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Better SAFe than sorry?
Why scaled agile frameworks do not
necessarily improve your bottom line
and what to do about it.
Conny Dethloff & Moritz Hornung @ SDS-Community Broadcast on April 10th 2024
Thanks for having us!
Conny Dethloff
Graduate mathematician specialising in artificial intelligence
9 years as a manager at OTTO: actively shaping global cultural
change and transformation
16 years of consulting: large IT projects and transformations in various
industries
My drive: To create the best possible conditions for people so that
value generation becomes more successful
Moritz Hornung
Diploma Mechatronic Engineer & Master Business Administration
More than a decade of Siemens:
Metals Technologies & Siemens Advanta Consulting
Head of PM EA Segment @ Primetals Technologies
Passionate for dealing with leadership and organizational puzzles
Learning from nature how living systems work
2
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry?
Let‘s start with your opinion Go to menti.com and use code
29876221 or apply this QR
3
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry?
Whatisaframeworkandwhy
havetheybecomesopopular?
Framework: A selection of tools and methods. No more and no less.
A collection of tools and methods to solve problems in
organizational design. They generalized assumptions
or observations about how to ideally organize to solve
certain problems.
Frameworks are not good or bad by default like a
hammer can be used correctly or not.
Application of frameworks recognizes that structures
and processes are no longer sufficient for value
generation.
5
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry?
The manager’s dilemma: making the right decisions in the face of an uncertain future
The biggest challenge for managers in decision-
making is the expectation to make „right decisions“
under uncertainty.
This is a fallacy: A decision is only necessary when
there are one or more options that are both as good,
thus there is no knowledge available to „decide“.
If it can be calculated it is not a decision. If it can be
evaluated on facts (like investments) it is not a
decision. Thus; right or wrong cannot be determined
before judging the outcome of a decision.
Only those questions that
are in principle
undecidable, we can
decide.
Heinz von Foerster
6
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Siemens SDS Broadcast - Better SAFe than sorry?
Frameworks are a pleasant relief to this dilemma
If you need to decide “right” you can choose to decide what
everybody else decided.
The question shifts from “What is the right decision?”
to “What is a socially accepted decision?
The social acceptance of agile frameworks is high, despite
its obvious investment and maintenance costs. Using
established frameworks meets common expectations.
Insurance: If the implementation of a framework does not
work (=expected results are not achieved) the responsibility
can be attributed to the framework (or the people)
7
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry?
Whatpatternscanbeobserved
whenframeworksareapplied?
Organizations are no machines; however, most managers treat them like this
Socialization of „classical“ managers defines how they
see the world (Business administration and
Engineering)
Best practices are for ordered environments only, like
technical systems. This is where best practices work,
like in engineering or manufacturing.
However social systems are complex environments
that are contingent, thus what is “best” can only be
tried out in a specific context, not copied.
Complex Domain
e.g. social systems
Emergent practices
Ordered Domain
e.g. technical systems
Best (good) practices
Chaotic Domain
e.g. crisis
Novel practices
9
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry?
Please, trash your labels!
Organizational design is about fit not about perfection and ideals
Fun fact: It has been said everything about organizational theory in the
last century already. Every “new” organizational philosophy or
framework emphasizes a few organizational aspects to address
current, widespread problems (“Zeitgeist”) and creates new
“buzzwords”.
There is no perfect organizational design but only a fitting one. And that
design is as unique as the company and its past, culture, and future
ambitions.
„Every solution creates also a solution problem.“
„Today‘s problems are solutions of the past.“
10
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Siemens SDS Broadcast - Better SAFe than sorry??
Each framework SAFe, LeSS, Nexus, Kanban, Scrum and alike emerged in specific
fitting (!) contexts
Scrum: How can a team deliver in the best possible way and generate
value?
Kanban: Emerged in manufacturing. How can a team keep work
flowing and thus generate maximum output?
LeSS, SoS, Nexus: How to organize the interaction of several teams
working together to build something?
SAFe: How to design entire organizations to deliver continuously?
However, if you adopt a framework, you also adapt the question and
the solution, despite your specific context (objectives, as-is, culture,
and alike)
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Siemens SDS Broadcast - Better SAFe than sorry?
