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Real-world lessons to jumpstart an agile culture shift

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systems</p></div></div></div><div class="mdc-u-grid-gutter-lg BlogAuthors_mck-c-blog-authors__author-bio__bygEJ"><div data-component="mdc-c-avatar" class="mdc-c-avatar-enhanced-author-1 mdc-c-avatar___kVSTP_2734c4f mdc-c-avatar--image-placeholder___BX3C4_2734c4f mdc-c-avatar--size-6"><style> .mdc-c-avatar-enhanced-author-1 { --mdc-avatar-size: 48px; } </style><a href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/author/michael-lurie"><span class="mdc-c-avatar__hide___rnSnd_2734c4f">placeholder Image</span></a></div><div class="mdc-u-ts-10 BlogAuthors_mck-c-blog-authors__description__0BmaA"> <a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/author/michael-lurie" class="mdc-c-link___lBbY1_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Michael Lurie</span></a></div></div><div class="mdc-u-grid-gutter-lg BlogAuthors_mck-c-blog-authors__author-bio__bygEJ"><div data-component="mdc-c-avatar" class="mdc-c-avatar-enhanced-author-2 mdc-c-avatar___kVSTP_2734c4f mdc-c-avatar--image-placeholder___BX3C4_2734c4f mdc-c-avatar--size-6"><style> .mdc-c-avatar-enhanced-author-2 { --mdc-avatar-size: 48px; } </style><a href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/author/philippine-risch"><span class="mdc-c-avatar__hide___rnSnd_2734c4f">placeholder Image</span></a></div><div class="mdc-u-ts-10 BlogAuthors_mck-c-blog-authors__description__0BmaA"> <a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/author/philippine-risch" class="mdc-c-link___lBbY1_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Philippine Risch</span></a></div></div><div class="mdc-u-grid-gutter-lg BlogAuthors_mck-c-blog-authors__author-bio__bygEJ"><div data-component="mdc-c-avatar" class="mdc-c-avatar-enhanced-author-3 mdc-c-avatar___kVSTP_2734c4f mdc-c-avatar--image___levct_2734c4f mdc-c-avatar--size-6"><style> .mdc-c-avatar-enhanced-author-3 { --mdc-avatar-size: 48px; } </style><a href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/author/olli-salo"><img src="/~/media/mckinsey/our people/ollie salo/olli_salo_headshot_988x741.jpg?cq=50&amp;mw=128&amp;car=1:1&amp;cpy=Center" alt="Olli Salo"/></a></div><div class="mdc-u-ts-10 BlogAuthors_mck-c-blog-authors__description__0BmaA"> <a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/author/olli-salo" class="mdc-c-link___lBbY1_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Olli Salo</span></a><div data-component="mdc-c-description" class="mdc-c-description___SrnQP_2734c4f"><p>Leads global efforts in agile organization, applying experience in leading many large-scale agile transformations</p></div></div></div></div><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--display-column___X0HDD_2734c4f BlogEntryContent_mck-c-blog-entry-content__tag-container__b0iuz mdc-u-grid-gutter-xxs"><div class="BlogEntryContent_mck-c-blog-entry-content__tag-link__fxyON"><a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/tag/agility" class="mdc-c-link-icon___SEKyg_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Agility</span></a></div><div class="BlogEntryContent_mck-c-blog-entry-content__tag-link__fxyON"><a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/tag/culture" class="mdc-c-link-icon___SEKyg_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Culture</span></a></div><div class="BlogEntryContent_mck-c-blog-entry-content__tag-link__fxyON"><a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/our-insights/the-organization-blog#/tag/change-management" class="mdc-c-link-icon___SEKyg_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Change management</span></a></div></div></div><div class="mdc-o-content-body"><p><span class="BlogEntryContent_mck-c-blog-entry-content__display-date__vCR9M"><time dateTime="2020-11-16T00:00:00Z">November 16, 2020</time></span>A growing number of organizations are embracing agility to improve delivery, increase speed, and enhance customer and employee experience. However, when starting an agile transformation, our research shows that the people dimension—culture especially—is the most difficult to get right.