Summary: "The Five Trademarks of Agile Organizations"

The McKinsey and Company article “The Five Trademarks of Agile Organizations” provides a primer for understanding the value Agile methodology brings to an organization as they shift from program management paradigms such as “waterfall” and “stage gate” project-management approaches. The article highlights how disruptive trends have challenged the old paradigm and compares the new organizational paradigm to living organisms that “mobiles quickly, are nimble, empowered to act, and make it easy to act…like a living organism.”

This article highlights five trademarks of an agile organization with clear examples of the mindset shift going “From…” the traditional paradigm “To…” an agile paradigm:

North Star embodied across the organization

Agile organizations are intensely customer-focused and committed to creating value with and for a wide range of stakeholders. To bring focus to the wide-ranging opportunities, having a “North Star” provides a shared purpose and vision that helps people feel personally connected. Tools such as customer journey maps can assist to identify opportunities and gain customer insights. Senior leaders of agile organizations bring coherence and “clear, actionable, strategic guidance around priorities.”



Mindset shift

From: “In an environment of scarcity, we succeed by capturing value from competitors, customers, and suppliers for our shareholders.”

To: “Recognizing the abundance of opportunities and resources available to us, we succeed by co-creating value with and for all of our stakeholders.”

Network of empowered teams

An agile organization “comprises a dense network of empowered teams that operate with high standards of alignment, accountability, expertise, transparency, and collaboration.”

Mindset shift

From: “People need to be directed and managed, otherwise, they won’t know what to do—and they’ll just look out for themselves. There will be chaos.”

To: “When given clear responsibility and authority, people will be highly engaged, will take care of each other, will figure out ingenious solutions, and will deliver exceptional results.”

Rapid decision and learning cycles

Continuous rapid iteration of thinking, doing, and learning fuels the organization’s ability to innovate and operate in an agile way. Teams produce a minimal viable product (MVP) or deliverables that can be delivered quickly in two or three week “sprints.” Teams hold frequent check-ins to share progress, remove barriers and ensure work is kept on track. Agile teams are fundamentally performance-oriented (outcomes-based). Importantly, continuous learning and improvements are a constant part of the Agile ecosystem.

Mindset shift

From: “To deliver the right outcome, the most senior and experienced individuals must define where we’re going, the detailed plans needed to get there, and how to minimize risk along the way.”

To: “We live in a constantly evolving environment and cannot know exactly what the future holds. The best way to minimize risk and succeed is to embrace uncertainty and be the quickest and most productive in trying new things.”

Dynamic people model that ignites passion

People are the center of an empowered and engaging agile organization. Leaders offer “shared and servant leadership” in that they do not direct and control; instead, they provide vision, empower, and coach people to collaborate and deliver exceptional results. “Cultural norms are reinforced through positive peer behavior and influence in a high-trust environment, rather than through rules, processes, or hierarchy.”

Mindset shift

From: “To achieve desired outcomes, leaders need to control and direct work by constantly specifying tasks and steering the work of employees.”

To: “Effective leaders empower employees to take full ownership, confident they will drive the organization toward fulfilling its purpose and vision.”

Next-generation enabling technology

Agile organizations integrate a range of next-generation technology development and delivery practices into the business.

Mindset shift

From: “Technology is a supporting capability that delivers specific services, platforms, or tools to the rest of the organization as defined by priorities, resourcing, and budget.”

To: “Technology is seamlessly integrated and core to every aspect of the organization as a means to unlock value and enable quick reactions to business and stakeholder needs.”

Read more about these five trademarks of the Agile mindset.