InsightsBorn agile or journey to an agile organization Published 3 months agoon June 21, 2019By Chris Bradley, Martin Hirt and Sven Smit Share Tweet Agility is catching fire, and there is growing recognition of its transformational benefits. But moving to an agile operating model is tough, especially for established companies. There are several paths to agility and many different starting points, yet successful agile transformations all share the common elements described below.Agile organizations are different. Traditional organizations are built around a static, siloed, structural hierarchy, whereas agile organizations are characterized as a network of teams operating in rapid learning and decision-making cycles. Traditional organizations place their governance bodies at their apex, and decision rights flow down the hierarchy; conversely, agile organizations instil a common purpose and use new data to give decision rights to the teams closest to the information. An agile organization can ideally combine velocity and adaptability with stability and efficiency.Transforming to an agile operating modelAny enterprise-wide agile transformation needs to be both comprehensive and iterative. That is, it should be comprehensive in that it touches strategy, structure, people, process, and technology, and iterative in that not everything can be planned up front (Exhibit 1).There are many different paths to enterprise agility. Some organizations are born agile—they use an agile operating model from the start. As for others, broadly put, we see three types of journeys to agile: All-in, which entails an organization-wide commitment to go agile and a series of waves of agile transformation; Step-wise, which involves a systematic and more discreet approach; and Emergent, which represents essentially a bottom-up approach.Born-agile organizations are relatively common in the technology sector. Most organizations must undergo a transformation to embrace enterprise agility. Such transformations vary in pace, scope, and approach, but all contain a set of common elements across two broad stages (Exhibit 2).First, successful transformations start with an effort to aspire, design, and pilot the new agile operating model. These elements can occur in any order and often happen in parallel. Second, the impetus to scale and improve involves increasing the number of agile cells. However, this involves much more than simply rolling out more pilots. Organizations may iterate among these stages as they roll out agility across more and more of their component parts.Aspire, design, and pilotMost transformations start with building the top team’s understanding and aspirations, creating a blueprint to identify how agility will add value, and learning through agile pilots. These three elements inform one another and often overlap.Top-team aspirationSuccessful agile transformations need strong and aligned leadership from the top. A compelling, commonly understood and jointly owned aspiration is critical for success.Adopting an agile operating model can alleviate challenges in the current organization (such as unclear accountabilities, problematic interfaces, or slow decision making). Yet a desire to address pain points is not enough; there is a bigger prize.To build the top team’s understanding and aspiration, nothing beats site visits to companies that have undergone an agile transformation.BlueprintThe blueprint for an agile operating model is much more than an organization chart and must provide a clear vision and design of how a new operating model might work (Exhibit 3). An agile transformation fundamentally changes the way work is done and, therefore, blueprinting also needs to identify changes to the people, processes, and technology elements of the operating model. The blueprint should, at first, be a minimum viable product developed in a fast-paced, iterative manner that gives enough direction for the organization to start testing the design.The first step in blueprinting is to get clear on where the value lies. All operating-model design must be grounded in an understanding of how value is created in the industry and how the individual organization creates value. This fundamentally links to strategy.Next comes structure. An agile organization doesn’t deliver work according to a classic organization chart; rather, it can be thought of as a series of cells (or “teams,” “squads,” or “pools”) grouped around common missions, often called “tribes.” The blueprinting element should produce a “tribe map” to illustrate how individuals that are grouped get work done, as well as a more recognizable organization chart to show the capability axis along which common skill sets are owned and managed (Exhibit 4).Individual agile cells are defined by outcomes or missions rather than by input actions or capabilities. Teams performing different types of missions will likely use different agile models. However, three types of agile cells are most common. First, cross-functional teams deliver products, projects, or activities. These have the knowledge and skills within the team and should have a mission representing end-to-end delivery of the associated value stream. Second, self-managing teams deliver baseload activity and are relatively stable over time. These teams define the best way to set goals, prioritize activities, and focus effort. More broadly, lean-management tools and practices are highly complementary with enterprise agility. Third, flow-to-work pools of individuals are staffed full time to different tasks based on the priority of the need. Functional teams like HR or scarce resources like enterprise architects are often seen as “flow” resources.Working in teams may sound familiar, but at scale this requires change across the whole operating model to provide appropriate governance and coordination. The organizational backbone comprises the stable components of an agile operating model that are essential to enable agile teams. Typically, these backbone elements include core processes (for example, talent