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Enterprise Agility
Enterprise Agility

Enterprise Agility: Being Agile in a Changing World

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Profile Icon Daryl Kulak Profile Icon Sunil Mundra
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Paperback Jun 2018 490 pages 1st Edition
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Enterprise Agility

Chapter 2. From Agile to Agility

This chapter highlights the need for greater agility at enterprise level and calls out the fact that merely adopting Agile methodologies is not enough to enhance agility. With the onset of the Information Age in the mid-1990s, many enterprises began using information technology (IT) as a means to gain competitive advantage. They started expecting IT divisions/vendors to support changing priorities, increase the speed of delivery, iterate the solution based on regular feedback, and lower the costs arising from the changing requirements. However, for decades, software delivery was based on the waterfall methodology [i], which is a rigid and heavyweight approach. Agile methodologies such as Scrum, XP, FDD, and DSDM emerged as a reaction to the challenges arising from the waterfall methodology.

However, agility as a capability is far bigger than Agile. This chapter will bring out the distinction between Agile and agility, and also examine the various facets of...

The values and principles of Agile


While this book is about agility, it is important to briefly define what Agile is. Agile was formally born in 2001, as an abstracted set of values and principles. 17 people, who were practicing their individual methodologies came together to define the manifesto and principles, which they believed to be common to all the underlying methodologies.

The Agile Manifesto

"We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:

Individuals and interactions over processes and tools

Working software over comprehensive documentation

Customer collaboration over contract negotiation

Responding to change over following a plan

That is, while there is value in the items on the right, we value the items on the left more." [ii]

The creators of the Agile Manifesto also specified 12 principles that address areas such as incrementally delivering the highest value, welcoming change, self-organizing teams,...

The need for enhancing agility


The Meriam-Webster dictionary defines agility as:

"the quality or state of being agile." [ix]

The views of two well-known experts bring out the essence of agility. According to David S. Alberts, author of the book, The Agility Advantage:

"Agility is the ability to successfully effect, cope with and/or exploit changes in circumstances".

According to Jim Highsmith, one of the signatories of the Agile Manifesto:

"Agility is the ability to both create and respond to change in order to profit in a turbulent business environment. Agility is the ability to balance flexibility and stability." [x]

Every enterprise has some level of agility, and hence the concept of agility is not new in the business world. What is relatively new is the realization of the need for enterprises to have greater agility. It is now considered as one of the core qualities which an enterprise must have in order to survive and thrive in today's rapidly changing environment.

According to Wouter Agthina...

Adopting Agile is not enough


Enterprises that have adopted Agile are facing two hard realities: a) it is difficult to scale the benefits accrued from Agile and many times even to sustain them, and b) despite adopting Agile, it has made minimal or no difference to the enterprise's ability to deal with the disruptions arising from fast-paced change.

What these enterprises are lacking is a greater level of agility. Adopting Agile practices and methodologies, and even scaling them, does not increase agility. At the enterprise level, it is agility that matters most, not Agile. This is because agility encompasses a set of enterprise-level capabilities while Agile, though based on values and principles, is oriented toward software delivery. Enhancing agility at enterprise level usually requires profound changes across the enterprise. The rest of this book is devoted to the "why," "what," and "how" of achieving enhanced agility.

Enhancing agility is not the same as Agile transformation


Many enterprises are initiating Agile transformation initiatives, with the intent to enhance agility at enterprise level. However, Agile transformations usually mean scaling Agile practices across teams using a prescribed framework, implementing DevOps, changing the rigid structure to another rigid structure, and similar types of changes which not only aim for a fixed end state, but are also blindly copied from what purportedly is working for other enterprises.

The word transformation indicates moving from the current state to a new state, which is predicted in advance. This goes against the core philosophy of agility, which is to assume that a) the end state can be predicted in advance, and b) it is OK to remain in a fixed state.

Jurgen Appelo, author of the book, Management 3.0, has summarized an enterprise with high agility as follows:

"In the 21st century, successful organizations are hard and soft. Fast and slow. Solid and liquid...

Capabilities underlying agility


David S. Alberts breaks down agility into what he labels as six components [xiii]. They may be viewed as capabilities that enterprises need to develop in order to enhance agility. These can be treated as basic capabilities and enterprises can choose to modify this list based on their context.

