Easy Agile Podcast Ep.32 Why Your Retrospectives Keep Failing (and How to Finally Fix Them)

"I had the pleasure of sitting down to chat with Dominic Price from Atlassian. It was so enjoyable to reflect on my time working at Atlassian and to hear Dom's perspective on what makes a great team, how to build an authentic culture and prioritising the things that matter."

- Nick Muldoon, Co-CEO Easy Agile

Transcript:

Nick Muldoon:

What I was keen to touch on and what I was keen to explore, Dom, was really this evolution of thinking at Atlassian. I remember when we first crossed paths, and correct me if I'm wrong, but I recall it was like late 2014, I think.

Dom Price:

Yeah, it was.

Nick Muldoon:

Scrum Australia was on at the time, and you're at the George Street offices above Westpac there, wherever, and we had Slady in the room, there was yourself. I think Mairead might have been there, I'm not too sure.

Dom Price:

No, probably not. I think it was JML's engineering meeting, engineering relationship meeting.

Nick Muldoon:

Right.

Dom Price:

Involved in the

Nick Muldoon:

Hall of Justice, right? Not Hall of Justice.

Dom Price:

Not Hall of Justice. Avengers.

Nick Muldoon:

Avengers. When was the last time you were in Avengers?

Dom Price:

A long, long time ago. A long, long time ago.

Nick Muldoon:

You've been working from home full-time since March, right?

Dom Price:

Yeah. Although, actually for me I can work from anywhere for three and a half years.

Nick Muldoon:

Yeah, fair enough. Okay.

Dom Price:

The shift for me was missing the work element. I'm missing the in-person work element because being on the road a lot, having that one day or two days week in the office, there's connective tissue, I didn't realize how valuable that was. Going five days work from home is not a great mix to me.

Nick Muldoon:

No, not a great mix for me either, Mate. I was the one that was coming into the office during lockdown. I was like, "Oh." It was basically an extension of my house, I guess, because I was the only one that was coming in. But I could turn up the music and I could get some work done without-

Nick Muldoon:

Yeah. All right. Back in late 2014 when we first crossed paths, we're at JML's engineering meeting, and that was before JML had gone to Shopify.

Dom Price:

Yes.

Nick Muldoon:

We were talking about all things. I remember talking about OKRs, which was the Objective Key Result framework that we were using at Twitter that I think Atlassian was looking at for the first time.

Dom Price:

Yeah, we'd been flirting with for a while.

Nick Muldoon:

Flirting with for a while. What was Atlassian using at the time? What was VTFM?

Dom Price:

There was two things we had at the time. VTFM which was Vision, Focus Areas, Themes, and Measures, which was our way of communicating our strategy, our rolling problem strategy. But then off the back of that we had what I would call old school KPIs. Right? We'd pick goals, right, we'd pick ways of measuring those goals, but very KPI-focused and very red, amber, green scoring focused. When we were small, it worked okay. It didn't scale particularly well because it became punitive. If you were green and you hit your score, you got ignored because you were always meant to, and if you were amber or red and you missed by anything, you got punished. Right? It's like, "Please explain." You got the invite to the head master's office.

Dom Price:

We wanted a way of getting stretched into there and also be more outcome-focused, because I think when we scaled KPIs, we got very output-focused like, "What did you do this week? What's the thing that you shipped?" Actually, the thing that we forgot about, and I think it was by accident, it wasn't bad intent, but we forgot about what's the outcome or impact we're trying to have on the customer, because that happens after the event. OKRs were a way of putting stretch in there and building the idea of moonshots and big ambition. But then also, refocusing us on, what is the impact we're trying to have on the end customer, not just what's happening in the sausage factory?

Nick Muldoon:

With that end customer perspective though, did you get that with the VTFM?

Dom Price:

No. Actually, the first year we rolled that OKR, that was part of the problem. We had the VTFM because that stayed, right? That was like the sacred cow for the first year. That stayed, and we just had OKRs underneath. Yeah, and we're like, "Well-

Nick Muldoon:

So you're mixing them together.

Dom Price:

... which ones do we report? The measures in the VTFM because that's our Atlassian level plan, or the OKRs, which is the things we're actually doing and the impact that we're having. You're like, "Well, both," and you're like, "Well, they don't meet. There's no cascade up or down, left or right, that had them aligned properly." The year after we actually phrased ... we got rid of the VTFM, and we now have our rolling 12-month strategy phrased as OKRs.

Nick Muldoon:

Right. Okay. At that time, Dom, back in 2014, when you were flirting with OKRs, as you said, was the VTFM that you were working to replace, was that company, department, team, individual, or did it just stop at the team?

Dom Price:

Yeah. That's where it didn't really scale, right? The organizational one made sense, and again, when you're smaller, it's a lot easier to draw the linkage between your team or your department and the company one. As we scaled, what happened was we'd have a company level VTFM, and then each department would go and build its own. The weird thing is, and again, this works for a phase, and then you realize it doesn't, is we don't create value up and down the org. We create value across the organization, and so building these VTFMs in departments was honing our craft. But it was doing it at the detriment of how you work across teams.

Dom Price:

I think that it's one of those things that at the time, we didn't realize. If I had a crystal ball, it would have been great. But it seemed like the right thing to do. Engineering had a VTFM. So did Design, so did Product Management, and you're like, "You know we only ship one experience, right?" I don't care if engineering's perfect and design's not because that's letting the customer down because this one experience that we shipped. There was this whole sort of arbitration where we'd build them vertically, and then try and glue them together horizontally, but they'd all been built in isolation.

Dom Price:

Then When it comes to trade offs, and every business has trade offs, whether you admit it or not, when you're like the best laid plans literally stay on paper, right? That's where they exist, then reality kicks in one day after you've built the plan. When reality kicks in, what trade off are you going to make? Are you going to do the trade off that delights the customer, maybe compromises you? Right? then how do you do that internally? Are you going to help Design and Product Management and load balance that way, or say, "Well, yeah, I'm an engineer and we're fine. It's Design's fault. How we'd adapt everyone is Design's fault." We quickly realized that a vertical model brought about some unintended consequences and some odd behaviors that weren't really the kind of behaviors we wanted as Atlassian.

Nick Muldoon:

Back in that time, Dom, in 2014, 2015, did you have the triad then with the product design and later for each of those groups?

Dom Price:

In physical people, yes.

Nick Muldoon:

But in-

Dom Price:

... modeling, no.

Nick Muldoon:

No. Okay. How did that come to fruition, that triad where they were working as one in harmony to deliver that customer experience?

Dom Price:

I think essentially, it's one of those brilliant mistakes when you look back. We're really good at reflecting, and you do a few reflections, and you suddenly see the pattern, and you like, "Hey, our teams that are nailing it are the ones where we've got cognitive diversity and the balance of skillsets." Not where we got one expert or one amazing anything, but actually, you're like, "Yeah, actually -

Nick Muldoon:

If look at some of these patterns-

Dom Price:

Yeah. You're like, "Hey, I just saw that design." They get the product manager in a headlock and have a valid argument at a whiteboard. You're like, "I actually like that. That's what I like, the meeting where there's consensus and violent agreement." Maybe that's the wrong signal, right, that the right signal is this cognitive diversity, this respectful dissent. You see that, and we're like, "Hang on, we have the realization that engineers build great usable products, and product managers are thinking about the whole sort of usability and along with the designers. Viability, you're like, "Oh, we need all three. All three of those need to be apparent for a great experience." You're like, "Cool. Let's double down on that." Right?

Dom Price:

We started to hone in a lot more on how do we get the balance across those? How do we understand the different roles? Because we didn't want to become homogenous. You don't want those three roles to get on so well they all agree. You also don't want to violently disagree all the time, right? A little bit of disagreeing commits great. If they're always in disagreement, then that comes out in the product. How do you find the things that they stand for, and how they bring their true and best selves to each phase? Right? If you think about any given product or project, there are natural phases where their skillsets are more honed, right? In the phases for us, part of managing design is often a lot better with the ambiguous and a whole lot of stuff. When it comes to building, I'm probably going to listen to the engineer more, right?

Nick Muldoon:

And you're handing it over to delivery.

Dom Price:

Yeah. But then also, it's like, well, it's not the ... If you think about delivery time, I think we'd sometimes think of it as the relay race. I think that's incorrect, because everyone's still going to see the relay race. Once I've run my lap, I'm done, right? But in product development, it's not because when I hand over the baton, I still have a role. Even if it's in build phase, the product manager and the designer still have a massive role. It's just that they're co-pilots and the engineer's the pilot, right? You don't disappear, your role changes. I think that was one of the nuances that we got as we started to bring in the right skills, the right level of leadership, the right level of reflection to go, "How do we balance this across those phases, and how do we be explicit on what role we're playing in those different phases?

Nick Muldoon:

Okay, that's interesting. I'm going to want to come back to that when we turn our attention to the customers in the Agile transformation landscape more broadly. But one thing that has got me thinking about with respect to this balance is the fact that Atlassian had the discipline to hire for a triad, right? If I think about, I think this was around 2013 at Twitter, and in one of our groups, we had pick a number, but there would have been 200 people, and there would have been less than 10 product managers. I think we actually had a ratio of like 20. It was something silly like 26 engineers to a product manager. It wasn't even a design counterpart necessarily for each of the product managers. The balance was way off, and it wasn't very effective. Was there a time at Atlassian where there was this reflection? Because I'm just trying to think, in my time at Atlassian, I don't think we had maybe a great balance. I think there was a much heavier in engineering than there was in design and product.

Dom Price:

Yeah, it's one of those things that if it's not there, you don't miss it. Right? It's weird, right? It was a lot of it before my time, but when I listened to the story, it's like even design as a discipline when I started in 2013 was a very small discipline. I think even then, it was kind of like a hack to the notion where it was like, "Oh, yeah, we got some designers. They do the pixels, right? They make stuff look pretty." .

Nick Muldoon:

They do T-shirts and they do like .

Dom Price:

Who knows, right? But it makes us look pretty, right? They drink craft beer, and they sit on milk crates. We had this archetype of a designer, and then you like, "Oh, actually, once you start to understand user experience, the integration points, design languages, design standards, and the experience, once you get your first few designers who say, "Here's how our products fit together," and this is the experience from a customer lens, you're like, "Oh, I'm not sure I'm a fan of that." It wasn't badly designed, but nor was it particularly well-designed. Once you start to make some improvements, then you start to measure customer satisfaction, and you make that experience more seamless, you suddenly see the value.

Dom Price:

I think for Atlassian, I think we started as an engineering company. We added product management, and then begrudgingly added design. Interestingly, in my time there, the most recent thing we've added is research.

Nick Muldoon:

Yeah. Okay.

Dom Price:

Fascinating evolution for us again to go, "What do you mean, research? I'm a product manager. I know everything about the industry in the section of the competition." They're like, "But do you know anything about the customer, and the job to be done at the top tasks, or how they experience, and thinking about things like accessibility, thinking about how our products integrate with other products, thinking about not just from a competitive landscape, but what's the actual job to be done, and what are the ways people are trying to do that, and the drop off points.

