Agility: the key to transformation

How understanding the role of people, culture and agility can transform your organisation

In an age of disruption with a rapid-fire of new digital technologies and business models, “innovate or die” is a good mantra for survival.

“Businesses in the past capitalised on stability and mass production and ran their workforces on a ‘command and control’ philosophy,” says Mark Basham, chief executive of AXELOS, a global best practice firm. “The world doesn’t operate like this anymore,” he says. “If you don’t adapt to the changing circumstances in your marketplace you will be disrupted, and this could have disastrous consequences.”

But transformation programs, often digital-led, are not easy. The majority of businesses that attempt transformations fail, with the chance of success less than 30 per cent, according to McKinsey and Co.

Constellation Research, a Silicon Valley-based advisory firm, found that the top two impediments to such significant organisational change are a lack of talent for transformation initiatives and internal resistance to change.

“For digital transformation to be effectively embedded, it is not enough to simply rely on new technology,” Basham says. “To be genuinely impactful, it must go hand-in-hand with a cultural transformation.”

A key ingredient for successful transformation is agility; specifically, the process of delivering value early and frequently. The top 10 per cent of businesses by financial performance are 30 per cent more likely to display agile characteristics, UK-based PA Consulting states.

What does being agile in a business context really mean? Agile (lower case ‘a’) is generally described as a mindset and style of working that is characterised by responsiveness, flexibility and adaptability., Agile (upper case ‘A’) refers to a collection of frameworks and techniques that deliver work through an incremental and iterative approach, framed around collaboration and prioritisation. Originating in software development, Agile techniques are becoming more and more commonplace in businesses today; particularly across product development, project management and more recently marketing.

“The new big household names such as Uber, Amazon and Netflix are highly agile,” Basham says. “They are disrupting their industries and taking out all other organisations in their path. Do you want to be the next Blockbuster, or do you want to be the next Netflix?”

So how do organisations become more agile? Basham suggests that while you can go down the traditional consultancy route, the problem is you are approaching the issue from top-down.

“To have an impactful transformation agenda you need to involve your staff,” he says. “Otherwise the changes made won’t actually be embedded on the ‘front line’. A better approach might be empowering your staff with some simple tools, techniques and processes to enable them to deliver faster, innovate more and feel part of the change happening in the organisation.”

The C-suite should be feeling the heat when it comes to digital transformation, according to Basham. “They are ultimately responsible for spearheading the direction of the transformation program and ensuring that the business thrives in a competitive and disruptive environment. To do this, they need to have a current and constantly evolving business model and working environment that moves as quickly as, in fact, quicker, than their industry is moving. But they cannot achieve this alone. They need the rest of the organisation to follow and enact upon their direction.

This is why AXELOS has developed AgileSHIFT, an agile framework comprised of guidance, training and professional certification designed for the whole organisation. It aims to drive successful transformation by creating a culture of enterprise agility. In addition, it can be used to empower every person in an organisation with the tools and knowledge to work in an agile way.

“AgileSHIFT introduces the concept of the ‘delta’, which is the gap between your organisation’s current capabilities and where you need to be,” Basham says. “Disruptors exploit this by trying to fill the gap with their own products or services. To survive commercially, organisations need to close that gap. AgileSHIFT views this as the shared responsibility and achievement of every person and every team in your organisation.”

AgileSHIFT is unique because it targets the whole organisation, Basham says. “There are plenty of other agile certifications on the market, in fact, one of the most well-known being our own PRINCE2 Agile®, but these are targeted specifically at delivery, IT, or product teams. AgileSHIFT addresses the cultural problem that is blocking organisations from successfully transforming.”

Senior figures tasked with leading digital transformations are losing sleep thinking about their responsibility and ability to do so successfully. The key, Basham says, is understanding the role of people, culture and agility. In the words of advisory firm Forrester, “digital transformation is not just about technology; it is about reimagining your company”, introducing an agile culture is a way to do that.

For more information, please visit www.AXELOS.com/agileshift-australia.

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