Forewords xix Acknowledgments xxv About the Author xxvii Preface xxix 1 Why Things Are Not That Simple 1 Causality 2 Complexity 3 Our Linear Minds 5 Reductionism 7 Holism 8 Hierarchical Management 9 Agile Management 11 My Theory of Everything 12 The Book and the Model 13 Summary 14 Reflection and Action 14 2 Agile Software Development 17 Prelude to Agile 17 The Book of Agile 19 The Fundamentals of Agile 22 The Competition of Agile 24 The Obstacle to Agile 28 Line Management versus Project Management 28 Summary 30 Reflection and Action 31 3 Complex Systems Theory 33 Cross-Functional Science 34 General Systems Theory 35 Cybernetics 36 Dynamical Systems Theory 37 Game Theory 37 Evolutionary Theory 38 Chaos Theory 38 The Body of Knowledge of Systems 39 Simplicity: A New Model 41 Revisiting Simplification 44 Nonadaptive versus Adaptive 45 Are We Abusing Science? 46 A New Era: Complexity Thinking 48 Summary 50 Reflection and Action 50 4 The Information-Innovation System 51 Innovation Is the Key to Survival 52 Knowledge 54 Creativity 56 Motivation 58 Diversity 60 Personality 62 Only People Are Qualified for Control 64 From Ideas to Implementation 65 Summary 66 Reflection and Action 67 5 How to Energize People 69 Creative Phases 69 Manage a Creative Environment 72 Creative Techniques 74 Extrinsic Motivation 75 Intrinsic Motivation 78 Demotivation 79 Ten Desires of Team Members 80 What Motivates People: Find the Balance 83 Make Your Rewards Intrinsic 86 Diversity? You Mean Connectivity! 87 Personality Assessments 89 Four Steps toward Team Personality Assessment 90 Do-It-Yourself Team Values 92 Define Your Personal Values 94 The No Door Policy 95 Summary 97 Reflection and Action 97 6 The Basics of Self-Organization 99 Self-Organization within a Context 99 Self-Organization toward Value 101 Self-Organization versus Anarchy 102 Self-Organization versus Emergence 104 Emergence in Teams 106 Self-Organization versus Self-Direction versus Self-Selection 107 Darkness Principle 108 Conant-Ashby Theorem 110 Distributed Control 111 Empowerment as a Concept 112 Empowerment as a Necessity 113 You Are (Like) a Gardener 115 Summary 117 Reflection and Action 118 7 How to Empower Teams 119 Don't Create Motivational Debt 119 Wear a Wizard's Hat 121 Pick a Wizard, Not a Politician 122 Empowerment versus Delegation 123 Reduce Your Fear, Increase Your Status 124 Choose the Right Maturity Level 125 Pick the Right Authority Level 127 Assign Teams or Individuals 131 The Delegation Checklist 132 If You Want Something Done, Practice Your Patience 133 Resist Your Manager's Resistance 134 Address People's Ten Intrinsic Desires 136 Gently Massage the Environment 136 Trust 138 Respect 141 Summary 144 Reflection and Action 144 8 Leading and Ruling on Purpose 147 Game of Life 147 Universality Classes 149 False Metaphor 150 You're Not a Game Designer 151 But...Self-Organization Is Not Enough 152 Manage the System, Not the People 154 Managers or Leaders? 156 Right Distinction: Leadership versus Governance 156 Meaning of Life 158 Purpose of a Team 160 Assigning an Extrinsic Purpose 163 Summary 164 Reflection and Action 165 9 How to Align Constraints 167 Give People a Shared Goal 167 Checklist for Agile Goals 170 Communicate Your Goal 172 Vision versus Mission 174 Examples of Organizational Goals 176 Allow Your Team an Autonomous Goal 177 Compromise on Your Goal and Your Team's Goal 178 Create a Boundary List of Authority 179 Choose the Proper Management Angle 180 Protect People 181 Protect Shared Resources 183 Constrain Quality 185 Create a Social Contract 186 Summary 188 Reflection and Action 188 10 The Craft of Rulemaking 191 Learning Systems 191 Rules versus Constraints 193 The Agile Blind Spot 196 What's Important: Craftsmanship 198 Positive Feedback Loops 200 Negative Feedback Loops 201 Discipline * Skill = Competence 204 Diversity of Rules 206 Subsidiarity Principle 208 Risk Perception and False Security 209 Memetics 211 Broken Windows 215 Summary 216 Reflection and Action 217 11 How to Develop Competence 219 Seven Approaches to Competence Development 221 Optimize the Whole: Multiple Levels 223 Optimize the Whole: Multiple Dimensions 224 Tips for Performance Metrics 227 Four Ingredients for Self-Development 229 Managing versus Coaching versus Mentoring 231 Consider Certification 233 Harness Social Pressure 235 Use Adaptable Tools 237 Consider a Supervisor 238 Organize One-on-Ones 241 Organize 360-Degree Meetings 242 Grow Standards 245 Work the System, Not the Rules or the People 246 Summary 247 Reflection and Action 248 12 Communication on Structure 249 Is It a Bug or a Feature? 