Agile approach in product development
A CEO, whom I greatly respect, of a large company, whom I am accompanying in agile development of physical products, made this request to me:
“the agile approaches in product development that we have seen can also be somewhat adopted at the top and middle management level to manage the business? “
My response was positive telling him that this today is identified with the term business agility.
When asked to start right away with this aspect as well, I replied to him:
Let us give time for the “legs” (product development) to begin to become agile and then bring agility to the “head” i.e., business management.
The reason for my response, as someone who was a company executive in product development until last year, and as a knower of Italian realities, was based on the thought: let the facts speak through the results of product development.
However, this means having to wait, in the case of physical products, several if not many months before seeing results on what was developed in an agile way.
It is an answer I would no longer give, because at the first difficulty that arises at the product development level, management is not always ready to respond in a timely and appropriate manner to the needs of agile teams.
Therefore, I suggest that after a few months after the successful start of new product development projects in Agile mode, we extend agile logics to the managerial level.
This is the only way to accelerate organizational design, which is necessary to make the new agile and fast mode for product development sustainable.
It means starting to think about the relevant spaces, the relevant equipment, and the internal and external selection of the necessary people.
Business Agility and the management of the company
Under the umbrella of Business Agility, which I would feel like translating into Italian as “agile business management,” we can put many things among which I would like to highlight:
- New agile paradigms of both new and customized product development for customers
- New agile marketing methods integrated with product development
- Structured innovation management starting with the product portfolio and product ideas.
- New ways of managing people to foster intrinsic motivation
- Introducing metrics for the complex world such as OKRs as a tool for measuring the achievement of new goals and results.
- Introduction of “dynamic” budget modes evolving with the context.
- To foster with agility the improvement of the ESG (Environmental, Social and Governance) level, that is, the environmental, social and governance impact of the company.
These are important and challenging issues, but just making the first four, which are closely related to product development, sustainable is already an important step.
ESG Impact: Agility for a Sustainable Future
There is one key aspect that deserves special attention: the ESG (Environmental, Social and Governance) impact. In a world increasingly aware of environmental, social and governance challenges, Agility can play a crucial role in improving these areas within companies.
Business Agility, in its broad spectrum, encompasses multiple aspects that can contribute to a sustainable future. Besides the paradigms
agile in product development and integrated marketing, it also extends to structured innovation management, people empowerment and the introduction of appropriate metrics.
Through Agility, it is possible to adopt business practices and policies that foster positive impact on the environment, promote social welfare and maintain high standards of governance.
With an Agility-driven ESG approach, companies can drive the reduction of the environmental impact of their operations, promote diversity and inclusion, ensure workplace safety, respect human rights, and adopt policies of transparency and integrity.
Agile practices, such as adopting clear and measurable goals such as OKRs, can provide a solid basis for assessing and improving the company’s ESG level over the long term.
Making the previously mentioned aspects sustainable is a significant step, but embracing Agility to promote ESG is a further commitment to a sustainable future in which businesses play an active role in building a better world for future generations.
