportunities, unable to remain competitive and relevant in the digital era Do nothing, running the risk of going out of business in less than 5 years Digital void can also be filled externally, by a competitor or new entrant into the market Bimodal is not “nice to have”! Moderate Cost / Low ROI High Cost / Moderate ROI Moderate Cost / High ROI