WITH swift changes in the environment, "agile" has become the buzzword in organisations where they need to meet changing customer demands, adapt to the changes in the market environment, improve processes, and empower employees towards achieving this.
This ensures that the company can respond to shifts, minimize risks, maintain a competitive edge, and ensure long-term success and sustainability. Organisations can adopt several principles to enhance flexibility, responsiveness, and adaptability.
This entails organizations cultivating a culture where employees are open to learning, experimenting, and improving continuously. The organization must foster an environment where team members feel empowered to make decisions and take ownership of their work.
Organisations should also consider adopting agile frameworks like Scrum, Kanban, or Lean to structure their work processes. It should attempt to break projects into smaller, manageable tasks or sprints that allow for quick adjustments based on feedback.
Microsoft successfully made the switch from its old way of doing things to a more modern, agile approach. Instead of sticking to a traditional method, they started using agile techniques like Scrum and Kanban, especially in their software development teams. This change helped Microsoft become more flexible and quicker in developing new software.
They set up an "Agile Center of Excellence" to teach and support teams in using these new methods. This center helped spread agile practices across different parts of the company, making sure everyone was on the same page.
Additionally, Microsoft combined agile methods with DevOps, a set of practices aimed at speeding up and improving the software development process. This mix allowed them to integrate and deliver updates more frequently, improve the quality of their software, and reduce the need for manual work.
Companies can also create teams composed of members from different departments to enhance collaboration and deter them from working in silos. This is imperative to allow for diverse perspectives and look at problems more holistically.
ING Bank started using agile methods by trying them out with a few small teams first. Once they saw how well it worked, they expanded these methods to other departments.
They set up small, cross-functional teams called squads, each focused on a specific product or feature. These squads were given the freedom to make their own decisions quickly, which made the work process more flexible and responsive.
To help with this transition, ING invested in lots of training and support for their teams and leaders. This ensured everyone understood and used agile practices correctly.
As a result, ING Bank saw big improvements: they could launch new products and services faster, better meet customer needs, and work more effectively as a team.
To be agile, organizations should focus on delivering value to customers by regularly collecting feedback and making changes based on that feedback. This approach helps them stay responsive to what customers need and adapt to market changes.
Instead of waiting to release a big update, organizations should make small, gradual improvements to their products or services. This way, they can get feedback faster and provide immediate value to customers.
Amazon excels at being agile by constantly collecting feedback from customers through reviews, surveys, and direct interactions. They use this feedback to make ongoing improvements to their products and services.
For example, Amazon regularly updates their website and app based on user feedback to make them easier to use. They also frequently test and refine their recommendation system to better match customer preferences.
By making these small, continuous updates, Amazon can quickly respond to customer needs and market changes, providing a smooth and evolving experience for users. This agility helps them stay ahead of competitors and drive innovation.
There are several Malaysian companies too that have transitioned to become very agile entities, such as Air Asia, that have shown that they can adapt to changing market conditions. AirAsia is a great example of a Malaysian company that has become agile. When the COVID-19 pandemic hit, AirAsia shifted from just providing low-cost flights to offering new services like logistics, digital platforms, and e-commerce through its AirAsia Digital unit.
The company invested a lot in technology and digital tools to improve how they serve customers, make their operations smoother, and cut costs. By using data and digital solutions, AirAsia managed to stay competitive and adapt quickly to changes in the airline industry.
AirAsia has expanded beyond traditional airline services into new areas such as fintech (BigPay), food delivery (AirAsia Food), and e-commerce (AirAsia Shop), demonstrating its flexibility in exploring new business opportunities.
Another Malaysian company is Grab Malaysia, which started out as a hailing service, it rapidly expanded its services to include food delivery (GrabFood), grocery delivery (GrabMart), and financial services (GrabPay). This diversification has enabled Grab to respond quickly to market demands and consumer needs.
The company consistently gathers feedback from its users and uses the data to improve and expand its services. This customer-centric approach allows Grab to remain responsive to changing preferences and enhance user satisfaction.
It invests heavily in technology, including AI and data analytics, to optimize operations and improve service delivery. The focus on innovation enables the company to adapt quickly and offer personalized experiences to its customers.
In a rapidly changing world, agility has become crucial for organizations to thrive. By adopting agile practices, companies like Microsoft, ING Bank, Amazon, AirAsia, and Grab have demonstrated their ability to adapt to shifting market conditions, respond to customer needs, and drive continuous improvement.
These companies focus on fostering a culture of learning and flexibility, empowering employees to make quick decisions, and leveraging technology to enhance processes and customer experiences. As a result, they have managed to stay competitive, innovate, and sustain long-term success. For organizations looking to remain relevant and achieve growth in today's dynamic environment, embracing agility is no longer optional but essential.
* The writer has an MBA from the University of Strathclyde in the UK, has worked in the financial markets, and has lectured extensively on management. He was also formerly attached to a leading think tank. The views expressed in this article are his own and do not necessarily reflect those of the Business Times.