Responsiveness

This capability means to recognize that some action is needed as a response to an event or a circumstance, to determine what action is to be taken and then to take that action at the appropriate time. The level of responsiveness depends on the speed at which the need and nature of the action is determined and implemented. The effectiveness of the responsiveness will depend on the outcome of the action taken and the timing of the action. It is about sensing and responding to both potential and actual change in circumstances that can be unfavorable, that is, there is risk.

Versatility

This capability helps to achieve the desired outcomes under new and varying...

Properties of agility


Enterprise agility has five key properties:

  • It is a set of capabilities, as discussed earlier. It is not something which is monolithic and abstract.

  • The capabilities reinforce each other and hence agility is greater than the sum of its capabilities. On the flip side, a capability is unlikely to work in isolation of the other capabilities, for example, it is difficult to build versatility unless it is supported by flexibility.

  • Enterprise agility is holistic in nature, that is, it encompasses both tangible elements of the enterprise, for example, people, structure, process, governance and technology, and intangible elements as well, for example, mindset and culture. Each of these elements are discussed in detail in the upcoming chapters.

  • It does not have an end state, that is, it is a journey and not a destination. This is unlike Agile transformation, which works backwards from a fixed end state.

  • Its meaning and relevance is unique to each enterprise. Like health, agility...

Characteristics of enterprises with high agility


Relatively well-established enterprises such as Google, Facebook, Amazon, and ThoughtWorks, and the newer "disruptor" enterprises such as N26 Bank, Tesla, and Netflix are some of the well-known enterprises that have a high level of agility. These enterprises are seen as success stories with respect to not only anticipating and dealing with a rapidly-changing environment but also for leveraging it for their competitive advantage.

While agility is unique to each enterprise, businesses with high agility share some characteristics in terms of the outcomes they are able to achieve consistently. These include the ability to do the following:

  • Anticipate and recognize change in different circumstances, that is, to spot both opportunities and threats emanating from change early. Zara, the Spain-based world's largest clothing retailer, is known to spot fashion trends early.

    According to Donald Sull, a senior lecturer at MIT Sloan School of Management:

    ...

Optimal agility


As stated earlier, the desired, or optimal, level of agility will be specific to the circumstances of an enterprise. Attaining and maintaining agility will involve the investment of time, money, and effort, which are finite resources.

Hence, the goal should be to have as much agility needed to influence potential events, such that the chances of adverse events and/or the impact of adverse events on the enterprise are minimized, and the chances of favorable events are maximized and/or the impact of such events creates opportunities to make positive outcomes. Just like living healthily cannot guarantee good health, agility does not guarantee positive outcomes or that the enterprise will be insulated from negative outcomes. However, the optimal level of agility will definitely increase the probability that an enterprise can cope with adverse circumstances and exploit the favorable circumstances arising as a result of change.

Summary


In this chapter, we learned that adopting Agile methodologies has been a significant enabler for the technology function to improve the effectiveness of software delivery, thereby positively impacting business outcomes as well. However, scaling the adoption of Agile methodologies across a business is not adequate to enhance the agility of the enterprise.

Agility at the enterprise level has six basic underlying capabilities: responsiveness, versatility, flexibility, resilience, innovativeness, and adaptability, with an underlying capability to sense the environment also needed. It is these capabilities underlying agility which will enable companies to not only survive but also thrive on change.

The next chapter is the first of the three chapters in the foundation section. The chapter explores shifting the enterprise from being a close-ended system to becoming a living system.

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Key benefits

  • • Prepare your company to navigate the rapidly-moving business world
  • • Enhance Agility in every component of your organization
  • • Build a framework that meets the unique requirements of your enterprise

Description

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.

Who is this book for?

Enterprise Agility is a tool for anyone with the motivation to influence outcomes in an enterprise, who aspires to improve Agility. Readers from the following backgrounds will benefit: chief executive officer, chief information officer, people/human resource director, information technology director, head of change program, head of transformation, and Agile coach/consultant.

