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EDGE: The Agile Operating Model That Will Help You Successfully Execute Your Digital Transformation
“[The authors’] passion for technology allows them to recognize that for most enterprises in the 21st century, technology is THE business. This is what really separates the EDGE approach. It is a comprehensive operating model with technology at its core.”Maximum innovation happens at the edge of chaos: the messy, risky, and uncertain threshold between randomness and structure. Operating there is uncomfortable but it’s where organizations “invent the future.” EDGE is a set of fast, iterative, adaptive, lightweight, and value-driven tools to achieve digital transformation, and EDGE: Value-Driven Digital Transformation is your guide to using this operating model for innovation.
—From the Foreword by Heidi Musser, Executive Vice President and Principal Consultant, Leading Agile; retired, Vice President and CIO, USAA
Foreword xvi
Preface xviii
Acknowledgments xxiii
About the Authors xxiv
Chapter 1: The Big Picture 1
Exploring EDGE 5
Agility Is Key to Fast Enough 7
Building Organizational Responsiveness 8
Toward a Customer-Value Fitness Function 10
It’s Not Easy, Just Imperative 16
Final Thoughts 17
Chapter 2: Tech@Core 21
A Digital Enterprise: Technology at the Core 22
Digital Technology Platforms 38
Who Creates Your Technology Strategy? 45
Final Thoughts 47
Chapter 3: EDGE Principles 49
Outcome-Based Strategy 51
Value-Based Prioritization 52
Lightweight Planning and Governance 53
Adaptive, Learning Culture 54
Autonomous Teams 55
Self-Sufficient, Collaborative Decision Making 57
Final Thoughts 57
Chapter 4: Building a Value-Driven Portfolio 59
Strategy and the Lean Value Tree 61
Evolving the Lean Value Tree 68
Funding Allocation 71
Final Thoughts 76
Chapter 5: Measuring and Prioritizing Value 79
Why Measures Matter 79
Identifying Measures of Success 80
Applying MoS to Portfolios 84
Prioritizing Value 85
Final Thoughts 92
Chapter 6: Building a Product Mindset 95
Moving from Projects to Products 96
The Role of Product People in Organizations 99
Product and Portfolio Team Collaboration 101
Defining Products and the Connection to the LVT 102
Defining the Product 106
Creating Agile Product Backlogs 113
Final Thoughts 119
Chapter 7: Integrating Strategic and Business as Usual Portfolios 121
Back to Reality 121
Integrated Backlogs 122
Backlog Components 123
Prioritization 131
Final Thoughts 143
Chapter 8: Lightweight Governance 145
The Lost Objectives of Governance 145
Establishing Lightweight Governance 146
Periodic Value Review 151
Rebalancing the Portfolio 152
Periodic Value Review Dashboard 155
Final Thoughts 155
Chapter 9: Autonomous Teams and Collaborative Decision Making 157
You Are Not Alone 157
Autonomous Teams 158
EDGE Teams 169
Collaborative, Self-Sufficient Decisions 175
Aligning Organizations to Business Capability 183
Final Thoughts 187
Chapter 10: Adaptive Leadership 189
Adaptive Leadership 189
Encourage an Adaptive Mindset 192
Lead Change 194
Be Bold 202
Riding Paradox 205
Inspire Others 207
Final Thoughts 209
Chapter 11: EDGE: Exploring Your Transformative Future 211
Index 217