Dom Price:

Research has become a new muscle that we had the exact same experience with. First time you roll it out, people are like, "Oh, we don't need that. It's overkill." You're like, "I see, it's really quite good." Hard to integrate because you're giving me findings I wasn't expecting, and then there was a shift both for designers, but also for the product managers to go, "Oh, I can use a resource now because you're this independent group that can help me understand, not just my product and iterating on my products, but a level up, what's the thing that my products trying to do? Who am I competing with, and what does that experience look like end to end?" It's a completely different lens.

Nick Muldoon:

Basically what you're describing there, Dom, is you've still got the triad of the product design and leads. But now you've got this. It's a centralized kind of research team?

Dom Price:

Yeah.

Nick Muldoon:

Do they drop in for particular projects in different areas?

Dom Price:

Yeah. If you think about it, if you strip it back to plain common sense, I think over time, we got really good at explore and build. But maybe we lost a little bit of the muscle around wonder. These researches are great. The blinkers are out and they wonder, right? I'm sure they physically do this as well, but mentally, they stroll, right? They go quite broad, and when they come back with their insights, you're like, "Wow, that's given me a really good broad perspective." I'll give you a quick example where we're working a lot, and we always are on accessibility. It's easy to look at your current products and start adding stuffing. Right? That's the logical way of doing it. Or you look at your competitor's products, and how do you become a pair or a peer? Easy.

Dom Price:

What our research team did was they actually got a whole lot of people with different sight and mobility issues, and said, "We're going to now get you to use our products and go through some key tasks." They're already using it, but it's like maybe they're on a screen reader, or maybe they can't use a mouse, they can only use keyboard shortcuts. You suddenly see the experience through their lens, and we record it, and it's tracking eye sight and line of sight using all the actions. You've got this level of detail there where you're like, "Well, I know we're trying to build empathy, but actually seeing that experience firsthand is completely different than trying to think about it."

Dom Price:

You just seeing it through the lens of this person. The research team did weeks and weeks and weeks of research with different users, different backgrounds, different disabilities, different products and different tasks to give all of our teams the sense of what is it like as the actual person. Here, you can actually walk in that person's shoes, or it feels like you are.

Nick Muldoon:

If you're a product manager and a designer, and you're ... Because it sounds to me, Dom, like that sort of investigation or exploration that you're describing there with respect to mobility-impaired or sight-impaired people, that's something that it might be hard for me to bring that into my OKRs for our product. For that triad, how do I have ... I'm trying to push forward and chase down monthly active users, or cross-flow, or whatever it happens to be, and that's much more long-running. It's like it's a long-running thread that's just going to stay open for 18 months while we think about this stuff and have these conversations. Does that research group, do they actually have their own OKRs, and are those OKRs annually?

Dom Price:

Yeah. Yes and no. We do mostly OKRs across design, research. We now have a ways of working team. They tend to be shared OKRs or more cross-functional, are cross-functional to shared. The cross-function as in we have the same objective, but different key results.

Nick Muldoon:

Yeah, okay.

Dom Price:

If you think about accessibility as an objective, the research team, their key result is about having the latest greatest research and insight so that we can learn and understand. You're like, "Cool, that's your task." Right? The design team, your OKR is to take that insight and turn it into some designs, usability, and then you can actually go along the value chain, and each different person in that value chain has a different OKR.

Nick Muldoon:

Okay. Still today though, there's no OKRs at an individual level, right? It's all team, group-based?

Dom Price:

We have odds and sods. I've dabbled with it a little bit. Sometimes I think I've always got individual OKRs. The question is whether I share them or not. I think if you think about the majority of knowledge workers, they will have individual goals, "I want to learn a new skill, I want to acquire a new "

Nick Muldoon:

Honing the craft.

Dom Price:

Yeah, right? Whether you write that down and it benefits you or not is not up for debate. When it came to writing them down in a collective, having a single storage of them, any kind of laddering, I think the cost of that is higher than the benefit. Right?

Nick Muldoon:

Okay.

Dom Price:

We strayed away from saying everyone then must have individual OKRs, and then ladder, whatever, because it ends up getting very, very cumbersome, and actually very command and control. What we've done instead is really say to our leaders, and this is leadership by capability, not by title, but saying to our leaders, "This is part of a conversation you should be having on a regular basis with your people around growth, and how you're inspiring them, and how you're motivating them. How are they developing and evolving? What are the experiments they're running on themselves? Right? How are they with other people? What are their challenges, and how can you help them never get those challenges? What are their points of amplification that you should be calling out with them to turn the dial on that? Right? What are their superpowers that we should be really encompassing, right, and nailing?" That's part of a leadership conversation. Does that need to be written down and centralized? No. To me, it becomes a zero benefit to documenting that.

Nick Muldoon:

It's interesting hearing you describe that. That's very much learning and development-focus. If I think back to Andy Grove's High Output Management, my understanding of that at an individual ... of OKRs and an individual level was always with respect to your customers. What am I going to do for my customers? But you've actually framed it, what am I going to do for myself that's going to allow me to be in better service to my customers, maybe next financial year?

Dom Price:

Yeah. It's a secret. I'm guessing this is shared by Atlassian, but this is definitely my view of the world, and I've shared this with enough people now where they understand. You can't be a great teammate if you're not turning up your true best self. You got to take a step back. There's this whole weird narrative around the humility of being a teammate where you're like, "I'm a martyr, and I'll take one for the team." It's BS, because if you're not in the right zone for that team activity, you're not giving your best, right? You're actually the anchor that brings the team down. You step back from that and you say, "Well, how do you be the best?" Because not all work is teamwork. There's a lot of deep work and individual tasks and stuff that needs to be done. You're like, "Right, I need to be the best version of me. Well, what's that mean?"

Dom Price:

It means that before any meeting, I need to have done my tasks, or before any meeting, I need to have done my pre-meeting, right? If we're meeting as a team and we have this synchronous activity, what are the things I need to do to be best prepared for that synchronous activity to deliver the most value? How can I get the most out of that teamwork? How do I turn up and be present? How do I turn up with respectful dissent and challenge, right, and provocation? That requires me first to be an individual. Right? I think one of the dangers in a lot of work environments right now is people have lost the understanding of what it is to be an individual, what your key leadership style, your learning style, how do you turn up? Right? How do you critique? How do you take feedback? All these things that make you you, you need to know those and be aware of them before you can be great in a team environment.

Dom Price:

It's not just the tasks. You need to know you. If you're a great individual, and you've honed that, you can then be a great teammate, and if you're a great teammate, you can deliver great outcomes for your customers. Anything else is an accident, right? We've all been in accidental teams, which has delighting a customer, and we've sat there and gone, "Really not sure what I did to that guy. I'll take it. I'll take the pat on the back. I'll take the kudos, and the bottle of wine, and the congratulations. Not really sure I amplify that. I don't know. If you don't know, you probably didn't. Right? That's not humility. You're probably just a passenger. I think the danger in growth environments is there's lots of passengers who they're a passenger to lots of success, and after a while, they're like, "I'm amazing." You're like, "You're not. You've just been in the right place at the right time repeatedly."

Nick Muldoon:

I got to process that.

Dom Price:

Let me give you an example. Right? A couple years ago, I was in New York with a mate of mine, Sophie. She's unofficially mentored me and helped me a lot of the years, right? I'm talking to her about trying to scale me, and I was really angry about some stuff, and thankfully, it was late afternoon in New York. She bought me [inaudible 00:25:30]. We smashed a drink and we chatted away, and she's one of those people that just calls BS on you, right? I'm like, whinge, whinge, whinge, whinge, whinge. She's like, "Oh, cool." She's English as well. She's like, "So I'm guessing you're just going to whinge about it and hope it goes away." I'm like, "All right, fair point. Little bit, my English came out. I actually hoped that maybe even if I did whinge long enough, it would actually disappear." She's like, "That never happens, does it? What are you going to do about it?"

Dom Price:

We chatted when she gave me this challenge, and she's like, "You're not evolving." She's like, "You're adding stuff in, but you're full." She's like, "Cognitively, Dom, you're full." My challenge was I was reading all these business books at the time, and I knew lots of stuff, but I didn't feel any smarter. I wasn't doing anything with it, and it's creating this frustration spiral. She gave me the exercise, and you've probably seen this, the four Ls. She got a bit of paper, and she's like, "All right, write the four Ls down. Reflect on you as a leader. This is selfishly purely about you as a leader. Last 90 days, what have you loved? What have you done personally?"

Dom Price:

I'm like, "Oh, no, no, no, no." She's like, "Not like, because we're not doing likes here, right? We're not being soft. Loved, and own it. Actually, superpower, do more of it." We did that, very uncomfortable few sips of wine. Then she's like, "What's your loathe and what's your longed for?" I had lots of long fors, long list of those, but no loathed. She's like, 'All right, here's the problem. The long for, you're sprinkling in in the 25th hour of every day. No wonder you're not doing well at it, because you never giving it the ... You're not giving yourself any space, or time, or freedom to actually experiment. You're not growing. You're not getting better. You're just adding stuff in." I'm like, "Fair point."

Dom Price:

We went through, found some loathe. She's like, "Right, you're going to remove those. Who are you going to tell those habits, or rituals, or whatever, who are you going to tell that you're removing those because they need to hold you accountable? Because they'll slip back in really easily." I found someone, pinged them. She's like, "Right, the longed." She's like, "I need to let you know that when you add them in, you're going to be crap at them." I was like, "I don't want to be rubbish at anything. I'm a leader. I need to be a superhero. I need a cape, and I need to fly in, and everything must be perfect first time." She's like, "No, the first time you added a longed for, the chances are you'll be rubbish at it. Find someone who has that muscle and let them help you practice it, and you'll get better at it over time."

Dom Price:

Then the fourth L was what have you learned? What experiment did you learn yourself last quarter? What did you learn about yourself?" She's like, "Right, go and tell as many people as you can. That'll build a place where you're learning and networking environment for you." I did it, and then I did it again 90 days later. There's a few times when the power of rationalization kicks in, and I just BSed myself because really easy to do. Then other times where I've got really deep and analyzed on it, and it's enabled me every 90 days to evolve, right? Now, the moral of the story, and this is where we tie individual to team, the number of leaders I know in big businesses driving transformations, but they're not changing themselves. What behavior are they rolling with? They're rolling with the behavior of, "I'm fine. You're not. You all need to change," which is-

Nick Muldoon:

Yeah, role modeling status quo.

Dom Price:

Yeah.

Nick Muldoon:

Yeah. That's interesting. I've certainly heard of the love versus loathed exercise. I like that you, or that Sophie extended it to longed for and learned. I think that's really beautiful, and I'll take that. With the loathe in particular, were there things on that list that you had to delegate or you had to hire someone to do? Because there's things that I think about that I loathe with respect to the business, and typically, they're things about orchestrating, paying suppliers, or whatever it happens to be. How do I address that? I bring the bookkeeper into the business that-

Dom Price:

Yeah. The little game that we played is you're not allowed to outsource it until you drop it. Right? The idea is, you're going to find a way of dropping it first, because maybe it doesn't need to exist, right?

Nick Muldoon:

Okay.

