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Creating Agile Organizations by Combining Design, Architecture and Agile Thinking

This is a talk I gave to the IASA follow-the-sun community. It deals with the combination of the design thinking, architecture thinking and agile thinking disciplines into a combined discipline needed to create the a responsive organisation.

Creating Agile Organizations by Combining Design, Architecture and Agile Thinking

  1. 1. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 1 Building Coherent Organizations Mixing Design, Architecture and Agile to Deliver more value IASA FOLLOW THE SUN PRESENTATION
  2. 2. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 2 Speaker Introduction The Name The Current Roles The Past RolesThe Mug Craig Martin Melbourne Australia
  3. 3. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 3 CHALLENGES: A HISTORY OF FAILURE An imperfect planning & execution cycle One-third of firms fail to achieve expected results from annual strategic plans. More than half of all business projects fail. Forty-six percent of business failures stem from misguided strategies. *Research: Corporate Executive Board • Insight, strategy and planning disciplines are often misaligned • Support functions are often misaligned • Planning and Execution disciplines are misaligned
  4. 4. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 4 CHALLENGES: BUSINESS ALIGNMENT The value creation engine of the business is often misaligned • Coherence produces greater returns; • There is inconsistency in the understanding of the value and how its created; • Misaligned planning and execution disciplines don't speak the same language; • Agile has exacerbated the challenge since the loss of coherency occurs at a faster pace;
  5. 5. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 5 CHALLENGES: CONTINUAL IMPROVEMENT Reducing errors and improving insight • Due to discipline incoherency, the feedback of results, to facilitate decision making, is also unreliable, disparate, and itself fragmented; • StratOps is needed to help reduce the delay in the feedback cycle; • This improves business performance and decision making by: − Increasing the number of coherent insights − Reducing errors that occur across silos
  6. 6. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 6 CHALLENGES: DISCIPLINE ALIGNMENT Misalignment across the business disciplines • Multiple roles support the business in pursuing its outcomes. • Each role produces and consumes business related information; • Each role uses its own set of disciplines, tools and techniques; • There is very little alignment between these disciplines, which often results in poorly aligned organizations and ultimately failed benefits realization.
  7. 7. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 7 CHALLENGES: DELIVERY ALIGNMENT Shifting the burden, and cost down the lifecycle • Inconsistent design of the business, results in a shifting the burden culture, where just enough work is done in the planning disciplines to be useful for strategic insight but not for delivery of outcomes into the development and operations layers; • The ”ownership” of fixing it is passed down the lifecycle, increasing cost as it moves downwards; • It is left to the technology disciplines to try and provide coherency at the technology level. • This costs 8x more in integration costs and up to 12x more in development fees;
  8. 8. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 8 Discipline Confusion CHALLENGES STRATEGIC PLAN MARKETING PLAN OPERATIONAL PLAN DELIVERY & EXECUTION OPERATIONS Planning Delivering Operating PORTFOLIO, PROGRAM AND PROJECT MANAGEMENT BUSINESS ARCHITECTURE ENTERPRISE ARCHITECTUREPRODUCT & SERVICE DESIGN BUSINESS PLANNING SOLUTIONS ARCHITECTURE SOLUTIONS DEVELOPMENT ENTERPRISE DESIGN BUSINESS ANALYSIS Environment analysis / SWOT, competitor / Business motivation / Product and portfolio analysis / Strategic Options Market analysis and forecasting Model the business / Evaluate and select strategy / Risk and funding analysis Project, portfolio and program management, solutions delivery Daily operations, run the business There is often confusion around which disciplines are used for what situations
  9. 9. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 9 Shifting Ages CHALLENGES Six Senses Design Story Symphony Empathy Play Meaning
  10. 10. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 10 Accelerating from mystery to algorithm HOW ARE PROBLEMS SOLVED? Unresolved Business Challenges Rules of thumb Robust, repeatable and replicable formulas & processes * From Roger Martin (2009) The Design of Business MYSTERY HEURISTIC ALGORITHM T h e K n o w l e d g e F u n n e l This is the lean start-up space This is the exploitation and industrialization space GOAL: Exploitation; Reliability Produce consistent, predictable outcomes A reliable system will produce the same test results every time GOAL: Exploration; Validity Produce outcomes that meet an objective A valid system will produce a result that is shown, through the passage of time, to be correct
  11. 11. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 11 THE KNOWLEDGE FUNNEL Non-core but complex - Outsource Innovation, chaos & unresolved mysteries HIGH HIGH LOW LOW Must be done but adds little value to product or services Very important to success, high value added to products and services STRATEGIC IMPORTANCE & VALUE COMPLEXITYANDDYNAMICS Complex negotiation, design, or decision process Many business rules; expertise involved Some business rules Procedure or simple algorithm Non -Core Capabilities Core Differentiating Capabilities Everyday, highly repeatable and automated Make repeatable and reliable to gain efficiency Core Competitive Capabilities Industrializing at speed HOW ARE PROBLEMS SOLVED? Source: Adapted from “Business Process Change” by Paul Harmon GOAL: Reliably produce consistent, predictable outcomes GOAL: Validity- Produce outcomes that meet desired objectives People Dominance Process Dominance Technology Dominance The Challenge is reducing the time it takes to move from the unresolved business challenges space to the repeatable formulas space.