A framework must apply its solutions,
as it has already limited the solution space by its design
A craftsman has a variety of tools available, and they
are applied based on the problem that is found not
because the tool is available.
There is no need to use a drill if another tool is more
suitable! You can turn a screw in the wall with pliers or
use a screwdriver. The result is the same, but the
effort is different.
For frameworks it is different, to be unique they
need to exclude or limit valid tools and methods
(like a waterfall, central decision-making, planning,
and others) thus limiting the solution space.
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Siemens SDS Broadcast - Better SAFe than sorry?
Sooner or later a framework locks organizations in:
It is more important to be compliant than effective
Path dependency kicks in: There were no “wrong”
decisions in the past à (still) trying to be right, sunken
costs, keeping up the appearance, making it work
Instead of solving problems at the bottom-line things
become dogmatic: it is about “agile leadership”, “agile
procurement”, or labeling various activities as “agile”,
even in contexts where it is not applicable by default
(e.g. hardware design)
Problems that have been caused by the adoption are
not accepted à Risk for cynicism and inefficiency
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Siemens SDS Broadcast - Better SAFe than sorry?
Howcanyouescapethe
frameworktrapand
improveyourbottomline?
First: We are very sorry…
There is no silver bullet. There is no “standard framework way” to paradise.
Image©MarkoPriskefor Shaolin TempleEurope
There is no change
without pain.
Shi Heng Yi
15
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Siemens SDS Broadcast - Better SAFe than sorry?
Step 1: Decide if anything you heard today could be true…or not.
Ask yourself:
How different does “working agile” feel
compared to working “classical”?
How much did you adopt the goal to work
“agile” instead of solving bottom-line
problems?
Do frameworks take too much for granted,
despite their claim for empiricism?
16
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Siemens SDS Broadcast - Better SAFe than sorry?
Step 2: Take an outside-in view.
Begin by suitably describing your situation so that you can work with it.
17
Description: What can be seen or measured?
Objective data, like velocity, bug rate, estimation
success, etc. that is not disputed.
Explanation: What is causing the situation?
Assume causality or correlation; but be aware that
there is no linear cause and effect in complexity.
Evaluation: What do you think about it?
This is never objective, but subjective. Understand,
what incentives, values, preferences, etc. people apply
to make this evaluation and why they differ.
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry?
Step 3: Start to distinguish between real problems and internal issues
Change only happens if a sufficient sense of
urgency is there.
Real urgency is created by changes in the
relevant environment (market).
You heard the term “change story”. A story is
only as good and relevant as the topic that is
addressed.
Make sure you address external references
instead of internal ones. Being “agile” and
applying a framework or following a rule is an
internal reference. Your organization decides
to make it relevant!
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry? 18
Market
Organization
Changes in
Legislation
Customer
demands
Employee
requirements
KPIs
Objectives
Budgets
External reference:
A problem generated
by the market (or
external stakeholders)
that your company
must recognize, or
damage occurs.
Internal reference:
A decision premise is
defined by the organization.
Risk of decoupling from
external references!
Step 4: Create a “safe space” for finding out what works best to solve your relevant
problem
Organizational cultures are strong immune systems for
organizations. These shared expectations, beliefs and
rituals “how things are done here” resist change – and
that is a feature, not a bug.
To overcome you need to start where you are. Use
formal power to create a space where it is understood
that the “best way” needs to be found not defined.
Start working empirically: Do things differently and
iterate from there. Failure means you learned something
about how the world (in your organization) really works.
19
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Siemens SDS Broadcast - Better SAFe than sorry?
Try to become a better version of your organization, not a copy of another one.
20
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Siemens SDS Broadcast - Better SAFe than sorry?
Frameworks should not be seen as best practice
and used blindly. There is no such thing as best
practice. Although organizations are comparable,
they are different in detail.
The organization's problems and core causes
should be described in the best possible way.
Existing frameworks can then be used as a basis
for taking suitable tools and methods to
implement them.
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry? 21
Survival is optional.
Nobody needs to change.
W. Edwards Deming
Thanks for your valuable time!
21
10.04.2024
Siemens SDS Broadcast - Better SAFe than sorry?