Dom Price:

Because you've worked at big companies, and you walk around a big company, and you're like, "That person there, they only exist to do a task that someone probably could have automated or got rid of," but they didn't have the time. Also, they put a warm body in the way. Then you add another warm body, another warm body, and you suddenly realize you've got thousands of warm bodies keeping this deck of cards stacked together, and if one card falls, the entire thing comes tumbling down. I removed stuff that I was really uncomfortable removing stuff. I was like, "This is so important." It wasn't. My blinkers were just off, right? Then she's like, "We'll stop doing." She's like, "It's not life or death." She's like, "No, thanks, Dom. Well, you're not a surgeon, so stop doing something, and listen, and see what happens when you stop doing it." I'm like, "Oh, no, but these are really important. People will be angry. I'm a very important person." You remove something and no one bloody notices. You're like, "Why have I been doing this?"

Nick Muldoon:

Why was I doing it? Yeah.

Dom Price:

Yeah. Then I-

Nick Muldoon:

Can you-

Dom Price:

One of the big examples for me was meetings. This wasn't a delegate or [inaudible 00:30:24]. This was me just being a control freak, and turning up in meetings where I wanted to be there just in case. We looked at my condo, just a sea, I use Gmail, right, the sea of blue of all these meetings, double booked, triple booked. She's like, "Right." She's like, "Imagine you've got to set yourself a goal of getting rid of 15 hours." I'm like, "What? It'd be easy to create a time machine that adds 15 hours a week. I can't remove 15 hours of meetings. I'm a very, very important person." Then we played this game called Boomerang or Stick. I declined every single meeting, and I sent a note saying, "This is either a boomerang," in which case it comes back, or if it's a stick. When you throw a stick, it doesn't come back. The boomerangs, I want to know what the purpose of the meeting is, what my role is in the meeting, and what you're going to hold me accountable for.

Dom Price:

Two thirds of the meetings didn't come back. Right? The ones that did, I honestly admit to you, I was playing the exact wrong role in virtually all of them. It was funny because I get these emails back and they're like, so one of this meeting I was in, they were like, "Your role is the decision maker." In the next meeting I was like, "I need to apologize. I thought I was the protagonist." Every time they were suggesting something, I'm like, "Well, you could do that, or these three things." I was sending them into a complete spiral, and they were like, "You're a terrible decision maker." I'm like, "No, I'm a good decision maker when I know that's my job because this isn't your title. Your title stays-

Nick Muldoon:

Ah, Dom.

Dom Price:

... the same, right? Your title stays the same, but your role's different in every environment, every engagement, your role is different. We don't call it out, we just assume. Once we clarified those assumptions and realized I've got them all wrong, the meetings I was in, I was way more effective in. Two thirds of them didn't come back. Either the meeting [inaudible 00:32:09], or it didn't need me in that. If you think about it, and me and you know this, our most precious resources are time.

Nick Muldoon:

Time. Yeah.

Dom Price:

Why are we giving it away for free or for negative cost? Right? I'm like, "No, I'm growing all that stuff back."

Nick Muldoon:

Liz and I have been having this conversation for a while now about statistically speaking, I've probably got 50 years left on earth, based on how long a Caucasian Australian male lives. But I've probably only got 40 good, usable years left, because then you kind of like atrophy and all that.

Dom Price:

Yeah.

Nick Muldoon:

Yeah. Liz and I have been going, "Well, if we've only got 40 summers left, what are we going to do with 40 summers?" It's a really good exercise to bring you think real quick, what do you want to be spending your time on?

Dom Price:

Yeah. Absolutely. It's the same thing. You can do that at a meta, macro level for life, and I think you can do it on a annual quarterly basis. With work, there's so many things that we just presume we need to do, and both the four Ls and just my attitude has enabled me to challenge those and go, "Well, I just say why an awful lot right now." So it's like, "I'd like you to come to this meeting." I'm like, "Oh, cool. Why?" They're like, "I don't know. I'd like you there." I'm like, "But why? Because if you can't explain to me what you want me to do, then you probably don't need me there."

Nick Muldoon:

Five whys, right? Five whys.

Dom Price:

But also the reason I'm often asking them why is I'm like, "You do know I'm a pain in the ass when I do come to the meeting, so just I want to double check to you, you really want me there. Because if you converged on an idea and you want to ship it, don't invite me. All right, I'm the wrong person." Just challenging on that and getting that time back, and then using it for things that are way more valuable. I rebalanced my portfolio just like a financial advisor or a market trader rebalances a financial portfolio every quarter, I did the same thing with me. If I don't, then what I'm saying is when I don't do that, I'm saying the version of me last quarter is more than good enough for them for next quarter. What I'm saying is-

Nick Muldoon:

Yeah, which is never the case, is it?

Dom Price:

Yeah, I'm saying the world's not changed. The world stayed flat, right, and everything's going on a flat line. That's not the case. If I'm not evolving myself at the same pace as Atlassian or our customers, then I've become the anchor by default. I'm the anchor that slows us down.

Nick Muldoon:

Tell me, what portion of your time today are you spending with customers? Because I know over the years in our conversations, I think about a lunch we had at Pendolino, you, Dave, and I, probably two and a half, three years ago now, but we were talking a lot about Agile transformations at the large end of the spectrum. How much time are you spending with customers today, and what are those conversations like?

Dom Price:

Yeah. I'm probably over the 50, 60% mark right now, but mainly a rebalance again. When COVID hit, the conference scene disappeared, and so I'm like, "Cool, I get to reinvest that time. I could reinvest it internally at Atlassian, and I did do it where we're evolving our ways of working internally and driving some change there. I got involved in that, made sense. But I was like, "Hey, our customers are struggling." First of all, we need to understand how and why they're struggling, and then if we can help them, find a way of helping them. It's funny how the conversation really changed from quite tactical, yeah, 18-month plans and presumed levels of certainty, to going, "Hey, the world's changed. The table flip moments just happened. Our business model has been challenged, our employees are challenged. We're having these conversations about people, wellness, and actually, we've said for years we care about our people, but now we actually have to. What does that mean? All the leaders just trying to understand the shift from peacetime to wartime-

Nick Muldoon:

To wartime.

Dom Price:

... to time peacetime. I think that it's funny that the transition from peace to wartime, I think the shared burning platform, the shared sense of urgency, I think a lot of these transition, they're okay. I wouldn't say they're amazing, but they weren't awful given that mostly the Sydney in Australia haven't manage through wartime. Right? We've had an amazing economic success for a long time. The harder bit, the way more complex bit is going from war to new peace, because new doesn't look the same as old peace. Right? It's a very different mindset to go-

Nick Muldoon:

Who is-

Dom Price:

... about managing in wartime is I don't need approvals because it's a burning platform. We just drive change, just do it, just do it. New peace is different because we're like, "Well, how long's this going to last for? What are the principles I want to apply? How do I build almost from a blank piece of paper?" Very different mindset.

Nick Muldoon:

Was that Ben Horowitz with the hard thing about hard things where he talked about war versus peacetime leaders?

Dom Price:

I've read it in a few things. The most recent one I read-

Nick Muldoon:

Hear different places.

Dom Price:

... in was General Stanley McChrystal. He wrote Team of Teams.

Nick Muldoon:

Okay.

Dom Price:

He did one on demystifying leaders and how we've often put the wrong leaders on a pedestal, and there's some great leaders out there that just didn't get the credit because they were way more balanced. But yeah, there's a few different narratives out there on it.

Nick Muldoon:

With the latest that you're meeting with, I guess, well, one, are they using something like the four Ls that Sophie shared with you?

Dom Price:

Yeah, that's become a lot more popular, I mean, certainly with C-suite and the level down, even board members, actually. When I share that, there's this kind of moment of reflection of going, "Yeah." It's because I get them with the irony of going, "Question one, are you driving a transformation?" They're like, "Yes." You're like, "Cool. Are you transforming yourself?" "No." By the way, reading a Harvard Business Review article on Agile doesn't mean you're evolving yourself. That means you're educating yourself. That's subtly different. We've all read the article. It doesn't make you an expert, so sit yourself down. That is the first moment of getting them bought in.

Dom Price:

Then the second one is just saying to them, "Just be honest right now, what are the things you're struggling with?" For a lot of leaders, it's this desire that they get the need for empathy, vulnerability and authenticity, they get it because they've read it. They understand it, they comprehend it, they find it really hard to do. Right? A lot of them are leaving as a superhero leading through power and control. They've led through success, but they're not led through a downturn and a challenging time, and they're just questioning their own abilities. There's a lot of, I don't even want to call it imposter syndrome, I think there's a lot of people just saying, "I think my role as a leader's just changed, and I don't know that I understand the new version." That's quite demoralizing for a lot of people. It's quite challenging.

Dom Price:

The irony being is that the minute they look to that and talk about it, they've done the empathy, vulnerability, and authenticity. They've done the thing they're grasping for. But instead, they're trying to put this brave face on it. In a lot of organizations, I've seen a lot of ruinous empathy. A lot of people buffering from their team, like, "Nick, I don't want to tell you that bad things are happening in the company, because I don't want you ... I think you're already worried, because I won't tell you that," without realizing that you fill in the gaps, and you think way worse things than I could ever tell you. The information flow's changed, and then for a lot of leaders, the mistake I've seen on mass is they have confused communication and broadcast. Right? Communication is what I hear and how I feel when you speak. Broadcast is the thing that you said. Because of this virtual world, there's lots of loom, and zoom, and videos, and yeah, we're going to broadcast out.

Nick Muldoon:

Broadcast a lot. Yeah.

Dom Price:

But we're getting to listen for the response.

Nick Muldoon:

This has to be a very challenging time for a number of leaders today, but 2018 or 2008, there were a lot of leaders back then that probably, I presume, picked up a lot of scar tissue around GFC. How many of the leaders that you're chatting with today would have picked up scar tissue through the GFC, and they're still finding this kind of a feeling, at least, like it's uncharted territory?

Dom Price:

Well, and that's, I think, the byproduct. I was going to say problem. The byproduct of the Australian system is we've dodged the bullet in 2008. Economically, we did not get the same hit that the rest. The stock markets got a little hit, and a whole lot of other things took a little bit of a dip, but nowhere near that the size or magnitude of the rest of the world. Both through the mining boom, yeah, the banking sector, a whole of other tertiary markets around tourism doing well at that time, you're like it was a blip, but it wasn't a scar. I think that's where there's a lot of countries have got that recent experience to draw upon, like, "Here's how we do this. Right? Here's how we bunker down. Here's how we get more conservative. Here's the playbook for it." I think a lot of countries haven't got that playbook, so they're getting at it, right? They're doing it on the fly. I think there's that.

Dom Price:

But also I think this one's just different. The global financial crisis was a financial and market-caused issue, right? This is a health pandemic-caused market downturn. I don't think we've got a playbook for that, because we don't know the longevity of it. -

Nick Muldoon:

If you-

Dom Price:

Go on.

Nick Muldoon:

Yeah. No, sorry, Dom, I was just going to ask, if you cast your mind back to GFC, were you anxious going through GFC? Have you been anxious this year?

