Easy Agile Podcast Ep.11 Dave Elkan & Nick Muldoon on building Easy Agile

"It was amazing to talk with Ida and Ulrika from TietoEVRY, they are truly leading the way in sustainability" - Rebecca Griffith

Rebecca and Caitlin are talking with Ida and Ulrika from TietoEVRY, about big picture sustainability and the role of business in supporting sustainability initiatives.

🌍 Implementing sustainability in daily business operations
🌍 The role of technology in advancing sustainability
🌍 Ensuring your sustainability & DEI report doesn't turn into a stagnant document
🌍 Framing challenge in a way of opportunity
🌍 Getting the whole team on board

An important listen for everyone, enjoy!

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Transcript

Caitlin Mackie:

Hi, everyone. Welcome to the Easy Agile Podcast. I'm Caitlin, marketing coordinator at Easy Agile.

Rebecca Griffith:

And I'm Beck, team and operations assistant at Easy Agile, and we'll be your host for this episode. Before we begin, we'd like to acknowledge the traditional custodians of the land from which we broadcast today, the worthy, worthy people of the Tharawal nation and pay our respects to elders past, present and emerging. We extend that same respect to all aboriginal and Torres Strait Islanders people joining us today.

Caitlin Mackie:

Today, we're joined by Ida and Ulrika from TietoEVRY. Welcome. Thanks for joining us.

Ida Bohman Steenberg:

Thank you so much for having us.

Ulrika Lagerqvist Von Unge:

Thank you.

Rebecca Griffith:

It would be great if we could start with some introductions. Ida and Ulrika, could you tell our listeners a bit about yourselves and your role at TietoEVRY?

Ida Bohman Steenberg:

Yes, of course. I'm Ida and I'm heading up the sustainability team at TietoEVRY since four years back. And Ulrika?

Ulrika Lagerqvist Von Unge:

Yeah. I work within the sustainability team as a sustainability manager also here at TietoEVRY.

Rebecca Griffith:

Excellent. Thank you. Thanks for the introductions. Let's jump in. For our listeners who might not be familiar with TietoEVRY, can you give us a bit of an overview about what the company does?

Ida Bohman Steenberg:

Yes. Sure. We are a company based in the Nordics, like very, very far away from sunny Australia. We are a tech company. We provide different solutions. For instance, in software, cloud and infra and also business consulting. I think nowadays, we are the biggest tech provider in the Nordic, at least.

Caitlin Mackie:

Sustainability is a huge part of TietoEVRY. You really have a robust sustainability game plan and your strategy for 2023, which highlights your key priorities for ethical conduct, climate actions and creating an exciting place to work for your employees. Can you elaborate on the sustainability game plan for 2023?

Ida Bohman Steenberg:

Yeah, we would love to. The sustainability game plan is our long term plan that we created last year. We were actually two companies merging into one last year. We had different legacies. X Tieto were good at some things and X EVRY were good at some things, but of course, we had lots of challenges too. We had to sit down and really try to find out what should be our focus going forward and not only actually to build upon what we already have, but also look at the major challenges out there to see like, where do we want to be and what role do we want to have? We created a game plan that is two-folded. We have like the responsible operations that is the traditional sustainability work that you would find at any organization that takes sustainability seriously.

We have the ethical conduct where we have business, ethics, and the corruption, cyber security, privacy, human rights, responsible sourcing, for instance. Then, we have exciting place to work, which is more like HR related because we're people companies, we have to be very good at this in order to attract the right talent and also to keep the talent that we have. We have major challenges when it comes to bringing in and keeping women in our sector, for instance, so we have to be very good at diversity and inclusion and also employee experience, of course, to make this a fun place to work at. Then, of course, climate action may be the one thing that people think about most when they think about sustainability due to the emerging climate crisis. We work a lot with that, of course, and also circular economy and our take on that.

That is like the foundation for us that we have to be very good at like our license to operate, and we work throughout the value chain with these topics, but then because we are a tech company, we also wanted to see what can we do to not only improve our own sustainability performance, but foremost our customers? What's due, I think, and what really stands out for TietoEVRY now is that we have this really, really strong business focus going forward for this sustainability game plan. I was thinking maybe Ulrika could take over and explain and elaborate a little bit about the upper half of the circle.

Ulrika Lagerqvist Von Unge:

Yeah, exactly. What we identified when we were developing this strategy or long term plan was that some of our biggest impacts also actually resides among our customers. We have a lot of capabilities and we have a lot of customers, so why not combine those and see where do we have the biggest opportunity in terms of actually helping our customers to become more sustainable? We developed a methodology where we investigated our capabilities, our customer pain points, our customer opportunities and landed in four broad impact opportunities. That's where we have business opportunities in making our customers sustainable. Those are new focus areas within our sustainability long term plan, where we engage with our own business to drive these areas and develop together with our customers to create positive impact on people, planet and societies.

Ida Bohman Steenberg:

I think also if I may add to that, Ulrika, so we set the plan to do that, and we had of course, a lot to build upon. We had lots of good reference cases, but of course, we needed to pin it down to get the buy-in from management. Also, of course, get the resourcing. We started with identifying those areas where we think that other people have, or other customers or stakeholders have impact opportunities, which means a business opportunity for us. We must not forget that, but in order to actually deliver in a good way and at the speed that our customers require, we also had to create a consultancy team that could help in the delivery organization because the customer requirements become... The pressure was so high.

For our little team group sustainability, we couldn't really handle everything, so we created something that we call the sustainability hit team, which is a consulting team consisting of consultants that knows data and sustainability within business consulting. Ulrika, you have been given also... You have the role of leading this group, perhaps you would like to say something more about that group?

Ulrika Lagerqvist Von Unge:

Yeah. Yeah. Sure. Well, this is a group of people that, just as Ida said, they have this kind of expertise, combining sustainability knowledge with IT and technology. We work together to identify both ongoing projects that might be related to sustainability in one way or the other that we perhaps can scale and create synergies, but we also work to identify new opportunities, having our ears towards the ground and listening into what do the customers actually want to have. Then, we take in these opportunities and try to see how we can develop them to actually support our customers. Hopefully, this team will just continue to grow and us with our other efforts, become very integrated in all our business operations. That is at least our aim, so the responsibility lies where the responsibility is sort to say.

Rebecca Griffith:

That's wonderful. Now, I think you've kind of touched on this in a broader sense, but in the TietoEVRY annual report, you talk about implementation of sustainability into daily business operations. What are some other key ways that you're doing this?

Ulrika Lagerqvist Von Unge:

Yeah. If I can start, Ida?

Ida Bohman Steenberg:

Sure.

Ulrika Lagerqvist Von Unge:

I think one of the most important things is to involve everyone from the beginning in what we actually should focus on and what are the most important topics in terms of sustainability, both for all our stakeholders, but also for our business, so that we actually give the ownership of sustainability to the organization. Not so that they feel it comes from the side or from above, but it's actually something that is relevant and that the organization owns. That means that each and everyone has the responsibility to also contribute to our joint targets that we also have involved the different business leaders and parts of the organization in setting. I think that ownership is a keyword here to actually enable integration of sustainability in the operations. Ida, do you agree?

Ida Bohman Steenberg:

Yeah. No, but the group sustainability, our group, we are a small team consisting of specialists with long experience, but we are only so many, so we have to have a very integrated way of working in order to make this fly. What we've been focusing on a lot since many years back is to get it integrated. For instance, if we look at responsible sourcing, which is crucial how we handle our supply chain. We work closely together with a chief procurement officer. The sustainability goals that we have that are public and that we disclose every year in our annual report is just as much his goals as it is our goals, so we really get some power behind driving it and we get the results that we need in order to move forward. That is one thing. Then, as Ulrika explained earlier in the last question about the sustainability hit team, how we also now have taken this step further to really approach the business in a more structured way that we have done before. As I said, we had very good reference cases and we have a portfolio of sustainability related services, but now we're doing this in a much more structured manner because of the market, the demands that has increased so much.

Caitlin Mackie:

Yeah. That's great. I think what you mentioned, having that structure helps with that company buy in and getting everybody on board and realizing that it's everybody's commitment and it's like a journey you're all on together. Yeah. I think that's great. Something that's often talked about is the overlap between business and sustainability and the role of the business in addressing some of the major challenges we face as a society. I think so many look to clearly distinguish their responsibility and draw a line somewhere, but I'm not so sure that's the right approach. TietoEVRY certainly recognizes they have an important role to play and really pave the way towards carbon neutrality. What's your approach to this?

Ida Bohman Steenberg:

Okay. First of all, I think there must be an overlap or there must be like, if you are a company like we are, we cannot do things that we don't think also is good for us, like financially long term. That is the beauty of sustainability. If you have good and long term targets, it's also support the growth of the company in financial terms, so we always have both those perspectives in mind, creating strategies going forward. For us, we work both for our own operations when it comes to climate change to decrease our carbon footprint, obviously, so we are changing. We have renewable energy in all our data centers and offices. We are now currently at 80% and approaching 100. It's going to be difficult. The last percent is always the most difficult ones, but we have a good development as for now.Then, of course, we work super hard because this is the, I think number one question that our customers is asking for, ways to manage their own carbon footprints. Here we are strong in data, of course. Do you want to add something around that?

Caitlin Mackie:

No, but I think that the first reflection that you had that we have this financial perspective also when developing the sustainability plan, it's important because I think that what we see is that... Our business is doing business. Yes, of course. But if you don't do it right, there will be no business on a dead planet, right? So that you have to have the long term perspective where you take into account all the different aspects. It's not only the financial, because they're also interlinked. I think that also the risks that are connected to, for example, climate change for business operations, so the inbound risks that the surrounding is posing to us are becoming more and more clear. I think that it's also becoming evident that if you don't have sustainability integrated in your operations, you will no longer have a license to operate in 2021 and beyond. I think it's just a smarter way of doing business, to be honest.

Rebecca Griffith:

We can all acknowledge that climate action is one of the biggest global challenges for our generation. In recognizing that this is one of your key priorities to address, how do we take these challenges and frame them in a way of opportunity?

Ida Bohman Steenberg:

Well, this is the beauty of being a tech company. We have the luxury of not having lots of goods that we need to take care of cotton or food or so, so we can go straight to the point, I think, and start to listen to what our customers need and create services and solutions that support them in their journey to decrease their carbon footprint. It sounds very easy when I say it like this. It's not that easy, of course. It requires a lot of hard work and everything, but that's what we should do. I think that when you look at the crisis that is emerging, the tech industry is also seen by the other industries as the great enablers. I think that we have a key role to play. I think that we have a responsibility to our stakeholders to be there and to be in the forefront.

I think that's what we've been doing. For instance, for the last year, the guest team has been working on a very interesting solution called the sustainability hub, which actually addresses this spot on. Would you like to...

Ulrika Lagerqvist Von Unge:

Yeah. Yeah. Definitely. I totally agree with you, Ida. The tech industry, it's really an enabler and that also means that there's a lot of business opportunities. As you said, the sustainability data hub voice, one of our responses to these kind of business opportunities that we see out there, so what happened was that we were sitting and discussing and realized that one of the biggest obstacles for companies to actually integrate sustainability into decision making, into risk management analysis, et cetera, is the lack of data as you have now produced your own ability report, the big hurdles that comes with actually collecting the data for that report, it sits in shattered data sources.

