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Home Archives for culture change
Clarity, Cloud, and Culture Change at IBM

April 16, 2020 By David Terrar

Clarity, Cloud, and Culture Change at IBM

As we all know “business as usual” just changed for every person, team and organisation on the planet. In this “new normal” there are plenty of lessons to learn, unlearn and relearn. Essentially, we need to keep calm and carry on, at the same time as recognising the significant new opportunities this throws up alongside the common problems we are all facing. With that backdrop IBM just made a very significant change, the timing of which was prescribed before these new events overtook us. A new CEO, Arvind Krishna, took the reins on Monday 6 April. I’d like to comment on the new direction this signals, as well as the implications of the other management changes and strategic points that are described in the open letter he wrote to all employees on his first day in the job. I must disclose that I have a soft spot for the IBM company as I worked there and first learned about business for nine years straight out of University. I lived through a good CEO and a bad CEO, but that’s a story for another time. For me the changes that are already happening in the new guy’s first week trigger a realignment, the continuation of a significant culture change, and the clear consolidation of the company’s strategy.

Arvind’s predecessor, Ginny Rometty, has been helping IBM shift gears over the last couple of years, handing off collaboration and other software products to HCL, repositioning their approach to the Cloud after some early missteps, mentioning the Watson brand a bit less and AI and cognitive a bit more, and then making the most significant acquisition in their history – $34Bn for Red Hat, which finalised last year. A move that massively positions IBM at the heart of the open source world. Insiders tell me her last internal video briefing got a bit emotional as she passed on the baton. Combined with Arvind’s open letter what does it all mean?

In the letter Arvind references the mainframe and other successful platforms in their history, and he says:

“I believe now is the time to build a fourth platform in hybrid cloud. An essential, ubiquitous hybrid cloud platform our clients will rely on to do their most critical work in this century. A platform that can last even longer than the others.”

Putting aside what he talks about as platforms two and three, he is quite rightly referencing that IBM “owned” and still owns the mainframe market and has been strong with other products, platforms and services too, but what he is really making clear is their intention to occupy the mission critical, hybrid multi-cloud applications space. He goes on to spell out the strategy in three clear steps:

“First, we have to deepen our understanding of IBM’s two strategic battles: the journey to hybrid cloud and AI. We all need to understand and leverage IBM’s sources of competitive advantage. Namely, our open source and security leadership, our deep expertise and trust, and the fact that we enable clients to build mission-critical applications once and run them anywhere.

Second, we have to win the architectural battle in cloud. There’s a unique window of opportunity for IBM and Red Hat to establish Linux, containers and Kubernetes as the new standard. We can make Red Hat OpenShift the default choice for hybrid cloud in the same way that Red Hat Enterprise Linux is the default choice for the operating system.

Third, we all must be obsessed with continually delighting our clients. At every interaction, we must strive to offer them the best experience and value. The only way to lead in today’s ever-changing marketplace is to constantly innovate according to what our clients want and need.”

I particularly like the continuous innovation message made explicit that underpins the third strand of the strategy. I understand from IBM insiders he has doubled down on the hybrid story and his intent with further internal videos. Importantly, Krishna comes from a technical rather than sales or operations background, ran IBM’s cloud and cognitive software unit and was the architect of the Red Hat purchase. This isn’t any sort of pivot or change from the recent direction of travel, it’s just laying it out with refined clarity. IBM have been saying for a while that the easy 20% of workloads have moved to the cloud, but the next 80% are the complex, legacy style applications, often mainframe based, that have been running banking, credit card transactions, big business and big retail for decades. IBM’s track record with those customers and that style of secure, mission-critical application marries up with the strategy to make Red Hat OpenShift and containers as the standard choice for an enterprise customer’s hybrid “develop once, deploy anywhere” multi-cloud strategy, making IBM an attractive proposition compared to the typical choice of public cloud providers. IBM can see a big revenue opportunity for the next generation of cloud applications beyond the straightforward public cloud infrastructure market, maybe even bigger and longer lasting than the mainframe market.

Microsoft with Azure are obvious competition in the hybrid multi-cloud space, along with some of the other players, but maybe the closest to IBM’s platform strategy are VMware, now part of Dell EMC. Thereby hangs an interesting proposition and internal coopetition challenge for IBM. They have a significant amount of revenue in customers using VMware – they will have to balance those revenues with Red Hat OpenShift inside the cloud and cognitive software business and make it work.

