Vincent van den Boogert , chief customer officer at ING Netherlands, said during an event organized by Xebia, about the lessons learned from the organization-wide transformation program, which undoubtedly - will end up as a case study in many textbooks - regardless of the final results. ING's management went to Sweden and was inspired by the open model of Spotify, but also looked at companies like Google and Zappos. They tacked and went energetically to work to change the organizational disruptive.
In addition, we presented ourselves to the results of the Digital Acceleration Survey 2016 represents the work of more than 200 large and medium-sized organizations. ING case and the results of the study provide great insights about agile reorganizations and digital gear. For inspiration, we put three remarkable things in a row.
Purpose, along the axis of customer impact
Digital excellence is not achieved by performing high on one specific dimension. Still, it usually starts with a clear answer to the " why? 'question. As a purpose , vision , strategy and goals are clearly formulated, the efforts and energy of the organization also potentially lead to better results.
In this context it is striking that almost a quarter of respondents Digital Acceleration survey shows himself to see this dimension as a "digital beginner (the lowest possible score). No clear purpose and / or a digital " me too " strategy forms the basis for this assessment.
Each autonomous team formulates a clear purpose, from the perspective of the impact for themselves which one wants to make upon customers.
It can be different. ING has its purpose and vision sharpened for the entire organization, but is in this area even further. Each autonomous team (a ' squad ' called) formulates a clear purpose for themselves, as far as possible from the perspective of the impact it would make on customers. Any decision you take within the team, then always check question is to what extent this maximum contribution to the stated objective regarding customer impact. So they create teams with a super-purpose, including super focus on the customer.
Alignment enable signals autonomy
Agile works and autonomous working teams often conjure up an image of teams that complete independence and freedom ( autonomy ) are taking all possible decisions. Board and management, however, are often accustomed to exercise management and control ( alignment ), certainly increase as the strategic interests. In that context, alignment initially mostly at odds with autonomy.
Picture source: Henrik Kniberg
The study evaluates 12 percent of respondents as " world class " in terms of a highly empowering culture "(the highest possible score). At the same time evaluates 13 percent as ' world class ' when it comes to a ' top-down, bottom-up and adaptive approach ' regarding (digital) goals and KPIs. A high self-assessment score, especially as ' world class ' really is defined as the standard worldwide.
A key insight from ING is also the alignment and autonomy are not diametrically opposed. Indeed, their experience shows that alignment is correct autonomy as possible. Asked teams have more direction to the board and management to be themselves able to make the right choices. Nowadays determine the " tribes " (a group consisting of multiple squads) Quarterly what and when they will deliver just the next three months.
Alignment and autonomy are not diametrically opposed. Indeed, experience shows that alignment is correct autonomy as possible.
This planning process is fed from the management by establishing six or seven priorities for the entire organization. At the same time, the process is completely transparent, both vertically (from management to the tribe and individual squad) and horizontally (between different tribes). In this way, questioning various tribes and / or squads together precisely why certain choices are made and how one tribe could take appropriate account (in planning or deliverables ) with the spearheads of another tribe. Alignment enable signals autonomy.
Moreover, ING regarding the transformation also greatly inspired by, among other things Netflix and Zappos for all " hand-overs to remove 'between departments obsessive. ING realize increased efficiency and effectiveness by teams to operate more autonomy by pushing for ' zero hand-overs .
The design can be good, but adjustments make it great
Respondents to the survey rated themselves predominantly as a more traditional than a highly adaptive organization. The figures clearly show that many organizations are more traditional furnishings. Although more and more organizations from a 'goal' or 'purpose' leave and organizations to a lesser extent are pure 'profit-driven, there's many organizations still talk of' hierarchical ',' control ',' planning 'and' IT legacy . In most organizations, more needs to change before there can be an agile organization.
Feature of more agility , however, is that an agile organizational change could expire. ING has its own ' Agile at Scale defines' model before they started the organization transformation. Part of this transformation is that the model can evolve themselves in an agile way. The model itself is also versatile and flexible. It is even the explicit expectation that months and even years after the start of the transformation still adjustments to be made to the agile model.
The Orange Code
To your customer really central to ask and to respond to the wishes and needs of the market, you have to arrange your organization in a different way and make it work. But agile work is not only to set up another structure; the change of the culture is just a critical issue.
Which culture plays the leading role in the transformation at ING. There is a new internal culture code drawn up, together with the staff: " The Orange Code '. ING chose to implement this culture through at once and to work according to the new way. All employees had to apply for a new role to get a new place in the agile organization. All management layers disappeared.
Agile works is not only setting up another structure; the change of the culture is just a critical issue.
The new-style tractors are not top-down managers, but are part of the team and work with. In appointing staff critical roles in the new agile organization (eg tribe leads , chapter leads and agile coaches ) the emphasis was therefore on people who wanted to embrace this cultural shift and were able to convey to their new teams.
Agility and flexibility are fortunately not confined to small, new, trendy businesses. Also, if established banking is the movement for change so possible. A culture should not be forgotten or underestimated, however. Your business and technology architecture can be so thoughtful and high-level, only with the right motivation and the right mindset actually change a chance of success.
Ultimately, however, an organization can never be 100 percent ready for a change or transformation. So make the change. And then make it work.
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