The fgi path towards an agile organization

Transcription

1 The fgi path towards an agile organization

2 Heading towards an agile organization The fast ascent of new markets and the rapid growth of flexible and fast acting global companies such as Google, facebook or amazon in the past decade have illustrated that in today s business world previously reliable parameters for predicting company success (e.g. company size, total focus on efficiency and performance) now apply less and less. In the face of these agile organizations many traditional companies look for answers and new solutions that are both feasible in their organizational settings and allow them to keep a competitive edge. The fgi approach does not only outline the necessary questions managers need to ask, it also provides possible ways to introduce the agile way of working in existing complex and multifaceted organizations. It draws from profound expertise in leadership, mindset and cultural change accumulated by fgi over the past 30 years. 2

3 Global, technology and social developments drive organizations towards agility Relying on structures, processes and linear thinking limits creativity and speed. Most of today s processes are strictly sequential and based on a silo mentality. However, their ability to meet customers requests for innovation and flexibility is constantly decreasing. Globalization has made the environment considerably less predictable regarding political developments or emerging disruptive competitors. Digitalization is changing the game in many industries. It is affecting business models and requires tech-savvy employees. Today s employees are highly qualified and purpose-driven. Leadership approaches guided by goals and by command & control become less adequate and effective. 3

4 Our baseline: What we mean by organizational agility Organizational agility is the capability of a company to continuously generate new business opportunities and to act flexibly and fast in order to deliver business value. FischerGroupInternational 4

5 Becoming agile requires organizations to rethink and reshape their corporate cultures Recently founded companies benefit from establishing an agile organization from scratch. In contrast, companies that have successfully grown with traditional structures in the past need to address several aspects in their journey towards an agile organization. From Relying on hierarchies Towards Trusting in individuals resourcefulness and self-organization Silo mentality Cross-functional collaboration Relying on in-house insights Focusing on efficiency and performance Embracing external perspectives and customer insights Focusing on speed, flexibility and innovation 5

6 A shift in thinking patterns and behaviors is the foundation of the agile journey From Towards People need to be instructed want to contribute and succeed Ownership belongs to the management is shared by (cross-functional) teams Decisions are made by the management are made where the expertise lies Success is credited to individual heroes is credited to teams Failures & errors Communication are avoided and concealed is formal and controlled by hierarchies are made transparent and considered value-adding is direct, personal and integrating Working relationships are based on contracts, rules and targets are based on cooperation and a shared purpose 6

7 Especially leaders face new challenges in agile organizations Now In future Implications Hierarchies with many leadership and management levels Leadership mainly entails managing operational processes and ensuring efficiency Leaders exert control over processes and are held responsible for successes and failures Flat organizations with significantly reduced management levels and only a few leadership positions Leadership mainly entails providing orientation, coaching and driving group processes Teams are held responsible for both processes and final results Significantly fewer leaders, especially middle managers and loss of hierarchical status Development of new leadership competencies is required Leaders lose the power to make decisions and no longer bear responsibility alone 7

8 In addition, different competencies and attitudes become more important Experimental future orientation Continuously questioning the status quo. Thinking in alternative future scenarios and analyzing distinct possibilities. Independent thinking Thinking independently about traditional frameworks and models. Using own thoughts for new approaches. Enjoying alleged impossibilities and changing perspectives. Empathic communication Connecting to own emotional states and others subjective perceptions, e.g. by genuine and appreciative feedback and praise. Dealing with systemic complexity Readily dealing with both complex technical systems and unclear targets, conflicting requirements, changing interpersonal relationships and group dynamics. Selfless use of power Using power for the greater good and shared goals (the team, the company) rather than selfishly (career, prestige, need for dominance). Sharing and contributing with others in mind. Interdisciplinary understanding Cooperating with experts from other areas effectively. Understanding, applying and communicating concepts and knowledge across multiple disciplines. 8

9 The fgi approach starts with a thorough discussion at the top, followed by an experimental process The executive leadership team understands the situation outlines purpose and vision agrees on the framework decides to start the process Agile teams translate purpose into actions develop new approaches and new ways of working focus on speed and flexibility 9

10 The top management team should provide answers to two strategic questions Why? What exactly makes us become agile? What are external and internal drivers (e.g. market, customers, technological trends)? What evidence do we have that agile transformation will make our business more successful? How? What is the focus of our agile strategy? How far do we dare to stick out our necks? Are we choosing a disruptive or an incremental approach? What are the greatest challenges and risks in our agile transformation? What are the binding principles that guide us and our employees? 10

11 The top management needs to decide how to introduce agility Changing with a big bang Gently nudging all employees Starting with one unit Approach: Agile structures, roles and processes are introduced throughout the entire company. Advantage: A radical approach quickly creates an appropriate context for new ways of thinking and working. Challenge: Dealing with a large amount of uncertainty, confusion and inexperience. Approach: Selected agile practices are introduced throughout the company. Advantage: Induces transition and cultural change gently, including plenty of employees and departments at the same time. Challenge: Dealing with gaps between remaining traditional structures and new agile way of working. Approach: An agile approach is implemented in one unit or division. Advantage: The scope of change is clearly defined. Straightforward introduction of methods designed for this purpose. Challenge: Integrating teams and results into non-agile structures and processes. 11

12 There are five key elements that ensure the success of agile journeys Purpose Both the purpose of the (new) company and of the change process must be fully convincing and be able to adapt to company units, products, areas of responsibilities and tasks. Dialogue and communication Direct, speedy and informal communication concerning goals, results, obstacles and success within the agile teams and also with customers, experts and leaders is key to agility. Visualization One of the cornerstones that leads to constant exchange, transparency and speed is always displaying the current work status and steps clearly and visibly for everyone. Customer focus Keeping an eye on the environment and the requirements of current and future customers at all times is a central feature of agile organizations. It is the framework and foundation of (almost) every decision. Fail early and learn attitude The key element of agile cultures is having the courage not only to give risky and unexpected ideas a try but also failing (cheerfully) again and again in order to draw informative conclusions. 12

13 Agile journeys require new key roles Top management describes the purpose and vision sets the framework for the process is available for questions and engage in dialogs Specialists e.g. IT managers, HR business partners, business analysts are functional experts and support on operational levels Agile teams Product owners serve as an interface for all stakeholders, especially for the top management are in charge of the change backlog and ensure that the interests of all stakeholders are considered Team members are staffed cross-functionally, self-organized and responsible for delivering results as a team implement change experiments and play an active part in the inspect & adapt steps Agile masters are responsible for the process and manage group dynamics foster open discussions, honest feedback and adequate flow of information Transition coaches support the process by observing the team and their organization and disrupting old habits and thinking patterns;; mediate between the team and the top management, possibly supporting the latter to let go 13

14 An agile organization at a glance 14

15 fgi Fischer Group International Brodschrangen Hamburg, Germany Tel. +49 (0) info@fgi-mail.com fgi Fischer Group International Dufourstraße Zürich, Switzerland Tel. +41 (0) info@fgi-mail.com fgi Research Institute Brodschrangen Hamburg, Germany Tel. +49 (0) info@fgi-research.com fgi DigitalSolutions Brodschrangen Hamburg, Germany Tel. +49 (0) info@fgi-mail.com 15