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How to succeed with cross functional teams, Marko Taipale, Solita 21.4.2020

How to create succeeding cross-functional teams and learning how to lead them is in the heart of doing successful business development.

Agile and lean ways of working are the key to this, but the true value comes from knowing how to use them in your own organisation’s context.

Usually existing organisations do not have structures ready to support this kind way of working and changes need to be made not only on the operational level, but also on the level of leadership and management.

Read through the presentation and watch the webinar recording hosted by Solita’s Principal Consultant Marko Taipale to learn how to tackle these complex problems in our daily work:

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How to succeed with cross functional teams, Marko Taipale, Solita 21.4.2020

  1. 1. How to succeed with cross-functional teams Marko Taipale
  2. 2. Marko
  3. 3. Topics Why cross-functional teams How to create the teams How to lead the teams Agile & Lean in organisational context Structural changes Summary
  4. 4. Poll: Your current situation
  5. 5. Why cross-functional teams
  6. 6. Wicked “VUCA” problems V = Volatility: the nature and dynamics of change, and the nature and speed of change forces and change catalysts. U = Uncertainty: the lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events. C = Complexity: the multiplex of forces, the confounding of issues, no cause-and-effect chain and confusion that surrounds organization. A = Ambiguity: the haziness of reality, the potential for misreads, and the mixed meanings of conditions; cause-and-effect confusion.
  7. 7. VUCA for Energy & Retail Energy Need to react fast-paced market changes end-to-end Environment & sustainability New players trying to enter and disrupt the value chain Retail People shifting their behavior to online (especially food now..) Environment and sustainability Global players trying to take their share from each local market
  8. 8. Best solutions are emerging from teams “The best architectures, requirements, and designs emerge from self-organizing teams.” - Agile Manifesto 2003
  9. 9. Wastes of software development 1. Defects: Building the wrong thing or right thing with high defect ratio / need for rework 2. Transport: Moving work from one silo to another 3. Over processing: over analysing, over designing, over architecting, overlapping processes 4. Inventory: requirements not been worked on, designs not developed, features developed but not deployed 5. Waiting: work sitting in a queue waiting to be worked on 6. Motion: individuals task-switching, working on multiple projects at the same time 7. Over production: gold plating, large batches, big bang releases
  10. 10. Communication The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. Business people and developers must work together daily throughout the project.
  11. 11. Story of an organization
  12. 12. Story of an organisation realizing this (2005).. Development 6m -> 2m “Our development is too slow…”
  13. 13. Story of an organisation realizing this.. Development Deployment 12 6m 3w2m
  14. 14. Story of an organisation realizing this.. Development DeploymentDesign 1215 6m6m 3w2m1m
  15. 15. Story of an organisation realizing this.. Development DeploymentDesign Resourcing Customer approval Internal approval 12 8 15 6m6m 6m1m 2h 3w2m1m 1d2h 4m 24m
  16. 16. Fixing it Design, development and deployment Customer approval Internal approval 10 1m 2h 3m 2h 3m 4m 10x cross-functional teams Limiting the work-in-process in portfolio
  17. 17. How to create cross-functional teams
  18. 18. Feeding the team
  19. 19. Poll: Mission
  20. 20. How cross-functional you want to be Viability Feasibility Desirability Design TechnologyBusiness
  21. 21. How cross-functional you want to be Testing / Q&ADevelopmentDesign Data Deployment / OpsBusinessCustomer
  22. 22. Examples
  23. 23. Feature/Solution teams Testing / Q&ADevelopmentDesign Data Deployment / OpsBusinessCustomer Pros: ● You can give solution -level items to the teams ● Teams capable of taking solutions to the market (DevOps) Cons: ● Often the upstream comes the bottleneck ● Synchronizing design and development into same development cycle is tricky
  24. 24. Problem-Solution teams Testing / Q&ADevelopmentDesign Data Deployment / OpsBusinessCustomer Pros: ● all the benefits of Feature teams ● possibility to create design/development cycles that are not too much coupled Cons: ● Hard choice: who are in the “Problem” team ● Hard to balance if you have multi-team setup
  25. 25. Value-stream teams Testing / Q&ADevelopmentDesign Data Deployment / OpsBusinessCustomer Testing / Q&ADevelopmentDesign Data Deployment / OpsBusinessCustomer Pros: ● You have from customer to customer teams, possibility to give high level mission & items Cons: ● Mapping the value stream might be hard exercise ● In practice you need to split these i.e. Problem-Solution teams
  26. 26. Co-Creation teams Testing / Q&ADevelopmentDesign Data Deployment / OpsBusinessCustomer Pros: ● Very deep understanding of the customer ● Business gets lots of support instead of typical “Single product owner” problems Cons: ● Needs eventually the handover to development ● Organisation friction to take tech people away from architecting / development
