{"id":14403,"date":"2021-01-14T11:14:02","date_gmt":"2021-01-14T10:14:02","guid":{"rendered":"https:\/\/acent.de\/?p=14403"},"modified":"2023-10-09T14:35:05","modified_gmt":"2023-10-09T12:35:05","slug":"the-future-role-of-the-cio-10","status":"publish","type":"post","link":"https:\/\/acent.de\/en\/the-future-role-of-the-cio-10\/","title":{"rendered":"The future role of the CIO"},"content":{"rendered":"<p class=\"p1\">Agile has become one of the most misused buzzwords in recent years. Everything seems to become agile and everyone claims to be agile. Have you ever heard someone say, \u201cNo, we are not agile\u201d? But what do we actually mean when talking about agility?<\/p>\n<p class=\"p1\">The Wikipedia article on agile software development defines agile practices as follows:<\/p>\n<p class=\"p1\">\u201cIn software development, agile practices approach discovering requirements and developing solutions through the collaborative effort of self-organising and cross-functional teams and their customer(s)\/end user(s). It advocates adaptive planning, evolutionary development, early delivery, and continual improvement, and it encourages flexible responses to change. It was popularised by the Manifesto for Agile Software Development. The values and principles espoused in this manifesto were derived from and underpin a broad range of software development frameworks, including Scrum and Kanban.\u201d<\/p>\n<p class=\"p1\">The underlying principles of agile software development were already published in 2001 as part of the \u201cManifesto for Agile Software Development\u201d.<br \/>\nIt is an iterative approach to project management and software development that helps teams deliver value to their customers faster and with fewer headaches. Instead of betting everything on a \u201cbig bang\u201d launch, an agile team delivers work in small, but consumable, increments. Requirements, plans, and results are evaluated continuously so teams have a natural mechanism for responding to changes quickly. Short iterative cycles (sprints) and reducing overhead and bureaucracy to a minimum and therefore delivering small parts of usable code with a true business value very quickly, is the essence of agile.<\/p>\n<p class=\"p1\">Speed is of the essence to be competitive in today\u2019s business environment and that\u2019s one of the main reasons why agile methods have become so popular. However, often agile is misunderstood by business managers and mostly seen purely as an \u201cIT thing\u201d. They often believe that with their IT teams adopting agile methods, projects are simply delivered faster and cheaper with the same scope. However, this is an illusion.<\/p>\n<p class=\"p1\">My personal experience going through an agile transformation as a CIO has taught me that to be able to reap the true benefits of agile methods, the whole company needs to become agile \u2012 and this requires far more than just transforming IT. It is not enough to simply implement Scrum in IT, run a few projects the agile way, and believe that the company will then gain speed to market.<br \/>\nAfter we had used rapid prototyping methods for years and had co-located our IT teams with the business units, we started to introduce agile methods back in 2013. We experienced some benefits very quickly; by being able to deliver smaller chunks of ready-to-use software much faster than when employing the traditional waterfall methods. However, when trying to put the code into production, we got stuck with our own IT-internal ITIL-based processes. Our IT operations colleagues, who were rightfully charged to guard the \u201choly grail\u201d of stable and secure operation, only allowed code to be promoted based on stringent processes and acceptance criteria at predefined points in time, e.g., when the monthly, or sometimes quarterly release cycles were due. We realised that we would only be able to overcome this bottleneck by including IT operations people in the agile teams (squads) and by making them and their processes part of the agile transformation. This was the advent of DevOps in the organisation.<\/p>\n<p class=\"p1\">While I see many companies stopping their agile transformation at this stage, as they consider agile to be an IT methodology, we wanted to take it further because we noticed that some other parts of the company were still slowing us down, inhibiting us from reaping the true benefits of agile methods.<br \/>\nLet me give a few examples of such \u201cagile-inhibitors\u201d in traditional, hierarchically organised companies. Any resemblance with actual people or organisation units of any company I worked for are purely coincidental:<\/p>\n<ul class=\"ul1\">\n<li class=\"li1\">The marketing department refuses to get the new features of the mobile app put into production because a marketing campaign for promoting a set of new app features is only scheduled to take place in a few months.<\/li>\n<li class=\"li1\">Finance refuses to release more funds because the budget for the year is already consumed and they insist that we put everything on hold until fresh funds would be approved as part of the regular yearly budgeting process.<\/li>\n<li class=\"li1\">HR refuses to have the team recognised with an award for their excellent work and contribution after a key sprint because the regular yearly nomination process for the company\u2019s \u201cChairman Award\u201d just closed two months ago and the team should therefore be nominated for next year\u2019s cycle.<\/li>\n<\/ul>\n<p class=\"p1\">I could probably go on with such examples of units and functions within the traditional hierarchical silos, but I guess you got the point by now: You cannot limit agile to IT if you want to benefit from the increased speed to market that agile ways of working offer. Instead, you need to drive the transformation all the way through the company.