250 Communication and Feedback 250 Miscommunication Is the Norm 253 Capabilities of Communicators 254 Network Effects 258 Tuning Connectivity 260 Competition and Cooperation 262 Groups and Boundaries 264 Hyper-Productivity or Autocatalysis 266 Pattern-Formation 268 Scale Symmetry: Patterns Big and Small 270 How to Grow: More or Bigger? 272 Summary 274 Reflection and Action 274 13 How to Grow Structure 275 About Environment, Products, Size, and People 275 Consider Specialization First... 278 ...And Generalization Second 279 Widen People's Job Titles 281 Cultivate Informal Leadership 283 Watch Team Boundaries 284 The Optimal Team Size Is 5 (Maybe) 286 Functional Teams versus Cross-Functional Teams 288 Two Design Principles 290 Choose Your Organizational Style 292 Turn Each Team into a Little Value Unit 294 Move Stuff out to Separate Teams 295 Move Stuff up to Separate Layers 299 How Many Managers Does It Take to Change an Organization? 301 Create a Hybrid Organization 302 The Anarchy Is Dead, Long Live the Panarchy 303 Have No Secrets 305 Make Everything Visible 307 Connect People 308 Aim for Adaptability 308 Summary 309 Reflection and Action 310 14 The Landscape of Change 313 The Environment Is Not "Out There" 313 The Fear of Uncertainty 315 Laws of Change 317 Every Product Is a Success...Until It Fails 319 Success and Fitness: It's All Relative 321 How to Embrace Change 321 Adaptation, Exploration, Anticipation 322 The Red Queen's Race 325 Can We Measure Complexity? 327 Are Products Getting More Complex? 328 The Shape of Things: Phase Space 331 Attractors and Convergence 332 Stability and Disturbances 334 Fitness Landscapes 335 Shaping the Landscape 337 Directed versus Undirected Adaptation 339 Summary 340 Reflection and Action 341 15 How to Improve Everything 343 Linear versus Nonlinear Improvement 345 Know Where You Are 347 Travel Tips for Wobbly Landscapes 348 Change the Environment, Summon the Mountain 350 Make Change Desirable 353 Make Stagnation Painful 354 Honor Thy Errors 355 The Strategy of Noise 356 The Strategy of Sex 359 The Strategy of Broadcasts 360 Don't Do Copy-Paste Improvement 362 Some Last Practical Tips for Continuous Change 364 Keep on Rolling 366 Summary 367 Reflection and Action 367 16 All Is Wrong, but Some Is Useful 369 The Six Views of Management 3.0 369 Yes, My Model Is "Wrong" 371 But Other Models Are "Wrong," Too 373 The Fall and Decline of Agilists 376 The Complexity Pamphlet 377 Summary 380 Reflection and Action 380 Bibliography 381 Index 393
Jurgen Appelo is a writer, speaker, trainer, developer, entrepreneur, manager, blogger, reader, dreamer, leader, and freethinker. And he's Dutch, which explains his talent for being weird. After studying software engineering at the Delft University of Technology, and earning his Master's degree in 1994, Jurgen busied himself either starting up or leading a variety of Dutch businesses, always in the position of team leader, manager, or executive. Jurgen's most recent occupation was CIO at ISM eCompany, one of the largest e-business solution providers in The Netherlands. As a manager, Jurgen has experience in leading software developers, development managers, project managers, quality managers, service managers, and kangaroos, some of which he hired accidentally. He is primarily interested in software development and complexity theory, from a manager's perspective. As a writer, he has published papers and articles in many magazines, and he maintains a blog at www.noop.nl. As a speaker, he is regularly invited to talk at seminars and conferences. Last but not least, Jurgen is a trainer, with workshops based on the Management 3.0 model. His materials address the topics of energizing people, empowering teams, aligning constraints, developing competence, growing structure, and improving everything. However, sometimes he puts all writing, speaking, and training aside to do some programming himself, or to spend time on his ever-growing collection of science fiction and fantasy literature, which he stacks in a self-designed book case that is four meters high. Jurgen lives in Rotterdam (The Netherlands)-and sometimes in Brussels (Belgium)-with his partner Raoul. He has two kids and an imaginary hamster called George.
