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Getting Fancy:
Creating A Partnership
With Your CEO For
The Digital Era
10/7/19
Jeffrey Hammond
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…
3
3© 2018 Forrester Research, Inc. Reproduction Prohibited
Former CEO – national restaurant chain
"We struggled to understand the
importance of technology strategy to
our brand."
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© 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.
6
6© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Expand Your Transformation Efforts Outside IT
Software
Product
ManagerEngineering
Manager
CTO
Architect Developer
7
7© 2018 FORRESTER. REPRODUCTION PROHIBITED.
A Model For Engagement
Source: “CEOs: Foster The Software Teams And Talents Your Firm Needs” Forrester report.
8
8© 2018 FORRESTER. REPRODUCTION PROHIBITED.
What Do We Measure?
http://gravasco.blogspot.com/2017/01/3rd-sunday-ordinary-the-streetlight.html
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:
10
10© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Embrace Measuring Value As Well As Quality/Progess/Efficiency
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:
12
12© 2018 FORRESTER. REPRODUCTION PROHIBITED.
https://thenewstack.io/spotify-learned-flop-app-store/
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
14
14© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Put Another Way
http://bonkersworld.net/organizational-charts
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© 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.
17
17© 2018 Forrester Research, Inc. Reproduction Prohibited
How Amazon Got To Two Releases A Second
https://www.youtube.com/watch?v=esEFaY0FDKc
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:
19
19© 2018 FORRESTER. REPRODUCTION PROHIBITED.
How To Adopt An Agile Financial Approach
https://www.forrester.com/report/Digital+Business+Requires+Agile+Financial+Planning/-/E-RES111121
20
20© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Agile Budgeting Processes: Plan, Budget, Deliver
https://www.forrester.com/report/Digital+Business+Requires+Agile+Financial+Planning/-/E-RES111121
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© 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
Thank You.
Jeffrey Hammond
Vice President & Principal Analyst
@jhammond
jhammond@forrester.com

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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…
  • 3. 3 3© 2018 Forrester Research, Inc. Reproduction Prohibited Former CEO – national restaurant chain "We struggled to understand the importance of technology strategy to our brand."
  • 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.
  • 6. 6 6© 2018 FORRESTER. REPRODUCTION PROHIBITED. Expand Your Transformation Efforts Outside IT Software Product ManagerEngineering Manager CTO Architect Developer
  • 7. 7 7© 2018 FORRESTER. REPRODUCTION PROHIBITED. A Model For Engagement Source: “CEOs: Foster The Software Teams And Talents Your Firm Needs” Forrester report.
  • 8. 8 8© 2018 FORRESTER. REPRODUCTION PROHIBITED. What Do We Measure? http://gravasco.blogspot.com/2017/01/3rd-sunday-ordinary-the-streetlight.html
  • 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:
  • 10. 10 10© 2018 FORRESTER. REPRODUCTION PROHIBITED. Embrace Measuring Value As Well As Quality/Progess/Efficiency
  • 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:
  • 12. 12 12© 2018 FORRESTER. REPRODUCTION PROHIBITED. https://thenewstack.io/spotify-learned-flop-app-store/
  • 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
  • 14. 14 14© 2018 FORRESTER. REPRODUCTION PROHIBITED. Put Another Way http://bonkersworld.net/organizational-charts
  • 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.
  • 17. 17 17© 2018 Forrester Research, Inc. Reproduction Prohibited How Amazon Got To Two Releases A Second https://www.youtube.com/watch?v=esEFaY0FDKc
  • 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:
  • 19. 19 19© 2018 FORRESTER. REPRODUCTION PROHIBITED. How To Adopt An Agile Financial Approach https://www.forrester.com/report/Digital+Business+Requires+Agile+Financial+Planning/-/E-RES111121
  • 20. 20 20© 2018 FORRESTER. REPRODUCTION PROHIBITED. Agile Budgeting Processes: Plan, Budget, Deliver https://www.forrester.com/report/Digital+Business+Requires+Agile+Financial+Planning/-/E-RES111121
  • 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