Enterprise Agility - Need to treat it as a non-convex problem
2022 10 minutes read
Context:
Organizations that embarked on Agile transformation journey have had mixed results. Majority of them have been working below their potential. The recent surveys captured some key reasons why transformation has been challenging and those are valid. Our findings go deeper to understand the problems.
Non-Convex Optimization:
A non-convex optimization problem is any problem where it may have multiple feasible regions and multiple locally optimal points within each region.
Build it up before expecting a breakthrough:
Organizations have structural rigidity and hierarchical bureaucracy. And organizations need to operate in a constrained but disciplined environment to remain focused. Transformations fail when we skip the build-up process and move directly to a break-through framework. We need to realize that organizational agility is a non-convex optimization problem. It simply means an approach with a large scale framework cannot guarantee success. The state of agile and ways of doing things will vary with the functions of the organization. Also, large scale frameworks come with their own structural rigidity and information hierarchies. Hence, these so-called 'break through' implementations introduce more complexities and require continuous restructuring efforts.
On the contrary, agile transformations can follow a build-up pattern. It can achieve breakthroughs by the accumulation of a series of experimental and learning steps. Restructure and for customer focused groups and functions with their own objectives. Also, a group has its own inherent culture and identity. A transformation effort that focuses on optimizing smaller groups using basic agile principles and simple frameworks is more effective in producing desired results. Each empowered group discovers its own ways of working, and demands more autonomy. The groups collaborate and share resources to succeed. Locally optimized and self-sufficient groups then begin to exhibit a cohesive structure to scale. The build-up process is organic and sustainable.
Initiative focused teams maximising outcomes.
In a nutshell, an organization can have different agile frameworks and practices in groups as long as they are tied by the core organizational principles.
[Note - Don't confuse the break-through and the build-up patterns with Top-down or bottom-up approaches. Transformation requires dedicated leadership support and disciplined team participation]
Align to core Organization principles:
Transformation needs to be articulated with clarity as it is challenging, and an organization needs to confront the hard facts. The clarity should be at the organization, the group, and the people levels. Framing a clear "WHY" statement defining a mechanism to measure progress by facts should be the starting point. A goal flow model helps to bring transparency. A good goal flow model must have the following - [1] Articulation of goals at every level ; [2] Connected goals and tangible measures; [3] Well-connected goals. This can help in capital and resource allocation, successful initiatives and people retention. With out a goal flow model, a transformational death spiral can happen.
Goal Flow Diagram
Defining a common denominator to promote Agile Thinking
Define a common denominator:
A transformation needs more than a maturity model to measure progress. It requires consideration of program economics and business/financial rationale. Agile transformation is a means to drive results. The results need to speak for success. Associating an economic parameter with a common denominator across all levels properly justifies the effectiveness of a transformation. Use 'Trend lines' to see the progress over time to bring transparency.Promoting 'Agile Thinking' around the goals helps to figure out the right way of doing things.
It is important to rely on experimentation and possibility thinking. This helps build a culture around the idea of freedom, ownership and discipline, and it's a must for an agile transformation.