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Agiles methodologies to handle innovation and crisis

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2

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Identifying, structuring and piloting disruptive situations using agile type of methodologies

Approaches and case study

MBA 2010 & Risk Management Module (Prof. Emmanuel Fragnière)

April 17, 2010

3

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Synopsis :   Admin stuff

  About us

  Managing disruptive situations in crisis times using agile type of methodologies

  A Case study : Designing & Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Wrap-up

4

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Time table

11:30 – 12:00 Concepts & Methodologies

12:00 – 12:15 Briefing Case Study

13:00 – 13:50 Working Groups : - Solve Part A and - Prepare 10’ Presentation

13:50 – 14:30 Plenum : Group Presentations Part A

14:30 – 15:20 Working Groups : - Solve Part B - Prepare 5’ Presentation

15:20 – 15:40 Plenum : Group Presentations

15:40 – 16:00 Wrap-up

April 17, 2010

5

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Synopsis   Admin stuff

  About us

  Managing disruptive situations in crisis times using agile type of methodologies

  A Case study : Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Results

6

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

About us

Patrick Bays

  Lic. Econometrics, MBA IMD

  15 years of international exposure in

o  the prototyping and the implementation of disrutptive innovation

o  change management within several industries

  PwC, Tetra Pak, Swisscom, UCB Pharma, Wake Asset Management

  English, German, French

Philippe Steinmann

  Expert Auditor

  20 years of international exposure in :

o  the management of special projects

o  Supporting organizations facing volatile situations (high growth rate, turnaround)

  KPMG, Ilta Holding, Euroterminal

  English, French

April 17, 2010

7

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Synopsis :   Admin stuff

  About us

  Managing disruptive situations in crisis times using agile type of methodologies

  A : Management approach

  B : A deep dive in agility type of methods

  C : How to practically handle such situations

  A Case study : Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Results - Wrap-up & Good-luck

8

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Risk Management SSoA: awareness changes perspectives

9

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Set the stage and quickly agree upon a common language

E

Event

Crisis management

Vulnerability analysis Anticipate Apply Restore Prevent

Step 1 Step 2 Step 3 Step 4 Step 5

Business continuity Planning

Risk Management Contingency Planning Recovery Management

Threats Measures Norms and protocols

Standards of engagement

Manage the information

10

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

A situation of disruption occurs when ...

for a given organizational system….

Equilibrium A new

equilibrium

Correctives measures

Period of high vollatility

A particular event causes a disruption of this balance which threatens the sustainability of this system

E

11

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

All these disruptive situations have a point in common …

… initially no one anticipated the storm that followed.

Mumbai, Terrorists attacks

China Pledges to Work With U.S. on Iran Sanctions Toyota suspends sales January 2010, recall list

12

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Afterwards, most actors agree they were unable to grasp the severity of the situation …

…due to a slowly increasing disturbing feeling invading and panicking them

•  No abrupt change but soft slips causing discomfort and doubts

•  Lack of response and lack of anticipation leading from the start to to become chronic victims of events

•  Lack of internal coordination and consultation

•  Chaotic and contraductory internal so as external communication

Symptoms

Pot

entia

l im

pact

Low

H

igh

No Yes

Anticipated event

Crisis Management

Managing the unexpected

Operational Management

Fault Management

13

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The management of such a disruption is fundamentally different if the triggering event could be anticipated in advance ...

E

Event

Crisis management

Vulnerability analysis Anticipate Apply Restore Prevent

Step 1 Step 2 Step 3 Step 4 Step 5

Managing the unexpected

React Restore

14

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Principles

Our approach to managing the unexpected

Méthodology

Goal

Allowing in uncertainty situations to,

•  analyze •  structure •  solve

a problem

using successive iterations

Observing extreme behaviors in Crisis times

15

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Standards code of conducts and normed protocoles

Method of dynamic resolution by successive iterations

Military Forces ** Emergency Department **

Each corporation has developed different ways of managing a crisis depending upon the environment they are confronted with

Information quality

Database

Results

•  Precise, measured

•  Exhaustive

Time management

•  Likelihood available

•  Normed

•  Poor, estimated

•  Fragmentary

•  Expected

•  Estimated

** : no resistance to change

t SStart SEnd

3 minutes

t

SStart SInt.1 SInt.2 SInt.n

16

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Understanding the quality of information available is key for the manager to apply the proper behavior

