CTO Series: How Open Strategy and Agile Practices Drive Success at NorthCode With Ismo Aro

CTO Series: How Open Strategy and Agile Practices Drive Success at NorthCode With Ismo Aro

CTO Series: How Open Strategy and Agile Practices Drive Success at NorthCode With Ismo Aro

In this BONUS episode, we sit down with Ismo Aro, CTO and partner at NorthCode, to delve into the transformative power of Open Strategy in the tech world. Ismo shares his journey from corporate roles at Nokia and Ericsson to becoming a full-time entrepreneur, and he unpacks how his approach to leadership evolved with the rise of agile methodologies, test automation, and cloud transformation. This episode is packed with actionable insights for anyone looking to modernize their company’s strategy and foster a culture of transparency and co-ownership.

Pivotal Career Moments: From Waterfall to Agile Mindset

“When I joined the agile pilot team, it felt like discovering the way software development should always be done—release early, get feedback fast, and improve continuously.”

Ismo reflects on his early days at Nokia, where he began as a test engineer in a traditional waterfall environment. He describes how the shift to agile methodologies transformed the way teams communicated and collaborated. When he joined a pilot project for Scrum, he realized the value of fast feedback loops and early releases. This experience laid the foundation for his future focus on continuous integration and test automation.

Key Takeaway: Adopting agile frameworks can improve workflows by shortening feedback loops and promoting direct communication.

The Essence of Open Strategy

“Open Strategy means involving everyone in shaping the direction of the company—not just receiving updates but truly co-creating the future.”

At NorthCode, Open Strategy is a cornerstone of their operations. Ismo explains how they empower employees by making strategy-building a transparent and collaborative process. The company’s structure includes a parent company and subsidiaries where employees are also co-owners. Revenue-sharing ensures that when the business succeeds, everyone benefits directly.

Key Elements of Open Strategy:

  • Transparency: Strategy is made visible through a kanban board and KPIs accessible to all.

  • Ownership: Subsidiary team members can own up to 80% of their company.

  • Profit-sharing: 80% of client revenue goes to the subsidiary, and dividends are shared annually.

“By aligning incentives and opening up the strategy process, you create a culture where employees don’t just work for you—they work with you.”

How Open Strategy Unfolds Annually

“We make ideas visible and let them evolve until they’re ready for execution.”

Ismo outlines the company’s approach to strategy using a high-level roadmap and clear metrics to track progress. The focus is on organic growth through subsidiaries, with a benchmark of starting a new subsidiary once a team reaches 20 people. The company also uses “business spikes”—short, low-cost experiments to test new ideas.

Practical Tip: A business spike allows you to explore an idea quickly without committing significant resources, making it easier to pivot when necessary.

Navigating Challenges in Open Strategy

“Some people want to co-create, while others prefer to focus on their work—and both are valid.”

Ismo acknowledges that not everyone in the organization is equally interested in strategic discussions, and that’s okay. Open Strategy doesn’t require everyone to participate equally—it provides opportunities for involvement at different levels. The key is fostering an environment where insights and information flow freely from the ground up, rather than top-down mandates.

Key Insight: Open Strategy thrives when participation is voluntary and inclusive, rather than forced.

Measuring Success: KPIs and Transparency

“We believe in showing our utilization rates openly because our people have a stake in the results.”

To measure success, NorthCode tracks KPIs such as revenue, profit, and utilization rates. Unlike traditional consulting companies that keep these metrics private, NorthCode shares them openly to build trust and foster a sense of ownership. Monthly meetings focus on tactical updates, while strategic sessions aim to inspire employees to contribute ideas for the company’s future.

Fun Practice: The “nightmare competitor” exercise encourages the team to imagine an ideal competitor and then adopt some of their hypothetical best practices into NorthCode’s strategy.

“When people can see the metrics that matter, they’re more motivated to take ownership of their impact.”

Inspiration from Open Strategy and Business Agility

“We take concepts from corporate books and tailor them to fit our context as a growing, agile company.”

Ismo cites two key books that shaped his thinking: Open Strategy and The 6 Enablers of Business Agility. However, he emphasizes the importance of adapting corporate-level concepts to suit smaller, more agile organizations. He believes that while agile is mainstream in software development, many companies remain rigid in their overall strategy.

Recommended Reads:

Key Reflection: Ismo’s approach underscores the importance of agility not just in software but in company operations and strategy-making.

Final Tip: Embrace modern tools like Large Language Models (LLMs) to streamline workflows—but remember, they enhance your work, not replace it.

