Strategic Agility
“Agile players are committed to learning from
experience. After-Action-Reviews (AARs) are
the norm. What did we say we would do? What
actually happened? What went right, what went
wrong? Why? What would we do differently next
time? AARs help to refine a strategic model
through experience and continuously adjust
to a changing environment” John Wells.
The challenge is to create a context in the firm that Agile architecture
encourages everyone to embrace change rather than In addition to being asset-lite, firms must strive for an
resist it, to create more agile minds. agile architecture that is easy to change. Architecture
encompasses many elements of the firm including:
bw» what are the characteristics of an agile
The organisation chart which maps out roles and
organisation?
responsibilities identifying “who does what”.
Business processes which describe “how” they do it.
Jw» If you want to be agile, you can never be satisfied
with your performance. Agile firms are paranoid about
The human asset development systems for recruiting
their competition, quick to copy good ideas, and equally
and training people.
quick to learn from their mistakes. They strive for ways
The measurement and reward systems that identify
to increase their relative revenues per customer or cut
how well things are going and provide incentives for
relative costs to increase their competitive advantage.
people to do what is required.
The information and communication systems (which tie
But improving the current model is not good enough. all the other elements together).
Agile firms also allow themselves to think the unthinkable,
learning from small firms, seeking out new models and
bw» how should a firm go about changing its
testing them. They undertake research in how other
architecture to make it more agile?
firms do things in other regions, other countries, other
Jw» Conventional top-down approaches argue for
businesses. They have processes that encourage the
“mapping the current system, mapping the desired
generation of new ideas, and rewards that motivate
system, identifying the key differences, designing projects
people to innovate.
to close the gaps, prioritising the projects, and executing”.
While this is all very logical, hell would freeze over for
bw» what drives the need for agile structure?
the typical large organisation before the process was
complete. Ideally, firms need an intelligent, self-adapting
Jw» If the strategy is agile and responsive, the structure
system that responds to strategic needs rather than have
must be equally agile in order to change as the strategy
to intervene every time a strategic change is required.
changes. Often firms can see the need for change but
they cannot get their organisations to respond in a timely
bw» so how do companies achieve a self-
fashion.
adapting system?
Agile firms make a concerted effort to stay ‘asset-lite’, Jw» Agile firms reward strategic success at all levels
even at the expense of short term profitability. This in the organisation. This drives employees to adapt their
entails making costs as variable as possible, outsourcing behaviour to the changing environment, thereby modifying
activities, hiring people that embrace change and tapping the informal architecture to stay ahead of the game (even
into outside networks of knowledge. if this is in conflict with the formal architecture).
Perspectives on the future | 23
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