Dom Price:

No. I wasn't anxious at all through GFC because it felt like ... I did a recession in the UK a long, long time ago, and so I've been through that downturn. I've worked in companies that had downturns, even if the general economy was fine, and industries that had shrunk, where at the end of each quarter you're like, "Right, we talk about the books. Who are we letting go? What projects are stopping?" It was always the taking away, not the adding. I've been through that. The thing that made me anxious about 2020 was, this is the first time I think we've had this level of uncertainty. It's funny because a lot of people talk about change fatigue. I actually think humans are quite good at change. I think we actually do that quite well. But uncertainty, we are terrible with.

Dom Price:

It's weird how when we get uncertainty, how different people respond in different ways. Some like to create a blanket of certainty and wrap it around them like, "Now, here's what I know, and this will come true." You're like, "Maybe [inaudible 00:42:16]." I like your blanket, it's comfortable. But it's not necessarily real, right? It's not going to shelter you from the things that we genuinely don't know about. This is where agility has become key, or nimbleness has become key because if I look at the leaders in the companies that are listening, they're actually attentive to their customers and listening, they're the ones that are evolving really quickly, because they've got ... not only have they got the nimbleness as the muscle, but they're listening to cause correct. The ones that have ... think they've rolled out agility in the last few years, but never added the customer bit, they've got small, fast, nimble teams just running around in circles.

Nick Muldoon:

They're not heading in a particular direction. Yeah.

Dom Price:

Yeah. They are clueless, right, because without that overarching like, "Why are we doing this? And that customer that we care for, we still care for, how's that customer's world changed? Right? Because if that customer has changed, how can we change with them?" A lot of companies haven't done that yet, and I think it's some are holding the breath and hoping for the best. Some are just too fixated on, "But we have a plan, and if we stick to that plan," I read a book somewhere that said, "If you stick to a plan, you'll be fine." You're like, yeah, the world just shifted around you. Your plan might not be as relevant.

Nick Muldoon:

It's making me think, Dom, about the Salesforce transformation, Agile transformation in 2006. That was one of the big bang, I think it was one of the early big bang Agile transformations that took place. I don't know if it was Parker Harris or how it actually played out, but the leaders of Salesforce basically said, "You're going to change to Agile. You're going to give this thing a go. Otherwise, all is lost." There's been other examples. I think shortly after, LinkedIn did their IPO. They pulled the end on call, they stopped everything to rework how they work. Is 2020 one of those years? Are the best companies going to take advantage of this as an opportunity to retool how they work? Then the other companies are just going to kind of atrophy and slowly decline over the next five?

Dom Price:

I think the best ones probably built some of the muscle already, the ones that are now reacting, right? I think if you are aware of the market, all COVID's done is put an accelerant on the stuff that was changing anyway. Right? Yes, it's not ideal, but it's stuff that was happening regardless, right? I think we really had five or 10 years to equip ourselves, and we got given three months instead. I think a whole lot of companies that saw those patterns emerging, changing people habits, technology, practices, ways of working, customer demand, experience demands, you put all those together, that's why Agile transformation has been a massive hit for the last three, four, five years, right? The ones that were prepared for that are awesome. The ones that responded quickly, that are like, "Brilliant, don't let a crisis go to waste. What can we do?" They'll do well. The ones that have dug their heels in and are being stubborn ,saying the world will return to normal and it's just a matter of time, they're the ones that I fear for, because that atrophy that may have been a slow decline, I think that becomes a cliff. Right? Because in a consumer-

Nick Muldoon:

Slow decline, and then they just fall off the edge at some point.

Dom Price:

consumer world, consumers spending goes down, sentiment goes down, and relevance suddenly becomes really important. Is your product relevant to your customers? The people that understand that, and then have agility in how they deliver it, that's a winning combination. I think the interesting, I was talking to a friend about this on the weekend because they were like, "What's the difference between the successful ones and the not successful ones?" It's hard to pinpoint a single reason. But the one that stands out for me is the Agile transformations that have been people-centric are the best. A whole load of them were tool-centric or process-centric. I will send all my people on a training course. I'm going to make you agile, I'm going to give you some agile tools. Go. You're like, "Did you change their mindset? Did you change their heart? Did you change the things that they're recognized for, their intrinsic motivations? Did you change those things?" Because if you didn't, their inner workings are still the same, right? You've just giving them some new terminology.

Nick Muldoon:

I think that's a really, really, really good point. I go back to if I cast my mind back to the first Agile conference that I went to over a decade ago, the conversation back then was very much around training the practices, teaching the practices to your people, and then it evolved into a tooling conversation. But again, teaching the practices and software are just tools, and it was probably 2013, 2014, I guess, when the modern Agile movement came out, and they were talking a lot about psychological safety. Go back to where we started the conversation, right?

Dom Price:

Yeah.

Nick Muldoon:

Psychological safety, bring your whole self to work, and that will free you and enable you to do something tremendous for your customers. Give me a sense of the customer conversations that you've had throughout 2020. What percentage do you think have psychological safety, truly have that psychological safety?

Dom Price:

Yeah. I have to remind myself that psychological safety isn't an all or one, right? It's a sliding scale. I would say it's improved, where it's done with authenticity. The danger is, it becomes a topic where people are like, "I was working from home. There's an increased chance of stress, it's a whole of a change. Things are going wrong. Oh, I know what, let's just talk about psychological safety a lot." You're like-

Nick Muldoon:

That's not it.

Dom Price:

... "There's no correlation between talking about and doing." Right? It becomes the topic, right, the fashion, right? Just like wellness and mindfulness have become fashionable to talk about, doesn't mean we've got any better at it. And so that-

Nick Muldoon:

But isn't that the thing, Dom? Agile was the fashionable thing to talk about, and so we talked about it, but nothing really changed in a lot of these organizations.

Dom Price:

Yeah. It's not dissimilar with psychological safety. What has happened though is over time, the leaders that are truly authentic, vulnerable, build that environment where you can bring your best self, and they appreciate the respectful dissent, but they will still, at the right time, disagree and commit. They're like, "Nick, I heard your view. Thank you for sharing. Our only decision at this point, we're going down Path A. I know that you're in Path B. We're going down Path A. When we leave this room, we commit to A." I hear you. You want me when we're coming to A, and here's the signals we'll assess to make sure it's the right path. If it's not, we'll course-correct. Those people are thriving in this environment, and more people want to work with them. What this environment has done is it's shone a massive light on the difference between managers and leaders. Managers manage process and they like control. Right? Leaders are about influence and people.

Nick Muldoon:

Do you think, so the fact that people are working remote and working from home, that's made it easier to see who the leaders are.

Dom Price:

Yeah, it's shone a light on-

Nick Muldoon:

Because the managers are just trying to count time.

Dom Price:

Yeah, count time, but they're also thrashing around busy work, because they're like, "I'm the manager. I need to show that I'm doing something. I would manage tasks in and around the office, and what I meant some people to do. If we're autonomous, and they just do it, then what's my role?" You suddenly start seeing business. This noise comes out of them, which isn't, "Here's an outcome I achieved, or here's how the team's doing on team cohesion or bonding." They're not talking about about big meta level things. They're sharing these transactions with you, and you're like, "I assumed you're always doing the transactions. Now, you're showing me them all. It's a bit weird." Right? It's just a behavior, right? We must have a process for that. Well, what's the process? You're like, "Actually, what about the process of common sense?" Right?

Dom Price:

If you think about pre-COVID, most organizations that would allow people to work from home once or twice a week had a giant process and policy about how you apply to work from home that one day a week and everything, and then suddenly they're like, "Well, actually, we can do that. Everyone's going to go work from home." But now things have settled down a bit, the process police and the policy police are coming back again going, "But what about, what about? We pay Nick to do 40 hours a week, and what if he didn't do 40 hours?"

Nick Muldoon:

40 hours a week.

Dom Price:

Who cares? Nick delivered his outcomes and his customers are over the moon. As long as he's not doing 80 hours and he's not burning out, doesn't matter? Right? The idea of 9:00 to 5:00, Monday to Friday as a construct is being challenged. The idea of you needing to sit at a physical desk for eight hours a day to do your work, when actually at least half of your tasks you can do asynchronously, that's been challenged. But for the managers who want manage process and control, they're like, "But if Nick can work from anywhere, and we trust him to do the right work, what do I do? I'm his manager. You're like, "You could inspire him. You could coach him, mentor him. You can lead him, you can help him grow, you can do a whole lot of stuff. Just don't manage his tasks for him. He's quite capable of managing a to-do list." It's challenging that construct again. For a lot of people, that's uncomfortable because that's a concept that we've just stuck with for years.

Nick Muldoon:

This is going to lead to a lot of change. I guess I've been thinking with respect to remote, Dom, I've been thinking much more about the mechanics of remote work and logistics around pay scales, and geographic location, and pay, and all this sort of stuff. But you're really opening my eyes to a whole different aspect. There are, in many large organizations, there are a lot of middle managers, and if these roles are no longer valuable, what do all these people do, and how do we help them find something that they love and that they long for? Because presumably they've not longing for-

Dom Price:

Yeah, that's the thing.

Nick Muldoon:

... task management.

Dom Price:

Yeah, yeah. They're probably not deeply entrenched in that as being something they're passionate about, right? It's just like they found themselves in this role. This is the interesting thing. If you look at rescaling, I've been looking at rescaling for a few years as a trend, right? How do we look at the rate of change in both technology, people practice, whatever else? That means that we're all going to have to rescale, right? The idea of education being up until the age of 21, and then you're working 45 years doesn't exist, right? So lifelong learning. You look at that, and you go ... Amazon did a great example last year. Bezos and Amazon put aside a billion dollars to retrench a thousand people that they were going to dispose. Right?

Nick Muldoon:

Yeah, yeah, yeah.

From their warehouses, right?

Dom Price:

Yeah, yeah. They're on automation to displace those people. What was came out recently and said, there's I think, it's like 1,500 people who will be displaced because they're going for fully autonomous distribution centers. They're looking to retrain those people and redeploy them elsewhere. You're like, "Cool, how are we doing that?" The reason I mentioned it is I think we assume it for low skilled, high volume tasks, because that's associate what we've associated with technology disruption in the past. But if you think about it, there was I think about a year and a half ago, McKinsey had a report called The Frozen Middle Layer. It was about how this frozen middle layer was going to thaw and be exposed, right, as these middle managers. There's thousands of them. That phrase, the middle layer, COVID just poured the icing on that. Right? [inaudible 00:53:26]. They're all going, "What? Me? No, no, I've only got 10 years left in my career. Let me sit here, manage a few tasks. I'll take inflationary pay rise every year. I won't cause any trouble." You're like, "I don't know. You can retrain here."

Dom Price:

These people haven't been engineered to think about retraining before. They've been engineered to think about comfort and conservatism and safety. I think we need to appreciate that they still have value in the workplace. I just don't think it's the old value. For them, the four Ls-

Nick Muldoon:

This is going to be a huge shock to this frozen middle layer, as McKinsey called it. I think about so we're Wollongong, Port Kembla. We're in a working class, steel town, and over the course of, pick a number, over the course of 25, 30 years, 20,000, 22,000 people have been let go from the steelworks and they're been told to retrain. I'm sure a portion of them do, but a lot of them that are older, like you're talking about someone that's in their 50s that's got 10 years on their career, right, they probably just took early retirement, and maybe they found something else to do in the community, whatever it happens to be. What are the structures that we provide for this huge crew of people to get them re-skilled in our businesses so that we don't lose the tacit knowledge and get on to the next thing? How's Atlassian thinking about this?