And that leads me to the next key point, which is the significance of two of the leadership changes Arvind just announced. Jim Whitehurst, who was the CEO of Red Hat, in his new role as President, will head IBM Strategy as well as the Cloud and Cognitive Software unit which Arvind used to run. This is effectively splitting Ginny’s role between Arvind and Jim, and importantly bringing the Cloud and Cognitive Software unit both under Jim’s wing and direct into the CEO. Intriguingly it means Jim is directly managing that coopetition between VMware and Red Hat OpenShift. It also means Jim will have a huge and direct influence on the culture of IBM right now rather than at some point in the future as the next potential “CEO in waiting” for the company. The other leadership surprise was bringing in Howard Boville from Bank of America to become Senior Vice President in charge of the IBM Cloud Platform. An outsider from both IBM and Red Hat. A customer. A CTO. A fresh set of eyes.

How will Jim influence the IBM culture? To try and understand that question I’ve just started reading his book The Open Organization: Igniting Passion and Performance. The foreword by Gary Hamel is very much my cup of tea and sets the scene beautifully. Here are the first two sentences:

“Here’s a conundrum. The human capabilities that are most critical to success – the ones that can help your organization become more resilient, more creative, and more, well, awesome – are precisely the ones that can’t be managed.”

The foreword, obviously written before the acquisition like the rest of the book, goes on to explain how Red Hat is one of the small but growing number of companies that have transcended the old trade-offs between scale and agility, efficiency and innovation, and discipline and empowerment. I’m only a few chapters in, and Jim’s whole message of why opening up your organisation matters is coming across loud and clear. And he’s bringing that to IBM.

One of the IBM insiders was telling me earlier today about an open “Ask Me Anything” internal Slack session that Arvind had just set up for that day. They went on to tell me how everyone is aligned to and excited by the new strategy.

IBM’s been around for 109 years. It’s been through ups and downs and the elephant has learned to dance. This might be one of the most significant weeks in its history as it sets foot on the path to “opening up”, with a refined and defined market differentiation, and a clear and transparently explained strategy.

This post was first published at Bloor Research. Agile Elephant is a strategic partner of Bloor Research. To find out more, please contact us.

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Filed Under: leadership, shared values, strategy Tagged With: Arvind Krishna, culture change, IBM, Mutable Thinking, open business

Steve Jobs and why Collaboration is so important

November 22, 2019 By David Terrar

Steve Jobs and why Collaboration is so important

This is a shortened version of a post I wrote for our friends at Kahootz.

We believe a properly implemented company collaboration platform (or enterprise social network) is one of the key building blocks for an organisation to adapt to the fast changing business landscape and handle digital transformation more effectively.  Why is collaboration so important?  Why don’t we take some advice from Steve Jobs and his time with Apple, one of the most successful companies in the world?  Watch Steve being interviewed for a few minutes and you get some great lessons on collaboration, teamwork, and real leadership that you can apply to your organisation:

What are Steve’s messages?

  • “Apple is an incredibly collaborative company”
  • How many committees at Apple?  Zero! (think teams instead)
  • Apple is organised like a startup, the biggest startup on the planet
  • The senior leadership all meet once a week for 3 hours and talk about everything they are doing
  • “There’s tremendous teamwork at the top of the company which filters down to tremendous teamwork throughout the company”
  • “Teamwork is dependent on trusting the other folks to come through with their part without watching them all the time”
  • Apple is great at figuring out how to divide things up in to great teams
  • “If you want to hire great people and have them stay working for you have to let them make a lot of decisions, and you have to be run by ideas, not hierarchy – the best ideas have to win, otherwise people don’t stay!”

All of our research backs up these great ideas.  Steve’s advice maps in to the Team of Teams approach that we highly recommend.  The organisations that manage to connect all of their workers across their information silos work more effectively.  The organisations that harness their people’s knowledge and collective intelligence generate more revenue, more profits and are worth more.  But how do you put that in to practice?

Go over to Kahootz for the long version to hear how to put that in to practice, what can go wrong (and how to fix it).

If you want help on how to make your collaboration platform and approach more successful, or advice on choosing a platform and how to start, then please contact us.

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Filed Under: collaboration Tagged With: collaboration, culture change, digital transformation, Kahootz, leadership, mutable business, team of teams, teamwork

“Are you saying the map’s wrong?” – “Oh dear, yes!” – an example of Liminal Thinking

April 22, 2016 By David Terrar

“Are you saying the map’s wrong?” – “Oh dear, yes!” – an example of Liminal Thinking

Earlier this week I met with Dave Gray and he gave me an advance copy of his new book, and then I went to his talk at Postshift on Wednesday night. He talked Liminal Thinking, so what is that?

