 I'm happy to be here, it's rather late in the day, you can't be assigned a graveyard session. My job is to wake you up, but who's already awake? I will be talking about several things. One is the operational agility, which is kind of agile as most of us talk to me about here today. I'll be also talking about what I call strategic agility, I'll show you why this is actually pretty important. How do you implement it? I'd like to begin with a warning, that what you're about to hear is going to be different. This is not the way people say organizations are run. It's not what you were taught in business school, it's not what some of the presentations have been about today, and it may be disturbing, because it may challenge some of the beliefs, some of the deep beliefs in the agile community. And if it's too much stress, take a deep breath, but it will be different. The thing is, when I wrote my 2010 book, I thought this agile stuff is really amazing, because it resolves the conundrum that in general management and struggling with for the last century, how do you get continuous innovation with this system executed? This was the solution to this fundamental problem, and I thought to myself, this is amazing. Most people in general management don't know about it, but when they do know about it, it will take over the world. 2020, I surmised by 2020, agile would be dominating the world. It was pretty enthusiastic. Yay, this is great. We like what we, yeah, but when I presented this kind of stuff in the general management world, it looked like the dracar farm of Harvard Business School. I got a very different kind of reaction, because this is really way overblown. Agile may work in software, but it's not really going to learn in the non-management of the people in the basement with blue hair and tattoos. These are not management, these are the worst managed people in the whole organization. They're going to teach you that management in no way. It may work in small firms, small projects, but it doesn't scale. If you want to have a serious organization and a big farm, it's always going to come down from there. Several millennia have showed us the Exxon. They're always going to be run in big iraq, and they will need big systems and processes. Even CEO of IBM said serious farms don't have names like these. So I roll back into my corner and we'll see. Fast forward to 2018 and what we see. We actually see that Agile is feeding the world. Agile is feeding the world. Five largest firms on the planet are not the big lumbering 20th century dinosaurs. They are now firms that are Agile. Amazon, Apple, Facebook, Google, Microsoft. The five biggest firm in the market, Capitalization. The whole wide world. What was the possibility of the garage almost in 2010 has become reality. And why are these firms the largest on the planet? Well, they are continuously innovating. Instant frictionless, intimate value at scale. Instant frictionless. Trust generates pressure beyond the green labs. These firms are richer than anything. Other news? Just an issue of a business review, which is kind of the Vatican of management. The latest issue has three leading articles on Agile. A sign that Agile is now part of the mainstream of the business of the world. And they have this statement that almost 80% global executives rate Agile performance. And it's a high organizational firm that wants the Agile. And we also have reliable knowledge now of how to be Agile. Like my book, that's okay because lots of other books explain how to do it. So to summarize, most firms want to be Agile. We know how to be Agile. And the biggest firms already are Agile. So I won my bet. We live in the age of Agile, two years ahead of schedule. At the same time, not all as well. Although we have made these huge strides, huge progress, not all business review is said from one for the Agile, 80%. One to be Agile, but talking with one of the founders of the movement, Jeff Sullivan, last week, his estimate is that less than 20% of the firms, let's say they are already Agile, less than 20% of those are implementing the basics of Agile. So there's a lot of loose talk on what is actually going on. And there are a lot of false profits. Things that people ought to know that have taken like this. Agile is about twice the work in half the time. Agile is about going faster. Those propositions are fundamentally false. It is about not twice the work in half the time. It's twice the value from half the work. Very, very quickly. It's not about going faster. It's about delivering value faster, just very quickly. And a lot of promising Agile initiatives are closed down by management. We did some of them in the Agile Alliance webinars. General Electric has some great examples just the last few months. They've been a massive effort to start up. We also see that the language of Agile is quite chaotic. These things like this. And when general managers see this image, or encounter this language, they throw up their hands. They look for new people to get serious, for new people have to act together. I will not say that it's chaotic. It's terminology that's operating around. What is going on in Agile? Is it dominating the planet? Or is it something that is just a side-show? So, please if you go and I start to find out. Everybody is learning and socializing. They're implementing Agile. And interested in learning from each other about what works and what doesn't work. Whether it's a sheltered confidential environment so that we can share their roles and what's going on. So we could see what's going on. What's working, what doesn't work. And so we learned a number of things, much that I've already included in the book. And I'll summarize some of the headlines. One is, I guess the biggest headline is that Agile management does work in big corporations. Huge implementations, thousands. It offers 115 of VR. It is actually happening in this large organization. They don't have flaws, they don't have problems. But this is consciously and noticeably and comparatively better than it does actually work. That's the most important thing. But there are other things that we learned. That traditional managers are wandering around organizations with a picture of what management is like and it's sort of engraved in their brain. Summarize that at least the competition. The purpose, the goal of the organization is to make money for the operation to maximize their hold of value. And the main way of doing that is to be more efficient and to have costs and cost the workers not particularly interested in being more efficient. You have to pay social attention. So managers are wandering around the organization with that picture in their mind. And as long as that picture is in their mind it will be very difficult to process. So we really needed to find a way to raise that view image of what is managed, what is the very nature. And we looked around and we found out what is agile. We looked at the document, the changes but it's not of full value. These people are super bright. But people actually walk around with very simple rules of thumb in their brain and 16 elements are simpler. And in my 2010 book I had seven principles and I found that was too much. 16, 7 really absorbed, couldn't even remember 7. 