Business Value of Agile Organizations: Strategies, Models, & Principles for Enterprise-Level Agility

davidfrico 4,096 views 56 slides Mar 13, 2016
Slide 1
Slide 1 of 56
Slide 1
1
Slide 2
2
Slide 3
3
Slide 4
4
Slide 5
5
Slide 6
6
Slide 7
7
Slide 8
8
Slide 9
9
Slide 10
10
Slide 11
11
Slide 12
12
Slide 13
13
Slide 14
14
Slide 15
15
Slide 16
16
Slide 17
17
Slide 18
18
Slide 19
19
Slide 20
20
Slide 21
21
Slide 22
22
Slide 23
23
Slide 24
24
Slide 25
25
Slide 26
26
Slide 27
27
Slide 28
28
Slide 29
29
Slide 30
30
Slide 31
31
Slide 32
32
Slide 33
33
Slide 34
34
Slide 35
35
Slide 36
36
Slide 37
37
Slide 38
38
Slide 39
39
Slide 40
40
Slide 41
41
Slide 42
42
Slide 43
43
Slide 44
44
Slide 45
45
Slide 46
46
Slide 47
47
Slide 48
48
Slide 49
49
Slide 50
50
Slide 51
51
Slide 52
52
Slide 53
53
Slide 54
54
Slide 55
55
Slide 56
56

About This Presentation

Agile Organizations, Enterprises, and Businesses are emerging models for successfully managing 21st century human-capital, knowledge, and Internet technology-intensive global businesses. Dr. Rico will establish the context, provide a definition, and describe the value-system for lean and agile organ...


Slide Content

Strategies, Models, & Principles
for Enterprise-Level Agility
Dr. David F. Rico, PMP,CSEP,FCP,FCT,ACP,CSM,SAFe
Twitter: @dr_david_f_rico
Website:http://www.davidfrico.com
LinkedIn: http://www.linkedin.com/in/davidfrico
Agile Capabilities: http://davidfrico.com/rico-capability-agile.pdf
Agile Resources : http://www.davidfrico.com/daves-agile-resources.htm
Agile Cheat Sheet: http://davidfrico.com/key-agile-theories-ideas-and-principles.p df
Business Value of
Agile Organizations

Dave’s Background

Gov’t contractor with
32+ years
of
IT experience

B.S.
Comp
.
Sci
., M.S.
Soft
.
Eng
., & D.M.
Info
.
Sys
.

Large gov’tprojects
in U.S., Far/Mid-East, & Europe
2

Career systems & software engineering methodologist

Lean-Agile, Six Sigma, CMMI, ISO 9001, DoD5000

NASA, USAF, Navy, Army, DISA, & DARPA projects

Published seven books & numerous journal articles

Intn’lkeynote speaker, 134 talks to 12,000+ people

Specializes in metrics, models, & cost engineering

Cloud Computing, SOA, Web Services, FOSS, etc.

Adjunct at five Washington, DC-area universities

Business Agility—Mike Tyson
3

Business Agility—Related Quotes
4

Everybody has a plan until I punch them in the mouth -- Mike Tyson

It's tough to make predictions, especially about the future -- Mark Twain

A good plan violently executed today is better than a perfect plan tomorrow -- George Patton

You can't predict the future, because it's becoming more unpredictable -- William Fulmer

Those who have knowledge don't predict, those who predict don't have knowledge -- Lao Tzu

Some things are so unexpected that no one is prepared for them -- Leo Roste

Forecasters aren't smart, they merely have their ignorance better organized -- Anonymous

The herd instinct among forecasters makes sheep look like independent thinkers -- Edgar Fiedler

It's best to be bold instead of right, because most people are wrong anyway -- Dave Rico




Business Agility Drivers
5
Overruns
Attrition
Escalation
Runaways
Cancellation
Global
Competition
Demanding
Customers
Organization
Downsizing
System
Complexity
Technology
Change
Vague
Requirements
Work Life
Imbalance
Inefficiency
High O&M
Lower DoQ
Vulnerable
N-M Breach
Reduced
IT Budgets
81 Month
Cycle Times
Redundant
Data Centers
Lack of
Interoperability
Poor
IT Security
Overburdening
Legacy Systems
Obsolete
Technology & Skills
Pine, B. J. (1993). Mass customization: The new frontier in business competition . Boston, MA: Harvard Business School Press.
Pontius, R. W. (2012). Acquisition of IT: Improving efficiency and effectiveness in IT acquisition in the DoD. Second Annual
AFEI/NDIA Conference on Agile in DoD, Springfield, VA, USA.

6
Business Agility—Newton’s 3
rd
Law
THE SATIR CURVE
71%
56%
SERVICES
71%
MANUFACTURING
Exponential
Technology
Change
Exponential
Market
Destabilization
Exponential Business Failures (1990s)
Exponential Business Failures (2000s)
Singularity

Business Agility Justification
7
Langley, M. A. (2012). Organizational agility : Pulse of the profession (in-depth report). Newtown Square, PA: Project Management Institute.
Glenn, M. (2009). Organizational agility : How business can survive and thrive in turbulent times . London, UK: The Economist.

What is Agility?

A-gil-i-ty(ә-'ji-lә-tē) Property consisting of
quickness
,
lightness
, and
ease of movement
;
To be very nimble

The ability to create and respond to changein order to
profit in a turbulent global business environment

The ability to quickly reprioritizeuse of resources when
requirements, technology, and knowledge shift

A very fast responseto sudden market changes and
emerging threats by intensive customer interaction

Use of evolutionary , incremental , and iterativedelivery
to converge on an optimal customer solution

Maximizing BUSINESS VALUEwith right sized, just-
enough, and just-in-time processes and documentation
Highsmith, J. A. (2002). Agile software development ecosystems. Boston, MA: Addison-Wesley.
8


What is Business Agility ?
9

People-centric
way to create innovative solutions

Product-centric
alternative to big work-in-process

Market-centric
model to maximize business value

Hearrell, R. (2015). Building enterprise agility . New York, NY: PricewaterhouseCoopers.

