Agility to action: Operationalizing a value-driven agile blueprint

To successfully transition to an agile operating model, business leaders should focus on four questions.

Moving beyond individual teams to implement an agile operatin model requires that missions are loosely coupled but tightly aligned; teams should be able to execute their missions with minimum dependencies while ensuring the overall organization is geared toward generating value. Establishing such an operating model is intimately tied to the organization’s strategy and how it creates value. The process involves a blueprinting phase, in which an organization’s means of generating value for customers are mapped in a series of value streams, against which the operating model is then structured. While most organizations can design a logical blueprint, they struggle to understand and manage its implications.

A blueprint should segment teams based on how they create value—a step many companies overlook in their haste to launch pilot projects. Teams that are central to value generation and lie on the primary organizational axis stand as first among equals. These core teams lead the way for the rest of the organization by setting the priorities that can help accelerate value creation, with the other teams enabling it. The definition of these teams depends on the organization’s industry, situation, and strategy. In a retailer that views supplier negotiations as a strategic differentiator, for example, these core teams might be aligned with merchandising. In another whose strategic differentiator is in-store experience, the teams might be focused on formats. This article explores four questions an agile organization must answer to develop an effective blueprint, put it into action, and create the most value.

Further reading: https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/agility-to-action-operationalizing-a-value-driven-agile-blueprint