Orchestrate Technologies, a cloud computing firm, shows how this is achieved. The key is to give the new company arm as much independence as possible, after having established the rules at the start.īeing nimble is also about being able to adjust your technology stack in response to changes in business needs. It might seem like cheating, but many companies, including Google, have proven that this strategy works. The new firm succeeds because it already uses innovate managerial and technological structures. The original operational core of the firm becomes less important over time while the new experimental section continues to grow in proportion to its market success. But over time, the original core of the company should naturally decline, and staff who lose their positions can then, in some cases, be reallocated to the new firm under the new structures. Nobody gets fired directly, and nobody has to change the way that they work. Setting up a separate company – or new company arm – gets rid of many of the problems of trying to change the existing business. One of the best examples of this is Google’s Calico – a firm dedicated to improving human using the parent’s data technologies. That’s why so many large firms create spinoffs which are independent and autonomous from the main company. When organizations try to create change from within, they usually fail for the reasons discussed above. Being nimble relies on a range of leadership and technological capabilities that enable a company to transition away from old business models while at the same time side-stepping problems with inertia. How do you build an agile culture? It’s tricky, and there are no easy answers. People don’t want to admit that their roles are surplus to requirement so they’ll do everything they can to resist change until new companies pop up and displace them, forcing the business to fail. And what most people in an organization care about isn’t the overall health of the company but their financial reward. Change is difficult and financially painful. There’s an enormous incentive for people in the company to keep doing things the same way. Although it might be better for the firm as a whole to adjust the way it operates, there are always losers who will miss out if things change from the status quo. The reason for this has to do with incentives. But it’s also something that is devilishly hard to do, and most large organizations fail. It means having the ability to adjust organizational structures, leadership practices and techniques to meet new market needs and fend off competition. Being nimble in business means being able to change and adapt to different circumstances. Part of the answer comes down to being nimble. It’s funny, isn’t it? Why is it that startups with practically no money seem to be the companies that change the world while large companies with all the resources in the world stagger on as they always have, doing things the way they’ve always done them until they get displaced by someone else who does things better? What Does It Mean To Be Truly “Nimble” As A Business?
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