THE DIFFERENCE BETWEEN OPERATIONAL AND STRATEGIC AGILITY – THE PROMISE OF aGILE
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Few organisations have been able to achieve the desired outcome of business agility (Strategic agility – creating new markets with new products that reach new customers, i.e. market-creating innovation). If the Agile movement is only about creating great workplaces for software developers (also important!) but doesn’t generate better business outcomes, its life expectancy won’t be long. The talk will focus on the key principles that can be applied to an organisation throughout the value chain (both IT and Business) and also a view of what an Agile operating model will look like, in order to provide organisations with a strategic advantage.
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THE DIFFERENCE BETWEEN OPERATIONAL AND STRATEGIC AGILITY – THE PROMISE OF aGILE
- 1. Copyright© 2020IQbusiness THE DIFFERENCE BETWEEN OPERATIONALAND STRATEGIC AGILITY – THE PROMISE OF aGILE BiaseDeGregorio,PartnerIQbusiness @Biased77
- 2. Copyright© 2020IQbusinessCopyright© 2020IQbusiness STRATEGY MAKES EVERYTHING SOUND IMPORTANT @Biased77
- 3. Copyright© 2020IQbusiness MeetingsStrategic WorkshopsStrategic MarketingStrategic PlanningStrategic @Biased77 AgilityStrategic Copyright © 2020 IQbusiness
- 4. Copyright© 2020IQbusinessCopyright© 2020IQbusiness OPERATIONAL AGILITY VS. STRATEGIC AGILITY @Biased77
- 5. Copyright© 2020IQbusiness 5Copyright© 2020IQbusiness Operational Agility Makingtheexistingproductsbetter, faster,cheaperandsoonfor existing customers Strategic Agility Creatingnew markets withnew productsthatreachnew customers, i.e. market-creating innovationReference:ClaytonChristensen,andto ProfessorsKimandMauborgne intheirbooksonBlueOceanStrategy Reference:WhatIsStrategicAgility?–StephenDenning(Forbes.com) @Biased77
- 6. Copyright© 2020IQbusiness TELECOMMUNICATIONS AUTOMAKERS HEALTHCARE @Biased77Copyright © 2020 IQbusiness
- 7. Copyright© 2020IQbusiness Strategicexecutionisdrivenbythesuccessful alignmentofthebusinessmodel&operatingmodels STRATEGIC EXECUTION Business Strategy and Vision Strategicintentandgoalsoftheorganisation Value Proposition Howtheorganisationderivesvalueandgoestomarket Operating Model Howtheorganisationbuildsandoperatestherightcapabilitiestodeliverthebusinessstrategyandbusinessmodel Execution Initiatives,projectsandoperationactivitiestoimplementthebusinessstrategyutilsingtheoperatingmodel @Biased77
- 8. Copyright© 2020IQbusinessCopyright© 2020IQbusiness BALANCING EFFICIENCY & STABILITY WITH SPEED OF INNOVATION @Biased77
- 9. Copyright© 2020IQbusiness WE STARTED WITH A NETWORK Reference:ScaledAgileInc. HarvardBusinessReview&Accelerate:BuildingStrategicAgilityforaFaster-MovingWorld JohnP.Kotter @Biased77
- 10. Copyright© 2020IQbusiness WE ADD HIERARCHY FOR STABILITYAND EXECUTION Reference:ScaledAgileInc. HarvardBusinessReview&Accelerate:BuildingStrategicAgilityforaFaster-MovingWorld JohnP.Kotter @Biased77
- 11. Copyright© 2020IQbusiness GUESS WHAT HAPPENS? Reference:ScaledAgileInc. HarvardBusinessReview&Accelerate:BuildingStrategicAgilityforaFaster-MovingWorld JohnP.Kotter @Biased77
