Book Image

Enterprise Agility

By : Sunil Mundra
Book Image

Enterprise Agility

By: Sunil Mundra

Overview of this book

The biggest challenge enterprises face today is dealing with fast-paced change in all spheres of business. Enterprise Agility shows how an enterprise can address this challenge head on and thrive in the dynamic environment. Avoiding the mechanistic construction of existing enterprises that focus on predictability and certainty, Enterprise Agility delivers practical advice for responding and adapting to the scale and accelerating pace of disruptive change in the business environment. Agility is a fundamental shift in thinking about how enterprises work to effectively deal with disruptive changes in the business environment. The core belief underlying agility is that enterprises are open and living systems. These living systems, also known as complex adaptive systems (CAS), are ideally suited to deal with change very effectively. Agility is to enterprises what health is to humans. There are some foundational principles that can be broadly applied, but the definition of healthy is very specific to each individual. Enterprise Agility takes a similar approach with regard to agility: it suggests foundational practices to improve the overall health of the body—culture, mindset, and leadership—and the health of its various organs: people, process, governance, structure, technology, and customers. The book also suggests a practical framework to create a plan to enhance agility.
Table of Contents (23 chapters)
Enterprise Agility
About Packt
Forewords
Endorsements
Contributors
Preface
Other Books You May Enjoy
Index

Preface

The challenge of fast-paced change

One of the biggest challenge enterprises are facing today is how to deal with disruptions arising from fast-paced change. This change is largely driven by technological innovations, to the extent that it's forcing enterprises in every sector to put technology at the core of their respective businesses. The change is so disruptive and fast that no enterprise—regardless of its age or size—can take its survival for granted.

My hypothesis is that enterprises are struggling to deal with change as they are modeled as mechanistic systems, that is, to optimize predictability and stability. An enterprise that is modeled for this will inevitably struggle to deal with fast-paced change. I believe that enterprises must be infused with "life" in order to not just deal but also leverage the changing environment for their benefit.

Agility is a necessity

I am a passionate believer in the need for agility (the use of noncapital "a"; in agility is deliberate as it's a capability and not a noun) at the enterprise level. Being an evangelist for enterprise agility, I believe that it's the only agility that will enable enterprises not only to deal with a fast changing environment, but more importantly to leverage change for competitive advantage and customer delight. The reason I say this with full conviction is that, in my opinion, this is the common attribute of enterprises that are successfully dealing with and/or leveraging change, be it large corporations such as Google and Amazon or newer start-ups such as Uber and Tesla, which are causing widespread disruptions. My conviction is validated not only by the virtue of me being a part of an organization— ThoughtWorks—which has achieved a mature and sustainable level of agility across the globe

My sentiment about agility is aligned with what Jim Highsmith, one of the signatories of the Agile Manifesto, has said: "Agility is the ability to both create and respond to change in order to profit in a turbulent business environment." (http://jimhighsmith.com/what-is-agility/)

It is an indisputable fact that the Agile Manifesto and its twelve Principles were abstracted from the methodologies such as Scrum, XP, and DSDM, which were being used to overcome software-delivery-related problems. However, I am very sure that the Agile Manifesto signatories intended the outcome to be agility, and not just following Agile as a methodology. This difference is extremely significant and goes beyond nuances of grammar. It's about "being" Agile: having agility versus "doing" Agile.

While I will deal with the issue of Agile versus agility at length in the core of the book, my hypothesis is that most Agile Transformations initiated—by adopting Agile at enterprise level—have met with limited success because the focus has been on "doing" rather than on "being" Agile. Compared with Agile, agility is a very different ballgame. This is because it's intrinsic in nature and so applies to the whole and not to just one or more parts of the whole. To give an analogy, "doing" Agile is akin to mechanically lifting weights to strengthen the arms, and "being" Agile is about aligning the physical body, mind, and emotions to improve the holistic health of a person. Sure, it may need to include lifting weights to strengthen the arms, but it may also include overarching things such as giving up smoking, practicing meditation, and improving work-life balance.

My experience and reading suggests that leaders who have taken their enterprises down the Agile Transformation path have often found that achieving enterprise agility is hard, scary, and painful. Moreover, the illusion that agility can be achieved merely based on scaling Agile practices and processes across teams is not helping the cause at all. Unless the enterprise achieves real agility, the benefits gained from "doing" Agile will at best be very limited and will most likely regress the concerned parts of the enterprise to their original dysfunctional state.

