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THE ROLE OF
LEADERSHIP IN
SCALING AGILITY
TATHAGAT VARMA
HEAD, STRATEGY &
OPERATIONS, WALMART
LABS
DOCTORAL CANDIDATE,
INDIAN SCHOOL OF
BUSINESS
SCALING ANYTHING
IS HARD!
CHALLENGES IN SCALING AGILE
LEARNINGS FROM CAS 2018
• SCALING AGILE CONTINUES TO REMAIN A SIGNIFICANT
CHALLENGE PER OUR PARTICIPANTS IN CHANGE
AGENT SUMMIT 2018 (NCR) AND 2019 (BANGALORE).
• MAJOR CHALLENGES AND REASONS BEHIND FAILURE:
• CREATING A SHARED VISION
• RE-ALIGNING THE ORGANIZATION
• ESTABLISHING CONSISTENCY
TYPES OF AGILE SCALING
https://www.forbes.com/sites/stevedenning/2016/04/15/what-does-it-mean-to-scale-agile/#13f75ab078b9
Scaling Frameworks
(SAFe, LeSS, DAD, etc.)
???
SCALING “UP” VS. SCALING “OUT”
Scale “Up” Scale “Out”
Vertical Scaling Horizontal Scaling
Across Product Across Organization
Subset of Value Stream Entire Value Stream
Cycle Time, Efficiency,
Outputs
Lead Time, Effectiveness,
Outcomes
Agile Fractals ???
My 2014 talk on Scaling Out Agility: https://www.slideshare.net/Managewell/scalingout-agility
TRADITIONAL VS. AGILE SCALING
Traditional Scaling Agile Scaling
Strategy Top-down Bottom-up, sideways
Role of leadership Assign, or Delegate Lead, and remove constraints
Cadence Episodic planning Continuous process
Transformation Big bang Pilot, Test, Learn, Waves
Structure Functional silos Cross-functional autonomous teams
Paradigm Process determines behavior Behavior determines process
Goal setting Targets-based Evidence-based
Scope Local optimization End-to-end enablement
Interventions People, Process or Tech People, Process and Tech
Decision-making Core Edge
Approach Process-driven Culture-driven
Levers Hierarchy and position Influence and relationship
© Tathagat Varma
ROLE OF LEADERSHIP
• MISSION: “WHY”, NORTH STAR, PURPOSE, OBJECTIVE, …
• VISION: “WHAT”, GOALS, ALIGNMENT, BOUNDARY CONDITIONS, …
• MINDSET: RAPID, ITERATIVE, INCREMENTAL, FEEDBACK,
CONTINUOUS LEARNING, TALENT, EXPERIMENTATION, ...
• NETWORKS: NETWORK OF AUTONOMOUS TEAMS FIGURE OUT
“HOW”, DEFINE THEIR AGILE PROCESS, CROSS-FUNCTIONAL, SELF-
ORGANIZING, AUTONOMY, DYNAMIC RESOURCE MODEL, …
• CULTURE: EMBRACE DIVERSITY, EQUALITY, TRUST, RESPECT,
LEARNING, SHARING, CARING, …
• ORGANIZATION: SYSTEM, STRUCTURE, GOVERNANCE, PROCESSES,
PERFORMANCE STANDARDS, ETC.
MISSION: BRING PEOPLE TOGETHER
VISION: KEEPS PEOPLE FOCUSED
“If Coca-Cola can sell billions of sodas and
McDonald’s can sell billions of burgers, why
can’t Aravind sell millions of sight-restoring
operations, and, eventually the belief in
human perfection? With sight, people
could be freed from hunger, fear, and
poverty. You could perfect the body, then
perfect the mind and the soul, and raise
people’s level of thinking and acting”. –
Dr. G. Venkataswamy
Vision: To eliminate needless blindness......
