BE AGILE. 

What does it mean?

Agile is equivalent to fast. No, not really. Not only that.

In the first place, being agile has to do with simplicity which, as a quote from Charlie Chaplin reminds us, is not an easy thing to achieve at all. We live immersed in an ecosystem, in a system of networks and information nodes. As managers we are increasingly called upon to do the job of designers, psychologists and philosophers: intercept weak signals, translate them and pool them to respond in a personalized way to our client's needs, to greatly reduce time-to-market how much the costs.

“Think simple, act fast”: this is the real key to any future organization.

In practice, an agile organization adopts processes, tools and learning approaches that allow it to respond in an appropriate manner and time to market changes and technological transformation.

Agile methodologies, initially developed for the IT sector, have transformed software development over the past 25 to 30 years, leading to higher success rates, better quality, faster market delivery, and enhanced team motivation and productivity. These methods, characterized by new values, principles, and practices, offer a stark contrast to traditional command-and-control management styles.

Today, agile practices are spreading beyond IT to a wide range of industries and business functions, including media, manufacturing, marketing, logistics, and even into executive leadership. Agile’s emphasis on self-managed, cross-functional teams focused on customer needs is driving profitable growth and nurturing a new breed of versatile general managers.

However, the adoption of agile outside IT faces challenges. Many executives lack a deep understanding of agile principles, often knowing just enough to use buzzwords without truly grasping the methodology. This superficial knowledge can lead to management practices that conflict with agile principles, undermining team effectiveness. Common issues include launching too many initiatives simultaneously, spreading talent too thin, micromanaging teams, overriding team decisions, and imposing excessive controls, all of which dilute the benefits of agile innovation.

Agile is fundamentally about fostering innovation, which is critical for companies in today’s fast-paced, dynamic business environment. While less applicable to routine operations, agile thrives in settings that demand constant innovation in both products and internal processes. Companies that create environments conducive to agile practices find their teams can innovate more rapidly and effectively.

Based on extensive consulting and research, six key practices have been identified that leaders should adopt to fully leverage agile's potential. These practices are crucial for fostering a culture where agile methodologies can thrive, leading to sustained innovation and competitive advantage.

Understanding and Applying Agile: Fundamentals and Limitations

Many executives have a superficial understanding of what agile truly means. Some associate it with anarchy, thinking it allows everyone to do whatever they want, while others see it as a way to do what they say, just faster. In reality, agile is neither of these. There are different forms of agile, each with common principles but different focuses. The main forms include:

1. Learn How Agile Really Works: agile comes in several varieties, such as scrum, which emphasizes creative and adaptive teamwork in solving complex problems; lean development, which focuses on the continual elimination of waste; and kanban, which concentrates on reducing lead times and the amount of work in process.

2. Understand Where Agile Does or Does Not Work: Agile is not a panacea, you have to find the right conditions for it and most importantly, Agile innovation also depends on having a cadre of eager participants. “Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done.”

3. Start Small and Let the Word Spread: the most successful introductions of agile usually start small. They often begin in IT, where software developers are likely to be familiar with the principles. Then agile might spread to another function, with the original practitioners acting as coaches.

4. Allow “Master” Teams to Customize Their Practices: before beginning to modify or customize agile, a person or team will benefit from practicing the widely used methodologies that have delivered success in thousands of companies.

5. Practice Agile at the Top: strategy development and resource allocation are examples of activities where agile methodologies are perfectly suited. Senior executives who come together as an agile team and learn to apply the discipline to these activities achieve far-reaching benefits. Their own productivity and morale improve. They speak the language of the teams they are empowering.

6. Destroy the Barriers to Agile Behaviors: research by Scrum Alliance, an independent nonprofit with 400,000-plus members, has found that more than 70% of agile practitioners report tension between their teams and the rest of the organization. Little wonder: They are following different road maps and moving at different speeds. So how can we destroy these barriers?

7. First, Align Everyone with a Common Vision. When different teams work on separate components of complex issues, they must all align with the organization’s key priorities. Even if not every team uses agile methods, they should still work from the same priority list. For instance, if developing a new mobile app is the highest priority for the software team, it should be the same for budgeting, testing, and integration. Without this alignment, agile efforts will face challenges. Ensuring this falls under the responsibility of an agile executive team.
   

Then, start by Modifying Roles, Not Structures. Some executives mistakenly think that building more cross-functional teams requires a major organizational restructure. This is rarely the case. Empowered, cross-functional teams do require a matrix management system, but the focus should be on fostering collaboration among different departments, working concurrently rather than sequentially. Assign One Decision-Maker per Task. While individuals may report to multiple leaders, decisions cannot be made by more than one person. In an agile setup, it should be clear who is accountable for key tasks such as assembling teams, choosing leaders, and making final decisions. A senior executive typically oversees this, ensuring each innovation initiative has a dedicated owner. Other leaders should provide support but refrain from undermining decisions. If necessary, change the person in charge rather than undermining their authority.

Prioritize Team Success Over Individual Achievements. Research shows that while individual intelligence influences team performance, the collective intelligence of a group is even more crucial—and easier to enhance. Agile teams employ facilitators to help improve their collective intelligence by refining roles, resolving conflicts, and encouraging equal participation. Metrics should shift from focusing on individual productivity to measuring team results and overall satisfaction. Recognition and rewards should prioritize team accomplishments.

Lead by Asking Questions, Not Giving Orders. General George S. Patton Jr. once advised leaders to avoid dictating how tasks should be done. Instead, tell people what needs to be achieved, and let them surprise you with their creativity. Agile leaders guide through questions like “What do you suggest?” or “How can we test that?” This approach fosters growth among functional experts and promotes a shift from siloed teams competing for resources to collaborative, cross-functional groups.

Agile methodologies have transformed the software industry, one of the most rapidly evolving sectors in business over the past three decades. Now, agile principles are extending beyond IT to transform other functions in various industries. The biggest challenge today isn’t proving agile’s effectiveness but changing executive behaviors. Leaders who embrace agile’s expansion will drive faster, more profitable growth.

Credits: Harvard Business Review - Embracing Agile. How to master the process that’s transforming management, by Darrell Rigby, Jeff Sutherland, and Hirotaka Takeuchi