The Value Flywheel Effect: Power the Future and Accelerate Your Organization to the Modern Cloud

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There’s also another dimension to this. I’ve experienced squads that work with well-architected and commit to work through all the processes. And I have worked with teams that don’t engage. When you compare the two, they’re very different. Now that you’ve learned about what the Value Flywheel Effect is, let’s look at the 12 key tenets that support the Value Flywheel. (This post is adapted from The Value Flywheel Effect by David Anderson, with Mark McCann and Michael O’Reilly). The more the goal or north star of the organization moves to the left on the map (toward Genesis), the more unique that goal is on the market (and potentially more valuable). But, if the components below the goal are also situated too far to the left (i.e., if the elements needed to achieve the goal are still too expensive, require too much toil, etc.), then the business goal may seem too farfetched— it will not get the support required.

The Value Flywheel Effect: Power - OceanofPDF [PDF] [EPUB] The Value Flywheel Effect: Power - OceanofPDF

Every time they have a player drafted or win a championship, it becomes a more desirable school for the next round of players, and on it goes. Each win makes the next win slightly easier. In a group of more than three or four people, team dynamics start to take effect, and responsibilities require clarification (never mind teams with several hundred people). The software serves a market, which is usually represented abstractly too. Finally, there’s leadership, who need to understand all this context, shape a compelling purpose, and work it into a plan to reach an outcome. Organizations that recognize this will create a space for innovation. Small successes will breed larger success and spread through the organization like wildfire. This power and momentum will increase, and the path forward will become smoother. 9. The Value Flywheel EffectLearn how making work visible, value stream management, and flow metrics can affect change in your organization. Mark McCann: So these four are on the axis here. So stage one is genesis, as is illustrated there. That component that lives here is rare and poorly understood. It has a future value, but it’s uncertain whether we’ll ever make it to commodity. The user thinks of this as exciting and surprising. We treat it with wonder. Stage two is custom built. We know how to build this component here and we’re starting to learn about it. We’re starting to give a form of understanding of it. It’s in a forming market and we are learning how to make money from it. It’s leading edge and if you have it, you’re doing pretty well. Stage three is product and rental. Things are starting to heat up. It’s a growing market. It’s getting more competitive. These things are highly profitable and they need to be fit for purpose, as consumption is wide. Coverage Density. As Uber grows in a city, the outer geographic range of supplier liquidity increases and increases. Once again, Uber started in San Francisco proper. Today there is coverage from South San Jose all the way up to Napa. The more people that use Uber, the greater the coverage. The flywheel effect occurs in business, just as it does in machines, because of very deliberate building and linking together of capabilities to execute against articulated strategic objectives in such a way that a compounding return on effort is introduced, resulting in continued acceleration in business growth. Key Drivers Momentum Good architecture is often hard to define and measure; therefore, efficiency can be a strong measure here. And efficiency can also be represented as sustainability. Cloud providers are starting to measure the amount of carbon burned in a specific workload or system. Quite simply, if a team can reduce their carbon burn, they are providing a benefit to the customer, the company, and the environment.

Flywheel Effect: Positive Feedback Loops - Eric Jorgenson Flywheel Effect: Positive Feedback Loops - Eric Jorgenson

David Anderson: Yeah. The thing is… If I touch on Wardley Mapping for this. So for each of these phases, we have a suggestion on how you Wardley map this. For the first one, you Wardley map to gain situational awareness of the competitive environment you’re in, the market level. You’re putting the product on the market. Who else is in the market? What’s your differentiator? What’s your chance of success? There’s no point in having this fantastic organization with engineering product people going crazy and you’re going in the wrong direction. So that idea of Wardley Mapping to map your market is absolutely critical. An on-demand learning experience from the people who brought you The Phoenix Project, Team Topologies, Accelerate, and more. But really, what we’ve experienced is another layer, which is your problem prevention mindset. Things like well architected engineering excellence, standardisation, sustainability. They’re the real things that no one asks for. But they actually enable a lot.How do you measure the success and productivity of an engineering team? Which metrics should you use? What is engineering excellence, and how can you achieve it?

12 Key Tenets of the Value Flywheel Effect - IT Revolution

So it’s an interesting question, and it has multiple sub components to how you answer it. Because when you talk about enabling engineers in a big company like Liberty Mutual, you’re talking about large numbers of engineers. So it could be 1000s, across the globe, we’re talking about as opposed to maybe a couple of small teams. Direction alignment, enabling constraints and walking the walkPsychological safety is critical here, as it is the foundation for an environment that fosters success. Engineering requires collaboration, challenge, vulnerability, calculated risk-taking, and skill. A highly charged political environment will negatively impact the team’s success. Alternatively, a team-first environment, like in many sports, will lead to better results and engagement all around. And, the business metrics delivered became simply unbelievable: 95%+ runtime cost-savings, new functionality delivered months ahead of schedule, global rollout in weeks instead of years, innovative features leading the market and deploying multiple times a day. 6. The birth of the Serverless First Organization Strategy Then the second thing is you need enabling constraints, as Mark loves to call them. And that’s where you set up your guardrails so that it’s safe for people to experiment and go the direction you’ve set. They know there’s a maximum level of damage that they can cause.