The collection is often manual. The data might not be in the right shape. Most companies actually collect the non-financial data once a year for their annual sustainability report. That means that when you have that data, you are actually steering through the rear view mirror because you are not steering proactively by taking fresh data into account when you take your decisions or plan your operations. What we did was that we started to develop a solutions, which builds on automating the data collection of sustainability data by helping customers to identify where does the data sit? How can we actually automate it? Is it via automation, via IoT solution? Who will use the data? Which KPIs and metrics do we want to map it against? How often do we want the data to be updated? Then, visualize it in real time? A modern way of an ERP system for ESG data, you could say, so that it is actually possible to equate non-financial inform and with financial information.

That should give the opportunity for companies to treat the data in the same manner and actually integrate sustainability into the decisions that they take. For example, let's think about the impact of us going from working at the offices to now working hybrid. What are the actual impacts? Can we see that the sick leave has increased or decreased? How has the carbon emission been impacted by us not traveling back and forth to the offices? If we have that data, we could also use that to decide whether we should continue with hybrid working, or if we should force our employees to come back to the office, or if everybody should be working from home. If you can get hand of that collective view of the activities that you take, you could also make more holistic and informed decisions. That's one response kind of how we try to treat sustainability as a business opportunity and identify which are the pain points that our customers have in terms of co-creating a sustainable future, and where can we tap in into that? That is the kind of beauty, as you said, our industry.

Ida Bohman Steenberg:

It is.

Rebecca Griffith:

Really interesting looking at it in real time, as you said, as opposed to a retrospective assessment of the data, which really, you can't change.

Ulrika Lagerqvist Von Unge:

Exactly. Yeah.

Ida Bohman Steenberg:

Yeah.

Rebecca Griffith:

What's the point in waiting another 12 months to then look at it again when you have completely done [crosstalk 00:18:32]?

Ida Bohman Steenberg:

Yeah. Both sustainability.... Yeah. Sorry. Both sustainability and tech is moving extremely fast. I think we need to work like this. I think customers are going to require... We see more and more before they wanted us to report once a year, but now so many of our customers, they want us to report different types of data related to the solutions or our delivery to them on a quarter basis. The more we can have real time data, I think it's going to be the new normal very soon.

Ulrika Lagerqvist Von Unge:

Me too. That will be a huge game changer for companies. When the data is there, you can get it black on white. There is no excuse for taking bad decisions, right?

Caitlin Mackie:

Yeah. Yeah.

Rebecca Griffith:

Quite exciting.

Caitlin Mackie:

Exactly. I don't know about you, Beck, but I'm definitely sitting here being like, "Wow," at all, like this would've been super handy 12 months ago.

Ulrika Lagerqvist Von Unge:

Yeah.

Ida Bohman Steenberg:

It's out there. Yeah.

Ulrika Lagerqvist Von Unge:

Yeah.

Ida Bohman Steenberg:

It's on the market, so you're more than welcome.

Caitlin Mackie:

All right.

Ulrika Lagerqvist Von Unge:

I think that's also typical from sustainability that you have to understand that the solutions to all of these kind of complex problems, they can't be solved by any actor. We need to work in ecosystems and everybody will have to bring their expertise to the table. Then, we can get things to actually be solved. I hope that that logic will also impact other areas so that we more try to cooperate instead of having the cake ourselves, because then there will be no cake left over. That would be sad.

Caitlin Mackie:

It's so, so refreshing to hear you say that. I think for so long businesses have always had this idea about, "Oh, competition," and like, "Keep what's yours. Keep it to yourself. We're going to succeed in this area." But moving into this space, it's just not about that anymore. It's about how we can collaborate together to reach those solutions. I think that's so powerful.

Ida Bohman Steenberg:

For sure. No. Sustainability is horizontal work. As an organization, as an entity, as a company, we are not stronger than our closest stakeholders anyway. Our performance is very much reliant on their performance.

Ulrika Lagerqvist Von Unge:

I think it's so interesting also because since we come from that kind of background, Ida and I also always working across all silos, across all kind of company functions. We also get a special role in our company because we don't have the legacy of working in silos, so we just totally break them all the time because we're not aware of them. That's just what is needed to be able to get the job done. I think that it's really interesting to see how the organization actually appreciates that.

Ida Bohman Steenberg:

Yes. Sometimes, they don't.

Ulrika Lagerqvist Von Unge:

Sometimes, they don't. Exactly. Sometimes, they don't. Yeah. That's true. Yeah.

Ida Bohman Steenberg:

But we have our battles internally. If you're a sustainability professional working in a big organization, you must be very prepared to have those tougher discussions as well, but we all get there, not always on time from our perspective, but that's the way it has to be. Fearless and just...

Ulrika Lagerqvist Von Unge:

Stubborn.

Ida Bohman Steenberg:

Stubborn, and don't be too bothered about silos or hierarchies or so, because then you will never get anything done.

Caitlin Mackie:

I wanted to highlight or expand on the idea of opportunity and the fact that we constantly need to be exploring new and better ways of doing things so that we can move forward. It would be great to get your thoughts on the role of technology in advancing sustainability. I know you've touched on it, but it'd be great to elaborate.

Ulrika Lagerqvist Von Unge:

If I start, then you can build on it.

Ida Bohman Steenberg:

Sure.

Ulrika Lagerqvist Von Unge:

I think that some of the business opportunities or the solutions that we can develop are cross industrial. For example, the need for data and the need to get hold of it and to visualize it and to be able to act on it, is of course, something that all companies in all industries could make use of. But then, I think that for many solution, they are industry specific. For example, logistic. They need certain solutions to be able to optimize their logistic, their rooting, or to better pack their lorries and trains, et cetera. But I think that... There are both this industry specific solution and this cross sectional business opportunities stuff that you have, and also one of the hidden gems within the IT sector is the side effects of digitalizing services or solutions.

It's also important to understand that even though a solution might not be developed and deployed for the use of mitigating or climate change, for example, the actual impact of its implementation might lead to less carbon emission. Let's think about we have a solution that is called patient engagement. It means that you could engage with your doctors and nurses over your phone, which means that you don't have to take the public transportation or your own car to the hospital or to the medical clinic, which of course saves that transportation and in turn, saves carbon emissions if you travel with something except for an electric car. Many of the digital solutions actually have that positive hand print impact or effect, I would say. Of course, the opportunity of expanding on those is also massive and to identify them, perhaps it's the possibility. If you have a patient engagement app, could you use it for other purposes for other users to increase the impact.

Rebecca Griffith:

At Easy Agile, one of our goals was to establish a baseline and publish our very first sustainability and diversity report, which I believe we've shared with you. We'll also share that report as well as the TietoEVRY annual report in the show notes for our listeners. But what advice would you give to organizations to ensure that these kind of documents don't turn into a stagnant document or a mere check of the box exercise? How do we use these reports to encourage conversation and continually seek ways to improve?

Ida Bohman Steenberg:

Okay. I get so many thoughts now. First of all, keep up with an upcoming frameworks. Don't get stuck in all the good old GRI for instance. In the European Union, so we are now approaching the taxonomy reporting or TCFD or so on. Go for those new ones. Also, of course, everybody has to do the ground work. You have to do your stakeholder engagement, the dialogues, the materiality analysis in order to know that you focus on the right things and so on, and you have to have really concrete goals and action plans and KPIs and everything, so you can measure your performance against the goals that ultimately what sustainability reporting is about. But then, I think the opportunity with reporting, because reporting can be a little bit boring too, in a sense, and it can feel stagnant in a way. It is that it's such an important tool in the strategy work.

This is where you get the attention from the leaders like, "What goals are we going to have and how did we do and so on?" That's where you can have the good discussions or you can also raise the ambition level as you go along. That I think is really crucial. Use it as a strategy tool as well, and then never get stuck in like, "Oh, yeah. It's good. We met our targets. We moved 3% forward or whatever." Don't think so much about that. Think about lie what are the major challenges right now? What is your role as an organization? No matter what organization you are, find your way to be part of the solution instead. We have that discussion sometimes internally. People are like, "Oh, but you're doing so good. You have a good results and so on."

But for me and Ulrika and our sustainability professionals, we're like, "Yeah. Okay. We move forward. That's good." But from a greater perspective where we are reaching the tipping point for the planet, so we feel other pressure in order to move forward faster. Don't end up in like, "Yeah. We move forward. We're keeping the pace." Full on power ahead, and speed is of essence going forward.

Ulrika Lagerqvist Von Unge:

Yeah. No, I fully agree. I think that's really good reflections to hook the sustainability reporting up on the challenges to understand. What are the purposes? What are we actually trying to achieve by this report? We are trying to contribute to minimize the negative impact and to increase the positive impact, and the sustainability report is a tool for that. I think another thing that is really important is to actually also engage with the organization to get them define their own targets and their own metrics to report on, so that they feel ownership. For some of the areas that we have in our sustainability report, when we have an engaged partner within the organization that themselves have ideas on targets, we develop their own KPIs.

They feel that, "I really believe in this. I want to work with this." Then, the follow up and the continuous reporting is much easier than while we have perhaps other parts of the organization where there isn't so much clear targets internally, so that the sustainability report is more felt like something that is done on an annual basis just collecting the data, but not making use of it actually. Just create that commitment and build on the company's own targets and own KPIs that are useful. Then, of course, sometimes if you do report according to a sustainability framework such as the GRI standards, which is commonly used in Europe, then you, of course, need to report according to some of the metrics in that standard, but then add your own key guides, your own metrics, because that will make the organization feel engaged, I could say.

Ida Bohman Steenberg:

Yeah. Yeah. Basically to summarize that, so three things, do the groundwork according to the upcoming and fresh frameworks, and then two, use it as a strategic tool to have those important discussions with management and make it a part of the overall strategy, so you don't end up with the sustainability strategy and an overall strategy. Then, three, be bold. Look at the challenges and not only what's doable or keeping the trend or whatever. Those three things, I think is important to have in mind.

Rebecca Griffith:

Spot on.

Caitlin Mackie:

Yeah. I love that. I think that's great advice, especially the idea of you're mapping out what you're doing internally and what that looks like, but being able to take that step back and say, "Okay. But what does this contribute to in the big picture? What are we actually helping and what are we doing to move in the right direction?" Something that I often think about is things like the UN sustainable development goals and looking at those and being like, "Well, what can we do to of map where we are at and where can we offer? What can we be doing in this space that helps reach those targets?" Yeah. Great advice. I love it. But I think just to wrap us up, our last question for both of you is looking forward, what keeps you hopeful?

Ida Bohman Steenberg:

It keeps me hopeful. Well...

Ulrika Lagerqvist Von Unge:

For me, I think the younger generation, to be honest. I think that seeing my brothers' daughters that are teenagers, or to see [inaudible 00:31:19] and the commitment that she's able to steer up, I think that gives me hope that things will move faster in the future. I think that's positive.

Ida Bohman Steenberg:

Yeah. I also second that. I think I visited the school last week with students like 18, 19 years old, and I've been doing that every year for a couple of years now and I always ask them, "What do you know about sustainable? What do you think about it?" Before, it was like, "Yeah. The environment or recycling maybe," but now they were like, "Yeah. The UN SDGs..." So the level of knowledge has increased so much. There is huge interest and when I gave them, "What can you do on a practical level if you want to live a more sustainable life?" They were like, "Yeah. Don't buy a new party cup for the Friday night. Borrow from your friends, or there are these sites. I can text you these sites where you can borrow dresses and stuff like that." They are doing it in real life in such a good way where they combine technology and sustainability, so they're much more tech savvy than we are. I was very inspired by that.

