Applying agility in the workplace has become a trend during the past few years for its wide range of benefits, such as adaptability, faster work speed, and innovation. However, some companies fail to implement it in its correct sense and gain its fruits. This raises several questions: is it because agile is only successful for software companies? Or is it because some companies may have a limited or ambiguous understanding of the concept and its implementation?
What does Agile mean?
Despite the fact that agility is one of the most popular and challenging concepts, there is no one common definition explaining it. A study explained that there are four main factors that most definitions highlight to define agile organizations. The first two are the organization’s ability to act to change in internal or external business environments at the right time and its response to act proactively on and predict change to make the most of it as an opportunity.
The third component involves learning and continuously expanding or accumulating skills, knowledge, and experience. Last but not least, agile organizations have to build a network structure, a people-centered and purpose-driven culture, as well as iterative processes to improve/enhance a product, service, and the like. Taking into consideration those factors, Petermann and Zacher define an agile organization as “a network of self-organized teams in which employees are able to autonomously make decisions and change the course of action”.
How to apply agility in your workplace
Although the rate of organizations applying agility in the workplace is accelerating, not all organizations are applying it in the right manner which might affect the employees’ performance in a negative way. This is not because agility works only in IT or software companies; agility can be implemented in almost all types of organizations. It is because companies are not embedding the concept in the right sense.
There are several building blocks for developing agility in the workplace such as strategy, values, agile team, organizational structure, agile leaders & managers, culture, and processes. These building blocks can be grouped into two categories: organizational level (strategy, organizational structure, culture, and agile leaders) and team and individual levels.
Organizational level
Strategy: For companies to successfully embrace agility, they should create an agile strategy that is aligned with their overall business strategy. This would create a clear roadmap for applying agility in the whole company.
Organizational structure: Having a long hierarchy that does not allow smooth decision-making does not allow for the successful implementation of agility.
Culture: Companies should embed agility and its components into their culture to successfully implement it.
Agile Leaders: In applying agility, leaders are not only knowledge experts or experienced managers anymore; instead, they are supportive leaders that allow decision-making and delegation within their teams.
Reward systems: Ashutosh Muduli (2019) recommends that allowing nontraditional rewards – like skill-based pay systems, improvement-based incentives, and nonmonetary rewards – do help in fostering workplace agility.
Information systems: They are crucial to boosting operational speed and flexibility within the workforce agility. Muduli pointed out that information systems will help in giving access to timely information associated with the customer, accounting, and business performance, as well as management, organizational leaders.
Team and individual levels
a. Team level (definition and characteristics)According to Petermann and Zacher, agile teams are defined as “teams that use agile methods in their daily business”. Despite a wide range of agile methods and practices, most of them involve common characteristics. Those characteristics include self-organization, delegation, a quick exchange of information, rapid and continuous two-way communication, and feedback with the customers as well as within the team.
Based on those factors, agile teams are able to develop high transparency and a method to measure progress. They have the capability to use iterative processes and respond to changes efficiently and successfully. Agile teams will be able to direct their attention on simple designs that reveal incremental steps that are easy to understand for everyone included.
b. Individual Level (definition and characteristics)
There is not one common definition for agile individuals that is accepted by everyone. Petermann and Zacher describe agile individuals as “people who have the abilities, knowledge, and skills to proactively seek opportunities, and are able to quickly adapt to new situations.” They are also characterized as people who have the required skills to predict, apply, and make full use of and derive benefit from changes.
c. Individual characteristics and team formation
Since individual characteristics and team formation are critical for implementing agility, Petermann and Zacher suggest that companies should re-evaluate their recruitment and development practices. Recruiters should highlight agility skills in their job postings in order to attract candidates with an agile mindset and personality. During interviewing and selection phases, HR people should focus on personality characteristics and cognitive abilities that focus on change.
Training and development are also very important to help agile teams adapt rapidly to changing market requirements. Agile teams need to get updated with the latest skills and knowledge to respond successfully to market changes. Leaders should also be provided with training to lead their teams successfully and efficiently.
Moreover, organizations should train their employees about various methods and tools (such as scrum) that could aid them to apply agility in the workplace. However, it has to be noted that not all circumstances are treated with the same amount of agility and not all methods and practices can be applied in all workplaces. Companies need to ensure that the methods they are using do suit their environments.
There is no doubt that implementing agility is not a piece of cake and companies need to understand the concept and its implementation thoroughly. You can find below some ideas on how you can do that:
Start small: It is better to apply agility on a smaller scale. For instance, you can start with the research and development department. When the team members master agility, they can transfer the knowledge and methods to other departments.
Stop and review: During the implementation phase, you should always stop and assess the current situation to make sure that you are applying agility in the right way, whether in decision-making, meetings, processes, or others. This will also help in assessing whether the teams do really understand the concept of agility or not.
Communicate: Always allow for two-way communication and feedback within the team members and from top-down and down-top in the company. This will enable feedback and continuous learning across the organization.