Dom Price:

It's also about front-loading it, right? We have to hold our head in shame as a general society, how light we leave it. When I hear stories about those steelworks closing down, and you're like, "Why are we surprised by that? Why are we surprised when Holden stopped developing cars in Australia? Really? But really, you're surprised?

Nick Muldoon:

We saw it coming.

Dom Price:

Yeah.

Nick Muldoon:

We propped up the car industry in Australia for 35 years.

Dom Price:

Yeah. You put tariffs on anyone importing to make your own industry look good, and then those tariffs go away, people are looking for cheaper. Unfortunately, we signed up for a global economy, right? It's a borderless business model that we're in, and whether you like that or not, it's what we signed up for. The reality is instead of reacting each time this happens when it's normally too late, how can we respond? How can we use these brilliant algorithms and data managing to go, "Here are world economic forum future skills, here are large employers, here are other skillsets about people." You try and give that out, and you're like, "These are the ones most at risk, and they're at risk over the next 18 months." Cool. Start retraining them now, but not when they're out of the job when they go, "Well, now, I'm out of my job. Now, what do we do?" You're like, "I don't know. Buddings? I don't know."

Dom Price:

We've got way more data and insights than we probably give ourselves credit for. I think one element is front-loading it, and the next one is saying, "How do we not recreate this problem again?" If you look in the US right now, the largest employer, not by company, but by job type is driver.

Nick Muldoon:

Okay. Yeah, by role. Yeah, yeah, yeah.

Dom Price:

By role, right? So Uber driver, truck drivers, manual drivers, people behind the wheel driving a vehicle. Where's billions of dollars worth of investment going in, Google, Amazon and every other? Right? Autonomous vehicles. You're like, "Cool."

Nick Muldoon:

Autonomous vehicles. Get rid of all those people?

Dom Price:

If I-

Nick Muldoon:

What are we doing to reskill those people?

Dom Price:

Yeah. Or even better, what are we doing in our education system to say, "How do we help people coming through the education system be more resilient with their future skills? I don't like the idea of being able to future-proof people. I don't think we've got a crystal ball, so let's part that. But how do we make people more resilient in their skills, well, all the skills we think will be required? World Economic Forum do great research every few years and publish it, and then I look at the education system, and I'm like, "That was built in 1960. We're tuning kids out that if you talk to.

Nick Muldoon:

Hey, hey, hey, Dom, okay, okay. I'm getting anxious at the moment. Let's end on a high note. What are things that make you optimistic for the next decade? All right? In 10 years time, how old are you going to be in 10 years time? Like 45 or something?"

Dom Price:

52.

Nick Muldoon:

52?

Dom Price:

Yeah.

Nick Muldoon:

Okay. Oh, yes.

Dom Price:

Getting old.

Nick Muldoon:

Yeah, okay. Yeah, okay. Okay, so when you're 52, what are you looking forward to over the next decade? What's exciting?

Dom Price:

There's a couple of things we need to realize, right? Very first thing we need to accept is our future is not predetermined, it's not written, and it's not waiting for us. Right? We design it and define it every single day with our actions and inactions. As soon as we have that acknowledgement, we don't sit here as a victim anymore and wait for it to happen to us. We go, "Oh, oh, yeah." Then like, "We have to decide on the future. No one else does. We collectively do." That's the first step. You're like, "Oh, I've got way more say in this than I ever realized." The second one is, we need to drop a whole load of stuff around productivity, and GDP, and all these things that we've been taught are great measures of success, and just be happy and content in life. If you've got four years left, I've probably got 30 something years left, I want to enjoy those 30 years. I have no vision of being buried in a gravestone somewhere with, "Dom was productive."

Nick Muldoon:

Dom, this is great. What we've got to do for society over the next 10 years is get society out of KPIs and into OKRs.

Dom Price:

Yeah.

Nick Muldoon:

Right?

Dom Price:

And get a balance out of going, "How ... This is what I've learned from COVID, right? You know this, I did 100 flights last year. I did a few at the start of the year and trip to the UK in the middle of COVID. But I've not traveled since June. Now, admittedly, the whole work from home thing, I'm going insane a little bit, but the balance of life, like sleeping in my bed every night, hanging out with friends, meaningful connections, right, actual community. I've lived in the same apartment for three years, and it took COVID for me to meet any of my neighbors, and it took COVID for me to meet the lovely ladies in the coffee shop downstairs. I'm like, "I've lived above you for three years, and it's only now you've become a person." Right?

Dom Price:

There's so much community and society aspects we can get out of this. The blank piece of paper, if you imagine this as a disruption that's happened to us, and there's no choice, and we can fight against it, that the options we have to actually make life better afterwards. Whether it be four-day working week experiments, or actually working from anywhere means that a whole other disabled, or working parents can get access to the workforce. Funny, if you get more done. Unemployment in the disabled community is 50% above that of the able-bodied community, not because of any mental ability, just because it's hard for them to fit .

Nick Muldoon:

Logistically. Yeah.

Dom Price:

You've just changed that, right, with this crazy experiment called COVID. If we start to tap into these pockets of goodness, and actually, we sees this as an opportunity to innovate, right, and I hate the P word of pivot, but forget pivoting, to genuinely innovate, what might the world look like, and how can we lean into that? How do we get balance between profit, and planet, and people, and climate, and all those things? If we do that, we've got a chance to build this now and build a future we want that we're actually proud of. I think the time is now for us to all stand up because it's not going to happen to us ... Or it will happen to us. If we choose to do nothing, it'll happen to us. It doesn't need to. I'm really excited because I think we're going to make some fundamental changes and challenges to old ways of working and old ways of living, and we'll end up happier because of it.

Nick Muldoon:

Don, I'm super jazzed, man. Thank you. I really appreciate your time today. That's a great place to finish it up.

Dom Price:

I hope some of those things come true.

Nick Muldoon:

Okay. I hope some of those things come true, right? I feel like the things that are in our power, the things that we can directly affect, takeaways for me, I've got extending the love and loathe into the love, loathe, long for and learned. I think that's great. I also like the boomerang versus the stick with respect to your time and what's on the calendar, and just jettison the stuff that is, well, it's not helping you, or the teams, or anyone else. Yeah.

Dom Price:

You could do it like [inaudible 01:01:33]. If it ends up being important, you can add it back.

Nick Muldoon:

Sure.

Dom Price:

[inaudible 01:01:38].

Nick Muldoon:

The big takeaway from this conversation for me is that it's in our hands. The choice, we make the decisions. It's in our hands. I think about, was Mark Twain, whether you think you can or whether you think you can't, you're right.

Dom Price:

Yeah. Yeah.

Nick Muldoon:

You might as well think you can and get on with it.

Dom Price:

Yeah, yeah, give it a red-hot stab and see what happens.

Nick Muldoon:

All right, cool. Don, thanks so much for your time this morning. Really appreciate it.

Dom Price:

It was great chatting.

‍

TL;DR

Henrik Kniberg, the agile coach behind Spotify's model, discusses how AI is fundamentally transforming software development. Key takeaways: AI tools like Cursor and Claude are enabling 10x productivity gains; teams should give developers access to paid AI tools and encourage experimentation; coding will largely disappear as a manual task within 3–4 years; teams will shrink to 2 people plus AI; sprints will become obsolete in favour of continuous delivery; product owners can now write code via AI, creating pull requests instead of user stories; the key is treating AI like a brilliant intern – when it fails, the problem is usually your prompt or code structure, not the AI. Bottom line: Learn to use AI now, or risk being left behind in a rapidly changing landscape.

Introduction

Artificial intelligence is fundamentally reshaping how software teams work, collaborate, and deliver value. But with this transformation comes questions: How do we maintain team morale when people fear being replaced? What happens to code quality when AI writes most of the code? Do traditional agile practices like sprints still make sense?

In this episode, I sit down with Henrik Kniberg to tackle these questions head-on. Henrik is uniquely positioned to guide us through this transition – he's the agile coach and entrepreneur who pioneered the famous Spotify model and helped transform how Lego approached agile development. Now, as co-founder of Abundly AI, he's at the forefront of helping teams integrate AI into their product development workflows.

This conversation goes deep into the practical realities of AI-powered development: from maintaining code review processes when productivity increases 10x, to ethical considerations around AI usage, to what cross-functional teams will look like in just a few years. Henrik doesn't just theorise – he shares real examples from his own team, where their CEO (a non-coder) regularly submits pull requests, and where features that once took a sprint can now be built during a 7-minute subway ride.

Whether you're a developer wondering if AI will replace you, a product owner looking to leverage these tools, or a leader trying to navigate this transformation, this episode offers concrete, actionable insights for thriving in the AI era.

About Our Guest

Henrik Kniberg is an agile coach, author, and entrepreneur whose work has shaped how thousands of organisations approach software development. He's best known for creating the Spotify model – the squad-based organisational structure that revolutionised how large tech companies scale agile practices. His work at Spotify and later at Lego helped demonstrate how agile methodologies could work at enterprise scale whilst maintaining team autonomy and innovation.

Henrik's educational videos have become legendary in the agile community. His "Agile Product Ownership in a Nutshell" video, created over a decade ago, remains one of the most-watched and shared resources for understanding product ownership, with millions of views. His ability to distil complex concepts into simple, visual explanations has made him one of the most accessible voices in agile education.

More recently, Henrik has turned his attention to the intersection of AI and product development. As co-founder of Abundly AI, he's moved from teaching about agile transformation to leading AI transformation – helping companies and teams understand how to effectively integrate generative AI tools into their development workflows. His approach combines his deep understanding of team dynamics and agile principles with hands-on experience using cutting-edge AI tools like Claude, Cursor, and GitHub Copilot.

Henrik codes daily using AI and has been doing so for over two and a half years, giving him practical, lived experience with these tools that goes beyond theoretical understanding. He creates educational content about AI, trains teams on effective AI usage, and consults with organisations navigating their own AI transformations. His perspective is particularly valuable because he views AI through the lens of organisational change management – recognising that successful AI adoption isn't just about the technology, it's about people, culture, and process.

Based in Stockholm, Sweden, Henrik continues to push the boundaries of what's possible when human creativity and AI capabilities combine, whilst maintaining a pragmatic, human-centred approach to technological change.

Transcript

Note: This transcript has been lightly edited for clarity and readability.

Maintaining Team Morale and Motivation in the AI Era

Tenille Hoppo: Hi there, team, and welcome to this new episode of the Easy Agile Podcast. My name is Tenille Hoppo, and I'm feeling really quite lucky to have an opportunity to chat today with our guest, Henrik Kniberg.

Henrik is an agile coach, author, and entrepreneur known for pioneering agile practices at companies like Spotify and Lego, and more recently for his thought leadership in applying AI to product development. Henrik co-founded Abundly AI, and when he isn't making excellent videos to help us all understand AI, he is focused on the practical application of generative AI in product development and training teams to use these technologies effectively.

Drawing on his extensive experience in agile methodologies and team coaching, Henrik seems the perfect person to learn from when thinking about the intersection of AI, product development, and effective team dynamics. So a very warm welcome to you, Henrik.