Ulrika Lagerqvist Von Unge:

They're also willing to actually sacrifice stuff. It's like, "No, we don't fly. We don't do this because we would like to have a future to live in." I think that that is something which we are so comfortable and so used to having a certain lifestyle, but they are perhaps not and they are challenging that lifestyle that we have been having, which has also led to where we are today.

Ida Bohman Steenberg:

I think also to add to that, I think that finally the leaders of our countries are getting it, at least getting close to getting it. I think things are changing, so that's good, but my hope stands to the young ones still.

Rebecca Griffith:

It's nice to feel that it's becoming a normal part of consciousness for the newer generations where it's something that we had to learn to appreciate and respect and to take action on, but it seems to be a part of their upbringing and a way of life now, which is great.

Caitlin Mackie:

Well, I think that's great. I think it's great to leave the episode on such a high and leave the audience with a bit of inspiration moving forward. Thank you both for taking the time to chat with us and sharing your expertise with the Easy Agile audience.

Ida Bohman Steenberg:

Thank you so much for having us. It was fun to talk to you, and it's nice also to talk about the perspectives from the Nordics and from the tech industry. Thank you very much.

Rebecca Griffith:

Thank you.

"Great convo with Dave & Eric! Key takeaway: revamp Easy Agile's org structure representation. Exciting stuff!"

Nick Muldoon, Co-Founder and Co-CEO of Easy Agile, is joined by Dave West, CEO, and Eric Naiburg, COO, from Scrum.org.

In this episode, Nick, Dave, and Eric unpack the current agile landscape, discussing the role of the agile native and emphasizing the importance of building connected teams by flipping the hierarchy and putting leaders in supporting roles.

They emphasise the importance of empowering the people closest to the problem to make the call, and ultimately creating an environment for success to happen.

We hope you enjoy the episode!

Share your thoughts and questions on Twitter using the #easyagilepodcast and make sure to tag @EasyAgile.

Transcript:

Nick Muldoon:

Hi folks. Welcome to the Easy Agile Podcast. My name's Nick Muldoon. I'm the co-founder and co CEO at Easy Agile, and today I'm joined with two wonderful guests, Eric Naiburg, the Chief operating officer at scrum.org, and Dave West, the chief executive officer at scrum.org. Before we begin, I'd just like to acknowledge the traditional custodians of the land from which we broadcast today, the people of the Dharawal speaking country. We pay our respects to elders past, present, and emerging, and extend the same respect to all Aboriginal, Torres Strait Islander and First Nations people that are joining us today. So gentlemen, thank you so much for making some time. We really appreciate it.

Eric Naiburg:

Thank you.

Nick Muldoon:

I guess I'd love to just jump in and, Dave, I've got a question for you first and a follow on for you, Eric. I'd love to just get a quick assessment, Dave, of the Agile landscape today and I guess the shifts that you may have seen now that we're out of these COVID lockdowns, these back and forth, COVID lockdowns.

Dave West:

Yeah, it's interesting. So I've been the CEO almost eight years here at scrum.org, and it has changed a bit during those eight years. I think what we're seeing and is a, dare I say, the deployment phase, mass deployment of these Agile ways of working and this Agile mindset throughout industries and throughout all organizations. It's more than an IT software development thing. And I think that that was accelerated during COVID. What's interesting though is many of the characteristics of Agile that became so important during COVID, particularly around empowered teams, particularly around trust, particularly around the hierarchy and the reduction of hierarchy, some of those things are being challenged as we return to the new normal, which some people would rather was just the normal. So I am seeing some of that. However, generally Agile is here, it's here to stay. I think the reality is that most knowledge workers, particularly those knowledge workers dealing in complex work are going to be using some kind of Agile approach for the foreseeable future.

Nick Muldoon:

And last week you... Was it last week? I believe you were in Paris for the first face to face?

Dave West:

[foreign language 00:02:37] I was and it rained the entire time actually, Nick. So yeah, I spent a lot of time inside in Paris.

Nick Muldoon:

Well, what was the sentiment from the Scrum trainers there, from the conversations they're having?

Dave West:

Yeah, it was interesting. We talked a lot about at scale, enterprise adoption, the challenges. It is funny that the challenges are challenges that you expect, and most of them are about people, legacy systems, people status, power position. We talked a lot about the challenges that teams are getting in these large complicated organizations. That continues to be the conversation. There is, obviously, this is Europe, they're very close to Ukraine and the conflict there. So there's definitely some conversations about that. We have six Ukrainian trainers and also about the same number of Russian trainers as well. So that's always a conversation. And then there's a general downturn of the economy that was also being talked about.

Layoffs are happening throughout Europe, and particularly in the technology sector, but I think that's growing to some extent. Vodafone just announced today that they were laying off, it's about 6,000 employees, and they're one of the biggest telecommunication companies in Germany, for instance. So there was definitely some of that, but so if you add enterprise, you add conflict uncertainty, you add economic uncertainty, those three things will come together. But what was funny in it is that throughout all of this, they were incredibly upbeat and excited. And I think because they're talking to people that they've never spoken to before, they're talking to people about how Scrum is a natural way of working, talking about the challenges of empowered teams, empiricism, continuous improvement.

And I had some really exciting conversations with trainers who were like, Yeah, well we're doing this in this aerospace company or this electric car supplier in Germany or whatever, or this financial services startup that's using blockchain for the first time. And of course they're using Agile. And so it was funny. It was almost as though all of those things, though there were the backdrop, it was still incredibly positive.

Nick Muldoon:

So this is interesting, and I guess if I reflect on the background for both of you, Eric, I'm looking at, you two have worked together from rational days-

Eric Naiburg:

A few times.

Nick Muldoon:

... a few times, but the prevalence of the Agile... I would describe you two as Agile natives and it sounds like, Dave, you've got your tribe there in Paris last week that are Agile natives. And I guess Eric, for you, what's the sense around the people that you are interacting with from a leadership perspective in these companies? Can you identify the Agile natives? Yeah, I guess is it an easier conversation if you've got Agile natives in leadership levels?

Eric Naiburg:

It's definitely an easier conversation if they're there. Sometimes they're in hiding, sometimes they're not Agile natives masquerading as Agile natives as well, which always makes it a little bit difficult because you have to peel back that onion and peel through who are they and what's their real agenda. I was talking to a CIO last week, and he was talking about the typical CIO lasts two to three years. So what is their real agenda? What are they trying to achieve? And Dave mentioned the people part of this, and people often become the hardest part of any Agile transformation or working in an Agile way. People want to protect themselves, they want to protect their turf, they want to do the things that they need to do to be successful as well. So you see that as talking to leaders within organizations, and they want to do better, they want to improve, they want to deliver faster, but they've still got that pressure. Organizations, at least large organizations, haven't changed. They still have boards, and they still report to those boards, and those boards still have their agendas as well.

Nick Muldoon:

You're making me recall a conversation that I had, this is several years ago, but on a trip through Europe, and it was with the Agile native, that was the Agile practice lead and probably wasn't masking, probably was legitimately an Agile native, yet they were talking about the mixed incentives for their, maybe not their direct leader, but the VP further up. And it was actually a, I don't want to say a zero-sum game, but there was some kind of fiefdom thing going where the various VPs would fight for resources, people, whatever, because that would unlock further bonus. But at the end of the day, it was not optimizing the entire financial services company. Are we still seeing that today?

Dave West:

Oh, very much so. In fact, a colleague of ours says, "Science used to have a saying, science progresses one funeral at a time." And I think Agile definitely has some of that, not funerals hopefully, but retirements.

Nick Muldoon:

Retirements

Dave West:

Retirement.

Nick Muldoon:

Yeah.

Dave West:

Yeah. The reality is that when you don't have incentives aligned, where you don't have teams aligned to those incentives and leadership aligned to those consistent incentives, then you're going to always be dealing with some challenges. What's so frustrating is we all know the industrial revolution, and particularly the recent revolution of mass production and oil, which just happened in the deployment phase just after the second World War, was enabled by changing working practices created by people like Ford and Deming and all of these people. We all know that. The digital revolution is happening around us. It may even pass us if you believe the AI buzz that's happening. We may be put to the side and computers may just take over, but this digital is happening, and you are in with leaders and they're like, "Yeah, totally respect that. We are going to be a hundred percent digital. We are an airline, but really we are a digital company with wings."

They describe themselves in this way, and then they don't want to challenge the fundamentals of how authority, how value is managed, how risk is made transparent, how governance is, it happens, how funding is made and planning, et cetera. They don't want to challenge any of those assumptions. They like that the way it is. But we are going digital. It is ironic that it still is happening. However, that isn't totally hundred percent. The organizations that get it, the organizations that have leaders that are either insightful, either motivated, or maybe they want to write a book or something. Maybe their reasons aren't always as clear, but those leaders are dragging these organizations into the 21st century.

Great example. Proctor and Gamble, Gillette. Gillette, the latest exfoliating razor. I can see you haven't used it, unfortunately, Nick, with your rather handsome beard. So yeah. Anyway, I use it a lot, as you can tell. The exfo... Was built using Scrum and Agile. This is Proctor and Gamble, an ancient, okay not ancient, an older organization, but really has got it. They realize that if they want to keep up with their customers, their partners, their suppliers, they need to work in quite different ways. And so it isn't roses, but there are roses in the garden as it were.

Eric Naiburg:

And it goes beyond, when you think of that organization, you think of what Gillette has done, is it goes beyond traditional Agile thinking. Traditional Agile thinking, we think software, and this is engineering, this is manufacturing, this is bringing together marketing because in those types of organizations, marketing drives what the product's going to be, and then engineering figures out how to deliver that product and so on. So it's really bringing together the whole organization into how do we deliver something, and deliver it together. I think that's one of the big things that we're seeing. And one of the big changes that Agile helps to drive is that team. So you talked about incentives and team incentives, that's a piece of it, but it's team ownership. It's team togetherness.

It is that ultimately they all feel accountable, and bringing that accountability together as a team versus, and I think even... So my wife's in manufacturing and it's always... She's on the R and D side of it, and complaining about the marketing people. You have those conversations of, "Well, they don't realize what it takes to actually build this thing. They just have the dream." And by bringing them together in that team, and really they're having their daily scrums, they're planning together and they're having those hard conversations respectfully, that starts to build that team and build them in a way that they're able to actually deliver faster and more what the customer wants.

Dave West:

Can I just lean in, I'm sorry, we just taken over here a little Nick, but I just want to lean into something that Eric said around it is all about the teams. One of the fundamental problems we see in many organizations is hierarchy. Because if you get these massive hierarchies, obviously there's, "I've got to be in control of something. I need to take ownership of things. I need to be off irresponsible for certain things." That's how hierarchies work. And so that often undermines the ability of a team to effectively function. We need to flip that so that these hierarchies become, instead of being on top of the teams, they need to be underneath the teams supporting them. Think of them as those support trusses on bridges or whatever. You have some fabulous bridges in Australia and in Melbourne and in places like that and in Sydney.

