Operational Agility: A Prerequisite for Strategic Agility

Operational Agility

In the dynamic landscape of modern business, agility is a crucial operational capability. To achieve and maintain agility, organizations must focus on three key areas: broad product definitions, cross-functional skill sets, and frequent releases.

1. Broad Product Definitions

The foundation of operational agility starts with defining in what part of your organization you want to increase agility. A broad product definition is essential. When defining your product, think beyond narrow, technical expertise or specialized skill sets. Instead, consider a broad product definition that encompasses the entire value you provide to your customers.

A product (or service) is something you sell to someone else. It represents value created by producers for consumers. Often, organizations make the mistake of focusing too narrowly on activities and efficiency, without considering the effectiveness of value delivery. This can lead to inefficiencies and missed opportunities for real value creation.

2. Cross-Functional Skill Sets

Once you have a broad product definition, the next step is to gather all the skills needed to turn that product into value within a given timeframe. This requires cross-functional skill sets. Specialization is the enemy of agility, as it often necessitates managing dependencies and coordination, which slows down delivery.

What about team structure? Teams need to be interdependent, working together like a basketball team rather than like a golf team shooting their own round of golf. In a basketball team, different skill sets are integrated, and the team can read and react to challenges dynamically. This analogy highlights the importance of having diverse skills and working together seamlessly to adapt and respond to complex product environments.

3. Frequent Releases

The third key component of operational agility is the frequency of releasing value to customers. Imagine a basketball team that practices all season but only plays games at the end of the season. They would miss out on learning opportunities and real gameplay experience. Similarly, in product development, if you build continuously but do not release frequently, you miss out on valuable (often critical) feedback and learning opportunities.

Frequent releases increase the rate of value delivery, reduce risk, and increase learning throughout the product development lifecycle. By releasing value often, you ensure that your operational agility becomes a strategic lever for your organization's needs. It allows you to adapt quickly to changes and continuously improve your offerings based on real customer feedback.

Achieving Strategic Agility

By focusing on broad product definitions, cross-functional skill sets, and frequent releases, you unlock operational agility. This new capability enables strategic agility, allowing your organization to use its adaptiveness and responsiveness as a strategic advantage.

Agile Not Working For You?

If you find that your releases are infrequent, examine your dependencies. Lack of cross-functional teams or a narrow product definition might be the culprits. Resolve these issues to shrink cycle times, increase delivery frequency, and accelerate your return on investment (ROI).

In summary, achieving operational agility requires a holistic approach. Define your products broadly, cultivate cross-functional teams, and release value frequently. By doing so, you position your organization to adapt continuously and improve in an ever-changing world.