Change

Lean Change Management ajuda na Transformação Digital?

In a macroeconomic scenario of timid growth expected for the coming year and an increasingly dynamic and demanding market, a volatile, uncertain, complex and ambiguous environment, the use of traditional methods, both in projects and in day-to-day activities, they no longer bring satisfactory results. That is why large companies are using Agile Transformation as a strategy, in a world where "culture devours strategy for breakfast".

It is not difficult that you have already asked yourself how to reinvent yourself, what are the philosophies, methods and practices that have been adopted by organizations, which antidote can lessen the pain of change. In this article, I would like to address some themes that clarify this path.

I will summarize unpretentiously that Agile is a set of practices explicit in a manifesto written in 2001 by IT professionals based on 12 principles and four values ​​(it has its roots in XP - extreme programming for software development; Scrum - Agile methodology for management and planning software projects, and FDD - feature-driven development) and so on.

Lean can also help with Agile Transformation. The term emerged in the 1990s, based on the Lean Manufacturing of the Toyota system, after World War II, and evolved until the 1970s, focused mainly on minimizing waste and continuous improvement.

These philosophies have common and practical characteristics from which we can extract the best and adapt them in strategic and tactical areas, not only operational. And, more than that, not only in manufacturing or technology, but also in several segments and processes, as long as there is no attachment that philosophy can only be applied to software, since the agile transformation can be for the organization as a whole.

Large companies from around the world have been undergoing transformations to adapt to a new market and using agile transformation for this. We are experiencing a new industrial revolution, the so-called Digital Transformation, migrating from strategy to operation.

An MIT survey shows that agile organizations grew 37% faster and generated 30% higher profits than non-agile companies. Also from emerging practices using Agile at scale, the SAFe framework enables this transformation at the portfolio level. There are countless cases, we can talk about a 20% to 50% increase in productivity, time to market, 30% to 75% faster, 50% reduced defects, among other benefits.

Why change? Standish research shows an impressive number: 31.1% of projects will be canceled before they are completed. Other results indicate that 52.7% of the projects will cost 189% of the original estimates. With success, the average is only 16.2% for software projects that are completed on time and on budget, and of these 73% with the requirements originally defined. In other words, months are spent on approvals and planning, and when the product is finally delivered it may not make as much sense, or worse, no sense at all.

It is time to prepare for the countless technological changes that lie ahead. But reflect: What is your vision for the future? Airbnb, Uber, Spotify are already in the present and are competitors of your company today. As inspiration for change Jeffrey Immelt, chairman of GE says that "the biggest mistake is not to move", and Einstein has a famous phrase: "insanity is to keep doing the same thing and expect different results ...".

How to achieve this agile transformation? Change of mindset. But there is no magic formula. There is a journey to be taken. It is necessary to experiment and adapt to changes. It is simply time to rethink how to satisfy our customers by delivering products and services.

We highlight below five topics that I consider vital for any Agile Transformation process to be conceived with a minimal risk of failure:

1 - Prioritize your portfolio: Define your vision of the future. At the strategic level, be clear about the vision, the economic scenario and its strategic drivers, and classify them: what will bring revenue, what will reduce costs and what will give you competitive advantage and continuous improvement, if your run is the case the business. Assess the cost of waiting time, don't forget the risks, prioritize what is essential and generate value faster.

2 - Restructure: Yes. Your company will change, the bimodal model may cease to exist with the process, or not, everything depends on the scope of the change, but new roles will emerge for sure. There are examples of using the structure in squads, tribes and sections. We must get off on the tangent of functional barriers and focus on delivery by value. But first, experiment, understand the impacts, especially on the organizational culture, make mistakes, learn, stay strong and continue!

3 - Communicate, communicate and communicate: Transparency and the board aligned and committed to Agile Transformation are critical success factors. Use visual and interactive resources so that everyone is truly part of the change. Establish primary ceremonies, assess adherence and make necessary adaptations. Make maximum use of visual information radiators (canvas, panels, kanban).

4 - Focus on people: The employees of this generation are demanding and intend to work in flexible organizations, with processes working perfectly. When they feel they are the owners of change, they will be more satisfied. Command and control no longer work. Trainings are a fundamental part of this process. Long approval processes only take your valuable time, time that you could be devoting to strategy. The human resources area has become an ally and also a transformation agent, so count on it. Management is now Management 3.0. Exercise listening. And work with your HR team to develop the skills expected of future professionals in your team.

5 - Learn and make adjustments: Simplify, reduce bureaucracy, think like our good old PDCA (plan, execute, check and adjust). Have feedback loops and quickly trigger lessons learned. The success of lean startups is there: experiments, feedback and quick adaptations. Define leading and lagging metrics (past and future performance), you can perform an initial round and repeat it later to compare how far it has evolved.

Any change will change the status quo, and when leaving the comfort zone a valley or drop in production will have to be overcome in order to achieve new personal and professional behavior. If you still felt like me, and saw that change is necessary, you believe that the current model has already reached the limit of its empirical validity, or your organization is undergoing digital transformation, keep in mind that Lean Change Management can help you in the Agile Transformation journey, especially in the cultural aspect. Thus, your organization will have the capacity to adapt and respond quickly to the increasingly dynamic and demanding market, without radical changes.

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