So think of it upside down, holding up the teams. But that means, going back all again to incentives again, that those leaders need to understand what they're responsible for in this new world. And they're doing it for very good reason. They're doing it because the teams need to be, they're closer to the problem, they need to be empowered to make the decisions in real time based on the data, the information they have, they need to have clean line of sight to the customer. All of those things are the reason why a hierarchy is just too slow to respond and too bureaucratic. So we need to flip it and enable those teams. And that's a huge challenge.

Nick Muldoon:

I Love this. You two have given me something to ponder. So for the first six years of the company's life, of Easy Agile's life, we did have a very simple team page, and Dave and I as co-CEOs were at the bottom of the page. And then you had the leaders of the pillars. So you had, at the time, Tegan was the head of product, the leader, and they sat on top of Dave and I, and then the team sat on top of that. And it's interesting, I'm actually trying to reflect now, it's probably only in the last 12 or 18 months as we went through 40 people, that that page or that visualization has flipped. I've got an action item obviously to come out of this, thank you gentlemen, to actually go and flip it back because it's a communications mechanism, but if we actually put ourselves at the foundation in this supporting role for supporting the folks, that sets the tone, I imagine, for the team members in how they think of themselves and maybe that accountability piece as well, Eric.

Eric Naiburg:

Yeah. Yeah. That's interesting because sometimes it's those little things that change how people think and feel. I use a lot of sports analogies when I talk and meet with people, and especially with where Dave was talking of empowering the people closest to the problem. We have to do the same in sport. If we have to wait for the manager to tell us to pass the ball, it's never going to happen. We've got to allow the people to make decisions and make those decisions on the field. We need to apply that to business as well. Allow the people who are closest to the problem, closest to what's happening, make those decisions within the business as well.

Nick Muldoon:

So if we come back to Proctor and Gamble, and we don't have to rabbit hole on it, but they're one of the large, long-lived companies, and I don't know about their approach, in particular, but I think about GE, and GE had their internal training university program, and they were training their leaders, training their managers how to manage, training their leaders how to lead. How does a Proctor and Gamble go about shifting that conversation internally, and what's that timeframe? Because presumably you've start with someone that's on a team. Do you have to elevate them over time through the hierarchy of the company?

Dave West:

It is interesting. I'm fortunate to spend maybe because we're both British people living in Boston, I'm fortunate to spend quite a lot of time with, and there's videos on our site with this, by the way, interviews with Dave Ingram who runs R and D for male grooming, it's called, in the Gillette part of P and G. And the case study is out there. So I talked to him a lot about how you drive it in a huge organization where they've got everything to lose. They've got products that are amazing, they've innovated, those products are the products that you put into your shopping cart as you walk down the aisle. They don't want to muck that up. Let's be frank. If suddenly, because of some innovation, there's no razors on the shelves, then I, as a board man need a razor. So I will buy an alternate product, and it's possible that then I'll always buy that product.

So they've got to be very, very careful. They've got more to lose. So we talk a lot about how you manage change and it's all of the above. What he's done very smartly is he's empowered the product owner role or the person, the glue role, whether it's using Scrum or something else, and he's really invested in these change agents in his organization, and he's definitely led by doing, he's been very honest and open about that, and very clear that he doesn't have all the answers and he's looking for them to help him during this, which isn't perhaps what you'd expect from a traditional organization where-

Nick Muldoon:

The leader might need to feel that they have the answer to all of these questions.

Dave West:

Exactly. And he's done a really, really good job of doing that. And primarily because he says, "Well, my success is ultimately their success, so if I can make them be a little bit more successful, there's more of them than me, so let's make it work." Which I think is an unusually honest and very insightful view of it. So he's driven it predominantly through product management ownership areas. He's then provided a support environment around that. He's then definitely advertised the successes. He's spent a lot of time building cross-functional teams. The thing that Eric was talking about. And really been very careful working with their leadership. If you're material science, there's a whole department, if there's marketing, there's this whole channel thing that they have. Basically working with their leaders to create the environment for success to happen. And I don't think it's easy. I think there's many surprising roadblocks along the way, and I can't speak for him on this, but he's taken that divide and conquer approach, focusing on that catalyst role.

Nick Muldoon:

Because you, obviously, you're providing a lot of training for various, well, I guess people at various levels in these companies. And obviously it's a far cry from having a CST and a CSM and a CSPO certification going back a decade, decade and a half. What's the uptake around the leadership training? And what does that look like, Eric? Is there renewed interest in that at the moment or are people demanding more of that leadership training? Is it fit for purpose for today's leader?

Eric Naiburg:

So I think to a point it is. We're certainly seeing growth in the leadership training. Matter of fact, Dave and I were just looking at those numbers earlier this week or yesterday, I guess. Today's [inaudible 00:21:29]

Nick Muldoon:

Are there are any numbers you can share with us?

Eric Naiburg:

It's hard to share the exact numbers, but we're seeing double-digit growth in number of students taking our leadership classes. Both how do you measure, so our evidence-based management classes, as well as our leadership training, but that also only goes so far because a lot of those folks, depending on how high up, especially in the organization you go, aren't willing to take lots of time out to take such training. So a lot of it happens in that coaching. They're hiring the executive coaches or the Agile coaches that are in there. The scrum masters that are in there are actually working to help coach those folks. And a lot of it's less about the training and more about the mindset shifts. So if you look at our Agile leadership course, a large part of it is spent on getting people to think differently. And really some of it's hit you over the head type of activities, where it really helps to drive those points across of, "Wow, I need to think differently. I need to work differently. I need to treat people differently."

Nick Muldoon:

Differently.

Eric Naiburg:

It's that, and we're seeing good success with that because especially when that light bulb goes off for folks, and that light bulb that goes off saying, "Wow, this is different." We have some exercises in our classes that really get you thinking and get you... There's one, for example, where you're thinking you're doing the right thing for the customer, and you're thinking you're doing exactly right until it kills the customer, because you didn't necessarily think through the whole. It's, "Well, this is what the customer wanted, so we need to do it, but maybe I should have got together with the team and let the team make decisions." I'm going a little extreme, but-

Nick Muldoon:

No, I appreciate it.

Eric Naiburg:

... it's those sorts of things that we have to change. And a lot of what we do in the course is educate leaders on what those teams are going through, and what the individuals on those teams need, and the type of support that they need, not how do you manage those teams, not how do you manage those people. But how do you empower and enable those people to be successful?

Nick Muldoon:

I want to just rewind for a second, sorry.

Eric Naiburg:

Killing people.

Nick Muldoon:

It sounded like there's a friction point in actually getting these leaders to take the time out of the office to go and get some education.

Eric Naiburg:

There is, yes.

Nick Muldoon:

Is that correct?

Eric Naiburg:

Yeah.

Dave West:

It's incredibly hard if you're at a large organization, in particular, when your schedule is overlapping meetings continuously eight to nine hours a day for them to take that moment to step back. Everybody, I believe very strongly, Nick, that everybody needs to take time to invest in their own personal and professional development. And that time is not a waste. Ultimately it is an incredibly good investment.

Nick Muldoon:

Yes.

Dave West:

We know-

Nick Muldoon:

It's great ROI.

Dave West:

Totally. Even if it just resets you, even if you have that moment of clarity because of it. it's not a surprise that people like Bill Gates go on retreat every three to six months and he takes his big bag of books-

Nick Muldoon:

Books.

Dave West:

And he goes off grid for a few days just to reset. I think that that time is incredibly effective. But what's interesting is, we are under, in America in particular, and I'm sure it's true in Australia, it's certainly true in England, where I'm from, motion is more important than outcomes. It's all about the motions. If you look busy, you're not going to get fired. And I think to some extent we learned that in school. I don't know if your parents said to you or maybe you got your first job. I was working on a delicatessen counter at the co-op supermarket, and I remember there was an old worker there, turned to me, he goes, "Whatever you do, when the manager walks by," Mr. Short-

Nick Muldoon:

Look busy.

Dave West:

... was his name. And he was everything that name implies. "Mr. Short walks by, look like you're doing something, start cleaning something, otherwise he'll take you off and make you do provisions, and you don't want to dealing with that milk, it's rancid." And I remember that. Look busy. And I think we've got a lot in our culture. I try to take time every week. I book, for instance, my lunch hour, I book it and I always try to do something in it. I try to watch a TED talk, read something, just to clear your mind to think about something different. I think that time is incredibly important. However-

Nick Muldoon:

Get exposed to some new perspective, right?

Dave West:

Exactly. Even if it means, even if the stuff you're watching or whatever isn't that relevant necessarily. Sometimes that lack of relevance is exactly what you need because your mind does something.

Nick Muldoon:

A mental break.

Dave West:

Exactly. And however in corporate America, and I think that's corporate in general, that doesn't happen. People are overly leveraged, they're incredibly busy. They have to attend these meetings, otherwise their profile is diminished. And I think that's at the detriment of the organization and the company. Here's a question, Nick.

Nick Muldoon:

Yeah.

Dave West:

Who have you helped recently?

Nick Muldoon:

Who have I helped recently? I spend most of my time, and I get most of my energy out of coaching conversations with individuals. So on my [inaudible 00:27:35] profile, I've got futurist very high up, and so I love exploring what is your life and your career going to look like in five years time? They're the conversations that I really get jazzed by.

Dave West:

And that's what everybody... Who have you helped is more important than what have you done.

Nick Muldoon:

Yeah.

Dave West:

And I think you need to balance that.

Nick Muldoon:

I pulled up these stats because I thought you might find them interesting. We did a survey last year of a subset of our customers. And we had 423 teams. So it's not a huge sample size, but 423 teams. And the reason I think about it is because there's a lot of, what was the statistic here? So just to give you a sense, most common sprint duration is 14 or two week sprints. Most teams have six people that are involved. Fibonacci for story pointing, an estimation. 10% of these teams achieved what they set out to achieve at the start of the sprint. And so the teams, this 10% of teams, the subset, they did add work into their sprints, but teams that were unsuccessful, rolled work from sprint to sprint.

And so perhaps what it indicated to us is that there are teams that over commit and under deliver, and in fact 90% of them, 90% of the survey teams, it would appear that they over commit and under deliver. And then there are teams that are, maybe, leaving time, Dave, maybe for some education or some spare time in their two-week sprint. And they actually happen to pull on more work and they achieve that. And I'm just thinking about that from a sense of, are 90% of these teams trying to be busy or are they trying to be perceived to be busy? Even if it's at the expense of actually delivering?

Eric Naiburg:

Or are they even pushed into it? It's interesting, there's a question on our professional scrum master one, our PSM one test that often people get wrong. And I think it's a great question, which is, I'm paraphrasing because I don't remember it exactly, but it's essentially how much of the sprint backlog needs to be filled coming out of sprint planning. And a significant number of people say it needs to be complete coming out of sprint planning. Which goes in the face of Agile and Scrum.

Dave West:

Exactly.

Eric Naiburg:

Because we don't know there. There's that uncertainty. All we need is enough to get started, and once we get started, but I think people are fearful of, "Well, we've got two weeks, we need to be able to plan those two weeks and we better be able," and this is some of that top-down pressure that we talked about. "Well, we need to show that we've got two weeks worth of work here and that we're not sitting around, so let's fill it up." And those are some of the misnomers about Agile and Scrum. "Well, it's a two-week sprint, we need to plan two weeks." Well, no, we don't. We need to have a goal. Where are we going to get to? How we achieve it is going to take time because we're going to learn as we go. As a matter of fact, the scrum team that I'm on right now, we were running a three-week sprint, and two weeks in we've actually achieved our goal. And now we're able to build upon that goal. And we already delivered on that goal a week early, which is great.