Business Agility Dimensions

“Agility” has many
dimensions
other than IT

It ranges from
leadership
to
technological
agility

Today’s focus is on
organizational
&
enterprise
agility

Agile Leaders
Agile Organization Change
Agile Acquisition & Contracting
Agile Strategic Planning
Agile Capability Analysis
Agile Program Management
Agile Tech.
Agile Information Systems
Agile Tools
Agile Processes & Practices
Agile Systems Development
Agile Project Management
10

11

Flexible Manufacturing

Operations Research

Incremental Planning ●
Customer Focus

Early Beta Testing

Empowerment

Lean Thinking

Evolutionary Biology

Complex Adaptive Systems

New ProductDevelopment

Chaos Theory

Emergence

Innovation

Motivation

Strategic Planning

Organization Development

Project Management

Systems Engineering

Software Engineering ●
Quality Management

Information Technology
Business Agility Antecedents

12
Business Agility Timeline
19952000 2005 201020152015
Structured Chaos
Judo Strategy
Adaptive Enterprise
Agile Organization
Good to Great
Response Ability
Mobile Business
Agile Business
Corporate Agility
Fast Strategy
Business Agility
Motivational Drive
Agility Factor
Agility Advantage
Holocracy
Agility Shift
SEAM
Government Agility







Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com

Business Agility Definitions
13
No Year Model AuthorDefinition
1
1997
Structured Chaos
BrownReactingresponsibly to, anticipating, and dictating the pace of change
2
1998 Judo Strategy Cusumano Using speedand agility to mitigate effects of a company's competitors
3
1999 Adaptive Enterprise Haeckel Ability of large complex organization to systematically adaptto change
4
2000
Agile Organization
FulmerSense making for successby understanding landscape, learning, and leading
5
2001 Good to Great Collins Increasing performancestanding by disciplined thought, people, and action
6
2001 Response Ability DoveIntellectualand physicalability to actupon knowledgefor business success
7
2002
Mobile Business
Evans Confluence of business processes, e-commerce, and wirelesscommunications
8
2003 Agile Business McCarthy Common ability to maintain a steadycourse in the face of economic change
9
2007 Corporate Agility Grantham Creating new productsand markets fasterthan competitors by reducing costs
10
2008
Fast Strategy
DosStrikingwith strengthand speedthrough strategy, commitment, and fluidity
11
2009 Business Agility Hugos Ability to respondand act quicklyto capitalize on new opportunities
12
2009 Motivational Drive PinkStrategyof empoweringpeople with autonomy, mastery, and purpose
13
2014
Agility Factor
Worley Ability to make timely, effective, and sustainedorganizational changes
14
2014 Agility Advantage SetiliSeeingand respondingto market changes capablyand quicklythan others
15
2015 Holacracy Robertson Governance structure for semi-autonomous teams enabling rapid adaptation
16
2015
Agility Shift
Meyer Competence, capacity, and confidence to learn, adapt, and innovate
17
2015 SEAM Worley Ability to make timely, effective, and sustainable organizational changes
18
2015
Government Agility
RicoAdaptingto changeby reducing scope , outsourcing, and collaboration







Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com

14
Business Agility Attributes
Category Attribute 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Strategic
Agility
Objective
   
Experiments
  
Vision-Strategy
   
Time Based

Change-Adapt
 
Customer Focus
 
Relationships
 
Cultural
Agility
Leadership

Talent

Purpose
 
Collaborative

Communication

Empowerment
   
Improvement
  
Process
Agility
Continuous

Iterative

Operational

Lightweight

Disciplined

Improving
 
Automation

Product &
Service
Agility
Fewer

Smaller

Modular

Flexible

Reconfigurable

Inexpensive

Throwaway

Technology
Agility
Software

Open Source

Microservices

Commercial

Reusable

Cloud Computing

Mobile

IT Infrastructure
Agility
Intranet

Internet

Text

Email

Cellphone

Video

Workflow

Organization
Design
Agility
Narrow
 
Flatter

Networked

Organic

Self Organizing

Cross Functional
 
Light Governance

Capital
Infrastructure
Agility
Virtual

Telepresence

Outsourced

Offshoring

Global

Public

Leased



Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com

4. P
RODUCT
& S
ERVICE
A
GILITY
Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com

Created by Dave Rico in 2015-16

Metamodelanalysis of 18 major approaches

Product
,
technology
, &
infrastructure
major themes
15

Business Agility Metamodel
Fewer
Smaller
Modular
Flexible
Reconfigurable
Inexpensive
Throwaway
6. IT I
NFRASTRUCTURE
A
GILITY
Intranet
Internet
Text
Email
Cellphone
Video
Workflow
1. S
TRATEGIC
A
GILITY
Objective
Experiments
Vision-Strategy
Time Based
Change-Adapt
Customer Focus
Relationships
7. O
RGANIZATION
D
ESIGN
A
GILITY
Narrow
Flatter
Networked
Organic
Self Organizing
Cross Functional
Light Governance
5. T
ECHNOLOGY
A
GILITY
Software
Open Source
Microservices
Commercial
Reusable
Cloud Computing
Mobile
8. C
APITAL
I
NFRASTRUCTURE
A
GILITY
Virtual
Telepresence
Outsourced
Offshoring
Global
Public
Leased
3. P
ROCESS
A
GILITY
Continuous
Iterative
Operational
Lightweight
Disciplined
Improving
Automation
B
USINESS
A
GILITY
M
ETAMODEL
S
TRATEGIC
A
GILITY
C
ULTURAL
A
GILITY
P
ROCESS
A
GILITY
P
RODUCT
& S
ERVICE
A
GILITY
T
ECHNOLOGY
A
GILITY
IT I
NFRASTRUCTURE
A
GILITY
O
RGANIZATION
D
ESIGN
A
GILITY
C
APITAL
I
NFRASTRUCTURE
A
GILITY
2. C
ULTURAL
A
GILITY
Leadership
Talent
Purpose
Collaborative
Communication
Empowerment
Improvement

