What did I learn from playing Counter Strike as a kid?

This is me at The Gathering computer party 20 years ago competing in Counter Strike with my team.

I didn't know it then, but in this period of my life I built a foundation which I use to this day.

I learned that I couldn't win alone. Being in a team meant we were committed to a common goal, and we depended on each other to reach it. Put your own needs above the team, and we lost.

I got used to distributed and remote-only teams common in many companies today. We used Ventrilo and mIRC instead of Microsoft Teams and Slack. We met in person during the school holidays to get to know each other even better. The energy and mood in the basement when we won were unforgettable.

I didn't know about psychological safety back then, but we had it somehow. We had it because we stuck together over time through victories and losses. We learned each other's strengths and weaknesses and how to leverage it to our advantage. We respected and wished each other well. I learned that teams take time to form and become effective.

I didn't know about Tuckman's forming, storming, norming and performing stages, but I now know from my experience back then that the model is not linear. In one moment we were high-performing rock stars, but in the next we were middle in a storm. Nurturing a team is a continuous never-ending job.

I always go externally to learn from the best in class, just as we did 20 years ago playing Counter Strike. As a team we didn't start off great. We learned and became better by playing games and studying HLTV recordings from the best teams and players in the world.

I learned the importance of having a game plan, but more importantly how and when to change and adapt it when the circumstances required it. We had a plan A, B and C and when none of them worked out we relied purely on experience and intuition.

I learned that great skills and experience was not enough, it also depended on the surrounding environment. The graphics card, screen, mouse, mouse pad, configurations, headphones, and chair mattered, a lot. We needed the right tools and a support system around us. Parents cooking dinner and transporting us and our computers to wherever we needed to be.

So want to learn more about teams? Play computer games!

Beyond Budgeting

Believing that Beyond Budgeting is just about budgets is as wrong as believing that agile is just about software.

How do we define performance and how can we best enable the organization to deliver that performance? That's what Beyond Budgeting boils down to.

It addresses both leadership principles and management processes, and the importance of the coherence between the two.

Beyond Budgeting separates the budgeting purposes and solve them in three different processes because they are about different things. We can then let each process run on a rhythm much better suited to each purpose and to the kind of business we are in.

Target

An aspiration, what we want to happen. Difficult when there is a lot of uncertainty. You must make assumptions. 

It doesn't help to hit 12.7% if most competitors are delivering better. What we want is the best possible performance, given the circumstances. 

A football team will not state that the ambition for the next season is to score 45 goals and reach 39 points. It is all about performing well against, and hopefully better than, the other teams.

Forecast

What we think will happen, whether we like what we see or not. 

The purpose is to support decision making. The further ahead we look in forecasting, the more uncertainty there is. We then need to forget precision and think more in terms of scenarios and ranges. 

Sometimes we must also accept that we don't have a clue about what lies ahead. Focus on creating options and agility so that we can move fast when the fog clears.

Resource allocation

Optimization of scarce resources, what does it take to make it happen? 

We want to move from questions like "Do I have a budget for this?" towards "How much value will this create?" and "Can we afford this as things look today?". 

Leave behind a myopic focus on low cost in favor of a more value-oriented thinking. There are both "good" and "bad" costs. Good costs create value, and bad costs don't. Spending is fine, wasting is not.

Separating target setting, forecasting and resource allocation should never be done sequentially. It must happen simultaneously.

How do we evaluate performance?

Performance evaluation must be holistic. Not everything that counts can be counted, and not everything that can be counted counts. 

The "I" in KPI stands for "Indicator", not "Truth". 
  • How did we achieve our results? 
  • How ambitious were the targets? 
  • Was there a headwind or tailwind? 
  • Which risks were taken? 
  • How sustainable are the results? 

These evaluation questions require more effort than comparing two numbers.

Hitting a target does not necessarily mean that this was the best performance possible because it assumes that the "right" target was set.

Beyond Budgeting is a journey where the direction is clearer than the destination, if there is one.

Changing what we do helps little unless we also change how we think. That is the hardest part.

"This is Beyond Budgeting" by Bjarte Bogsnes

The Inevitable

Do you think a lot about technological imperatives that will shape the next thirty years and transform our lives?

Kevin Kelly does. Much of what will happen in the next three decades is inevitable, driven by technological trends that are already in motion.

Cheap, powerful, invisible, and omnipresent AI

It's hard to imagine anything that would "change everything" as much as cheap, powerful, invisible, omnipresent AI. Everything that we formerly electrified we will cognify.

We will surrender piece by piece of what is supposedly unique about humans, and we will face an identity crisis. 

The greatest benefit of the arrival of AI is that AI will help define humanity. We now question what humans are good for, what makes us special, and what is it that humans want to do. We need AI to tell us who we are. AI will help us better understand what we mean by intelligence in the first place.

Everyone will have access to a personal robot, but simply owning one will not guarantee success. Success will go to those who best optimize the process of working with AI bots and machines.

New interactions

In the coming 30 years, anything that is not intensely interactive will be considered broken. The future of technology resides, in large part, in the discovery of new interactions. 

We will use more of our body and senses to communicate with machines.

