AgileManagement:

Principlesandpracticesforcreatingcompetitiveadvantagethroughdynamic,innovativeand
consumerfocusedteams.

Agilemanagementisanemergingleadershipphilosophyfocusedoncontinuousproductimprovement
andongoingcustomerinvolvementwithafocusonselforganizingsmallgroups.Committingtothekey
principlesofagilepracticesandtheorganizationalculturalshiftsrequiredcanbringabouttremendous
gainsintermsofbothefficiencyandgrowth.Theadvantagesareplentiful:stronger,faster
communication,moreintimacywithconsumers,andgreaterorganizationalfocusoninnovationamong
them.Allofthesecanhelptobuildaformidablecompetitiveadvantageandgreatlyimpactan
organizationsbottomline.However,therearesomeinthebusinesscommunitythatbelieveagile
managementpracticestobeafadandnotaselfsustainingbusinessmodel.Still,implementationofagile
managementpracticescanimprovecorecompetencieswithinacompanyandultimatelyleadtogreater
competitiveadvantagebyassemblingspecializedteamswithnonconventionalauthority,stressing
customersatisfaction,andadoptingvaluesforinnovationandopennessoforganizationalprocesses.
Howdoesmanagementstructureacompanytouseagilemanagementandcreatean
innovativeeffectiveorganization?Therearefivemajorshiftsthatmanagementmustinstillinan
organizationtomakeitagile.Theseareshiftsthatmustbemadeinitially.However,ifmanagementfails
toestablishthesechangesasapermanentculture,employeesmayrevertbacktooldways.Thereforeit
isimperativethatmanagementfirstmakethesechanges,andthenvisiblyandactivelypromotethemto
maintainanagilecultureintheworkplace.
First,theremustbeashiftinthefirmsbottomlinefrommaximizing
shareholdervaluetocustomerdelight(Denning).Shareholdervalueisobviouslyimportant,butpaying
customersarewhatreallyincreaseshareholdervalue.Makingcustomershappyandsatisfiedkeeps
themcomingbackandpromotesthequalityoftheorganization.Sowhencustomerdelightisthe

primaryfocus,salesincreasewhichinturnincreasesprofitsandshareholdervalue.
Managersshouldbeenablersratherthancontrollers.Artistsdonotcreateamazing
masterpiecesbecausetheirmanagerislookingovertheirshouldertellingthemwheretostrokethe
brush.Inthesamemanner,innovativesolutionstobusinessproblemsdonthappenbecausemanagers
telltheirworkerstocreateaninnovativesolution.However,iftherewerenomanagementatall,noone
wouldgetanythingdone.Therefore,itisnecessaryformanagerstoguidetheagilecreativeprocess
along.Nottostifleitwithstringentrules,buttohaveasetofguidelinesthatenablethecreativeprocess
toworkfreely,whileguidingittoasuccessfulconclusion.
Managersmustpromotefacetofaceconversationandinteraction,bothwithinthe
organizationandwithcustomers.Muchofcommunicationislostinelectronicmediasuchasphonesand
email.Bodylanguageandmanyemotionalresponsesarelostinthesemedia.Facetoface
conversationpromotesgroupcohesionandgoodrelationshipswithinthegroup.Interactioncreates
relationshipssothatemployeesknoweachothersideasandpreferencesmoreclearly,creatingafaster,
morecohesiveteamenvironment.Questionsordisagreementsarealsoresolvedmuchmorequickly
throughfacetofaceconversationsinceallthequestionscanbeaskedbackandforthquicklyuntila
resolutionismet.Facetofaceinteractionalsocreatesagoodstandingrelationshipwithcustomers.An
employeewillworkmorediligentlyforafriendlycustomertheyhavemetandshookhandswiththanan
anonymousbuyerknownonlythroughemails.
Managersmustthinkintermsofvaluingcontinuousimprovementandsustainability,
ratherthanpuredollargain.Thismeansthatthefocusisonstayingaheadofthepack,ratherthan
catchinguptothem.Agileisaboutinnovation,andquickturnaround.Thismeansaction,notreaction.