Relationships Partnerships, crowdsourcing,
open innovation
Customer Focus Customer focused products and services
Change-Adapt Change and adaption proficiency
Time Based Fast lead and cycle times
Vision-Strategy Clear vision and strategy
Experiments Use of physical experiments
Objective Clear goals and objectives

Top-level plan to achieve enterprise-wide objectives

Objective, experimental, temporary, & evolutionary

Customer-focused
,
bottoms-up
, &
adaptable
16
1. StrategicAgility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

Improvement Relentless perfection, continuous
improvement, and mastery
Empowerment Egalitarian, ownership, and authority
Communication Rich, high-context transparent dialogue
Collaborative Internal and external cooperation
Purpose Shared sense of purpose and conviction
Talent Strong technical skills and competencies
Leadership Visionary, servant leaders throughout

Organizational values, ideas, beliefs, & knowledge

Visionary leaders, talented workforce, & purposeful

Collaborate
,
empower
, &
continuous improvement
17
2. CulturalAgility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

Automation One-touch automation from order
through validation and delivery
Improving Daily, weekly, and monthly retrospectives
Disciplined Strong process and quality focus
Lightweight Minimal essential processes necessary
Operational Working products and services
Iterative Time-based iterations and releases
Continuous Continuous delivery, flow, and DevOps

Operational steps to generate product & service

Lean-agile discipline, quality-focused, lightweight

Continuous flow
,
time-based
, &
highly-automated
18
3. ProcessAgility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

Throwaway Disposable designs with short life
spans
Inexpensive Least expensive, value adding design
Reconfigurable Fast and easy reconfigurability
Flexible Flexible materials and manufacturability
Modular Highly modularized and interchangeable
Smaller Simple architecture and design
Fewer Focus on fewer core competencies

Goods or services with value organizations produce

Simplest design, rapid & inexpensive producibility

Core competencies
,
small-simple
, &
temporary
19
4. Product& ServiceAgility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

Mobile Migrate towards mobile cellular
platforms
Cloud Computing Commercial data centers and services
Reusable Reuse of commercial middleware services
Commercial Mashups of commercial web services
Microservices Small custom web services and mobile apps
Open Source Use free and open source software
Software Compete with software vs. hardware

Underlying science, engineering, & materials used

Fast, inexpensive, flexible, malleable, & evolutionary

Software
,
free open source
, &
commercial IT services
20
5. TechnologyAgility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

Workflow Simplistic workflow enterprise
applications and portals
Video Periodic use of video conferences and webinars
Cellphone Mobile phones for synchronous communications
Email Use of email when necessary for reporting
Text Use of text, chat, and other asynchronous communications
Internet Internet services such as gmail, google docs, drop box, etc.
Intranet Small private intranets consisting of commercial mashups

Public or private network for business operations

Web services, communications, & collaboration

Internet
,
asynchronous
, &
personally-owned
21
6. IT InfrastructureAgility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

Light Governance Minimal, lightweight policies,
standards, and guidelines
Cross Functional Small interdisciplinary problem solving teams
Self Organizing Self selected and governed teams and collaboration
Organic Use of temporary teams and structures
Networked Loosely networked functions, projects, and teams
Flatter Little to no organizational hierarchy
Narrow Smallest possible organizational design possible

Internal management hierarchy of organization

Flat, small, narrow, networked, & technical focus

Extremely flat
,
self-organizing
, &
light governance
22
7. Organization DesignAgility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

Leased Use of temporary, leased office
spaces and buildings
Public Use of public, shared collaboration spaces
Global International crowdsourcing and open innovation
Offshoring Use of offshore manufacturing and free trade zones
Outsourced Use of temporary, as-needed workforce and services
Telepresence Use of teleworking and telecommuting
Virtual Use of virtual, non-physical human resources

Capital infrastructure used for business operations

Smallest possible, outsourced, & personally owned

Virtual
,
Internet-based
, &
commercially-outsourced
23
8. Capital Infrastructure Agility

Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com 

4. P
RODUCT
& S
ERVICE
A
GILITY
Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com

Early models based on strategies & operations

Evolved into an experimental sense & response

Products
,
organization
, &
facilities
important too
24
Business AgilityMetamodelRecap
Fewer, Smaller,
& Inexpensive
6. IT I
NFRASTRUCTURE
A
GILITY
Public Internet
Services Based
1. S
TRATEGIC
A
GIILTY
Experimental
Sense & Respond
7. O
RGANIZATION
D
ESIGN
A
GILITY
Flat, Networked,
& Holocratic
5. T
ECHNOLOGY
A
GILITY
Software-Based
Microservices 8. C
APITAL
I
NFRASTRUCTURE
A
GILITY
On-Demand
Teleworkers
3. P
ROCESS
A
GILITY
Lean, Agile,
& Continuous
B
USINESS
A
GILITY
M
ETAMODEL
2. C
ULTURAL
A
GILITY
Collaborative &
Empowered

Business Agility MetamodelKiviat
Objective
Experiments
Vision-Strategy
Time Based
Change-Adapt
Customer Focus
Relationships
Leadership
Talent
Purpose
Collaborative
Communication
Empowerment
Improvement
Continuous
Iterative
Operational
Lightweight
Disciplined
Improving
Automation
Fewer
Smaller
Modular
Flexible
Reconfigurable
Inexpensive
Throwaway
Software
Open Source
Microservices
Commercial
Reusable
Cloud Computing
Mobile
Intranet
Internet
Text
Email
Cellphone
Video
Workflow
Narrow
Flatter
Networked
Organic
Self Organizing
Cross Functional
Light Governance
Virtual
Telepresence
Outsourced
Offshoring
Global
Leased
Commercial
1
2
3
4
5
6
7
1. Strategic Agility 8. Capital Infrastructure Agility
2. Cultural
Agility
3. Process
Agility
4. Product & Service Agility 5. Technology Agility
6. IT Infrastructure
Agility
7. Organization
Design Agility
Rico, D. F. (2016). Agile businesses: A metamodel of lean and agile organizational strategies . Retrieved March 1, 2016, from http://davidfrico.com
25