management, budgeting, planning, performance management, and risk), people elements (including core values and expected leadership behaviours), and technology components. In trying to scale up, many agile transformations fail by simply launching more agile teams without addressing these backbone elements.The final step of blueprinting is to outline the implementation road map. This road map should contain, at minimum, a view on the overall scope and pace of the transformation, and the list (or “backlog”) of tasks. The five steps of the blueprint form a coherent approach.Agile pilotsThe purpose of a pilot is to demonstrate the value of agile ways of working through tangible business outcomes. Early experiments may be limited to individual teams, but most pilots involve multiple teams to test the broader elements of enterprise agility. Nothing convinces sceptical executives like teams of their own employees having verifiable impact through agile working.Initially, the scope of the agile pilot must be defined and the team set up with a practical end in view; this might include deciding on team staffing, structure, workspace, facilities, and resources. Next, the way the agile pilot will run must be outlined with respect to structure, process, and people; this is typically collated in a playbook that forms the basis for communications with those in the pilot.Scale and improveScaling beyond a few pilots is no small feat; this is where most agile transformations fail. It requires recognition from leadership that scale-up will require an iterative mind-set: learning is rapidly incorporated in the scale-up plan. In this, enough time is required—a significant portion of key leaders’ time—as well as willingness to role model new mind-sets and behaviours. Agile transformations acknowledge that not everything can be known and planned for, and that the best way to implement is to adjust as you go.Agile cell deployment and supportAgile scale-up first and foremost requires standing up more agile cells. However, an organization can’t pilot its way to enterprise agility. The transformation should match the organizational cadence, context, and aspiration. But at some point, it is necessary to leap toward the new agile operating model, ways of working, and culture. For large organizations, this need not be a day one for the entirety but will likely progress through a series of waves.Many chose to start by transforming their headquarters and product-development organizations before touching frontline, customer-facing units (call centres, stores, or manufacturing facilities). It is possible to transform one factory or one end-to-end customer journey at a time, but highly interconnected functions in the headquarters may need an All-in transition approach.The size and scope of waves depend on the context and aspiration.Resources to support new agile cells—for example, availability of agile coaches or appropriate workspace—can often limit the speed of scale-up. Failure to address the support of new agile cells can cause friction and delay in the transformation.Backbone transformationThe backbone governs how decisions get made; how people, budgets, and capital get deployed; and how risk gets managed. Taking an organization to an agile operating model requires that this backbone be transformed (Exhibit 5).Capability acceleratorSuccessfully scaling an agile operating model requires new skills, behaviours, and mind-sets across the organization. This is vitally important and constitutes an intensive phase of an agile transformation. Most organizations require existing staff to take on these new roles or responsibilities, and as such, need a way to build new skills and capabilities. Specifically, any successful agile transformation will invariably create a capability accelerator to retrain and reorganize staff, make the agile idea common to all, and develop the right skills across the organization.A typical capability journey may well have distinct phases. First, organizations need to identify the number of trainers (agile coaches) required, and then hire and develop them; a failure to do so can cause delay and blockage when the agile transformation extends across the whole organization. Second, as part of building capabilities, the organization must define the new agile roles (agile coaches, product owners, tribe leads, chapter leads, and product owners, for example), along with a clear idea of what success looks like in each role. Third, learning and career paths should be set for all staff, making clear the opportunities that the agile transformation opens up. Fourth, the organization needs to enable continuous learning and improvement across the organization (this will entail a large-scale digital and communications program). Finally, it’s necessary to design and run a whole-organization effort to raise agile skills (often by means of intensive boot camps) and ensure that new staff are on-boarded appropriately. Larger organizations often set up an academy to consolidate and formalize these functions.Focusing on culture and the change teamA culture and change team is an essential coordinating element of an agile transformation. But it is not a traditional project-management office; rather, the emphasis should be on enabling the other transformation elements, helping to remove impediments and catalysing culture change.The importance of investing in culture and change on the journey to agility cannot be overstated. Agile is, above all, a mind-set. Without the right mind-set, all other parts of the agile operating system can be in place, and yet companies will see few benefits. In contrast, when leaders and teams have a strong agile mind-set, then a clear aspiration alone is often enough for a successful agile operating model to emerge.Understanding transformation archetypesAll successful enterprise-wide agile transformations include the elements described above, but there are several different ways in which the elements can be combined and sequenced. As mentioned earlier, there are three major