How to Select and Develop Individuals for Successful Agile Teams Dave West & Wouter Aghina Confidential and proprietary: Any use of this material without specific permission of McKinsey & Company is strictly prohibited
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Our Speakers Dave West Wouter Aghina CEO & Product Owner Partner - Global Leader of Agile Scrum.org Organization and Transformation McKinsey & Company McKinsey & Company 3
Why did Scrum.org and McKinsey collaborate? McKinsey & Company 4
Who Is Scrum.org? Training Certification Improving the Founded by Ken Schwaber Profession of Co-creator of Scrum Software Delivery Community McKinsey & Company 5
This research is a deep-dive on what it takes to set up agile teams for success, a key prerequisite for agile transformations whether as pilots or at scale Aspire, Agree end state vision, develop blueprint and Scale & Roll out agile cells and transform the organization Design & Pilot learn through agile pilots Improve backbone, supported by a systematic approach to build capabilities Iterative approach Align and commit to Design and roll-out requiring organization the vision and scope agile units wave-by- to continuously test, of the agile wave, including learn and course transformation, informed moving people to new correct by assessment of the roles T o p T e a m A s p i r a t i o n A g i l e C e l l organization today Rewire core D e p l o y m e n t a n d S u p p o r t processes and Identify how agile can systems of the B l u e p r i n t B a c k b o n e unlock most value T r a n s f o r m a t i o n organization to and design support agility corresponding operating model C a p a b i l i t y A g i l e A c c e l e r a t o r P i l o t s Launch pilots to test Build the new the agile operating capabilities required model in a defined area to sustain agility Culture and Change Team Coordinate and communicate transformation, remove roadblocks, and start culture refresh McKinsey & Company 6
Which people are right for agility? McKinsey & Company 7
Why is this so important? McKinsey & Company 8
Simple work is being replaced by complex work VS McKinsey & Company 9
The Digital Age VS Age of Oil and Mass Production Age of software and digital Long term investment planning Short term investment planning Short term profit Long term value Efficiency Innovation and opportunity Specialism of labor Cross functional teams Process control Self organization and decentralization Management is king Rise of the creator McKinsey & Company 10
Jobs of Today and Tomorrow ▪ Creative ▪ Complex ▪ Team-based McKinsey & Company 11
Changing our beliefs about how we capture and create value Traditional model: Scarcity Agile model: Abundance “In an environment of scarcity, we “In a world of abundant opportunities, we succeed by capturing value from succeed by co-creating value for all of our competitors, customers, and suppliers for stakeholders, guided by a clear and our shareholders” coherent vision” McKinsey & Company 12
What did we find? McKinsey & Company 13
Findings – Top traits Ability to handle ambiguity Outcome vs. process oriented Team oriented rather that individual oriented McKinsey & Company 14
Research focus Concentrated on researching personality traits and work values that support: ▪ Ability to hand ambiguity ▪ Outcome vs. process oriented ▪ Team oriented rather that individual oriented McKinsey & Company 15
Poll – What is the most important personality trait for people in the agile enterprise? A.) Handles ambiguity Flexible, adjustable, yielding, tractable, willing. B.) Agreeableness Trusting/appreciative, straightforward, altruistic, compliant/kind, modest, tender-minded C.) Extroversion Warm, gregarious, assertive, enthusiastic (activity-seeking), excitement seeking, prone to positive emotions D.) Conscientiousness Competent, prefers order, dutiful, achievement striving, self-disciplined, deliberate E.) Openness Introspective, curious, imaginative, insightful, original, wide interests. McKinsey & Company 16
Relative importance of personality traits Team Members (N = 54) Product Owners (N = 54) 1.5 Handles Ambiguity 1.5 1.3 Agreeableness 1.0 -0.7 Extroversion 0.7 1.0 Conscientiousness 0.6 -0.6 Openness -0.5 -2.4 Neuroticism -3.2 Mean importance Relatively more important Relatively less important across all values McKinsey & Company 17
The Secret Sauce for Success… Agreeableness ( Friendly/compassionate vs Challenging/detached ). Tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others. It also a measure of ones trusting and helpful nature, and whether a person is generally well tempered or not. High agreeableness is often seen as naïve or submissive. Low agreeableness personalities are often competitive or challenging people which can be seen as argumentative or untrustworthy. Yes and vs Yes but McKinsey & Company 18
Poll –What are the most important work values for people in the agile enterprise? A.) Pride in Product Emphasize product ownership, its values and contributions B.) Openness to change Emphasize independence of thought, action, and readiness for change C.) Customer Centric Emphasize pursuit of fulfilling customers’ needs and preferences D.) Self Transcendence Emphasize concern for the welfare and interests of organizational colleagues E.) Self Enhancement Emphasize pursuit of one’s own interests and relative success over that of organizational colleagues McKinsey & Company 19
Relative importance of work values across roles Team Members (N = 54) Product Owners (N = 54) 2.1 Pride in Product 2.0 1.2 Openness to Change 0.6 0.4 Customer-centrism 1.1 0.3 Self-transcendence -0.1 -1.2 Self-enhancement -0.8 -2.6 Conservation -2.9 Mean importance Relatively more important Relatively less important across all values McKinsey & Company 20
The Product Owner vs the Team Member The Product Owner Team Member Pride in Product Pride in Product Customer centricity Openness to change McKinsey & Company 21
Hiring of selecting for agility McKinsey & Company 22
Focus on Four Main Things Motivation Support Customer Pride Outcomes, customer Mentoring, helping Interested in the Proud of their work, care value and a big vision others, valuing teams customer, care about about their craft their pains What gets you excited? When did you last help What would you ask the Describe something you someone? customer? are proud of If money was no objective what would When did someone last How would you Describe something you you do? help you? measure their success? are disappointed with McKinsey & Company 23
The importance of coaching McKinsey & Company 24
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Coaching can help Personality traits and work values considered important for agile teamwork are all moderately (4-6) to highly (7-9) coachable. Coachability of personality traits Coachability of work values Team Members Product Owners Team Members (N = 54) Product Owners (N = 54) 5.5 6.4 Handles Ambiguity Pride in Product 7.8 6.5 7.0 6.6 Agreeableness Openness to Change 4.8 6.6 6.0 6.3 Extroversion Customer-centrism 6.0 6.5 4.6 7.3 Conscientiousness Self-transcendence 4.5 7.7 7.1 5.6 Openness Self-enhancement 5.6 6.1 5.8 5.3 Neuroticism Conservation 5.3 5.7 Not coachable Very Not coachable Very at all coachable at all coachable McKinsey & Company 26
Key takeaways McKinsey & Company 27
What Does It All Mean? The move to agility has much deeper implications than The four questions to look for when selecting changing organizational models, processes and tools. and developing people: ▪ The change requires us to shift our thinking about what is ▪ What motivates them? important in terms of personality traits and work values. ▪ What they expect from others? ▪ Hiring requires a change from looking for heroes and super ▪ Do they have empathy with the customer? stars to thinking about team dynamics and personality ▪ Are they proud of the work they ▪ Coaching requires a change in what we advertise is have done? important and what we encourage in behaviors McKinsey & Company 28
Great teams do not mean technically the best people or the most experienced Working in a complex world requires great teams directed by an inspirational product owner with a clear vision. The ultimate success of the organizations is the combined effort of these people. It is important to look at: ▪ Personality (innate and acquired, and their constituent behaviors) ▪ Set of work values (innate and acquired, and their constituent behaviors) McKinsey & Company 29
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