So you want to be an Agile Organisation? Some things to keep in mind…

So you want to be Agile.  The common criteria I have found to define an ‘Agile’ organisation are: –

  1. Fast moving, flexible, quick and responsive to changes, challenges, events and opportunities from anywhere, anytime.
  2. Built on policies and processes that facilitate speed and change, it aims to achieve continuous competitive advantage in serving its customers.
  3. Agile enterprises use diffused authority and flat, non hierarchical organizational structure with no single point of control.
  4. Short loop information flows among different departments, and develop close, trust-based relationships with their customers and suppliers.
  5. The connected and aware entrepreneurial organisation, with leaders as catalysts.

So, what to do to achieve these five points?  Firstly, all five points are connected; none stand alone. Lets unpack these five points;

1. Fast moving, flexible, quick and responsive to changes, challenges, events and opportunities from anywhere, anytimeIn my last blog I mentioned how social genetics or memes evolve with society  and organisational design reflect both dominant and emergent memes.  Pathfinders/early adopters are expressions of the exciting and emergent value systems. That is why their value propositions are so powerful and there is a mad rush to emulate the few that are successful. Your ability to become Agile depends on your dominant meme system (culture).

Point 1 is about quick and effective exercise of judgment – i.e. decision making. And it is not short term ONLY; it needs to be long term as well (future focused work is a function of organisation complexity).  A recent article in the HBR illustrates how important long term thinking is and how it has worked well for companies taking the long view.

An ‘agile’ organisation must be both short and long term to be sustainable and as well as resilient. The necessary minimal conditions for this are;

  • an effective structure reflecting the company’s complexity and one that can delivers its intent;
  • authorised and flexible role relationships that allow decisions making to be done quickly and effectively,  at the right time and place;
  • A flexible structure with home-based roles accountable for ensuring different unique value adds – (ie accountable for long and short term).
  • Leaders with the cognitive capability and skilled knowledge to handle the complexity of differing types of decision making in all teams, functional areas.

2. Built on policies and processes that facilitate speed and change, it aims to achieve continuous competitive advantage in serving its customers. Organisation intent is delivered through systems of work which are both customer centric and whole of systems thinking.  This is where the speed and innovation of digital revolution has driven the need for agility.

Systems of Work (policies and processes) in the Value Added Domain of work (known customers, known products, known services, known markets) need to be so much faster, seamless and integrated – to delight and anticipate the customer.  Leading through the rear-view mirror in short time spans is to ensure captivity, opportunities and changing circumstances.  Many companies are locked into battle with adding new value through customer rear-view data analytics, aimed at short term gains (1-3 years).

However true agility requires a future focused customer windscreen as wellElon Musk commented that the customer (and governments) have no idea what the future is bringing and looking to the past is no guide in our fast moving, disruptive world.

Thus Strategic Intent at the longer, more complex work themes level requires different speed systems of work; mutiple ecosystems awareness; as well as the slower, deeper building of organisational DNA.  Thus a two speed system of policies and processes, where the shorter time spans are for decision making to adapt, change, innovate; while the longer time spans, stablise, integrate, learn and invest.

3. Agile enterprises use diffused authority and flat, non hierarchical organizational structure with no single point of control.

This is where I differ from the definition. I know of no long term successful company (survived and thrived for 15 years+) where there are no points of control.  Diffused authority in principle allows for effective, rapid and relevant decision making.  No accountability is a recipe for an organisational stuff up and failure.  Sorry, unpalatable I know, but there is it.  The naked truth.

If you do this, history will eat you and history has a magnificently illustrated cookery book.

Nature uses hierarchy for creating unique value add; no part is better then another, each part is accountable for different stuff.  We talk about hierarchy not as power based or centralised command and control of the red, blue or orange memes, but as yellow (or teal); themes of work, each with unique value adding based on increasing uncertainty and ambiguity, hence complexity.

