The role of the leader in agile organizations

Companies are changing to allow organizational structures to become more agile, how is this change impacting on the role of the leader?

“All the employees, more than 500, are organized in 21 teams or mini-factories. Most of the teams are dedicated to a specific customer. Each team self-organizes, there is no middle-management. The staff functions have nearly disappeared. No HR, no planning, no hiring or purchasing. Sales people are part of the teams. No white collars.”

Do you imagine a company like the one described above? Well, this one is real. This is an extract from the book Reinventing Organizations by Frederic Laloux.

Many companies around the world are moving towards an agile way of work to be able to tackle constant changes and capture the opportunities those changes bring. As per a survey done by McKinsey 37 percent of respondents said their organizations are carrying out company-wide agile transformations. Why? Because today the only constant is change. “Agile organizations can develop products five times faster, make decisions three times faster, and reallocate resources adroitly and quickly” based on the research “Leading agile transformation:  The new capabilities leaders need to build 21st-century organizations”.

New organizational structures

So the question now is, what is the role of the leader in these agile organizations? Agile companies work in small teams that are multidisciplinary and autonomous, some don’t have leaders, some simply have facilitators to ensure successful interactions among team members, suppliers and customers. Leaders in agile organizations need to let go of micromanaging the day-to-day activities to become the team success facilitators. They will set a long-term vision, promote interaction across the organization, provide support to unleash team member’s idea and define priorities.

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Actually, leaders are no longer “bosses” of the people on their team, customers are. That’s why structures in agile companies flatten to:

• Allow fast and online communication top down, bottom up and inside out.
• Facilitate fast decision making within the team, without the need to wait for management approval
• Ensure everybody is connected to the customer needs, and the needs of each of the team members

Agile habits

The big change is that, in agile companies, everybody can become a leader. Depending on the task at hand they may move quickly. There is no more ladder to climb. Therefore, everybody needs to be trained to CARE for their team, through four main habits:

• Connect: Communicate the vision, values and objectives that drive the team and build the network of stakeholders required. Team members decide the best way to accomplish their goals.
• Ask: ask more questions at the front-line to deeply understand results, instead of advocating opinion or direction. Analyze risks and always look for outside-in perspectives from the customers to make decisions with the team.
• Respect: Build confidence and trust, foster open communication and respect differences in the workforce to allow multidisciplinary teams to thrive. Strengths, skills and ideas for innovation work at their best when relationships are based on mutual acceptance.  
• Empower: Prioritize objectives visually, build systems and team routines, promote self-discipline and time management and encourage immediate problem-solving. Avoid constant updates, briefings, micromanagement, and approvals, all very costly.

RECOMMENDED COURSES: Agile Leadership

When every team member become an agile leader, their involvement is nurtured by their day-to-day contact with the customer. That interaction makes products and services more innovative and customer-oriented. Customers feel heard, so buy more products, share their experiences with their friends and recommend the business. The company becomes the customer favorite and sales increase rapidly. Yes, small changes in people’s interactions can make great changes! Do you agree?