  12. 12. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 12 Growing or Shrinking? HOW ARE PROBLEMS SOLVED? Non-core but complex - Outsource Innovation, chaos & unresolved mysteries HIGH HIGH LOW LOW Must be done but adds little value to product or services Very important to success, high value added to products and services STRATEGIC IMPORTANCE & VALUE COMPLEXITYANDDYNAMICS Complex negotiation, design, or decision process Many business rules; expertise involved Some business rules Procedure or simple algorithm Non -Core Competencies Core Differentiating Competencies Everyday, highly repeatable and automated Make repeatable and reliable to gain efficiency Core Competitive Competencies Non-core but complex - Outsource Innovation, chaos & unresolved mysteries HIGH HIGH LOW LOW Must be done but adds little value to product or services Very important to success, high value added to products and services STRATEGIC IMPORTANCE & VALUE COMPLEXITYANDDYNAMICS Complex negotiation, design, or decision process Many business rules; expertise involved Some business rules Procedure or simple algorithm Non -Core Competencies Core Differentiating Competencies Everyday, highly repeatable and automated Make repeatable and reliable to gain efficiency Core Competitive Competencies OPPORTUNITY OR THREAT? Democratisation of knowledge the commodity space is growing, making the differentiation space more competitive
  13. 13. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 13 Moving through the funnel across and problem and solution landscape HOW ARE PROBLEMS SOLVED? Unknowable: The relationship between cause and effect is impossible to determine as they constantly shift. In chaos, it is necessary to act first and then sense through the result of action how to further respond. Understanding the problem comes later. This is the domain of rapid response. Example: Natural disasters Unknown Problems: The problem is in constant flux as a change to the situation causes ripple effects and unpredictability in other aspects. Information is often incomplete. Rather than implementing a solution, devising a concept, testing, iterating and then responding is needed. Problems often become complex when human behavior is a significant factor. This is the domain of emergence. Example: Schooling experiences, organizational change management, traffic management Known unknowns: A complicated problem can have multiple right solutions. Complicated problems are understood, analyzed and then responded to. It often requires expertise to solve and is largely process driven. Solving a complicated problem often requires the right expertise along with the right tools. In this realm you may know you have a problem but may not be able to solve it alone. This is the domain of expertise. Example: Fixing a car, constructing an airplane. Known knowns A simple problem is one of cause and effect. The solution is rarely disputed. The problem can be categorized, understood and a response devised based on the information. This is the domain of best practice. Example: 1+1 = 2, solving a jigsaw puzzle. The Knowledge / Innovation funnel * ‘A Leader’s Framework for Decision Making’ David Snowden & Mary Boone
  14. 14. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 14 A Multi-Disciplinary Journey HOW ARE PROBLEMS SOLVED? * From Roger Martin (2009) The Design of Business MYSTERY HEURISTIC ALGORITHM T h e K n o w l e d g e F u n n e l Design Thinking Architecture Thinking Agile TM Thinking No single discipline can traverse the funnel, it is a multi-disciplinary journey. THEAGILEORGANIZATION
  15. 15. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 15 Utility (Foundation) Innovate Build Advantages Assemble Prolong Advantages Mix Reduce Disadvantages Find the super mixers HOW ARE PROBLEMS SOLVED? Mixing thinking becomes essential
  16. 16. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 16 Creating a Blend of Thinking. The origins of Design Thinking HOW ARE PROBLEMS SOLVED? Analytical Thinking Intuitive Thinking 100% Reliability 100% Validity Design Thinking From: ‘The Design of Business’, Roger Martin (2009)
  17. 17. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 17 Design Thinking Put the person in the center Architecture Thinking Put the business in the center Hybrid thinking focusses on a blended approach to the problem space HYBRID THINKING Agile Thinking Put delivery in the center Coherency (Hybrid thinking)