About Ismo Aro

Ismo Aro is the CTO and partner at NorthCode, specializing in software development and workflow modernization. With experience at Nokia and Ericsson, he has held various roles, from test engineer to entrepreneur. Ismo co-founded NorthCode after selling a previous company and also served as Chairman of the Robot Framework Foundation, contributing to the growth of the widely used open-source test automation framework.

You can link with Ismo Aro on LinkedIn.

Jaksot(200)

Product Owner Patterns – The Great and the Bad | Ellen Grove

Product Owner Patterns – The Great and the Bad | Ellen Grove

Ellen Grove: The Messenger Anti-Pattern, When Product Owners Lack Authority Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. The Great Product Owner: Building Shared Understanding, The Collaborative Product Owner Pattern Ellen describes an exemplary Product Owner (PO) who actively engaged with customers, often bringing the team along to meet users. This practice fostered a shared understanding of customer needs and amplified creativity within the team. A great PO promotes collaboration and ensures that the team is aligned with the product vision, enabling innovative solutions and meaningful outcomes. The Bad Product Owner: The Messenger Anti-Pattern, When Product Owners Lack Authority A poor PO, Ellen explains, is one who lacks decision-making authority. In one case, a PO served merely as a messenger for the CEO, repeatedly deferring to higher-ups for answers. This lack of empowerment hindered team progress and frustrated the development process. Ellen underscores that Scrum Masters play a crucial role in supporting POs to ensure they can fulfill their responsibilities effectively. Self-reflection Question: How can you support Product Owners to strengthen their ability to make informed decisions? [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

10 Tammi 16min

The Power of "Why", Modeling Coaching Behavior for Agile Teams | Ellen Grove

The Power of "Why", Modeling Coaching Behavior for Agile Teams | Ellen Grove

Ellen Grove: The Power of "Why", Modeling Coaching Behavior for Agile Teams Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Ellen defines success for Scrum Masters as the team developing a stronger sense of agency and self-sufficiency. When teams begin asking better questions and demonstrate ownership of their processes, it indicates growth and maturity. Scrum Masters must model this behavior by being thoughtful, curious, and consistently asking "why" to encourage a coaching mindset. This approach enables teams to think critically and solve problems collaboratively. Self-reflection Question: How can you model the behavior you want to see in your team during retrospectives and beyond? Featured Retrospective Format for the Week: Retromat Ellen recommends using Retromat, a versatile online tool that provides a variety of retrospective formats to match the specific needs of your team. Ellen values mixing up retrospective formats to keep sessions engaging and contextually relevant. She stresses the importance of paying attention to all steps of a retrospective process, ensuring teams reflect, ideate, and act effectively. [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

9 Tammi 16min

The Dual Work of Agile, Managing Projects and Change Simultaneously | Ellen Grove

The Dual Work of Agile, Managing Projects and Change Simultaneously | Ellen Grove

Ellen Grove: The Dual Work of Agile, Managing Projects and Change Simultaneously Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Ellen shares her insights on managing organizational change effectively. She explains how Scrum and Lean Change Management offer tools to make the "change work" visible alongside project work. By putting infrastructure in place to support this dual focus, stakeholders and teams can gain transparency and clarity. Ellen emphasizes that lasting change requires collaboration and visibility, not isolation. Self-reflection Question: How can you make the "change work" more visible in your organization? [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

8 Tammi 15min

Why Feedback Loops Are Essential for Agile Teams | Ellen Grove

Why Feedback Loops Are Essential for Agile Teams | Ellen Grove

Ellen Grove: Why Feedback Loops Are Essential for Agile Teams Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Ellen shares a story about coaching a team in a public sector enterprise working on a website project. Despite their commitment to Agile, the team’s disconnect from user feedback led them to build features that missed critical functionality. This stealthy anti-pattern—assuming "what should be done and why" without user input—resulted in wasted effort and budget. Ellen emphasizes the importance of direct feedback loops with real users, even for internal products. Self-reflection Question: How can you ensure your team receives continuous feedback from real users to avoid building the wrong product? Featured Book of the Week: Humble Inquiry by Edgar Schein Ellen highlights "Humble Inquiry," a transformative book that stresses the importance of relationships over tasks in solving problems. The book encourages leaders to build trust and respect through better questioning techniques. It challenges readers to rethink their interactions and adopt a stance of curiosity, fostering collaboration and understanding. [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