Henrik Kniberg: Thank you very much. It's good to be here.

Tenille: I think most people would agree that motivated people do better work. So I'd like to start today by touching on the very human element of this discussion and helping people maintain momentum and motivation when they may be feeling some concern or uncertainty about the upheaval that AI might represent for them in their role.

What would you suggest that leaders do to encourage the use of AI in ways that increase team morale and creativity rather than risking people feeling quite concerned or even potentially replaced?

Henrik: There are kind of two sides to the coin. There's one side that says, "Oh, AI is gonna take my job, and I'm gonna get fired." And the other side says, "Oh, AI is going to give me superpowers and give us all superpowers, and thereby give us better job security than we had before."

I think it's important to press on the second point from a leader's perspective. Pitch it as this is a tool, and we are entering a world where this tool is a crucial tool to understand how to use – in a similar way that everyone uses the Internet. We consider it obvious that you need to know how to use the Internet. If you don't know how to use the Internet, it's going to be hard.

"I encourage people to experiment, give them access to the tools to do so, and encourage sharing. And don't start firing people because they get productive."

I also find that people tend to get a little bit less scared once they learn to use it. It becomes less scary. It's like if you're worried there's a monster under your bed, maybe look under your bed and turn on the lights. Maybe there wasn't a monster there, or maybe it was there but it was kind of cute and just wanted a hug.

Creating a Culture of Safe Experimentation

Tenille: I've read that you encourage experimentation with AI through learning – I agree it's the best way to learn. What would you encourage leaders and team leaders to do to create a strong culture where teams feel safe to experiment?

Henrik: There are some things. One is pretty basic: just give people access to good AI tools. And that's quite hard in some large organisations because there are all kinds of resistance – compliance issues, data security issues. Are we allowed to use ChatGPT or Claude? Where is our data going? There are all these scary things that make companies either hesitate or outright try to stop people.

Start at that hygiene level. Address those impediments and solve them. When the Internet came, it was really scary to connect your computer to the Internet. But now we all do it, and you kind of have to, or you don't get any work done. We're at this similar moment now.

"Ironically, when companies are too strict about restricting people, then what people tend to do is just use shadow AI – they use it on their own in private or in secret, and then you have no control at all."

Start there. Once people have access to really good AI tools, then it's just a matter of encouraging and creating forums. Encourage people to experiment, create knowledge-sharing forums, share your own experiments. Try to role-model this yourself. Say, "I tried using AI for these different things, and here's what I learned." Also provide paths for support, like training courses.

The Right Mindset for Working with AI

Tenille: What would you encourage in team members as far as their mindset or skills go? Certainly a nature of curiosity and a willingness to learn and experiment. Is there anything beyond that that you think would be really key?

Henrik: It is a bit of a weird technology that's never really existed before. We're used to humans and code. Humans are intelligent and kind of unpredictable. We hallucinate sometimes, but we can do amazing things. Code is dumb – it executes exactly what you told it to do, and it does so every time exactly the same way. But it can't reason, it can't think.

Now we have AI and AI agents which are somewhere in the middle. They're not quite as predictable as code, but they're a lot more predictable than humans typically. They're a lot smarter than code, but maybe not quite as smart as humans – except for some tasks when they're a million times smarter than humans. So it's weird.

You need a kind of humble attitude where you come at it with a mindset of curiosity. Part of it is also to realise that a lot of the limitation is in you as a user. If you try to use AI for coding and it wrote something that didn't work, it's probably not the model itself. It's probably your skills or lack of skills because you have to learn how to use these tools. You need to have this attitude of "Oh, it failed. What can I do differently next time?" until you really learn how to use it.

"There can be some aspect of pride with developers. Like, 'I've been coding for 30 years. Of course this machine can't code better than me.' But if you think of it like 'I want this thing to be good, I want to bring out the best in this tool' – not because it's going to replace me, but because it's going to save me a tonne of time by doing all the boring parts of the coding so I can do the more interesting parts – that kind of mindset really helps."

Maintaining Code Quality and Shared Understanding

Tenille: Our team at Easy Agile is taking our steps and trying to figure out how AI is gonna work best for us. I put the question out to some of our teams, and there were various questions around people taking their first steps in using AI as a co-pilot and producing code. There are question marks around consistency of code, maintaining code quality and clean architecture, and even things like maintaining that shared understanding of the code base. What advice do you have for people in that situation?

Henrik: My first piece of advice when it comes to coding – and this is something I do every day with AI, I've been doing for about two and a half years now – is that the models now, especially Claude, have gotten to the level where it's basically never the AI's fault anymore. If it does anything wrong, it's on you.

You need to think about: okay, am I using the wrong tool maybe? Or am I not using the tool correctly?

For example, the current market leader in terms of productivity tools with AI is Cursor. There are other tools that are getting close like GitHub Copilot, but Cursor is way ahead of anything else I've seen. With Cursor, it basically digs through your code base and looks for what it needs.

But if it fails to find what it needs, you need to think about why. It probably failed for the same reason a human might have failed. Maybe your code structure was very unstructured. Maybe you need to explain to the AI what the high-level structure of your code is.

"Think of it kind of like a really smart intern who just joined your team. They're brilliant at coding, but now they got confused about something, and it's probably your code – something in it that made it confused. And now you need to clarify that."

There are ways to do that. In Cursor, for example, you can create something called cursor rules, which are like standing documents that describe certain aspects of your system. In my team, we're always tweaking those rules. Whenever we find that the AI model did something wrong, we're always analysing why. Usually it's our prompt – I just phrased it badly – or I just need to add a cursor rule, or I need to break the problem down a little bit.

It's exactly the same thing as if you go to a team and give them this massive user story that includes all these assumptions – they'll probably get some things wrong. But if you take that big problem and sit down together and analyse it and split it into smaller steps where each step is verifiable and testable, now your team can do really good work. It's exactly the same thing with AI.

Addressing the Code Review Bottleneck

Tenille: One of our senior developers found that he was outputting code at a much greater volume and faster speed, but the handbrake he found was actually their code review processes. They were keeping the same processes they had previously, and that was a bit of a handbrake for them. What kind of advice would you have there?

Henrik: This reminds me of the general issue with any kind of productivity improvement. If you have a value stream, a process where you do different parts – you do some development, some testing, you have some design – whenever you take one part of the process and make it super optimised, the bottleneck moves to somewhere else.

If testing is no longer the bottleneck, maybe coding is. And when coding is instant, then maybe customer feedback – or lack of customer feedback – is the bottleneck. The bottleneck just keeps moving. In that particular case, the bottleneck became code review. So I would just start optimising that. That's not an AI problem. It's a process problem.

Look at it: what exactly are we trying to do when we review? Maybe we could think about changing the way we review things. For example, does all code need to be reviewed? Would it be enough that the human who wrote it and the AI, together with the human, agree that this is fine? Or maybe depending on the criticality of that change, in some cases you might just let it pass or use AI to help in the reviewing process also.

"I think there's value in code review in terms of knowledge sharing in a large organisation. But maybe the review doesn't necessarily need to be a blocking process either. It could be something you go back and look at – don't let it stop you from shipping, but maybe go back once per week and say, 'Let's look at some highlights of some changes we've made.'"

We produce 10 times more code than in the past, so reviewing every line is not feasible. But maybe we can at least identify which code is most interesting to look at.

Ethical Considerations: Balancing Innovation with Responsibility

Tenille: Agile emphasises people over process and delivering value to customers. Now with AI in the mix, there's potential for raising some ethical considerations. I'm interested in your thoughts on how teams should approach these ethical considerations that come along with AI – things like balancing rapid experimentation against concerns around bias, potential data privacy concerns.

Henrik: I would treat each ethical question on its own merits. Let me give you an example. When you use AI – let's say facial recognition technology that can process and recognise faces a lot better than any human – I kind of put that in the bucket of: any tool that is really useful can also be used for bad things. A hammer, fire, electricity.

That doesn't have so much to do with the tool itself. It has much more to do with the rules and regulations and processes around the tool. I can't really separate AI in that sense. Treat it like any other system. Whenever you install a camera somewhere, with or without AI, that camera is going to see stuff. What are you allowed to do with that information? That's an important question. But I don't think it's different for AI really, in that sense, other than that AI is extremely powerful. So you need to really take that seriously, especially when it comes to things like autonomous weapons and the risk of fraud and fake news.

"An important part of it is just to make it part of the agenda. Let's say you're a recruitment company and you're now going to add some AI help in screening. At least raise the question: we could do this. Do we want to do this? What is the responsible way to do it?"

It's not that hard to come up with reasonable guidelines. Obviously, we shouldn't let the AI decide who we're going to hire or not. That's a bad idea. But maybe it can look at the pile of candidates that we plan to reject and identify some that we should take a second look at. There's nothing to lose from that because that AI did some extra research and found that this person who had a pretty weak CV actually has done amazing things before.

We're actually working with a company now where we're helping them build some AI agents. Our AI agents help them classify CVs – not by "should we hire them or not," but more like which region in Sweden is this, which type of job are we talking about here. Just classifying to make it more likely that this job application reaches the right person. That's work that humans did before with pretty bad accuracy.

The conclusion was that AI, despite having biases like we humans do, seemed to have less biases than the human. Mainly things like it's never going to be in a bad mood because it hasn't had its coffee today. It'll process everybody on the same merits.

I think of it like a peer-to-peer thing. Imagine going to a doctor – ideally, I want to have both a human doctor and an AI doctor side by side, just because they both have biases, but now they can complement each other. It's like having a second opinion. If the AI says we should do this and the doctor says, "No, wait a second," or vice versa, having those two different opinions is super useful.

Parallels Between Agile and AI Transformations

Tenille: You're recognised as one of the leading voices in agile software development. I can see, and I'm interested if you do see, some parallels between the agile transformations that you led at Spotify and Lego with the AI transformations that many businesses are looking at now.

Henrik: I agree. I find that when we help companies transition towards becoming AI native, a lot of the thinking is similar to agile. But I think we can generalise that agile transformations are not really very special either – it's organisational change.

There are some patterns involved regardless of whether you're transitioning towards an agile way of working or towards AI. Some general patterns such as: you've got to get buy-in, it's useful to do the change in an incremental way, balance bottom-up with top-down. There are all these techniques that are useful regardless. But as an agilist, if you have some skills and competence in leading and supporting a change process, then that's going to be really useful also when helping companies understand how to use AI.

Tenille: Are you seeing more top-down or bottom-up when it comes to AI transformations?

Henrik: So far it's quite new still. The jury's not in yet. But so far it looks very familiar to me. I'm seeing both. I'm seeing situations where it's pure top-down where managers are like "we got to go full-out AI," and they push it out with mixed results. And sometimes just completely bottom-up, also with mixed results.

Sometimes something can start completely organically and then totally take hold, or it starts organically and then gets squashed because there was no buy-in higher up. I saw all of that with agile as well. My guess is in most cases the most successful will be when you have a bit of both – support and guidance from the top, but maybe driven from the bottom.