transformation archetypes:Step-wise. Transforming to an agile organization often feels like a step into the dark for senior leaders. Perhaps understandably, then, the most common transformation archetype shows a clear distinction between aspire, design, and pilot phase and the scale and improve phase. Many companies will run multiple rounds of pilots and iterate their blueprint several times before fully committing to scaling up across a large part of the organization. It is not uncommon for this process to take one to two years, as leaders and the organization build familiarity with agility and prove to themselves that agile ways of working can bring value in their organization. Organizations may well go through several subsequent rounds of aspire, design, and pilot before scaling up elsewhere.All-in. Although less common, an increasing number of organizations gain strong conviction early on and fully commit up front to move the whole organization to an agile model. Leaders from these organizations define a plan to execute all steps of the transformation approach as quickly as possible. Even in these types of transformation it is rare for the whole organization to transform to an agile model in a single “big bang”; rather, it is more common for the transformation to proceed through a number of planned waves.Emergent. It is impossible—and not very agile—to plan out an agile transformation in detail from the start. Instead, most agile transformations have emergent elements. Some organizations have chosen to progress their entire agile transformation through an emergent, bottom-up approach. In this archetype, an aspiration from top leaders sets a clear direction, and significant effort is spent building agile mind-sets and capabilities among leaders. Related Topics: Up NextGrowth-leadership mind-set needed to capture growth Don't MissAre we long—or short—on talent? Continue Reading Advertisement You may like Click to comment InsightsGrowth-leadership mind-set needed to capture growth Published 1 month agoon August 15, 2019By Chris Bradley Everyone may be born a winner, but only few (if not none) are born leaders. Hence Leadership, like cooking, painting or any other skill must be developed and enhanced to the fullest potential. While growth is needed, the will to grow which first develops in the mind, takes precedence. Mind-set, curiosity, and a willingness to adapt to client needs and industry trends form the three core capabilities needed to succeed in any given business environment. A good business leader then, is mandated to harness these core capabilities to transform the business to higher heights; leadership delivered with a growth mind-set will absolutely birth the full potential of the business. Growth-leadership mind-set offers a vast room for a leader to try so many strategies aimed at growing the business. There is room to try, fail, learn from it and do a better job and this, by extension gives the leader the ability to move at a steady pace yielding faster and better results on projects. Having the growth-leadership mind-set is really critical. The end product presented to a client or customer reflects the kind of work flow and leadership present in the business, how teams/employees behave, how they act, collaborate, what they take to clients and even how they deal with failure shows in the final product that goes in front of the client. This is a feat consistent with leadership that is growth oriented. A leader whose sole focus is growth; A lack of these elements, a loss of clients/customers. With a growth-leadership mindset, a business lead is driven Everyone may be born a winner, but only few (if not none) are born leaders. Hence Leadership, like cooking, painting or any other skill must be developed and enhanced to the fullest potential. While growth is needed, the will to grow which first develops in the mind, takes precedence.Mind-set, curiosity, and a willingness to adapt to client needs and industry trends form the three core capabilities needed to succeed in any given business environment. A good business leader then, is mandated to harness these core capabilities to transform the business to higher heights; leadership delivered with a growth mind-set will absolutely birth the full potential of the business. Insights Insights to focus solely on making sure the business grows; trying new strategies that can move the business and not just limiting one to accepting what works and sticking to it.Here growth is the focus and things must move forward in that direction, there is no room for stagnation. Thinking about how things can happen rather than thinking about how things cannot be changed. In other words; this mind-set allows a leader to step out of the business’s comfort zone and make impact while overcoming obstacles. That is the kind of leadership mind-set people in top positions must adopt in the various business settings. It begins in the mindCapita Chief Growth Officer, Ismail Amla, in an interview with McKinsey’s Biljana Cvetanovsk mentioned that when he was growing up, his dad used to tell him, “If you think you’re going to do it, you’re going to be right. If you think you’re not going to do it, you’re going to be right.” A growth-leadership mindset, for him, therefore, is the neuroscience confirming the hypothesis that how one thinks determines how they feel and how they behave, and how one behaves determines the outcome.If the mind’s eye does not see growth and the prospects thereof, it will not happen. The team lead’s responsibility then becomes to see the growth ahead, map out a strategy to achieve that goal and drive the team to collectively hit the mark and scale higher. Else, the business may do well with what it knows to do and remain stagnant like it knows to be, but never higher than it could be. CuriosityA team lead needs to really understand what clients/ customers want. This has been termed in the market as “consultative selling” where the focus is on value and trust and exploring the client’s needs before offering a solution. This