A new agile Target Operating Model (TOM), the solution for agility, speed and innovation in the enterprise?
«Ground Control to Major TOM, take your protein pills and put your helmet on...», sings David Bowie in «Space Oddity». This is how the project members feel at the start. With a new, agile TOM, organizational agility is to be developed. In order to then be able to adapt to changing market challenges and immediately take advantage of the opportunities offered by new technological innovations.
There are many ways to a new, agile TOM. In the worst case, a procedural model such as SAFe is misunderstood as an organizational blueprint. In the best case, organizations orient themselves to their core value proposition and thus approach new forms of organization instead of a rocket-like transformation «into Space Oddity». A proven mechanism for this approach is Run-Grow-Transform (RGT).
The procedure after Run-Grow-Transform (RGT)
Run-Grow-Transform is not a categorization into organizational units. Instead, for example, IT infrastructure and operations are required for both «run the business» and «grow the business» as well as for «transform the business». The point is to clarify what is needed for what in order to configure an organizational form that can focus on business requirements. This creates the basis for organizational agility.
Agility does not automatically increase speed. Speed in decision making has to do with corporate culture. How much speed makes sense for a company is very individual. Ultimately, it depends on how good you are at quickly recognizing and correcting wrong decisions. The better you are at it, the more speed you can afford.
There is a correlation between agile organizational forms with a fast decision-making culture and their innovative power. If Run-Grow-Transform is applied continuously, the organization is aligned with new business requirements. The innovative power is strengthened by two factors, among others: On the one hand, by the organizational ability to recognize market developments and changes in customer preferences and, on the other hand, by taking advantage of new technological opportunities.
How do you recognize an organization that is agile, fast and full of innovative power?
So you can better classify your current location on your own journey of agile transformation and don't end up «lost in space» like Major Tom.
Read the full article by our expert and Managing Partner Peter Graef. Published in C-Level magazine 4|2018.