"I think the bottom-up is maybe more important than ever because this technology is so weird and so fast-moving. As a leader, you don't really have a chance if you try to control it – you're going to slow things down to an unacceptable level. People will be learning things that you can't keep up with yourself. So it's better to just enable people to experiment a lot, but then of course provide guidance."

AI for Product Owners: From Ideation to Pull Requests

Tenille: You're very well known for your guidance and for your ability to explain quite complex concepts very simply and clearly. I was looking at your video on YouTube today, the Agile Product Ownership in a Nutshell video, which was uploaded about 12 years ago now. Thinking about product owners, there's a big opportunity now with AI for generating ideas, analysing data, and even suggesting new features. What's your advice for product owners and product managers in using AI most effectively?

Henrik: Use it for everything. Overuse it so you can find the limits. The second thing is: make sure you have access to a good AI model. Don't use the free ones. The difference is really large – like 10x, 100x difference – just in paying like $20 per month or something. At the moment, I can particularly strongly recommend Claude. It's in its own category of awesomeness right now. But that of course changes as they leapfrog each other. But mainly: pay up, use a paid model, and then experiment.

For product owners, typical things are what you already mentioned – ideation, creating good backlog items, splitting a story – but also writing code. I would say as a PO, there is this traditional view, for example in Scrum, that POs should not be coding. There's a reason for that: because coding takes time, and then as PO you get stuck in details and you lose the big picture.

Well, that's not true anymore. There are very many things that used to be time-consuming coding that is basically a five-minute job with a good prompt.

"Instead of wasting the team's time by trying to phrase that as a story, just phrase it as a pull request instead and go to the team and demonstrate your running feature."

That happened actually today. Just now, our CEO, who's not a coder, came to me with a pull request. In fact, quite often he just pushes directly to a branch because it's small changes. He wants to add some new visualisation for a graph or something in our platform – typically admin stuff that users won't see, so it's quite harmless if he gets it wrong.

He's vibe coding, just making little changes to the admin, which means he never goes to my team and says, "Hey, can you guys generate this report or this graph for how users use our product?" No, he just puts it in himself if it's simple.

Today we wanted to make a change with how we handle payments for enterprise customers. Getting that wrong is a little more serious, and the change wasn't that hard, but he just didn't feel completely comfortable pushing it himself. So he just made a PR instead, and then we spent 15 minutes reviewing it. I said it was fine, so we pushed it.

It's so refreshing that now anybody can code. You just need to learn the basic prompting and these tools. And then that saves time for the developers to do the more heavyweight coding.

Tenille: It's an interesting world where we can have things set up where anyone could just jump in and with the right guardrails create something. It makes Friday demos quite probably a lot more interesting than maybe they used to be in the past.

Henrik: I would like to challenge any development team to let their stakeholders push code, and then find out whatever's stopping you from doing that and fix that. Then you get to a very interesting space.

Closing the Gap Between Makers and Users

Tenille: A key insight from your work with agile teams in the past has been to really focus on minimising that gap between maker and user. Do you think that AI helps to close that gap, or do you think it potentially risks widening it if teams are focusing too much on AI predictions and stop talking to their customers effectively?

Henrik: I think that of course depends a lot on the team. But from what I've seen so far, it massively reduces the gap. Because if I don't have to spend a week getting a feature to work, I can spend an hour instead. Then I have so much more time to talk to my users and my customers.

If the time to make a clickable prototype or something is a few seconds, then I can do it live in real time with my customers, and we can co-create. There are all these opportunities.

I find that – myself, my teams, and the people I work with – we work a lot more closely with our users and customers because of this fast turnaround time.

"Just yesterday I was teaching a course, and I was going home sitting on the subway. It was a 15-minute subway ride. I finally got a seat, so I had only 7 minutes left. There's this feature that I wanted to build that involved both front-end and back-end and a database schema change. Well, 5 minutes later it was done and I got off the subway and just pushed it. That's crazy."

Of course, our system is set up optimised to enable it to be that fast. And of course not everything will work that well. But every time it does, I've been coding for 30 years, and I feel like I wake up in some weird fantasy every day, wondering, "Can I really be this productive?" I never would have thought that was possible.

Looking Ahead: The Future of Agile Teams

Tenille: I'd like you to put your futurist hat on for a moment. How do you see the future of agile teamwork in, say, 10 to 15 years time? If we would have this conversation again in 2035, given the exponential growth of AI and improvements over the last two to three years, what do you think would be the biggest change for software development teams in how they operate?

Henrik: I can't even imagine 10 years. Even 5 years is just beyond imagination. That's like asking someone in the 1920s to imagine smartphones and the Internet. I think that's the level of change we're looking at.

I would shorten the time a little bit and say maybe 3 or 4 years. My guess there – and I'm already seeing this transfer happen – is that coding will just go away. It just won't be stuff that we humans do because we're too slow and we hallucinate way too much.

But I think engineering and the developer role will still be there, just that we don't type lines of code – in the same way that we no longer make punch cards or we no longer write machine code and poke values into registers using assembly language. That used to be a big part of it, but no longer.

"In the future, as developers, a lot of the work will still be the same. You're still designing stuff, you're thinking about architecture, you're interacting with customers, and you're doing all the other stuff. But typing lines of code is something that we're gonna be telling our kids about, and they're not gonna believe that we used to do that."

The other thing is smaller teams, which I'm already seeing now. I think the idea of a cross-functional team of 5 to 7 people – traditionally that was considered quite necessary in order to have all the different skills needed to deliver a feature in a product. But that's not the case anymore. If you skip ahead 2 or 3 years when this knowledge has spread, I think most teams will be 2 people and an AI, because then you have all the domain knowledge you need, probably.

As a consequence of that, we'll just have more teams. More and smaller teams. Of course, then you need to collaborate between the teams, so cross-team synchronisation is still going to be an issue.

Also, I'm already seeing this now, but this concept of sprints – the whole point is to give a team some peace of mind to build something complex, because typically you would need a week or two to build something complex. But now, when it takes a day and some good prompting to do the same thing that would have taken a whole sprint, then the sprint is a day instead. If the sprint is a day, is there any difference between a sprint planning meeting and a daily standup? Not really.

I think sprints will just kind of shrink into oblivion. What's going to be left instead is something a little bit similar – some kind of synchronisation point or follow-up point. Instead of a sprint where every 2 weeks we sit down and try to make a plan, I think it'll be very much continuous delivery on a day-to-day basis. But then maybe every week or two we take a step back and just reflect a little bit and say, "Okay, what have we been delivering the past couple of weeks? What have we been learning? What's our high-level focus for the next couple of weeks?" A very, very lightweight equivalent of a sprint.

I feel pretty confident about that guess because personally, we are already there with my team, and I think it'll become a bit of a norm.

Final Thoughts: Preparing for the Future

Henrik: No one knows what's gonna happen in the future, and those who say they do are kidding themselves. But there's one fairly safe bet though: no matter what happens in the future with AI, if you understand how to use it, you'll be in a better position to deal with whatever that is. That's why I encourage people to get comfortable with it, get used to using it.

Tenille: I have a teenage daughter who I'm actually trying to encourage to learn how to use AI, because I feel like when I was her age, the Internet was the thing that was sort of coming mainstream. It completely changed the way we live. Everything is online now. And I feel like AI is that piece for her.

Henrik: Isn't it weird that the generation of small children growing up now are going to consider this to be normal and obvious? They'll be the AI natives. They'll be like, "Of course I have my AI agent buddy. There's nothing weird about that at all."

Tenille: I'll still keep being nice to my coffee machine.

Henrik: Yeah, that's good. Just in case, you know.

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Thank you to Henrik Kniberg for joining us on this episode of the Easy Agile Podcast. To learn more about Henrik's work, visit Abundly AI or check out his educational videos on AI and agile practices.

Subscribe to the Easy Agile Podcast on your favourite platform, and join us for more conversations about agile, product development, and the future of work.

"It was great chat about Kate's experience working in an agile environment, and learning what artificial intelligence looks like at Optus"

Kate shares her experience of an agile transformation at Optus and the incredible impact it has had on the company. Delivering faster & enabling a sense of ownership & accountability amongst teams.

Kate also shares some great advice from embracing hybrid roles throughout her career, a gentle reminder to never put limits on yourself and adopting a “no risk no return” mentality.

Be sure to subscribe, enjoy the episode 🎧

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Transcript

Hayley Rodd:

Well, thank you for joining us here on the Easy Agile Podcast. Here in Wollongong things are a little different from when we last had a chat. We've since been put into lockdown as part of the Greater Sydney region, but I'm delighted to bring you this podcast from here in Wollongong. And also it maybe helps ease some of those lockdown blues that you might be suffering if you're in the same part of the world as I am today or if you're in another part of the world that is maybe in the same predicament that we find ourselves here in Wollongong in. So, I'd like to introduce myself. So my name is Hayley Rodd and I am the product marketing manager or one of the product marketing managers here at Easy Agile. And I have a great guest today, an old friend of mine but before we kick off with the podcast, I'd like to say any acknowledgement of country.

Hayley Rodd:

So here at Easy Agile, we acknowledge the traditional custodians of the land where we work and we live. We celebrate the diversity of Aboriginal people and their ongoing cultures and connections to the land and waters of New South Wales. We pay our respects to elders past, present and emerging and acknowledge the Aboriginal and Torres Strait Islander people and their contribution to the development of this tool. And now, to our guest, Kate Brodie. Kate is an old friend of mine from here in The Ngong or Wollongong if you're not from this region. And has been very successful in her pursuit of a career in technology. So a little bit about Kate. Katie is the director of digital AI and CCAI programs at Optus. Kate is now based in Sydney, Australia and is a leader in AI, digital and new emerging technology. Katie is responsible for Optus's AI, digital, portfolio and chapter working in an agile environment every day today.

Hayley Rodd:

Kate leads the development of new products to take to market and scale routines in an agile environment advocating for build, measure, learn culture. Most recently, Kate has been in charge of leading an enterprise first to market API consulting chatbox in Australia, compatible with Google Home. So obviously Kate is an extremely impressive person and I wanted to chat to her today about her career and also her role in the Agile team. But beyond that, I wanted to touch on women in technology and leadership, something that Kate has spoken about recently with Vogue Australia. So, thanks so much to Kate for joining us today. And I can't wait to share some of the advice from the lessons that Kate has learned through her career. Thank you so much for joining me today, Kate. It's really wonderful to see you. So could you tell me a bit about, I guess what your day-to-day looks like when you're at the office?

Kate Brodie:

Yeah, thank you for having me. My day-to-day is quite varied. I would say that in my role, I'm very lucky to work with lots of different people, engineers, designers, business people, marketers and more recently a lot of different partners including Google. So, a lot of my day is working between different groups, strategically thinking about how we're going to continue to create a particular vision and future together for our customers. And then parts of it are related more to the technology and how we're ensuring that we've got our teams performing at a level that will allow us to meet those goals. And yeah, day-to-day, I'm talking to a lot of different.

Hayley Rodd:

So, when we were chatting just before we started recording, you were telling me a little bit about your start in marketing and now you've moved over to technology, can you tell me a little bit about how you don't want people to feel pigeonholed, I guess in their careers or in their career path?

