Agile and adaptive capacity in organisations – Learning Need #1

What managers must learn in order to nurture agile and adaptive capacity in their organisations – Learning Need #1

What challenge are we facing?

At present organisations are struggling as much with their external VUCA (volatile – uncertain – complex – ambiguous) environment as they are with the pressing internal need to re-invent themselves. More agile processes are being called for. The difficulty is increased by the fact that organisational re-design has to be carried out in such a way as to ensure the uninterrupted, optimal delivery of business operations. Managers surmise that successful start-ups, which are eating away at their profits, hold the answer. Many learning journeys are being undertaken to Silicon Valley and other innovation hot spots in order to understand what these start-ups are doing differently to make them faster and better able to deliver customer value.

Let´s all be agile! – Agile as the new lean?

Agile is the (not-so-new) catchphrase: agile teams are supposed to steer themselves and deliver phenomenal products. Agile organisations are supposed to uncover blue ocean products and services. Agile leaders need to be inspiring everyone so that the workforce is highly engaged and goes that extra mile in full self-organized responsibility. Yet the question I hear the most from both leaders and workers alike is: What does agile mean? I usually ask back: What does it mean for you?, believing that each organization needs to identify its own version of what is the most fitting degree and interpretation of this broad and multifaceted term.

Agile organizational design as an answer?

The focus of everyone’s attention in finding the answer seems to be on organisational design: the structures and processes needed in order to gain maximum flexibility while still keeping chaos at bay. Managers are quoting from Frederick Laloux’s “Reinventing Organizations”, struggling to implement Robertson’s “Holacracy” or John Kotter’s “dual organisation”. Some try to copy Spotify’s tribes, chapters and guilds, others try to emulate Burtzoorg’s, Zappos or alternative well-known organisational models that have caught the headlines of business magazines.

However, in management’s quest for the “right” agile organisational design many important pieces of the puzzle are missing. The concentration on processes and structures is understandable, for this is what can be decided upon and controlled. In addition, new managers who are hired in the hope of effecting the required change, can also be controlled to a certain degree. Very often all this ends in frustration and in a generalized call for a new culture and a different mindset where the workforce takes over much more responsility and is more engaged. The opposite is usually the case. Why?

What is missing?

Let us consider what pieces of the organisation puzzle might be missing and what are the most pressing learning needs for managers in order to ensure that all the building blocks for rejuvenating and adapting their businesses are in place.

Learning Need #1:

What very few organisations realize is that they collectively need to put their thinking hats on in order to come up with their own unique organisational design that fits their particular situation and meets their need for agility. In order to do this EVERYONE – and I mean all organisational members from the CEO to the cleaning staff – needs to be engaged in a communication process about which organisational design is best suited to their customers and their own needs. That does not mean that every proposal will and can be implemented, but every voice should be heard in order to harness the wisdom of the many.

This of course necessitates a dramatic mindshift, for organisational design has typically been the exclusive prerogative of the top echelons of management. Everyone usually has an opinion about what makes sense and what does not in their area of expertise. But organisations are not used to reflect on their own design, which thus becomes a de facto constitution, at a broad level. Top managers must learn to share the authority to design agile organisations, thus gaining the workers’ sense of responsibility for the future of the organisation.

=> Learning need #1: Find a language and a format for broad and continued organisational dialogue on the topic of agile organisational design.

Read more about this topic and about learning need #2 on this site next week!