40 flavors, yeah, that's way too much. And what we settled on is that there is really a triad of things which are the core of what these firms are doing. The first is valuing customers, the lighting customers. That's a decent goal of everyone in the organization. Everyone has a clear line of sight. It's the outlay of the living value, the core value of the customer. And you're going to be scaled, be done by small and organized company customers and the whole organization. Underlying that triad is a simple proposition, continuously to the customer, generating that that he is a trust customer, a nice triad and this is his whole big language. This is the base of what we call the law. The law of the customer, the law of the small thing. The most important of you is the law of the customer. It's not a new idea. Peter Drucker, there's only one and he must have thought for some time that it would again be a great length. This is really a greater force even today for the customer, power of the customer so much. This central principle is what drives everything in the Vatican revolution and it's similar to the problem. Useful thing that some evolved around without that change wave when we have to go 20 years into the farm with the periphery we tried to help with but we thought that basically it's an internal process. That's the first thing, the law. The second principle is the law of the small thing and this is what most of the second when I go to play is talking about how small things and it's about not scaling up but actually de-scaling work so that small, self-organizing cost money and a whole host of other lots of variations with the basic idea of that whole work. So you don't try to scale up the organization and de-scale the problem so that it can be handled. I'm not going to say very much about this but this is such a central point and it is in a sense, organization you can have an organization picture on the left, this is a huge helpful part of the community that rather good presentation and today simply a visceral reaction to this just couldn't face up to that's the way agile organization can take a long time. What I described is the Microsoft journey experimenting with one thing so we started to create a couple of things 2010, the studio, 2011 it's either that or the whole development of it 4,000, 13,000, the implement of the reorganization 2014 there was firm-wide interest 2015 had a bank-wide mandate in 2017 that's 10 years and it's a whole project this is not something this is the system how we say the essence of it and then Google will tell me well is that really all you need we need agile HR we have these three laws and then what to do about but if you start the other way around and said what would it like to have an agile HR you would make some progress but the risk of not connecting with our organization with a whole of it wouldn't start in the piece so that's operational agility this is the thing you're talking about strategic definition operational agility is about making existing products better, faster, cheaper profitability is about market creating new customers many more customers we had Thomas Edison we had asked his customers what they wanted, they wanted a faster horse have a mobile phone and didn't need one I can't survive without a broadband customer you didn't want an Amazon not simply making retail better it's also generating new business it's generating new business all these examples are just making existing more existing customers they are looking at new customers people who agile well who have teams that are making the product better, faster, cheaper you will in due course be rewarding money that is something great power and is able to exist on improvements there is no cost lower cost you are busy paying less for it we talked about you are operating a world of fierce competition bloody red ocean while you're in that no one makes original ability and kept making it better and better we saw that in mobile phones 7 we had to response all busy making money what if we did something drastic what if we took away the keyboard to play the buttons I still made people say they took away my keyboard still haven't survived the loss of the keyboard it was quite a big decision to take away a lot of features large screen this leads on to Amazon is different but it certainly lasts and what does it do why does it need specific attention is that simply carrying on it is unlikely to lead those these four reasons the teams obviously tend to focus on customers who are in the telling them this needs fixing that turned away from in particular they resist dropping each say we're going to take away the feature of that decision don't think about your code this whole taking away the most you are cannibalizing your existing cannibalize the iPhone difficult to actually make that a Steve Jobs existence because that is a difficult to mobilize look risky all these reasons are unlikely to cease to keep this happen this was the case of discover weekly Spotify anyone use Spotify it's a music streaming service in 2015 at 60 million users and the problem that Spotify and all the music streaming service how do you find music with the 20 million songs how do you find is that most people spend out there searching so this was a a basic problem and put a lot of effort solution to work on proving there was one team who put four people who had a different idea Spotify where they were white out based on users tastes and they could go on to master the great deal in machine work so it wasn't a huge great deal next to users tastes I suddenly found my latest favorite song talking about why don't we try this out on one Spotify 21 the language is not just a discover weekly it's an organization that must be all obsessed getting a better experience and the organization is working for the house mostly CEO of SRI Silicon Valley who generated whole slew of business creating most famous album is Siri the system had about methodology having those four elements out of crucial pieces so the first step is to get clear of what is the unmet Spotify discover weekly the lead was all of the 60 million users so basically finding new songs and the lead was large and 6 billion the very large the approach is speaking for each user possible enthusiasm to learn how to use Spotify when my daughter started to tell me about the system it generated this enthusiasm and they didn't want to use that and the competition what is the main competition for most of the ideas is that customers will do not people will put up all of the data 60 million users they didn't use that is how you are able to see is this something that can be what you see in the case of Siri they spent 3 years discussing in retrospect operational ability this is not a bad thing you really want to try how you create a cover you live in the 80 batter you will find a lot of time they will survive you are living questions Hi Steve Google Facebook we mentioned 3 companies Amazon they all talk it doesn't much talk about Scrum much of the framework process with respect to their teams in terms of operational and strategic agility how the team grows