At this particular time of health crisis, it is essential to adapt its management. This includes increased agility, in order to avoid possible demotivation of employees or even a general loss of meaning. So how do we adapt?
Why Adopt The Agile Management Method ?
In its latest report, Enterprise Agility: buzz or business impact,the McKinsey Institute reveals that employee engagement can increase by 20 to 30 points when agile management of the company is implemented. These results were obtained after analysis of 22 organizations in 6 different sectors.
Reminder: The ultimate goal of enterprise agility is to boost financial performance by tying speed and flexibility to stability and strategy. The company is then seen as a moving entity, where everything can be adapted.
Agile management appears to be a priority in times of crisis, where it is necessary to constantly adapt to new government measures, as well as to market fluctuations.
The 5 Agility Models According To McKinsey
In the report cited above, the McKinsey Institute details 5 agile management modes:
- The one focused on the Strategy: the company’s stakeholders agree on a shared goal and a common vision. In the jargon, we are talking about “North Star.” These two elements are both a source of cohesion and motivation.
Example: Amazon bases its entire strategy on the goal of “being the most customer-centric company on the planet.”
- The one on the Structure of the organization: here we are talking about a network of several quasi-autonomous teams, accompanied by a rather collaborative management of the company.
- Agility can also come from Processes: quick decisions and quick learning are largely beneficial to any business.
- Another essential element: People. Human capital can change the whole dynamic of the company. It’s not a scoop, but passionate collaborators are always more efficient.
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- Finally, we can rely on Technology itself. Being in a “technological disruption”, proposing an unprecedented innovation (and knowing how to sell it) is also a source of agility.
In any case, to motivate any management decision, it is necessary to remember the central triptych: employee engagement – efficiency, productivity – customer satisfaction.
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These 5 models are theoretical, but we are hoping they can quite inspire your strategy!
Let us now continue with the study of two well-known management techniques. Are they suitable for crisis management?
Focus: Two Managerial Techniques And Their Agile Potential
KPIs, A Good Idea?
On the face of it, KPIs (Key performance indicators) are key indicators, goals to be achieved that the manager can set. Clearly measurable and very concrete, they seem, in times of crisis, essential to set a course to maintain.
Example: Reach X number of followers on social networks, or sell X machines within a year.
However, McKinsey’s report invites us to question this way of setting the company’s objectives. To KPIs, we should prefer OKRs (Objectives-and-key result metrics).
Unlike their fake twins the KPIs, the OKRs are not fixed annually, but regularly reviewed and corrected. These are not levels to be maintained, but real objectives, which fluctuate with other variables, such as market structure at a particular time or health context..
The involvement of the employees themselves, in setting their goals, is also a strong source of motivation. For example, at Lenovo, the Chinese computer manufacturer, managers and executives take commitments which they set themselves and have their executives approve. It is on these objectives that the company aligns itself.
Decentralising Decisions
Finally, agility in business often goes hand in hand with “non-traditional” management, which is not very centralized. It is assumed that the more self-reliant employees are, the more initiatives they will take that will accelerate the company’s growth.
McKinsey gives the example of a Latin American bank that decided to test a bold management rule: the no middle manager rule. The bank has reduced number of hierarchical layers (from 7 to 3) while focusing the attention of its teams on this transformation. It has achieved surprising results. Among other things, 30% of its workforce was deployed in new roles, as they finally had time available. Free time which can, especially in 2020, be dedicated to crisis management.
Crisis Management Goes Hand In Hand With Agility
Agility, resilience, these seem to be the watchwords of management in the time of coronavirus. Agility can help save a struggling business, especially with the support of employees.
So why not invest in their satisfaction and motivation on a daily basis?
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