Insight

Agus Setiawan

PhD candidate and result-oriented Director with 25 years experience with involvement in all levels of Business Strategy, Sales and Marketing, Managing Project and Product Development. Aside of managing a company, he is also the best corporate trainer and public speaker in seminar and conference.

Five Keys Strategies of Agile Organization by McGrath

Digital transformation era has forced organizations to transform and adapt to the digital era. This transformation could become a wild ride since organizations should create a new way of dealing with the world. A “digitally native” is one of the appropriate ways that could be used by organizations to adapt the rapid change of digital technology.

A Framework for Creating Agile Organizational Strategy

Rita Gunther McGrath, a globally recognized expert on innovation and growth strategies has developed a framework that could be useful for creating an agile organizational strategy, McGrath’s framework was developed based on the research conducted in companies that have market cap of more than 1 billion USD and net income growth of 5 per cent above global GDP. Several strategies in McGrath framework for creating agile organizational strategy could be seen as follows:

Continuous Reconfiguration

Continuous configuration concerns in keeping the existing source has competitive advantages since there are more competitors in the market. It is also a process that moves from extreme restructuring to one that allows for dynamism in operations, structure and execution which will only occur through the fluidity of talent allocation.

Healthy disengagement

Healthy disengagement is a more systematic, frequent, and formal approach to a disengagement situation. This strategy provides more favorable learnings way to learning back into the business as well as to repurpose and re-leverage any potentially reusable assets and capabilities.

Agile Resource Allocation

The central control of organization is managing its key resources. In agile resource allocation, organization forms a team of people consists of a cross-functional team that has all abilities needed in the team. Through this agile resource allocation, organization could access its resources as well as leverage their capabilities.

Innovation Proficiency

Organizations should encourage their resources to learn from mistakes, find the right way to deal with problems, and continuously encourage their resources to create innovation that would help organization enhances their business.

Leadership

Leadership strategy promotes continual shift in which more people are involved in the strategy process, in order to be an excellent agile leader, resources should be able to seize opportunity and adapt to rapid change of digital technology.



Conclusion

In order to thrive in digital transformation era, organization could use McGrath’s framework as the way to build an agile organizational strategy where innovation, disengagement, and leadership become the priority for change.

Reference:
Neil Perkin & Peter Abraham (2017). The Agile Business Through Digital Transformation. Kogan Page (2017)

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