Being “Agile” has become one of the best misunderstood and misinterpreted concepts of the last five years. Most approaches lack a deeper understanding of the problems “agile management” was designed for: the constantly increasing complexity and uncertainty of businesses in digital, that is: exponential times. This presentation introduces the need for and concept of becoming a responsive business and outlines key lessons derived from our own transformation into a responsive, radically user and future driven, self-organized and agile company.

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Becoming Agile / Responsive
The Need For And PathToTransforming For ExponentialTimes
Dr.Andreas Brill. December 2016

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A key factor for the success of digital champions is their different mode of running and managing
their business.

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One term describing the new management mode is being agile.
Everybody’s talking about it. Few do it. Even less can.

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If one wants to embrace the concept of agile ways of working, the agile manifesto is the best
source to get started. It reveals a fundamental shift in the focus and ways of working.

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The key question is:
What has triggered this
shift?
What has created the
need for new ways of
working?

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The concept of agile ways of working was created because software development was broken. It
was broken, because it was not capable of coping with the complexity and dynamics of digitization

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So, software needs to be built in agile ways.
But:
Why do companies
– apart from their
software teams –
need to bother?

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Organizations are broken, too.They ‘re broken for the same reasons software development is:
they’re not capable of coping with the complexity and dynamics of digitization.

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Embracing the agile concept requires...
... a deep understanding
of the logic and
dynamics of
digitization...
... and its impact on
managing businesses.

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The logic of digitization
... and its driving forces....

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The case of the music industry:A brilliant utilisation of the capabilities of digital technology
replaced a brilliant business model.And disrupted the entire industry.
A superior und incredibly successful business
model...
... completely loses its relevance, once a much better solution has
been established in the market!

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The key point of the story is:This was only the beginning of a series of successive leaps of market
transformation that made all winners lose it all.
endless shelves
access to all products,
worldwide
digitization and
miniaturization of the
product itself
the access to all songs from
any digital device becomes
the product

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For Amazon, the hard felt insight to this logic of „the winners losing it all“ has kicked off a
completely new path. It made Amazon become a business that is responsive to constant market
transformation.

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Embracing digitization means embracing... ... „why all the winners
lose it all“!
(Even Amazon! Even Apple!)

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Digitization triggers the logic of all winners losing it all through the exponential dynamics of its
technological foundation...

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... and through the transformative power of the global connectedness of all digital information, on
the other hand.
+ Blockchain!

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Building a business that is responsive to the dynamics of successive transformational leaps is THE
key challenge for any business in the digital era.
exponential times
successive transformation
challenges
attacking one‘s own business model
legacy businesses
focus on growth
disruptive changes breaking industry rules focus on stability and reliability
shortened cycles of innovation permanent beta mode
unpredictable developments agile, open, networked focus on optimization
changes in consumer behavior purpose driven/consumer obsessed sales driven marketing
paradigm of information digital skills paradigm of the physical product
uncertainty antifragile, responsive robust
focus on efficiency and risk avoidance

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The concept of a
responsive business

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Responsive businesses are driven by four key principles that set them apart from other businesses.
How do we enable our teams to
create, test and continuously improve
solutions that are 10 times better
than anything that‘s out there in the
market?
Which solutions have the
potential to shake up an entire
industry and make all current
competitors look stupid?
What will be technologically
feasible in the next 5 to 10
years that is impossible as of
now?
Which solutions would be ten
times better for our
customers than anything that
exists in today‘s market?

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The four principles are deeply rooted in the day to day business of responsive companies...
Special Projects / Labs Day to Day Business

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... and they are supported by structures, processes, tools, rules and cultural pillars that trigger
responsive ways of working.

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The huge challenge of becoming a business
that is agile and responsive to exponential
change:
... rooting the four key
principles of
responsiveness in ones day
to day business!
... creating a governance
system that triggers agile
ways of working!

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In other words:The challenge is transforming into a next generation businesses.
How can you do that?

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Many managers and consultants will say: Build a startup with super young employees.
But practically all of them fail. Sooner or later...
Building startups is complicated... ... most don‘t take off at all... ... and practically all fail sooner or later!

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The dividing line between legacy and next generation businesses is not between startups and
traditional companies. It’s between companies capable of constant and radical self-renewal and all
others.

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The good news is: Constant self-renewal is easier than ever. Because the (digital) tools, processes
and data facilitating responsive work exist. So: it CAN be done!

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The bad news is: It’s tough. Because the routines, skills and capabilities of legacy businesses are
designed for the opposite of constant and radical self-renewal.

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The fact is: It must be done. No business can afford not to build the muscles for constant and
radical self-renewal.The sooner one starts, the better.

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While getting started is crucial, it is just as important to keep the key challenge of solving the
transformation paradox („the change monster“) in perspective at any stage of the process.

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How to become
responsive and agile

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We have transformed our own company and have supported various businesses on their path to
becoming agile. On this path, we have learned a lot...

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Lesson 1: Before introducing agile ways of working one needs to experience them oneself.

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Lesson 2: Unleashing the power of selforganized ways of working requires the most rigid
framework.

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Lesson 3: Becoming agile requires the full attention and committment of the managers who must
cease to be the managers they used to be.

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Lesson 4: Becoming agile requires building the teams and skills a company cannot have.

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Lesson 5:The transformation into an agile company must be managed in an agile way.

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Lesson 6: Becoming agile requires starting small and applying it to the entire pitch right away.
Starting with a key need... ... while keeping the entire picture in sight!

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Lesson 7: Noone ever gets there.That’s why everyone needs to start right away...

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Thank you!
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