Dynamic Organization

The Future Dynamic Organization

Making “Organize around value” a reality

Applying these principles gives you the flexibility needed in a fast-moving world, turning your organization into one which is fit for the future.

The Problem

Constantly changing customer needs and fast moving technical developments leave most larger enterprises (including those who have a implemented an agile framework such as SAFe®) chasing shadows, unable to reconfigure their collaborations at the speed necessary to keep up with customer requirements.

The Solution

1. Establish a stable line organization (chapters) with operational and functional responsibility for systems. Assign teams fully to a single chapter.

2. Use lean portfolio management across the enterprise to identify projects which generate the most value for the organization and manage prioritization and budgeting accordingly.

3. Create more flexible organizational units (zones) which have full implementation authority for one or more projects.

4. Use standard business capability models to describe both needed functionality and team competences (see contextual mobility)

5. Allow teams to move between zones as needed using cyclical planning cycles.

6. Use appropriate collaboration models such as ARTs or solution areas within zones.

Advantages

• Reduced Bottlenecks: the right teams work directly together

• Accelerated Decision-Making: clear delivery responsibility within each zone.

• Optimized Resource Utilization: teams see where they can provide the most value

• Enhanced Knowledge Sharing: regular working with other teams

• Increased Adaptability and Improved Communication: flexible cooperation structures become the norm

• Improved transparency: common language

• Mitigated Risks: more transparency leads to less risk

• Increased team satisfaction: stable home base, clear understanding of value contribution, autonomous organization.

  
  

Considerations

• This is not a simple transformation and expert help is needed to increase chances of success.

• Mechanisms for managing contextual mobility should be established (team competence profiles, standard business model)

• Build the chapter organization along business model lines where possible ensuring focus on holistic team competence development

• Use minimum necessary alignment (MNA) mechanisms to reduce latency.

• Establish a high-level LACE team to organize and support the transformation.

• Start with a specific area, learn, and adapt

• Understand that this is a sociotechnical challenge as much as an organizational one.

Holistic approach.

Provides a more complete approach to transformation considering human as well as organizational aspects.

 Maximized team value contribution.

Teams work in the areas where they see that they can contribute the maximum value.

Compatible to Frameworks like SAFe®

Compatible to frameworks such as SAFe® extending it with additional structural flexibility and addressing change management aspects.