Author: Blair Hanley Frank

  • These Three Approaches Will Help Your Enterprise Be More Agile

    These Three Approaches Will Help Your Enterprise Be More Agile

    Nearly every organization that tries to change its culture to be more agile and better adapt to changing environments discovers that it’s harder than it looks. Agile transformation can’t be superficial or only embraced by the IT department–it needs to be completely pervasive throughout the business.

    There is no one-size-fits-all approach or playbook that can be used to fit any organization’s unique situation. Yet, there are some common takeaways and best practices that can be gleaned from organizations that have successfully undergone agile transformation. Here are three common themes I’ve come away with from talking with organizations at various stages of their agile journey.

    Creating an Agile Enterprise Relies on Successfully Orchestrating Change in Culture, Organizational Structure and Technical Capabilities at the Same Time

    Changing enterprise organizational structure without changing culture and technology will lead to factors that drag down any potential transformation. It’s equally true when addressing any one of the elements in a vacuum. Instead, enterprises must address all three at once, which makes for a tricky prioritization exercise. 

    In many cases, new solutions will lead to new problems that organizations must address as they arise. Agile teams enabled to self-organize and pursue customer problems with greater freedom may find themselves hamstrung by inflexible legacy technology. Changing technology to enable agility may uncover additional organizational difficulties, and so on. Agile transformation is a long journey, and enterprises must adjust on the fly to their own unique circumstances.

    When Making Changes to Drive Agility, Think About What Scarf Everyone Wears

    Missy Lawrence-Johnston, a principal consultant from ISG’s Organizational Change Management practice, suggests that leaders should remember a warm and fuzzy acronym when working toward change: status, certainty, autonomy, relatedness and fairness (SCARF). The SCARF model was developed by neuroscientist David Rock, and explains how individuals react to change based on perceived threats and rewards. 

    If a change negatively impacts someone on one of the dimensions they consider important, they’re more likely to push back on it. For example, a manager who cares a great deal about their status will probably have difficulty embracing an organizational shift that works to cut down on organizational hierarchy. But that same change could be highly valued by a rank-and-file employee who prefers greater autonomy. How people react is individual, which is why the SCARF everyone wears is unique to them, as Lawrence-Johnston points out.

    As enterprises make the changes necessary to embrace agility, keeping this concept in mind will make it easier to navigate the threat responses employees inevitably have.

    Measure Culture by the Behaviors People Exhibit at Work Every Day

    ISG research shows that culture and team enablement are the most important factors when transforming into an agile enterprise. While culture can seem like something nebulous and difficult to pin down, it’s best evaluated by noticing what people do every day. Odds are, any employee of a firm has at least one story that illustrates what they see as the culture of the organization where they work. An enterprise’s culture is the sum of these stories.

    Agile transformation requires some fairly radical changes for businesses that are used to working in a waterfall mindset. This often looks like a shift from a hierarchical, rule-driven culture that focuses on command and control to a collaborative, self-organizing culture with servant leadership. Implementing this degree of change takes significant work. 

    When changing culture, it’s not enough to put up a fresh set of posters with new values. Living those values and building organizational structures to support them is the key to success.

    — Blair Hanley Frank

  • Collaboration Between Competitors is the Future of Enterprise Technology

    Collaboration Between Competitors is the Future of Enterprise Technology

    Mark my words: 2019 will be the year enterprise technology companies go back to kindergarten and realize that sharing really is caring—about their customers. Several key moves last year point toward a future full of collaboration between large and small technology vendors—even those that compete against one another.

    Companies rarely use a single vendor for all their enterprise IT needs, and their shift toward increased agility and their need for specialized capabilities will only lead to greater fragmentation. The vendors that make it easiest for their customers to connect IT systems with one another will be the biggest winners in the current IT market, even if that means they must work with previously sworn enemies.

    While integrating products with those of a competitor may seem like a risky move, the vendors that pull off those integrations have the ability to actually strengthen their defensibility through the application of network effects. Think of it this way: An ERP system becomes more valuable to the company that uses it with each successful connection the system makes to the company’s other systems of record. In turn, that makes it more difficult for the company to turn around and replace those systems.