BeforeweheadintoQ&A
10Secondsofself-promotion...J
01.01.2024
Project 23
13 – 14
Juni
Get a ticket and join
Mercedes AMG‘s case
„Beyond Agile Frameworks“
with Conny Dethloff
More information:
www.noglossystories.org
Moritz Hornung
+49 176 22725205
m.hornung@emergize.org
Your contacts for fitted
organizational design
Conny Dethloff
+49 151 17153115
c.dethloff@emergize.org
© 2024 – All rights are reserved.
emergize.org

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Better SAFe than sorry - Why scaled agile frameworks do not necessarily improve your bottom line and what to do about it

  • 1. Better SAFe than sorry? Why scaled agile frameworks do not necessarily improve your bottom line and what to do about it. Conny Dethloff & Moritz Hornung @ SDS-Community Broadcast on April 10th 2024
  • 2. Thanks for having us! Conny Dethloff Graduate mathematician specialising in artificial intelligence 9 years as a manager at OTTO: actively shaping global cultural change and transformation 16 years of consulting: large IT projects and transformations in various industries My drive: To create the best possible conditions for people so that value generation becomes more successful Moritz Hornung Diploma Mechatronic Engineer & Master Business Administration More than a decade of Siemens: Metals Technologies & Siemens Advanta Consulting Head of PM EA Segment @ Primetals Technologies Passionate for dealing with leadership and organizational puzzles Learning from nature how living systems work 2 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 3. Let‘s start with your opinion Go to menti.com and use code 29876221 or apply this QR 3 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 5. Framework: A selection of tools and methods. No more and no less. A collection of tools and methods to solve problems in organizational design. They generalized assumptions or observations about how to ideally organize to solve certain problems. Frameworks are not good or bad by default like a hammer can be used correctly or not. Application of frameworks recognizes that structures and processes are no longer sufficient for value generation. 5 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 6. The manager’s dilemma: making the right decisions in the face of an uncertain future The biggest challenge for managers in decision- making is the expectation to make „right decisions“ under uncertainty. This is a fallacy: A decision is only necessary when there are one or more options that are both as good, thus there is no knowledge available to „decide“. If it can be calculated it is not a decision. If it can be evaluated on facts (like investments) it is not a decision. Thus; right or wrong cannot be determined before judging the outcome of a decision. Only those questions that are in principle undecidable, we can decide. Heinz von Foerster 6 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 7. Frameworks are a pleasant relief to this dilemma If you need to decide “right” you can choose to decide what everybody else decided. The question shifts from “What is the right decision?” to “What is a socially accepted decision? The social acceptance of agile frameworks is high, despite its obvious investment and maintenance costs. Using established frameworks meets common expectations. Insurance: If the implementation of a framework does not work (=expected results are not achieved) the responsibility can be attributed to the framework (or the people) 7 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 9. Organizations are no machines; however, most managers treat them like this Socialization of „classical“ managers defines how they see the world (Business administration and Engineering) Best practices are for ordered environments only, like technical systems. This is where best practices work, like in engineering or manufacturing. However social systems are complex environments that are contingent, thus what is “best” can only be tried out in a specific context, not copied. Complex Domain e.g. social systems Emergent practices Ordered Domain e.g. technical systems Best (good) practices Chaotic Domain e.g. crisis Novel practices 9 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 10. Please, trash your labels! Organizational design is about fit not about perfection and ideals Fun fact: It has been said everything about organizational theory in the last century already. Every “new” organizational philosophy or framework emphasizes a few organizational aspects to address current, widespread problems (“Zeitgeist”) and creates new “buzzwords”. There is no perfect organizational design but only a fitting one. And that design is as unique as the company and its past, culture, and future ambitions. „Every solution creates also a solution problem.“ „Today‘s problems are solutions of the past.“ 10 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry??
