Business Agility (part II)

In the first part of this article we have introduced the business agility concept, introducing some key ideas of what is means to be agile after all. Unless these crucial considerations are taken seriously, there is no point in adopting this or that agile approach applied in isolation. Many implement frameworks like Scrum or Kanban figuring that the method by itself will ensure their agile transformation. Obviously, practices and methodologies are important, but that is not what determines that a company is agile. Methods are ways to reach agility, not its purpose. Even when scaling agility through models such as SAFe, LeSS, DAD, Nexus, S@S, and so on, this does not mean that the organization will be nimble. Also, we do need to be very careful with issues related to interdependence between teams, compliance, suppliers, among other aspects. Agility is definitely not just about technology or colorful post-its on the wall, nor about running multiple teams running Scrum all at the same time. Agility is related to continuous innovation, because it is exactly through it that organizations can better navigate a market with such variability. Innovation creates value and even generates new markets. But for this to be possible, the agile mindset presupposes greater tolerance for error. The organization will not always get it right, actually, most of the time even tends to go wrong. But it takes a culture of agility that supports this new praxis. In a dynamic environment, adjustment requests will arise from all internal or external stakeholders. For this reason, it is necessary to innovate not only in terms of products, but also in terms of processes. The more agility is present, the faster the organization can respond to the demands of adequacy.The structure of the organization and its modus operandi also end up changing to accommodate less hierarchical and more horizontal patterns that favor the formation of multidisciplinary teams. What matters is not necessarily how many hierarchical levels are left, but whether the prevailing mindset is properly spread throughout the company through leadership and all its workers. The reason for this is very simple: there is no room for bureaucracy in a VUCA world. The vision from the classical management school built upon guru’s like Taylor, Fayol and Webers was extremely important in the context in which it was established, and many organizations still live by its precepts. However, the idea of rigid hierarchical levels, establishing positions according to command-and-control principles and a rational division of labor that presupposes a standardized routine of procedures, no longer matches the reality of the ecosystem in which we live.Processes need to be streamlined, regardless of the agile approach to be taken. Too much formalism, rules, and the display of authority signals only generate more resistance to change and greater friction and difficulty for the various stakeholders, as the relationship is depersonalized to the detriment of super-conformity with routines and procedures that do not necessarily generate customer value. If the focus becomes the customer obsessively, everything else will turn to that obsession. To this end, a new management paradigm needs to be established aiming at adapting to the challenges that unfold. Especially because as Albert Einstein brilliantly suggested, Its insane to keep doing the same thing and expect different results”. Today, every business is a technology company to some degree. Digital transformation goes hand in hand with the agile transformation. But it is important to make clear that all this indispensable conversion is not a new invention caused by the use of information technology. Especially because in essence, the ideas behind agility are not necessarily contemporary. In fact, some of them refer to Toyotas concept of lean manufacturing, with regard to customer focus, limitation of work in progress, focus on waste reduction, visual management, transparency, among others. But at the same time, we should also recognize the considerable and significant role that the software industry played in this transformation, especially after the release of the famous Agile Manifesto in 2001, which values: individuals and iterations over processes and tools, working products over comprehensive documentation, customer collaboration over contract negotiation and responding to change over following a plan. They are simple values, but with huge innovative potential.It could be argued that in addition to the management board, all professionals in the organization need to be at the same pace, placing the client within the nucleus of any initiative that generates value. This claim more than justifies itself since is exactly people who may or may not make a difference. A disengaged team works meaninglessly, with less joy, less inspiration. The result, sooner or later, appears inevitably. It is good to work cheerful, humorous and with pride in what is being developed. Although the word “happiness” remains a taboo in many organizations, within the agile context, it makes all the difference. The consumer expects a “wow” experience with the product or service purchased and in order to pass on that feeling one needs to maintain an internal harmony that reflects a good customer experience. Hypocrisy has to be reduced necessarily because one cannot falsify or tamper with that feeling, at least not for too long.This healthy concern of having extraordinary and happy people forming the team should exist from the selection process and persist throughout the employees lifetime in the company. But how to cultivate and maintain these professionals, ensuring that they give their full potential for the organization? Much has been said about the need to set up teams with dedicated, intrapreneur-minded people, but some precautions deserve to be observed. Typically, agile organizations work in small batches and take precaution to reduce multitasking. At this point, agile methodologies help by defining short time periods when the team focuses on producing a given increment of a potentially product to be delivered. Another point is that it is healthy and desirable to divide in order to conquer. Small cross-functional teams with clear responsibilities can be built, with autonomous decision making and aligned with each other, considering that the organization as a whole remains the same. The holocracy has found its place in agile teams, which also work with strong attention to communication and transparency in the conduct of their projects. Each team may create a working agreement that is more coherent and makes more sense for its operation, but the commitment to the result is with the team, not at an individual level. In this sense, the incentive system must also be modified to accommodate team achievements rather than individuals as usual. A new agile era settles in intensely and indelibly, demanding a differentiated attitude from the leadership of organizations. The transformation is profound and in full development with a strong focus on customer value generation. In this sense, a holistic involvement is imminent, not only from people, but also regarding the processes involved, the organizational structure and the culture itself. nbsp;Being submitted to the clients reign demands to assume a mindset that understands, honors and takes this conception very seriously.In terms of agility, there is no one single path for any organization. No radical change is expected at a short notice and not even the copy of models already developed, as each company has its idiosyncrasies that need to be respected. Normally, the IT sector ends up carrying the torch of agile metamorphosis, but its repercussion has already expanded to several other departments of companies of the most different segments. Most important of all, transformation occurs through people, targeting other people. Therefore, starting small and developing the mindset and agile practices in the organization progressively can be a good option, but always bearing in mind that as with any cultural change, leadership should lead by example.