I attended a session entitled “Are You Agile Enough to Succeed at Digital Transformation?” at the Building Business Capability (BBC) conference (the official conference of the IIBA®, presented by Art Drake. Having been involved with transformations as a consultant, I wanted to see if the speaker’s thoughts lined up with my reality.
Change is Constant
Art began by recapping the radical changes that have impacted us worldwide over the last two years including the global COVID-19 pandemic, The Great Resignation, etc. It’s no secret that our world has been in a state of turmoil for some time. So what does that mean?
Disruption is happening Everywhere
Changes lead to innovative new ideas and solutions. Companies that remain stuck in the past (aka the old way of working) will quickly be displaced by other, more agile upstart competitors. He cited many examples, including one I was involved with at the beginning (Netflix). It doesn’t matter what the industry is – if you can’t respond quickly to market changes, you might soon find yourself out of business.
Transformation Drivers versus Realities
So what drives transformation, and what are the realities of these efforts?
| Drivers | Reality |
| 70% – Operational Efficiency, Customer Experience | 93% – Support Remote Workforce, 63% Increased Customer Demand |
| 64% – Adapt to Tech Disruption, 20% Unable to Adapt | 40% – Lack of Technology Skills, Labor Arbitrage |
| 60% – Digital Transformational Strategy | 72% – Technology Savvy Helps Success, 70% – Failure Rate |
Agile Business Principles
Art referenced the original Agile Manifesto but stated that there needs to be a complementary Business version (since the original one was based on software development). He proposed the following principles:
- Speed over Optimizations
- Flexibility over Planning
- Empowerment over Hierarchy
- Learning over Failing
- Portability over Position
Now, let’s look at these principles in a bit more detail:
Speed over Optimizations
The days of gathering all the requirements up front are, for the most part, long gone. Companies must be willing and able to act quickly, and take risks to learn. They must also shorten the time from decision to action, albeit within guardrails. Lastly, they must balance between agile and operational excellence – just because you want to innovate doesn’t mean you don’t also have to keep the lights on.
Flexibility over Planning
Back in the day, all the planning was done upfront and was rigid. Now, planning must be done iteratively and frequently. While strategy is important, action is more important. Rather than having fully baked plans, the focus should be on roadmaps and key milestones, which are flexible.
Empowerment over Hierarchy
The time of the hierarchical organizational structure has also passed. Flatter, more matrixed organizations focus on teams that thrive on challenge, are empowered to make decisions at the local level, and are motivated and encouraged.
Learning over Failing
Teams are allowed to fail in a safe way, learning and adjusting quickly to course correct. Rather than punishing failures, companies should provide incentives for trying new things; teams should never be threatened with negative consequences if they fail at something. Organizations should create communities of practice so that learnings can be shared and added to the organizational knowledge base.
Portability over Position
Job titles are also somewhat antiquated and limiting. Companies should instead focus on the inventory of skills they have available to tap, and match talent with opportunities they are interested in. Individuals must own their own careers and drive their own development.
Final Thoughts
I embrace the ideas presented by Art in this session. I agree that organizations as a whole need to be more agile – not just the IT department. This is a difficult mindset shift for many, but having these guiding principles is a good place to start when you embark upon a digital transformation.
What do you think? Is your organization agile? If you have any stories to share about this topic, I would love to hear about them!