<\/p>\n<p class=\"p1\">Traditional planning and project management methodologies served us well in the past but are today as much of a legacy as the hierarchical structures that serve the bureaucratic processes and group functions of most enterprises. These hierarchical structures with their rigid planning and financial processes originating from the industrial age of the last century (Taylorism) are not suited for \u2013 nor are they compatible with \u2013 the new agile paradigm.<\/p>\n<p class=\"p1\">I observed that in traditionally run projects (waterfall method), teams spend a lot of time waiting for others to do something. In many project review meetings, when questioning why the project was behind schedule, one frequent explanation was \u201cWe are waiting for unit A to deliver X\u201d. This can be bound to business units to sign off specifications or test cases, to run UATs, etc., or due to IT internal bureaucracy such as Enterprise Architecture to sign off the solution architecture, Cybersecurity to sign off the risks, IT operations to stage a server, etc., but also due to external factors, like a supplier of an outsourced component not delivering on time.<br \/>\nWhy are we spending so much time waiting for others involved in the project?<br \/>\nSimply put, because of the clear task and role separation of the industrialisation approach, leading to multiple handovers and overhead.<\/p>\n<p class=\"p1\">A fellow CIO of a European bank and one of the strong promoters of agile ways of working told me a few years ago: \u201cAgile is all about removing handovers. Handovers slow down processes and are the source of mistakes.\u201d<\/p>\n<p class=\"p1\">In the novel \u201cThe Phoenix Project\u201d, agile is accurately described as being about focussing on simplicity, the art of maximizing the amount of work not done. Similar to lean methods in manufacturing, it is about minimising \u201cwork in progress\u201d and avoiding bottlenecks.<\/p>\n<p class=\"p1\">In his book \u201cThe Delicate Art of Bureaucracy\u201d, Mark Schwartz describes how important it is to remove unnecessary bureaucracy to enhance agility.<\/p>\n<p class=\"p1\">In my view, agile is less about diligently following yet another methodology (Scrum, Kanban, SAFe, Holocracy, etc.) and again introducing bureaucracy as about a mindset, focussing on a few principles across the company and not only in IT:<\/p>\n<ul class=\"ul1\">\n<li class=\"li1\">Reduce handovers, hierarchies and bureaucracy =&gt; focus on integrated and self-organising teams that can decide on their own with lean governance<\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li1\">People positive attitude =&gt; trust people to get the job done, get out of the way, no micro-management or overengineered governance and processes<\/li>\n<li class=\"li1\">Reduce the size of work packages and \u201cwork in progress\u201d and therefore cycle times<\/li>\n<li class=\"li1\">Constant on-going improvements vs. clearly defined projects and iterative adjustments vs. long drawn plans<\/li>\n<\/ul>\n<p class=\"p1\">As agile methods already have some tradition in IT, the CIO is well placed to drive the agile transformation across the company and to help the business colleagues become agile, by adopting these principles and by helping them to change the mindset within their organisations. This is an important part of the role of modern CIOs, who wants to add value to their companies and make a positive impact. Today\u2019s CIOs are expected to get out of the back office, relinquish the traditional role of IT as a support unit and to move into the driver\u2019s seat of the agile transformation across the business.<\/p>\n<p class=\"p1\">The eleventh part &#8220;Reversing the outsourcing madness =&gt; back-sourcing, or &#8216;How much IT to keep in-house?&#8217;\u201d, will appear shortly. Questions, feedback and comments are highly appreciated: <a href=\"javascript:secureDecryptAndNavigate('Hiho9JWwvMq7rYNaV6MwCNn5suJRHk1QBrw4KM6hUVHQy2EvErmrGhNVBcOQ8hiT7N+BQ976dmI4qVnooYO8yr3SdKBUng==', 'da1ce663fbe302b6dc71a22fc457b416da9d774363e1dcb503d03f8cd55d8c00')\"><img src=\"https:\/\/acent.de\/en\/\/c9d645fbe65f220ae1382b751197087c\/p.&#110;a&#101;f&#64;&#97;c&#101;&#110;&#116;&#46;&#100;e\" class=\"cryptxImage cryptxImage_0\" alt=\"&#112;.&#110;a&#101;f&#64;&#97;c&#101;&#110;&#116;&#46;de\" title=\"&#112;.&#110;&#97;e&#102;&#64;&#97;c&#101;&#110;t&#46;de\" \/><\/a><\/p>\n<p class=\"p1\">Resources:<\/p>\n<ul>\n<li class=\"p1\">The (Delicate) Art of Bureaucracy: Digital Transformation With the Monkey, the Razor, and the Sumo Wrestler<br \/>\nBy Mark Schwartz, 2020<\/li>\n<li class=\"p1\">The Phoenix Project: A Novel About IT, DevOps, and Helping Your Business Win<br \/>\nby Gene Kim and Kevin Behr, 2018<\/li>\n<li class=\"p3\"><span class=\"s2\">Agile Manifesto: <a href=\"https:\/\/agilemanifesto.org\/\"><span class=\"s3\">https:\/\/agilemanifesto.org\/<\/span><\/a> , 2001<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Agile has become one of the most misused buzzwords in recent years. Everything seems to become agile and everyone claims to be agile. Have you ever heard someone say, \u201cNo, we are not agile\u201d? But what do we actually mean when talking about agility? The Wikipedia article on agile software development defines agile practices as [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16865,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[113,64,100],"tags":[],"class_list":["post-14403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cio-cdo","category-digitalisierung","category-future-of-it","themenkategorie-digital-innovation","branchenkategorie-banken-versicherungen","branchenkategorie-energie-versorgung","branchenkategorie-handel-transport-logistik","branchenkategorie-industrie","branchenkategorie-pharma-gesundheit","branchenkategorie-private-equity","branchenkategorie-technologie-medien-telekommunikation"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The future role of the CIO - ACENT AG<\/title>\n<meta name=\"description\" content=\"ACENT AG - Future of IT - Agile has become one of the most misused buzzwords in recent years. 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