While the journey never ends, the first step is to understand “why”. What defines your company and it’s purpose? In many ways, this will define the way you work together, cooperate and create value for your customers. At every point along this journey, each domain will have a different level of fluency. Focus on those which are currently the most constraining or disruptive to your overall business agility.
Becoming an agile organisation is an incremental process. There is no single point you say to yourself, ‘Yesterday we weren’t Agile, but today we are. Success!’ However, you can say, ‘Today we are more Agile than yesterday!’ Your journey to business agility can be formal, through a transformation programme, or informal, through ad hoc changes addressing problem areas. Regardless of the mechanism, your business agility journey begins with a set of clear organisational goals. Ask yourself; what is your organisation trying to achieve.
And it’s not an easy journey. The systemic nature of transitioning to business agility can have a profound impact on individuals. Across the entire organisation there must be inspiring leadership, clear communication and a common purpose to create champions out of everyone. And there will be people in your organisation who do not wish to work in this way and will leave. There’s no value judgement in this, simply needing a different way to work. Respect and understanding must be shown to everyone, even those leaving.
However, despite the complexity of the transition, the benefits to business agility are manifest. Starting with the ability to rapidly respond to competitive challenges, disruption and changes in demand. In fact, an agile organisation can do more than just respond, you can be the challenger and disrupter in an uncertain and unpredictable market. Staff satisfaction and retention is higher and, with a general reduction in management overheads, operating costs are lower. Finally, because agile organisations are purpose driven, you are able to be more responsive to your customers or wider purpose.
Vision & Strategic Planning[edit | edit source]
Strategic planning is the process by which an organisation defines the projects, initiatives and actions (the plan) that will achieve their corporate vision or mission. It is traditionally very time-consuming with lots of data collection and meetings amongst executives. Once the plan is complete, it is presented as a fait accompli to the rest of the organisation to implement. However, ask any executive (over beer) and they'll admit that this process doesn't work - there are very few real innovations and the plan itself is usually out of date before it begins.
I want to get one thing out of the way; forget the 5-year plan. And while you're at it, forget the 12-month plan as well. As an agile organisation, we want to move away from the traditional & static planning process towards a dynamic & agile strategy that can adapt as the market changes. We might also call this a "learning organisation"; one that uses an "inspect and adapt" feedback cycle to continuously create and refine their corporate strategy.
A quick side note: a common misconception is that agile corporate strategy means dividing up the plan and incrementally delivering it using Scrum - this is not what an agile corporate strategy is about. At best, that is "doing" agile not "being" agile.
Business agility and the strategic planning process
An agile organisation starts in the same place as a traditional organisation - with the vision & business outcomes for the organisation. And while the vision may change to meet market demand, it usually changes very slowly. Executives come together to agree on, and align to, the vision and outcomes (and the part of it that they are accountable for) - but here's where is diverges. Rather than spend months creating and agreeing to the plan - the executives agree on "how" to plan. The approach that they and their teams will use to;
- incrementally create & refine the specific initiatives that will work towards the vision
- embed continuous improvement into the process
- inspect and measure the impact the current iteration is having on the vision
- the budget for the initiatives - which, if we know the expected value (to the organisation) of the work, and continue to inspect and adapt, we don't need to know what it will be spent on ahead of time.
We also want this to be an inclusive process; more agile organisations bring the entire organisation (or representatives for massive organisations) into the process. This doesn't mean sending out surveys and asking for feedback - this is to get the teams deeply involved in the planning and decision making process itself. In some cases, the teams will decide on the vision rather than the CEO and board.
Team agility and the strategic management process
The teams within an organisation are key to an organisations success. In an agile organisation decisions are made at the lowest level; by the people who are doing the work and have the most information. And the corporate strategy is no different; the teams will be accountable for its implementation. Executives have two options;
- The first is to retain control over the work and act as the "Product Owner" for their part of the corporate strategy. The executive would be responsible for creating and maintaining the product backlog and actively participating in the process. This follows the Scrum process closely.
- The second is to delegate the outcome to the team. Because the corporate strategy impacts the team directly, it's a little different to a standard product. If they're inspecting and adapting the team can act as their own product owner and decide on the specific activities to achieve the outcome.
I should note here that you must fund the teams (with money and time) to do this work. If it's important to the organisation (and by definition it's the most important things to do), then give the team the time to work on it. It's not a stretch goal or something to be done alongside their day-job. This is the critical work needed to realise the corporate vision; and if the vision isn't important, don't waste everyone's time.
Finally, the feedback cycle. Because we're dealing with strategic initiatives, we usually don't have the same instant validation that we would with a product. However, constant feedback is still needed - look for a combination of lagging and leading indicators that represent success (e.g. staff attrition or industry awareness). However, be alert for vanity metrics; those that, if you improved the metric there would be no meaningful improvement to the organisation (e.g. Increasing Facebook likes or team velocity).
Case Studies[edit source]
BAI Presentations[edit source]
- Selling Agile Across the Enterprise
- Reality Bites and Stranger Things
- Women in Agile and the Confidence Code
- Changing the World of Work
- Transforming an Advertising Agency - Bringing an Agile Mindset beyond Engineering
- The 22000 Persons Start-up
- Forming Self-Selected Teams - How to Create Happy, Empowered, and Effective Teams
- Beyond Budgeting – Business Agility the C-level Understand (and Are Starting to Like)
- Modernizing Government - How Agencies Became Awesome Places to Work Using Holacracy & Scrum
- The Age of the Self-Managed Organization
- Don’t crush the chips
- The Buurtzorg Story
- [email protected]: our journey to be more than a bank
- A Story of Leadership Transformation
- Physical-Digital Transformation at a 125 year-old startup
- The Yin and Yang of Speed and Control
- Agile HR – a Game Changer
- Agile Contracting in the Federal Government
Books & Book Reviews[edit source]
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- Driving Social Change in Agile & Business with Natalie Warnert
- Improving Customer Journeys with Laurence Jourdain
- Transforming GE into a Lean Startup with Lars Bruns and Sudhir Nelvagal
- Phil Abernathy on KPI Madness and Maze Runners
- Katy Saulpaugh’s Survival Guide for Agile Reorgs and Culture Change
- Author Stephen Parry Says: Don’t Implement – Grow!