MINDSET: THE RAW POWER
NETWORKS: THE AMPLIFIER
CULTURE: THE SECRET SAUCE
Source: Seeking Alpha
Source: https://www.cnbc.com/2019/04/02/here-are-the-top-10-airlines-in-the-world-as-ranked-by-tripadvisor.html
4% voluntary turnover
44 consecutive years of profitability
#1 lowest number of customer complaints
85% employees say they’re proud to work for Southwest
No layoffs, no furloughs ever
https://www.humansynergistics.com/blog/culture-university/details/culture-university/2018/05/29/southwest-airlines-reveals-5-culture-lessons
ORGANIZATION: AN ECOSYSTEM
https://www.mckinsey.com/business-functions/organization/our-insights/the-five-trademarks-of-agile-organizations
Five Trademarks
1. Strategy: North Star
embedded across the
organization
2. Structure: Network of
empowered teams
3. Process: Rapid decision
and learning cycles
4. People: Dynamic people
model that ignites
passion
5. Technology: Next-
generation enabling
technology
CONCLUSIONS
https://www.worldphoto.org/sony-world-photography-awards/winners-galleries/2018/professional/shortlisted/natural-world/very

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The Role of Leadership in Scaling Agility

  • 1. THE ROLE OF LEADERSHIP IN SCALING AGILITY TATHAGAT VARMA HEAD, STRATEGY & OPERATIONS, WALMART LABS DOCTORAL CANDIDATE, INDIAN SCHOOL OF BUSINESS
  • 4. LEARNINGS FROM CAS 2018 • SCALING AGILE CONTINUES TO REMAIN A SIGNIFICANT CHALLENGE PER OUR PARTICIPANTS IN CHANGE AGENT SUMMIT 2018 (NCR) AND 2019 (BANGALORE). • MAJOR CHALLENGES AND REASONS BEHIND FAILURE: • CREATING A SHARED VISION • RE-ALIGNING THE ORGANIZATION • ESTABLISHING CONSISTENCY
  • 5. TYPES OF AGILE SCALING https://www.forbes.com/sites/stevedenning/2016/04/15/what-does-it-mean-to-scale-agile/#13f75ab078b9 Scaling Frameworks (SAFe, LeSS, DAD, etc.) ???
  • 6. SCALING “UP” VS. SCALING “OUT” Scale “Up” Scale “Out” Vertical Scaling Horizontal Scaling Across Product Across Organization Subset of Value Stream Entire Value Stream Cycle Time, Efficiency, Outputs Lead Time, Effectiveness, Outcomes Agile Fractals ??? My 2014 talk on Scaling Out Agility: https://www.slideshare.net/Managewell/scalingout-agility
  • 7. TRADITIONAL VS. AGILE SCALING Traditional Scaling Agile Scaling Strategy Top-down Bottom-up, sideways Role of leadership Assign, or Delegate Lead, and remove constraints Cadence Episodic planning Continuous process Transformation Big bang Pilot, Test, Learn, Waves Structure Functional silos Cross-functional autonomous teams Paradigm Process determines behavior Behavior determines process Goal setting Targets-based Evidence-based Scope Local optimization End-to-end enablement Interventions People, Process or Tech People, Process and Tech Decision-making Core Edge Approach Process-driven Culture-driven Levers Hierarchy and position Influence and relationship © Tathagat Varma
  • 8. ROLE OF LEADERSHIP • MISSION: “WHY”, NORTH STAR, PURPOSE, OBJECTIVE, … • VISION: “WHAT”, GOALS, ALIGNMENT, BOUNDARY CONDITIONS, … • MINDSET: RAPID, ITERATIVE, INCREMENTAL, FEEDBACK, CONTINUOUS LEARNING, TALENT, EXPERIMENTATION, ... • NETWORKS: NETWORK OF AUTONOMOUS TEAMS FIGURE OUT “HOW”, DEFINE THEIR AGILE PROCESS, CROSS-FUNCTIONAL, SELF- ORGANIZING, AUTONOMY, DYNAMIC RESOURCE MODEL, … • CULTURE: EMBRACE DIVERSITY, EQUALITY, TRUST, RESPECT, LEARNING, SHARING, CARING, … • ORGANIZATION: SYSTEM, STRUCTURE, GOVERNANCE, PROCESSES, PERFORMANCE STANDARDS, ETC.
  • 10. VISION: KEEPS PEOPLE FOCUSED “If Coca-Cola can sell billions of sodas and McDonald’s can sell billions of burgers, why can’t Aravind sell millions of sight-restoring operations, and, eventually the belief in human perfection? With sight, people could be freed from hunger, fear, and poverty. You could perfect the body, then perfect the mind and the soul, and raise people’s level of thinking and acting”. – Dr. G. Venkataswamy Vision: To eliminate needless blindness......
  • 13. CULTURE: THE SECRET SAUCE Source: Seeking Alpha Source: https://www.cnbc.com/2019/04/02/here-are-the-top-10-airlines-in-the-world-as-ranked-by-tripadvisor.html 4% voluntary turnover 44 consecutive years of profitability #1 lowest number of customer complaints 85% employees say they’re proud to work for Southwest No layoffs, no furloughs ever https://www.humansynergistics.com/blog/culture-university/details/culture-university/2018/05/29/southwest-airlines-reveals-5-culture-lessons
  • 14. ORGANIZATION: AN ECOSYSTEM https://www.mckinsey.com/business-functions/organization/our-insights/the-five-trademarks-of-agile-organizations Five Trademarks 1. Strategy: North Star embedded across the organization 2. Structure: Network of empowered teams 3. Process: Rapid decision and learning cycles 4. People: Dynamic people model that ignites passion 5. Technology: Next- generation enabling technology