</p> <p>The following lessons from organizations that have successfully made this shift can give others a head start on their own transformation journeys.</p> <ol> <li><strong>Define the from–tos</strong> <p>Each organization is unique, and its unique culture should power the new agile operating model. Use the current culture as a starting point to articulate specific mindset and behavior shifts that would make the biggest difference.</p> <p>One of the first steps a digital-services and telecommunications company took was to launch an effort to articulate cultural from–tos. The company identified the behavioral shifts that teams would need to thrive in the new agile operating model. To help inform what changes were necessary, they sought to understand the underlying thoughts, feelings, and beliefs that were driving behaviors.</p> <p>The from–to aspirations were then distilled into key themes that resonated with colleagues across the organization, were both practical and achievable, and were specific to the company. The resulting articulation of from–to behaviors allowed the company to understand and compare its existing cultural reality with the desired end state.</p> </li> <br/> <li><strong>Make it personal</strong> <p>Leaders should give their people the space and support to define what the agile mindset means to them. This will differ among senior leaders, middle managers, and frontline staff, and have different implications for each.</p> <p>To build an agile culture, a biotechnology company facilitated a deep, personal change process among senior leaders. More than 1,000 were invited to learn a more agile approach to leadership through a four-day immersive program that introduced the mindsets and capabilities needed to lead an agile organization.</p> <p>Throughout the program, leaders came to recognize the ways in which their individual mindsets, thoughts, and feelings manifested in the design architecture and culture of the organizations they led. Within six months, many participants had launched agile experiments with their own leadership teams and organizations.</p> </li> <br/> <li><strong>Culturally engineer the architecture</strong> <p>To sustain a new culture, redesign structures, processes, and technology to support behavioral expectations. Hardwire the desired culture change into all elements of the organization and transformation.</p> <p>A telco invested to ingrain agile mindsets and behaviors throughout the transformation it started in 2018. To ensure formal mechanisms supported this shift, the company used structural changes on an individual and organizational level, aligning people, customer, and business processes as well as working environments to an agile culture.</p> <p>Within weeks, the telco’s work spaces—both physical and digital—turned into collaborative incubators of the new agile culture.</p> </li> <br/> <li><strong>Monitor and learn</strong></li> <p>Successful agile transformations have shown the value of monitoring progress, evaluating behavioral change and its impact on performance, and running regular retrospectives to learn from successes and failures.</p> <p>A leader of agile transformations in banking used multiple approaches to track impact on productivity and several dimensions of performance, time to market and volume, and employee engagement. It also tracked the progress of culture change and its impact on the overall transformation.</p> <p>Data from its tracking initiatives was used to produce practical learning. The bank also teamed with INSEAD’s Maria Guadalupe to study and improve the quality of tracking efforts and the resulting insights. The company established the correlation between culture and performance and used culture data to bring its agile operating model to life.</p> </ol> <p>Enabling a successful agile transformation requires a fundamental shift in culture. For more, please read “<a href="https://www.mckinsey.com/business-functions/organization/our-insights/doing-vs-being-practical-lessons-on-building-an-agile-culture">Doing vs being: Practical lessons on building an agile culture</a>.”