When you start to use Agile in an organization, you often forget to transform the organization, this is causing some practical problems afterwards.
I will here try to give my view on how an organization could transform from a traditional organization into an Agile organization, I believe that the principles I show are working, but there can be room for discussing how to implement it in practice.
Inspiration come from daily work in organizations trying to work Agile and from Steve Denning's books and his presentation "Making The Entire Organization Agile".
The traditional organization is top-down, with control functions, and a lot of roles who are expected to make decisions to generate more profit for the company and the share holders. Most of the organizations that I have seen is silo based, so a simplified chart like below is something that I have seen several times, it can be different depending on the company, but I guess you get the overall picture.
If we try to step back and look at what we have and what we want to achieve, and then try to build the organization with the "delight the customer" in focus.
Let us start with a really simple example.
Let us assume that the customer is a company who hire a group of freelancer
The Customer have requirements which the PO filter and prioritize to the team, the team implement the requirements and ask the customer to test it when a resonable amout of requirements have been implemented.
This example does not require any support organization to help the Team (including the PO).
If we keep the customer in focus and have the "delight the customer" as the vision for the company, but make it a company rather than a group of freelancer, we will still have the Team (including the PO) as the most important in the organization, it is the team who can deliver what makes the customer delighted.
The team could need help from
* Q&V with various things, among others to secure that the team have the right tools to test, release, communicate, developer tools etc.
* HR to secure that everyone get salary, get the oppotunity to develop through education, have coaches to secure the communication between all stakeholders, finance to handle the economical part of the company (sell, buy, tax etc).
* Marketing to secure that the products gets exposed if we have a company without direct contact to the customer like mobile companies (Sony, Samsung, Apple etc), help to communicate with customers, help to analyze and create customer requirements (customers does not always know what they want before they see it).
This will require a huge mindset change, both with the team and with the rest of the organization, i.e. the team(s) must learn to use the new support organizations and stay down to earth, the organizations must learn that they do not exist to maximize their own or the companies profit, but to help the team to delight the customer!
How will this work if we scale it to the size of companies with 5000++ employees?
Let's look at mobile companies like Nokia, Apple, Sony, Samsung etc – this is an area where I have a lot of knowledge, but I am sure that the exact same principle can be used in other industries.
Mobile companies produce phones (we focus on this, they have other "products"), each phone they produce has the purpose of delighting a group of customers, so they will have a number of teams who are responsible for the product, they will have multiple products, but we will only look at one, the others are individual-copies and will use the same support functions more or less.
When we have several teams, it is very important that each team know what the teams does, it is also important that there is a good description of the product vision and the customer profile.
The teams will need coaches to secure the communication and help them to become better at what they do and how they work.
The teams will work in a environment where they have several servers to keep control of the SW, HW developers need to have equipment etc, this means that the teams need someone to support their environment – this could be handled by Q&V.
You may ask yourself, what happend to all the managers in this organization? They have become enablers or coaches – there is still a need for someone to set the salary for the employees, we are probably not ready to follow the example from Semco where the employees are setting their own salary, so some system is needed to help in this area.