The ultimate goal for organizations is to become “live enterprises” – fluid, dynamic, and customer-centric entities. By adopting new organizational structures and forms, focusing on customer journeys and product thinking, and continuously refining their processes and practices, companies can navigate the challenges of the digital age and set themselves on a path to long-term success.
Organizations must embed agility and sentience in their value streams to thrive in the digital age to improve responsiveness, adaptability, and predictability in delivering value to customers. They will do so with the next wave of “extended digital and organizational transformation” and start with the following concepts.
Agile Pods, Cross-Functional Teams, Cross-Companies Teams
1. What are Agile Pods?
Agile Pods are small, self-organizing teams of individuals with diverse and complementary skill sets. These teams work together to achieve common goals, usually centered around a specific product or project. Each member of an Agile Pod is expected to contribute their expertise, fostering cross-functional collaboration and rapid decision-making.
Members of the agile pods can be internal hires, external teams-partners companies, and individual contractors.
2. Benefits of Agile Pods
- Improved collaboration and communication
- Faster decision-making and response to change
- Greater autonomy and ownership
- Enhanced motivation and accountability
- Higher efficiency and productivity
1.3. Implementing Agile Pods
To successfully implement Agile Pods, companies must:
|The old approach||The new approach|
|Start with a single project or product||Start with an organization-wide program|
|Define clear objectives and key results||Define clear objectives and key results|
|Appoint dedicated Pod leaders||Appoint dedicated Pod support managers/coordinators|
|Encourage autonomy and innovation within the Pod||Drive innovation with pod contract deliverables and autonomy|
|Continuously evaluate and refine the Pod structure||Continuously evaluate and refine the Pod strategy and business needs|
The Future of Workplaces with Customer-Centricity and Product Thinking
Product thinking is a mindset that prioritizes the end value delivered to customers, rather than merely completing tasks or projects. By embracing product thinking, organizations can ensure that their efforts align with customer needs and expectations, ultimately driving business growth and success.
The focus on customer-centricity is vital. This approach involves understanding and addressing customer needs throughout the customer journey, from initial engagement to post-purchase support.
The Transformation of Talent Management and Workforce Composition
1. Aligning Talent with Value Streams
In future-ready organizations, talent management must evolve to align with the flow of value. This involves reorganizing teams around customer journeys, value streams, and product-centric autonomous teams, fostering cross-functional collaboration and efficiency.
2. The Changing Workforce Composition
The composition of the workforce is changing, with an increased demand for niche skills, decentralized structures, and diverse talent sources. Companies must adapt their talent acquisition and management strategies to accommodate these shifts and ensure the optimal allocation of resources.
Platforming the Ecosystem for Enhanced Innovation and Efficiency
Developing business platforms and standard capabilities can help organizations fast-track product launches, drive innovation, and maintain system stability. By platforming their ecosystems, companies can create new services, increase speed and efficiency, and achieve economies of scale.
Governing on Value to Drive Business Outcomes
Organizations must adopt value-based governance models to ensure alignment with strategic objectives and drive desired business outcomes. This involves implementing methodologies like Objectives and Key Results (OKRs) to set ambitious goals, measure progress, and foster a culture of accountability and continuous improvement.
The new organizational structures and forms will revamp all we know about working and human resources practices. By adopting forward-thinking approaches and embracing customer-centricity, product thinking, and agile methodologies, organizations can thrive in the dynamic business environment of the future.