Nick Muldoon:

Do you think, Eric, that there's a fear from leadership that if people haven't got two weeks worth of work teed up, that they're just going to be twiddling their thumbs?

Eric Naiburg:

I don't know that it's a fear from leadership. I think it's a perception that the workers have of what leadership is thinking. I think it's more that. And I think it's the, "Well, we said we've got two weeks," and they are going to ask us, management's going to say, "When will you deliver?" I don't know that we'll ever get away from that when will we deliver question, even though we continually try to get away from that answer. But they're going to ask it. So if they're going to ask it, I better be prepared, which means I better have a whole bunch of work laid out. And that just breaks everything that we teach. It breaks everything that we think in Agile.

And all I need in planning is I need a goal, and some idea of how I'm going to get there. And over time let's revisit it and let's continue to revisit it and go to it. But it amazes me how often that some of the answers to that question are, you have a full sprint backlog go coming out of sprint planning, you have enough to get started. I forget what some of the others are. But it amazes me how many times when I review tests people put the full back sprint backlog where it even says, right in the scrum guide, "You're going to inspect and adapt throughout the sprint." Well, how do I inspect and adapt if I've already decided what I'm going to do?

Nick Muldoon:

Who's the onus on? If it's not actually the leadership's wish that you fill up all your time and you operate at a hundred percent capacity, then is the onus on the leader to make it known or is the onus on the team to engage in the conversation?

Dave West:

It's the leader.

Eric Naiburg:

Yes.

Nick Muldoon:

Yeah. Yes, both. Yeah.

Dave West:

I think it's more the leader because I think they have to create the environment where the team actually can challenge it, and actually have that very clear conversation. What worries me about your stan is the fact that I don't... The first few sprints. Yes, maybe you get overly excited, maybe you fill the sprint, which you don't need to. Maybe you're just keen. That's okay. The thing is, what happens on sprint three or four or five, when the same pattern is manifesting itself over and over again. That's worrying. And I think that speaks really clearly to the lack of help the team's having. Whether you call it an Agile coach, and in Australia, I think the Agile manager is a phrase that's used, or whether it's an Agile, or whether it's a scrum master, whatever. Scrum.org has a scrum master.

And the reason why we have a scrum master isn't because we don't know scrum, though there's some days it might be questionable. But cobbler's children, all that stuff. But the reality is, we do know Scrum, we talk it, we breathe it, we love it. But having somebody that steps back and says, "Hang on, Westy, what have you done there? Have you forced encouraged the team to fill the sprint? Have you set them an unrealistic goal? Have you listened to them and asked them the questions? Or have you told them what you want? And what do you think that's going to do?" I know that I have, because Eric and I fund the sprints, as it were. When we go to a sprint review and we say stuff, because a sprint review is ultimately there to provide feedback to the team, to allow them to inspect and adapt for the next sprint.

You can't change the past, but you can change the future based on feedback. If I go in with, "Oh, well that's rubbish and you should do this, and what about that?" Yeah, it's going to have an impact. So ultimately we have to think about, as leaders, what we bring, and also have somebody often helping us to be the leader that we need to be because we get excited and we get enthusiastic and we get, "Oh, you can do this and that? Let's do it. That sounds awesome." And sometimes that can...

Eric Naiburg:

And that's part of why I say it's both. That's why I said the yes. It's on the leader, but the leader needs to be reminded of that. The leader needs to be supported by that, especially by the product owner and the scrum master. The product owner has to be able to say no. The product owner has to... I talk about happy ears and most CEOs and senior leaders are-

Nick Muldoon:

Happy ears?

Eric Naiburg:

Yeas. Most CEOs and senior leaders I've worked with have what I call happy ears. They come from one customer or they talk to one person and heard something that-

Dave West:

Do this.

Eric Naiburg:

... that one person might have thought was great. And next thing you know, they're putting all these new requirements on the team. And I've worked in many startups and big companies where, even at IBM, that happened. And the product owner needs to be able to say, "Whoa, hold on. That's a great idea. Let's think about it. And we'll put it on the backlog, we'll think about it later. But let's not distract the team right now from what we're trying to do and what we're trying to achieve." And that's why I say it's both. It's not just on the leader. You're not going to fully change the leader. You're not going to fully change them to not have those exciting moments. And that's what makes them entrepreneurs. That's what makes them who they are.

But the team needs to be able to push back. The leader needs to be accepting of that pushback and the scrum master and the product owner, as well as others on the team, need to be able to have that pushback. I remember very, very early in my career, I worked for a company called Logicworks. We had a data model, a little data modeling tool called Irwin. And I remember sitting in my cube, and the CEO had just come back from a meeting with one client, and comes over, and I was a product manager-

Nick Muldoon:

Eric, do this.

Eric Naiburg:

And starts talking about, we need to go do this now, and blah, blah, blah, blah, blah. It's like, well, hold on. It's like, but blah, blah, blah said they'd buy it. Well one, did you actually talk to the people using it? Or did you talk to somebody way up here who has no idea how they're actually using the tool? Which the answer was talking to CEO to CEO conversation. And just because they'll buy it, will anybody? But you have to be able to have those conversations. You have to build that trust with the leader from the team, and from the team to the leader, to be able to have those pushbacks and be able to say, "That's an interesting idea. We'll take it under consideration for the future, but right now we have a focus. We've got a sprint goal and we're not going to destroy our sprint goal because you got excited about something."

Dave West:

As you can see, Nick, I have a really hard time getting any of my ideas into our organization because they ask things like this. So annoying, Nick. They say, "Okay, that's great. Is that more important than these five things that are currently driving our product goal?" I'm like, "Ugh, what do you mean? I can't have dessert and main course and an appetizer? I have to pick one that's just so not fair." And they said, "Well, we could spin up another team and then that requires investment. It's going to take time." And I'm like, "Oh gosh, don't you hate it when you have intelligent, smart teammates?" It's just hard.

Nick Muldoon:

Dave and I have definitely, so Dave Elkin, my co-founder, he comes from an engineering background and I come from a product background. And we've definitely noticed in the last, again, probably in this timeframe, in the last 18 months, as the team's grown or through a certain inflection point, in the past, we would quite come comfortably have conversations about what about this idea and how about that? And we'd try and tease things out, and we'd tease them out with the team, but there was no expectation that that stuff would get picked up. And then we had few examples where teams would go and take on and think that they needed to look at this stuff and we're like, "Oh, no, no, no, sorry, we should clarify that we just wanted to get a brainstorm or we wanted to get a thought out of our head, and we wanted some perspective on it, but this should absolutely not mean that you should chase it down." And so the language and how we've had to approach things like that, or activities like that, has certainly changed.

Eric Naiburg:

I've seen that a lot lately-

Nick Muldoon:

[inaudible 00:39:50] Inflection point.

Eric Naiburg:

... probably in the last two or so years. And I think maybe because of remote, it's made it even worse, because you don't get all the emotion and things. But I've definitely seen a lot more of that, of, "Well, I'm just," I've been told this doesn't translate, "but I'm just spit balling and I'm just throwing an idea out there just to have a conversation." And because the leader said it, people think it's fact and that they want to do it. And all they were doing is, "Hey, I heard this thing. What do you think?"

Nick Muldoon:

What's your perspective?

Eric Naiburg:

Yeah, exactly. And I think as leaders, we have to be very careful to understand the impact of what we're saying, because we may be thinking of it as, "I'm just throwing it out there for some conversation." Somebody sitting at the desk just heard, "Oh, they want us to go do that." And I've seen that a lot in companies recently, including in ours, where the way something's said or what is said is taken on as we must do this versus, "Hey, here's an idea, something to noodle on it." So you're not alone, Nick.

Nick Muldoon:

I love it. Hey, Eric, Oregon, that's a great place to call it. That is, and you have given me, you've both given me a lot to noodle on, so I'd like to say thank you so much from our listeners and from the crew at Easy Agile for joining us today. I really appreciate it. It's been wonderful having you on the podcast.

Dave West:

Well, thank you for inviting us. We're really grateful to be here, and hopefully some of this has made sense, and yeah, let's continue to grow as a community and as a world working in this way, because I think we've got a lot of problems to solve. I think the way we do that is people working effectively in empowered ways. So let's change the world, man.

Nick Muldoon:

I love it. Okay, that's great. Thank you.

In this episode, I was joined by Leandro Barreto - Lead Software Engineer at Miro.

Leandro is responsible for helping engineering and product teams to be more productive through metrics and KPIs with a focus on increasing their operational efficiency. Before moving to Europe, Leandro worked for an Atlassian partner company in Brazil as Head of Technical Sales.

In this episode, we spoke about;

• Ikigai - what is it and how do you achieve it?
• The benefits of OKRs
• How can we combine agile, Ikigai and OKRs?
• How Ikigai can help agile teams achieve great results and stay motivated

I hope you enjoy today's episode as much as I did recording it.

Transcript

Robert O’Farrell:

Welcome, everyone, to the Easy Agile Podcast. We have an episode today with Leandro Barreto who is a lead software engineer at Miro. I'm your host for today, Robert O'Farrel. I'm the Growth tech lead at Easy Agile. Before we kick off this podcast, I'd like to acknowledge the traditional custodians of the land from which we broadcast today, the people of the Duruwa-speaking country. We pay our respects to Elders past, present, and emerging and extend the same respect to all Aboriginal and Torres Islander, and First Nations people joining us today on the podcast.

Robert O’Farrell:

Leandro currently works as a lead software engineer at Miro where his responsibility is to help engineering and product teams to be more productive through metrics and KPIs with a focus on increasing their operational efficiency. Before moving to Europe, he worked for an Atlassian partner company in Brazil and acted as a head of technical sales with the mission to increase the service offers in Latin America. Welcome, Leandro. It's great to have you here today.

Leandro Barreto:

Yeah. Thanks, Rob. Thanks also for the Easy Agile for the invite. It's a pleasure to be here today.

Robert O’Farrell:

Fantastic. You're here to talk about Ikigai, objectives and key results or OKRs in Agile, so let's kick it off. Ikigai, what is it? Can you give us a brief or a long explanation of what it is?

Leandro Barreto:

Yeah, of course, of course. So, Ikigai I use it to say is a philosophy of life that means like a reason for being or the meaning of life. So, the world Ikigai originates from a village in Southern Japan, where the average life expectancy of people is over 100 years old. So, Ikigai is basically divided in four components. The first, things you love. Second, something that you are good at, then something that pays you well. And finally, something that the worlds need. So, when you put it all together, then you have the Ikigai, but this is not easy. So, let me explain a little bit of each of these companies.

Leandro Barreto:

So, the first thing is something that you love, something that makes you be present, something that you must ask yourself what do you really enjoy in doing? What makes you happy? What holds your intention that makes you lose time and forget about time? So, for example, reading, dancing, singing, painting, learning, teaching, et cetera. So, maybe it's a little bit difficult to answer right now, but understanding and seeking what you love must is fundamental so that you can have a healthy balance between learning, putting it in practice, testing, failing, trying again, and keep the circle repeating itself.