definitely gets one to understand the better what really people want or need. Learning agilityIt is not enough just knowing about something; a team lead has to go the extra mile to learn everything. It is important to learn what the problems are and how to solve them. Limiting oneself to just working by what you already know can only lead to failure. In addition to being curious and having a ready to learn attitude, a team lead should ultimately have a growth mind-set.These are three core capabilities required to drive growth. People may sometimes attribute doing what they want to do at any time as a leader as growthleadership, but that is not the case; to get up, doing what needs to be done and adding the importance of time to task is what growth-leadership is. This leads to the next point, Take Action! Take Action; do!Further from the mind, the leader must then, walk the talk. Like the age old adage goes, talk is cheap. The strategies put on paper or mentioned orally must be fully executed to bring to full fruition what has been in mind. This is what will actually make the business growth happen.Steps like delivering the best, meeting customer/client demands on time, maintaining consistency in delivery, making upward adjustments in the quality of work based on market demands and keeping a great client-agency relationship charts the business on the growth path. Taking all these steps, moving high mountains and deeper valleys to realize all the goals in the growth plan leads to the ultimate realisation of an elevation in the business structure, process and yield. A dive in the doing waters takes one beyond the mind to the actions of primarily the head.The team lead with the growthleadership mind-set must first begin with improving on himself or herself and his/ her innate leadership qualities. Managers who show great leadership qualities can inspire their teams to accomplish amazing things. The other arm of the branch is the team. Accomplishing pragmatic coups also relies heavily on the efforts of a team; a team sharing the leader’s vision and possibly having the growth of the business at heart.Against this backdrop, there must be a conscious effort to build a solid team. It is said that one is as good as his/her team. Therefore, a growth-leader must bear in mind to grow his team. The collective powers of the team under the effective supervision of the leader results in high performance which steers the growth wheel, thus, it is paramount to invest largely in developing the team.This ranges from helping them develop their skill set, expanding their knowledge scope in their respective fields to providing little things like increasing their vocabulary. How? Small or big steps like enrolling the team is training programs, pay for them to attend seminars, buy books and share weekly reads with them. One cannot give what one doesn’t have.The team can only reproduce what they know, make sure their pool of knowledge is so large and deep and they would draw when needed to always over-deliver set targets – pleasing the clients and accruing more business as a result; more deals, more profit. Again, the leader who grows his team also breeds a sense of trust and loyalty from his or her team. On average, after graduating from college, a millennial will change jobs four times before they are 32.Most of them also don’t feel empowered on their current jobs. There is therefore the need for the team lead to consciously spend time and energy in developing the capacity and general ability of his team mates. For instance, a team’s social media manager in a team whose leader sets him or her up to be a Google certified digital marketer not only now has the capacity to take on more responsibilities for the team and add value to the team, but also appreciates his/her leader by remaining loyal to both the business and the leader; more value for less.A great leader and a great team need a great structure to realize the business’ full potential. A business structure that works; one that eliminates time wasters like micromanaging, red taping and unnecessary bureaucracy. A system that is designed to work its best with little or no supervision. For instance, in a business operating system where productivity depends on 50% of the man power or human resources, outputs are likely to be higher than one relying on 80% of man power.Automating systems eliminate chances of human errors and ensure that the best work is delivered to a client each time. Adopt modern technology to set targets, reminders, achievement scale, simplify the system, have a tracking and reporting framework that shows what is happening when it’s happening and who is responsible for what. This gives the opportunity to weed out non performing team members, reward performing once and modify strategies in order to meet set goals.The time a leader spends in micromanaging his team could be used more productively in ventures like research into trends and better ways of exceeding client expectations. While it is true that people do the things you inspect and not those you expect, it is also imperative that one creates a system that does the monitoring on behalf of the leader to churn out great results and total progress on the growth ladder. Achieve Set Goals and targetsThe growth mind-set is backed strongly by the will to achieve and over achieve. This phenomenon also rests in the mind; that every challenge has a solution and that no mountain is too tall to climb, forms the mind-set an achiever. With an excellence-driven team under a growth mind-set leadership utilizing an efficient business model or procedure, consistently achieving is inevitable and more importantly business growth is not far from reach.Growth-leadership mind-set incorporates the use of one’s mind-set to grow, taking productive action that is result oriented and finally achieving set goals and targets. In these disruptive times where new technology and innovations are springing up, one needs to be abreast with everything. 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