Emergency Department

Military Forces

ED MiF

React Apply

Manager

Ma

Crisis situation

Qua

lity

of th

e in

form

atio

n av

aila

ble

Estimated Normed P

oor

Pre

cise

, cal

ibra

ted

Time management in emergency situations

ED

MiF

Mgr

17

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The military-style approach (simplified)

Analyzing and Planning

Triggering emergency measures

Draft backplanning

Assessment of the situation

Shaping decision

Developing the engagement plan

Identification of the problem

Iterations

April 17, 2010

18

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The Cougars in a nutshell :

  Admin stuff

  Who we are and who you are ?

  Managing disruptive situations in crisis times using agile type of methodologies

  A : Management approach

  B : A deep dive in agility type of methods

  C : How to practically handle such situations

  A Case study : Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Results - Wrap-up & Good-luck

19

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Agility in a nutshell

20

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Our approach combines the strengths of two frameworks using cross functional teams to quickly generate an impact

•  A technique to rapidly immerse a team into a situation for problem solving in : o Product development o Process improvement o Customer service strategy

•  An agile and lean methodology used for software development: o Designed to adapt to changing

requirements during the development process at short regular intervalles

o Allows teams to priorize customers requirements and adopt work produced in real time to customer needs

Deep Dive Scrum

21

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Deep Dive: step by step

Inspiration Implementation Ideation

Observe and inquire

Tell stories

Synthesize

Execute

Spread

Visualize Realize

Refine Evaluate

http://www.youtube.com/watch?v=M66ZU2PCIcM

22

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Observed

Abstract

The Deep dive belongs to the Design Thinking framework

Time_

Problem

Observations

Méthod. Framework

Prototypes Prototypes Prototypes Prototypes

Principles Observations

Solution

23

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

But the IDEO Frameworks reaches some limits as soon as the requirements need to be re-priorized permanently

Scrum methodology mainly used for software development provides a strong framework to address this topic

Scrum

24

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Scrum in a nutshell http://www.youtube.com/watch?v=vmGMpME_phg http://www.youtube.com/watch?v=Q5k7a9YEoUI

25

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Selection of requirements is key

26

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Une fois les besoins du client hiéarchisés, les deux acteurs s’engagent

27

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

An high level illustration of our Agile Development Methods

Inspiration Ideation Implémentation

Observe and ask

Develop a Storyline

Priorize

A dynamic approach under dynamic environmental monitoring

Co-Create

Deep Dive Scrum

April 17, 2010

28

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The Cougars in a nutshell :

  Admin stuff

  Who we are and who you are ?

  Managing disruptive situations in crisis times using agile type of methodologies

  A : Management approach

  B : A deep dive in agility type of methods

  C : How to practically handle such situations

  A Case study : Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Results - Wrap-up & Good-luck

29

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

In practice, a situation of high volatility is resolved step by step

Project Management & Communication

Step 2

Decision

Clarification

Step 3

Decision

Agile Prototyping

Step 1

Decision

Scoping

Urg

ency

mea

sure

s

Step 5

Decision

Implementation, controls and adjustements

Step 4

Decision

Gain support

Storyline

Planing

Change management & Implementation

Pro

cess

To

ol-B

ox

30

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The Basic Model : Analysis – Concept - Outputs

Méta-Modèle A

naly

sis

Con

cept

Out

puts

The goal here is clearly •  to understand the market /

client / technology and constraints (internal & external SWOT analysis, PESTLE analysis and Primo-F analysis and gather facts

•  Draft a first logical structure •  Sketch first desired outputs

April 17, 2010

31

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The Cougars in a nutshell :

  Admin stuffs

  Who we are and who you are ?

  Managing disruptive situations in crisis times using agile type of methodologies

  A Case study : Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Part A : Diagnosis, Scoping and Clarification

  Part B : Prototyping and implementation

  Results - Wrap-up & Good-luck

32

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Engagement Teams

Team 1 :

Team 2 :

Team 3 :

Team 4 :

33

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Case Study Part A : team requirement

Within your attributed teams, using the module toolbox so as the concepts and methodologies presented today morning, analyze thoroughly the information provided for Part A.

