Do you know what organizational agility is? This is a subject much talked about in the corporate environment.
Beyond the competition, the company needs to respond quickly to customers’ concerns. In addition, keeping up with technology is a must to maintain a prominent position in the market.
Organizational agility implements people management techniques, internal communication, and performance measurement. In this article, you will see different points to Large Scale at Scrum when you have organization agility.
What is organizational agility?
The market is constantly changing, customers are increasingly demanding and technological, where everything changes very quickly. How to quickly adapt to changes?
Organizational agility is the ability to renew and adapt in a dynamic, fickle, and hectic environment. To better understand organizational agility, read below two characteristics that define the concept well:
- Dynamism: The corporate environment is dynamic, with quick, precise, and assertive actions. It requires proactivity and instant feedback.
- Balance: Organizational agility is based on balance, all strategies, necessarily, need to be coherent and mature.
Given all the changes that are implemented, some points necessarily need solidity to support the structure and sustainable growth of the company.
Today, you will learn how to apply organizational agility in your company and learn about the benefits of this new management model.
1) Organizational agility as a competency
The success of a company is directly linked to its ability to adapt to constant changes, to meet the needs and desires of customers with excellence.
When the company manages to reach this level of attention and adaptation, it reaps the benefits of organizational agility with a great competitive advantage.
The way to achieve organizational agility is through the synergy between people and processes.
For this, it is necessary to create a culture of organizational agility at all levels of the company. Businesses must be aligned not only among managers, the strategies applied must reach everyone in the organization.
The path is through efficient communication between all employees.
In a company that has organizational agility as its foundation, everyone clearly knows the mission, values, objectives, and goals.
It is necessary for employees to feel part of the process. For this, it is essential to designate responsibilities and attributions, even risks, so that the process flows naturally and efficiently.
2) The way to achieve organizational agility
Businesses need to adapt to changes, as they are constantly in an organization’s routine. Processes inevitably need to be able to be modified and transformed by improvements.
They cannot be complex, much fewer perfectionists. Technology is increasingly optimizing processes. In just one click, the customer can get what he wants. The company needs to work with simple and easy-to-understand processes so that tasks are carried out without errors and with quality.
Teams are formed with profiles of professionals who like challenges. They have skills related to change and this tends to bring better results in projects.
A common mistake is when companies are resistant to changing their structures when implementing the culture of organizational agility.
It is common, especially, not to change points of the structure where the processes work well, with employees who perform their functions with excellence.
3. Corporate Governance
Efficient corporate governance is qualified to make assertive decisions that direct efforts towards achieving the organization’s goal.
A stable environment provides the security to make consistent and cautious decisions.
It is important to create an enabling environment for employees, especially those who are positioned in the front line, in direct contact with the customer, to make suggestions for improvements.
Flexibility in the processes is very important, but that doesn’t mean that they don’t have rules and restrictions that must be complied:
• For the purchase of a certain product, a condition is to carry out market research with at least three quotes.
• There is a scale of values for purchase, which must be authorized upon approval by those responsible.
Although everything works with agility, control is essential.
3) Benefits of operational agility
Operational agility is the ability a company has to quickly readjust in terms of strategy, structure, processes, employees, and technologies while maintaining its creative and production values, preserving opportunities always within reach.
This ability would not only increase and improve the production and performance of the team, but it would also preserve the company’s competitiveness. Despite these benefits and the constant emergence and development of numerous techniques for operational agility, however, many companies still wear out in long and costly processes.
4) How to identify an agile organization
Agile management involves all levels of the organization of a company, from the behavior, mindset, and attitude of managers to what the company produces and delivers. To identify the operational agility of a company, in this way, one must take into account:
- Required level of agility of the organization and employees due to market/consumer requirements;
- The current level of operational agility of the company and employees;
Identification of the deficit between the required agility and the real-time of the company’s and employees’ deliveries.
- The greater the deficit, the greater the efforts to reduce this gap, to increase the operational agility of your organization as a whole, and maintain your company’s competitiveness and performance in the market.
5) Adopting operational agility in your company
The agile organization has the resilience to adapt to constant market changes, responding quickly to internal and external factors to make the most of all the resources and opportunities at its disposal.
- Risk management
- Optimized production and time management
Three attitudes that will help reinforce your operational agility
Also according to the McKinsey article, the surveys identified patterns of behavior that impede operational agility in companies with weak management. From this, three attitudes were developed that can favor a change in this situation.
Agile transformations will be more successful if supported by comprehensive management actions to teach employees the new rhythm, creating an agile-minded business culture.
These actions should cover four main aspects:
- Leaders and other employees must be aligned in their mental and behavioral attitudes, continually discussing all the points that need to be improved;
- Leaders who will shape the new mindsets and behaviors, becoming the ones most responsible for this change;
- Employees will need support in developing these new skills, which they will rely on to succeed in the new organizational model; and
- Formal mechanisms must be created to reinforce and enforce changes, rewarding and encouraging employees who adopt new behaviors more quickly.
Be clear when defining the vision of the company’s new organizational model
McKinsey’s results also indicated that agile units are the most important in creating a vision and purpose to be shared. Aligning this vision through strategic guidance is essential, as it will serve as an example to other sectors.
In contrast, companies that have not yet achieved operational agility have, as a major limiting factor, the inability to create a meaningful or clearly communicated vision.
6) Know exactly where and how to start the change
Respondents whose organizations had not yet initiated the transformation to more agile management used, as an excuse, the costs they would have to redesign and implement a new system.
Although the cost of this implementation varies from company to company, it is important to first identify which organizational areas are demanding change.
Second, you need to assess which methodology is most suitable for your organization, that is, which method will most appropriately leverage your operational agility, so that strategic, structural, procedural, personnel and technological actions reinforce each other.
It is also necessary to determine what resources and deadlines the transformation will require so that the effort for change can be put into action. During this period, the scope must remain free and manageable in case of any intervention.
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