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The paradigm must then shift to include that new information.
The Blockage: Rethinking Organizational Principles for the 21st Century - Eva Kras - Google Книги
We are now seeing a paradigm shift in the ways that organizations balance stability and dynamism. It operates through linear planning and control in order to capture value for shareholders. The skeletal structure is strong, but often rigid and slow moving. In contrast, an agile organization designed for both stability and dynamism is a network of teams within a people-centered culture that operates in rapid learning and fast decision cycles which are enabled by technology, and that is guided by a powerful common purpose to co-create value for all stakeholders. Such an agile operating model has the ability to quickly and efficiently reconfigure strategy, structure, processes, people, and technology toward value-creating and value-protecting opportunities.
An agile organization thus adds velocity and adaptability to stability, creating a critical source of competitive advantage in volatile, uncertain, complex, and ambiguous VUCA conditions. First, the old paradigm. In , the Ford Motor Company was one of many small automobile manufacturers. A decade later, Ford had 60 percent market share of the new automobile market worldwide. Gareth Morgan describes Taylorist organizations such as Ford as hierarchical and specialized—depicting them as machines.
For decades, organizations that embraced this machine model and the principles of scientific management dominated their markets, outperformed other organizations, and drew the best talent. This is expressed in four current trends:. When machine organizations have tried to engage with the new environment, it has not worked out well for many.
From what we have observed, machine organizations also experience constant internal churn.
The old paradigm: Organizations as machines
According to our research with 1, executives, they are adapting their strategy and their organizational structure with greater frequency than in the past. Eighty-two percent of them went through a redesign in the last three years. However, most of these redesign efforts fail—only 23 percent were implemented successfully. The trends described above are dramatically changing how organizations and employees work. What, then, will be the dominant organizational paradigm for the next years? How will companies balance stability and dynamism?
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Moreover, which companies will dominate their market and attract the best talent? They design stable backbone elements that evolve slowly and support dynamic capabilities that can adapt quickly to new challenges and opportunities. A smartphone serves as a helpful analogy; the physical device acts as a stable platform for myriad dynamic applications, providing each user with a unique and useful tool. Finally, agile organizations mobilize quickly, are nimble, empowered to act, and make it easy to act.
In short, they respond like a living organism Exhibit 1. When pressure is applied, the agile organization reacts by being more than just robust; performance actually improves as more pressure is exerted. Moreover, such companies simultaneously achieve greater customer centricity, faster time to market, higher revenue growth, lower costs, and a more engaged workforce:.
As a result agility, while still in its early days, is catching fire. This was confirmed in a recent McKinsey Quarterly survey report of 2, business leaders. According to the results, few companies have achieved organization-wide agility but many have already started pursuing it in performance units. For instance, nearly one-quarter of performance units are agile. The remaining performance units in companies lack dynamism, stability, or both.
However, while less than ten percent of respondents have completed an agility transformation at the company or performance-unit level, most companies have much higher aspirations for the future. Three-quarters of respondents say organizational agility is a top or top-three priority, and nearly 40 percent are currently conducting an organizational-agility transformation. High tech, telecom, financial services, and media and entertainment appear to be leading the pack with the greatest number of organizations undertaking agility transformations.
More than half of the respondents who have not begun agile transformations say they have plans in the works to begin one. Companies that aspire to build an agile organization can set their sights on these trademarks as concrete markers of their progress. While each trademark has intrinsic value, our experience and research show that true agility comes only when all five are in place and working together.
They describe the organic system that enables organizational agility. Linking across them, we find a set of fundamental shifts in the mind-sets of the people in these organizations. Make these shifts and, we believe, any organization can implement these trademarks in all or part of its operations, as appropriate.
Agile organizations reimagine both whom they create value for, and how they do so. They are intensely customer-focused, and seek to meet diverse needs across the entire customer life cycle. Further, they are committed to creating value with and for a wide range of stakeholders for example, employees, investors, partners, and communities.
To meet the continually evolving needs of all their stakeholders, agile organizations design distributed, flexible approaches to creating value, frequently integrating external partners directly into the value creation system. Examples emerge across many industries, including: These modular, innovative business models enable both stability and unprecedented variety and customization. This North Star serves as a reference when customers choose where to buy, employees decide where to work, and partners decide where to engage.
Companies like Amazon, Gore, Patagonia, and Virgin put stakeholder focus at the heart of their North Star and, in turn, at the heart of the way they create value. Agile organizations that combine a deeply embedded North Star with a flexible, distributed approach to value creation can rapidly sense and seize opportunities.
People across the organization individually and proactively watch for changes in customer preferences and the external environment and act upon them. They seek stakeholder feedback and input in a range of ways for example, product reviews, crowd sourcing, and hackathons.
They use tools like customer journey maps to identify new opportunities to serve customers better, and gather customer insights through both formal and informal mechanisms for example, online forums, in-person events, and start-up incubators that help shape, pilot, launch, and iterate on new initiatives and business models. These companies can also allocate resources flexibly and swiftly to where they are needed most.
They regularly evaluate the progress of initiatives and decide whether to ramp them up or shut them down, using standardized, fast resource-allocation processes to shift people, technology, and capital rapidly between initiatives, out of slowing businesses, and into areas of growth. These processes resemble venture capitalist models that use clear metrics to allocate resources to initiatives for specified periods and are subject to regular review.
Senior leaders of agile organizations play an integrating role across these distributed systems, bringing coherence and providing clear, actionable, strategic guidance around priorities and the outcomes expected at the system and team levels. They also ensure everyone is focused on delivering tangible value to customers and all other stakeholders by providing frequent feedback and coaching that enables people to work autonomously toward team outcomes.
- Disruptive trends challenging the old paradigm.
- A Ciência por trás do Segredo (Portuguese Edition);
- Salve Papa! (German Edition).
- Knight of the Black Rose: Terror of Lord Soth, Book I (Ravenloft The Covenant).
- ;
There will be chaos. Agile organizations maintain a stable top-level structure, but replace much of the remaining traditional hierarchy with a flexible, scalable network of teams. Networks are a natural way to organize efforts because they balance individual freedom with collective coordination. To build agile organizations, leaders need to understand human networks business and social , how to design and build them, how to collaborate across them, and how to nurture and sustain them.
An agile organization comprises a dense network of empowered teams that operate with high standards of alignment, accountability, expertise, transparency, and collaboration. The company must also have a stable ecosystem in place to ensure that these teams are able to operate effectively. Like the cells in an organism, the basic building blocks of agile organizations are small fit-for-purpose performance cells. Compared with machine models, these performance cells typically have greater autonomy and accountability, are more multidisciplinary, are more quickly assembled and dissolved , and are more clearly focused on specific value-creating activities and performance outcomes.
They can be comprised of groups of individuals working on a shared task i. Identifying what type of performance cells to create is like building with Lego blocks. The various types Exhibit 3 can be combined to create multiple tailored approaches. The best way to minimize risk and succeed is to embrace uncertainty and be the quickest and most productive in trying new things.
Agile organizations work in rapid cycles of thinking and doing that are closely aligned to their process of creativity and accomplishment. This rapid-cycle way of working can affect every level.