Enterprise Agility

Sunil Mundra

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Enterprise Agility
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Forewords
Endorsements
Contributors
About the author
About the reviewer
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Preface
The challenge of fast-paced change
Agility is a necessity
Goal of the book
Value and limitations of the book
Intended audience
What this book covers
Part 1 – The need for enterprise agility
Part 2 – The foundations of enterprise agility
Part 3 – The components of enterprise agility
Part 4 – The blind spots
Part 5 – The journey for enhancing agility
Learning outcomes
The final word
Conventions used
Get in touch
Reviews
Part I. The need for enterprise agility
Chapter 1. Fast-Paced Change – Threat or Opportunity?
The significance of the fourth industrial revolution
The impact of fast-paced change
What has worked in the past is unlikely to work now
Change as an opportunity
Summary
References
Chapter 2. From Agile to Agility
The values and principles of Agile
The Agile Manifesto
Agile is a resounding success in IT
Agile has also made a difference to the business world
Issues with Agile adoption and scaling
The need for enhancing agility
Adopting Agile is not enough
Enhancing agility is not the same as Agile transformation
Capabilities underlying agility
Responsiveness
Versatility
Flexibility
Resilience
Innovativeness
Adaptability
Properties of agility
Characteristics of enterprises with high agility
Optimal agility
Summary
References
Part II. The foundations of enterprise agility
Chapter 3. The Enterprise as a Living System
The mechanistic approach that is outdated for enterprise modeling
Taylor's scientific management theory – the roots of mechanistic modeling
Need to reinfuse life into enterprises
Complex adaptive systems (CAS) – a proven model of high agility
What are CAS?
Characteristics of a CAS
Continuous evolution
Autonomous and self-organizing agents
Reasons for high agility in a CAS
Implications for enterprises
Enhanced agility
Responsive structure
Build social density
Amplify success stories
Encourage healthy friction
Link purpose to work
Balance proximity and modularity
Cultivate diversity
Build on emergence
Shorter feedback loops
Experiment with lever points
Balance order and chaos
Selective destruction
Simple rules
Safe to fail experiments
Prioritize effectiveness over efficiency
Monitor and leverage patterns
Summary
References
Chapter 4. Mindset and Culture
Significance
What is mindset?
What is culture?
The culture and mindset ecosystem
Changing mindset and culture
Values aligned to agility
Internal-oriented values
External-oriented values
Behaviors aligned to agility
Treat failure as a learning opportunity
Focus on continuous improvement
Value team spirit over individual heroics
Willingness to share knowledge
Diversity of thought valued
Practice brutal transparency
Effective feedback
Recognize the last responsible moment
Driven by value
Enabling behavior changes
Align the metrics
Levelling environment
Leadership involvement
Identify what needs to change about the current mindset and culture
Link a behavior change to business outcomes
Call out gaps between expected and actual behaviors
Have clarity and consensus around trade-offs
Deal with individual negative behaviors on a case-to-case basis
Look out for broader anti-patterns
Go beyond logic
Aligning the workplace to an agility-enabling culture
Summary
References
Chapter 5. Leadership
Significance
Dimensions of leadership
Personal traits
Willingness to expand mental models
Self-awareness
Creativity
Emotional intelligence
Courage
A passion for learning
Awareness of cognitive biases
Resilience
Responsiveness
Behavioral capabilities
Tolerance toward failure
Connection with peers
Comfort with VUCA
Ability to guide and facilitate teams
Ability to leverage risk
Connection through engagement
Ability to apply systems thinking
Being technology aware
Following servant leadership
Balancing the paradoxes
Encouraging inclusivity and diversity
Humble inquiry
Summary
References
Part III. The components of enterprise agility
Chapter 6. Organization Structure
Significance
Inhibitors to agility
A tall hierarchy
Organizing primarily for efficiency
Devaluing knowledge workers
Centralization of core capabilities
Leadership-level silos
Enablers for enhancing agility
Organize teams around business outcomes
Self-organizing teams
