Organizational Change

Agile organization designs

Your business has grown considerably over the past years and your success depends on providing outstanding services to your customers and flexibly adapting to their needs. Now you are at the point where you are asking yourself how you can continue to deliver these results while your organization is growing and might need more structure than before.

 

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What Is An Agile Organization Design And Why Should You Care?

An agile organization design describes a mode in which business is conducted. It reflects a form of leadership and core competency that creates an organization built for continuous delivery. Why would you want to adopt an agile design? Simply put, because of its success in the marketplace. In product development, where it was first embraced, Agile emerged as a best practice for releasing new products successfully at a much faster pace. The concept soon spread from there. It is undeniable: In a volatile business environment, you simply cannot do without a flexible and adaptive organization design. 

 

Traditional Organization Designs

 

  • Focus on assets and standards
  • Hierarchical organization design
  • Traditional organization chart
  • Managed organization
  • Chain of command structure
  • Learning and Development Initiatives
  • Motivation through compensation and promotions
  • Fear of change
  • Focus on internal developments and corporate identity
  • Focus on designs that preserve the corporate identity
  • Bureaucratic pathways
  • More effort to achieve overall consent
  • Incentives that drive units to be effective as silos
  • Designed to avoid risks
  • Changes require a deep cut into the corporate DNA
  • Work is structured in bigger chunks
  • Responsibilities are mostly managed by the top

Agile Organization Designs

 

  • Focus on opportunities and capabilities
  • Flat hierarchy
  • Self-organization
  • Creative organization charts (to mirror the brain, a holon, etc)
  • Flexibly structured around roles and projects.
  • Designed to create ownership and engagement
  • Motivation through engagement and intraprenerial culture
  • Embracing change
  • Strong focus on the market and customer satisfaction
  • Focus on the simplest and most effective organization design.
  • Innovative pathways
  • Strong drive for achieving a "yes".
  • Incentives that drive units to exchange ideas and work hand-in-hand
  • Designed to embrace calculated risks as opportunities
  • Change readiness is the norm
  • Work is viably broken down into flexibly interacting pieces
  • Responsibilities are managed by smaller autonomous working cells


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