Agile Control System

How can employees at all levels be empowered to make strategically sound (agile) decisions?

The world is becoming increasingly uncertain and volatile - this is not just a subjective feeling, but is also reflected in the data, such as the World Uncertainty Index (see figure). The usual way of planning and making decisions top-down is no longer effective today. In order to cope with the increasing speed and complexity, decisions must be made agilely in the company. More and more companies are already relying on agile processes and projects today. But that is not enough: in order to really be able to act agilely, there must also be agile control for the strategic and operational decisions of the company.

Image title: World Uncertainty Index
Source:
https://worlduncertaintyindex.com

 

Agile control system for continuous, rapid adaptation to market changes


Approaches for agile processes and projects at the operational level are now known to most companies and are often already established or being introduced. However, many organizations find it difficult to align organizational control in an agile manner. Classic controlling and management approaches can hardly reflect the need for continuous adaptation, as they are focused on efficient planning and implementation. New, more agile methods such as OKR (Objectives and Key Results) supposedly provide a remedy here, but in turn bring a new level of high complexity to the company. The result: decisions are still often made incoherently at various levels, or not at all - so that although work is carried out agilely and efficiently at the operational level, overall effectiveness suffers. 

The solution is an agile control system that meets complexity with the greatest possible simplicity and can be used stringently “from the CEO to the intern”. By means of a clear procedure, easy-to-use methods and tools and a transparent orientation towards measurable company goals, decisions can always be made as close as possible to the information, and yet coherently in the sense of the company as a whole.

Introduction of an agile management system

In many years of academic research and applied practice, venture.idea has been able to develop and apply a novel agile control system. On the one hand, this meets the requirements of established companies and, on the other hand, meets the immense complexity with maximum simplicity.

 

Image title: Agile Management System
Source: Rückert, Sauberschwarz & Weiss, Strategy Needs Agility, ISPIM Proceedings 2021


The centerpiece is a strategic KPI framework with which the portfolio of projects and initiatives can be collected, evaluated and analyzed holistically and individually in every area of the company. With the help of a designated process and suitable methods, this is continuously reviewed and adapted through regular review workshops. In this way, “gaps” for achieving goals can be identified early on and/or agile decisions can be made to focus and continuously prioritize resources and budgets.

At the same time, the agile control system also serves the structured recording and evaluation of new business and optimization opportunities, for example from agile strategy work or strategic innovation management. Since the agile control system can be used flexibly at the management level, central functions, or the entire company, it can be used to establish the necessary speed and adaptability at the strategic and operational level in the company, depending on requirements.


"Thanks to the agile portfolio strategy, we remain capable of acting at all times, even in an increasingly fast-moving and complex environment"
Timo Emmert, Commercial Director / Authorized Officer E-Commerce, MediaMarktSaturn
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Lucas Sauberschwarz

Managing Partner
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