G
OVERNMENT
A
GILITY
IT Infrastructure
Facility Infrastructure
Organization Infrastructure
Information Infrastructure
Resource Infrastructure
Collaborative Infrastructure
Cultural Infrastructure
F
ACILITY
I
NFRASTRUCTURE
Rico, D. F. (2015). Dave’s notes: U.S. government agile business model . Retrieved March 1, 2016, from http://davidfrico.com

Created by Dave Rico in 2015

Inspired by U.S. DoD 3rd offset strategy

Lean
,
collaboration
, &
outsourcing
major themes
26

Business Agility Gov’t Example
Leased Commercial Facilities
Hardened Commercial Facilities
Lease vs. Build Philosophy
Smaller Customer Facilities
Outsourced Facility Workforce
O
RGANIZATION
I
NFRASTRUCTURE
Smaller Flatter Workforce
Integrated Workforce
Outsourced Workforce
Collaborative Teams
Shared Decision Making
IT I
NFRASTRUCTURE
Leased Data Centers
Leased Web Services
Buy vs. Build Philosophy
Smaller Custom Services
Outsourced IT workforce
I
NFORMATION
I
NFRASTRUCTURE
Outsourced Data & Information
Outsourced Analytics Data
Fewer Information Sources
Outsourced Workforce
Buy vs. Build Philosophy
C
OLLABORATIVE
I
NFRASTRUCTURE
More Community Participation
More International Participation
More Information Sharing
More Commercial Participation
More Crowdsourcing
C
ULTURAL
I
NFRASTRUCTURE
Less Buyer-Supplier Barriers
Less Us vs. Them Mentality
Less Legalistic Relationships
More Cross Functional Teams
More Communication & Trust
R
ESOURCE
I
NFRASTRUCTURE
Smaller Resource Footprint
Temporary Throwaway Services
Micro Timelines & Services
Smaller Budgets & Thresholds
Few Capital Intensive Purchases

Nadasen, D. (2015). Fiscal year 2015 fact book . Largo, MD. UMUC.
DeGruttola, M. (2015). The future of open source . Waltham, MA: North Bridge.
Sands, R. (2012). Open source by the numbers. Burlington, MA: Black Duck Software.

Virtual enterprises have reached tipping point

Many U.S. civilian agencies use virtual workforce

Online
,
large
, & have a very
small capital footprint
27

Business Agility Case Studies
Open SourceSoftwareUniv. of Maryland Univ. College

95% of IT firms use open source tools

Over 10 million open source projects

At least 10 million contributors to open source

Most contributors don’t have full-time day jobs

Most contributors work from home without pay

~ 100 billion lines of software source code
50% are "live" projects with active commits
Live projects average 6.5 million lines of code
50% of Projects are Java, C, and C++
Dozens of open source repositories worldwide
Most repositories offer st atic source code analysis
Automatic code security analysis typically done
Development process follows lean-agile paradigm 
Surpasses commercial code quality

Commercial code has more severe defects

Linux is benchmark for open source quality

Open, Affordable, Quality Education

One of 11 major schools in USM

82,555 Total Students

248,104 Course Enrollments

31,378 Full-Time Students
(38,140 UMCP)

11,550 Annual Degrees Granted
(9,700 UMCP)
237,343 Degrees Since 1948
Offers more than 90 types of degrees

45% of Students are Minorities
(11% UMCP)

28% of Degrees go to Minorities

75% of Students Work Full-Time

54% of Students Have Children

63% of Students Active Duty Military
140 Worldwide Locations on Four Continents 
535,480 Square Feet
(13.5m UMCP)

MTCO2e/Student < 0.72
(6.5 UMCP)

28
Business Agility Performance
Langley, M. A. (2014). High-cost of low performance: Pulse of the profession (a snapshot). Newtown Square, PA: Project Management Institute.

Hoque, F., et al. (2007). Business technology convergence . The role of business technology convergence in innovation
and adaptability and its effect on financial performance . Stamford, CT: BTM Corporation.
29

Study of 15
agile
vs.
non-agile
Fortune 500 firms

Based on models to measure
organizational agility

Agile firms
out perform
non agile firms by
up to 36%
Business Agility Benefits I

30
Business Agility Benefits II
Alva, H. et al. (2010). Business agility index : The characteristics of an agile enterprise and how they drive superior
financial performance by convergi ng business and technology management . Stamford, CT: BTM Corporation.


E-commerce market is model of business agility

Small footprint combined with flexible technologies

Outpacesbrick-and-mortar
retailing by
2 to 8
times
31

Business Agility Benefits III

Business Agility—National Level
Suhy, S. (2014). Has the U.S. government moved to agile without telling anyone ? Retrieved April 24, 2015, from http://agileingov.com
Porter, M. E., & Schwab, K. (2008). The global competitiveness report : 2008 to 2009 . Geneva, Switzerland: World Economic Forum.
32

U.S. gov’t agile jobs grew by 13,000%
from 2006-2013

Adoption is higher in
U.S. DoD
than
Civilian Agencies

GDP
of countries with
high adoption
rates is
greater

High
Low
Low High
A
GILITY
COMPETITIVENESS
G
OVERNMENT
A
GILE
J
OB
G
ROWTH
PERCENTAGE
13,000%
0
2006 2013
Y
EARS
G
OVERNMENT
C
OMPETITIVENESS

33

Late big bang integration increases WIP backlog

Agile testing early and often reduces WIP backlog

CI/CD/DevOps lower
WIP
,
Cycle Time
, &
Lead Time
Nightingale, C. (2015). Seven lean metrics to improve flow . Franklin, TN: LeanKit.