7 Tammi 14min

Managing Change in Complex Organizational Cultures | Ellen Grove

Managing Change in Complex Organizational Cultures | Ellen Grove

Ellen Grove: Managing Change in Complex Organizational Cultures Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Ellen reflects on her early experiences as a Scrum Master, facing challenges in an environment that resisted the introduction of Scrum. She shares valuable lessons about handling external resistance, managing personal expectations, and avoiding emotional burnout when navigating organizational change. Ellen emphasizes the importance of focusing on what can be influenced and detaching from outcomes beyond one’s control. Self-reflection Question: How do you maintain focus and resilience when dealing with resistance to Scrum in your organization? [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Ellen Grove Ellen is a skilled business agility coach, trainer, and facilitator, helping teams and leaders foster collaboration, productivity, and meaningful change. With expertise in Agile, Scrum, Lean, and systems coaching, she partners with diverse organizations—from startups to global enterprises—to navigate complex challenges, build resilience, and drive impactful organizational transformations across all departments. You can link with Ellen Grove on LinkedIn.

6 Tammi 14min

Throwing Features Over the Fence, The Disconnected PO | Robert Finan

Throwing Features Over the Fence, The Disconnected PO | Robert Finan

Robert Finan: Throwing Features Over the Fence, The Disconnected PO Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. The Great Product Owner: Fostering Quick Feedback Loops With Story Mapping Robert describes a great Product Owner as someone who immerses themselves in the team, fostering collaboration and ensuring quick market feedback.  By using tools like Story Mapping, these POs help teams focus on value while staying engaged and open to learning. The Bad Product Owner: Throwing Features Over the Fence, The Disconnected PO Bad Product Owners remain distant, throwing requirements “over the fence” without participating in the team’s efforts. This disconnect often leads to misalignment and poor outcomes.  For Scrum Masters and Agile Coaches, Robert suggests investigating the root cause of this distance and addressing it collaboratively. [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Robert Finan Robert has been working in IT for over 25 years, with the last decade spent deeply engaged in “messy” real-world Agile transformations. He documents his experiences in the Agile Drill Sergeant webcomic. You can link with Robert Finan on LinkedIn.

3 Tammi 14min

Promoting Agile Team Growth Through Experiments And Small Focused Changes | Robert Finan

Promoting Agile Team Growth Through Experiments And Small Focused Changes | Robert Finan

Robert Finan: Promoting Agile Team Growth Through Experiments And Small Focused Changes Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Robert defines Scrum Master success as driving impactful team improvements through small, focused changes.  By maintaining a backlog of improvement ideas and encouraging teams to experiment, Robert highlights the importance of measurable progress in both behavior and collaboration. Featured Retrospective Format for the Week: Sailboat Retrospective Robert recommends the Sailboat format, especially when working with new teams. By exploring current realities, future goals, and risks, this format provides rich insights and fosters alignment. The focus on improvement ensures actionable outcomes that resonate with team members. [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Robert Finan Robert has been working in IT for over 25 years, with the last decade spent deeply engaged in “messy” real-world Agile transformations. He documents his experiences in the Agile Drill Sergeant webcomic. You can link with Robert Finan on LinkedIn.

2 Tammi 14min

Flexible Change Processes, How To Adopt Agile With An Agile Approach | Robert Finan

Flexible Change Processes, How To Adopt Agile With An Agile Approach | Robert Finan

Robert Finan: Flexible Change Processes, How To Adopt Agile With An Agile Approach Read the full Show Notes and search through the world’s largest audio library on Scrum directly on the Scrum Master Toolbox Podcast website: http://bit.ly/SMTP_ShowNotes. Robert discusses how top-down, project managed Agile transformations often fail to account for the complexity of change. By focusing on flexibility, inspect/adapt cycles, and bringing comfort to the change process, Scrum Masters can guide organizations away from one-size-fits-all solutions and toward the sustainable improvement that is the hallmark of Agile. Self-reflection Question: How can you bring comfort to the change process in your organization? [The Scrum Master Toolbox Podcast Recommends] 🔥In the ruthless world of fintech, success isn’t just about innovation—it’s about coaching!🔥 Angela thought she was just there to coach a team. But now, she’s caught in the middle of a corporate espionage drama that could make or break the future of digital banking. Can she help the team regain their mojo and outwit their rivals, or will the competition crush their ambitions? As alliances shift and the pressure builds, one thing becomes clear: this isn’t just about the product—it’s about the people. 🚨 Will Angela’s coaching be enough? Find out in Shift: From Product to People—the gripping story of high-stakes innovation and corporate intrigue. Buy Now on Amazon [The Scrum Master Toolbox Podcast Recommends] About Robert Finan Robert has been working in IT for over 25 years, with the last decade spent deeply engaged in “messy” real-world Agile transformations. He documents his experiences in the Agile Drill Sergeant webcomic. You can link with Robert Finan on LinkedIn.

1 Tammi 12min

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