- 12. Copyright© 2020IQbusiness WE NEED A DUAL OPERATING SYSTEM FOR BUSINESS AGILITY Reference:ScaledAgileInc. HarvardBusinessReview&Accelerate:BuildingStrategicAgilityforaFaster-MovingWorld JohnP.Kotter
- 13. Copyright© 2020IQbusiness DOMAINS OF BUSINESS AGILITY AN OPERATING MODEL FOR THE NEXT GENERATION OF ORGANISATIONS “Businessagilitydoesnotcare aboutAgile,butAgileshould careaboutBusinessagility” Reference:BusinessAgilityInstitute DomainsofBusinessAgility FocusareasforAgiletransformations(Mature) WHY? –todeliveronthePROMISEOF AGILEandWaysofWorking FocusareasforAgiletransformations(Starting) NorealfocusareasforAgiletransformations @Biased77
- 14. Copyright© 2020IQbusinessCopyright© 2020IQbusiness AN AGILE OPERATING MODEL @Biased77
- 15. Copyright © 2019 IQbusiness 15 INNOVATION @Biased77Copyright © 2020 IQbusiness
- 16. Copyright© 2020IQbusiness INNOVATION APPLYING THE 3X MODEL – KENT BECK 16
- 17. Copyright© 2020IQbusinessCopyright© 2020IQbusiness INNOVATION • LEAN STARTUP & MVP • EXPERIMENTS • PLAYBOOK FOR MARKET-CREATING VALUE PROPOSITIONS @Biased77Copyright © 2020 IQbusiness
- 18. Copyright© 2020IQbusiness • STRUCTURE & GOVERNANCE • TECHNOLOGY ENABLEMENT • PEOPLE • CULTURE Copyright © 2020 IQbusiness @Biased77 ELEMENTS TO CONSIDER FOR AN AGILE OPERATING MODEL
- 19. Copyright© 2020IQbusinessCopyright© 2019IQbusiness • SMALL PRODUCT-BASED TEAMS OPERATING IN INTERCONNECTED NETWORKS BASED ON VALUE STREAMS • LEAN/AGILE BUDGETING (VALUE-STREAM OR VENTURE-CAPITAL STYLE) STRUCTURE AND GOVERNANCE @Biased77
- 21. Copyright© 2020IQbusinessCopyright© 2019IQbusiness • SMALL PRODUCT-BASED TEAMS OPERATING IN INTERCONNECTED NETWORKS BASED ON VALUE STREAMS • LEAN/AGILE BUDGETING (VALUE-STREAM OR VENTURE-CAPITAL STYLE) • BOARD – EMBRACING AND ENABLING AGILITY SETTING STRATEGY AND DIRECTION STRUCTURE AND GOVERNANCE @Biased77
- 22. Copyright© 2020IQbusiness • THETRAPOFSHAREHOLDERVALUE • THETRAPOFSHAREBUYBACKS • THECOST-ORIENTEDECONOMICSTRAP • THETRAPOFTHEBACKWARD-LOOKINGSTRATEGY MANAGEMENT TRAPS Reference:TheAgileofAgile–StephenDenning @Biased77
- 23. Copyright© 2020IQbusinessCopyright© 2019IQbusiness • CONTINUOUSDELIVERYANDAUTOMATIONASASTRATEGICADVANTAGE • MICRO-SERVICESARCHITECTURE • CLOUD-BASEDARCHITECTUREANDDEPLOYMENTS TECHNOLOGY ENABLEMENT @Biased77
- 24. Copyright© 2020IQbusiness • AGILEEMPLOYEEVALUEPROPOSITIONANDEMPLOYEEEXPERIENCE • DECENTRALISEDDECISIONMAKING • PERFORMANCEMANAGEMENTBASEDONOUTCOMESANDNOTINPUT PEOPLE Copyright© 2019IQbusiness @Biased77
- 25. Copyright© 2020IQbusiness “CULTUREEATSSTRATEGYEVERYTHINGFORBREAKFAST” -PETERDRUCKER @Biased77Copyright © 2020 IQbusiness
- 26. Copyright© 2020IQbusiness • OPENNESS,AUTONOMY,TRANSPARENCYANDTRUST • LEADERSASDEVELOPERSOFPEOPLE • ENACTEDVALUESTHROUGHDESIREDBEHAVIOR–AMPLIFYTHE BEHAVIORTHATYOUDESIRETHROUGHGUIDEPOSTSANDSTORY- TELLING CULTURE – ALL ABOUT LEADERSHIP @Biased77Copyright © 2020 IQbusiness
- 28. Copyright© 2020IQbusinessCopyright© 2020IQbusiness A STORY @Biased77
- 29. Copyright© 2020IQbusiness @Biased77 Reference:FinancialTimes Victoronix has survived as it matches its words about cultural values with actions and behaviours