The goal of agility measurement is to keep track of the most value-driven factors to lead business success.
Agility enhances interaction, iteration, improvement and collaboration, so you build a lot of trust and respect by letting people come up with what works best for them, also improving business maturity ultimately.
How much does the organization's agility affect what the organization wants to achieve? The world keeps on turning and spinning around you and there will be new technologies, new approaches, new tools, new people that will have an impact on your team. Agility is not only the ability to create the change, but also the capability to adapt to the changes, organizational agility should be defined as the speed in which the organization can enable the enterprise's goals and objectives. Agility within and of itself is a strategy. That means organizations need to proactively explore opportunities, diagnose their problems, make choices, and set actions to fix issues and generate value. A balance of strategy putting in place the building blocks and the architecture that enable you to be agile is critical.
The organization becomes more resilient with a high-level of digital agility and maturity. Nevertheless, eliminating waste and continuously improving should always be ongoing objectives even if you obtain sufficient agility since this can be easily lost as there are so many variables in the business environment. Organizations with agility can respond faster to the marketing changes, prioritize right, grasp opportunities to generate revenue streams or optimize cost. However, sometimes, the more you improve in one area, the more you will expose weaknesses in others. It’s also important to keep the big picture in mind, ensuring that business as a whole is superior to the sum of pieces.
How effective is your program of agility measure at creating awareness? Agility is a must in today's hyper-connected world where the customer expects everything on-demand and cost-effective. No way you can get that doing anything manually and especially quality checks and you cannot compromise on that. Agility is the “soft” trait of corporate maturity. Perhaps there’s no magic formula to calculate the exact value Agile brings in, or the formula can be changed depending on the organization and on the current strategy to express the direction an organization wants to develop itself. Culture is the number one barrier to an Agile or overall digital transformation. Measuring culture will help organizations understand “change inertia” or “change fatigue” and speed up agile adoption.
From an agile perspective, the direction is more crucial than an absolute destination. Because often the team cannot have an absolute destination. You have a vision about where you want to go. You may keep changing your destination based on the new learnings. For creating awareness of value generated by improving business agility, the management needs to ponder: Can we launch a new product/pricing offer quicker than our competitors; can we better adapt organization to a change in the business environment. Can we adapt to new regulations easily? To measure culture variables, the pertinent question to answer is "How agile are we?" Organizational agility is only achieved when the organization changes promptly, runs a holistic organization with one set of strategic goals and objectives, starts to think how best to achieve those goals, and recognizes that there is always room for improvement.
How effective is your program of agility measurement at creating value? In traditional command and control organizations, agility is very hard to grow into fruition because they aren't built on trust, and there's often a great tension between the business management and the delivery teams. If you want to measure agility, you need to be able to measure how well your organizations can respond. The goal of agility measurement is to keep track of the most value-driven factors to lead business success. Overly rigid organizational structures - fixed plans, processes, and procedures cause business to resist external change up to a point, but eventually the stresses become too large and failure is inevitable. Some of the other key measures of agile effectiveness are Creating Value, Timely delivery, Teamwork, and Productivity for the work done.
There is a direct correlation between product/service value and agility. In most organizations, "value realized" is based on enhanced competitive advantage, and is usually measured in financial terms. But it’s also important to measure customer value, reputation value, societal value as well. The legitimate question is what to measure to ensure you will end up with satisfied customers. In reality though, all the metrics may point in the right direction, yet productivity and performance may trend in other directions. What needs to be injected into the daily life of an organization may require more pointed investigation. Specifically looking for aspects of collaboration, knowledge sharing, and trust amongst other things, that relate to, but would not be a complete sampling of, organizational health.
Regardless of which flavor of agility practices you explore, you need to follow agile principles, people over process, change over documents, make continuous adjustments, pick the right performance indicators to measure and measure them right to unlock performance and improve organizational maturity.
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