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You know what an agile organization is, and why it’s important. But figuring out how to pull off an agile transformation is another question.
Transforming to an agile operating model
Any enterprise-wide agile transformation needs to be both comprehensive and iterative. That is, it should be comprehensive in that it touches strategy, structure, people, process, and technology, and iterative in that not everything can be planned up front (Exhibit 1).
There are many different paths to enterprise agility. Some organizations are born agile—they use an agile operating model from the start. As for others, broadly put, we see three types of journeys to agile: All-in, which entails an organization-wide commitment to go agile and a series of waves of agile transformation; Step-wise, which involves a systematic and more discreet approach; and Emergent, which represents essentially a bottom-up approach.
Born-agile organizations are relatively common in the technology sector (for instance, Spotify or Riot Games1 ), with rare examples in other industries (Hilcorp, a North American oil and gas company, is a case in point). Most organizations must undergo a transformation to embrace enterprise agility. Such transformations vary in pace, scope, and approach, but all contain a set of common elements across two broad stages (Exhibit 2).
First, successful transformations start with an effort to aspire, design, and pilot the new agile operating model. These elements can occur in any order and often happen in parallel. Second, the impetus to scale and improve involves increasing the number of agile cells. However, this involves much more than simply rolling out more pilots. Organizations may iterate among these stages as they roll out agility across more and more of their component parts.
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Here is a direct link to the complete article.
Daniel Brosseau is a partner in McKinsey’s Montreal office, Sherina Ebrahim is a senior partner in the New Jersey office, and Christopher Handscomb is a partner in the London office, where Shail Thaker is a senior partner.