Morphing is a special effect in motion pictures and animations that changes one image or shape into another, through a seamless transition. That's a great metaphor to represent how companies should reinvent themselves continuously, to serve its customers and run after their ever changing needs. That state is today called "Business Agility". Companies achieving that state, report increased revenues, better capacity to turnaround, higher quality offerings, improved relationships with clients and higher employees engagement. Statistics say that they possess three fundamental aspects: Lean-Agile Funding Models, organizational structures re-arranged around value streams, revisited processes to sustain relentless improvement. In this talk we'll see what kind of changes are needed to companies' operating models to develop those key aspects and how Agile can be thought as the best methodological and cultural platform to speed-up that change. We will understand what is necessary to let our organizations to finally being able to morph continually to achieve Business Agility.

1. Copyright © 2020 Accenture All rights reserved.
MORPHING CONTINUALLY
TO ACHIEVE BUSINESS AGILITY
Emiliano Soldi
Enterprise Transformation Lead - Agile & DevOps
ITALY, CENTRAL EUROPE, GREECE
2020SEPTEMBER 11TH
@AgileTriathlete
#BusinessAgilityMorphing
#ABD20

2. Morphing is a special effect in motion
pictures and animations that changes,
or morphs, one image or shape into
another through a seamless transition
Wikipedia

3. Copyright © 2019 Accenture All rights reserved.
TO THRIVE, COMPANIES NEED TO CONTINUOUSLY
EVOLVE, BY REALIZING AND SUSTAINING THEIR FULL
POTENTIAL IN TERMS OF PROFITS AND PEOPLE
NO MATTER HOW THE ENVIRONMENT CHANGES
MORPHING CONTINUALLY FROM ONE STATE
TO ANOTHER AND AGAIN TO THE NEXT ONE,
IS THE IMPERATIVE…

4. ...BY SENSING THE CONTEXT AND QUICKLY REACTING TO SUDDEN
DISRUPTION, BY REMODELING THEIR OPERATING MODELS,
TECHNOLOGIES, SKILLS AND COMPETENCES

5. Copyright © 2019 Accenture All rights reserved.
THIS CAPABILITY CAN BE DEFINED
BUSINESS AGILITY

6. Most organizations rate their
current business agility maturity
relatively low, albeit they have
enthusiasm and hope for the future
of companies have
low business agility fluency
of respondents have been on the
journey for less than three years
79%
69%
https://businessagility.institute/learn/2019-business-agility-report-raising-the-bar/# 6

7. Business
Agility
around the
World
EMEA Region is a laggard
in terms of maturity
https://businessagility.institute/learn/2019-business-agility-report-raising-the-bar/#
And this actually means that there’s
lots of work that needs to be done
7

8. Significant and encouraging benefits for
organizations, in adopting business agility,
has been confirmed:
Increased revenue, market share
and brand recognition
Faster turnaround times,
higher quality offerings
Improved relationships
with customers
Greater transparency,
higher employee engagement
https://businessagility.institute/learn/2019-business-agility-report-raising-the-bar/# 8

9. BAI Report discovered
three Key Predictors of a successful
journey towards Business Agility
Agile-Lean Budgeting
Value Stream Organization
Learning Culture
9

10. 1. Agile-Lean Budgeting
By funding business outcomes,
rather than work outputs,
adaptive funding models and
associated governance processes,
allow organizations to quickly invest
in new products or services,
as soon as market opportunities arise
Or, just as quickly, stopping
or changing work that isn't delivering
the expected business value
10

11. The traditional funding approach
locks in SCOPE, TIMEFRAME, and BUDGET,
in the hope of creating
predictable business outcomes…

12. …unfortunately,
business outcomes
are seldom predictable

13. Worse still, the desired level of
achievement of business outcomes,
is rarely reached even if most
of the requirements were delivered

14. Turn Around
Shifting the focus
from Fixed Scope to
Business Outcomes
is the key
14

15. Ok,but…
Where do we start
from?

16. A Business Outcome is a specific,
measurable target action that is taken
in response to a business direction
It is expressed as a change occurring
with a specific time frame
A Business Outcome needs to be
assessed and measured, indicating
the extent of improvement
or target level of performance
and specific KPIs are identified
e.g. Exact percentages or numbers of increased
retention rates, improved acquisition rates, increased
revenue respect to specific products/services, reduced
costs in processing specific items, etc.
1. Define
Quantifiable
Business Outcome
16

17. 2. Define draft
Business Features
to achieve Outcome
High-level define
what Business Features
could be necessary to be developed
to reach the Business Outcome
These business requirements are
not locked-in but primarily used
as functional placeholders
17

18. 3. Define Team
composition
Calculate cost
According to the very nature of the
product or service to be developed,
necessary competences, skills and
number of people are identified
Daily rates for each professional profile
are used to calculate a cost per sprint per
team members and then summed up to
calculate Team Cost per Sprint
18

