Scrum Master Toolbox Podcast: Agile storytelling from the trenches

• The Agile Organization as a Learning System With Tom Gilb and Simon Holzapfel

  BONUS: The Agile Organization as a Learning System Think Like a Farmer, Not a Factory Manager "Go slow to go fast. If you want to go somewhere, go together as a team. Take a farmer's mentality."   Simon contrasts monoculture industrial thinking with the permaculture approach of Joel Salatin. Industrial approaches optimize for short-term efficiency but create fragile systems. Farmer thinking recognizes that healthy ecosystems require patience, diversity, and nurturing conditions for growth. The nervous system that's constantly stressed never builds much over time—think of the body, trust the body, let the body be a body. Value Masters, Not Scrum Masters "We need value masters, not Scrum Masters. Agile is a useful tool for delivering value, but value itself is primary. Everything else is secondary—Agile included."   Tom makes his most provocative point: if you asked a top manager whether they'd prefer an agile person or value delivery, the answer is obvious. Agile is one tactic among many for delivering value—not even a necessary one. The shift required is from process mastery to value mastery, from Scrum Masters to people who understand and can deliver on critical stakeholder values. The DOVE Manifesto "I wrote a paper called DOVE—Deliver Optimum Values Efficiently. It's the manifesto focusing on delivering value, delivering value, delivering value."   Tom offers his alternative to the Agile Manifesto: a set of principles laser-focused on value delivery. The document includes 10 principles on a single page that can guide any organization toward genuine impact. Everything else—processes, frameworks, methodologies—are secondary tools in service of this primary goal. Read Tom's DOVE manifesto here.  Building the Glue Between Social and Physical Technology "Value is created in interactions. That's where the social and physical technology meet—that joyous boundary where stuff gets done."   Simon describes seeing the world through two lenses: physical technology (visible tools and systems) and social technology (culture, relationships, the air we breathe). Eric Beinhoeker's insight is that progress happens at the intersection. The Gilbian learning loops provide the structure; trust and human connection provide the fuel. Together, they create organizations that can actually learn and adapt.   Further Reading To Support Your Learning Journey Resources & Further Reading Explore these curated resources to deepen your understanding of strategic planning, value-based management, and transformative organizational change.     📚 Essential Reading Competitive Engineering  Tom Gilb's seminal book on requirements engineering and value-based development approaches. What is Wrong with OKRs (Paper by Tom Gilb) A critical analysis of the popular OKR framework and its limitations in measuring real value. DOVE Manifesto by Tom Gilb Detailed exploration of the DOVE (Design Of Value Engineering) methodology for quantifying and optimizing stakeholder value.     🎓 Learning Materials Tom Gilb's Strategy Ringbook A comprehensive collection of strategic planning principles and practical frameworks. Tom Gilb's Video at the Strategy Meetup Watch Tom Gilb discuss key strategic concepts and answer questions from the community. Design Process Paper by Tom Gilb An in-depth look at value-driven design processes and their practical application. Esko Kilpi's Work on Conversations Exploring how organizational conversations shape thinking, decision-making, and change.     🧭 Frameworks & Models OODA Loop The Observe-Orient-Decide-Act decision cycle for rapid strategic thinking and adaptation.     🎯 Practical Tips Measurement of Increased Value Focus on tracking actual value delivery rather than activity completion. Establish baseline measurements and regularly assess improvements in stakeholder-defined value dimensions. Quantify Critical Values Identify the 3-5 most important value attributes for your stakeholders. Make these concrete and measurable, avoiding vague qualities in favor of specific, quantifiable metrics. Measurement vs Testing Process Understand the distinction: measurement tells you how much value exists, while testing validates whether something works. Use both strategically—test hypotheses early, then measure outcomes continuously.     🔗 Related Profiles Todd Covert - Montessori School of the Berkshires Educational leadership and innovative approaches to value-based learning environments.   About Tom Gilb and Simon Holzapfel   Tom Gilb, born in the US, lived in London, and then moved to Norway in 1958. An independent teacher, consultant, and writer, he has worked in software engineering, corporate top management, and large-scale systems engineering. As the saying goes, Tom was writing about Agile before Agile was named. In 1976, Tom introduced the term "evolutionary" in his book Software Metrics, advocating for development in small, measurable steps. Today, we talk about Evo, the name Tom uses to describe his approach. Tom has worked with Dr. Deming and holds a certificate personally signed by him. You can listen to Tom Gilb's previous episodes here.    You can link with Tom Gilb on LinkedIn    Simon Holzapfel is an educator, coach, and learning innovator who helps teams work with greater clarity, speed, and purpose. He specializes in separating strategy from tactics, enabling short-cycle decision-making and higher-value workflows. Simon has spent his career coaching individuals and teams to achieve performance with deeper meaning and joy. Simon is also the author of the Equonomist newsletter on Substack. And you can listen to Simon's previous episodes on the podcast here.    You can link with Simon Holzapfel on LinkedIn.  

