New ways of working
Agile working promises to make companies more dynamic. flow reports on how this is happening on the ground, providing insights from Deutsche Bank Corporate Bank’s own agility journey together with that of the treasury team at software provider SAP
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s geopolitical and economic shocks such as the Covid-19 pandemic and the Russia/Ukraine conflict become more frequent, nimble reactions to new market conditions have become a hallmark of successful companies. Firms that can quickly relocate supply chains, adjust investment decisions and adapt their offerings to changing customer needs (such as expanding online sales channels during lockdowns) gain competitive advantage. In general, this is nothing new. In 1988, US business management author Tom Peters observed, “Unprecedented volatility … demands continued quick response, since the average enterprise no longer knows who its future competitors will be, next month’s exchange rate or what new use of technology is about to make obsolete half its product line and/or distribution system.” However, Covid-19-accelerated
digitalisation of transaction flows and the emergence of start-ups have increased the pressure on incumbent market players. The ‘just do it’ approach of the former can make the latter appear slow and cumbersome.
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Enterprise agility gains traction Given this new landscape, more firms are questioning traditional project management methods and 'enterprise agility' is gaining traction among human resources teams and organisational behaviour consultants. A global survey conducted by McKinsey in October 2020 showed that only 25% of the 2,190 organisations that responded had no plans to implement agile working in their organisation, while 44% are currently engaging in agile transformation. So, why do agile methods outplay
traditional ways of management? “Agile at scale is a way of working – and thinking – that can take organisations from rigid to resilient. It’s more collaborative, more open, more creative, and more efficient than other models,” notes the Boston Consulting Group (BCG). On its website, BCG asks, “What if you could unleash that power, release what's inside, talent, teamwork, creativity, the courage to experiment and learn and get better?” The concept of enterprise agility originated in the software industry to speed up development and launch times
of new releases. But nowadays, agility initiatives can be found right across industries – from companies such as Dutch beer brewer Heineken to American pharma giant Pfizer – that are embracing this. In short:
• Agile fundamentally changes the whole organisation – to transform successfully it needs support from top to bottom
• Agile affects cultures and behaviours – people in charge need to change the way they think and lead, but leaders need to show the way
• Agile takes time – leaders need to stay on track and not slip into old habits
Nevertheless, even though agility has gained popularity over recent years, “few companies have been able to implement enterprise agility." highlights BCG. While hybrid models and pilots are all very well, unless there is enterprise-wide scaling up and consistent support from the top, there is a risk that the benefits will not be realised. Figure 1 summarises some common pitfalls.
Photography: Alamy
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