  27. 27. Design & Development teams with collaboration model Testing / Q&ADevelopmentDesign Data Deployment / OpsBusinessCustomer Pros: ● Design cycle is decoupled from development cycle ● Business gets lots of support instead of typical “Single product owner” problems Cons: ● How to involve the customer ● One design teams with multiple development teams needs coordination
  28. 28. Collaboration models for Design & Development Discovery Delivery Discovery Delivery Discovery Delivery Design Development Discovery Delivery Discovery DeliveryOne team approach #1 Discovery Delivery Discovery Delivery Discovery Delivery One team approach #2
  29. 29. Forming the teams
  30. 30. Patterns for forming Prepare team draft, let the team members have ½ day to switch. Nominate “centers” for each team, and let them collect the team for the mission. Beware “team golden / team rust”. Let the teams emerge. Give boundaries for the team setup and let them form (this is how we formed 40+ teams across 6 countries). Example of a boundaries: team size, location, mission / goal. Control Autonomy
  31. 31. From Forming to Performing Tuckman, Group development stages. Photo: Luigi Mengato, Tuckman, CC BY-SA 2.0. Katzenbach, J. R. and Smith, D.K. (1993), The Wisdom of Teams
  32. 32. 5 considerations for achieving human connections remotely 1. Have agendaless standups / longer “working sessions” 2. Do check-in and check-out in your meetings 3. Insist that attendees turn on their video feed 4. Opt for over-communication 5. Up the number of 1:1s / pairing you have For remote workshops: Design Sprints:
  33. 33. How to lead cross-functional teams
  34. 34. Motivation, trust and self-organisation “Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.” - Agile Manifesto, 2003
  35. 35. What happens if you just let it self-organize? Self-organizing team Self-organizing team with a goal Manage the boundaries of the teams in such a way that they amplify the wanted behaviours and dampen the unwanted behaviours.
  36. 36. Short time duration from experiments to results Driven by executing teams Focus on Z. CONNECTING INDICATORS LEADING INDICATORS LAGGING INDICATORS Driven by strategy Focus on X. Driven by unit / product / market Focus on Y. Strategic KPIs - viability • NPS • GM • CLV/LTV • Retention/Churn Experience KPIs – desirability • Customer feedback • Customer commitment • Customer effort score Operational KPIs - feasibility • # of customers • # of referred customers • € cost per acquisition • € revenue (ARPU) • Customer satisfaction Long time duration from setting the strategy to measuring impact on strategic KPIs Medium time duration from operative business decisions to operative KPIs. Set up a KPI Architecture to align the direction WEEKLY MONTHLY QUARTERLY
  37. 37. Empowerment & expectations Clarify the level of empowerment with Delegation poker: Consider giving higher level of mission to the team (what enables you to give them +1 level higher?) Workshop format:
  38. 38. Agile & Lean in organisational context
  39. 39. Lean summary 3 organizational choices: 1) Flow efficiency over Resource efficiency 2) Leading the whole instead of islands 3) Proactive learning over reactive learning
  40. 40. Agile summary Check your values & principles (yes, check the link in the bottom of the page): Too many organizations have just teams of coders doing sprints without any interaction to customers or having any control over getting their code to hands of the customers. That has nothing to do with agile. Please make sure you have fast feedback cycle from end-to-end.
  41. 41. In practice… No one-size fits all, but these three questions might help you to focus on the right thing: 1. How do you measure the impact of what you do? 2. Do you know how long it takes to take an idea to market in your organization, what is the greatest bottleneck? 3. If you would setup the cross-functional teams, what would need to change in your management practices and organizational design?
  42. 42. Structural changes
  43. 43. “But... … we have one business person for all the teams, how on earth we can manage?” … we allocate individuals and track their hours per project, what we need to change?” … we cannot involve customers all the time, that is not pragmatic?!” … we have one <name your expertise here> for all the teams, how can we share that for multiple teams?”
  44. 44. Managing many cross-functional teams Team PO Chief PO Product owner group “Chapter”, developing & sharing competence (* For more about so called “spotify model”:
  45. 45. About projects and individual allocation If your outcomes are more valuable than your individual working hours then optimising flow efficiency first makes sense. 1. Visualize your workflow 2. Limit the “work in process” (you can do this as part of step 3..) 3. Manage the flow -> this leads you to move to better place
  46. 46. Poll: Commitment
  47. 47. Summary
  48. 48. Takeaways There are multiple ways to set-up cross-functional teams. Form follows function. Teams need an environment to perform. Leaders job is to create such an environment. There are proven patterns to setup and make structural changes. Use & abuse.
  49. 49. Please leave your feedback Any questions that were not addressed will be addressed via email.
  50. 50. Contact Marko Taipale +358 40 578 6447