" I don't care for cookbooks, as in `5 steps to success at whatever.' I like books that urge you to think-that present new ideas and get mental juices flowing. Jurgen's book is in this latter category; it asks us to think about leading and managing as a complex undertaking-especially in today's turbulent world. Management 3.0 offers managers involved in agile/lean transformations a thought-provoking guide how they themselves can `become' agile." - Jim Highsmith, Executive Consultant, ThoughtWorks, Inc., www.jimhighsmith.com, Author of Agile Project Management " An up-to-the-minute, relevant round-up of research and practice on complexity and management, cogently summarized and engagingly presented." -David Harvey, Independent Consultant, Teams and Technology " Management 3.0 is an excellent book introducing agile to management. I've not seen any book that comes near to what this book offers for managers of agile teams. It's not only a must read, it's a must share." -Olav Maassen, Xebia " If you want hard fast rules like `if x happens, do y to fix it' forget this book. Actually forget about a management career. But if you want tons of ideas on how to make the work of your team more productive and thereby more fun and thereby more productive and thereby more fun and...read this book! You will get a head start on this vicious circle along with a strong reasoning on why the concepts work." -Jens Schauder, Software Developer, LINEAS " There are a number of books on managing Agile projects and transitioning from being a Project Manager to working in an Agile setting. However, there isn't much on being a manager in an Agile setting. This book fills that gap, but actually addresses being an effective manager in any situation. The breadth of research done and presented as background to the actual concrete advice adds a whole other element to the book. And all this while writing in an entertaining style as well." -Scott Duncan, Agile Coach/Trainer, Agile Software Qualities " Don't get tricked by the word `Agile' used in the subtitle. The book isn't really about Agile; it is about healthy, sensible and down-to-earth management. Something, which is still pretty uncommon." -Pawel Brodzinski, Software Project Management " When I first met Jurgen and learned he was writing a book based on complexity theory, I thought, `That sounds good, but I'll never understand it.' Books with words like entropy, chaos theory, and thermodynamics tend to scare me. In fact, not only did I find Management 3.0 accessible and easy to understand, I can [also] apply the information immediately, in a practical way. It makes sense that software teams are complex adaptive systems, and a relief to learn how to apply these ideas to help our teams do the best work possible. This book will help you whether you're a manager or a member of a software team". -Lisa Crispin, Agile Tester, ePlan Services, Inc., author of Agile Testing " This book is an important read for managers who want to move beyond `managing by hope' and understand the underpinning of trust, motivation, and the complexity that exists in nearly every team out there." -Cory Foy, Senior Consultant, Net Objectives " This book is a very accessible compendium of team management practices based on scientific research. It's not only the tremendous value in each page of this book, but also Jurgen's typical sense of humor that turns this book into a pleasant read." -Ruud Cox, Test Manager, Improve Quality Services " The very heart of software development is to get people to recognize they are in a complex system that should be managed accordingly. Management 3.0 addresses both the recognition and the concomitant transformative aspects. By so doing, Jurgen Appelo provides a bridge between theory and practice that has so far been considered too far away." - IsraelGat, Founder, The Agile Executive, author of The Concise Executive Guide to Agile " If you really want to know about Agile management, read Jurgen's book. He explains why looking for results is key to involving the team and for a great outcome. As Jurgen says, management is not simple and this book explains why. With humor and pragmatism, Jurgen shows you how you can think about management." - Johanna Rothman, Consultant, Rothman Consulting Group, Inc., author of Manage It! " In this book, Jurgen does a great job of explaining the science behind complexity and how Agile