In most large organisations a comprehensive governance framework has been created that aligns direction set at the top, to those at the bottom required to execute. This takes the form of a waterfall of governance documented in the vision, mission, values, policies, business goals, business unit goals, objectives, tactical plans, processes, key performance indicators and RACI charts.
This governance framework represents significant organisational complexity which hinders an organisation’s attempts to ‘be agile’.
Rule 1 refocusses the organisation upon what matters most. The realisation of the vision.
Business Agility recommends two levels of vision: Organisation and Product/Service.
Each vision should be co-created with the relevant stakeholders and the alignment between the two used as the primary form of governance.
Co-creation increases stakeholder motivation and buy-in, which in turn reduces resistance to change – the most common reason that large transformations fail.
In addition, by relying upon vision alignment as the primary form of governance organisational complexity and costs are reduced.
- Motivating and inspiring everyone to make the vison a reality
- Enabling progress to be measured
- Helping us validate and align investments and actions
Critical Success Factors
- The amount of centralised governance needs to be reduced i.e. less centralised controls