Get Agile and Get Farther Faster

Those of us in IT have been using “agile,” a flexible methodology that improves software development, for quite some time. We like agile because it speeds up the development process and a whole lot more. So I suppose it was only a matter of time before smart business leaders realized the potential of agile to help other parts of their organizations to quickly adapt to changing conditions.

That’s the topic of the current Harvard Business Review cover story, “Agile at Scale: How to create a truly flexible organization” by Darrell K. Rigby, author of Winning in Turbulence; Jeff Sutherland, a co-creator of the scrum form of agile innovation; and Andy Noble, a partner in the consulting firm Bain & Company. It’s a good read and a terrific overview of how hundreds of companies are working now to integrate agile principles into their operations – from startups to multinational corporations.

What’s happening with agile now reminds me of the Wild West days of the Internet and, later, that other amazing innovation we all take granted today: websites and e-commerce. As organizations sought to harness those tremendous new technologies to reach suppliers, potential employees and, most importantly, customers and prospects, there were missteps, miscalculations and missed opportunities. There were also incredible winners and innovators that evolved “e-commerce” into today’s brave new world of The Internet of Things (IoT) and even Artificial Intelligence (AI).

The authors of the HBR cover story have studied the scaling up of agile at hundreds of U.S. companies. Or, as they describe it, “To go from a handful of agile innovation teams in a function like software development to scores, even hundreds, throughout a company—to make agile the dominant way you operate.”

They describe the challenges as “figuring out where to start and how fast and far to go, deciding which functions can and should be converted to agile teams and which should not, and preventing slow-moving bureaucracies from impeding those that do convert.”

Ah, yes, the challenges of learning to walk before we run.  Always a daunting challenge and yet the rewards of agile are numerous and well-documented: “higher team morale and productivity, faster time to market, better quality and lower risk than possible with traditional approaches.” Agile companies also stay closer to customers and adapt more quickly to changing conditions.

While I cannot begin to capture all the good information and advice in this article, here’s a quick snapshot of some of the key principles the authors recommend for building agility across a business:

  • Apply agile values and principles throughout the entire organization to ensure progress not partisan gridlock between agile workers and those still operating under the older “traditional” modes of operation.
  • Workstreams should be modularized and then seamlessly integrated.
  • Develop systems for acquiring star players and motivating them to make teams better.
  • Combine your annual budgeting process with a venture-capital-like approach. Sticking to a strict annual budget process is the kiss of death for new ideas and approaches!

That’s a lot to digest. But, in a nutshell, think about agile implementations like an unfolding Slinky: unfolding one link at a time until the entire spiral is engaged. Just make sure it doesn’t develop a kink – like bureaucratic systems that resist innovation – or the Slinky will stop dead in its tracks.

Why go slow if agile promises big benefits?

“Big-bang transitions are hard. It’s often better to roll out agile in sequenced steps, with each unit matching the implementation of opportunities to its capabilities,” note HBR’s distinguished experts.

But don’t go too slow or you might just miss the agile revolution.  Remember Friendster, Napster or Netscape? Don’t worry, neither does anyone else.

standardJune 12Tom SalonekLeadership

Intertech #6 on Top 25 Software Development Companies

Intertech landed the #6 slot on the 25 Largest Software Development firms in Minnesota.  My thanks to our loyal customers and extraordinary employees for making us possible.

standardJune 5Tom SalonekArticle on Intertech

Keep a Scorecard (and keep learning!)

If you read my book, The 100: Building Blocks of Business Leadership, you might (mistakenly) assume I’m done learning and implementing new business management ideas. Nothing could be further from the truth. In fact, one of the guiding principles at Intertech is “Keep Learning!”

In that spirit, Intertech’s leadership team read the book “Traction: Get a Grip on Your Business” by Gino Wickman. We were intrigued by Wickman’s Entrepreneurial Operating System (EOS), which addresses the six most fundamental aspect of any business: vision, data, process, traction, issues and people.

He notes, “Successful businesses operate with a crystal clear vision that is shared by everyone. They have the right people in the right seats. They have a pulse on their operations by watching and managing a handful of numbers on a weekly basis. They identify and solve issues promptly in an open and honest environment. They document their processes and ensure that they are followed by everyone. They establish priorities for each employees and ensure that a high level of trust, communication and accountability exists on each team.”

In addition to his book, Wickman runs a business helping organizations implement his EOS principles. On average, his clients’ businesses grow revenue by 18 percent per year. That 18 percent certainly peaked our interest! Isn’t it uncanny how numbers help to focus attention?

Since we already were following many EOS principles, we decided to begin with data. Wickman advocates developing a Scorecard as a means of using data in the form of metrics to “free you from the quagmire of managing personalities, egos, subjective issues, emotions, and intangibles by teaching you which metrics to focus on.”