Leandro Barreto:

So, an example that I can give you is, for example, I had a jujitsu teacher that no matter the day, he was always training. And one day, I remember I got my arm hurt. And in the next day, I had a message from him like 6:00 in the morning, he was asking if I was okay. And I was waking up and he was texting me like, "Hey, are you okay? Are you going to be able to train today?" And I was like, "Whoa, take it easy, man." This is very funny because our class is 6:00 p.m. And he was punctually at the tatami or dojo. I don't know the English word for that.

Robert O’Farrell:

Yeah, dojo. We have dojo. Yeah.

Leandro Barreto:

Dojo. Awesome. Yeah. And he was always punctual. And after the classes, he always said that he wants to get home earlier after the classes because he has private classes. So, from morning to night, he always keeps training and you can see the passion in his eyes when he talks about jujitsu. "It's a passion for me". A little bit exaggerated.

Robert O’Farrell:

Something that definitely got him up in the morning and kept him going throughout the day to the late evening, by the sounds of it.

Leandro Barreto:

Exactly. Yes. And then, you have the second component, which is something that you are good at. Something that you can always improve with yourself. So, for example, what you are really good at. It's quite hard to answer, but what the people say is that I'm do... something correct or what they say something positive that what I do. So, for example, I remember the book Outliers by Malcolm Gladwell that says that usually, you have to spend 10,000 hours in something practicing to be good at.

Leandro Barreto:

So, don't take it as an obstacle but as a motivation to keep going, and understand this part of what you are good at. It's a good way to improve. And the third part is what pays you well? So, money is what... Some people say that "Hey, money don't bring... It's not... how can I say that?

Robert O’Farrell:

Money doesn't bring happiness?

Leandro Barreto:

Yeah, exactly. But it puts a roof in your head. It makes you provide a good life for your family. It makes you travel. It makes you have a hobby. So, according to Maslow, for example, one of the bases of human beings is to start thinking about security. So, we have to have this security in order we can improve as a person. So, money helps you to achieve it. Yeah. So, find something that makes your life as comfortable as you desire to, as you wish to. So, otherwise, you'll always be looking for something that you never had. So, for example, time.

Leandro Barreto:

So, you will spend so much time thinking how can you have more money? And here's the glitch, you will never be paid because you will be stuck on your daily basis thinking on how to get money instead of how to improve your skills to get money. Right? And then, you have the what the world needs. So, here, the idea is to find a proposal for what do you do and what is value to the society, your proposal. And sometimes it's quite difficult to find precisely because of the plurality of positions and responsibilities that we have nowadays. And even more today with the full expansion of technology that every month we have new positions to be filled by companies that needs different type of skills, soft skills and hard skills.

Leandro Barreto:

And here, the keyword is to serve. So, I will give a personal example. For example, one of the things that I missed most when I was a young teenager was having someone who could help me to explore the technology so I can get a job. So, it was in the early 2000 and it was quite hard.

Robert O’Farrell:

Yes, very much so.

Leandro Barreto:

The internet is starting, everything is new.

Robert O’Farrell:

People on dial-up, internet was slow.

Leandro Barreto:

Do you remember that sound like prshh?

Robert O’Farrell:

Oh, yeah. It comes to me in my dreams I think. I heard it so many times in that era.

Leandro Barreto:

My family and my friends, they wasn't in the IT field. So, there is no one to help me that. So, I had to learn it by myself. Seems impossible. But it took me time to learn it and enter in a company with a good position let's say that gives me money and the possibility to learn much more faster. So, since 2013, I dedicate part of my time to teach young people, acting as a mentor to help them enter in this market so they can learn new skills. I can open paths for them, put in contact with the right people, people which is going to be important for them, and all aiming to accelerate their dev development and giving them the opportunity.

Leandro Barreto:

And this for me is very meaningful because I'm helping those who don't have any references also, and sometimes don't have a chance. And the more I serve them, the more I earn and I grow with them. So, I came across like when I was introduced to Ikigai for example, another personal example.

Robert O’Farrell:

Sorry. Before we get to that, just reiterating. So, the four components, so there's something that you really lose time in doing, something that you get into the flow of doing very easily. And then, the second component is the thing that you are very confident in doing, something that you do quite well. The third one, being something that pays you well, and the fourth one, being something where there's a need for it. So, just reiterating that. That's correct?

Leandro Barreto:

Correct. Correct.

Robert O’Farrell:

So, I guess getting to that, our second question that like for yourself, you can apply obviously in a business sense, but in a personal sense, what's been your journey there, and do you believe you've achieved Ikigai, I guess, would be my next question?

Leandro Barreto:

Yeah. Well, actually personally, I have some things that's very clear in my life. I'm still not there, but let's say that I'm in the process.

Robert O’Farrell:

Work in progress

Leandro Barreto:

Exactly. Work in progress. So, I have clear goals and I have clear in my mind where I want to go in a few years, so I don't get disencouraged if the weather is cold or warm, if the stock market goes up or down. And the only thing that I focus is to be 1% better than I was yesterday. And this provides me a security that prevents me to wasting time and things that doesn't make any sense or simply doesn't matter for me in the future. So, I take my career very, and also my personal life very serious on that point. So, yeah, let's say that work in progress.

Robert O’Farrell:

I love that word security that you use there. It draws a parallel, I think, to a word that we also use when it comes to that plan that we have, which is that focus element, making sure that we do the things that matter. Do you think that it's also given you a sense of focus too on what you take on and what you say yes to and what you say no to with regards to your personal and professional development?

Leandro Barreto:

Yeah, absolutely. Absolutely. When you know where you want to go, it's more easy to say yes or no to something that came up to you. Another personal example that I remember was something like 12 years ago, 12 to 13 years ago, my focus was to learn Java, for example, Java programming. Because I know in the midterm, I would like to be a Java architect. So, I have to improve my skills on that programming language.

Leandro Barreto:

So, during that time, the company that I was working was making some changes and then they asked me, "Hey, I know you are good at Java. You are learning, but we need you to start learning this another language, Ruby on Rails during that time. But you have to at least for the moment, forget Java." And then, I was like, "Mm-mm. No, no."

Robert O’Farrell:

It's not what I want to do.

Leandro Barreto:

Exactly. I totally understand that was a company's decision. But during that point, it begins to separate my focus on what I want to achieve from the company's purpose. So, it doesn't make any sense to continue on that company. I asked to leave. And again, best decision ever, because then I entered in another company that I learned so much. And then, in three years I became a Java architect.

Robert O’Farrell:

Yeah. That's a fantastic example of that focus. I'm quite curious out of those four components that you mentioned before, what have you found quite easy, I guess, to achieve or to at least get clarity around personally? And what have you found more challenging?

Leandro Barreto:

Good question. Good question. Yeah. So, learning something that you don't know, it's always a challenge but when you have a desire or a clear focus where you want to go in a few years, things start to be clarified for you. For example, in 2014, I did extension of my MBA in United States to learn about entrepreneurship and things that for me was really, really important. But totally new field, I have no idea what to expect but it provides me the vision to... I always had the idea to have my own company in other words. So, I know that in short term, not in short term, but in midterm at least five years to four years, during that period of time, I would like to have my company.

Leandro Barreto:

So, after I did this MBA, I came back to Brazil, and then I started to put myself in situations that makes me learn these new things. And in 2016, I open up our restaurant in Brazil. So, when you have an objective, things, and it's quite funny because the universe starts to help you.

Robert O’Farrell:

You make your own luck in a lot of regards too, I think.

Leandro Barreto:

Yeah.

Robert O’Farrell:

So, if you had somebody who was looking to learn about Ikigai and came to you for some, for your experience and your advice in how to apply it to their lives, what do you think your advice to someone would be who doesn't know much about it?

Leandro Barreto:

Good question. Great question. So, one tip that I, or advice that I can give is, and I think that this is fantastic and I apply it in my daily basis. Don't waste time in small decisions on a daily basis because every day we have thousands of decisions to make and our brain capacity is limited daily, at least daily. So, there are some times that we feel like mentally exhausted after, for example, you have six meetings in a row in a day. In the end of the day, you were totally tired. Right? And I once read that the greatest minds don't waste time thinking on small things, for example, Steve Jobs always wore the same jeans and t-shirt every day. And he didn't need to think to use it. He just took it and reuse it.

Leandro Barreto:

So, during that time, what I did in 2018, more or less when I was presented to Ikigai. So, what I did, I lived alone in an apartment in Brazil. So, I decided to change it, my life. What I did, I donated my entire wardrobe of clothes with things that I almost never used. And I was only wear eight t-shirts and two jeans.

Robert O’Farrell:

Quite a collection.

Leandro Barreto:

So, I avoid making those small decisions, especially in the morning, because in the morning, you have a clear mind and you don't have to spend those in small things, because if you think on small things, probably it'll grow during the day. So, for example, another thing that helped me a lot is plan the week. So, Google Calendar exists to be used, right?

Robert O’Farrell:

Yeah. Yes.

Leandro Barreto:

So, everything that is very important for you, events or plans that need to be done, put on the calendar. And also, talking about the clothes, separate your clothes a day earlier before you go into bed. So, you wake up more calmly, you drink your coffee calmly, and you focus your efforts on what really matters. And once you have freed your mind from thinking about these small things, you can focus your time and energy on learning new things or getting things done the way it should be. And whether it's learning a new language or a new skill, or you can also read a book in the morning because you have free time, let's say. You can focus on what matters to you exactly.

Robert O’Farrell:

Yeah. I'm quite curious about this aspect of finding something that you really get consumed by. And I think in this digital age, we have so many things that distract us. Our phone has a lot of notifications where we have a lot of information at our beck and call and sometimes it can be overwhelming to know what we should focus on, and I guess what we can really get passionate about. I'm curious, do you have any insight into that as to how people can find that thing that they just lose themselves in and that they're super passionate about?

Leandro Barreto:

Yeah, absolutely. Absolutely. Another thing that worked very well for me is to turn off all the notifications.

Robert O’Farrell:

Get a dumb phone just so you don't have that level of notifications coming through. Yeah.

Leandro Barreto:

Yeah. Because I read... I don't remember where exactly, but your brain took something like 15 minutes to focus on something. So, if you don't spend 15 minutes of your time, focus on what needs to be done. You cannot focus at all. So, what I usually do, I turn off all of the notifications from my phone. So, the principal one, I just took it off and I don't care about notifications. Also, one thing that I noticed is that when I, for example, when I had Apple Watch. In the Apple Watch, even if you turn the notifications on or off, the iPhone, it keeps doing on the phone. Oh, my God. So, this is one simple device that I can say, because otherwise, you will enter in a black hole in a community and social media and news, and then you'll lose yourself.

Robert O’Farrell:

Yeah. I found that personally with the Apple Watch, having something on your wrist that vibrates is incredibly distracting. And I was always very big champion of technology, but that was one area where I just moved away from it, went back to a mechanical watch, just didn't want that level of interruption when I was trying to focus on things. So, I think it's a really key insight to focus.

Leandro Barreto:

Yeah. In addition to that, when you, for example, when you are in a meeting with someone and you are actually expecting a message for, I don't know, maybe your family, and then it pops up on your phone and you are in a meeting, and then you take a look into the watch and the people notice that you are not paying attention because you are looking into watch. No matter why you are looking, if it's a message or et cetera, you do provide a psychology... How can I say that in English? Oh, my God. Psychology interference. Let's say it.