Stable teams
Flat(ter) structure
Repurpose the frozen middle layer
Enable learning through communities
Delink employee growth from structure
Adhocracy as a decision-making model
Supportive tooling
Flexible, adaptable, and lean structure
Summary
References
Chapter 7. Process
Significance
Inhibitors to agility
Broken processes
Rigid processes
Striving for 100% utilization
Estimation and capacity planning done by outsiders
Enablers for enhancing agility
Optimize for outcomes
Valuable inputs
Pull-based flow
Make it visual
Seize opportunities to automate
Use of enabling tools
Build quality in
Enable teamwork and shared ownership
Determine capacity based on throughput
Summary
References
Chapter 8. People
Significance
Inhibitors to agility
Mechanistic view of people
Lack of trust
Blaming people
Feeling of being used
Lack of appreciation
The that s not my job attitude
The yes boss mindset
Competition among individuals
Differential treatment for contractual employees
Forcing people to become managers
Enablers to agility
Psychological safety
Competency-driven people development
Intrinsic motivation
Engagement
Summary
References
Chapter 9. Technology
Significance
Inhibitors to agility
Treating the technology department as a cost center
The stepchild treatment of the technology function
Obsolete legacy systems
Silos within the technology function
Lack of engineering practices
The bimodal approach
COTS products for core capabilities
Infrastructure vulnerability
Enablers to agility
Business-technology alignment and collaboration
Agile and DevOps
Culture of technology artisanship
Portfolio management
Evolutionary architecture
Build core capabilities internally
T-shaped skills
Platforms
Summary
References
Chapter 10. Governance
Significance
Inhibitors to agility
Optimization of silos
Relying on misleading and non-actionable metrics
Sunk cost fallacy
Speed at the cost of quality
Annual budgeting
Governing for compliance and documentation
Projects/initiatives delinked from strategy
Frozen middle
Enablers to agility
Value-driven prioritization
Continuous validation of value
Incremental funding
Balancing of leading and lagging indicators
Attend showcases/demos
End-to-end link between purpose and initiatives
Summary
References
Chapter 11. Customer
Significance
Inhibitors to the effectiveness of agility
Exploitation mindset
Taking customers for granted
Focusing only on linear customer journeys
Make assumptions about customer needs and preferences
Ignoring end users
Enablers to the effectiveness of agility
The customer-first culture
Aim for customer delight
Understand what value means to the customer
Summary
References
Part IV. The blind spots
Chapter 12. Distributed Teams
Significance
Inhibitors to agility
Cultural differences
Time zone differences
Language differences
Lack of the big picture view
Misunderstanding of requirements
Trust deficit
Lack of visibility
Low morale
Lack of collective ownership
Risk of unpleasant surprises when everything comes together
Enablers for enhancing agility
People
Process
Tools and infrastructure
Structure
Summary
References
Chapter 13. Technology Partners
Significance
Inhibitors to agility
Resistance and concerns in adopting Agile ways of working
Transactional relationship
Frozen contracts
Enablers for enhancing agility
Ways of working
Behaviors
Summary
References
Part V. The journey to enhancing agility
Chapter 14. Framework for Action
Leadership alignment on the need for change
Redefine/validate the purpose of the enterprise
Define the capabilities underlying agility
Translate intent into action
Assess the current state
Envision the future
Plan the change
Execute the plan
Agility as a journey and not a destination
Summary
References
Chapter 15. Facilitating Change
Significance
Learnings
People do not resist change
Things will get worse before they get better
Continuous adaptation should be the norm
Employee engagement is a prerequisite for extrinsic enablers to have impact
Need to slow down to go faster
Watch out for change fatigue
Don t steamroll the laggards
Don t shoot the enablers
Sense of purpose over sense of urgency
Clarity on what s in it for me?
Primary focus on outcomes over means
Small gestures of appreciation can have disproportionate positive impact
Upgrade skills
Respect the hard constraints
Don t manage change, facilitate it
Summary
References
Summary
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Enterprise Agility