You might know that I am a huge fan of The West Wing (and Aaron Sorkin’s writing in general). There is a great sequence in the episode “Somebody’s Going to Emergency, Somebody’s Going to Jail” in season 2 when people and causes get the chance to pitch to White House staff for attention and funding on “Big Block of Cheese Day” (a day which recurs a number of times in the world of West Wing). One such team from the Organisation of Cartographers for Social Equality are pitching the idea of a government initiative across the school system that would change our maps and atlases from the Mercator projection of the World to the Peters projection. The argument is that stretching out the longitudinal lines so they are parallel at the north and south poles (back in 1569) to help navigators on ships, and so that the map fits on a page rather than a globe, actually skews the relative representation of the size of countries, and reinforces centuries old European Imperialist thinking. Those countries in the First World nearer the North Pole look unnaturally large – for example Greenland looks massive and similar in size to the whole continent of Africa when in reality its area is only one fourteenth of the size of that continent. We compound this incorrect filtering of land mass reality by putting, say, the UK on a page in the Atlas, and then Australia on the same size page, when actually that country is over 33 times the area of the UK. It’s why we Brits just don’t get how big the place is! The cartographers on West Wing argue that the maps influence our thinking in terms of World priorities and prejudices. The Peter projection (which should really be called the Gall-Peter projection) gives a much fairer representation. You have to see the look of incredulity on C. J. Cregg’s face as she looks at the new reality and says “what the hell is that!?”. Then when they suggest a North-South inversion of the new map (because there is absolutely no reason why North has to be at the top of the page), she just freaks out completely! This scene and the story behind it is a perfect example of Dave Gray’s Liminal Thinking approach, as described in the new book and at Wednesday’s event at Postshift’s offices in Shoreditch.

First sample the map presentation scene:

Liminal Thinking is the art of creating change by understanding, shaping, and reframing beliefs. The dictionary says liminal is an adjective relating to a transitional or initial stage of a process, or occupying a position at, or on both sides of, a boundary or threshold. As Dave knows, things happen at the edge, in the boundaries, in the spaces in between.

At Postshift in a sort of fireside chat, Dave related that he actually started out writing a book on agile software which morphed in to something different along the way. As he interviewed people for the book he realised there was a larger story than just talking about an agile mindset for developing software or technology more quickly and efficiently. If you are talking Agile, then Dave reckons Amazon ticks all the boxes, but their people don’t tend to talk or go on the record much about how they do what they do. He interviewed people who have to be agile in their thinking, like soldiers on the front line of the World’s trouble spots, or humanitarian aid workers in similar conflict zones. They have to maximise their ability to adapt yet still exert a level of control, and that’s agile. But in talking to them Dave realised that effecting change is connected with people’s beliefs. People in organisations who want to change things often don’t have the power, or the authority, or the budget to do what they want to do. Dave thought through how he could help that kind of change – and Liminal Thinking is what addresses that question.

Dave built a a sort pyramid of layers of thinking from reality, experience and attention, through to something that is “obvious” – what Dave calls you, me, everyone – see the diagram below.

Dave_Gray_obvious_stack

He quoted a neuroscientist called Zimmerman who says that our brains experience 11 megabits of information per second, but actually we can only take in and understand 50 bits per second. How do we open our minds to process more or different? Dave related stories in the book from the Vietnam war where the USA viewed the conflict in terms of the domino theory and the rise of communist China, without looking at the history, the fact that this was a civil war and that most Vietnamese actually hated the Chinese anyway. The wrong beliefs and the wrong frame of reference, and so the USA could have avoided that war if only those in charge had stepped outside of their bubble, and reframed their beliefs.

We talked Weapons of Mass Destruction in the Iraq conflict. Dave talked about the stupidity of self validation, and the difficulty of anybody taking on board something that is truly new. If it’s really new, it will make no sense to you because it falls outside of your current frame of reference. Actually you have to test stuff that falls outside of your “bible” and expand your experience. Dave believes that moving the needle of experience is the most powerful thing! Of other needles, he said that so much of our thinking is like a stylus on a record (we’re going retro here, remember long playing records and singles?). We hang out in the same network friends, and at any given moment there is a way we act – that’s culture. But Dave believe’s the problem of culture is his autopilot and your autopilot, and a well worn groove – a routine of doing the same things the same way, which we need to break. He related another story about someone who changed their life completely simply by parking in a different place in the company car park – that small change triggered a new, different chain of events for him leading to a new job and more. Beliefs are true only because we make them true. The key message here is shut off your autopilot – do things differently.

