8 Ways to Shift Your Organization Toward Agile

Regardless of Your Job Title

INTRODUCTION

Why you need to be the one to shift your organizationAgile is built on the value of responding to change. The most successful organizations thrive in complex, unpredictable situations by making the shift toward an agile mindset and away from more rigid, traditional methods. Below, we share eight Agile shifts that any organization can implement to increase flexibility, productivity, and creativity. We’ve also provided a few examples of how others have implemented these strategies with great success.

SHIFTS

In the US, maximizing share holder value is the legal responsibility of any corporation. However, making quarterly earnings a primary focus leads to short-term thinking. Organizations that understand their customers shift the focus from earnings to delight. Profits become a means to provide delight, not the primary goal.

Shareholder value Customer delight & shared purpose

P O W E R E D b y S E R V I C E™

Example: Zappos Zappos CEO, Tony Hsieh, was once asked by a rival CEO how Zappos had achieved its legendary customer service. “We give our emplyees autonomy to make any decision they feel helps the customer,” he answered. To challenge Hsieh’s claim, the other CEO called customer support and requested a pizza to be delivered to the conference. Needless to say, the pizza was delivered.

Predicting & controling Embracing complexity

Anti-Fragile organizations improve in situations of stress and change. They learn from change rather than resisting it (Robust) or bending slightly, and then returning to their old patterns (Resilient). The key to becoming an anti-fragile organization is to empower teams. Dan Pink states in his book “Drive: The Surprising Truth on What Motivates Us”, increased performance stems from giving employees purpose, autonomy and a chance at mastery.

Efficiency Engagement & adaptability

Software has made the world less predictable, and rigid traditional management models are struggling to keep up. Organizations that are structured to embrace complexity have a competitive edge. This aligns with the agile manifesto: “Welcome changing requirements, even late in development.”

Example: General Stanley A. McChrystalGeneral Stanley McChrystal, Chairman of Joint Special Ops command ran a 2000 person daily stand for two hours a day. No matter how often it was pointed out that a meeting that large was an inefficient use of his soldiers’ time, he insisted on conducting it daily. Because he ignored what was most efficient, effectiveness increased 1700%.

Example: Unnamed Medical OrganizationA medical organization was doing a lean management approach. The organization was measuring processes, but failing to get new processes to stick. Once they realized trying to predict best practices and all the possible outcomes wasn’t working, they shifted to embracing complexity by running experiments, reviewing the results and adapting the approach based on those outcomes. This shift lead to change and improvements that everyone could get behind.

Directed groups within an organization are often siloed off from the rest of the organization, and rely heavily on internal hierarchy to act on decisions. By creating autonomous teams that develop their own structures working with cross-functional partners, goals are reached more effectively.

Directed groups Autonomous teams

Traditional organizations are primarily structured around rigid hierarchies and view themselves as machines. When an organization behaves as a network, it becomes a living system that can better address emerging opportunities.

Rigid hierarchies Human systems

Example: Morning StarFood processing company, Morning Star, is responsible for 40% of the U.S. industrial tomato paste and diced tomato markets. The organization has no managers for their 300-1000 employees (Morningstar's workforce includes seasonal workers), and depends on an advice-based decision making process. Each employee makes commitments through a Colleague Letter of Understanding, where they outline their responsibilities and set their own salary. Other employees weigh in on the letter and give “advice,” which the letter writer can choose to incorporate or not.

Example: BuurtzogBuurtzog is a home healthcare organization that specializes in the care of disabled and elderly patients. The 10,000 person organization operates with no managers. There are 40 support staff across the organization, but almost everything is handled within autonomous neighborhood teams. The teams handle all decisions like hiring, scheduling and salary. No manager needed.

Collaboration is critical for success. Rather than creating complex procedures, Agile organizations create a set of simple rules that can be applied to any situation which empowers all employees to make quick decisions.

Complicated process Simple rules

The big question for many executives is “how are we going to communicate this effectively?” Rolling out initiatives in structured meetings doesn’t allow for real communication. Making information openly available empowers individuals and teams to make fast decisions and encourages collaboration on shared goals.

Structured communications Radical transparency

Example: The Ritz CarltonThe Ritz Carlton allows any employee to spend up to $2000 to appease a guest without approval. By not requiring approval, the employee is able to act immediately and delight the guest.

Example: Bridgewater AssociatesBridgewater Associates, the world’s largest macro hedge fund, promotes transparency by making all information available to every employee. For example, all meetings, even one-on-ones are recorded and made available to the whole company.

Most organizations reward employees who “save the day”. This system requires “heroes” to patch the holes in broken systems, and is not sustainable. Transformational leaders nurture an environment where all employees develop as leaders. This way rather than one person being responsible for all decisions, every employee is empowered to innovate, create and improve the organization.

Heroic leadership Transformational leadership

Peter Green is an Agile and SCRUM trainer and practitioner who has certified over 5000 individuals in Agile Leadership. He works with Agile For All, one of the top Agile consulting firms in the country.

From 2005 to 2015 Peter led a grass roots Agile transformation at Adobe. The Agile strategies he provided have been used in developing such software as Photoshop, Acrobat, Flash, Dreamweaver and Premiere Pro.

If you would like to talk with Peter about how Agile can transform your company CALL or WRITE today!

Email: peter.green@agileforall.com

Phone: 303.766.0917

Twitter: @tptman

Example: Menlo InnovationsAs a VP at his former company, Richard Sheridan of Menlo Innovations brought his daughter to work. At the end of the day, she said “You are VERY important, no one can do anything unless you tell them it’s ok.” Sheraton decided to start a new company where he could be a different kind of leader and founded Menlo innovations.

CONTACT PETER GREEN FOR A FREE CONSULTATION

Peter Green, CST