It's therefore not surprising that leaders of such enterprises are unable to see the full potential of agility, and at times, have actually lost faith in it. On the other hand, leaders who have had the courage, conviction, and persistence to transform the enterprise and themselves as well, have experienced incredible outcomes.

Goal of the book

My goal through this book is to highlight that the approach to enterprise agility must be based on treating the enterprise like a living system, say a human body, rather than treating it like a machine, such as a car. When a machine slows down or breaks, the relevant part of the machine can be fi xed or even replaced. However, if the overall health of a human being is not good, it can rarely be cured by just fi xing a specific part or parts of the body.

This book is about improving the enterprise's health and is not just about fixing something which is broken and localized, say a fractured leg. The key message that I wish to convey is that enterprise agility is not about making the parts Agile and then adding it up—working on each part separately. The human body analogy will be to improve agility in hands, legs, head, eyes, and so on, to hope that the overall health will improve. It may also involve diet, exercise, and stress management, which result in the holistic wellbeing of a person.

Optimal functioning of human organs does not imply overall good health, but at the same time good health needs all organs to function well. Similarly, to achieve optimal agility at the enterprise level, the components of the enterprise—people, processes, structure, governance, technology, and customers (yes, I consider the customer to be an integral component of the enterprise!)—must be enabled and leveraged for greater agility. Hence, in the book I have approached enterprise agility from both holistic and component level perspectives.

Moreover, just like the meaning of good health is specific to an individual, what "good" agility is will be specific to the enterprise. Hence, enterprises must create an action plan to enhance and sustain agility based on their respective context. As in case of health, there are patterns that are known to inhibit and enhance agility. I have shared some patterns in the book, which enterprises can use as pointers for creating the action plan.

I am also passionate about sharing my knowledge, and this, along with my conviction about and belief in the power of agility are the key drivers for me to write this book. Being in ThoughtWorks, which has groomed and nurtured many well-known thought leaders, I harbored self-doubts about being an author and thereby potentially being compared with these great thought leaders.

However, my ex-colleague and now a good friend Matthew Stratford put things in perspective. He said, "Not every guitarist can be Jimmy Hendrix, but they can still make music which at least some people will like." I have drawn inspiration from this statement throughout this tough but highly fulfilling journey.

Value and limitations of the book

In an era where information on literally any topic can be "Googled," I initially wondered whether it was worth writing this book. However, the realization that my perspectives on agility and the narrative around them are unique gave me the courage and strength to write this book. With humility, I am hopeful that readers of thebook will find them of some value.

The book is obviously limited to my knowledge and experience, and I wish to explicitly call out the following disclaimers in this regard:

  • This book is based on both my experiences in software delivery and consulting, and my study on this subject. This means that my views are limited to the context of my experience and readings only. Therefore, what I have shared with regard to what will or will not work may not be applicable in certain contexts. Moreover, I have shared perspectives of external experts where I have felt appropriate, with a view to providing holistic perspective to the readers.

  • The book doesn't cover many other important aspects of the enterprise such as innovation, marketing, and support functions such as legal, knowledge management and others, as I don't have experience in enhancing agility in these areas.

  • I don't claim to be a "subject matter expert" in any of the topics covered in the book, which includes specialist topics such as technology and culture. Hence, the coverage of each topic in the book is limited to my knowledge and experience related to that topic.

  • I have myself not held any enterprise-level leadership position in the post-Agile era. However, I have observed, advised, and worked with senior leaders across a variety of organizations across the globe and have derived my learnings about leadership in the context of agility based on these experiences.

  • The scope of the book doesn't include what Agile is, the various methodologies under its umbrella, and their processes and practices. The scope also excludes describing the benefits of Agile. My hypothesis is that the intended audience of this book already has an awareness about these.

  • I have used the terms Agile as a broad term that also encompasses other value-oriented frameworks such as Lean, Kanban, and so on. There is absolutely no intention of being disrespectful to the uniqueness of these frameworks.

  • I have used the word enterprise also as a synonym of organization and business. I believe the word enterprise best conveys the wholeness of the entity.

Intended audience

This book is intended for any person that has influence in an enterprise that is aiming to improve its agility. The more the infl uence, the greater the value that the person will be able to derive from this book.

