Systems thinking for agile transformations
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The document discusses the importance of systems thinking in driving transformative organizational change, highlighting that culture and structure are critical components influencing behavior within organizations. It emphasizes that changing systems, rather than merely targeting culture, is key for successful transformations, as behaviors are shaped by the system in which individuals operate. Additionally, effective leadership is portrayed as essential for fostering a supportive environment that encourages collaboration, learning, and adaptation throughout the change process.
![Leading transformative change
Learning Together
“The discipline of team learning starts with
“dialogue”, the capacity of members to
suspend assumptions and enter into a genuine
“thinking together”. To the Greeks dia-logos
meant a free flowing of meaning through a
group, allowing group to attain insights not
attainable individually.”
[Peter M. Senge, The Fifth Discipline.]
!40](https://image.slidesharecdn.com/systemsthinkingforagiletransformations-181009024754/85/Systems-thinking-for-agile-transformations-40-320.jpg)
Systems thinking for agile transformations
- 1. Systems thinking for transformative change a comparison of systems points of leverage !1
- 2. Dhaval Panchal Founder, Evolve Agility https:evolveagility.com 18 years of industry experience Business Agility, Agile, Design Thinking, Lean Practitioner, Entrepreneur, Coach, Trainer Contact: dhaval.panchal@evolveagility.com Twitter: @evolveagility !2
- 3. Which one is a butterfly? A. Crawls, munches on leaves B. Flies, drinks nectar from flowers !3
- 5. Source: https://www.scientificamerican.com/article/caterpillar-butterfly-metamorphosis-explainer/ “To become a butterfly, a caterpillar first digests itself. But certain groups of cells (imaginal discs) survive, turning the soup into eyes, wings, antennae and other adult structures” !5
- 6. Culture vulture, strange loop !6 artist: M.C. Escher
- 7. Culture Myth : #1 barrier to adoption Culture: “This is how we do things around here …” Culture is the set of behaviors that have been established and accepted within an organizations !7
- 8. Is culture predictive of behavior across hierarchies, silos, functions, etc? A. Yes B. No C. Maybe !8
- 9. Barriers to adoption (1/2) !9 2013 2015 source: http://stateofagile.versionone.com/
- 10. Barriers to adoption (2/2) !10 2016 2017 source: http://stateofagile.versionone.com/
- 11. !11 source: https://martinfowler.com/bliki/ShuHaRi.html Shu (doing) Ha Ri (being)
- 12. When will your organization Shu-Ha-Ri into agility? A. Never B. Dumb question C. a few years D. Don’t know !12
- 13. Strange loop A cyclical structure that goes through several levels in a hierarchical system. It arises when, by moving only in upwards or downwards through the system, one finds oneself back where one started. !13artist: M.C. Escher
- 14. Shu-Ha-Ri trap Culture is often targeted as impediment Direct attempts at changing culture are haphazard Focus on technique level adoption (Shu-Ha-Ri) is necessary but not sufficient. !14 I attack anyone who is not “being” Agile. https://www.halloweencostumes.com/adult-vulture-costume.html
- 15. Not just.. Behavior Change Context is king Systems structure, overrides behavior changes Most “Agile transformations” are one re-org away from obsolescence !15 tip: Measure your transformation success on number of re-orgs it can survive, not by number of teams that do Agile.
- 16. !16
- 17. Powerful truth: Culture Change is free !17 “Attempts to change an organizations culture is a folly, it always fails. Peoples behavior (culture) is a product of the system; when you change the system peoples’ behavior changes.” – John Seddon https://vanguard-method.net/wp-content/uploads/2015/07/culture-change-is-free.pdf
- 18. Culture follows structure !18 Larman's Laws of Organizational Behavior
- 19. Leverage points are points of power Points of leverage are places within a complex system where a small shift in one thing can produce big changes in everything. The higher the leverage point, the more the system will resist changing it. !19 http://donellameadows.org/archives/leverage-points-places-to-intervene-in-a-system/
- 20. (12) Constants, parameters, & numbers VS (6) Structure of information flows !20
- 21. Intended use of measurements !21 “Nothing about a piece of information makes it inherently motivational or informational. Rather, it is the way in which the information is used that determines the measurement category.” - Robert. D. Austin
- 22. Dysfunctional Measurement Systems !22 Use of measurements is more important than measurements you use. Even when measurements are intended for informational purposes, these are interpreted to reflect important aspects of job and hence have implications for motivations of behavior.
- 23. Poll: Which is better at regulating driver behavior? !23 A B
- 24. Compelling feedback Missing feedback is most common cause of system dysfunction. Tampering with arbitrary measures such as: budget, utilization, velocity, estimates, etc. has minimal impact on system capability. Compelling feedback requires building new information flows. !24 Examples: TDD (Red, Green, Refactor) PO/Developers spend time on customer support calls. Team responsible for product, also fixes reported bugs. Product code health, operations metrics on information radiators in team area.
- 25. If it feels like a slogfest! Test of a good measure: Does this measure help us understand and improve performance? Are you lacking compelling feedback loops? Focus on improving quality of product, and quality of life of people developing and using your product. Speed will follow. !25
- 26. (5) Rules of system VS (4) Power to self-organize system structure !26
- 27. !27 Different rules for your organization. Please write it down, and share at end of presentation.
