Across the globe, there is a phenomenon called `Agile Transformation`. Why is this important for you or your organization?
First, let`s look at some excerpts of recent articles answering their `Why`s.
Volvo: We needed to be able to develop things that could be utilized for many new models. We saw that we needed to organize ourselves into what we called “product streams.”
https://www.forbes.com/sites/stevedenning/2020/01/26/how-volvo-embraces-agile-at-scale/#3c812ba64cf0
Dutch Police: If you are the police, you need to play catch-up all the time…you have to learn all sorts of new skills.
https://www.itweb.co.za/content/kLgB1MeJZ1Qq59N4
People’s Choice Credit Union: The credit union wanted to “break down silos” and “create very clear lines of ownership and accountability” to keep internal teams focused on the end goals of the transformation: creating member-centric and ultimately omnichannel experiences.
True Digital Group: We want to operate like a startup, but we already have more than a thousand employees. How do you maintain the speed and agility of a startup as a big organization? We have to be agile at scale, which very few companies in Thailand are doing.
https://www.bangkokpost.com/business/1852589/thinking-big-really-big
Does that sound familiar to your organization? Not yet?
Traditionally we have learned to build scalable organizations generating huge amounts of cash (Revenue) and large employee workforce in comparison to a century ago. Most businesses today are moving away from physical asset-rich companies towards human or IP rich assets. During the onset of scale, we also learned to apply process efficiencies to bring productivity gains and it was very much essential to do as your businesses could only produce all sub-products required for the final product.
The advent of large micro / small & medium enterprises which can deliver some or many of the sub-products / product required for your final product is now the challengers for the scaled organization. These enterprises have also demonstrated that there are different ways to achieve the result at a lower cost, faster turnaround time and also bring innovation.
Martec`s Law: Gaps between organizational change vs technological advancement is requiring continuous resetting of the organization as depicted below.
But Why Agile?
There are several questions you should ask about your company.
1. Is your product development lifecycle greater than the average cycle in your industry?
2. Is your company`s YoY revenue at stagnation?
3. Does your customer complain about the cost, speed, and rigid process?
4. Do you have higher costs compared to your industry peers?
5. Is your competition ahead of you and you find it difficult to beat them?
6. Is your organization built like several kingdoms?
If these questions relate to you, then it is highly likely your company is heading towards extinction from being a top player in your industry.
Are there more reasons? then please do not hesitate to share.