</p></div></div><aside class="mdc-u-grid-col-lg-start-11 mdc-u-grid-col-lg-span-2 BlogEntryContent_mck-c-blog-entry-content__side-bar__YsMpJ"></aside></div></div></div><div data-component="mdc-c-module-wrapper" data-module-theme="light" data-module-background="lightest-grey" data-module-category="StandalonePromo" class="BlogPromo_mck-c-blog-promo__hSsYu BlogPromo_mck-c-blog-promo--full-width__pKXqL mck-u-animation-slide-up BlogEntryContent_mck-c-blog-entry-content__promobar___qKLu" data-layer-region="blog-one-click-module"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-lg"><div class="mck-o-container"><div data-component="mdc-c-content-block" class="mdc-c-content-block___7p6Lu_2734c4f mdc-u-grid-gutter-lg mck-o-container--wrapped mck-o-container--mobile-spacing BlogPromo_mck-c-blog-promo__content__31yfC BlogPromo_mck-c-blog-promo__content--center__JdBp3"><div class="mdc-u-align-center"><h3 data-component="mdc-c-heading" class="mdc-c-heading___0fM1W_2734c4f mdc-u-ts-3">Learn more about our People &amp; Organizational Performance Practice</h3></div><div class="BlogPromo_mck-c-blog-promo__form-wrapper__bLL16 BlogPromo_mck-c-blog-promo__form-wrapper--width-auto__6v1YB"><div data-component="mdc-c-link-container" class="mdc-c-link-container___xefGu_2734c4f mdc-c-link-container--align-Center"><a data-component="mdc-c-link" href="/capabilities/people-and-organizational-performance/how-we-help-clients" class="mdc-c-link-cta___NBQVi_2734c4f"><span class="mdc-c-link__label___Pfqtd_2734c4f">Learn more</span><span data-component="mdc-c-icon" class="mdc-c-icon___oi7ef_2734c4f mck-link-arrow-right-icon"></span></a></div></div></div></div></div></div></div></div></div></main></div><script id="__NEXT_DATA__" type="application/json">{"props":{"pageProps":{"locale":"en","dictionary":{},"sitecoreContext":{"route":{"name":"Real world lessons to jumpstart an agile culture shift","displayName":"Real world lessons to jumpstart an agile culture shift","fields":null,"databaseName":"web","deviceId":"fe5d7fdf-89c0-4d99-9aa3-b5fbd009c9f3","itemId":"b7548a8a-58c0-490a-82e3-9941c3488849","itemLanguage":"en","itemVersion":1,"layoutId":"ae753eb4-a035-40b4-83bf-4b4438df6742","templateId":"d929136a-019a-4786-8072-3e3a60b2f31c","templateName":"Blog Entry","placeholders":{"jss-main":[{"uid":"e18e4703-f541-45d8-89c1-d5d8407f1708","componentName":"BlogEntry","dataSource":"","fields":{"data":{"blogEntry":{"title":{"jsonValue":{"value":"Real-world lessons to jumpstart an agile culture shift"}},"sEOTitle":{"value":""},"description":{"jsonValue":{"value":"These four lessons, drawn from real-life success stories, can give your organization\u0026rsquo;s agile transformation a boost."}},"sEODescription":{"value":""},"displayDate":{"jsonValue":{"value":"2020-11-16T00:00:00Z"}},"body":{"value":"\u003cp\u003eA growing number of organizations are embracing agility to improve delivery, increase speed, and enhance customer and employee experience. However, when starting an agile transformation, our research shows that the people dimension\u0026mdash;culture especially\u0026mdash;is the most difficult to get right.\u003c/p\u003e\n\u003cp\u003eThe following lessons from organizations that have successfully made this shift can give others a head start on their own transformation journeys.\u003c/p\u003e\n\u003col\u003e\n \u003cli\u003e\u003cstrong\u003eDefine the from\u0026ndash;tos\u003c/strong\u003e\n \u003cp\u003eEach organization is unique, and its unique culture should power the new agile operating model. Use the current culture as a starting point to articulate specific mindset and behavior shifts that would make the biggest difference.\u003c/p\u003e\n \u003cp\u003eOne of the first steps a digital-services and telecommunications company took was to launch an effort to articulate cultural from\u0026ndash;tos. The company identified the behavioral shifts that teams would need to thrive in the new agile operating model. To help inform what changes were necessary, they sought to understand the underlying thoughts, feelings, and beliefs that were driving behaviors.\u003c/p\u003e\n \u003cp\u003eThe from\u0026ndash;to aspirations were then distilled into key themes that resonated with colleagues across the organization, were both practical and achievable, and were specific to the company. The resulting articulation of from\u0026ndash;to behaviors allowed the company to understand and compare its existing cultural reality with the desired end state.