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• Quality 5.0—Quantifying the "Unmeasurable" With Tom Gilb and Simon Holzapfel

  BONUS: Quality 5.0—Quantifying the "Unmeasurable" With Tom Gilb and Simon Holzapfel Clarification Before Quantification "Quantification is not the main idea. The key idea is clarification—so that the executive team understands each other."   Tom emphasizes that measurement is a means to an end. The real goal is shared understanding. But quantification is a powerful clarification tactic because it forces precision. When someone says they want a "very fast car," asking "can we define a scale of measure?" immediately surfaces the vagueness. Miles per hour? Acceleration time? Top speed? Each choice defines what you're actually optimizing for. The Scale-Meter-Target Framework "First, define a scale of measure. Second, define the meter—the device for measuring. Third, set numbers: where are we now, what's the minimum to survive, and what does success look like?"   Tom's framework makes the abstract concrete:   Scale of measure: What dimension are you measuring? (e.g., time to complete task) Meter: How will you measure it? (e.g., user testing with stopwatch) Past/Status: Where are you now? (e.g., currently takes 47 seconds) Tolerable: What's the minimum acceptable? (e.g., must be under 30 seconds to survive) Target/Goal: What does success look like? (e.g., 15 seconds or less)   Many important concepts like "usability" decompose into 10+ different scales of measure—you're not looking for one magic number but a set of relevant metrics. Trust as the Organizational Hormone "Change moves at the speed of trust. Once there's trust, information flows. Once information flows, the system comes to life and can learn. Until there's trust, you have the Soviet problem."   Simon introduces trust as the "human growth hormone" of organizational change—it's fast, doesn't require a user's manual, and enables everything else. Low-trust environments hoard information, guaranteeing poor outcomes. The practical advice? Make your work visible to your manager, alignment-check first, do something, show results. Living the learning cycle yourself builds trust incrementally. And as Tom adds: if you deliver increased critical value every week, you will build trust.   About Tom Gilb and Simon Holzapfel   Tom Gilb, born in the US, lived in London, and then moved to Norway in 1958. An independent teacher, consultant, and writer, he has worked in software engineering, corporate top management, and large-scale systems engineering. As the saying goes, Tom was writing about Agile before Agile was named. In 1976, Tom introduced the term "evolutionary" in his book Software Metrics, advocating for development in small, measurable steps. Today, we talk about Evo, the name Tom uses to describe his approach. Tom has worked with Dr. Deming and holds a certificate personally signed by him. You can listen to Tom Gilb's previous episodes here.    You can link with Tom Gilb on LinkedIn    Simon Holzapfel is an educator, coach, and learning innovator who helps teams work with greater clarity, speed, and purpose. He specializes in separating strategy from tactics, enabling short-cycle decision-making and higher-value workflows. Simon has spent his career coaching individuals and teams to achieve performance with deeper meaning and joy. Simon is also the author of the Equonomist newsletter on Substack. And you can listen to Simon's previous episodes on the podcast here.    You can link with Simon Holzapfel on LinkedIn.  