K
ANBAN
B
OARD
C
UMULATIVE
F
LOW
D
IAGRAM
L
EAD
T
IME
& C
YCLE
T
IME
P
UTTING IT
A
LL
T
OGETHER
Business Agility Measures I

Increase (Commercial)
● Products & Services
● Product Safety & Reliability
● Reputation, Image, & Brand Equity
●Customers
● Marketshare
● Sales
● Revenues
● Profits
● Return on Investment
Increase (Government)
● Mission Efficiency & Effectiveness
● National Security & Safety Posture
● Identification of High-Value Targets
● Actionable Intelligence
● Intelligence Value Estimate
● Exploit Multiple Signal Sources
● Exploit Emerging Signal Sources
● Exploit Emerging Missions & Threats
● Strategic & Tactical Military Readiness
Reduce (Commercial & Gov’t)
● Technical Complexity, Scale, & Size
● Development, Test, & Evaluation Costs
● Cycle Time & Delivery Speed
● Rework, Defects, Faults, & Failures
● Cost, Schedule, & Budget Overruns
● Turnover, Attrition, & Knowledge Loss
● Programmatic & Technical Risks
● Tech Obsolescence & Legacy Sys. Cost
● Hardware & Software Purchasing Time
● Integration & Interoperability Costs
Increase (Commercial & Gov’t) ● Efficiency & Effectiveness
● Delivery Order Quantity (DoQ)
● Speed, Productivity, & Competitiveness
● Innovation, New Ideas, & Technology
● Morale, Retention, & Emp. Satisfaction
● Communication & Knowledge Sharing
● Cust. Satisfaction, Loyalty, & Retention
● Faster Tech. & Infrastructure Refresh
● Decisionmaking & Governance Speed
● Certification & Accreditation Speed
34
Business Agility Measures II
Strategic
Operational

B
USINESS
A
GILITY
Summary

Early approaches focused on strategy & culture

Hard to make big administrative bureaucracy agile

Need to focus on
products
,
org. structure
, &
facilities
35
Agility isn'tjust for [software]coding cowboys
[Business ]agility has been around for a long time
Agility is rooted in a lot of rich theoretical traditions
Lean and agile paradigms are at root of business agility
Business agility is NOTa means of putting lipstick on a pig
The KEYto agility is to make the ENTIREorganization agile
Applies to strategy, culture, products, technologies, & facilities
True business agility is by competing with softwarevs. hardware
 



Business Agility—Related Books 
Guides
to
software methods
for business leaders

Communicates
the
business value
of IT approaches

Rosetta stones
to unlocking
ROI
of
software methods

http://davidfrico.com/agile-book.htm (Description )

http://davidfrico.com/roi-book.htm (Description)
36

Dave’s Professional Capabilities
37
Software
Quality
Mgt.
Technical
Project
Mgt.
Software
Development
Methods
Organization
Change
Systems
Engineering
Cost
Estimating
Government
Contracting
Government
Acquisitions
Lean
Kanban
Big Data,
Cloud, NoSQL
Workflow
Automation
Metrics,
Models, & SPC
Six
Sigma
BPR, IDEF0,
& DoDAF
DoD 5000,
TRA, & SRA
PSP, TSP, &
Code Reviews
CMMI &
ISO 9001
Innovation
Management Statistics, CFA,
EFA, & SEM
Research
Methods
Evolutionary
Design
Valuation
— Cost-Benefit Analysis, B/CR, RO I, NPV, BEP, Real Options, etc.
Lean-Agile
— Scrum, SAFe, Continuous Integr ation & Delivery, DevOps, etc.
STRENGTHS– Data Mining Gathering & Reporting Performance Data Strategic Planning Executive & Manage-
ment Briefs Brownbags & Webinars White Papers Tiger-Teams Short-Fuse Tasking Audits & Reviews Etc.
●Action-oriented. Do first (talk about it later).
●Data-mining/analysis. Collect facts (then report findings).
●Simplification. Communicating complex ideas (in simple terms).
●Git-r-done. Prefer short, high-priority tasks ( vs. long bureaucratic projects).
●Team player. Consensus-oriented collaboration (vs. top-down autocratic control).
P
MP
, C
SEP
,
A
CP
, C
SM
,
& S
AFE
32 Y
EARS
INIT
I
NDUSTRY

18 Business Agility Patterns,
Models, & Other Alternatives

S
TRUCTURED
C
HAOS
Brown, S. L., & Eisenhardt, K. M. (1998). Competing on the edge: Strategy as structured chaos . Boston, MA: HBS Press.

Created by Brown et al. in 1998

Inspired by chaos & complex adaptive sys.

Time-based
,
portfolio
, &
collaboration
major themes
39

1. Structured Chaos
T
IME
P
ACING
Transitions

Choreography
Rhythm

Intervals
Time Pacing
Edge of Time
Edge of Chaos
E
DGE OF
C
HAOS
Chaos

Improvisation
Structure

Coadaptation
E
DGE OF
T
IME
Past

Regeneration
Future

Experimentation

J
UDO
S
TRATEGY
Flexible Scaling
Flexible Strategy
Flexible Design
Flexible Process
Cusumano, M. A., & Yoffie, D. B. (1998). Competing on internet time : Lessons from netscape and its battle with micro soft. New York, NY: The Free Press.

Created by Mike Cusumanoet al. in 1998

Inspired by Silicon Valley Internet/Web firms

Planning
,
testing
, &
implementing
major themes
40

2. Judo Strategy
F
LEXIBLE
S
TRATEGY
Move to Uncontested Ground
Avoid Direct Attacks
Leverage Others Weakness
Avoid Sumo Competitions
F
LEXIBLE
D
ESIGN
Multi-Market Platforms
Modular Architectures
Reusable Components
Parallel Development
F
LEXIBLE
S
CALING
Create a Living Vision
Acquire Best Talent
Be Small, Act Big
Leverage Relationships
F
LEXIBLE
P
ROCESS
Adapt Development Priorities
Allow Features to Evolve
Fully Automate Testing
Early Beta Products

A
DAPTIVE
E
NTERPRISE
Adaptiveness
Leadership
Organization
Coordination
Automation
Haeckel, S. H. (1999). Adaptive enterprise: Creating and leading sense-and-respond organizations . Boston, MA: HBS Press.
41

L
EADERSHIP
Create Clarity
Create Context
Establish Outcomes
Reduce Ambiguity
C
OORDINATION
Define Roles
Codify Commitments
Manage Commitments
Enable Modularity
A
DAPTIVENESS
Sense
Interpret
Decide
Act
A
UTOMATION
Automate Schema
Automate Roles
Automate Decisions
Automate Commitment

Created by Stephan Haeckel in 1999

Inspired by complex adaptive systems theory

Leaders
,
governance
, &
coordination
major themes
3. Adaptive Enterprise
C
ONTEXT
Reason for Being
Governing Principles
Abstract Business Design
Refine & Adapt Context

A
GILE
O
RGANIZATION
Fulmer, W. E. (2000). Shaping the adaptive organization : Landscapes, learning, and leadership in volatile times . New York, NY: Amacom.

