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For years I have been thinking; “Sometime, a pandemic will spread all over the world. Maybe not in my lifetime, but sometime it will come. Because it’s how nature works.”
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Some say it will be over after the summer. Others think the pandemic will last much longer and that a worldwide recession will hit us. Some say the world economy will revert Can you imagine an economy rolled back 50 years, but we will still have ? But, with our technology, knowledge, and the suffering environment we didn't didn’t have back then.
Most pundits agree that Anyhow, our world will be different. No one knows to what extent, but for sure it will be different. Whatever happens to our economies, lifestyles, or needs, the uncertainty is higher than ever before. The question is, what will make the growth wheels spin again. Global completion could be more brutal than ever before. Historically demand has gone done after a crisis. To succeed in a time of ever-changing technology and needs requires fast, adaptable, and creative thinking.
I'm sure leaders, all over the worldeverywhere on this planet, are struggling with their future. What will attract customers? What margins are feasible? How long will the downturn last? What will make my company survive?
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What to do?
The most important work for Leaders is to build the capability to deliver the right value. The capability is what you can work on right now and it will give some respite.
The time is over when the best way to organize was in functional silos with local responsibility and performance metrics. Whether you are promoting silos or not, your business is operating in valve streams. That is all strategic steps needed from start until some kind of client or user value appears.
Just forget to do well-defined plans and product designs. When dealing with this massive uncertainty, building up new knowledge, and adjust is going to be your way forward.
The chance of success through cost-savings and supply-chain/production optimization is getting lower. Instead, company leaders need to focus more on building the capability to innovate, create new products, and interact with the market to validate what is flying or not.
The solution
My prediction is that Product Management will be the key. Yes, it was important before as well. But, now the pressure to be able to quickly deliver what customers will buy is much stronger.
We will need much more of, what many companies already are doing. Experimentation and measuring of business results. Don't worry, plenty of companies have been doing it for a while and many tools and techniques are available.
The art of innovative Product Management, with the development of Lean-Agile mindset and frameworks, has for many years become more and more important. I am so sure this development will accelerate so much more. Since the thing with Lean and Agile is all about taming the uncertainty.
What to does it mean in practice
It is a difference between analyzing what products the market will like and develop an organizational capability to deliver any great product. The latter is a more flexible alternative and something you can work on now and be better prepared for the future.
Business agility means an organization that as a whole have As you know, the case is not that uncertainty was low before Corona. We already had a situation of ever-changing technology and needs, which required fast, adaptable, and creative development. Did anyone think about slowing down?
My prediction is, that innovative Product Development will be the key to survival. Many companies are already doing a lot of experimentation, measuring if business results, figuring out why they exist, and much more you can read in best sellers. Did you know there are about 100 new books on Innovation published each month? What is your recipe to manage the competition?
Is it clear in your organization, who develops the products customers love and who develops the organizational capability to deliver the beloved products? If it’s not clear, the risk is your company will be slower, and in the worst-case develop the wrong products.
A popular term is Business Agility, which means that an organization as a whole has the ability to adapt according to market and customer needs. CEOs and other top managers cannot continue to delegate work <responsibility for organizational design and change managment> to middle management and functional silo managers.
They must build a flow-based and modularized organization that can act swiftly on market reactions. The time is over when Agile and Lean have been thought of just as an IT-team endeavor. Without upper management engagement, we have observed that for most "traditional" organizations it is a very long Journey
In almost all organization I can see an unclear decision order where organizational capability and product delivery are mixed and handled so unclear that not much is coming out. All organizations who want to challenge the competition have to take organizational design and product development flow much more seriously.
Some things to remember will be even clearer
To develop Business Agility requires huge work and should not be the responsibility of the same people who decide about the products. Typically, Product Managers need to have the authority to react swiftly on market feedback and does not have the time to do the work as a line manager at the same time.
So what does it mean to build a fantastic organization that will be able to take the edge of the big uncertainties served by Corona and give your company some more respite?
Transformational, servant, or whatever we call the type of leadership that let people thrive. You are going to need an organization that can be flexible and decisions which solutions to deliver. You need to be open, humble, and rewarding when people dare and when they learn by mistakes. as you point out the visionary direction of your enterprise.
The skills of experimentation are key. There is plenty of knowledge on how to perform Business Experiments. Make sure to clarify business ownership.
Sunk cost. Just because a lot of work and resources have been put into something, it does not mean it is Valuable.
Value streams. If you have not identified your real value streams and paid them the proper attention it is now time. Your current organization is probably not fit to take on the new challenges.
Transformational, servant, or whatever we call leadership that let people thrive. You will need an organization that can innovate and gets the right products out on the market. You need to be open, humble, and rewarding as you point out the visionary direction of your enterprise.
Experimentation is key. There is plenty of knowledge on how to perform Business Experiments. Make sure to clarify business ownership.
Backlog, backlog, and backlog. A great Product Backlog is transparent, contains what we would like to have, and is prioritized based on business value. Most organizations do not have the needed knowledge to create great backlogs. They mix projects, activities, and phrases just as before. Top management needs to understand and show the rest of the organization what a great ball log is. Otherwise, it will not happen. I'm sure I have seen it far too offers.
Most organizations are still preparing large projects with predefined solutions years ahead of delivery.
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What to does it mean in practice
They must build a flow-based and modularized organization that can act swiftly on market reactions. The time is over when Agile and Lean have been thought of just as an IT-team endeavor. Without upper management engagement, we have observed that for most "traditional" organizations it is a very long Journey
In almost all organization I can see an unclear decision order where organizational capability and product delivery are mixed and handled so unclear that not much is coming out. All organizations who want to challenge the competition have to take organizational design and product development flow much more seriously.
It is not whether you will be able to develop and deliver a solution. From a technical perspective, it is easier than ever. Today technology is cheaper and more available. The challenge is to figure out which solution will appeal to consumers.
Me too would like to have a world without Corona and plenty of uncertainties. But the reality is pressing on and I don’t think Business Agility is an option anymore it is must.
Stay safe,
Mats
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Remember some possibly useful stuff.
While many of us are occupied in the current situation, trying to live our lives and also save lives, some need to start planning for the future. Leaders of companies and other organizations cannot wait to point out the way forward. We need to get going. We have an economy to save!.
Historically demand has gone done after a crisis. The global competition is likely to get more brutal than ever before.
It is not possible to have all the layers, streamlining organization charts and avoid silos and layers that only add administration or control
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It is your choice if you want to build your organization around these value streams or stay in the functional responsibility paradigm. But, take the time to think about your choice now and prepare for the worst.
Just forget to do well-defined plans and product designs. When dealing with this massive uncertainty, building up new knowledge, and adjust is going to be your way forward.
The time is over when the best way to organize was in functional silos with local responsibility and performance metrics. Whether you are promoting silos or not, your business is operating in valve streams. That is all strategic steps needed from start until some kind of client or user value appears.
...
Trash
The chance of success through cost-savings and supply-chain/production optimization is getting lower. Instead, company leaders need to focus more on building the capability to innovate, create new products, and interact with the market to validate what is flying or not.
The solution
The art of innovative Product Management, with the development of Lean-Agile mindset and frameworks, has for many years become more and more important. I am so sure this development will accelerate so much more. Since the thing with Lean and Agile is all about taming the uncertainty.
...