Expected Output from each group:

a max 10 minutes bullet point team presentation in powerpoint presenting

  Risk inventory (refer to Prof Fragniere handouts pp. 11, 12,13,16) and

  Risk mapping (refer to Prof Fragniere handouts p. 30)

Time at your disposal for preparation: from 13 : 00 to 13 : 50

Good luck !

April 17, 2010

34

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The Cougars in a nutshell :

  Admin stuffs

  About us

  Managing disruptive situations in crisis times using agile type of methodologies

  A Case study : Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Part A : Diagnosis, Scoping and Clarification

  Part B : Prototyping & implementation

  Wrap-up

35

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Case Study Part B : team requirement

Within the attributed team, using the module toolbox so as the concepts and methodologies presented today morning, analyze thoroughly the information provided for Part A so as the additional information provided for Part B.

Output expected from each team :

A 5 minutes bullet point presentation presenting

  Which strategy to mitigate which risks ? ( consider pp 42, 90, 91, 92, 139) ?

  How would you manage the perceived risks ?

  Briefly : How would you envision prototyping such a dilemma under a time constraint of 4 months ? How would you implement your solution and by when?

Time at your disposal for preparation: from 14 : 30 to 15 : 20

Good luck !

April 17, 2010

36

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The Cougars in a nutshell :

  Admin stuffs

  About us

  Managing disruptive situations in crisis times using agile type of methodologies

  A Case study : Implementing Counter terrorism security for a leading brand in the luxury Hotel Industry

  Wrap-up

37

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Exp

ertis

e Gérer de telles situations de rupture nécessite :

•  Etre convaincu qu’il est meilleur de se tromper tôt et souvent au lieu d’une fois mais trop tard

•  Permet de revisiter en permanence le processus de décision en fonction des modifications de l’environnement

Expérience Préalable

Méthodologie de « type » agile

•  Understanding the complexity of the problem •  Being at ease to make difficult decisions •  Know the "standard silencer

Légitimité •  Le projet doit disposer des appuis au bon niveau organisationnel (idéalement Conseil d’administration ou Direction générale)

38

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Exp

ertis

e Managing such disruptive situations requires :

•  A customer based approach for product development based on the fact that the external conditions (customer and marketing) will continually change.

•  The purpose is to increase efficiency in the cooperation between the internal and external partners

Previous exposure

Agile Methodology

•  Understanding the complexity of the problem •  Being at ease to make difficult decisions •  Being aware of some “silent standards”

Legitimacy •  The project sponsor should be positioned at an organizational level, which enables carrying the required decisions (ideally Board level or Senior Executive level)

39

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

The issue to be managed within a firm following a situation of break-up is truly multi-dimensional

Emotions Resistance Surprise Stress

Lack or reference framework and boundaries

Indi

vivi

dual

s G

roup

es

Firm

Clash of several different perspectives

Resistance to change Understanding the stages of grief

Storylining to develop a shared vision

Envision a solution the way to get there

Managerial psychology

Rétroactive planning

« Agile » Méthodology

Change management

40

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

Les « standards silencieux » sont diamétralement opposés si le système est en rupture ou à l’équilibre

En situation d’équilibre

•  Les erreurs sont punies •  Les échecs ne sont pas tolérés

En situation de rupture

•  Les erreurs font partie du processus d’apprentissage

•  Les échecs nourissent le succès

•  A toute question posée, il existe une réponse correcte qu’il convient de trouver

•  Il n’existe pas de réponse correcte •  Il faut poser les bonnes questions

(et sans tabou) pour trouver la meilleure réponse

•  Faire preuve d’une opinion consensuelle

•  Avoir l’arrogance d’exposer une opinion dérangeante

41

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17

In practice, a situation of high volatility is resolved step by step

Project Management & Communication

Step 2

Decision

Clarification

Step 3

Decision

Agile Prototyping

Step 1

Decision

Scoping

Urg

ency

mea

sure

s

Step 5

Decision

Implementation, controls and adjustements

Step 4

Decision

Gain support

Storyline

Planing

Change management & Implementation

Pro

cess

To

ol-B

ox

42

Bath University – School of Management – EMBA Class of 2010 & Risk Management Option 2010.04.17


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