Here we integrate structure with rear view mirror and the future focused windscreen. The ANZ CEO did not even know how many levels there were in his company, but ANZ ‘levels’ seem to be traditional hierarchy,  not complexity base work themes.

4. Short loop information flows among different departments, and develop close, trust-based relationships with their customers and suppliers.

Yes, yes, yes!!!!  Unfortunately so often a wish list. Organisations have a Bank of Trust in which deposits and withdrawals are made.  Sadly many operate in overdraft. Trust comes from building strong trusting two way relationships over time.  It happens when point 1 to 3 are in place and emerges from saying what you plan on doing and doing what you say, and by leading in a consistent, collaborative way.  Trust has a corollary, it needs to be felt fair.

An agile organisation is not the sum of a specific technique or team based approach; it is the entire way we design, operate and lead the enterprise. It is a culture of how we do things here.

5. The connected and aware entrepreneurial organisation – Organisations go through cycles of growth, equilibrium and growth, as their complexity increases. Failure or death exist at any-point, especially at points of transition and emergence. Different memes may become dominant drivers.

Agile is also a term that can apply to an organisation’s ability to move rapidly into and remain in Prime;  I refer readers to Izchak Adizes pioneering work in regard to corporate life cycles

Many references are made to hiring ‘smart people’ but smart is left vague, up to general interpretation. Each phase requires different leadership skills;  so I have avoided ‘the list’ and rather say characteristics are adaptability, skilled managerial leadership and ability to work at the theme of complexity they are leading.

Therefore a key operating principle is one of individual cognitive capability being matched to work challenge – and consistent studies show people grow or shrink work according to their ability to exercise judgement (when they do not know and cannot know what to do).  Success comes from stocking high potential individuals into the organisation envelopes of change, with a clear mandate to lead major initiatives, turn things around or head up successful startups. Fact.

So in conclusion – An Agile Organisation is many integrated things, with no silver bullets.  It is the Yellow Meme, doing what works and doing what is requisite…

References

Org Design Evolution – (Hierarchy, Teal, Agile, Sociocracy, Matrix and Requisite) shaped by Memes (culture)

As my company works in the field of organisation design and navigate through the milieu of Agile, Lean, Matrix, Sociocracy and Requisite, I thought a blog on the evolution of structure might be a good idea for providing a balanced view on this topic.

Before starting an evolutionary journey I just want to say organising to get stuff done is a very old human past time.  Structures have evolved over time and mirror our culture.  Culture itself is shaped by human memes, the social equivalent of genes.  The first person to understand this was Dr Clare Graves and his ideas were picked up Dr Don Beck who clearly enunciated in the work Spiral Dynamics. Ken Wilbur later also climbed onto this band wagon.

Culture evolves over time and memes are packages of cultural information (containing templates of fashion, social etiquette, art, design, laws, work, customs, beliefs etc) – our social DNA. We as individuals all carry our social meme package. We can shift between our meme package, but normally have a dominant operating set of values. Not unexpectedly, this has a major impact in business.

The ideas of memes shaping organisational design have reemerged thanks to  Laloux’s book and the so called ‘Teal’ Organisations. While sadly a gross over simplification of the actual evolution of design, it is a step towards understanding how memes shape structure. So here is our journey (thanks Don)

Millions of year to present…

1 – Band – beige. Maslow’s base of his pyramid – survival – food, water, shelter – Maslow and Graves were contemporaries who argued bitterly about what actualisation meant.  – Organisation here was protection and duties assigned by stronger members to ensure food, safety, warmth, procreation. Hunter-gathering – band moved with seasons and food availability.Technology evolved slowly and bands were primary form of structure to get work done and survive.

Transition to next value system took place over millions of years, as we evolved culturally and technologically, but arrived with domestication of plants and animals and first permanent settlements.