Most of us look at profit and loss statements of course, but as Wickman notes, by the time key metrics are uncovered with a P&L statement it’s too late to do anything about them! With a Scorecard you get insight into your organization in close to real time. A Scorecard is:

  • The financial pulse of the company.
  • Comprised of leading indicators.  A leading indicator is a signal that something in the future will impact your business.  (A group called ITR Economics, which we’ve used for years, can help your organization identify your leading indicators.)
  • Updated weekly

The first step in establishing our Scorecard was agreeing about which metrics were the strongest leading indicators. We started by outlining where we want to be in three years.  There was good discussion about what we measure and target goals (as quantified with numbers). We’ve made some tweaks now that we’re in flight toward our 2019 targets.

Our Scorecard includes 15 metrics (the maximum number Wickman recommends) and is updated weekly. The metrics are shown in green to indicate that they’re on track. Red is used to show when they’re not on track. The metrics also are compared against what we’re aiming for in our three-year vision.

While the scorecard is updated weekly, at our monthly management meeting we have a discussion around the numbers. It’s typically a quick review unless we see red. Taking action early, when red becomes a trend, is why the Scorecard is a valuable tool.

Having the scorecard updated weekly keeps us all on the same page regarding our financials and critical numbers. But while the numbers typically “speak for themselves,” the story behind them sometimes is key to helping us know if something is just a temporary “blip” or the beginning of a negative trend that needs our attention.  When the scorecard is sent out, there are a few paragraphs telling the story behind the numbers.

According to Gino Wickman, there are seven truths about the Scorecard. If you believe them, using a Scorecard could be just the ticket for getting you company on track toward the growth and profitability you seek. They include:

  1. What gets measured gets done.
  2. Managing metrics saves time.
  3. A Scorecard gives you a pulse and the ability to predict.
  4. You must inspect what you expect.
  5. You can have accountability in a culture that is high trust and healthy.
  6. A Scorecard requires hard work, discipline, and consistency to manage, but it’s worth it.
  7. One person must own it.

We’ve seen positive results from using a Scorecard and we’re committed to continue using it. To learn more about this smart management tool, check out Traction. It’s also a great way to keep learning!

Next time I’ll share how Traction helped Intertech improve our meetings.

standardMay 1Tom SalonekLeadership

Learning from Leaders by Steve Schmidt

Guest Post

By Steve Schmidt, President, AbeTech Bar Code & RFID Solutions

When Tom Salonek wrote his book, The 100: Building Blocks for Business Leadership, I was eager to read it. I’ve long admired Tom’s company and the many awards it has received, not to mention Intertech’s consistent growth and profitability. I run a small business of my own and thought Tom’s book might give me some new ideas.

Oh boy, did it ever!

If you haven’t read The 100, I highly recommend it. This little book is crammed with practical management strategies that Tom has tested and proven at his company. Not only does the book provide 100 practical mini chapters (Tom calls them “takeaways”), it is sprinkled with fun quotes and Tom’s trademark humor. It’s the perfect book for a short business flight.

I should confess that Tom is my cousin, but please don’t think for a minute that this is a gushing “puff piece” based more on familial connections than merit. I’ve known the guy a long time and he’s always been highly motivated, focused and eager to learn and grow, both personally and professionally. He’s a, well, natural born leader. I’ve watched his company (and his family!) expand over time, and seen first-hand the productive and healthy workplace he and his partners have cultivated.

The word “mindfulness” is trendy now, but it’s a perfect description of Tom’s approach to business and life. By thinking and acting in deliberate mindful ways based on hard science and life experience, he has built a thriving organization on a solid foundation of values, like delivering beyond what is expected, treating people kindly and fairly, and keeping things in perspective. His book generously shares that experience and practical knowledge in an easy to digest format. It also comes with dozens of downloadable forms and other tools that I’m guessing are worth much more than the modest book price.

Now a confession.

When I first read The 100 it was still in the galley (pre-print) stage. Like the leader he is, Tom reaches out to others for input and alternative perspectives. I was happy to read the manuscript and give him my honest feedback. And, to be honest, I found it all to be a bit much. There are so many great ideas and recommendations; frankly, I wasn’t sure where to begin or how to implement them at my firm without losing a lot of time in the process.

I shared this reaction with Tom and he responded by explaining that following the ideas in The 100 actually save time by reducing surprises and increasing employee retention. Then he created a calendar showing how to implement his leadership program in the most efficient way possible. I reviewed the revised manuscript a second time and was pleased to give it my highest endorsement:

The 100 “artfully captures Salonek’s decades of leadership achievements and details repeatable steps that we all can take to improve our business results. Read the book, learn the secrets and enjoy the fruits of winning in the marketplace.”

standardApril 24Tom SalonekBook Review (of my book)