Book Notes #44: Management 3.0 - Jurgen Appelo

Book Notes: Management 3.0 - Jurgen Appelo
The theoretical and practical blend of Management 3.0 is one of the most trusted agile management and agile software development books on the market.


Title: Jurgen Appelo
Author: James P. Womack, Daniel T. Jones
Themes: Leadership, Management, Business, Agile, Software, Lean
Year: 2010
Publisher: Pearson Education
ISBN: 0321718992, 9780321718990
Pages: 451

Are you tired of feeling bogged down by outdated management techniques? Look no further than "Management 3.0" by Jurgen Appelo. 

Agile development is often hindered by management in many organizations. There has been a lack of reliable guidance on Agile management, unfortunately. 

This revolutionary book delves into the latest strategies for leading a successful and efficient team in today's fast-paced business environment. 

From understanding the importance of employee empowerment to implementing agile methodologies, "Management 3.0" offers a fresh perspective on how to approach management. 

Get ready to revolutionize the way you think about management and lead your team to success!

Appelo fills that gap by offering a realistic approach to leading, managing, and growing your Agile team.

Appelo shares insights from modern complex systems theory, reflecting the complexity of modern software development, in his book for current managers and developers moving into management. 

Management 3.0 - Jurgen Appelo
Management 3.0 - Jurgen Appelo

The Management 3.0 model recognizes that today's organizations are living, networked systems, and that management is primarily about people and relationships.

Management 3.0 provides tools to solve problems, rather than checklists and prescriptions to follow slavishly. 

Using his extensive experience as an Agile manager, the author identifies and improves the most important practices of Agile management.

Book Notes: Management 3.0 - Jurgen Appelo

Management 3.0 is a management philosophy that emphasizes the importance of employee empowerment, agile methodologies, and a focus on creating a positive and productive work environment. 

The key ideas of Management 3.0 include:

 - Emphasizing self-organization and decentralization of decision-making.
 - Encouraging employee autonomy and ownership of their work.
 - Fostering a culture of continuous improvement and learning.
 - Promoting collaboration and open communication within teams.
 - Using agile methodologies to manage projects and workflows.
 - Performance management practices that focus on employee growth.
 - Promoting a balance between technical and human aspects of management.

Overall, the main idea behind Management 3.0 is that traditional top-down management approaches are outdated and ineffective in today's rapidly changing business environment. 

Instead, it advocates for a more collaborative and empowering management style that encourages employee engagement and creativity to drive business success.

A management 3.0 mindset is complemented by a collection of games, tools, and practices to help any worker manage any organization. This is a way of looking at work systems.

In Management 3.0, it is believed that 95 percent of an organization's performance is determined by the entire system, not the individual. 

Organizations need better and more effective leadership in order to succeed. Management 3.0 examines how to analyze that system to come up with the right solutions.

My Book Highlights:

"... The path for managers is clear: When they care about organizational survival, they need to care about innovation. When they care about innovation, they need to care about creativity. When they care about creativity, they need to care about intrinsic motivation. It’s almost like a Natural Law..."

"... The primary focus of any manager should be to energize people, to make sure that they actually want to do all that stuff. And doing all that stuff requires motivation..."

"... The 21st century is an age of complexity. It is the century where managers realize that to manage social complexity, they need to understand how things grow. Not how they are built..."

"... Agile recognizes that people are unique individuals instead of replaceable resources and that their highest value is not in their heads but in their interactions and collaboration..."

"... Delegation of control is a manager’s way of controlling complex systems. You push decisions and responsibilities down to a level where someone has information that is smaller in size and more accurate. Smart managers understand that they must try to make as few decisions as possible. For better overall control of a complex system, most of the decisions should be made in the subsystems..."

"... When aligning constraints for a group of people, a third responsibility of a manager is defining the direction of the self-organizing system. So yes, it’s true. Managers are manipulators. But they are manipulators of the system, not the people..."

"... Only by repeatedly accepting failure and subsequently purging its causes from the system you can steadily grow a software project and allow it to perform successfully..."

"... Self-organization is the process where a structure or pattern appears in a system without a central authority or external element imposing it through planning..."

"... Your job as a manager is not to create the right amount of rules in the organization. Your job is to make sure that the people can create their own rules together..."

"... Chaos theory taught us that even the smallest changes in a dynamic system can have tremendous consequences at a later time..."