    Key Examples

    Over the past five years, competing enterprise technology companies increasingly have partnered with one another to benefit their shared customers. Last year was a significant year for that sort of collaboration in the enterprise space.

    Salesforce.com announced several key strategic partnerships last year, including work with AWS that will make it easier for customers to send data back and forth from Amazon’s cloud. Of particular interest is the work the two companies are doing on Amazon Connect, the Seattle-based company’s contact center software that competes with Salesforce’s own Lightning Dialer product. Google Cloud and Salesforce are also working together on IoT and analytics applications to serve their shared customers, even though Salesforce already offers its own analytics suite.

    On the end user side, Google now allows Box users to store files from Google’s G Suite collaboration service in the content services company’s cloud, and is working with Dropbox to provide similar functionality. Box and Dropbox compete with Google Drive, but working with the other companies allows Google to broaden its appeal, especially to companies that would prefer their data not get stored on Google’s servers.

    But there’s a new sort of collaboration on the horizon: Multi-company alliances that provide even broader benefits to customers. Microsoft, SAP and Adobe announced last fall that they’re working on a new project called the Open Data Initiative that’s supposed to bring customer data from the three companies’ disparate products together into a common data lake for processing and analysis. Under the new initiative, customers should be able to read and write data from all three companies’ business applications.

    Microsoft CEO Satya Nadella said at the time that customer demand for collaboration and integration was the driving force behind this initiative. Pooling business application data is critical to enterprises’ futures. Companies that want to make the most of advanced analytics will need to access previously disparate data sources. Organizations must break down their internal silos between functions to increase enterprise agility—and technology must follow suit.

    Partnership Evolution

    Why now? It’s easier for different vendors to integrate with one another when business applications reside in the cloud. Different companies can build APIs to facilitate connections with one another. Vendors can also ensure their customers are running on consistent managed environments, which simplifies connections between different vendors. Customers also can more easily change vendors in the cloud era, which puts increased pressure on tech companies to provide products that meet enterprise needs, which means they must integrate more broadly.

    These companies also can build upon the foundation of their individual partnerships to form broader alliances. Both SAP and Adobe have individual strategic partnerships with Microsoft, and those relationships likely make it easier for them to forge a broader-reaching agreement.

    Finally, if tech companies don’t partner with one another, other firms will come along to do the job. A fleet of businesses including Informatica, Sapho and Mulesoft (now a part of Salesforce) exist to help enterprises create and operationalize connections between data sources. If vendors choose not to build these integrations, customers will find a way to create critical connections and may even abandon siloed products for more open alternatives.

    How Far Does This Go?

    There are still some fairly clear (if unstated) boundaries that haven’t yet been crossed. For example, Salesforce’s partnership work with Microsoft could be best described as minimal, ever since Microsoft’s attempted acquisition of Salesforce fell through and Microsoft beat out Salesforce to acquire LinkedIn. Similarly, AWS and its hyperscale cloud competitors aren’t doing much in the way of strategic partnerships with one another, and are instead content to keep sniping at each other through public announcements and new product launches.

    As such, enterprises should expect there will still be barriers to full and true openness among their technology vendors, and those barriers won’t be overcome easily. Case in point: For all of Microsoft’s talk of openness with the Open Data Initiative, the data lake in which customers are sharing their information with SAP, Adobe and Microsoft is hosted in Azure, not another cloud. If Azure remains the sole storage option for this initiative, it seems logical that not every Microsoft competitor will play ball and participate, since doing so would drive use of one cloud platform.

    However, there are some glimmers of hope on the horizon for broader collaboration between major cloud players AWS, Microsoft, Google and IBM. All of them are now members of the Cloud Native Computing Foundation and are working on the Kubernetes open source container orchestration software. As Kubernetes forms the foundation for an increasing number of modern applications, it’s possible we’ll see major cloud providers opt to work more closely with one another on building foundational components of application infrastructure.

    While such collaboration is far from friction-free, it does provide opportunity and a foundation for these firms and others to increase their collaboration, which we expect will be more important in the future as enterprises continue to embrace hybrid- and multi-cloud deployments.

    — Blair Hanley Frank