The simple pyramid hierarchy no longer serves us. Laloux’s Teal Organization and Steve Denning’s three laws (law of the small team, network, and customer) come into play across this domain. Practices such as Systems Thinking and the Theory of Constraints (including Evan’s Theory of Agile Constraints) are necessary here. At the lowest level of the organization, you might call these teams, squads or cells. A traditional agilist might call these cross-functional and multidisciplinary teams.
Regardless of what you call them, agile teams have certain common characteristics. In general, they are small, cross-functional, and formed around business outcomes rather than traditional, skill-based, functions. To be successful, team members must have the “four A’s”: Alignment, Autonomy, Authority, and Accountability. Agile teams in mature organizations are self-organizing and have authority to identify their own membership and decide on the work to be done to achieve the given outcome. This demands a high level of collaboration within the team and, where appropriate, ultimately develops strong multidisciplinary members.
The connection between teams is the fundamental expression of the organizations’ structure and an indicator of business agility fluency. These connections may form a hierarchical model (sometimes called tribes or circles) or a flatter, network, model where connections form dynamically to align along the value stream. In either case, these connections group teams to business outcomes rather than functions. Mature agile organizations break down the divisional walls even further. For example, by bringing sales, marketing, finance or operations into the relevant cross-functional teams when needed. Guilds or centers of excellence form around uncommon skills (such as architects, infrastructure or coaches) to share this expertise, as well as common skills to provide a forum for skills growth and knowledge sharing.
Moving from Theory to Practice[edit | edit source]
Your goal is to bring the value stream into a single team; such that there are no handoffs or delays from ideation to delivery to the customer.
Create Value Delivery Teams[edit | edit source]
As Value Delivery Teams are accountable to deliver a specific outcome (rather than an output), a new team structure emerges that, by necessity, integrates the skills from multiple functional areas. These cross-functional teams benefit the organization by improving coordination, simplifying communication, and sharing expertise to solve problems. They are stable and are structurally aligned to parent outcomes.
Diversity in thought and background is also an advantage as diverse teams consistently produce better outcomes. Bring people with different backgrounds, skill sets, attitudes, and viewpoints together in an environment which encourages collaboration.
Maintain Continuity of Ownership[edit | edit source]
In most modern organizations, products continue to improve and change as customer needs evolve. Rather than handing off responsibility from a group of “producers” to a different group of “maintainers”, the team that produces a product should be the team that supports and maintains the product. This also helps with accountability as the team remains focused on delighting their customers and continuously increasing value.
Create Stable Teams[edit | edit source]
There is a lot of evidence for the value of stable teams in knowledge worker environments. Teams who remain together for extended periods are more likely to achieve a high-performing state. They understand each other’s working and communication styles, they “jell”, balance strengths and weaknesses and produce more value faster than temporary teams who are disbanded and reformed frequently. This productivity improvement is also associated with higher satisfaction, and stronger employee engagement – a win-win in every dimension!
Measuring your Business Agility Maturity[edit | edit source]
Agile Teams[edit | edit source]
|To enable collaboration, we form temporary cross-functional teams. These teams have the majority of the skills needed to deliver on the work.||To enable collaboration, we form small (e.g. 7 + or – 2 people), cross-functional, and stable teams. These teams have the majority of the skills needed to deliver on the work.||We build teams around outcomes & value streams (e.g. customer journeys, market segments) rather than around products & services (e.g. inside out from the company’s perspective).||Teams are self-organizing (or self-managing). They have; total authority to identify their own membership (self-selecting), re-skill to meet changing customer needs, and decide on the work to be done to achieve the given outcome.|
Network Organization[edit | edit source]
|Our organization is very slow to change team structure to meet new market demands. One exception is when forming temporary teams around projects with skill sets matrixed in from functional divisions as needed (e.g. a tester from the QA team).||We have fast and simple processes to move people between teams if needed. Communication with affected people is clear and non-disruptive.||We can quickly form dynamic teams. Divisional and functional silos are invisible as we form stable cross-functional teams around products, customer journeys or business outcomes. For example, we can bring sales & marketing, finance, or operations into the relevant cross-functional teams when needed.||Our organization structure rapidly adapts to meet changing customer and market demands. There are networks of teams (bound together by working agreements or social contracts) dynamically forming and reforming as needed.|
Case Studies[edit source]
- New Zealand Post Group - An Agile Executive
- IT Branch, City of Edmonton - Building an Agile Organisation
- The 22000 Persons Start-up
- Modernizing Government - How Agencies Became Awesome Places to Work Using Holacracy & Scrum
- Shipping is NOT Success, Let it Sail
- Evolving Budget Management
- Haier Elevation
- The Buurtzorg Story
- The Age of the Self-Managed Organization
- Holacracy for Humans with Sandy Mamoli
- Tackling Organization Design During Our Agile Transformation with Alex Basa
Further Reading[edit source]
- Communities of Practice and Cross-Silo Communication
- The Mathematics of Agile Communication
- Agile Reorgs - A Survival Guide
- What is Business Agility?
- Structuring Your Business for Agility
- Company-wide Agility with Beyond Budgeting, Open Space, and Sociocracy
- Build a network of viable teams for business agility
- From Hierarchy to High Performance with Doug Kirkpatrick
- Certain Uncertainty by Evan Leybourn
- BOSSAnova - Company-wide Agility with Beyond Budgeting, Open Space & Sociocracy by Jutta Eckstein
Books & Book Reviews[edit source]
- Beyond Empowerment
- Reinventing Organisations
- The Goal - A Process of Ongoing Improvement
- Directing the Agile Organisation
- Company-wide Agility with Beyond Budgeting, Open Space & Sociocracy
- Freedom Inc - How Corporate Liberation Unleashes Employee Potential and Business Performance
References[edit | edit source]
Join the Business Agility Community[edit | edit source]
If you'd like to continue the conversation with like minded individuals around Structural Agility and Organisation Design, join the Business Agility slack community. Specifically the #organisation-design channel.
Library Steward[edit | edit source]
This section is currently un-stewarded. If you have a passion for this space and would like to take ownership for the guidance and insights within, please contact Evan Leybourn. The stewards of the Business Agility Library are leaders in their field and we quite literally couldn't create such amazing content without their support. These people & organisations are leaders in the community and, through their actions and insights, continue to expand the horizon of business agility for us all.