Specifically, the following roles associated with such an enterprise will benefit the most:

  • "C" level leadership and senior executives

  • Function heads

  • Delivery managers

  • People function managers

  • Project management offices

  • Enterprise and leadership coaches

  • Organization development and change consultants

Having said this, I also believe the book can be an enabler for conversations between people who have an interest in enterprise agility.

What this book covers

Part 1 – The need for enterprise agility

This part examines the challenge of fast-paced change both from an opportunity and threat perspectives, and how the capabilities underlying agility can help the enterprise to leverage change to its advantage.

Chapter 1, Fast-Paced Change – Threat or Opportunity, deals with the impact of fast-paced change and the need for enterprises to reorient themselves to not only deal with change but also leverage the opportunities arising from it.

Chapter 2, From Agile to Agility, is about understanding the need for agility, how agility is different from Agile, and the underlying capabilities of agility.

Part 2 – The foundations of enterprise agility

This part examines the three foundational blocks of enterprise agility, namely, modeling the enterprise as a living system, mindset and culture, and leadership.

Chapter 3, The Enterprise as a Living System, explores shifting the enterprise from being a close-ended system to becoming a living system.

Chapter 4, Mindset and Culture, explores the significance of mindset and culture and how to influence them to become enablers for enhancing agility.

Chapter 5, Leadership, focuses on understanding the significance of leadership, and the key personal traits and behaviors of leaders which are critical for enterprise agility.

Part 3 – The components of enterprise agility

This part examines the six critical component of an enterprise, namely, organization structure, process, people, technology, governance, and customer, and suggests measures to unlock and enhance agility of these components, which will lead to enhancing agility of the enterprise.

Chapter 6, Organization Structure, covers the significance of organization structure and how to leverage this for enhancing enterprise agility.

Chapter 7, Process, covers the significance of process and how to leverage process for enhancing enterprise agility.

Chapter 8, People, covers the significance of people and how to leverage their capabilities for enhancing enterprise agility.

Chapter 9, Technology, covers the significance of technology and how to leverage technology for enhancing enterprise agility.

Chapter 10, Governance, covers the significance of governance and how to leverage governance mechanisms for enhancing enterprise agility.

Chapter 11, Customer, covers the significance of customer and how best to serve the customer for enhancing effectiveness of enterprise agility.

Part 4 – The blind spots

This part examines two blind spots of the enterprise, namely, distributed teams and technology partners, and suggests measures to unlock and enhance agility of these areas, which will lead to enhancing agility of the enterprise.

Chapter 12, Distributed Teams, examines the significance of distributed teams and how to leverage them for enhancing enterprise agility.

Chapter 13, Technology Partners, examines the significance of technology partners and how to enable them for enhancing enterprise agility.

Part 5 – The journey for enhancing agility

This part examines how to create an enterprise specifi c action plan for enhancing agility, and the enablers for facilitating change within the enterprise.

Chapter 14, Framework for Action, provides a framework for creating an action plan to enhance agility based on the specific circumstances of the enterprise.

Chapter 15, Facilitating Change, is about learnings that can help in facilitating change across the enterprise.

Learning outcomes

Readers will be able to learn about these topics:

  • The meaning and significance of enterprise agility, and the importance of distinguishing it from Agile.

  • Principles of complex adaptive systems (CAS), and how the enterprise can use these principles to enhance its agility.

  • What an Agile mindset is, its attributes for leaders and teams, and the measures that can be taken to help leaders and teams make the transition from a traditional to Agile mindset.

  • The significance of each of the following areas for a 21st century enterprise and specific measures in each of these areas to unlock and enable agility:

    • People

    • Processes

    • Structure

    • Governance

    • Technology

    • Customer

  • The advantages and challenges of having distributed teams, and the measures to enhance agility and overcome the challenges of being distributed.

  • Key considerations in building relationships with technology partners, and measures to help these partners align to Agile ways of working.

  • A framework to create an enterprise specific action plan for enhancing agility.

  • Insights for facilitating change.

The final word

The book is written with an intent to provoke thinking and not with an intent of providing prescriptive solutions. I have shared patterns that I have observed and experienced, which are inhibitors to and are enhancers of agility. If I can get the readers to just think about the relevance of the patterns in the context of their enterprise, I think my book would have served its purpose.

Conventions used

There are a number of text conventions used throughout this book.

Bold: Indicates a new term, an important word, or words that you see on the screen, for example, in menus or dialog boxes, also appear in the text like this.

References: In-text references include a bracketed number (for example, [i]) that correlates with the numbering in the References section at the end of the chapter.

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