The way of working has changed. The conventional way of doing business is struggling to meet consumers’ needs. We cannot afford to spend weeks to months to launch a plan. Agile methodology has proved to be more productive and efficient.
Agile methodology cannot work unless all members have developed an Agile mindset. Developing an Agile mindset is easier said than done. It takes a total change in how the whole organisation thinks and works. It should happen to all levels.
Let’s discuss the bureaucratic system and compare it to Agile.
What is the Bureaucratic System?
The bureaucratic system is something we are familiar with. Bureaucracy was invented to achieve a high level of control. A bureaucratic organisation has multiple layers and divisions that focus on generating more revenue for the company and the shareholders rather than offering better customer value. The bureaucratic system works well in the military and armed forces. It was indeed effective during the 20th century.
As a result, ninety per cent of the businesses operate in a bureaucratic structure. Look at your organisation chart. You find the C-Suites, your HODs, Managers, Assistant Managers and Team Leaders. Then, you have many departments and divisions for different functionality. All business decisions are made at the upper management level. Rules, regulations and processes are in place. You can easily tell that this kind of organisation works and operates with a bureaucratic mindset.
In a standard bureaucratic organisation, individuals report to bosses who ensure accurate performance according to management’s plan. The boss did the same to his boss, and so on. Plans are done at the top, and budgets are allocated division by division. A task is passed from one department to another. In the end, only a few workers are fully engaged in the project, and a handful is truly passionate about their jobs. It’s a total disaster with no entertainment.
The bureaucratic system is also not flexible. The management launches a program without considering all users’ opinions. When the program fails, the management refuses to listen to feedback. The buy-in from the stakeholders is low. As time passes, more businesses realise this system costs more and is extremely inefficient. So, they look for a better alternative.
But what is Agile?
Agile was first introduced in 2001 by a group of software developers. They created the Agile Manifesto, which intended to improve software development processes. Today it is heavily adopted in project management, human resources and business administration.
An Agile organisation has a network of self-empowered teams. The teams consist of members from various relevant divisions such as sales, marketing, design and development. One of the members will be elected as the Team Leader. Each team will produce a working solution in a short time, usually two weeks. They can accept unexpected changes and adapt easily to requests and feedback. They do not plan extensively. Therefore, they can achieve high-performing results with high customer satisfaction.
An agile organisation creates a workplace of accountability, integrity and collaboration. The performance evaluation is based on whether you have added value to your customers. Team meetings are less frequent. Ideas come from everywhere, including customers. The teams conduct short meetings. They receive constant feedback from users. The teams learn, grow and adapt to new opportunities. Team members collaborate better and cope with continuous changes. Therefore, the organisation delivers more value to customers with less work and higher returns.
Yet many organisations still refuse to adopt Agile. Why? The top management believes small teams cannot deliver efficient performance, just like they perceive working from home does not perform. They advocate bureaucracy is better.
Why do we need to be Agile?
Agile is about working smarter, rather than harder.
It’s not about doing more work in less time; it’s about generating more value with less work.
In the past, companies thought they could manipulate customers. If a customer doesn’t like something on offer, the customer has no other choice. But today, customers expect instant, intimate and smooth experiences. If you don’t have it, the customer will find someone who has it.
The market becomes extremely volatile and uncertain. Many bureaucratic companies use digital technology or the Internet of Things to tackle, but delivering uninterrupted customer experience lies beyond the new technology. Their customer-focused strategy seems more like a slogan. Their internal processes and KPIs limit what their staff can do for their customers. To effectively cope with continuous change, we must embrace Agile.
Agile focuses on the users and their values. The Agile practices include respect and understanding, collaboration, learning and improvement, delivering values to customers and being flexible to change.
However, if an organisation is managed as a top-down bureaucracy focused on profit, the top-down approach will undermine the Agile teams in the long run. Due to the policies, poor performers can easily hide. In an Agile organisation, the top management still sets the organisation’s purposes. If you don’t perform, you are out. Each member holds the other accountable. This practice drives higher performance in an Agile organisation than in a bureaucracy.
Because Agile focuses on delivering value to customers, someone will query why the work is being done if the work is not adding any value. The management then adjusts goals, principles, work processes and incentives to eliminate unproductive activity. The whole organisation is obsessed with delivering more value. An Agile team interacts with other teams to solve problems, not create conflicts.
[Case Study] Barclays adopts an Agile approach to stay competitive in a tense market. They switched their focus to delighting customers than shareholder value. Since the adoption, they have seen a 300% increase in work performance. Their teams can consistently deploy production in 0-4 weeks. As a result, they found Agile team members happier. Those members advocate “often being first to market with a new product and then able to pivot quickly based on fast feedback” to their happiness.
Final Thoughts
This is not about doing Agile.
It’s about being Agile.
Professor Julian Birkinshaw noted in 2016 how Agile had transformed leadership and management. Agile businesses can deliver instant and personalised customer value. I apply Agile strategy as a freelance travel consultant and UX designer. I sell more travel packages and handle more design projects than before. 80% of my work time is used to complete 100% of jobs. I shift my mindset from hitting my KPI to delivering excellent customer service. I assist more and more customers. Then, I find my customer satisfaction rating improves tremendously.
Our top management focuses on profit and individual sales targets than customer satisfaction. However, trust me. I never believed it until I did my Year 2022 performance report. My individual sales profit hit 45K in one year! It has never happened before the pandemic. Agile works!
It does not matter what tools and strategies use when you have developed the right mindset. Agile is the mindset! The mindset will make things right. If you do not have the mindset, nothing will benefit you.
How do I apply Agile in a bureaucratic organisation? I will discuss this in my next article.