Computers are getting closer and closer to us. Computers have evolved from the basement, to smaller rooms, to our desk, to our laps, into our pockets, and now laid against on our skins (wearables). The only way to get closer than that is to go under the skin.

Personalization and instant access

We are going to pay for personalization and instant access. Anywhere we want personalization, new filtering inventions will follow. We need to pay attention to more and more sources to do our jobs and to learn. We need real-time filters upon filters to navigate the explosion of infinite choices. The filters will tell us what we want.

Hardware and software

Hard things will behave more like software due to embedded intelligence – there are so many more ways to provide a service than a hard product.

The truth?!

What's the truth?! The truth is not delivered by authors and authorities anymore but is assembled in real time piece by piece by yourself.

You make your own content and construct your own truth from the liquid stream of facts flowing through the web (hyperlinks, text, videos, images, sound). For every expert you will find an anti-expert. We have to constantly question what we think we know.

The status of creation will be inverted, so that the users, you, become the new creators. You will be a creator of digital products and content used to do your job.

Do we need more answers or better questions?

Technologies that help generate questions will be valued more. Question makers will be the engines that generate new fields. Questioning is simply more powerful than answering.

"The Inevitable" by Kevin Kelly

Wild west to Agile

History's role is not to help us predict the future, but to prepare us for it. 

Today we talk about product management, agile, waterfall, projects, iterative and measures of success. I enjoy putting this in a historical context. Because those who fail to learn from history are condemned to repeat it. History can help us prepare for the future. Jim Highsmith's career over the last six decades is a good start.

Wild West (1966-1979)

Software engineering was in its infancy and the knowledge of how to software development negligible. Software project success was measured by completion and cost. Businesses operated on the premise that the world was predictable and if plans failed to materialize, the problem was execution, not planning. Change was the "unusual state".

Structured Methods and Monumental Methodologies (1980 - 1989)

This was an era where management theory was firmly stuck in the command-control model. IT projects were generally viewed as out of control. Managers assumed building software was similar to building a warehouse. They often knew little about the value of IT systems, even though productivity increased, and focused therefore on "out of control" cost and schedule overruns. 

Structured methods should bring discipline and control to software development.

But the attempt to go from the undisciplined Wild West to a more disciplined, formal approach overshot and focused on the wrong things - processes and documents. 

Formality was mistaken for discipline. Formal processes, phase reviews and documentation added a level of bureaucracy that overshadowed the benefits of structured techniques. It worked for tangible products and construction-type projects though.

The belief was that documentation was enough to convey all the information required by individuals in the next phase of work.

A paper by Winston Royce in 1970 is often credited with introducing the Waterfall model of software development (a term he never used in the paper). However, Royce did not advocate for the  model in its strict, linear form. He highlighted its limitations and risks, particularly the challenge of accommodating changes once the project is underway. To address these shortcomings he argued for feedback loops, overlapping development phases, and the need for more flexibility and adaptability.

But the waterfall lifecycle was greatly influenced by the surrounding ethos, manager's thinking and the serial "hardware" mindset of the times. Departments outside of IT also adapted their work to conform to the serial mindset. For example, accounting started to classify operating (OpEx) versus capital (CapEx) costs.

Too much structure reduced problem solving and innovation; too little created chaos and ineffectiveness.

The Roots of Agile (1990 - 2000)

Executives now cried for help. "It takes too long, costs too much, and doesn't meet our needs".

In response, software developers began experimenting with RAD (rapid application development) methodologies. They assembled a small team, delivered working software every week, and conducted "customer focus groups" every Friday to get feedback. This was about value, quality, speed, leadership, and collaboration.

The 1990s were the decade where software outsourcing to solve technical debt and the high-cost mess began to flourish. The assumption was that less expensive programming could be accomplished with minimal communication. But much of the outsourcing was based on the false premises of predictability and prescriptive practices.

Worse, it stripped internal IT teams of the expertise they would need in the coming Internet upheaval.

The methodology of software development continued to be deterministic and formal in the 1990s, but slivers of RAD and iterative development began to creep in, especially for rapidly expanding Internet applications.

The 1990s were the decade of process for IT. We sought not just perfection in the way we built software, but total predictability. It wasn't enough just to do things right, we also had to say in advance exactly what we intended to do, and then do exactly that.

The Agile Era (2001 - 2010)

Demand exploded. Acquiring and retaining technical talent proved difficult. Many companies didn't have the money or the talent pool to respond to the pressures of the 2000s. IT organizations faced pressure from the high costs. Companies had to innovate and expand their technical and product design capabilities.

Technical debt, which had been growing rapidly, was still almost invisible to business executives. IT struggled to convince business leaders to approve the investments required to reduce technical debt, thereby enabling continuous value delivery.

On February 11-13, 2001, 17 software developers met at the Snowbird ski resort in Utah to talk, ski, relax, and try to find common ground leading to the Agile manifesto.

Many software engineers were concerned about the nascent agile movement. They viewed agile development as a retreat to ad hoc practices of the past. But in reality, teams were highly disciplined, but worked somewhat informally. The emphasis shifted from documentation towards collaboration, replacing traditional formality.

