The Agile Transformation Imperative: Thriving In A Post-Covid Future

COVID-19 has led to the biggest and fastest shift in human behavior change at scale, ever. Almost every organization found they had to re-invent themselves, with everything getting disrupted. The only way to manage this shift had been the accelerated adoption and shift towards a new normal, agile operating model that helps the organization steer through today’s and tomorrow’s economy. Many CEOs want to take advantage of this moment, where new ideas are getting implemented at an unprecedented pace to reinvent their companies1 . However, the conventional transformation and change management approach, often characterized by the burdensome process, extensive timelines, and drawn-out rollouts won’t solve the problem in present times.

For some companies, the big reset has already happened and for some, it’s on the horizon, leaving companies with no choice but to transform the way they operate and do it in a manner that is nimble, flexible, responsive, transparent and more predictable. Yesterday’s business logic might not work in present times and there is a huge risk relying on improvements that only scratch the surface. According to a recent McKinsey survey, 80% of executives think that their business models are at risk.

All company-wide agile transformation initiatives need to be both wholistic and iterative. What it translates to is that the agile transformation initiative should be comprehensive enough that it touches across strategy, structure, people, process, and technology, and should be structured in a way that it is iterative as not all can be planned and anticipated upfront. Organizations with a mature agile transformation agenda and adoption model fared far better than those with a lack of proven framework. For those who are less well prepared, it may be the right time to play catch-up and ensure that they are prepared, whether it comes as the world evolves or their competition.

How can companies drive agile transformation in the age of Covid?

This has been the subject of most of my recent discussions with business and industry leaders as most of the agile transformation programs fall short with just 25% of transformation initiatives delivering the desired business impact. Based on my experience in driving multiple transformation initiatives of different size and scales here are the top 5 factors for successful transformation.

Delivering on all 5 of these key factors increases the success rate of digital transformation initiatives from 26% to over 70%!

Ensure Adequate Sponsorship

The sponsor can minimize barriers to change and ensure the rapid and effective implementation of project outcomes. A sponsor provides resources required for change and has the ultimate responsibility for the program or project, building commitment for the change particularly at the senior management level across the organization. The sponsor for a transformation initiative should also be someone with sufficient authority, influence, power, enthusiasm, and time to ensure that any conflicts that could potentially impede the change are resolved in a timely and appropriate manner.

Create a Compelling Future State

To be effective, a transformation initiative must convey a clear picture of what the future will look like with compelling imagery of the future vision. While it should also take into account the current realities of the enterprise, but set forth goals that are truly ambitious. The future state should appeal to the long-term interest of employees, customers, shareholders, and others who have a stake in the enterprise while clear enough to provide guidance in decision-making and serves as a “true north” that align the actions of others.

Continuously engage and empower the right people

The people part of a transformation initiative is as important as the technologies, processes, and infrastructure involved. Successful transformation requires empowerment and participation at all levels of the organization. Identifying and giving a broader range of people more power to drive organizational change is paramount to success. Inspiring the team is a great thing, but physically and psychologically giving them more autonomy to participate in the transformation process is critical.

Establish Agile Transformation Governance

The entire transformation process should be handled in a careful and disciplined manner from different perspectives, especially when it is scoped to be carried out on a significant part or at a company level. It not, it may easily become unforeseen and uncertain why and where the journey started, where you have to go, and what needs to be prioritized in the transformation. An agile transformation governance model is key in ensuring transparency, building rigor and guiding the transformation efforts to the best optimum.

Maintain Mid/Senior leader alignment throughout the Transformation Journey

Nothing guarantees the failure of a transformation initiative more than a lack of alignment within the mid/senior leadership team. No responsible leadership team wants to be misaligned, but it happens often and can be extremely detrimental to the success of a change initiative. When alignment does not exist, the entire company feels it, which in turn results in employees being not aligned and not connected to the shared sense of purpose. Conversely, when alignment does exist, employees will invest more of their time, talents, and energy into meeting or exceeding the set-out goals and accomplishing the vision.

About Martin Daffner

With over 25 years of experience driving innovation and building innovation organizations with firms like Procter & Gamble, Cisco and Avery Dennison, Martin comes with world-leading hands-on knowledge and experience turning innovation concepts and ideas into real business outcomes. In 2006, Martin relocated to China to start up the Asia Pacific Innovation Center for a Fortune 500 company and since then Martin has been working with the largest global corporations in China to design and deliver incubation and acceleration programs.

Martin is also an experienced entrepreneur. He began his own innovation practice, working closely with senior business leaders in firms like Johnson & Johnson, Intel, Cisco, L’Oréal, Auchan, Inchcape, and others. Contracted with Cisco Services as their Senior Innovation Architect, where he developed and deployed a ground-breaking business growth program that was awarded the HBR/McKinsey M-Prize for “Innovating Innovation”. Martin recently, joined the Fung Group’s Fung Academy to lead their Strategy and Business Practices team.

(1) Source: PwC — CEO’s: Post COVID-19 changes are permanent and there’s more to come: McKinsey — COVID-19 Facts & Insights October 30 Report