Robert O’Farrell:

Yep. Psychological interference.

Leandro Barreto:

Interference. Yeah. Thank you. That will provide a negative influence to other people. So, yeah, that's why you made the right choice to move into the-

Robert O’Farrell:

Yeah. I've heard some people that will actually ask people to leave their phones outside when they go into meetings or leave their laptop outside so that you're present and that you are engaged in the conversation. Because I think even the mere fact that you have your phone near you is a distraction. Even if there's no notifications, its presence is enough to ensure that you're not 100% present in the conversation, which I think is quite interesting from how we focus and our dependency on that rush that we get or that endorphin rush of getting that ping on the phone or that notification.

Leandro Barreto:

Exactly.

Robert O’Farrell:

I thought we could move on to talk about objective and key results. Or for those people that may not have come across this term before, OKRs are collaborative goal-setting methodology and used by teams and individuals to set challenging and ambitious goals with measurable results. So, to break that down further, the objective part of the OKR is simply what is to be achieved and the KR part of it, which is key results, benchmark and monitor how we get to the objective. So, getting to the heart of setting successful OKR is establishing it clear and compelling why. Is there a secret formula to creating a powerful why to get everyone on board?

Leandro Barreto:

Yeah. Great question. So, OKRs, it's all about action and execution. And I think the secret formula, let's say it's having a well-defined proposal and also everyone engaged in seeking the result as the main objective. So, companies in my opinion are made of living ecosystem called human beings. And every human being has its own desires, proposals, goals. And en suite, unite all of the objectives of both the companies and all the people together. That's when we can achieve best results. And that's why some companies are focused on the cultural fit.

Leandro Barreto:

And this is one thing that I see growing a lot in the HR area, companies and persons that must, which the cultural fit must match. It basically means that the person has the same values and desires to achieve results as most of the people in the company or what the company understand as their force that they need to keep growing as a company. And I have seen many technically good people failing in selection, in process selection, simply because they don't adhere to cultural fit. And this is much more than a psychological issue because you don't know how to say like people that cannot work as a group.

Leandro Barreto:

So, it's better for the company to hire someone who can play as a team instead of someone who is like the lonely wolf that keeps working alone. And the results is for only him and not for the entire company. So, yeah, this is the classic example that I can see. And also, one thing that is good for that is nowadays, our fault tolerance is quite good because today at least serious companies don't punish failures. So, they even encourage you to learn.

Leandro Barreto:

And the Spotify models, I remember they say like, "Fail fast and learn fast." So, that was the fail wall was born. So, where everyone shared their failures and they can learn as a team, as a clan, guild. And this is quite beautiful because you can create such an environment where everyone can learn and grow together because humans can fail. And this is normal.

Robert O’Farrell:

Do you think that-

Leandro Barreto:

And-

Robert O’Farrell:

Sorry, I'm just curious. Do you think that companies are more focused around the why these days, or that why has become more important in their measure of success? And you mentioned cultural fit and I love this idea that more companies are much more sensitive to what is their company culture and how does this person work within, or are they going to fit into this company culture? Because the existing people in that company are aligned around their why. And if someone is coming in and doesn't align with that, they understand the impact on their success. So, do you think that company's becoming more and more aware of this and more sensitive to this?

Leandro Barreto:

Yes. I think they are. So, as far as they have the right people in the right environment with the right proposal, no matter the why they will find it blindly, let's say. I think it's like a sense of behavior for the people. Because if you see someone from, as your peer, let's say, that's running to an objective that was defined by the company. And you are aligned with your values and goals. You will follow it.

Leandro Barreto:

So, this is good for both persons as human beings and also for the company because they show the proposal, they show what is the why we must be, for example, the first selling company for our product in the market, why, and then people who is working on it, they will take it as a personal objective. And this is when you make the connection between the company's objective and the people's objective because when the company grows with this why, with this north star, the people will grow together with you.

Robert O’Farrell:

I completely agree. I'm quite curious too from the opposite point of view. Do you think that employees are becoming more aware of understanding the company's why before they join the company? Because we've seen with the pandemic that a lot of companies are now moving to this remote recruitment. And so, the possibilities for employees to work for a much broader range of companies now have increased. And do you think that employees are now finding better wire alignment when they're looking for new jobs because they do have a broader pool to play in per se?

Leandro Barreto:

Absolutely. Absolutely. I think that's why Glassdoor is so popular. So, when you are invited for a meeting or for an interview, you can see everything from the company. Like from salary to feedbacks from the people who works there or is not working anymore. And then, you can see if there's a match. And this is quite funny because like 10 years ago, which is not so popular, we are blindly thinking to work, let's say, in a position like software development. So, I have to be a software developer. I have to be a...

Leandro Barreto:

So, it was more focused on the position instead of the purpose. And now we are seeing the opposite. Now, the people are looking for the purpose, what the company can help me achieve. And it's more like a win-win-

Robert O’Farrell:

Situation.

Leandro Barreto:

... situation let's say, situation. Exactly.

Robert O’Farrell:

Yeah, I couldn't agree more. And I think also a lot of people are really focused on how the company takes care of them as a person. They're very sensitive to the fact that they are committing their time to that company. So, there has to be that alignment around professional goals and personal goals. And I think that it's a great shift to see, to come back to the OKR side of things. I'm curious about what benefits do setting OKRs within an organization give or provide?

Leandro Barreto:

Yeah. I think OKRs, they are very, very simple. They do not require a specific knowledge to implement it. So, when you have the people committed and engaged to the goal and the why they want to achieve, then the implementation and using of OKRs became naturally. So, company can benefit because he's straight to the point. He's like, "Objective, it's the direction. And the key results are yes or no." So, keep it simple. That's the main benefit of the companies.

Robert O’Farrell:

Yeah. I love that. The fact that there's no gray area. You either succeed or you don't, and there's a lot of clarity around that as well.

Leandro Barreto:

Exactly.

Robert O’Farrell:

I think that with that aspect of OKRs, in your experience, have you seen OKRs set that tend to stretch the team further than they normally would be stretched in terms of what they attempt to achieve than companies that don't set OKRs from your experience?

Leandro Barreto:

Yes, but I think it matters on what the company, what's the culture of the company, because I have seen companies that is setting OKRS in the good way, but I have seen companies that is setting OKRS because it's fancy. When it's fancy, you don't have a clear objective. You don't have a clear vision. You don't have the right people. And then, it's very tricky and you will never achieve what you are proposing.

Robert O’Farrell:

I'm curious to dig into that a bit more to get your insight on that. Because as somebody who would come into a company that might be setting OKRs, how would you determine that the OKRs are probably not as clearly defined or that they're implementing a process that don't necessarily have the depth or the belief in doing? So, how would somebody come in and determine that?

Leandro Barreto:

Good question. Good question. So, the idea to have a objective is like to have something that can be... How can I say that, can provide you like a, not a fear, but it's going to be like, provides you a direction for, but the people who sees it, they think like, "Hey, this is quite hard to achieve I think." So, one example for Google, for example. So, Google in 2008, they tend to launch the Google Chrome. And as I remember, the first year was like, "Hey, this is the objective." Like, "Hey, we want to launch the best browser in the world." And the key result is the number of users because the users will tell you if the browser is good or not.

Leandro Barreto:

In the first year, they didn't achieve the key result. But the second year, they rise at the bar again, like, "Hey, now we are much than double the objective." And the second year, they still didn't achieve it. But it was very, very close to it. And the third year, they pass it. So, keep in mind that the objectives must be something that seems like a challenge, a huge challenge, but at the same time, it's very inspirational.

Robert O’Farrell:

Inspirational.

Leandro Barreto:

Inspirational. Thank you so much. For those who are working on it. So, I think this is most of the point.

Robert O’Farrell:

Yes. And what do you see as some of the pitfalls when setting OKRs for an organization?

Leandro Barreto:

Awesome. Awesome. So, the pitfalls from my perspective, there are some common mistakes when implementing OKR. So, for example, as I said, not having a clear vision of the goal, so people cannot engage. And especially when you have senior engineers because they don't want to work in something that don't bring purpose for them. Right? So, this is the first one, for example. The second one could be like a system that supports the monitoring of the results. So, you cannot follow up, which is quite important to keep following it if you are, we are close to achieve it. Yes or no? So, a good point.

Leandro Barreto:

And one thing that seems quite strange, but it's very, very common in the market is that your product is not finished yet. One personal example that I faced not quite recently, but do you play video games?

Robert O’Farrell:

When I get the time. I have two young boys, so I get very little time to do that these days. But yeah, I do.

Leandro Barreto:

Yeah. I love doing, I don't have also time, but when I have a litle bit of time, I can spend. So, this little time I try to spend in the best game that I found in the market. And here is the point because some years ago, there was a game that was released and before released, there was several gaming platforms, new sites, and et cetera, that was telling us that, "Here is the game challen... no, the game changing for the gaming market, because it's going to be very good. The marketing for this game was really, really good. And the game was like highest expectations for that. It was always in the top. "Hey, you have to play this because it's going to be very great. You are going to be having a great experience on that."

Leandro Barreto:

And the funny thing is that after they launch it, a few hours later, I notice some YouTubers who start testing the game. They began to post videos about so much bugs that they are facing. And within a week, the game had to stop selling because that was a disaster.

Robert O’Farrell:

Yeah.

Leandro Barreto:

And... Yeah.

Robert O’Farrell:

I was just going to say, I can think of a few games that come to mind that fit that criteria.

Leandro Barreto:

Yeah. Probably we are thinking the same, but I can say it, so.

Robert O’Farrell:

Yeah. Yeah. Do you find that people get OKRs and KPIs confused within an organization? Or have you ever come across any examples of that, where people misunderstand the purpose of between the two of them?

Leandro Barreto:

Yes. One thing that came up to my mind is the key result is a simple measure to understand if you are going in the right direction to your objective or not, but KPIs is it's more a performance index for performing for your team. For example, if they are performing in a good way, if we have the right resources for delivering something. And so, I think this is mainly the difference is the KPI, it's a measure for you to, maybe to bonus, to create a bonus for your team or et cetera. And the KR must be not linked to bonus or salary, et cetera. Must be like a direction. Something that, yes, we are achieving it or not. Or if not, what we have to do to correct the direction.

Robert O’Farrell:

Yeah. Fantastic. So, coming around to Agile, I'm curious about this marrying of the two, of OKRs and Agile together. How can we combine Agile and OKRs in your experience and your understanding to achieve results that drive high performance?

Leandro Barreto:

Awesome. So, as the Agile manifesto says, "People over process," so I believe whenever you maintain a fail-safe environment along with a good leadership, you can get the most of your team. So, connecting what I said earlier regarding the Ikigai and when you have a good leader, for example, in a safe environment and colleagues or peers who shares the same values and goals as you, then you can extract maximum efficiency because high-efficiency teams are teams that are focused and committed with the company results, and that will achieve great business results. Sorry.

Robert O’Farrell:

I also love that aspect with the OKRs, with that clear definition, too, that Agile, that processes is that sprint by sprint activity where you're going back and you're looping around and looking at the results of that sprint and going back to the customer and getting customer feedback and that real alignment around what you're trying to achieve as well, to give you that clarity of focus that when you are going through that sprint process, you're coming back and saying, "Okay, are we acting on the initiatives that have come out of these key results that contribute to that OKR?"

