As one CEO observed, “I’d never have launched this agile transformation if I only wanted to remove pain points we’re doing this because we need to fundamentally transform the company to compete in the future.” This aligns with McKinsey research showing that transformations emphasising both strengths and challenges are three times more likely to succeed. Yet a desire to address pain points is not enough there is a bigger prize. 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.Īdopting an agile operating model can alleviate challenges in the current organization (such as unclear accountabilities, problematic interfaces, or slow decision making). Such transformations vary in pace, scope, and approach, but all contain a set of common elements across two broad stages (Exhibit 2). Most organizations must undergo a transformation to embrace enterprise agility. 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.īorn-agile organizations are relatively common in the technology sector (for instance, Spotify or Riot Games 1 Stephen Denning, The Age of Agile: How Smart Companies Are Transforming the Way Work Gets Done, New York: AMACOM, 2018.), with rare examples in other industries (Hilcorp, a North American oil and gas company, is a case in point). Some organizations are born agile-they use an agile operating model from the start. There are many different paths to enterprise agility. 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). Transforming to an agile operating modelĪny enterprise-wide agile transformation needs to be both comprehensive and iterative. An agile organization can ideally combine velocity and adaptability with stability and efficiency. Traditional organizations place their governance bodies at their apex, and decision rights flow down the hierarchy conversely, agile organizations instill a common purpose and use new data to give decision rights to the teams closest to the information. 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. There are several paths to agility and many different starting points, yet successful agile transformations all share the common elements described in this paper.Īgile organizations are different. But moving to an agile operating model is tough, especially for established companies. Agility is catching fire, and there is growing recognition of its transformational benefits.
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