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• Testing as Measurement—Why Bug-Hunting Misses the Point With Tom Gilb and Simon Holzapfel

  BONUS: Testing as Measurement—Why Bug-Hunting Misses the Point With Tom Gilb and Simon Holzapfel The Revelation That Almost Caused a Car Crash "Tom said like 10 sentences in a row, kind of like a geometric proof, that just so blew my mind I almost drove off the road. I realized I had wasted hundreds of hours in boardrooms arguing about errors of which we were aware of perhaps 10%."   Simon shares the moment Tom's framework clicked for him. The insight? Traditional testing—finding bugs and defects—is the wrong focus entirely. It's a programmer's view of the world. Managers don't care about bugs; they care about results, about improvements in their business. Tom calls this shift moving from "testing" to "measurement of enhanced or increased value at every cycle." The American Toast Problem "How do we make toast in America? We burn the toast, and then we pay someone to scrape off the black bits off the bread."   Vasco invokes Deming's classic analogy to describe traditional software testing. The entire testing-at-the-end approach is fundamentally wasteful. Instead, Tom advocates for continuous measurement against quantified values. If you expected 3% progress toward your goals this week and didn't get it, you've learned something critical: your strategy needs to change. If you did get it, keep going with confidence. Four Questions at Every Checkpoint "Where are we going? Where are we now? Where should we have been at this point? And why is there a gap?"   Drawing from fighter pilot doctrine, these four questions should be asked at every micro-cycle—not just at quarterly reviews. Fighter pilots ask these questions every minute during critical missions, with clear abort criteria if answers are unacceptable. Most organizations have no abort criteria for their strategies at all, guaranteeing they'll discover failures far too late.   About Tom Gilb and Simon Holzapfel   Tom Gilb, born in the US, lived in London, and then moved to Norway in 1958. An independent teacher, consultant, and writer, he has worked in software engineering, corporate top management, and large-scale systems engineering. As the saying goes, Tom was writing about Agile before Agile was named. In 1976, Tom introduced the term "evolutionary" in his book Software Metrics, advocating for development in small, measurable steps. Today, we talk about Evo, the name Tom uses to describe his approach. Tom has worked with Dr. Deming and holds a certificate personally signed by him. You can listen to Tom Gilb's previous episodes here.    You can link with Tom Gilb on LinkedIn    Simon Holzapfel is an educator, coach, and learning innovator who helps teams work with greater clarity, speed, and purpose. He specializes in separating strategy from tactics, enabling short-cycle decision-making and higher-value workflows. Simon has spent his career coaching individuals and teams to achieve performance with deeper meaning and joy. Simon is also the author of the Equonomist newsletter on Substack. And you can listen to Simon's previous episodes on the podcast here.    You can link with Simon Holzapfel on LinkedIn.

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• Continuous Strategy Engineering—Beyond Waterfall Planning With Tom Gilb and Simon Holzapfel

  BONUS: Continuous Strategy Engineering—Beyond Waterfall Planning With Tom Gilb and Simon Holzapfel Strategy Professors Are Decades Behind "The professors of strategy have no clue as to what Evo is. They are locked in decades ago, waterfall mode."   Tom's analysis is stark: the people teaching strategy in business schools haven't undergone the same agile transformation that software development experienced. They still think in terms of 5-year plans that get tested at the end—a guaranteed recipe for discovering failure too late. The alternative? Decompose any large strategy into weekly value delivery steps. And if you think that's impossible, ask any AI to do it for you—it will produce 52 reasonable weekly increments in about a minute. Why OKRs Aren't Enough for Complex Systems "If you're doing small-scale stuff that OKRs were designed for, like planning your personal work 14 days hence, OKRs are wonderful. If you're designing the air traffic control system for Europe, they're just too simple."   Tom distinguishes between tools appropriate for personal productivity and those needed for complex organizational strategy. OKRs force some thinking, which is good, but they weren't designed for—and have never been adapted to—large-scale systems engineering. His paper "What is Wrong with OKRs?" documents roughly 100 gaps between simple OKRs and what robust value requirements actually require. Check out Tom Gilb's paper on what's wrong with OKR's and how to fix it.  The Missing Alignment Layer "We have no mental model for most of leadership about how you actually align people around clear vision."   Simon introduces the concept of a Hoshin-Kanri "sprinkler" system—imagine strategic clarity flowing from the top and misting over everyone's desk as alignment. Most organizations lack anything resembling this. They have Moses descending from expensive consultant retreats with tablets, but no continuous two-way flow of strategic information. The result? Teams work hard on things that don't matter while critical values go unaddressed. About Tom Gilb and Simon Holzapfel   Tom Gilb, born in the US, lived in London, and then moved to Norway in 1958. An independent teacher, consultant, and writer, he has worked in software engineering, corporate top management, and large-scale systems engineering. As the saying goes, Tom was writing about Agile before Agile was named. In 1976, Tom introduced the term "evolutionary" in his book Software Metrics, advocating for development in small, measurable steps. Today, we talk about Evo, the name Tom uses to describe his approach. Tom has worked with Dr. Deming and holds a certificate personally signed by him. You can listen to Tom Gilb's previous episodes here.    You can link with Tom Gilb on LinkedIn    Simon Holzapfel is an educator, coach, and learning innovator who helps teams work with greater clarity, speed, and purpose. He specializes in separating strategy from tactics, enabling short-cycle decision-making and higher-value workflows. Simon has spent his career coaching individuals and teams to achieve performance with deeper meaning and joy. Simon is also the author of the Equonomist newsletter on Substack. And you can listen to Simon's previous episodes on the podcast here.    You can link with Simon Holzapfel on LinkedIn.