From 2001 - 2004, individual teams received dispensation to try this "agile stuff". Teams focused on iterations, stories, daily stand-ups, backlogs and co-locating teams - but the core technical practices were often bypassed.

Agile projects' success was often downplayed by others: "it was just a small project", "it was a new project", "they didn't have to follow our standards". General comment from Agilists was "We don't need any project management". But the management of tasks rather than people was what they were complaining about.

From 2005 to 2010, success versus failure with organizational implementation of agile development rested with courageous executives who understood agility at their core. Courageous executives thrived on adventure, the corporate kind, and had the ability to sort through a myriad of opportunities, engage others with their enthusiasm, and demonstrate results through action.

Another success factor was that Agilists had enough background in change models to muddle through team-level implementations. At an enterprise level, it made a difference when they received help from organizational change experts.

Do we implement from top to bottom, or from bottom to top? Do we start with a few teams and user their experience to seed others, or do we "sheep dip" everyone? What was the strategy for moving agility up (the organizational hierarchy) and sideways? How do we instill both being agile and doing agile? Whose change model and approach do we use? Agilists were simply not experts in change management.

Other success factors were demonstrated business benefits, practices that appealed to engineers and a manifesto that stated a clear purpose and principles for the movement.

Digital Transformation (2011 - present)

The problem now wasn't scaling agile, it was scaling agility and innovation at enterprise levels.

Remember the lessons from agile projects: To change behavior and culture, you must change measures of success. Many managers wanted agility, but with traditional performance measures (planned scope, schedule and costs).

Over the last six decades, measures of software development success have evolved from completion to customer value. Nothing drives change like the way organizations measure success, but few things are harder to change than those measures.

The Digital Transformation period explored what becoming a digital enterprise meant. Enterprise executives developed digital strategies but found their transition from strategy to operating models lacking.

Enterprises today should be seeking to become digital transforming rather than to achieve digital transformation. Transformation indicates completion of a stage, whereas transforming suggests a constant state of becoming.

More than six decades of change have required organizations to constantly adapt by addressing the following areas:

  • Measures of success - this can drive or restrict change.
  • Being digital demands a better business and technology partnership.
  • An operating model linking strategy to action.
  • Creating a quickly malleable organizational model.
  • Management suited for the digital era.

Preparing for the future

Over the 60 years, have anyone notice the rate of change in the world, in technology, and in business slow down? Change has spiraled constantly upward, not only linearly, but bordering on exponentially.

One conclusion from history is that agility, not agile, should be the goal. Agility is a mindset; agile is a type of methodology. Failure to make this differentiation has left organizations with prescriptive methodologies, while leaders who embrace agility have the best chance of thriving in the future.

Change takes more than a one-day workshop. No one changes deeply held mental models easily. Even when organizations and managers intend to start the journey with the right mindset, many don't realize the magnitude and complexity of this transformation.

The root cause of success is people and their interactions, and the root cause of failure is also people and their interactions.

A letter to my younger self taking the role as a first-time leader

What advice do you wish you had when you pursued your first leadership role?

Steffan, you will now go from the guy making recommendations to the guy making decisions. You go from being an individual contributor to delivering through others. You now lead a team of people doing what you used to be good at, that got you promoted in the first place.

That's a big change. How to make good decisions, facilitate a meeting, craft a strategy or delegate work is not something that everyone naturally just know how to do. If you think they are natural abilities, then you might feel there's something wrong with you if you don't have them. Please don't. It's a skill you can learn. You will do mistakes, but over time you will nail it. Leadership is an education.

People is your work now. Invest time in them, be present, be available. Listen. Ask how you can help all the time. Then comes communication, communication, communication, setting budgets, performance reviews, 1:1 meetings, meetings with stakeholders, recruitment, setting goals, prioritize, help finding solutions on complex problems, solving conflicts.

Don't forget to take care of yourself. What gives you energy? What drains you for energy? What do you need to do yourself, and what can you delegate to others? Do one thing at a time. Use your team. Create a support system around you, and use it. Block time in your calendar to think and reflect.

Never create a bunch of tasks that you assign to your team for execution. Provide context, intent. Let your brilliant team and problem solvers define and own their tasks and actions. A good plan developed and understood by the team is better than a "brilliant" plan by you.

Don't stress if you don't have a vision on the first day. You are not Steve Jobs. Visions can be found. Find it together with your team and let it be the compass in everything you do. What would you like to achieve together? What's the future we are trying to create? How do we plan to accomplish that? Let it become theirs, not only yours.

Watch out for compromises in this process. If you try to come up with something that pleases everyone, you end up pleasing no one.

Steffan, you are not a super human and don't pretend to be one. You have your strengths, but also your weaknesses and gaps. Your job is to build a team and surround yourself with people closing those gaps. Your job is not to know everything.

There will be periods where you doubt yourself and question everything, but suddenly you will see someone on your team achieve more than they thought they were capable of.

You will see your team come together to solve impossible problems. You will see a team that would do anything to help each other out. Impact. That's the joy of leadership. That's your reward. That's the reason why you became a leader.

Good luck my friend!

Best Regards,

Steffan Sørenes, a year older and (somewhat) wiser