Created by William Fulmer in 2000

Inspired by chaos & complex adaptive sys.

Marketing
,
adaptation
, &
culture
major themes
42

4. Agile Organization
U
NDERSTAND
L
ANDSCAPE
Make Sense of World
Understand Uncertainty
Understand Landscape
Understand Landscape
Learn to Adapt
Shape the Organization
S
HAPE THE
O
RGANIZATION
Attract Adaptive People
Focus on Customer
Create Success Culture
L
EARN TO
A
DAPT
Plan to Adapt
Create Adaptive Culture
Structure for Adaptation

Collins, J. (2001). Good to great: Why some companies make the leap and others don’t . New York, NY: HarperCollins.

Created by Jim Collins in 2001

Study of late 20th century Fortune 500 firms

Servant leaders
,
talent
, &
objectivity
major themes
43

5. Good to Great
D
ISCIPLINED
P
EOPLE
L
EVEL
5 L
EADERSHIP
Ambition for Company
Compelling Modesty
Unwavering Resolve
Give Credit to Others
F
IRST
W
HO
, T
HEN
W
HAT
Deep Strong Teams
Who You Pay Not How
Rigorous Not Ruthless
First Who, Firm, & Life
D
ISCIPLINED
T
HOUGHT
C
ONFRONT
B
RUTAL
F
ACTS
Facts vs Dreams
Climate of Truth
Unwavering Faith
Confidence & Realism
H
EDGEHOG
C
ONCEPT
Understand Strength
Understand Economics
Understand Passion
Understand Bravado
D
ISCIPLINED
A
CTION
C
ULTURE OF
D
ISCIPLINE
Free But Responsible
Culture Not a Tyrant
Adhere to Hedgehog
Start a Stopdoing List
D
ISCIPLINE
A
CCELERATORS
Tech Induced Change
Tech Acceleration
Tech Moderation
Tech Mastery

Dove, R. (2001). Response ability: The language, structure, and culture of the agile enterprise . New York, NY: John Wiley & Sons.

Created by Rick Dove in 2001

Inspired by lean firms from the early 1990s

Change
,
flexibility
, &
improvement
major themes
44

6. Response Ability
C
HANGE
P
ROFICIENCY
F
RAMEWORKS FOR
C
HANGE
Change Proficiency
Quality of Change
Categorizing Change
Proactive Dynamics
Reactive Dynamics
Language of Change
R
ESPONSE
S
ITUATION
A
NALYSIS
Define Problems
Identify Opportunities
Establish Requirements
Collaboration
Analyze Process
Validate Process
A
DAPTABLE
S
TRUCTURE
E
NABLING
R
ESPONSE
A
BILITY
Deferred Commitment
Distributed Control
Elastic Capacity
Redundancy & Diversity
Self Organization
Evolving Standards
R
ESPONSIVE
S
YSTEMS
Self Organized Dynamic
Response Able Product
Response Able Process
Response Able Practice
Response Able People
Just in Time
Systems
K
NOWLEDGE
& C
ULTURE
W
AKING
U
PTHE
E
NTERPRISE
Strategic Planning
Business Justification
Organization Relations
Innovation Management
Knowledge Management
Performance Me
trics
M
ANAGING THE
E
NTERPRISE
Organizational Learning
Communities of Practice
Collaborative Learning
Insightful People
Workshops & Metaphors
Portfolio Management

M
OBILE
B
USINESS
Strategic Considerations
Tactical Considerations
Strategic Roadmap
Architectural Frameworks
Applications
Technologies
Implementation
T
ACTICAL
C
ONSIDERATIONS
Evans, N. D. (2002). Business agility: Strategies for gaining competitive advant age through mobile business solutions . Upper Saddle River, NJ: Prentice-Hall.

Created by Nicholas Evans in 2002

Inspired by wireless mobile communications

Process
,
e-business
, &
wireless tech.
major themes
45

7. Mobile Business
Design Technical Architectures
Design Flexible Processes
Design Flexible Technologies
Focus on User Acceptance
Measure Results of Initiative
S
TRATEGIC
R
OADMAP
Assess Business & Technology
Identify Target Opportunities
Develop Business Case
Develop Project Plan
Calculate Return on Investment
S
TRATEGIC
C
ONSIDERATIONS
Merge with Business Strategy
Make IT a Strategic Partner
Pursue Holistic Strategy
Exploit and Defend Position
Design Business Processes
A
RCHITECTURAL
F
RAMEWORKS
Business Process Discovery
Enterprise Architecture
Reference Architecture
Technical Architecture
Service Architecture
T
ECHNOLOGIES
Align Strategy-Business Rules
Application Servers
Wireless Middleware
Enterprise Application Integ.
Partnership Ecosystems
A
PPLICATIONS
Executive Dashboards and BI
Sales & Field Force Automation
Customer Relationship Mgt.
Customer Service Intelligence
Supply Chain Management
I
MPLEMENTATION
Insource or Outsource
Phased Rollout
Legacy Infrastructure
Test and Evaluate
Continuous Improvement

McCarthy, M. P., & Stein, J. (2003). Agile business for fragile times : Strategies for enhancing competiti ve resiliency and stakeholder trust . New York, NY: McGraw-Hill.

