Six pillars of an agile organization

Cultural change within an organization is a complex phenomenon that requires strategic efforts and planning. It cannot be left to chance or assumed to happen naturally over time. Knowing where to start and understanding the key factors that shape daily operations is crucial for initiating a successful cultural transformation. In this article, we dive into the most important components that affect the work environment and present six fundamental tactics that can prepare a company for future changes. § How do you drive cultural change within an organization? § We often see companies trying to change their culture by investing large sums in developing new values or a culture guide, etc., to create a corporate culture. They may even put the values on the walls as a reminder to all employees or arrange a series of workshops for all units so that they truly embrace the new values.

After six months, you may start to wonder why you still have not achieved the cultural change you hoped for. The point is that cultural changes do not happen

on their own. To change the culture in a company, one must first critically examine and change the structures that affect employees' daily work. You need to review how you run your business, how you interact within the organization, how you reward your employees' work, and how you organize and prioritize what is important. All of these control mechanisms must be adjusted to achieve a cultural change and make things happen. § What is the definition of working agilely? § In today's fast-paced and constantly changing business landscape, organizations face the ongoing challenge of meeting the needs and expectations of their various stakeholders, including customers, owners, employees, and partners. Agility has proven to be an important concept for managing this challenge effectively. §

There are various definitions, but for us, agility is the ability to see and understand the needs of the recipient (customer, owner, employee, partner) and, with this knowledge, have the ability and courage to change focus and direction, as well as priorities and activities, to maximize value effectively. In other words, it involves two things:

1. Acknowledge and understand the need for change

2. The ability to act based on this insight

Six essential pillars for an agile organization

In a complex and constantly changing world, many companies must find a new way to do business to remain successful. It is not enough to simply believe that a new way of working will do the trick; one must be prepared to sacrifice some to truly achieve a change that allows the company to prepare for future changes and needs.

What are the common challenges for an agile organization?

It is important for companies with a holistic approach to define what they want to achieve and for management to fully embrace and drive the change. Organizations that do not function particularly well often live in two parallel worlds, meaning that some parts of the company work agilely while others do not. This usually means that they fail to align budgeting, management of financial results, or tracking employee performance within HR with the agile method. The result is often friction and the risk of getting the worst of both worlds.

Where should a company start?

As a company, you need to review your processes for how you create value, and for whom you create it. You must also find a common understanding of, and belief in, the management team's convictions regarding what they want to achieve. With a common vision and a clear purpose for the change, you will be well on your way. After that, you must develop and evaluate options for creating agile value streams and teams that can deliver customer value in a changing environment more effectively than the current organization. Depending on what is important when it comes to optimizing your organization, there are different approaches to building a team. One thing is certain, ONE business model does not solve ALL problems. So choose the model that optimizes for what is most important for your organization.

Once you have an overarching vision, it's time to try agile working methods and let your organization get used to the new values, principles, methods, and tools that come with agile working practices. Companies often roll out agile methods gradually to apply the agile principle of testing, learning along the way, and adjusting as needed.

We often see HR as a natural driver for agile transformation. An agile approach often relies on finding new cross-functional collaborations, thereby breaking down existing functional silos between different parts of the organization. Since such a change must involve many different (if not all) departments within a company, HR can serve as the dependent party within the organization that can navigate the change journey and create a common platform for new ways of working.