Easy Agile Podcast Ep.21 LIVE from Agile2022!

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.

"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.

‍

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

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

In this episode, we spoke about;

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

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

Transcript

Robert O’Farrell:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Yeah, dojo. We have dojo. Yeah.

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Money doesn't bring happiness?

Leandro Barreto:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Yes, very much so.

Leandro Barreto:

The internet is starting, everything is new.

Robert O’Farrell:

People on dial-up, internet was slow.

Leandro Barreto:

Do you remember that sound like prshh?

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

Correct. Correct.

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

Work in progress

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

It's not what I want to do.

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

Yeah.

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Quite a collection.

Leandro Barreto:

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

Robert O’Farrell:

Yeah. Yes.

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

Yep. Psychological interference.

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

Exactly.

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Do you think that-

Leandro Barreto:

And-

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Situation.

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

Exactly.

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Inspirational.

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Yeah.

Leandro Barreto:

And... Yeah.

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

In Agile. Yeah.

Leandro Barreto:

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

Robert O’Farrell:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

Oh, that's the Chaos Monkey.

Leandro Barreto:

The Chaos Monkey.

Robert O’Farrell:

That was Netflix. Yeah. Yeah.

Leandro Barreto:

Netflix, yeah.

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

Yes. Yes. Right.

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

Exactly.

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

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

Leandro Barreto:

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

Robert O’Farrell:

You too. Cheers.

Leandro Barreto:

Cheers.

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