All posts by TriStrategist

Management Consulting

Is “Agile Methodology” Truly Agile?

Companies which start thinking about adopting Agile or Scrum Methodology in their software development or IT support cycle because it seems to the current fashion in the industry may need some careful thinking.

Before answering the question of the title line, the first question need to be answered by these companies in fact is: Is your software development a creative endeavor or a commodity production? Or can your IT cycle be reduced into assembly line stages? If the answers to the above question are ambiguous, then think again whether Agile/Scrum method is suitable for you.

From TriStrategy’s observations of many software/IT companies using “Scrum Methodology” or groups in high-tech industry trying to mimic it in order to stay in fashion as the name itself seems to indicate, the success is far and apart and the results can be just the opposite sometimes.

If a creative endeavor is absolutely critical in making software product a success, then what’s the point of measuring human creativity by the yardstick of an hour? If a well-motivated group of individuals need to communicate timely and collaborate closely, what’s the point of showing up in daily stand-up meetings with the people who often sit in next cubes to you and answering others’ dry inquiries about what you have done in the day or why you are doing or not doing the assigned small tasks? If we can all expect that every piece of software feature or IT action can be measured by the hour based on some average mind, why do we need hire so many high-paid skilled talents in these fields instead of just creating some standard robots with measurable movements for each small step for the task? Why do we value experienced leaders or project managers to have the uncanny abilities of placing resources at their best strengths and motivate them to achieve the most?

If one day, the tools and technologies have advanced to such a degree that many of the current creative efforts can be done by the machines, then software and IT industry will enter into a whole new age that is comparable to the industrial revolution time of the assembly lines. Then this “agile methodology” may be better termed as “measurable assembly-line method”. Will that ever be true for all software development or IT environment?
One time, a fairly senior director at a big software company described to me that their online services group with scrum by the master’s book resembled a running a train which routinely stops or leaves at regular intervals. All people in the group are put into this routine, days in and days out, reported and pushed by the scrum hours. Then he wanted to seek advice on the group’s worries about the current stage of degrading morale, depressing atmosphere and the exodus of their talented resources in their “agilely” managed environment. He was describing exactly a typical environment that can be the result from this methodology if rigidly applied. In simpler terms, they turned a creative work environment into a grindstone or assembly line for everyone. I told him that the reasons are simple: human are not machines and businesses vary. Creative people cannot be fitted into square holes, no matter what the so-called “scrum masters” may say.

The logic and approach embedded in Scrum methodology can be questionable if we are not in the least in an age that all software and IT cycle can be done by robots. It simply humiliates human capabilities, demotes the true values of creativity, passion, individuality or ingenuity, and amplifies the distrust of workplace devotion and collaborative spirits.

It’s such a great relief that we heard from neither Steve Jobs nor Bill Gates on promoting the so-called “Agile Methodology”. Because they had in their own experience created completely opposite type of atmosphere that they knew would work, a lot more productive, creative and exciting for people to work together to achieve the best they can. They believed in creativity, productivity and human potentials in the true sense. Their time has not fully passed yet because we can never live without creativities for new products, new tools and new services.

We cannot foolhardily accept any superficial hype. There will be people who might fall into the categories whose jobs could one day be replaced by robots or tools, but it would happen only because they permit it in their minds and actions. Human potentials are unlimited. Unlocking them is the key for any success. Suppressing them with rigid process or controls will serve just the opposite. Similarly intelligent humans will never yield to the robots or the robot-minded, because they want to create them and use them, not to be controlled by them.

Business Lessons Learnt

Boeing’s Dreamliners yet to have dreams come true

Boeing’s 787 line has been suffering some serious setbacks and bad PR lately. Well, it’s one of the most publicized product lines for Boeing. It has a long delay and it attracts long attentions. The result of any mistake is thus amplified by the time duration of the product finally coming to the market after years of delays.

It’s not the only noticible story ever in the business world. Another big company, once neighbors to each other,  has similar “Lessons Learnt” to Boeing still fresh in mind: Microsoft’s Vista launch. After 5 long years of waiting and delays, the product was reviewed unfavorably by the customers. Microsoft quickly corrected the actions in the next better OS launch after Vista, but a quick fix for an airplane model may take some time. Still, how Boeing deals with the current challenge will be critical for the big company’s image.

There hasn’t been such a Murphy’s Law which states: A significantly delayed project will result in poorer quality and worse customer acceptance. Well, it is very much the truth though in many cases. 

So what are the true reasons behind these significant drawbacks or failures?  Too many creative ideas? Too many unpredicated innnovations? To much publicity resulted in unrealistic expectations? Too daring? Too hard to manage? Bad economy? Yet, wait please, aren’t all of these already included in the normal categories of project management tasks – especially risk anticipation and risk management? To the end, a well-planned and well-managed project should encompass all and still can lead to a successful product completed on the expectations of time, budget and quality. Sounds like the true talents of such capability are still rare in big companies. People are usually the most unpreditable cause of any major failure.

Business Strategies

6 Common Business Strategy Errors

We like very much the summary of the common errors on business strategies from the book Playing to Win: How Strategy Really Works. By A.G. Lafley and Roger Martin, Harvard Business Review Press, 2013.