management methods have arisen from the need to manage in complex, dynamic, and unpredictable circumstances. If you're leading Agile development teams and interested in developing your management skills, this book is a must-read." -Kelly Waters, Blogger, Agile Development Made Easy! " I firmly believe that Management 3.0 will become the `Bible' of Agile management books in the decade ahead." - Ed Yourdon, IT Management/Software Consultant, Nodruoy, Inc., author of Death March " This book is not written for those who want a quick fix. This book is written for serious students who have a passion and love for management. This book is written for management craftsmen." -Robert C. Martin, Owner, ObjectMentor, Inc., author of Clean Code " Every 21st century Agile (or non-Agile) manager needs to read Jurgen Appelo's Management 3.0. With an engaging and accessible style, Appelo outlines current theories from complexity science, management, leadership, and social systems [and] then pulls them all together with practical examples. Then he throws in reflective questions to assist managers in applying it all to their current situations. Whenever I work with a manager, executive, or leadership team, I'll recommend this book." - Diana Larsen, Consultant, FutureWorks Consulting LLC, co-author of Agile Retrospectives " Jurgen takes his readers on a wide-ranging romp through system theory, complexity theory, management theory-and distills it for practical application. His book will help managers think about their work differently and expand their options for effective action in the workplace." - Esther Derby, Consultant, Esther Derby Associates, Inc., co-author of Behind Closed Doors: Secrets of Great Management " Jurgen managed to write a book that links the tons of books he has read. Although there were a few moment I did not agree with him, I loved the way this book challenged my thinking. This is the perfect book if you want to know how to create your own answers in this complex world." -Yves Hanoulle, Agile Coach, PairCoaching.net " Management 3.0 brings together the best thinking in the fields of complex adaptive systems, Agile management, and Lean product delivery to suggest a pragmatic framework for effective management in the 21st century. To be successful in the face of rapidly changing market conditions, we must create organizations that enable our people to adapt, with a minimal amount of oversight and direction. Management 3.0 gives us a roadmap for leading teams in the face of profound uncertainty. Jurgen has made a significant contribution to the field of Agile management and leadership." -Mike Cottmeyer, Agile Coach, LeadingAgile " Too many Agile practitioners ignore the realities of the real world. But in the real world Agile projects must be managed, directed, and moved forward. This benefits both the company and the team, and Jurgen has done a great job of bringing those practices into focus in a real and practical way. If you're involved with Agile software in a shop of any size, or if you're a manager (or executive) who's seen the benefits of Agile and want to bring them into your shop, you owe it to yourself to read this book." -Jared Richardson, Agile Coach, Logos Technologies, co-author of Ship It! " I had felt quite well-equipped to manage teams adopting an Agile software development approach, having read works like Managing Transitions, Leading Change, and Behind Closed Doors, until I began to read Management 3.0. Appelo's compendium works at a variety of levels: It helps novice managers with a diverse collection of easy-to-apply models, it helps experienced managers see what they need to unlearn, and I assume it will help even expert managers adapt to contemporary styles of leadership and governance. Management 3.0 has opened my eyes to the vast world of modern-day management whose surface I see I have only scratched so far, and I look forward to Appelo's work guiding me along as I learn." -J.B. Rainsberger, Consultant, Coach, Mentor, jbrains.ca, author of JUnit Recipes " Software projects are complex living systems; knowledge loss happens as soon as you manage them. Make your life easier, minimize the loss: Read this book!" -Jacopo Romei, Agile Coach, co-author of Pro PHP Refactoring " For people who `get' the message, this book may prove to be as valuable as Darwin's book On the Origin of Species." -Florian Hoornaar, Entrepreneur, Octavalent