- 28. (5) Rules of system (incentives, punishments, constraints) !28 “If you want to understand the deepest malfunction of systems, pay attention to the rules, and to who has power over them.” - Donella Meadows
- 29. Fear is most dominant feeling in organizations Fight Flight Freeze !29The face of war (1940), Salvador Dali Blame: Fear feeds and grows in organizations, when people are treated as part of the problem instead of part of the solution.
- 30. Fear factories Manages rely on abstractions (dashboard of metrics) but have no hands-on understanding of day to day realities. Workers lack context, contact with customers, in order to make right products. Managers designing organization policies, information flows (systems) rely on sampling of opinions, “best-practices”, etc. with no feedback loops to balance Org-design assumptions. !30
- 31. Psychological safety Psychological safety is individual’s perception that one will not be punished or humiliated for speaking up with ideas, questions, concerns, or mistakes. - Amy Edmondson !31 Recommended further study: Project Aristotle - https://rework.withgoogle.com/ guides/understanding-team-effectiveness/steps/introduction/
- 32. Power over the rules is real power Management sets overall direction and purpose of organization. Management defines meta-rules: Rules about making, changing, removing rules. Self-Managing teams have autonomy to change rules, measurements, information flows of their system. !32
- 33. !33 (3) The goals of system VS (2) Mindset out of which system arises
- 34. Paradox of progress, and choice Less is More “A New York banker vacationing in Greece, who, from talking-to a fisherman and scrutinizing the fisherman’s business, comes up with a scheme to help the fisherman make big business. The fisherman asked him what the benefits were; the banker answered that he could make a pile of money in New York and come back to vacation in Greece; something that seemed ludicrous to the fisherman, who was already there doing the kind of things bankers do when they go on vacation in Greece.” - Skin in the game, Nassim Nicholas Taleb !34 This parable is ancient, author unknown, characters keep changing but structure remains same.
- 35. If the goal is ___________ , then everything further down will be twisted to conform to that goal. !35 Coercive change anti-pattern A. Management sends mission statements, and put up posters. B. Sets targets & incentives, provides “playbook”, installs Agile tools C. Demands reports on what people are doing? D. People (mostly) report what management wants to hear. E. Complaints from people are treated as evidence of success. Change is supposed to be hard, they believe.
- 36. Employees have little belief in their company’s leadership Source: Gallup state of the American workplace report 2017 !36 Strongly agree that leadership has a clear direction for organization Strongly agree that leadership makes them enthusiastic about future Strongly agree that leadership communicates clearly Percentage of employees 0 25 50 75 100 13 15 23 Gallup developed State of the American Workplace using data collected from more than 195,600 U.S. employees via the Gallup Panel and Gallup Daily tracking in 2015 and 2016, and more than 31 million respondents through Gallup’s Q12 Client Database.
- 37. Mindset (Paradigms) are sources of systems From shared agreements on nature of reality, come system goals and information flows, and feedback loops, and everything else about your organization system. !37
- 38. Leading transformative change Focus of change in actions is mechanistic view of change process, hoping agile-like actions will yield better results. Without change in underlying belief systems, people face uncertainty and fear in pursuit of management ‘approved’ behavior. People grow & learn in supportive environments, and integrate new way of thinking and belief systems. Leaders lead from the trenches, building shared understanding of common reality. gemba Leaders shift balance from “telling” to act differently to co- creating shared positive experiences. Developing on strengths over fixing weaknesses. !38
- 39. Leading transformative change Agile leader is not a therapist: Deeper individual structures - personally belief systems, images, “rules”, and biases are deep rooted and formed over individual’s life journey. Leaders have an obligation to do no physiological harm to people under your ward. This means recognizing situations where a person may be helped by trained professionals in such matters. Gardner’s mindset: Paying attention to broader social structures a leader can cultivate an environment that is conducive to creating and sustaining healthy teams. Much like a good gardener pays attention to soil conditions and weather. Which factors are you sensitively tuned to? !39
- 40. Leading transformative change Learning Together “The discipline of team learning starts with “dialogue”, the capacity of members to suspend assumptions and enter into a genuine “thinking together”. To the Greeks dia-logos meant a free flowing of meaning through a group, allowing group to attain insights not attainable individually.” [Peter M. Senge, The Fifth Discipline.] !40
- 41. Leading transformative change !41 Listening deeply: When we don’t listen, all we have is our interpretation. Voicing: Expressing your genuine voice and helping the collective to express what is true regardless of other influences. Respecting: Holding space for and other people’s views a legitimate. Suspending: Let go of certainties, which are rigid, non-negotiable, and limit dialogue. William N. Isaacs, Dialogic Leadership Leaders create environment, where others feel empowered.
- 42. One final note Replace willpower for knowledge http://blog.dilbert.com/2013/11/18/goals-vs-systems/
- 43. !43Q&A Upcoming CAL Class Dec 12-13, Houston, TX : https://evolveagility.com/training/