All organizations use cost accounting to report on their revenue, including profit and loss. We are so accustomed to using cost accounting that we don’t realize how it hides the truth about our progress. Worse, cost accounting creates and reinforces a culture of resource efficiency thinking. (In resource efficiency, the person is the unit of […]
I’ve heard that the AA/PMI wants to create a manifesto for enterprise agility. I’m not sure we need a manifesto, but that’s fine. Here are the necessary conditions for enterprise agility: A culture of flow efficiency thinking. That means everyone collaborates across the organization to optimize up for one overarching goal. Limited planning horizons, with
Your managers want to measure all kinds of interesting pieces of data to run the company well. Much of that is reflected in your organization’s Profit and Loss (P&L) statement. (There’s a great site with an explanation of a P&L statement.) Notice any organization’s three big numbers: Revenue, all the operating expenses, and net earnings.
This is the April 2025 Pragmatic Manager Newsletter, from Johanna Rothman. The Unsubscribe link is at the bottom of this email.Early in the agile community, people referred to the Product Owner as the “single wringable neck.” Somehow, if the product owner didn’t define the stories well, or create acceptance criteria, or even represent what someone
In How Centralization Decisions Create Friction, Increase Cycle Time, and Cost Money, Part 1, I discussed how removing support staff for departments and managers created longer cycle times. (And sometimes, increased friction so much that people could not easily do their jobs.) Removing those support staff was one indication the companies fell into the Economies
After I spoke with Chad and Jeff on the previous podcast, Deep Dive into Successful Independent Consulting with the Agile Wire, we spoke all about the idea of building products, starting with consulting-based products. See Building the Right Product with Johanna Rothman. Some of our discussion points: Consulting products: how to think about products for
Sid, a senior leader, wants the benefits of an agile transformation. While he doesn’t care about agility per se, he wants the organization to be more effective. His goals: Open new markets for their products. Gain new customers in those markets. Retain more current customers. He suspects that if the teams release faster, the organization can achieve those
Fred, a client, asked how I could help him get more work out of his resources. I asked if he meant people. He said yes. So I asked if he focused more on what each person did or if he focused on the team’s work. “Each person.” I smiled and said, “I have a deal
Acme, a software company, has a technical excellence problem. Its customers report more problems than the product teams do. Two managers, Cindy and David, want to bring specialized training in for product teams. (They want to help their teams learn to use Test-Driven Development, TDD, and Acceptance Test-Driven Development, ATDD. Cindy and David suspect that
A client wants to know how best to calculate their software capitalization. They had a “standard” approach when they used waterfall. They no longer have all waterfall projects. They’ve started to use agile approaches. And, the projects don’t all look the same. Being somewhere in the middle means they’re having trouble reasoning about capitalization. Why