19. 4. Estimate
Business Features
High Level
Business Features are then
high-level estimated
They are treated as functional reference
points to achieve the business outcome
and as economical buckets or indicators
for budgeting purpose
During the building phase,
requirements will evolve and change
as far as they continue to target
the afore decided business outcome
To monetize Value, Time and Cost,
Cost of Delay and Weighted Shortest
Job First can be used
https://blackswanfarming.com/cost-of-delay/
https://blackswanfarming.com/safe-and-weighted-shortest-job-first-wsjf/
19

20. 5. Perform final
Budget and Time
Calculation
Crossing the estimates
of the Business Features
and the Team Cost per Sprint,
Time and Budget are calculated
20

21. Cool, but we knew that
already…
How we keep it flexible
while operationalizing
all this?

22. BUILD
DEPLOY
MEASURE
ADJUST
Q1 Q2 Q3 Q4
FISCAL YEAR
Following short and frequent cycles of
value creation, delivery, measurement
results and scope adjustment
Then, reviewing
level of achievement
and related budget,
every quarter
REVIEW
BUILD
DEPLOY
MEASURE
ADJUST
APPLYING AN OVERARCHING FRAMEWORK FOR PURSUING
BUSINESS OUTCOMES, WHILE REMAINING ADAPTIVE
22

23. Adjust the Business Requirements to better target
business outcome, respecting budget guardrails
Measure results of the latest product
increment through defined KPIs
Review level of achievement of business outcome
every quarter, then Pivot, Persevere or Kill
Deploy incrementally in production,
in short cadences
Build the features within iterations
✓ FLEX THE
SCOPE TO
ACHIEVE THE
BUSINESS
OUTCOME
WITHIN
BUDGET
GUARDRAILS
✓ REVIEW THE
BUDGET EVERY
QUARTER
✓ PIVOT,
PERSEVERE OR
KILL THE
INITIATIVES
ACCORIDNG TO
RESULTS
without this, everything else implodes
This is the first level of flexibility
This is the second level of flexibility
23

24. 2. Value Stream Organization
By designing flexible work processes that
are both efficient and customer-centric,
value streams allow organizations to
tightly integrate teams from across the
organization in service of maximizing
value creation for the customer
24

25. A Value Stream is the set
of the necessary steps from
the start of value creation until
its delivery to a specific set
of customers or group of them
VALUE STREAMS
It comprises also all the
resources and people
necessary, regardless of their
functional belonging, which
are end-to-end responsible for
Value Delivery
A Value Stream is autonomous
in how it decides to spend the
budget to reach the business
outcome
25

26. Value
Identify what value
you need to deliver
to a specific group of
customers
Steps
Backwards identify
what value creation
steps are necessary
Waste
Verify that every step
brings real value for
the customer and
eliminate any
unnecessary handoff
People &
Resources
Identify what people
and resources are
necessary to realize
value
Value
Stream
Mission
Define value stream
mission and related
KPIs
Teams
Arrange people in
cross functional
teams with specific
missions
IDENTIFY THE VALUE STREAM
✓ Trigger a Request from a Client
✓ Then, Inspect & Adapt
✓ See what happens
✓ Build the Value Stream
26

27. ORGANIZING COMPANY AROUND VALUE BRINGS SEVERAL BENEFITS
Fewer hand-offs
Faster delivery of value
Quality increasing
Closer alignment between
business and delivery teams
Whole system is optimized
not single components
27

28. 3. Learning Organization
By encouraging a culture of learning and experimentation to thrive,
organizations will continuously improve both what they do and (more
importantly) how they do it, thus reducing costs, improving efficiency, and
delivering greater value to customers
A learning organization is a dynamical system always in a state
of continuous adaptation and improvement
Learning organizations build feedback loops designed to
maximize the effectiveness of their learning processes
“
Peter Senge
Isn’t this a great alternative definition
of Business Agility Morphing?
28

29. 1. Personal mastery is a discipline of continually
clarifying and deepening our personal vision, of
focusing our energies, of developing patience, and
of seeing reality objectively
2. Mental models are deeply ingrained assumptions,
generalizations, or even pictures of images that
influence how we understand the world and how we
take action
3. Building shared vision - a practice of unearthing
shared pictures of the future that foster genuine
commitment and enrollment rather than compliance
4. Team learning starts with 'dialogue', the capacity of
members of a team to suspend assumptions and
enter into genuine 'thinking together'
5. Systems thinking - The Fifth Discipline that integrates
the other four
The Five Disciplines
29

30. No excuses, it’s your turn
Get back to your organization and push
the buttons to start the morphing process
Agile-Lean Budgeting
Value Stream Organization
Learning Culture
30

31. THANK YOU!
@AgileTriathlete
Emiliano Soldi
Enterprise Transformation Lead - Agile & DevOps
ITALY, CENTRAL EUROPE, GREECE
https://www.linkedin.com/in/emilianosoldi/

32. BUSINESS AGILITY TRANSFORMATION
SOLUTIONS
BUSINESS AGILITY
AGILE TEAMS
& SCALING
LEAN SOFTWARE
ENGINEERING
TRANSFORMATION
ARCHITECTURE
LEADERSHIP
IN AGILEORGS
ORG STRATEGY
& FUNCTION
INSPIRING
INNOVATION
THE CAPABILITIES OF
BUSINESS
AGILITY
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