Network versus hierarchy

Management in an Agile Organisation

The last 10 years of my career I have been involved in the Agile transformation of a large and very dynamic multi-national. I had the opportunity to experience the journey from the first bottom-up initiatives via a supported pilot, to a full-blown top-down Agile transformation. In this article I like to share my personal observations and experiences of this journey and I will especially focus on the role of management.

There is an interesting but complicated relation between an Agile organisation and management. They can’t live with and can’t live without each other. In this serie of blogs I also will share some suggestions how they can “live together” since an Agile organisation without management will not be successful after all.

Challenges faced

Obviously we faced many challenges in this large transformation during the Covid-19 pandemic. However, since this series of blogs is about the role of management in an Agile organisation, let’s focus on challenges related to this topic.

Network versus hierarchy

Distinguishing between hierarchy and network organisation was a concept that we introduced during the Agile transformation. In this concept the delivery was done in a relative flexible, multi functional network organisation in which the composition of teams and value streams was defined to optimise the flow of value. This network organisation is managed (designed, monitored and adjusted) by the hierarchy in which also the people managers resides that are responsible for organisation strategy and building competences needed in the network organisation.

Managers in the hierarchy have always been responsible for delivery themselves and found it hard not to overrule one of the leadership roles in the network organisation. Especially when their hierarchal counterparts on the business side asked the to step in when they were not happy about delivery.

Recommendation

Define your target audience as brought as possible. Not only the people that are going to work agile, and their stakeholders are impacted. Also the hierarchical organisation, including the managers and their stakeholders must be prepared for the transformation.

Explain thoroughly what it means to be a manager in an Agile organisation. What is expected from this role and also what is not expected (anymore) from this role. Involve the senior sponsor in this conversation.