Created by Pat McCarthy et al. in 2003

Inspired by strategic and operational agility

Value
,
alignment
, &
operations
major themes
46

8. Agile Business
S
TRATEGIC
A
GILITY
Revenue & Profit Focus
Understand Central Priorities
Assess & Report on Value
Transparent Communication
Organizational Alignment
Frequent Test & Measurement
High Performance Culture
Shared Decision Making
Rapidly Adapt to Change
O
PERATIONAL
A
GILITY
Critical Thinking & Questions
Value & Profit Focus
Adapt Quickly to Change
Flexible Integrated Processes
Lean & Disciplined
Reflective vs. Reflexive
Trust & Relationships
Passionate Improvement
Measure & Learn from Results

C
ORPORATE
A
GILITY
Grantham, C. E., & Ware, J. P., & Williamson, C. (2007). Corporate agility : A revolutionary new model for competing in a flat world . New York, NY: Amacom.

Created by Charles Grantham et al. in 2007

Inspired by global outsourcing and offshoring

Expense
,
talent
, &
virtualization
major themes
47

9. Corporate Agility
R
EDUCE
O
PERATING
C
OSTS
Reduce Real Estate
Reconfigure Corporate Space
Acquire Green Building
Choose Inexpensive Locale
Outsource Labor
Reduce Turnover Costs
Reduce Operating Costs
Attract Top Human Talent
Institutionalize Innovation
I
NSTITUTIONALIZE
I
NNOVATION
Online Workspaces
Customer Responsiveness
Diverse Workforce
Ergonomic Work Spaces
Balance Openness & Privacy
Creative Personal Time
A
TTRACT
T
OP
H
UMAN
T
ALENT
Collaborative Strategy
Meaningful Work & Choices
Work Anywhere & Anytime
Opportunities for Growth
Empower, Engage, & Trust
Learning & Inclusiveness

Dos, Y., & Kosonen, M. (2008). Fast strategy : How strategic agility will help you stay ahead of the game . Harlow, UK: Pearson Education.

Created by Yves Dos & MikkoKosonenin 2008

Inspired by four+ decades of strategy research

Sensing
,
decisions
, &
adaptation
major themes
48

10. Fast Strategy
S
HARPEN
S
TRATEGIC
S
ENSITIVITY
R
APID
S
TRATEGY
Strategic Foresight
Strategic Insight
Simple Rules
M
AKING
S
ENSE VS
. S
ENSING
External Knowledge
Utilize Experimentation
Holistically Involve All
Know Where You Stand
Provoke Thinking
High-Quality Dialogue
B
UILD
C
OLLECTIVE
C
OMMITMENT
R
APID
C
OMMITMENT
Difficult Decisions
Captains vs. Architects
Barons vs. Courtiers
U
NIFIED
T
OP
T
EAM
D
ECISIONS
Mutual Dependency
Work Together
Conflict Management
Change the Top Team
Align Leadership Style
Executive Capabilities
K
NOWLEDGE
& C
ULTURE
R
APID
A
DAPTATION
Imprisoned Resources
Identifying Resources
Prioritize Modularity
D
IRECTION VS
. S
TRUCTURE
Mobilize Resources
Foster People Mobility
Reduce Business Risk
Reduce Entry-Exit Risk
Access Resources
Grow Resources

B
USINESS
A
GILITY
Hugos, M. H. (2007). Business agility: Sustainable prosperity in a relentlessly competitive world . Hoboken, NJ: John Wiley & Sons.

Created by Michael Hugosin 2009

Inspired by micro-marketing segmentation

Teams
,
marketing
, &
improvement
major themes
49

11. Business Agility
C
OORDINATE VS
. C
ONTROL
Use Dynamics of Swarming
Clear Performance Objectives
Networks vs. Hierarchies
Meaningful & Stable Goals
Ample Training & Trust
Good Leadership & Structure
Coordinate vs. Control
Fast, Simple, & Courage
Balanced Strategy-Tactics
B
ALANCED
S
TRATEGY
-T
ACTICS
Driven by Strategy Awareness
Continuous Improvement
Use DMAIC Cycles
Move It or Lose It
Use Reinforcing Feedback
Balance People & Technology
F
AST
, S
IMPLE
, & C
OURAGE
Win Without Fighting
Avoid Strength, Attack Weak
Know Truth, Sow Deception
Use Speed & Momentum
Select Opponent-Battle Wisely
Observe, Orient, Decide, & Act

M
OTIVATIONAL
D
RIVE
Pink. D. H. (2009). Drive: The surprising truth about what motivates us . New York, NY: Riverhead Books.

Created by Dan Pink in 2009

Inspired by field of motivation research

Purpose
,
autonomy
, &
mastery
major themes
50

12. Motivational Drive
I
NDIVIDUAL
P
URPOSE
Goal
Objective
Power
Policy
Culture
Rejuvenation
Individual Purpose
Individual Autonomy
Individual Mastery
I
NDIVIDUAL
M
ASTERY
Inquiring
Flow
Mindset
Learning
Challenge
Asymptotic
I
NDIVIDUAL
A
UTONOMY
Accountable
Control
Task
Time
Team
Technique

A
GILITY
F
ACTOR
Strategizing
Perceiving
Testing
Implementing
Worley, C. C., Williams, T., Lawler, E. E. (2014). The agility factor : Building adaptable organizations for superior performance . Hoboken, NJ: John Wiley & Sons.

Created by Chris Worley et al. in 2014

Inspired by PDCA cycle at organization level

Planning
,
testing
, &
implementing
major themes
51

13. Agility Factor
P
ERCEIVING
Sensing the Environment
Communicating Information
Interpreting the Environment
T
ESTING
Setting Up the Test
Running the Test
Learning from the Test
S
TRATEGIZING
Developing the Strategy
Managing the Execution
Establishing the Purpose
I
MPLEMENTING
Managing the Change
Ensuring Delivery of Results
Continuous Improvement

A
GILITY
A
DVANTAGE
See Thru Customer's Eyes
Right Customers & Value
Love the Problem
Breakthrough Strategies
Manage Uncertainty
Turn Strategic Corner
Institutionalize Agility
R
IGHT
C
USTOMERS
& V
ALUE
Setili, A. (2014). Agility advantage: How to identify and act on opportun ities in a fast-changing world . San Francisco, CA: Jossey-Bass.