The Economist magazine today helps give a succint notes of these common strategy errors:
 

  • The Do-It-All strategy- No choice, no priorities.
  • The Don Quixote strategy-  Attacks the company’s strongest competitor first like a fool.
  • The Waterloo strategy- War on too many fronts at once.
  • The Something-For-Everyone- Tries to capture every sort of customer at once.
  • The Programme-Of-The-Month-The populist approach, pursuing whatever fashionable in an industry as a strategy.
  • The Dreams-That-Never-Come-True strategy- Never translates ambitious mission statements into clear choices about which markets to compete in and how to win in them.

Business leaders are tasked to make their strategies work and avoid these common errors. That may be easy to say than done. For new business, we’ve seen so many easily falling into the above categories. We all need keep in mind and keep practicing.  And then, most importantly: “no strategy lasts forever”. 

Global Business Environment

Globalization: timing and the local taste


The results of the globalization is often hard to predict. The success depends on many factors no matter how much research and preparation the company has put into pre-hand. Per Tristrategy’s theory, the timing of introduction and macro environment, the market readiness, the synergy of the expansion and the willingness of adoption from the customers are the key to success.

Tesco, top British grocery chain(about 30% of the UK market share), is not doing well with its US business after the openings of its Fresh & Easy stores from 2007. Daily grocery is a sensitive area of every common folk’s life and some local taste and habits may not easily be changed over. Part of the reason of this globalization story is that US folks’ stickiness to their daily grocery habits were underestimated by Tesco. Although US market is best known for its cutting-edge innovations in many areas, US consumers can be very stubborn and traditional, esp. on living styles and daily habits, just like French folks can’t live without their daily baguettes, cheese and wine.

The other part of the reason is also the timing and location. When they first opened Fresh & Easy stores in 2007, they chose California, Arizona and Navada. These were the hardest hit housing markets which started melting down terribly from 2007.  

On another side note, sensitivity to the local markets in globalization is always important, not only for businesses entering into a foreign market, but also for all economic and political initiations. Cultural and religious sensitivity  is hard to be over-emphasized in today’s politics, but also in any globalization attempt for business. Relying on local supporters can help overcome some of the obstacles, but preparation in the mindsets of the business leaders and respects to these sensitivities are also super important if a smoother result is expected. It surely adds challenges to the concept of globalization.

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P.S. on 9/24/2013: An update on the Tesco story- On September 10, 2013, Tesco agreed to sell most of its Fresh & Easy chain (about 150 stores out of 200) to billionaire Ron Burkle’s Yucaipa investment company and to exit the U.S market after a six-year trial. The rest of the unsold stores will be closed.

Business Lessons Learnt

Lessons learnt from HP

Recent disasters of the complete write-down and lawsuit with Autonomy purchase from the tech industry giant HP provided us some valuable insights to today’s business world and management lessons:

1. A sky-dived savior from outer space seldom will save the world. HP’s use of ex-CEO from an European company proved to be more of a disaster than a game changer. European’s business culture and management system differ startlingly from those of the Americans. High flying ideas and quick turnarounds that are rarely seen from the European business arena cannot be tested on a big American company without a proof of concept.

2. Like holidays sales, hot purchases based on wishful thinking usually cool soon after getting into the hands. A lot worse for those “no-return” ones. Microsoft’s 2007 purchase of AQuantive at $6.3 billion with 85% premium (a writedown of $6.2 billion in July 2012) and HP’s purchase of Autonomy at $11.7 billion with 64% premium (a writedown of $8.8 billion in November 2012) were of the same suit. There are more similar stories to come(for example, the May 2011 acquisition of Skype for $8.5 billion while Skype was valued at $2.75 billion by EBay’s divestiture just 18 months earlier.”So wish to get it, no matter at what cost” typically describes the mindset and behaviors of those hot-headed high-ups. What you wish to get vs. what you got, how you wished it be used vs. where you truly can use it are of different things even for companies with many brilliant lawyers and accountants- it’s just not their job to decide. It’s more of the display of the management’s “sudden brilliant flashes in the head”. Caution is needed. Compare, research and listen to the questions and opposite views before you buy.

3. This is a time for many businesses on a true transformation. Yesterday’s breadwinners may no longer be suitable to feed today’s hunger needs. The worldwide recession is a warning and also a calling. Systems-political and economical, industries, individuals, welcome to a changing world where old routines may no longer apply. Tides of changes are coming in bigger and faster ways than many companies have anticipated before. For those who have the culture of easily burning tomorrow’s bread-winners on today’s altar, time to call for a wakening. Tomorrow is already here. Yes, “Elephant can dance”, but it needs leaders who stays current but can see far ahead, who truly understand the culture, the business, who has the determination and means, who has the full backing of the key stakeholders and a little bit of time, to get there. The questions usually are: where to find these leaders, will the companies still have enough time before the next crushing wave? Are leaders and companies prepared in mindset?

General

TriStrategy’s Mission and Philosophy

Our mission is simple:

To be the top strategist in the global art of war for businesses.
To help companies adapt, grow and thrive in global business environment; help mankind in peace, prosperity and balance with nature through technologies.

We serve businesses with long-term focuses and global perspectives.  With the market timing in mind, we help businesses position in mindset, strategies and people to achieve the best geographical and resource advantages globally and to succeed in the growingly diverse and competitive business world.