Should Executives Be Embracing Agile Principles Too?

[NoBody]

Steve Denning was director of knowledge management at the World Bank from 1996 to 2000, and now consults with organizations around the world on management and innovation. And in 2018 he wrote the book The Age of Agile . Now he’s arguing in Forbes that "As the global coronavirus crisis is forcing many organizations to act with unaccustomed speed, organizational agility has suddenly become a necessity.

“The crisis is also making obvious that institutional agility means much more than having lots of agile teams scattered around the organization.” “To create a truly agile enterprise,” as the article, “The Agile C-Suite”, by Bain consultants Darrell K. Rigby, Sarah Elk, and Steve Berez in the May-June 2020 issue of Harvard Business Review (HBR) points out, “the top officers — most, if not all, of the C-suite — must embrace agile principles too.” Agility of course isn’t new. What’s new is to see the C-suite embracing it.

The contrast in stock market performance between firms that have been embracing Agile principles at the senior level for a number of years — such as Microsoft and Amazon — and two firms that have spurned Agile principles at the senior level — such as GE and IBM — is dramatic…

It is important that Harvard Business Review is highlighting the role of the C-suite in business agility. Wall Street has already got the message. Although the U.S. economy shrank at a 4.8% annual rate in the first quarter and suffered from 30 million unemployment claims, the stock market finished its best month in years. Why? The answer to the paradox is simple. After a devastating collapse the previous month, investors poured into the “chosen few.” Firms that have demonstrated business agility by taking advantage of technological possibility — Amazon, Apple, Facebook, Google and Microsoft — have become the largest and fastest growing organizations in the world, while many others struggle.