"... Motivation is a fine example of social complexity. It is nonlinear and sometimes unpredictable. It cannot be defined or modeled with a single diagram..."

"... Simplicity is the key to a good design of each feature, and after their implementation, the usefulness of features is immediately verified by the customer..."

Teams aren't the only thing that needs to adopt agile. It is also essential that management change allows teams to become self-organizing, increase collaboration within the organization, and create a culture of feedback and continuous improvement. 

There are at least a hundred books for agile developers and project managers, but very few for agile managers and leaders.

When organizations adopt agile software development, not only developers and project managers need to learn about agile practices. 

It is also imperative for managers and team leaders to learn how to lead and manage organizations differently.

According to several studies, management is the biggest obstacle to agile software development. 

Agile requires managers to learn what their proper role is in 21st-century software development organizations. 

Management 3.0: Leading Agile Developers, Developing Agile Leaders is a half-theoretical, half-practical book that will help them and this book will help you.

Management 3.0 - Jurgen Appelo
Management 3.0 Guide - Jurgen Appelo

An important portion of the book deals with complexity theory, and how ideas and concepts from this scientific field can be translated into the management of software development teams. 

It aims at managers who want to become agile, and agility who want to become managers.

Chapters of the Book:

About the Author

1 Why Things Are Not That Simple
   Our Linear Minds
   Hierarchical Management
   Agile Management
   My Theory of Everything
   The Book and the Model
   Reflection and Action

2 Agile Software Development
   Prelude to Agile
   The Book of Agile
   The Fundamentals of Agile
   The Competition of Agile
   The Obstacle to Agile
   Line Management versus Project Management
   Reflection and Action

3 Complex Systems Theory
   Cross-Functional Science
   General Systems Theory
   Dynamical Systems Theory
   Game Theory
   Evolutionary Theory
   Chaos Theory
   The Body of Knowledge of Systems
   Simplicity: A New Model
   Revisiting Simplification
   Nonadaptive versus Adaptive
   Are We Abusing Science?
   A New Era: Complexity Thinking
   Reflection and Action

4 The Information-Innovation System
   Innovation Is the Key to Survival
   Only People Are Qualified for Control
   From Ideas to Implementation
   Reflection and Action

5 How to Energize People
   Creative Phases
   Manage a Creative Environment
   Creative Techniques
   Extrinsic Motivation
   Intrinsic Motivation
   Ten Desires of Team Members
   What Motivates People: Find the Balance
   Make Your Rewards Intrinsic
   Diversity? You Mean Connectivity
   Personality Assessments
   Four Steps toward Team Personality Assessment
   Do-It-Yourself Team Values
   Define Your Personal Values
   The No Door Policy
   Reflection and Action

6 The Basics of Self-Organization
   Self-Organization within a Context
   Self-Organization toward Value
   Self-Organization versus Anarchy
   Self-Organization versus Emergence
   Emergence in Teams
   Self-Organization versus Self-Direction versus Self-Selection
   Darkness Principle
   Conant-Ashby Theorem
   Distributed Control
   Empowerment as a Concept
   Empowerment as a Necessity
   You Are (Like) a Gardener
   Reflection and Action

7 How to Empower Teams
   Don’t Create Motivational Debt
   Wear a Wizard’s Hat 
   Pick a Wizard, Not a Politician
   Empowerment versus Delegation
   Reduce Your Fear, Increase Your Status
   Choose the Right Maturity Level
   Pick the Right Authority Level
   Assign Teams or Individuals
   The Delegation Checklist
   If You Want Something Done, Practice Your Patience
   Resist Your Manager’s Resistance
   Address People’s Ten Intrinsic Desires
   Gently Massage the Environment
   Reflection and Action

8 Leading and Ruling on Purpose 
   Game of Life
   Universality Classes
   False Metaphor
   You’re Not a Game Designer
   But…Self-Organization Is Not Enough
   Manage the System, Not the People
   Managers or Leaders?
   Right Distinction: Leadership versus Governance
   Meaning of Life
   Purpose of a Team
   Assigning an Extrinsic Purpose
   Reflection and Action

9 How to Align Constraints
   Give People a Shared Goal
   Checklist for Agile Goals
   Communicate Your Goal
   Vision versus Mission
   Examples of Organizational Goals
   Allow Your Team an Autonomous Goal
   Compromise on Your Goal and Your Team’s Goal
   Create a Boundary List of Authority
   Choose the Proper Management Angle
   Protect People
   Protect Shared Resources
   Constrain Quality
   Create a Social Contract
   Reflection and Action