  18. 18. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 18 Business Planning Project Management Agile Delivery Design Thinking Human Centered Design Psychology and behavioral analysis Strategic Planning Business Design Business Model Innovation Hybrid thinking focusses on utilizing the strengths from multiple disciplines HYBRID THINKING Desirability What is valuable to people? Viability What can you sell? Feasibility What can you implement? Starts Here Starts Here Business Architecture Business Design Service Design Capability Design The three lenses must be aligned at a business model level, marketing mix level, products and service model level and operating model level
  19. 19. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 19 When is Design Thinking Appropriate? DESIGN VS ANALYTICAL METHODS
  20. 20. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 20 Start with Desirability: A Design Process : Double Diamond Extended Discover Define Understanding Solutioning 1 Planning & Preparation 2 Exploration & Understanding 4 Concept Generation & Early Prototyping 5 Evaluation Refinement & Production 6 Launch & Monitoring Synthesis & Design Implications 3 Develop DeliverPrepare Launch Point of View
  21. 21. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 21 Four Orders of Design Graphic Design Visual Design Communications Design Product Design Industrial Design Engineering Architecture Fashion Design Service Design UX Design Instructional Design Process Design System Design Business Design Organisational Design Culture Design Capability Design 4th systems 3rd interactions, experiences 2nd objects, artefacts 1st signs, symbols Low complexity High complexity *Richard Buchanan 1992: Wicked Problems and Design Thinking
  22. 22. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 22 Merging design with architecture and agile DESIGNING BUSINESSES OF THE FUTURE Read more here
  23. 23. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 23 Cycling through the Problem Synthesis Model HYBRID THINKING APPROACH Proved Concept Opportunity Evidence of the problem Insight Abstract Concrete Problem Solution Problem framing Researchand synthesis Ideation Prototyping This is the approach you would follow to identify the sweet spot within desirability, viability and feasibility
  24. 24. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 24 Iteration through the Synthesis Model HYBRID THINKING APPROACH DI Design Iterations (Across all Orders) Desirability Driven: Customer and human outcomes. SP Strategic Planning Iterations (Across all Orders) Viability Driven: Business and Market outcomes. BP Business Planning Iterations (Across all Orders) Feasibility Driven: Organization and financial outcomes. BA Business Architecture Iterations (Across all Orders) Coherency Driven: Capability and resource outcomes Hybrid thinkers merge the thinking from the various disciplines to create coherent outcomes
  25. 25. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 25 Proved Concept Opportunity Evidence of the problem Insight Problem Synthesis Model SIMPLE SECOND ORDER EXAMPLE Abstract Concrete Problem Solution ”I need a hole” Paint the wall “Drill a hole to hang a picture” “ I am embarrassed of my home when entertaining” Buy new furniture Hang the picture Move
  26. 26. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 26 Proved Concept Opportunity Evidence of the problem Insight Problem Synthesis Model COMPLICATED THIRD ORDER EXAMPLE Abstract Concrete Problem Solution Month End reporting timelines and decisions Penalties Develop EDW and BI capability 80% of the delay was in the executives “fixing” the numbers Focus on time not accuracy EIS Gamify Executive Leader board Frame problem around time not accuracy. Human centred approach as opposed data centred approach
  27. 27. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 27 Proved Concept Opportunity Evidence of the problem Insight Problem Synthesis Model COMPLEX FOURTH ORDER EXAMPLE Abstract Concrete Problem Solution ”The Crime rate is too high” Implement 1am lockout “Put more police on the streets” “5% of all violent crime, is alcohol fuelled and from pint glasses being used as weapons” Ban Alcohol in high crime areas Reduce injuries from using glass as a weapon The ultimate pint Glass
  28. 28. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 28 Using Hybrid Thinking to Develop Services SUPER MIXERS FOR SERVICE DESIGN C O S T V A L U E 5% 15% 80% LEADING PRACTICE RESEARCH, 2011/2012 THE ENVIRONMENT BUSINESS MODEL Markets Industries Customers Market Segment Channels Customer Relationships Value Proposition Offering: Services/Products Processes/ Value Chains Capabilities Business Service Functions Data Applications Technology MARKET MODEL OPERATING MODEL PRODUCTS & SERVICES MODEL Person Centred HCD
