Getting Fancy: Creating A Partnership With Your CEO for the Digital Era

1. Getting Fancy: Creating A Partnership With Your CEO For The Digital Era 10/7/19 Jeffrey Hammond

2. 2 2© 2018 Forrester Research, Inc. Reproduction Prohibited 1 Forrester Data Global Business Technographics Business And Technology Services Survey, 2017 2 McKinsey & Company, February 2017 (https://www.mckinsey.com/business-functions/organization/our-insights/the-people-power-of-transformations?cid=other-eml-alt-mip-mck-oth-1702) …but only 34% of CEOs reported a successful transformation2 72% of firms are undergoing digital transformation or investigating one1…

4. 4 4© 2018 Forrester Research, Inc. Reproduction Prohibited CEO of a professional services firm "Getting my software leader to understand how to set priorities and flow for the business is pretty darn hard.”

5. 5 5© 2018 FORRESTER. REPRODUCTION PROHIBITED. CEOs control half the barriers to software progress 1. New trends to speed app delivery with quality? 2. How measure progress and improvement? 3. How prepare for AI/Cognitive and IoT? 4. How build the right software faster and meet customer expectations? 5. What is my career path from AD&D leader? 1. How best collaborate/partner with business stakeholders? 2. How overcome cultural barriers to Agile within enterprise? 3. Which new skills should we acquire? Develop? 4. Are we measuring the right things to drive the right actions? 5. How communicate value of projects with nonobvious business benefits? Controlled by CIO, AD&D Controlled by CEO (and C-suite) Source: “CEOs: Foster The Software Teams And Talents Your Firm Needs” Forrester report.

9. 9 9© 2018 FORRESTER. REPRODUCTION PROHIBITED. Shared ownership of business goals & priorities • Set clear, concrete goals for the business • Communicate how the business must change • Declare what operational improvements are needed • Accept shared ownership of business priorities • Deliver software that executes on business priorities • Make adjustments as teams learn how to work together Push Executives To: Software Leadership Commits To:

11. 11 11© 2018 FORRESTER. REPRODUCTION PROHIBITED. Embrace the “Leap of Faith” • Embrace “learning” as a consequence of “innovation” • Drive innovation out of the lab • Take the “leap of faith” • Keep the lights on • Maintain the technology landscape • Deliver new apps as promised (Justify the “leap of faith”) • Reduce the span of the leap executives must take Push Executives To: Software Leadership Commits To:

13. 13 13© 2018 Forrester Research, Inc. Reproduction Prohibited Organizations which design systems ... are constrained to produce designs which are copies of the communication structures of these organizations. Melvin Conway, 1967 Conway’s Law

15. 15 15© 2018 FORRESTER. REPRODUCTION PROHIBITED. Embrace the spirit of “Agile” and “Dev-ops” • Create, and support cross- functional teams • Prioritize collaboration around products and customer experiences • Engage in “Silo-busting” • Embracing product/service centric teams • Internalizing the Agile manifesto • Allowing enough “slack time” to support schedule flex Push Executives To: Software Leadership Commits To:

16. 16 16© 2018 FORRESTER. REPRODUCTION PROHIBITED. CEO Silo Busting – Amazon Style Source: Rip Rowan on Google Plus [Jeff Bezos] issued a mandate that was so out there, so huge and eye-bulgingly ponderous, that it made all of his other mandates look like unsolicited peer bonuses. … “1) All teams will henceforth expose their data and functionality through service interfaces.” … Like anything else big and important in life, Accessibility has an evil twin who, jilted by the unbalanced affection displayed by their parents in their youth, has grown into an equally powerful Arch-Nemesis (yes, there's more than one nemesis to accessibility) named Security. And boy howdy are the two ever at odds. But I'll argue that Accessibility is actually more important than Security because dialing Accessibility to zero means you have no product at all, whereas dialing Security to zero can still get you a reasonably successful product such as the Playstation Network.

18. 18 18© 2018 FORRESTER. REPRODUCTION PROHIBITED. Make rapid, data-driven save/kill decisions • Embrace Agile funding (CFO) • Team-based budgeting • Regular re-evaluation of progress and learning • Adopt business value metrics • Be willing to advocate “killing the job” • Embrace a portfolio investing model Push Executives To: Software Leadership Commits To:

21. 21 21© 2018 FORRESTER. REPRODUCTION PROHIBITED. Adopt Intra-Year Planning For Road-maps, Portfolios and Budgets https://www.forrester.com/report/Digital+Business+Requires+Agile+Financial+Planning/-/E-RES111121

22. 22 22© 2018 FORRESTER. REPRODUCTION PROHIBITED. Bringing It All Together › Understand the ”Leap of faith” – justify and reduce its span › Be ready to educate and scale beyond IT and development › Embrace business value and work hard to measure it › Embrace technically astute executives, even board members › Understand software industry models and borrow from them as needed

23. 23 Thank You. Jeffrey Hammond Vice President & Principal Analyst @jhammond jhammond@forrester.com