Often,creatingnewandinnovativesolutionstoproblemsisnottheleastexpensiveoption.Butthe
benefitsofdevelopinganentirelynewproductorservicetocustomersinneedcanbeincredible.
Therefore,itisnecessarytoregardcontinuousimprovementtokeepaheadofthecompetitionasfar
morevaluablethansimpleeconomicvalueofproducts.
Onceanorganizationhasimplementedthefivemajorshiftsofagilepractices,managementcanfocuson
buildingandmaintainingitsorganizationscompetitiveadvantage.Competitiveadvantageisdefinedas
theabilityofanorganizationtoproducegoodsorservicesmoreeffectivelythancompetitors,thereby
outperformingthem(Kinicki8).Thissuggeststhatcorporationswithoutacompetitiveadvantageinthe
marketplaceareextremelysusceptibletofinancialdistress.Inthecaseofagilemanagement,advantage
comesthroughtheorganizationsabilitytopleasetheclientdirectlywithimmediatesolutions,superior
products,aswellasitsabilitytoinstituteanatmosphereofinnovation.
Thefirststeptowardthosetwogoalsisbuildingsmallcohesiveteams.Allowingteamstoselforganize
oftencreatesagreatersenseofcommunityandpassionamongteammemberscomparedtothose
assignedtoagroupofpeoplethatmaybeunfamiliarorincompatiblewitheachother.Strongteams
equalsuperiorcommunicationandsuperiorcommunicationiskeytotheproperworkingofagile
principles.ThenameAgilecomesfromapractitionersabilitytoadjuststrategies,methods,andeven
productdevelopmentassoonasaneedforchangeisdetermined.
Constantcommunicationbetweenteammembers,management,andclientsisparamountinrecognizing
thoseneedsandadaptingaccordingly.Thisdramaticallyincreasestheefficiencyandproductivityofthe
team,andbyextension,theorganization.Forexample,asoftwaredeveloperinatraditional
managementsettingwouldfirstcreateausableproduct,andthensenditofftobetested.Afteraperiod

oftimehewouldreceivefeedbackinordertomakechangestohissectionoftheprogram,andstartthe
processoveragain.
Conversely,BlizzardEntertainment,creatorofthepopularcomputergameWorldofWarcraftand
agilemanagementpractitionerhasteamsthatareconstantlytestingindividualsectionsofprogramsto
findbugsorglitchesbeforetheyhaveachancetoworktheirwayintothefinishedproduct.Atthesame
time,teamsareinconstantcommunicationwithconsumers.Blizzardissocommittedtolisteningtothe
voicesoftheiraudienceandteammembers,aportionofthecompanysmissionstatementreads,Great
ideascancomefromanywhere.BlizzardEntertainmentiswhatitistodaybecauseofthevoicesofour
playersandofeachmemberofthecompany.Everyemployeeisencouragedtospeakup,listen,be
respectfulofotheropinions,andembracecriticismasjustanotheravenueforgreatideas.Inthisway,
theycanrespondimmediatelytoanycustomerconcernsormodificationstotheirneeds.This
meanslesstimespentsearchingforpotentialproblemswhichleadstomoretimespentcrafting
eachprojecttothedemandsoftheiraudience.Thiscontinuestoendeartheorganizationtotheir
fansandhelpstobuildupitspublicimage.

Thebenefitsofgoodcommunicationarenotlimitedtocustomersatisfaction.Thesinglemostinfluential
factorinenhancingjobsatisfactionandgroupcohesivenessissuperiorsubordinatecommunication
(Baird).Agilemanagershaveabuiltinadvantageinboostingteammoralebydintoftheorganizational
structure.Thefactthattheemployeesalsocommunicatedirectlywithcustomerscanleadtoagreater
feelingofimportancethusincreasingemployeeengagementwhiledecreasingturnover.
Goodcommunicationandfastsolutionsarenecessarytokeepclientshappynow,butlookingahead
andsolvingproblemsthathaveyettobeidentifiedisessentialinmaintaininganorganizations
competitiveedge.Simplyput,innovationcanbethedifferencebetweenclaimingbankruptcyandmaking