To sum up, agility can be applied in almost all companies and in any industry, however, they need to make sure that it is applied in the right sense to gain its fruits. Moreover, companies need to make sure that they need agility in the first place before they go into the hustle of its implementation rather than just trying to follow a trending concept.
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Editor’s Note: This article was originally published on January 07, 2022 and has been updated as of November 20, 2024.
Marketing capabilities reflect how organizations enhance their ability to learn and leverage the market to respond to customer changes accurately and efficiently. Various stakeholder expectations have to be fulfilled, and the need to constantly be responsive to internal and external stimuli makes it even more difficult to direct organizations’ marketing efforts. Indeed, to adapt to changing conditions rapidly, tourist marketers are forced to be more agile and capable of reacting quickly and easily to market changes.
Researchers defined agile marketing as a new marketing management approach based on practical learning and aimed at breaking the rigidity of traditional marketing. In particular, marketing encourages teams to work together on a common goal centered on customer needs and regularly checks for weak or unnecessary steps to adjust and optimize operations accordingly. Hence, agile marketing drives greater customer interaction and value, greater speed to market demand, and greater ability to adapt to changes as they occur.
This article will discuss agility and marketing capabilities by providing the recently conceptualized Agile Marketing Capability (AMC) framework. The discussion describes how firms may differ in the development and management of AMC through the identification of different maturity levels where maturity refers to the state of being ready. It explains how tourism marketing managers and practitioners could become more agile in their marketing capabilities, providing a useful tool to assess a firm’s current state of each capability maturity and to quickly grasp potential initiatives for improvement and enabling adaptation to a dynamic fast-changing environment especially in the context of MICE (meetings, incentives, conferences, and exhibitions) tourism, which comprises a large network of hospitality-related services such as accommodations, catering services, and transportation.
MICE represents a highly dynamic sector involved in a continuous exchange and allocation of resources and relationships for planning events to address and satisfy a variety of requests and needs where marketing efforts should be designed according to the variety of attendees so that their objectives and requirements are properly met.
The Emergence of the AMC Framework
According to the study, agility in the marketing field is the extent to which the company can predict and rapidly adapt to customer-based opportunities for innovation and improvement action. Therefore, marketing agility refers to being responsive to constantly changing customers’ expectations and needs and becoming flexible in designing objectives and allocating resources accordingly.
Marketing agility is the firm’s ability to reconfigure its marketing efforts at short notice, adapt to changing market conditions quickly, and fulfill market needs more effectively.
Despite the growing importance of agility in the marketing field, the mainstream strategy could not address agility properly in the context of corporate marketing capabilities. Early studies analyzed marketing capabilities from the resource-based view (RBV) perspective, assuming a static and internally driven approach. Over time, the 2011 research “Closing the Marketing Capabilities Gap” conducted by George Day began to be questioned because of its inability to adapt to a fast-changing business context.
Therefore, a new approach has emerged to aid in the development of new marketing capabilities to be able to grasp the firm’s capacity to sense the market and to look for different ways to reconfigure available resources accordingly. This led to the conceptualization of a different set of marketing capabilities oriented to more open and adaptive paths to fast-changing contexts. AMC Framework contributes by embedding agility that is better suited to align with the urgent need for the tourism industry to transform its business in a time of environmental turbulence.
Applying the AMC Framework
Held in 2019, the research study led by Emanuel Gomes alongside Carlos M.P. Sousa and Ferran Vendrell-Herrero defined AMC as the firm’s marketing capability to (1) constantly sense and respond to changes related to customer needs and requests; (2) follow an adaptive and flexible approach in dealing with changes; (3) create close work relationships among people and a collaborative working environment; and (4) continuously and quickly adjust and deliver new marketing plans (see Table 1). Those capabilities can be assessed through four maturity levels (see Table 2).
The AMC framework offers practical guidance on what strategic actions are needed for the implementation, development, and enhancement of agile marketing capabilities. Therefore, AMC could be used as a tool to assess the current state of maturity level in the development of the capabilities and to understand how to move through each maturity level, accurately implement improvement actions, and enable high-performance marketing.
Moreover, the framework can also support marketing managers in benchmarking and evaluating best practices across the tourism industry, improving marketing performance and being more adaptive to the changes in the market.
Tourism managers can use the AMC checklist for auditing how well their organization is implementing marketing agility and creating an action plan to achieve a higher level of maturity. Tourism firms can have practical guidelines to boost marketing capabilities by referring to the agile marketing capability maturity framework.
What is an agile government, and how can it be achieved?
Agile is a well-known approach in the IT industry, where teams create deliverables in small incremental value within an iteration to achieve one big final goal or a product. This approach supports continuous development and allows teams to shift quickly when necessary because clients may ask for drastic changes.
Given the kind of results produced by the agile approach, it has attracted not only the IT industry but also the public sector and governmental institutions. To better understand the agile principles, let’s take a look at how Indonesia is reforming its bureaucratic system and implementing new strategies.
