Essential Capabilities of an Organization

Resilient is the new Efficient – Companies need new Capabilities

Success of an organization in today’s complex environment is determined by it’s ability to adapt. While each organization needs these elements, the relative priority depends on many factors.

Efficiency: operational Excellence

This aspect is tightly connected to cost effectiveness. A modern approach is typically based on Lean principles. It concentrates on

  • Focus on value – the first priority is pursuing a global optimum
  • Organize a continuous flow – deliver in small batches and in short cycles
  • Optimize, reduce waste and strive for perfection

Innovation: discover, disrupt, deliver

Agile methods provide a rich set of practices to shorten the feedback cycle. Scrum provides a proven framework for teams to achieve consistent, effective delivery and to develop as a team by stabilizing the development process through the Sprint cadence. Kanban tries to achieve similar effects through focusing on visualization and the work-in-progress (WIP) limit.

Business agility may comprise other practices to shorten the feedback cycle, like Design Thinking or Lean Startup techniques.

Amplify Learning

Both aspects need a continuous effort on learning and a systemic view. This must be supported by a culture of trust and needs appropriate leadership.

Agile Evolution

The sweet spot is in the combination of these aspects. An organization needs

  • A systemic view of the Whole, the combination of the three success factors.
  • A view of change as a continuous process. Changes do not come in distinct phases, they occur constantly, overlap and influence each other.
  • A transparent and aligned idea of „better“, i.e. a direction of changes. In a complex world, this involves a vision, experiments, empowered people, incremental and disruptive improvements.
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