An agile organization are quick in responding to changes in the marketplace or environment. They do this by adopting the right strategies, dividing responsibilities and structuring teams in the right way.
Agile Organization meaning and definition
Agile organizations are able to adapt and react quickly to changing circumstances. They do this being closer to the customer and not just being short term profit focussed. It is made possible by empowering employees, organizing the teams properly and enabling them using technology.
What are the characteristics of Agile organizations?
Dedicated focus on the customer
Empowered and a network of teams
Well defined purpose of the company
Open communication
Environment of fast learning and decision making
Integration of technology and adoption
Agile organization structure
Traditional organizations operate on a hierarchical. Decisions flow top down to bottom with each successive layer having less decision making ability and more focus on execution. This does work in well established industries like oil and gas and some manufacturing.
Agile organizations instead focus on creating small teams and empowering them to take fast decisions and learn quickly. A famous example is Amazon's 2 pizza teams, where a team has complete ownership over a problem and does not contain more than 5-10 people.
How to create an agile organization?
Have a clear vision and share it with your employees.Focus your efforts on creating value for your customers.Create teams of empowered individuals.Introduce and integrate new technology.Promote open and transparent communication throughout your organization.Invest in your employees and encourage continuous learning through experimenting.Outline simple rules for collaborating, learning through experimenting, and decision-making.
Examples of agile companies
Most tech companies today try to be agile. Examples of these include:
- Meta
- Amazon
Apart from these, the previously traditional companies like General Electric and Vodafone are also trying to implement agile practices inside their companies.
Agile vs traditional companies
The biggest difference between traditional and agile companies is how easy it is for them to respond to changing market conditions. Agile companies prepare and are ready for the change, because thats part of their day to day.
Traditional companies on the other hand dont need to do this as they are part of industry which isn't changing that frequently. Examples of such industries include Oil & Gas etc.