10 The Craft of Rulemaking
   Learning Systems
   Rules versus Constraints
   The Agile Blind Spot
   What’s Important: Craftsmanship
   Positive Feedback Loops
   Negative Feedback Loops
   Discipline * Skill = Competence
   Diversity of Rules
   Subsidiarity Principle
   Risk Perception and False Security
   Broken Windows
   Reflection and Action

11 How to Develop Competence
   Seven Approaches to Competence Development
   Optimize the Whole: Multiple Levels
   Optimize the Whole: Multiple Dimensions
   Tips for Performance Metrics
   Four Ingredients for Self-Development
   Managing versus Coaching versus Mentoring
   Consider Certification
   Harness Social Pressure
   Use Adaptable Tools
   Consider a Supervisor
   Organize One-on-Ones
   Organize 360-Degree Meetings
   Grow Standards
   Work the System, Not the Rules or the People
   Reflection and Action

12 Communication on Structure
   Is It a Bug or a Feature?
   Communication and Feedback 
   Miscommunication Is the Norm
   Capabilities of Communicators
   Network Effects
   Tuning Connectivity
   Competition and Cooperation
   Groups and Boundaries
   Hyper-Productivity or Autocatalysis
   Scale Symmetry: Patterns Big and Small
   How to Grow: More or Bigger?
   Reflection and Action

13 How to Grow Structure
   About Environment, Products, Size, and People
   Consider Specialization First…
   …And Generalization Second
   Widen People’s Job Titles
   Cultivate Informal Leadership
   Watch Team Boundaries
   The Optimal Team Size Is 5 (Maybe)
   Functional Teams versus Cross-Functional Teams
   Two Design Principles
   Choose Your Organizational Style
   Turn Each Team into a Little Value Unit
   Move Stuff out to Separate Teams
   Move Stuff up to Separate Layers
   How Many Managers Does It Take to Change an Organization?
   Create a Hybrid Organization
   The Anarchy Is Dead, Long Live the Panarchy
   Have No Secrets
   Make Everything Visible
   Connect People
   Aim for Adaptability
   Reflection and Action

14 The Landscape of Change
   The Environment Is Not “Out There”
   The Fear of Uncertainty
   Laws of Change
   Every Product Is a Success…Until It Fails
   Success and Fitness: It’s All Relative
   How to Embrace Change
   Adaptation, Exploration, Anticipation
   The Red Queen’s Race
   Can We Measure Complexity?
   Are Products Getting More Complex?
   The Shape of Things: Phase Space
   Attractors and Convergence
   Stability and Disturbances
   Fitness Landscapes
   Shaping the Landscape
   Directed versus Undirected Adaptation
   Reflection and Action

15 How to Improve Everything
   Linear versus Nonlinear Improvement
   Know Where You Are
   Travel Tips for Wobbly Landscapes
   Change the Environment, Summon the Mountain
   Make Change Desirable
   Make Stagnation Painful
   Honor Thy Errors
   The Strategy of Noise
   The Strategy of Sex
   The Strategy of Broadcasts
   Don’t Do Copy-Paste Improvement
   Some Last Practical Tips for Continuous Change
   Keep on Rolling
   Reflection and Action

16 All Is Wrong, but Some Are Useful
   The Six Views of Management 3.0
   Yes, My Model Is “Wrong”
   But Other Models Are “Wrong,” Too
   The Fall and Decline of Agilists
   The Complexity Pamphlet
   Reflection and Action


This book is the result of both Jurgen’s extensive experience as a team leader and agile manager and his addiction to consuming hundreds of leadership and management tomes, each of which, from modern efficiency leaders back to Adam Smith, are cited throughout the book.

Jurgen Appelo is a writer, speaker, trainer, developer, entrepreneur, manager, blogger, reader, dreamer, leader, and freethinker. And he’s Dutch, which explains his talent for being weird. After studying software engineering at the Delft University of Technology, and earning his Master’s degree in 1994, Jurgen busied himself either starting up or leading a variety of Dutch businesses, always in the position of team leader, manager, or executive. However, sometimes he puts all writing, speaking, and training aside to do some programming himself or to spend time on his ever-growing collection of science fiction and fantasy literature, which he stacks in a self-designed bookcase that is four meters high.

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