theFortune500list.CCPaceSystemsunderstandsthismorethanmost.Notonlyhastheservice
managementconsultingcompanyadoptedAgilemanagementpractices,ithasalreadysuccessfully
coachedover100projectsandworkedtodevelopagileprinciplesamongsomeoftheFortune500.
Withinnovationbeingsuchacriticalelementinthewellbeingofacompany,managersshouldaspireto
createacultureofinnovationfortheiremployees.Managersimplementingagilepracticespromotesuch
aculturebyadoptingsixprinciples.
Thefirstprinciple,andpossiblythemostimportant,istofollowavision.Theguidingvision
shouldbe,asMargaretWheatleysays,astatementofthegreaterpurposeanddreamsofthe
organization(CCPace).Taskscanbecomedisassociatedfromtheoverallgoalsoftheorganization
andthereforetendtolimitanemployeespotential.Employeesencouragedtofollowavision,however,
tendtobehighlymotivatedandfreethinking.TheleadershipatCCPaceIndustriesmaintainsthe
positionthatbyestablishingaguidingvision,agilemanagerspromoteaplanningprocessthatsetsintent
anddesiredoutcome,whilepreservingflexibilityforteaminnovationandautonomy(CCPace).
Agilemanagersarealsoconcernedwithencouragingteamworkandcollaborationwithinthe
company.Inlargegroups,conflictingopinionsandcompetitivetendenciescanstifleprogress.When
teamscoordinateproperly,strategicallyaccountingforindividualstrengthsandweaknesses,theresults
exceedexpectation.Agilemanagersmustembodythedesirednormforteamrelationsbytreatingeach
personwithrespectandgettingtoknoweachindividualonapersonallevel(CCPace).Bycreating
opportunitiesforemployeestosocializewitheachother,agilemanagersassisttheiremployeesin
creatingpositiverelationshipswiththeircoworkers(CCPace).Theteamorientedatmosphereand
respectfulcommunicationsinspiredbyagilemanagersultimatelyleadstoimprovedcreativityand

productivity.
Agilemanagerssetsimplerulesinplacethathelpsupporttheguidingvisionofthecompany.
Whencompanypoliciesandcodesofconductbecomeelaborateandornumerous,theyrestrictan
employeeswillingnesstotakeunexploredavenues.Insuchanatmosphere,creativethinkingis
associatedwithdisciplinaryactionortermination.Byadoptingasimplesetofrules,agilemanagers
provideclearboundaries,butnotsomuchastorestricttheautonomyandcreativityoftheteam(CC
Pace).
Knowledgesharingprocessesareanothertoolusedbyagilemanagerstopromoteinnovation.
AccordingtoCCPaceSystems,informationisthelifebloodofchangeandadaptation.Whenproblems
arisewithinanorganization,itisverylikelythatasolutionrestsinthemindofoneormoreemployees.
Thekeyisbringingtheseuntappedresourcestothesurfacetobeutilizedincreatingvalueforthe
company.Theeffortsofagilemanagerstopromoteknowledgesharingincludecreatingopenaccessto
information,givingcollectiveprojectownershiptoemployees,providingmeansofcommunication
betweenemployeesandcustomers,andschedulingfreeformstatusmeetingsforinformationexchange
(CCPace).Intheirefforts,agilemanagerspermitthecompanytoquicklyrespondtocustomerneeds.
Managersthatplanprojectsonamicroscopiclevelfailtoaccountfortheunpredictablenature
ofcorporatesociety.Itissomewhatnaivetothinkthateveryaspectofaprojectwillgoaccordingtoa
plan.Agilemanagersapproachprojectplanningwithalighttouchmindsetplacingfaithintheirteams
capabilities.Byplanningwithalighttouch,teamsaregivenroomforinnovation,creativityandrapid
responsetodynamicenvironments(CCPace).Thisisofutmostimportanceconsideringthat
competitiveadvantagecanalsobecreatedthroughresponsivenesstocustomers(Kinicki8).