  29. 29. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 29 Aligning Service and Experience Design with the Business Model SERVICE DESIGN OUTCOMES Value System BUSINESS MODEL Markets Industries Customers Market Segment Channels Customer Relationships Value Proposition Offering: Services/Products Processes/ Value Chains Capabilities Business Service Functions Data Applications Technology MARKET MODEL OPERATING MODEL PRODUCTS & SERVICES MODEL CAPABILITY TECHNOLOGY BUSINESS VALUE VALUABLE MEANING PROCESSEMPLOYEES INFORMATION APPLICATIONS DATA TECHNOLOGY CUSTOMER PERFORMANCE EXPERIENCE PROBLEMS PAINS / GAINS SERVICE/S VALUES - Duration - Breadth - Interaction - Intensity - Triggers - Significance PRICE to EXCHANGE PLACE to EVERYPLACE PROMOTION to EVANGELISM PRODUCT/S Human Centred Combining business design with experience design, service design and capability modelling
  30. 30. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 30 Designing for Growth THE DESIGNCHAIN APPROACH ü DESIREABLE FOR CUSTOMERS ü FINANCIALLY VIABILE FOR THE BUSINESS ü FEASIBLE TO DELIVER Business Model Innovation “What's possible?” Business Strategy “What will we do?” Operating Response “What's the Blueprint to for the fastest delivery with the least amount of effort?” Business Model “What does it look like” Understanding value “What value can we create for our customers and capture for our business?” Creating growth through innovative business models Testing viability of business models against the industry patterns and your own organization Understanding the right levers to pull to create and capture value Building and planning the engine of delivery
  31. 31. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 31 10:20:70 Principle DESIGNCHAIN SERVICE OFFERING: TRAINING Design in Business Course (Using design thinking to complement the other disciplines of analysis, architecture and planning, to help them be more human centred in their approach) Business By Design Course (Blending design thinking with architecture and agile thinking to support disruption and business model innovation situations.) *Richard Buchanan www.designchain.co Designing with AgileTM (Using design thinking to be more human centred in thinking and approach. Blended with AgileTM to be more efficient and delivery centred) DesignChain follows a blended approach to training with clients. We support the 10:20:70 approach to building capability and improving learning outcomes
  32. 32. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 32 Decide, adapt and grow faster INSIGHT What we do: We provide insight into customers, disruptive and emerging trends, and how they might affect your customers and your organization. How we do it: We use human centered design and market analysis tools to surface new insights and growth opportunities. Outcome: You will have greater insight into hidden opportunity areas. You will have identified, and tested, growth and improvement areas. You and your organization will become smarter. You will be able to determine whether or not change is needed. DESIGN What we do: We help you determine the most appropriate responses to change. We show you how best to mix your business resources to deliver the right value to your customers and your shareholders. How we do it: We play out disruptive, strategic, tactical and operational prototypes across your business landscape, and test them against the right outcomes Outcome: You will choose the strategic option that is best for your customer and organization, and reduce failure from misguided strategies. DELIVERY What we do: We help more of your projects succeed and deliver tangible business outcomes. How we do it: We do this by closing the gap between planning and results, and results and corrective action. Outcome: This means that designed and planned results are more likely to be achieved, and the organization can make corrective changes sooner rather than later, preventing cost overruns and costly repeat decisions. CHANGE What we do: We help you and your customers adapt to change more effectively. How we do it: We influence the habits of your customers and staff through advanced behavioural methods and technologies. Outcome: Improved employee engagement. Increased customer advocacy & lifetime value. Reduced cost- to-serve. What we do DESIGNCHAIN
  33. 33. HYBRID THINKING – AN INTRODUCTION | VERSION 1 - IASA 33 Q&A

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