\u003c/p\u003e\n \u003c/li\u003e\n \u003cbr /\u003e\n \u003cli\u003e\u003cstrong\u003eMake it personal\u003c/strong\u003e\n \u003cp\u003eLeaders should give their people the space and support to define what the agile mindset means to them. This will differ among senior leaders, middle managers, and frontline staff, and have different implications for each.\u003c/p\u003e\n \u003cp\u003eTo build an agile culture, a biotechnology company facilitated a deep, personal change process among senior leaders. More than 1,000 were invited to learn a more agile approach to leadership through a four-day immersive program that introduced the mindsets and capabilities needed to lead an agile organization.\u003c/p\u003e\n \u003cp\u003eThroughout the program, leaders came to recognize the ways in which their individual mindsets, thoughts, and feelings manifested in the design architecture and culture of the organizations they led. Within six months, many participants had launched agile experiments with their own leadership teams and organizations.\u003c/p\u003e\n \u003c/li\u003e\n \u003cbr /\u003e\n \u003cli\u003e\u003cstrong\u003eCulturally engineer the architecture\u003c/strong\u003e\n \u003cp\u003eTo sustain a new culture, redesign structures, processes, and technology to support behavioral expectations. Hardwire the desired culture change into all elements of the organization and transformation.\u003c/p\u003e\n \u003cp\u003eA telco invested to ingrain agile mindsets and behaviors throughout the transformation it started in 2018. To ensure formal mechanisms supported this shift, the company used structural changes on an individual and organizational level, aligning people, customer, and business processes as well as working environments to an agile culture.\u003c/p\u003e\n \u003cp\u003eWithin weeks, the telco\u0026rsquo;s work spaces\u0026mdash;both physical and digital\u0026mdash;turned into collaborative incubators of the new agile culture.\u003c/p\u003e\n \u003c/li\u003e\n \u003cbr /\u003e\n \u003cli\u003e\u003cstrong\u003eMonitor and learn\u003c/strong\u003e\u003c/li\u003e\n \u003cp\u003eSuccessful agile transformations have shown the value of monitoring progress, evaluating behavioral change and its impact on performance, and running regular retrospectives to learn from successes and failures.\u003c/p\u003e\n \u003cp\u003eA leader of agile transformations in banking used multiple approaches to track impact on productivity and several dimensions of performance, time to market and volume, and employee engagement. It also tracked the progress of culture change and its impact on the overall transformation.\u003c/p\u003e\n \u003cp\u003eData from its tracking initiatives was used to produce practical learning. The bank also teamed with INSEAD\u0026rsquo;s Maria Guadalupe to study and improve the quality of tracking efforts and the resulting insights. The company established the correlation between culture and performance and used culture data to bring its agile operating model to life.\u003c/p\u003e\n\u003c/ol\u003e\n\u003cp\u003eEnabling a successful agile transformation requires a fundamental shift in culture. For more, please read \u0026ldquo;\u003ca href=\"https://www.mckinsey.com/business-functions/organization/our-insights/doing-vs-being-practical-lessons-on-building-an-agile-culture\"\u003eDoing vs being: Practical lessons on building an agile culture\u003c/a\u003e.\u0026rdquo;\u003c/p\u003e"},"hidePromoBar":{"boolValue":false},"hideDek":{"boolValue":false},"mobileReady":{"boolValue":true},"selectedModalSubscriptions":{"targetItems":[]},"hideFromSearchEngines":{"boolValue":false},"parent":{"id":"7C7A7EA76B834C8C819FBF479C62AE76","name":"The Organization Blog","title":{"value":"People \u0026amp; Organization Blog"},"description":{"value":"Short and snackable insights on topics related to people, talent management, organizational performance, purpose, agility, culture, change management, people analytics, leadership, and merger management from our experienced leaders at the forefront of today\u0026rsquo;s 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