Wednesday, January 17, 2018

INNOVATION SPECIAL ....Cos should embrace agility to drive innovation at work

Cos should embrace agility to drive innovation at work

Change In Mindset, Operating Model Needed To Face Disruption

Our journey to digital transformation was given a leg-up as our new CEO for Maersk Global Services, Navneet Kapoor, joined us in mid-2017. In his view, many digital non-native companies, despite having the will and wherewithal to transform, have a high failure rate. Yet, success is possible if a virtuous cycle of doers and decision makers come together in a startup ecosystem, with an infusion of engineering talent that flourishes in an environment of intrapreneurship. This thought has been put in action with our set up at Maersk Digital Centre in Bengaluru.
Ownership of large assets and a history of success often makes many large corporates blind. Organisations need to be fully self-aware as its leaders need to survive and grow in this changing era. Every company needs to assess if they are doing all they can to innovate and serve their customers. Speed is critical as compared to how we used to measure time to market. One needs to move in quickly to build an agile way of working where self-managed and truly empowered teams are a reality.
Agility is common sense with discipline, which is its core strength. It requires adaptive planning through a time-based iterative approach and encourages rapid and flexible responses. The barriers to agility are many: Holding on to legacy, bureaucracy, KPI-based reviews, inadequate resources allocation, trying to scale without infusing digital capabilities, and lack of trust/transparency.
Akey challenge an organisation faces in embracing agility is the mindset. For many on the senior-leadership team, agility requires a significant change in mindset. Traditionally, they have been focused on requesting and approving big-bang system changes. According to a McKinsey report on digital transformation, C-suite leaders need to understand the benefits of a perpetual-evolution model that emphasises continuous monitoring and renewal across all elements of technology stacks. If we simply try to adapt, we are still tied to a milestone-linked planning of project management or reviews, the waterfall way. For perpetual evolution, companies should commit to continually update their enterprise architectures.
Embracing agility begins with a change in the operating model. Organisations need to take a hard look at how they are organised and re-stack themselves around customers and businesses for future agility and innovation. This may sound daunting. However, as it is agile, the approach can fire in phases through iterative and incremental development. The new model/s need to dramatically remove any artificial fragmentation that is created for the sake of control or managing certain SLAs to improve efficiency.
This may call for an organisation redesign, where the structure is networked and not hierarchical with larger spans of control, bringing leaders closer to teams while breaking functional silos. As Spotify calls it, the organisation should be ‘loosely coupled and tightly aligned’. A setup of small cross-disciplinary teams staffed with top most talent working on a brutal priority list, is like an ‘amoeba organisation’. The organisation is divided into small neural network units responsible for drafting their own milestones and succeed through collaboration of all its members. According to Google, it’s a flat organisation where ideas are generated by all employees and not through chain of commands. These teams deliver through continuous integration, continuous delivery, testdriven development, and learn on the go as they course correct. In this approach, products are a combination of experiences and offerings.
Organisations that embrace agility, have an outstanding customer obsession. They ruthlessly prioritise to ensure customers remain relevant. Organisations should strive towards becoming a real partner in customer’s growth, be it sensing their needs for the future or addressing their pain.
Leaders driving transformations in organisations carry a special disruption DNA in themselves. While transcending functional boundaries and silos they can work through self-organising autonomous teams. Old school leaders, even the ones coming from a technology background, wouldn’t necessarily work in generating followership in talent as they will not be able to engage unless they discard the typical control and command school of management. The culture of test, learn and fail fast but forward, is the key to innovation.
Agility is not a silver bullet, neither is it the goal for an organisation. Adaptive planning is an approach where action leads to results and learning is iterative.We start simple by eliminating one paper, one task and one hand-off.
By Pratap G
The author is senior director (HR), Maersk Global Services Centre.

TOI 10JAN18 

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