Leandro Barreto:

Exactly. And also, adding to that, that's why we have the goal for the sprint, right? So, we have the direction for the sprint. So, every sprint you can measure if you are achieving this goal or not.

Robert O’Farrell:

And I love it as a mechanism, too, to link back to that, that why piece to really give a clarity around why, which I think a lot of software development sometimes doesn't focus as much as they can on. So, I'm curious, so how can Ikigai mix into this? So, we've talked about that at the start and we talked about the components of it and it was a great framework about understanding a purpose, but how can we use that to achieve better results and stay motivated as a team?

Leandro Barreto:

Great question and also quite difficult. But yeah, I believe there are two thin lines that eventually met in the future. For example, the first one is like the individual as a person. So, how he seems himself in, within the organization and how can benefit, how this relationship can benefit from this win-win relationship. And also, the second one is like the individual as a professional. So, based on the skills that he already has. How can he help the company achieve the results more efficiently?

Leandro Barreto:

So, in a given timeline, these two lines will cross and then you will be able to extract excellent results because you will have a person with excellent internal knowledge, internal as a person, and also engaged with the companies is seeking as a greater objective, as a north star, and also helping your peers to grow all together.

Leandro Barreto:

And I think this is quite like a smile. When you smile at someone unconsciously, you make the other people smile too. So, when you have someone who is genuinely working with a proposal, that person will contaminate other in a good way. And then, you have a continuous string of people delivering consistent results. And I think this is the most important.

Robert O’Farrell:

Have you experienced that yourself where you see someone working with purpose and contaminate or infect how you... infect is again, not a great word, but inspired is probably the best word there, inspired the people around them to work in a similar fashion. Has that something that you've witnessed yourself?

Leandro Barreto:

Yes, yes. I remember back in the company that I was working in Brazil, that was my first day. I was like, "Hmm, there's something strange here," because everyone is so passionate on delivering their best results for their customer, that this thought influenced me in a positive way to start being like hungry for good results, not only for the company but for me as an individual, as someone who have to learn and teach others. And nowadays, I see these companies, it's achieving a great results with a great leader because even if we have a good team, we have to get someone who is a servant leader, who you can follow and maybe follow blindly in a good way. But yeah, I experience it.

Robert O’Farrell:

That's fantastic. But I'm interested, is there anything that you wanted to talk about personally with regards to either of those three topics or even outside of that, that has been inspirational, I think, in your professional development, in your personal life?

Leandro Barreto:

Yeah, absolutely. Absolutely. I think Leandro five years ago was totally different person. And when I started looking, not only by myself inside me, but also outside and the opportunities that the world can give me and how can I serve back this, or how can I provide this back to the world? This is very funny because good things start to happen. For example, I never imagined to be working here in Amsterdam. And now, I'm here in Amsterdam, working in a great company with great people, delivering such great results, which is giving me a lot of knowledge to keep learning and keep the wheel turning on, keep the cycle.

Leandro Barreto:

And I think today, like performing the best Leandro's version ever, maybe tomorrow, a little bit more, and I can provide this knowledge to other person and I can also learn from other persons, from other people. And that's very exciting. I think that's what motivates me to wake up in the morning, do my sport things like running and jujitsu, and then let's do the work.

Robert O’Farrell:

That's fantastic. I love that, that reflection on the past five years, how far you've come. It sounds like you've had a lot of inspiration from a number of different sources, but is there something in there that you think was key to that? Or was it just a general progression over that time?

Leandro Barreto:

Yeah. Yeah. Actually, I tried to focus on people who have positive influence on others. So, I try to be more not equal because if you are equal, so you are the same person, so it doesn't provide value to the others, but try to be quite different in your own way. So, yeah, basically, that's what motivates me to get different sources of references and trying to be the best version of myself.

Robert O’Farrell:

That's fantastic. I love this mix of the philosophical, which is for me, the Ikigai, and the concrete, well, not concrete, but the workflow aspect of the Agile side of things coming together. Have you traditionally worked in Agile methodologies or did you transition between that may be starting, because if you're from the 2000s, so you probably touched on Waterfall at some point in the past and then came into Agile. Was that your professional progression over that time?

Leandro Barreto:

Yeah. Yeah. Actually, I worked a lot with the Waterfall methodology in 2008, when I was introduced to the Agile methodology with Scrum... no, actually 2009, then I saw. "Hey, this is very, very interesting." Let's learn more about it. And then, during this time, I keep working both with the Waterfall methodology and the Agile methodology. And the more I work it with the Waterfall, the more value I saw in the [inaudible 00:54:24]-

Robert O’Farrell:

In Agile. Yeah.

Leandro Barreto:

Yeah. And that was quite fantastic because then I also learn about SAFe and how to scale it, and yeah.

Robert O’Farrell:

I'm quite curious, like because we had a similar path in that regard and I reflect on where we are with OKRs and Agile, and it's interesting that Agile brought us closer to our customer and we speak to our customer on a more regular basis, which I thought was a massive win over Waterfall where you might have months and months of development, and you've got a requirement that you're trying to put into code, and then suddenly, you have this big delivery and that's when you talk to the customer. And usually, the customer comes back and says, "We want all these things changed." And it's a real pain.

Robert O’Farrell:

Agile was instrumental in that, but then going up from there and putting that layer of why on top of that, which I think is, again, one of those big fundamental shifts on how we focus on what we are doing. Do you see anything emerging from your experience, your professional experience that is tackling another key challenge with regards to, I guess, how we work and how we deliver value?

Leandro Barreto:

Yes. And for example, the customer, they want to see value on what is going to be delivered. They don't want to spend six months to wait something to be delivered. So, I think that's why cloud start being so popular, like SaaS companies, because when you are working on something that is on cloud, for example, you always have the last version. And no matter the day or the hour of the day, there will come new features. And usually, it's transparent for you. And internally from the engineering perspective, the more you deliver, the more quickly you can correct and the more you can understand the market.

Leandro Barreto:

And also, that's why some strategies, some release strategies came up so popular like Canary release. So, you deliver a few things to a particular person, and then you can test it. And if they provides you good or bad feedback, you have time to correct it. So, that's why it became so popular. So, I think during this time from now on, we must see a lot of SaaS companies starting to growing because things are in real life now, real time now, so I think it's natural.

Leandro Barreto:

By the way, there's a good strategy that was implemented by Spot 5 if I'm not mistaken that was like, but this is more for engineering perspective. They have some robots that keeps doing bad things to the servers.

Robert O’Farrell:

Oh, that's the Chaos Monkey.

Leandro Barreto:

The Chaos Monkey.

Robert O’Farrell:

That was Netflix. Yeah. Yeah.

Leandro Barreto:

Netflix, yeah.

Robert O’Farrell:

Netflix. And it would take down bits of their infrastructure and break things. Yeah, yeah.

Leandro Barreto:

Exactly. It's quite hard to see in some companies, but I think this has become to be more popular during the next couple of months or years, because it will teach the engineers how to deal with that because no one wants to stay working in the weekend. You stay with your family.

Robert O’Farrell:

Yeah. I completely agree. I remember when I first heard about the idea of the Chaos Monkey, that it shocked me that someone would inflict that upon their business and upon, I guess, their systems, but then it only takes a production incident to realize that if you had something like that, that you would've built in some provision should that eventuate. And I think that there's a lot of wisdom to it. And so, I absolutely love the idea. I love this, what you were saying about real-time delivery of value to customers.

Robert O’Farrell:

And I think back to how Agile has really been fundamental in pioneering that, well, not pioneering it per se, but with the release cadence that you get from one to two-week sprints, you're putting yourself in a position where you are delivering more often. And you mentioned Canary deploys, I think within that. Is there any other deployment strategies that you've come across that also support, I guess, that immediate delivery of value to customers?

Leandro Barreto:

Yes. There is another strategy which is called the Blue-Green release, but the difference between it is like the Canary release, you deliver something in the small portions, but the Blue-Green, you, like a switch that you turn on and off.

Robert O’Farrell:

Yes. Yes. Right.

Leandro Barreto:

Yeah, you can test it. You can deliver new version of your environment or your tool, and then everyone can use it. And if something goes failed, then you have the plan B, where you can just turn on and off, and then you can rearrange the traffic to your tool. But this is very technical.

Robert O’Farrell:

Yeah. Very interesting to me, but we might lose a few of our podcast listeners. One last question from me, just within your current professional engagement, were they implementing OKRs before you joined the company? Or was that something that you've seen introduced over that period of time?

Leandro Barreto:

From my current company, they are currently working with OKRs, so I didn't participate and implemented it. So, I'm just more focused on helping the teams in implementing the KRs. There were some companies that I worked in the PEs that I helped to build it, and also to build not only the objective but also the KRs. And the objective, it's you spend so much time because you have to understand where the company wants to be in the future.

Leandro Barreto:

So, you have to know inside what we have, what we can improve, where we can improve, and then we can base it on that, base it on the objective. We can build up to four key results to be more precise in achieving this. Yeah. But it's quite challenging, but at the same time, very exciting.

Robert O’Farrell:

I think that was going to be my question in your experience in seeing a company go from not doing that to then implementing it, what were the real challenges in doing that? And how long did you see that process take before they really got good at doing that? Because it is not only setting the meaningful objectives and obviously measurable key results but also then getting the alignment from the teams around that. What were the big challenges there and how long did you see that process take?

Leandro Barreto:

Yeah. I think it depends from company to company. I remember back in Brazil, I had to work with companies that spent months on deciding, but at the same time, I remember my own company took three months to start implementing it. So, I think it depends on the commitment of the people who is responsible for this objective. So, yeah, depends on the maturity also of the company, the people who is working, and yeah. Because the OKRs are quite old, but at the same time are quite new for people, for the companies. Right? So, this is like very challenging. And how do you balance it?

Leandro Barreto:

There are some people who doesn't know how to set the correct objective. And then, we came up with the same thing that we are discussing earlier. Like if you don't know where you're going to go, if the objective is not clear enough, no matter if you have good people or bad people, the people will not see value on that.

Robert O’Farrell:

Yeah. And you won't get your alignment because people don't either understand or don't believe in the objective.

Leandro Barreto:

Exactly.

Robert O’Farrell:

That's fantastic insight, Leandro. And I really appreciate your time today. Again, is there anything that you'd like to chat about before we wrap it up? I'm just conscious that we have been chatting for about an hour now and gone off script a little bit too.

Leandro Barreto:

Yeah, absolutely. Absolutely. No, actually I'd like to thank you, Rob. Thank you, Agile team, everyone. I don't want to spend much time talking also. It was a pleasure and thanks for invite again. And I hope we can think good things in the future. Like, "Hey, I hope I can provide good insights on this."

Robert O’Farrell:

That's fantastic. You certainly have. I've learned a fair bit today as well. So, I'll be going back to revisit some of the talking points from this chat. So, thank you very much again for your time, Leandro. I really appreciate it. And, yes, have a great day. It's kicking off for you and it's ending for us. So, yeah, really appreciate it, mate.

Leandro Barreto:

Thank you. Thank you. I really appreciate it too. Thanks again. See you. Have a great day.

Robert O’Farrell:

You too. Cheers.

Leandro Barreto:

Cheers.

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