Kate Brodie:

Yeah, absolutely. I really believe that anyone can get into anything if they put the effort behind it. And so I really think that no one should ever put limits on themselves. For me, it was partly because I was surrounded by really great people who supported me in trying lots of different things. And I think the way in which you build your confidence and start to move between different disciplines is by getting your hands dirty and just having a crack. So, I think it's important particularly and in this day and age for people to be open and not really put strong defined titles on themselves so that they do have a sense of freedom to kind of move around and try different roles because ultimately what is available today is probably going to look very different in 30 years time so... Yeah.

Hayley Rodd:

And do you still consider yourself a marketer or are you something, hybrid? What are you now?

Kate Brodie:

I would say that I am a technologist. I think that it requires the ability to have a bit of a marketing brain because you need to know how you're going to apply it in order to make a real impact, whether that's for customers, employees or commercially. But definitely with a strong kind of technology digital focus now, I wouldn't say that I would be purely seen as a marketer these days, but definitely it's about having that broad skill set and I think marketing's critical to being able to create great products.

Hayley Rodd:

Perfect. So, when I think of AI, I think of self-driving cars, someone who is very new to the technology industry myself. Could you unpack, I guess what AI means for Optus?

Kate Brodie:

Mm-hmm (affirmative). I think that what you've just said is shared by many. Artificial intelligence is just such a broad concept and it really is related to creating intelligent machines that can ultimately perform tasks or imitate behavior that we might consider human life. And so that can range from really narrow experiences like reading a brochure in a different language using AI to kind of rate it in the language that you can understand to kind of these macro experiences like you've just described with self-driving cars and completely changing the way that we travel. So, I think that AI is such a broad term where it will mean different things for different groups. At Optus, it's about creating lasting customer relationships with people and allowing them to connect with others. And so where we use AI in a variety of different places, it can be in our products themselves.

Kate Brodie:

So for instance, we just recently launched a really amazing product called Call Translate. And that's where in the call you can actually interact with people in different languages on that same phone call so breaking down those communication barriers that have existed before. So that's super exciting. And then there's other places where we're using it, for instance in our sales and service functions that we can more easily automate the simple tasks and give more time to our people to grow and create those types of relationships with our customers. So, we're using artificial intelligence in many different ways, but I think it's really exciting in everything that we do, it's more driven towards how can we create a better customer experience. It's not about the technology in of itself, which is what I really like about it.

Hayley Rodd:

Yeah. Nice. And it sounds like that that call translation would just... Could have so many applications and have... I'm even just thinking about in this COVID circumstance we... You're trying to get a message across to people to stay home and all those sorts of things like... Wow. Okay.

Kate Brodie:

Yeah. And there are some beautiful stories of people who are not able to go home with their young kids, travel home to their countries where their families are. And so they can have the grandkids talking to the grandparents more easily as they are learning different languages. So, it's really cool.

Hayley Rodd:

Wow. That's beautiful. So, in your title, there is, I, maybe assume it's an abbreviation, but it's somebody that says CCAI. Could you tell me what that is?

Kate Brodie:

CCAI stands for Contact Center Artificial Intelligence and it's actually a program of work that is used increasingly by different industries and refers to a particular product that Google is working with companies on. And so it's about re-imagining your contact center. So traditionally today banks, telecommunications companies, big organizations with lots of customers have a lot of customers that contact us regularly. And so this is a way of actually, how do we use AI to increasingly get to a point where you don't need to reach out to us but instead we're reaching out to you to better optimize your experiences with us. So, that's a little bit more of a program piece that's attached to my title at the moment.

Hayley Rodd:

Wonderful. So, prior to your current role, we're just going to get into the Agile space, which I know you seem extremely excited about at Optus and it's had some, I guess will be changes in the... Or it has some... Helped some massive changes at Optus. Before your current role what was your experience with that job?

Kate Brodie:

My current role and my experience with Agile has evolved. So, a couple of years ago, we rolled out Agile at a very large scale across our enterprise. So previously we had been using Agile in our IT teams for software development, but we actually started to roll out agile for product development. And I originally started as a product owner. So I was given a goal around creating a chatbot from scratch that would be supporting our teams. And with that, our Agile transformation involved breaking down the silos of divisions. So functional divisions. We started to merge into cross-functional squads and our squad was given the autonomy and the ownership to take on a particular initiative, and in my case, it was chatbot. And so I've actually experienced multiple roles within Agile including as a product owner and as a chapter lead, which was where I looked after a particular craft of people who run across multiple squads in Agile.

Kate Brodie:

And now more recently, I've got squads that are working within my area to produce these products and these outcomes for us. My experience with Agile has been brilliant. The amount of impact that it's had on our company is incredible. So, over the last couple of years, and this is pre COVID, we had a big target around moving towards a really digital led experience. And so we've seen our customers who used to choose digital around six...

Kate Brodie:

Around 65% of our customers would choose digital a couple of years ago and now it's more like 85%. So these big swings have come as a result of, I think, breaking down those silos and working in a more Agile way. Just on that I think what I like about Agile is that it's not about showcases and stand ups, it's actually about the culture that Agile allows for. So I think it allows for a lot more ideas and innovation because you have this mix of people who didn't traditionally sit with one another being together. And then also you can just deliver faster because you can cut through a lot of noise by working together. And the last piece I think is definitely that ownership and accountability for driving an outcome as opposed to delivering a piece of the puzzle, I think, yeah, Agile's been massive for us.

Hayley Rodd:

So, and you said that it was a big roll out across the organization. So does that mean that everyone within Optus works within an Agile framework or is there still sections that I guess don't employ Agile.

Kate Brodie:

There are areas of the business that aren't completely agile at this point in time. And I think they are areas of the business that makes sense. So sometimes in research and the like, you need to have a bit more freedom to sit back and ideate, although they would adopt principles of Agile so that they time box ideas and the like. From a delivery perspective, most of the organization has transformed into Agile delivery.

Hayley Rodd:

Wow. So it sounds like your customers would be seeing a lot of value from the organization transforming to Agile. You said before that there was a lot of people in your life who allowed you to do things you felt confident in your ability because I guess they helped you get there. So, has there been a mentor that I guess you look back on in your career or even now that has had an impact on where you are?

Kate Brodie:

I think that I've had a lot of different people who have been my mentor at different stages and who I would call upon now. So, I like to probably not have one mentor, but sort of look at the variety of people and their different skills and take a little bit of this, take a little bit of that, learn from this person on a particular area. There have definitely been some people who stand out. And so, early on one of the things that was really useful for me was being supported by a particular general manager who basically sort of pushed me into digital and technology and sort of, I was just very fortunate that he believed in me and said, "Now, you can run this area." I had never really been exposed to it. This is 10 years ago when digital was still sort of seen as more of a complimentary area as opposed to core, to a business.

Kate Brodie:

And by him supporting me in having a go at everything that's been... That's actually one of the most pivotal moments I would say in my career very early on that that's really led the way for me to increasingly get into the area that I'm in today. And along the way, obviously, there's been many people who have made a huge contribution to where I'm at and they're both in my career, but also outside. So, people that you play sport with people that you just have, that you share different stories with, I think that often you take a little bit from everyone and hopefully you give back something to those people too.

Hayley Rodd:

Yeah, I'm sure you do. So, is there any... Looking back on all those people that you've had throughout your life who have helped you get to where you are, is there a piece of advice that might have stuck with you that you could share with us?

Kate Brodie:

There's lots of different advice. I think one of them is, no risk no return. I really do think that you have to have a crack, you have to put yourself out there. The things that always been the most satisfying experiences have been by having a go at something that I hadn't done before. So I think no risk no return is something that I definitely subscribe to. And then in terms of some practical advice, particularly as a female, I think in your career, something called the assumptive close, which is a sales technique, around almost not asking if someone would like something but sort of implying that they would. I actually would say that I use that technique not to necessarily directly sell to someone, but in everything that I do and I would really encourage most people to use it. It was some early feedback in my career and it's been quite useful along the way.

Hayley Rodd:

Yeah. [inaudible 00:18:51] after working in real estate for a little while, I think a lot of real estate agents also assume the sale. So, and it just it... I think it can help with the confidence and going in there and I guess almost putting yourself in a position of power in the conversation when you assume you've got this in the bag. So yeah, it probably comes naturally to some people more than others, myself included, but I would struggle with that, but that's a really good piece of advice. So yeah, I'm sure that it will be helpful for a lot of people who are listening to the podcast now. So what about... What's your proudest moment as a leader there at Optus so far? I know that you're in Vogue recently. That's an amazing moment. And as a person who's known you for a really long time, that was a proud moment for me to see someone that I'd known do that, but for you, what's the proud moment?

Kate Brodie:

[inaudible 00:19:58] I think probably my proudest moment is when I've launched something large. So recently we launched a large piece of technology that will change the experience for our customers, but it wasn't as much the launch as it was looking around me and seeing the people that are there with me doing it. And there are quite a few amazing people that I get to work with. And having sort of started with a few of them in the early days, a few years ago, where we were sort of spitballing ideas and we had no products to now having large products that make a real impact to Australian consumers and to our business. It's those moments where it's actually the team around you that it... I'm most proud of. It's just the high engagement and the drive and the culture that we've created where people want to work in this area and we all enjoy creating these experiences together. So I think definitely I'm most proud of the team culture and environment that we've set.

Hayley Rodd:

Yeah. Sounds amazing. We're lucky enough here at Easy Agile to have, I guess the same... A culture that you can be proud of as well, so, I can understand how it can be something that makes a huge impact every day. So, we're getting close to the end of our time together, but again, I guess I wanted to touch on a bit of gender diversity. So how does gender diversity benefit technology companies? What do you think?

Kate Brodie:

I think diversity in general is going to benefit any business and particularly technology businesses, because it's imperative that you have a representation of the population and the people that will use your technology and the experiences that you're trying to create. So I think that it's only by ensuring that we are tapping into the entire talent pool, that we can represent people and represent customers, but also we're going to get the best ideas. And so that's gender diversity but also culturally and in every sort of facet, the more that we can tap into the entire talent pool, the more we'll create better experiences, better technology, solve more of the world's problems and capture more opportunities.

Hayley Rodd:

Mm. Fantastic. And last question, what advice would you give a young woman hoping to enter the technology industry or a technology company?

Kate Brodie:

I would say go for it. I would say don't ever put limits on yourself and speak up, learn as much as you can and get your hands dirty because it's through that kind of confidence... Oh, sorry. It's through working with lots of different people and creating things with people from scratch that you'll gain your confidence as well. And always ask, don't sit there waiting for someone to sort of tap you on the shoulder, ask for that new opportunity, ask for the salary increase, ask, it won't hurt. I promise.

Hayley Rodd:

That's a good advice. What's the worst they could say?

Kate Brodie:

No, exactly.

Hayley Rodd:

No, yeah.

Kate Brodie:

Yeah. And that's why.

Hayley Rodd:

Or they might say yes. And then that's awesome too. Okay. Well, thank you so much, Kate, for your time. That was really wonderful. It was wonderful to catch up, but it was also wonderful to hear from someone who's so young in their career, has... But has also done so much and who has reached some amazing goals, has a team behind them. And I think that there's so many people who will watch this, myself included, who will learn a lot from you. So I really appreciate your time. Thank you.

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