Agile organization - how to achieve change

Facing a dynamic and constantly changing market environment is a major challenge for companies. In this context, we often read about the need for an agile organization that can adapt quickly to new conditions. This raises the question of what an agile organization is, why it is a success factor and how the transformation to an agile organization can succeed.

Agile organization - definition

In order to classify the term agile organization, it is important to understand the general meaning of agility. Agility is a principle that originates from software development. Agility describes the ability to react quickly and flexibly to changing conditions. If this ability is applied to an organization, then it is characterized by the ability to react quickly to changes in the market.

These factors characterize an agile organization

To achieve this, agile organizations rely on self-organization, flexibility and customer orientation. Rigid hierarchies and strictly defined processes are broken down and replaced by flat structures with iterative working methods. Above all, the focus is on the personal responsibility of individuals and teams. In the following, we take a closer look at the significance of the individual factors.

The agile mindset

It all starts with an inner attitude. In agile organizations, all team members share a common understanding of the company's vision. The right mindset is crucial to enable personal responsibility. If everyone understands their own purpose in the company, they can contribute to achieving the company's goals.

Interdisciplinary teams

A team consists of team members from different areas. This ensures that processes can be handled holistically by one team. The team members work closely together to develop solutions for customers quickly and efficiently.

Breaking down rigid hierarchies

Flat structures and thus the dissolution of strict hierarchies is a key factor on the way to an agile organization. Long decision-making paths due to strictly defined competencies hinder the development of a company. The same applies to rigid reporting lines.

The advantages of an agile organization

The agile form of organization has cross-divisional advantages. These offer extensive opportunities and possibilities for organizations.

Flexibility and adaptability

The past few years have shown that organizations are constantly confronted with new circumstances. Current and past crises have a major impact on the way we live and work. Companies that are able to adapt quickly to new circumstances have a greater chance of success in a dynamic environment.

Efficiency and productivity

Flat structures and a high level of personal responsibility eliminate long coordination and decision-making processes. An agile organization is more efficient and productive, as less time is spent on internal coordination. This newly gained freedom can be used to optimize customer focus or to work on individual development. Agile organizations are characterized, for example, by the fact that employees do not rush from one meeting to another, but can carry out longer phases of work undisturbed.

Minimization of risks

Agile organizations require a way of working that makes it possible to test innovations in a small environment. This often involves working with prototypes and obtaining feedback from employees, users and other market participants at an early stage. This way of working means that extensive information is available even before major costs are incurred.

Better cooperation

In agile organizations, all team members benefit from working together as equals. Feedback is given much more honestly in flat structures. Ultimately, this also leads to the creation of a pleasant corporate culture.

Customer centricity

Customers also benefit from an agile organizational structure. Agile teams are used to putting customers at the center of everything they do. As part of their actions, they always ask themselves what customers get out of a particular measure. This way of thinking means that agile organizations often achieve higher customer satisfaction and focus on relevant parts of value creation.

4 steps to more agility

The possibilities and opportunities of agile organizational structures are clear. Nevertheless, many companies face a major challenge in the transition to an agile organization.

Step 1: Analyze the initial situation

The first step is to analyze the initial situation. Organizations or their managers need to know exactly what the current situation in the company is. These questions serve as guidelines:

• What processes exist in the company?
• What structures are anchored in the organization?
• What hierarchies are there?
• What is the corporate culture in the organization?

This step forms the basis for the change process towards an agile organization. Decision-makers and managers should already be aware here that many structures will be broken up in the transition to an agile organization.

Step 2: Define target image

Although agile organizations all follow similar factors, the design and application of these factors varies greatly from company to company. For this reason, it is important to derive a target image. Questions can also help here:

• What is the vision and what is the organization's purpose?
• Which teams should take on which tasks?
• How do we ensure that all team members can work independently?
• Which roles or areas of responsibility should change?

Answering these questions is not that easy. For this reason, as many perspectives as possible should be included. Agile methods, such as holding workshops, can help in the development of such a target image.

Step 3: Derive and implement measures

There is certainly still a discrepancy between the current situation and the target picture that has been drawn up. In order to fill this gap, suitable measures must now be derived in the third step. Such measures include, for example

• Introduction of agile methods such as Kanban: tasks are structured on a Kanban board and processed one after the other. This creates continuity and increased transparency.
• Promote continuous learning: In an agile organization, the continuous learning of team members plays an important role. In addition, an agile organization also places new demands on team members, making it necessary to promote new skills.
• The development of agile managers: Managers in agile organizations are not responsible for control. Instead, they work to enable their employees to carry out their work independently.

Step 4: Accompanying change management

The change from a traditional to an agile organization requires courage and takes time. To ensure that this change does not lead to excessive demands, it should be accompanied by targeted and professional change management.

Conclusion: Agile organizations are more productive

The more dynamic the market environment, the more agility is required of companies. But it is not only external pressure that is leading more and more organizations to focus on agility. Increasing productivity is also leading to growing popularity. It therefore makes sense for companies to make use of agile methods in order to gain a competitive edge.

The motivation, willingness to perform and loyalty of managers and employees play a key role in determining whether the path to an agile organization can be successfully mastered. Successful organizations consistently use employee surveys and 360 management feedback as a dialogue tool, which has a positive effect on commitment and the company's success. We would also be happy to advise you personally on 044 786 32 52.