When working with organisations and clients, this is my reasoning and a suggested approach
For the sake of brevity, I won’t dive into detail here. Neither am I suggesting this a one-size-fits-all approach; this is a generic approach that should be customised to the client.
- In order for an organisation to thrive it needs to establish (or reaffirm) a clear market differentiator that appeals to their customers/clients.
- The market is changing rapidly. There’s plenty of emerging threats and opportunities, some are known, some are unknown(able).
- The organisation needs to identify the cash cow operations & services they need to be maintained and improved; these drive revenue. This creates one side of what’s termed the Ambidextrous Organisation.
- They also need to retire operations & services that no longer drive revenue or are no longer a strategic fit.
- Critically the organisation needs to seek new operations & services for new or existing customers/clients. This creates the other side of the ambidextrous organisation. In reality, only a few ideas are credible to scale to become the new cash cows.
- Points 3, 4 & 5 should establish a continuous balanced flow of initiatives. This enables the organisation to continuously sense & respond to ensure ongoing market fitness. This creates a Lean Enterprise
- Especially for Point 5, since there’s a huge amount of uncertainty, the ways of working, organisational structure, success criteria and leadership style is different to what’s needed for Point 3.
- To seek new viable operations and services, the organisation needs to be especially outcome driven, with flexible ways of working, an experimental approach supported by leaders, close co-discovery with stakeholders, close collaboration with customers/clients, where potentially many strategies and solutions are vetted.
- This ability for the organisation to sense and respond is in keeping with The Agile Business Consortium’s definition of Business Agility.
- The Ambidextrous Organization by Charles A. O’Reilly III and Michael L. Tushman
- Lean PMO: Managing the Innovation Portfolio by Barry O’Reilly
- The Agile Business Consortium’s definition of Business Agility
Thanks to Luca Minudel for helping me strengthen this article.