What you will learn

  • • Drive agility-oriented change across the enterprise
  • • Understand why agility matters (more than ever) to modern enterprises
  • • Adopt and influence an Agile mindset in your teams and in your organization
  • • Understand the concept of a CAS and how to model enterprise and leadership behaviors on CAS characteristics to enhance enterprise agility
  • • Understand and convey the differences between Agile and true enterprise agility
  • • Create an enterprise-specific action plan to enhance agility
  • • Become a champion for enterprise agility
  • • Recognize the advantages and challenges of distributed teams, and how Agile ways of working can remedy the rough spots
  • • Enable and motivate your IT partners to adopt Agile ways of working
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Table of Contents

15 Chapters
Fast-Paced Change – Threat or Opportunity? Chevron down icon Chevron up icon
From Agile to Agility Chevron down icon Chevron up icon
The Enterprise as a Living System Chevron down icon Chevron up icon
Mindset and Culture Chevron down icon Chevron up icon
Leadership Chevron down icon Chevron up icon
Organization Structure Chevron down icon Chevron up icon
Process Chevron down icon Chevron up icon
People Chevron down icon Chevron up icon
Technology Chevron down icon Chevron up icon
Governance Chevron down icon Chevron up icon
Customer Chevron down icon Chevron up icon
Distributed Teams Chevron down icon Chevron up icon
Technology Partners Chevron down icon Chevron up icon
Framework for Action Chevron down icon Chevron up icon
Facilitating Change Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Full star icon Full star icon Full star icon 5
(5 Ratings)
5 star 100%
4 star 0%
3 star 0%
2 star 0%
1 star 0%
Francisco Jan 27, 2020
Full star icon Full star icon Full star icon Full star icon Full star icon 5
This book has a powerfull massage into de Business agility change that the companies needs to get survive into a VUCA envitoment. It explains very well how the hierarchy affects the business agility capability customer's oriented.
Amazon Verified review Amazon
Jovanka Damjanovic Aug 24, 2018
Full star icon Full star icon Full star icon Full star icon Full star icon 5
I thoroughly enjoyed Sunil’s book. It very much mimics the experience and reflects the findings and learnings that we are going through over last few years in my organization on the journey to agility.It is about the journey, not the transformation, as Sunil says, journey to resilience, adaptability, and creativity. The book gives you a direction and set of key principles for the continuous improvement and learning, easily adjusted and can be applied to a specific context. It will provide you with a set of guidelines to assist with creating a roadmap to agility, with the focus on ‘being’ agile and not just ‘doing’ agile.In the VUCA world, the world that is volatile, uncertain, complex, and ambiguous, the Enterprise to be successful and relevant has to mature towards responsiveness and flexibility, be resilient, innovative and adaptive, and become learning organization. Sunil talks about Complex Adaptive System (CAS) as an agile living system that continuously evolves, adapts and is feedback driven, with the acknowledgement that ‘destruction is part of the evolution’, with built in ‘fail safe’ principles, and culture where people challenge anything that is not adding value, with the leadership that values diversity and inclusiveness, end empowers people. Through the understanding Complex Adaptive Systems (CAS) and applying principled that CAS is driven by to the Enterprise you’ll start the journey to agility.As I was reading the book, every part, every chapter, every sentence was confirmation of the practical experience and deep learning and it provides great guideline for the new travelers.Great book! Highly recommend it!
Amazon Verified review Amazon
Alberto Jul 30, 2018
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Consigliato a chi cerca una strada per il cambiamento. A chi vuole influenzare la propria o altre organizzazioni ad intraprendere il viaggio per diventare e restare agili!
Amazon Verified review Amazon
sudhir Jul 27, 2018
Full star icon Full star icon Full star icon Full star icon Full star icon 5
Amazing book and a must read for everyone. Although the book is written for CxO's; it has an excellent read for Middle management as they are the ones who actually bring in the Agility into any Organization. Sunil clearly describes the difference being doing and being Agile that is fundamental and connects well. Quite a few places everything becomes a tick in the box exercise and Sunil highlights the risks of doing that and how to truly embrace Agility. Although a bit long, the book is well paced and Sunil delves into the details of every aspect of Agility
Amazon Verified review Amazon
ANigam Jul 13, 2018
Full star icon Full star icon Full star icon Full star icon Full star icon 5
This book is really amazing if you want your company to be Agile or your company wants to be Agile. It helps you evolve and have an agile mindset. I have read couple of chapters since I have purchased and I am glad it is in my collection of books. I have been working in agile environment for last 4-5 years but there is still so much to learn. This book is helping me mature and explore more things.
Amazon Verified review Amazon
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