1

Becoming Agile / ResponsiveThe Need For And Path To Transforming For Exponential Times

Dr. Andreas Brill. December 2016

2

A key factor for the success of digital champions is their different mode of running and managing their business.

3

One term describing the new management mode is being agile. Everybody’s talking about it. Few do it. Even less can.

4

If one wants to embrace the concept of agile ways of working, the agile manifesto is the best source to get started. It reveals a fundamental shift in the focus and ways of working.

5

The key question is:

What has triggered this shift? What has created the need for new ways of working?

6

The concept of agile ways of working was created because software development was broken. It was broken, because it was not capable of coping with the complexity and dynamics of digitization

7

So, software needs to be built in agile ways. But:

Why do companies – apart from their software teams – need to bother?

8

Organizations are broken, too. They ‘re broken for the same reasons software development is: they’re not capable of coping with the complexity and dynamics of digitization.

9

Embracing the agile concept requires...

... a deep understanding of the logic and dynamics of digitization...

... and its impact on managing businesses.

10

The logic of digitization

... and its driving forces....

11

The case of the music industry: A brilliant utilisation of the capabilities of digital technology replaced a brilliant business model. And disrupted the entire industry.

A superior und incredibly successful business model...

... completely loses its relevance, once a much better solution has been established in the market!

12

The key point of the story is: This was only the beginning of a series of successive leaps of market transformation that made all winners lose it all.

endless shelves

access to all products, worldwide

digitization and miniaturization of the product itself

the access to all songs from any digital device becomes the product

13

For Amazon, the hard felt insight to this logic of „the winners losing it all“ has kicked off a completely new path. It made Amazon become a business that is responsive to constant market transformation.

14

Embracing digitization means embracing... ... „why all the winners lose it all“!

(Even Amazon! Even Apple!)

15

Digitization triggers the logic of all winners losing it all through the exponential dynamics of its technological foundation...

16

... and through the transformative power of the global connectedness of all digital information, on the other hand.

+ Blockchain!

17

Building a business that is responsive to the dynamics of successive transformational leaps is THE key challenge for any business in the digital era.

exponential times

successive transformation

challenges

attacking one‘s own business model

legacy businesses

focus on growth

disruptive changes breaking industry rules focus on stability and reliability

shortened cycles of innovation permanent beta mode

unpredictable developments agile, open, networked focus on optimization

changes in consumer behavior purpose driven/consumer obsessed sales driven marketing

paradigm of information digital skills paradigm of the physical product

uncertainty antifragile, responsive robust

focus on efficiency and risk avoidance

18

The concept of a responsive business

19

Responsive businesses are driven by four key principles that set them apart from other businesses.

How do we enable our teams to create, test and continuously improve solutions that are 10 times better than anything that‘s out there in the market?

Which solutions have the potential to shake up an entire industry and make all current competitors look stupid?

What will be technologically feasible in the next 5 to 10 years that is impossible as of now?

Which solutions would be ten times better for our customers than anything that exists in today‘s market?

20

The four principles are deeply rooted in the day to day business of responsive companies...

Special Projects / Labs Day to Day Business

21

... and they are supported by structures, processes, tools, rules and cultural pillars that trigger responsive ways of working.

22

The huge challenge of becoming a business that is agile and responsive to exponential change:

... rooting the four key principles of

responsiveness in ones day to day business!

... creating a governance system that triggers agile

ways of working!

23

In other words: The challenge is transforming into a next generation businesses. How can you do that?

24

Many managers and consultants will say: Build a startup with super young employees. But practically all of them fail. Sooner or later...

Building startups is complicated... ... most don‘t take off at all... ... and practically all fail sooner or later!

25

The dividing line between legacy and next generation businesses is not between startups and traditional companies. It’s between companies capable of constant and radical self-renewal and all others.

26

The good news is: Constant self-renewal is easier than ever. Because the (digital) tools, processes and data facilitating responsive work exist. So: it CAN be done!

27

The bad news is: It’s tough. Because the routines, skills and capabilities of legacy businesses are designed for the opposite of constant and radical self-renewal.

28

The fact is: It must be done. No business can afford not to build the muscles for constant and radical self-renewal. The sooner one starts, the better.

29

While getting started is crucial, it is just as important to keep the key challenge of solving the transformation paradox („the change monster“) in perspective at any stage of the process.

30

How to become responsive and agile

31

We have transformed our own company and have supported various businesses on their path to becoming agile. On this path, we have learned a lot...

32

Lesson 1: Before introducing agile ways of working one needs to experience them oneself.

33

Lesson 2: Unleashing the power of selforganized ways of working requires the most rigid framework.

34

Lesson 3: Becoming agile requires the full attention and committment of the managers who must cease to be the managers they used to be.

35

Lesson 4: Becoming agile requires building the teams and skills a company cannot have.

36

Lesson 5: The transformation into an agile company must be managed in an agile way.

37

Lesson 6: Becoming agile requires starting small and applying it to the entire pitch right away.

Starting with a key need... ... while keeping the entire picture in sight!

38

Lesson 7: Noone ever gets there. That’s why everyone needs to start right away...

1

Thank you!

b4b GmbHSchifferstr. 200

47059 Duisburg

Sie haben Fragen? Ergänzungen? Diskussionsbedarf?Lassen Sie uns reden!

email us: info@b4b.comcall us: +49-203-713-959-00

www.b4b.com