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• Impact Engineering, Finding Agile's Lost North Star |Tom Gilb and Simon Holzapfel

  BONUS: Impact Engineering—Finding Agile's Lost North Star With Tom Gilb and Simon Holzapfel The Clarity Problem: Why Organizations Start with "Fuzzy B*S*!" "Everybody seems to start from a position of fuzzy b*s*. Nice-sounding words. Management does it, professors do it, politicians do it. And they don't even feel very guilty about it."   Tom Gilb doesn't mince words when describing how most organizations define their objectives. The fundamental problem isn't a lack of ambition—it's a lack of clarity. When leaders are asked about their critical values like "extremely high security" or "employee happiness," they typically respond with circular definitions that provide no actionable direction. Tom's approach starts by exposing this gap and then demonstrating that any value—no matter how "soft" or intangible it seems—can be quantified. Using AI tools, he's shown clients over 1,400 different ways to measure human happiness alone. Why Agile Lost Its North Star "Agile's lost its North Star because the economic problems it was trying to solve within the organization are now mismatched with the digital world."   Simon Holzapfel offers a structural analysis: Agile developed primarily to allay the concerns of pre-digital capital—investors who needed reassurance that their money wouldn't disappear into failed projects. But today's digital economy operates differently. Capital now moves like a service (SaaS model), and innovation is fundamentally stochastic—you can't predict when breakthroughs will happen. Organizations using flow-focused tools when the real problem is value creation are applying yesterday's solutions to today's challenges. The First Step: Quantify Your Critical Values "If you ask AI to quantify employee happiness a hundred different ways, it will do it in one minute for free. So you can no longer be in denial."   The path forward starts with brutal honesty about what your organization actually cares about. Tom's approach involves:   Identifying the top 10 critical stakeholder values Defining clear scales of measure for each Establishing where you are now (status) Setting where you need to be to survive (tolerable level) Defining what success looks like (target/goal level)   This isn't about adding bureaucracy—it's about creating shared clarity that enables everyone to row in the same direction.   About Tom Gilb and Simon Holzapfel   Tom Gilb, born in the US, lived in London, and then moved to Norway in 1958. An independent teacher, consultant, and writer, he has worked in software engineering, corporate top management, and large-scale systems engineering. As the saying goes, Tom was writing about Agile before Agile was named. In 1976, Tom introduced the term "evolutionary" in his book Software Metrics, advocating for development in small, measurable steps. Today, we talk about Evo, the name Tom uses to describe his approach. Tom has worked with Dr. Deming and holds a certificate personally signed by him. You can listen to Tom Gilb's previous episodes here.    You can link with Tom Gilb on LinkedIn    Simon Holzapfel is an educator, coach, and learning innovator who helps teams work with greater clarity, speed, and purpose. He specializes in separating strategy from tactics, enabling short-cycle decision-making and higher-value workflows. Simon has spent his career coaching individuals and teams to achieve performance with deeper meaning and joy. Simon is also the author of the Equonomist newsletter on Substack. And you can listen to Simon's previous episodes on the podcast here.    You can link with Simon Holzapfel on LinkedIn.

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