Thefinalprincipleinagilemanagementisvigilance.Inordertoreinforcetheguidingvision,
fosterteamworkandcollaboration,establishsimpleyetpracticalrules,createusefulknowledgesharing
processes,andmaintainorderthroughalighttouch,theagilemanagermustbeconstantlyvigilant(CC
Pace).Throughmonitoringtheteam,projectprogressiseasilytrackedandtheneedforadjustmentscan
bequicklyrecognized.TheHawthornestudiesconductedbyEltonMayointhelate1920ssuggestthat
productivitycanbeincreasedbymerelybyamanagerbeingattentiveandrelatingtohisemployees
(Anteby).Thissuggeststhattheagilemanagersdesiretowatchovertheprojectteamwilllikely
producepositiveresults.
Still,notallorganizationsbelievethatagilemanagementpracticesaregoodforbusiness.Therearesome
problemstoconsiderwhenimplementingthemethodology.However,theycanbeovercomewithproper
planningandawareness.Whileselfmanagedteamshavenumerousadvantages,theamountofcontrol
theyhaveoverthemselvescanleadthemdownsomeunproductiveavenues.Agileteamshaveatendency
tonarrowtheirfocussomuchastolosesightoflargerorganizationalgoalsandcontext.Whenthis
happens,managershavetobeadeptatcommunicatingorganizationalneedstoteamsclearlyandquickly
astoavoidanyfurtherdetours.Onewayofkeepingteamsontrackistomakesurethattheyconstantly
reviewtheirworkinthecontextofconsumerdemand.Amotivated,innovative,welloiledteammight
developedthemostimpressive,spectacularlyengineeredtechnologyintheworld,butifnooneneedsit,
theireffort,aswellastheirorganizationscapitalandinvestment,iswasted.
Anotherpotentialdrawbacktoagilemanagementpracticesisinherentbecauseofthewayateamswork
isdesigned.Becauseteamsaresosmallandintimate,managersmaybegintofeeltoomuchapartofthe
teamandstartworkingontheprojectinsteadofworkingabouttheproject:thatis,ignoringtheirown
dutiesinanefforttoreallyhelptheteam.Theymayjustifythisbehaviorasbecomingmoreofaservant
leader.Butwhenactivitiessuchasadministrativepaperworkandothermanagerialtasksareleftundone,

anyprogressmadebytheteamisinjeopardyduetoamanagernotinlinewithhisrole.Itisvital,then,
thatrolesamongteammembersandmanagementbeclearlyunderstoodandrespected.
Ultimatelythesuccessorfailureofaprojectrestsontheteamsabilitytoworkwitheachother.The
managermustrelyonhisshareofhuman,orsoft,skillsandberesponsibleforfacilitatingeffective
teamworkthroughlearningthepersonalities,quirks,andmotivationsoftheindividualteammembers.
Thoughagilemanagementpracticesareofanontraditionalsort,traditionalmanagementproceduresare
stillvaluable.Thefluidityandconstantfluxoftheworkingsituationcanleadtodifficultiesinplanning.
Oftengoalsaresetthatareunspecific,unquantifiable,andunattainable.Anyplanningshouldalways
followS.M.A.R.T.planningprotocols.ASMARTgoalisonethatisspecific,measurable,attainable,
resultsoriented,andhastargetdates.(Kinicki147)Forexample,inasoftwaredevelopmentsettinga
managermaysetagoallikewritingacertainnumberoflinesofcodeinaweek,makingasetnumberof
phonecallstoclients,orrunningaspecificdiagnostictestbyapredetermineddate.Managerscanuse
theirknowledgeoftheirteamspeculiaritiestocustomizeanappropriategameplantomaximizetheir
uniquetalents.
Anyradicallyinnovativechangeisdifficultandbringsuncertaintyandtension.Transitioningfroma
traditionalstructuretoanagileoneisnodifferent.Butpotentialgainsinproductqualityandefficiency
alonemakeitachangeworthcarefulconsideration.Handledcorrectly,suchatransitioncouldimprove
organizationalcommunication,employeeengagement,andcreateandcultureoforganizationalinnovation.
Problemswillinevitablyarise,butpreparedmanagementshouldbeabletopredictandplanformost
contingencies.Aboveall,consideringagilemanagementpracticesmustbedependentontheneedsand
demandofthemarketplace.Cost,complexity,andfearofchangemustnotoutweightheprimaryobjective
ofeveryagilemanagementpractice:focusingonconsumerdelight.

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