Bureaucracy in Indonesia
Indonesia is one of the countries in ASEAN that already put some effort into being agile by reforming its bureaucracy. President Joko Widodo expressed this intention in his speech at the Sentul International Convention Center on July 14, 2019. He recommended structural reform “so that institutions are simpler, more agile.”
Indonesia has a total of 217 government agencies, 31 ministries, and 98 statutory agencies as of 2014, based on the data of the Institute of Public Administration Australia. In the World Bank’s Mapping Indonesia’s Civil Service report, Indonesia’s civil service has increased by 25 percent from around 3.6 million in 2006 to over 4.5 million in 2018.
Bureaucracy bleeds several problems, ranging from corruption to low performance. The study “A Structural and Mindset Bureaucratic Reform Agenda for Jokowi’s Second Term.” published in May 2020, cited data from the Commission of Corruption Eradication (KPK) showing that in 2018, out of 2,357 civil servants who had committed corruption, only 891 were dishonorably discharged and 62 percent have not been fired and are still receiving salaries.
Indonesia’s six strategic steps
The bureaucracy culture of the Indonesian government can be traced back to its history of colonialism. But the country continues to aspire for reforms to give the public quality service. Its bureaucratic reform initiatives will be implemented according to the Grand Design of Bureaucratic Reform 2010-2025.
Bureaucratic reform, according to Indonesia’s “Regulation of Minister of State Apparatus and Bureaucratic Reform Number: PER/15/M/PAN/7/2008 concerning General Guidelines for Bureaucratic Reform,” refers to a systematic process and carefully planned fundamental changes in government organizations that aim to achieve high performance in carrying out duties and efficiently implementing services, development, and governance.
Widodo instructed his cabinet to implement bureaucratic reforms based on the “Regulation of the Minister of State Apparatus Utilization and Bureaucratic Reform number 25 year 2021 regarding Simplification of Organizational Structure in Governmental Institution.”
It consists of instructions in the form of a Circular Letter, which presents six strategic steps for every government institution as they reform their bureaucratic system.
Identifying which echelon can be simplified according to each organizational structure;
Mapping which structural role for echelon III, IV, and V in each unit that can be converted into functional roles;
Mapping the functional roles needed by each institution to replace the structural roles;
Adjusting the budget according to the new organization’s structure;
Communicating the results to internals;
Submitting the results to the Minister of State Apparatus Utilization and Bureaucratic Reform.
Indonesia’s bureaucratic system is loosening up to give way to an agile environment. An organization that is flattening its organizational structure is aiming for a more agile, adaptive , according to the paper “Cultivating Agile Organizational Culture: Addressing Resistance to Change in Bureaucratic Government Organizations.”
The study states that in organizational flattening, “leaders allow subordinate units to operate with minimal higher level control, and prefer more collaborative interactions.”
Going agile: analysis and recommendations
Bureaucratic reform, when done right, could transform organizations and public services. For instance, the One Stop Service at the Investment and Integrated Licensing Service Agency (IILSA) in Puruan City is a result of reforms made in the administrative services licensing process.
For a country to exhibit agile governance, it has to listen to its constituents in an efficient manner. According to the article “Agile: A New Way of Governing” written by Ines Mergel, Sukumar Ganapati, and Andrew B. Whitford, agile administrations must welcome reforms and adapt to the changing environment, public values, and public needs.
The authors stressed that agile governments must choose adaptive structure over hierarchies and silos and individual discretion over bureaucratic procedures.They also emphasized that consensual decision-making and trial-and-error approaches must take place for a government to be agile.
To be adaptive, governments must introduce an approach where their decision-making structure is decentralized and bottom-up, according to the paper “Adaptive governance: Towards a stable, accountable and responsive government.”
Indonesia launched its decentralization process in 1999, encouraging participation in community and regional planning and involving citizens in local governance. However, Indonesia has yet to experience the full effects of decentralization.
For example, in the area of public finance, decentralization is not being carried out properly due to two concerns, as stated in the report “Government Decentralization Program in Indonesia” released by the Asian Development Bank.” The first issue refers to “the capacity of subnational governments to produce public and private goods, increase productivity and employment, and promote economic growth in their jurisdictions, was not increased.”
The second concern is about the lack of training of financial managers, as required by the new laws of public treasury and auditing.
To address those issues, the government must demonstrate flexibility. Mergel, Ganapati, and Whitford suggest that flexibility is crucial because agile is not confined to one finished product, service, or process and prioritizes continuous improvement instead.
This is applicable in contracting processes. Traditional governments apply the waterfall model, but agile “requires a contract management approach that is flexible and stretches beyond a fixed-price, one-time project.”
Lastly, these public management reforms can only happen under a new style of leadership. In the IT industry, developers in an agile environment are expected to collaborate with business users. The same is true for agile governments, where leaders must serve and empower people.
To learn more about how governments can measure and improve performance at all levels, visit The KPI Institute’s Center for Government Performance.