Created by Amanda Setiliin 2014

Inspired by Customer Active Paradigm

Market
,
alignment
, &
execution
major themes
52

14. Agility Advantage
Look Beneath Averages
Look for Opportunities
Focus on Profitable Customers
Fine-grained Customer Segments
Observe Niches and Outliers
Continuous Customer Intelligence
Automate Customization
L
OVE THE
P
ROBLEM
Know Your Problems
Understand Full Spectrum
Observe Daily Environment
Analyze B2B Markets
Collaborate with Customers
Get Personal With Customers
Study Global Preferences
S
EE
T
HRU
C
USTOMER
'S
E
YES
Ask Your Customers
Observe Your Customers
Put Customers to Work
Get Into the Field
Talk to Your Customers
Participate with Customers
Encourage the Unexpected
B
REAKTHROUGH
S
TRATEGIES
Assemble Cross-functional Teams
Look at Whole Ecosystems
Differentiate from Competitors
Fill the Whole Space
Use Open Innovation
Visualize With Early Prototypes
Leverage Cross-Industry Ideas
T
URN
S
TRATEGIC
C
ORNER
Communicate Intent
Take First Steps
Shed What Doesn't Fit
Focus on Core Competencies
Continuously Narrow Scope
Build New Capabilities
Experiment and Reinforce
I
NSTITUTIONALIZE
A
GILITY
Create Purpose and Focus
Communicate Clear Vision
Hire Right People
Deploy People Effectively
Set an Example
Enhance Autonomy
Continuously Motivate
M
ANAGE
U
NCERTAINTY
Maximize Learning
Manage Technology Risk
Manage Customer-Demand Risk
Think from Ground Up
Be the Best at Something
Employ Scenario Analysis
Test Assumptions

H
OLOCRACY
Robertson, B. J. (2015). Holacracy: The revolutionary management system that abolishes hierarchy . London, UK: Portfolio-Penguin.

Created by Brian Robertson in 2015

Inspired by networked self organizing teams

Purpose
,
governance
, &
recursion
major themes
53

15. Holacracy
E
VOLVING
O
RGANIZATION
Orienting Principles
Lightweight Planning
Evolutionary Strategy
Evolving Organization
Distributing Authority
Holarchical Organization
H
OLARCHICAL
O
RGANIZATIONS
Super & Sub Circles
Leaders & Subleaders
Elected & Assigned Role
D
ISTRIBUTING
A
UTHORITY
Power to Process
Introduce Governance
Discover the Purpose

A
GILITY
S
HIFT
Relevant
Responsive
Resilient
Resourceful
Reflective
Meyer, P. (2015) The agility shift : Creating agile and effective leaders, teams, and organizations . Brookline, MA: Bibliomotion.
54

R
ESPONSIVE
Improvisation
Communication
Decision Making
Mindfulness
Game Finding
R
ESOURCEFUL
Improvisation
Comfort with Constraints
Rapid Prototyping
Curiosity
Comfort with Change
R
ELEVANT
Inter and Intrapersonal
Networking
Social Media
Collaboration Systems
Ecosystem Mapping
R
EFLECTIVE
Learning Agility
Reflecting in Action
Reflecting on Action
Retrospectives
Process Improvement

Created by Pamela Meyer in 2015

Inspired by complex adaptive systems theory

Collaboration
,
resilience
, &
improvising
major themes
16. Agility Shift
R
ESILIENT
Self Mastery
Continuous Learning
Cognitive Reappraisal
Rest & Renewal Practices
Comfort with Uncertainty

SEAM
Worley, C. G., Zardet, V., & Bonnet, M., & Savall, A. (2015). Becoming agile: How the seam approach to management builds adaptability . Hoboken, NJ: John Wiley & Sons. 
Created by Chris Worley et al. in 2015

Inspired by socio-economic decision making

Process
,
right-sizing
, &
governance
major themes
55

17. SEAM
P
ROCESS
I
MPROVEMENT
Diagnosis
Project Action Plan
Group Action Plan
Implementation
Evaluation
Process Improvement
Management Tools
Decision Making
D
ECISION
M
AKING
Purpose & Values
Scope & Resources
Risk, Speed, & Cost
Policy & Structure
Governance & Rights
M
ANAGEMENT
T
OOLS
Strategy & Priorities
Time Management
Competency Grid
Strategic Piloting
Negotiable Contracts

G
OVERNMENT
A
GILITY
IT Infrastructure
Facility Infrastructure
Organization Infrastructure
Information Infrastructure
Resource Infrastructure
Collaborative Infrastructure
Cultural Infrastructure
F
ACILITY
I
NFRASTRUCTURE
Rico, D. F. (2015). Dave’s notes: U.S. government agile business model . Retrieved March 1, 2016, from http://davidfrico.com

Created by Dave Rico in 2015

Inspired by U.S. DoD 3rd offset strategy

Lean
,
collaboration
, &
outsourcing
major themes
56

18. Government Agility
Leased Commercial Facilities
Hardened Commercial Facilities
Lease vs. Build Philosophy
Smaller Customer Facilities
Outsourced Facility Workforce
O
RGANIZATION
I
NFRASTRUCTURE
Smaller Flatter Workforce
Integrated Workforce
Outsourced Workforce
Collaborative Teams
Shared Decision Making
IT I
NFRASTRUCTURE
Leased Data Centers
Leased Web Services
Buy vs. Build Philosophy
Smaller Custom Services
Outsourced IT workforce
I
NFORMATION
I
NFRASTRUCTURE
Outsourced Data & Information
Outsourced Analytics Data
Fewer Information Sources
Outsourced Workforce
Buy vs. Build Philosophy
C
OLLABORATIVE
I
NFRASTRUCTURE
More Community Participation
More International Participation
More Information Sharing
More Commercial Participation
More Crowdsourcing
C
ULTURAL
I
NFRASTRUCTURE
Less Buyer-Supplier Barriers
Less Us vs. Them Mentality
Less Legalistic Relationships
More Cross Functional Teams
More Communication & Trust
R
ESOURCE
I
NFRASTRUCTURE
Smaller Resource Footprint
Temporary Throwaway Services
Micro Timelines & Services
Smaller Budgets & Thresholds
Few Capital Intensive Purchases