2 – Tribe – Purple.  oldest of values systems – organising for safety. Circular around clan, tribe.  Decision making guided by elders, shaman or chief.  Seen as distinct group or tribe – best to deal with threats and focus on survival of tribe / group. Roles determined by age, gender, kinship and power.  Ritual important for coherence and protection. This meme is still very active and has evolved into sport. nationalism etc .

3. Empire – Red.  power gods – leader is all powerful, organised on favour, fear, domination.  emergence of strong egos, self more powerful then group, confront dangers and conquers, struggles over niches, exploitative systems.  Big boss rules through other bosses; communication downwards only, relationships governed by ‘how can I gain?” Modern glimpse – mafia, motorcycles gangs, warlords, despots/dictators.

18th Century to present…. Transition to next value system took place with arrival of industrialsation;   People needed in cities and development rapid as we evolved culturally and technologically. Huge conflict as memes battle for dominance – eg US Civil War, Russian Revolution, Anglo – Boer War, China.  Agricultural Waves vs Industrial Ages.

4.  Authority Structure – Blue, order and progress.  First memes of the Industrial Age. Arrival of the hierarchy – ability to organise on huge scale and assemble resources for mass  production.  Hierarchy brings scalability  – communication downwards and across, people in role – occupy rightful place, wait turn and obey orders.  Person with appropriate positional power makes decisions.  Efficiency and production, but rigid rules for structures, roles and rank.

Figure I: The older but still very active memes and their structures for getting stuff done

 

4. Strategic Enterprise – Orange – Materialistic/Achiever – Strive Drive.  Bureaucratic and status / power  orientated; delegated authorities, communication up, down and across, but evolves… drives results and outcomes, highly competitive. Seeks best solutions, but resource intensive and wasteful. Hierarchy evolves into adaptable and flexible structures.  Status orientated – allows for quick upward mobility and creativity. Durable and powerful Org design structure, gains global popularity for getting stuff done.

1960’s to Present…

5. Social Networks – Green – Sociocentric –  Human Bond – this meme burst onto the stage with the failure/successes  and excesses of consumerism and materialism (Orange meme).  Excesses of hierarchy gives rise to experimentation with this new egalitarian meme which values community, sharing, inner harmony, the team, well-being, balance and collaboration.  New  org models, concerned with equals working for mutual benefit; deny concerns with status and benefits; matrix, sociocracy, holocracy, self managed teams;  ‘the people’.   Leadership and hierarchy not in favour;  group consensus, flat structure and the team are in.

1980’s to Present…

  (TEAL of Laloux’s organisation sits between Green and Yellow.)

6.  Systemic Flow – Yellow – integrative – Flex Flow – this new meme arises due to Green’s inability to resolve and deal with complexity.  Org seen through systems lenses.  Structure as needed; according to task at hand;  Project based; changing functional leadership with decision making.  Connected, fluid, adaptable, intensely pragmatic, technological savvy, does what works – including partnerships, alliances;  walk away from what does not.  Agile and Requisite evolve, now based on natural organic hierarchy of complexity. Shared values sought with ecosystems.

7.  Holistic Organism – searches for holistic solutions (ecosystem) and guiding principles, the order underneath apparent chaos. blends consensus, competency in global perspective, focus information for insights and greater good.  Able to move quickly, each entity is microcosm of larger system.  Shared values require no harm, zero waste, circular, share.  Social businesses with global thinking and collective actions. Structure as required by the nature of things…

Figure 2 : Active and Emergent Memes and their structures for getting stuff done…

 

Lessons

  1. All org designs have aspects that work; some are robust, principles understood and do work; spot the evolutionary growth of each and don’t discard the good stuff.
  2. Ascertain your culture by looking at what memes are dominant (easy, check the CEO and executive; that’s the windsock to your structure).
  3. Digital transformation depends on yellow, orange and green memes, but mostly yellow.
  4. Oh and of course; people choose products and services according to their dominant memes, but how many marketers know this instinctively? Sort your products and marketing to meme segments