The Effective Enterprise of the Future
For a few select organizations the enterprise of the future is here today. It is no longer a question of what to do, it’s a question of getting there. The goals of the effective enterprise are:
Achieving this requires the best of both the Lean and Agile mindsets. Agile focuses on the creation of self-organizing teams that create value for the customers they are responsible for in a semi-autonomous manner. Lean suggests taking a systems-thinking point of view and looking at the entire value stream.
The result is connectivity between the strategies of the business to the teams creating the value. The most effective arrangement is for teams to be accountable to only one business stakeholder. In this way when a requirement comes in they can work on that and get it done. This not only enables teams to build new functionality without interruption, it greatly simplifies the budgeting process. In this scenario the business stakeholder requests some functionality to be built, technology builds it and then the business stakeholder requests something else. In order to deliver value quickly, smaller chunks of value can be requested. This results in a stream of small items being built and released. If quick releases are not desired, they can be held back, but their quick validation can be used to get feedback on what they are building.
This connectivity enables budgeting to be done on a frequent, even continuous basis. As business increments are built and released the next most important business increment can be started and worked on. The budgeting process can range from continuous to quarterly. Teams have end-to-end responsibilities for products and services. They collaborate within a network that supports them. They use Team-Agility tailored as appropriate for them. Shared service teams and DevOps are integrated into this network.
The ability for teams to work in a semi-autonomous way increases innovation while accelerating development. It also enables taking risks with new products since it can be determined if they will return value quickly. This enables the company to innovate in a safe manner and get low loses on bad ideas but great returns on good ones.
The next FLEX course is currently being scheduled in August in southern Orange County, CA. If you want to learn more about FLEX you can take an online course at the Net Objectives University. If you want to learn about how to adopt FLEX in your organization please contact the author, Al Shalloway