Dave told more stories about soldiers and special forces in Iraq, about his biomedical engineer brother, or about groups on the two sides of the abortion debate coming together to try and verbalise the opposing argument properly to the other side’s satisfaction. They didn’t change their core beliefs, didn’t find compromise but they did find significant common ground in the welfare of children and family. We talked about organisations using the carrot and the stick and the problems that certain incentives embedded in a corporate culture can cause, making the employees feel like lab rats in a maze, looking for the cheese. We talked about the issues around making change, around the power of the negative often outweighing the possibilities of the positive.

Dave believes everything starts with experience. How we should focus on people’s emotional needs, and how we need to create an environment that makes it safe for people to express themselves, as so many people hide their real emotions in the work environment. He went on to suggest we get distracted too much by the stuff we disagree on. About how the biggest barrier to a leader changing is that even when they talk the talk, they aren’t aware that they’re not really changing their behaviour. The higher you are in an organisation the more insulated you can get from reality, and you should be constantly asking – what is my bubble?

Dave talked about the amygdala, the lizard brain responsible for our fight or flight response that still has so much influence on why we do what we do. When Dave works with a new group or new organisation, he asks them “how can we help you design this organisation so you are jazzed to come to work each day”. What can we do to help us make this company great? What works? Who is doings awesome things in spite of the environment and the circumstances?

Dave talks about belief being the stories in your head, and ended the session confirming how vital stories and story telling are to the process of change. A great session. Thanks to Lee and the Postshift team for facilitating the talk. I’m halfway through the book, enjoying it (and Dave’s drawings) and looking forward to writing a review here soon.

Top image captured from Dave’s website, and diagram from his Liminal Thinking book

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Filed Under: agile business, change management, corporate culture, ideas, leadership Tagged With: beliefs, change management, culture, culture change, Dave Gray, Liminal Thinking

Key factors for Strategic Enablement

February 15, 2014 By David Terrar

Key factors for Strategic Enablement

Here is the panel session that I took part in at the Enterprise 2.0 Summit in Paris this week, on 11th & 12th February 2014.  We were discussing the key factors for strategic enablement of enterprise 2.0, social business, and social collaboration in organisations. Emanuele Quintarelli set the scene presenting a survey of Italian firms. Then the discussion, moderated by Bjoern Negelmann, was between:

  • Emanuele Quintarelli – Digital Transformation Practice Leader, Ernst & Young
  • Luis Suarez – formerly Social Computing evangelist, IBM Software group
  • Dr. Chee Chin Liew – Enterprise Community Manager, BASF SE
  • David Terrar – Founder & CXO, Agile Elephant
  • Simon Levene – Senior Strategy Consultant, Jive Software

There was actually some tension between the speakers, resulting in a great discussion.  The tension is between the likes of Emanuele and myself who want to lift the argument to real, hard, business numbers and metrics that the executives in the C-Suite can understand in a business case, versus Luis and others at the conference who want to focus on the culture change required in the workplace, on improving employee engagement, the move to knowledge sharing, open business and collaboration, with use cases that are effective.  Both are important.  But to accelerate things, it’s my belief we need cold, hard business logic combined with the inspiration to change to open business.  Listen to the discussion and you decide.

Here are a few key quotes I’ve lifted out of the dialogue:

“7 out of your 10 colleagues don’t give s#%! about what you do today!”

“need more doing than talking”

“go back to the core nature of how work gets done”

“how can I help you today?”

“but first of all we need to make it clear to the business where is the benefit”

“does management agree or recognise social as an enabling tool for more engagement and to solve the problem of the fundamental (financial) crisis?”

“not happening yet because we are talking about collaboration, we are not talking about measurable business benefits”

“the majority of people in this room are believers in this thing”

“it’s up to us as a community to get out there and communicate it better to the average business person in the street

“it’s all about use cases, if you come up with a list of top 10, 15 use cases of how people work and socialise them”

“break a silo, and you go in to openness and transparency”

My post setting the scene and introducing the show is here, and my conference report will follow shortly.

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Filed Under: business innovation, change management, corporate culture, employee engagement, enterprise 2.0, events, strategy Tagged With: Agile Elephant, BASF, business metrics, culture change, depression, employee engagement, Ernst & Young, hard numbers, IBM, Jive, Kongress Media, optimism, ROI

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