  • 11. Each framework SAFe, LeSS, Nexus, Kanban, Scrum and alike emerged in specific fitting (!) contexts Scrum: How can a team deliver in the best possible way and generate value? Kanban: Emerged in manufacturing. How can a team keep work flowing and thus generate maximum output? LeSS, SoS, Nexus: How to organize the interaction of several teams working together to build something? SAFe: How to design entire organizations to deliver continuously? However, if you adopt a framework, you also adapt the question and the solution, despite your specific context (objectives, as-is, culture, and alike) 11 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 12. A framework must apply its solutions, as it has already limited the solution space by its design A craftsman has a variety of tools available, and they are applied based on the problem that is found not because the tool is available. There is no need to use a drill if another tool is more suitable! You can turn a screw in the wall with pliers or use a screwdriver. The result is the same, but the effort is different. For frameworks it is different, to be unique they need to exclude or limit valid tools and methods (like a waterfall, central decision-making, planning, and others) thus limiting the solution space. 12 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 13. Sooner or later a framework locks organizations in: It is more important to be compliant than effective Path dependency kicks in: There were no “wrong” decisions in the past à (still) trying to be right, sunken costs, keeping up the appearance, making it work Instead of solving problems at the bottom-line things become dogmatic: it is about “agile leadership”, “agile procurement”, or labeling various activities as “agile”, even in contexts where it is not applicable by default (e.g. hardware design) Problems that have been caused by the adoption are not accepted à Risk for cynicism and inefficiency 13 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 15. First: We are very sorry… There is no silver bullet. There is no “standard framework way” to paradise. Image©MarkoPriskefor Shaolin TempleEurope There is no change without pain. Shi Heng Yi 15 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 16. Step 1: Decide if anything you heard today could be true…or not. Ask yourself: How different does “working agile” feel compared to working “classical”? How much did you adopt the goal to work “agile” instead of solving bottom-line problems? Do frameworks take too much for granted, despite their claim for empiricism? 16 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 17. Step 2: Take an outside-in view. Begin by suitably describing your situation so that you can work with it. 17 Description: What can be seen or measured? Objective data, like velocity, bug rate, estimation success, etc. that is not disputed. Explanation: What is causing the situation? Assume causality or correlation; but be aware that there is no linear cause and effect in complexity. Evaluation: What do you think about it? This is never objective, but subjective. Understand, what incentives, values, preferences, etc. people apply to make this evaluation and why they differ. 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 18. Step 3: Start to distinguish between real problems and internal issues Change only happens if a sufficient sense of urgency is there. Real urgency is created by changes in the relevant environment (market). You heard the term “change story”. A story is only as good and relevant as the topic that is addressed. Make sure you address external references instead of internal ones. Being “agile” and applying a framework or following a rule is an internal reference. Your organization decides to make it relevant! 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry? 18 Market Organization Changes in Legislation Customer demands Employee requirements KPIs Objectives Budgets External reference: A problem generated by the market (or external stakeholders) that your company must recognize, or damage occurs. Internal reference: A decision premise is defined by the organization. Risk of decoupling from external references!
  • 19. Step 4: Create a “safe space” for finding out what works best to solve your relevant problem Organizational cultures are strong immune systems for organizations. These shared expectations, beliefs and rituals “how things are done here” resist change – and that is a feature, not a bug. To overcome you need to start where you are. Use formal power to create a space where it is understood that the “best way” needs to be found not defined. Start working empirically: Do things differently and iterate from there. Failure means you learned something about how the world (in your organization) really works. 19 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 20. Try to become a better version of your organization, not a copy of another one. 20 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry? Frameworks should not be seen as best practice and used blindly. There is no such thing as best practice. Although organizations are comparable, they are different in detail. The organization's problems and core causes should be described in the best possible way. Existing frameworks can then be used as a basis for taking suitable tools and methods to implement them.
  • 21. 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry? 21 Survival is optional. Nobody needs to change. W. Edwards Deming Thanks for your valuable time! 21 10.04.2024 Siemens SDS Broadcast - Better SAFe than sorry?
  • 23. 01.01.2024 Project 23 13 – 14 Juni Get a ticket and join Mercedes AMG‘s case „Beyond Agile Frameworks“ with Conny Dethloff More information: www.noglossystories.org
  • 24. Moritz Hornung +49 176 22725205 m.hornung@emergize.org Your contacts for fitted organizational design Conny Dethloff +49 151 17153115 c.dethloff@emergize.org
  • 25. © 2024 – All rights are reserved. emergize.org