Analysis of the critical factors in the transition to an agile organisation using  Friisberg Network Advisory

Our AI supported Organisational Development tool  (FNA) reveals the relationships and networks within a company. Coupled with the expert advisory support of Friisberg’s FNA consultants, this diagnostic enables our  clients to identify, visualise, and address issues. Together we can then manage and enhance relationships between business units and individuals.

Brief

The subject of our present case study is one of the key players in the Hungarian financial services market. In response to the rapidly and dynamically changing market environment, the company began the transition to agile operations by creating agile organisational units in each business area. Over time, management became divided as to how effectively these agile departments functioned, and the extent to which the staff involved were able to adapt to the new situation.

Approach

To monitor the operational efficiency of agile departments, we used Friisberg FNA methodology which, through network research, can easily and quickly see and analyse the real-time interaction network of employees, thus delivering large amounts of data to decision-makers about:

• Structures
• Factors blocking effective operations
• Individual management
• The presence, or absence, of competencies, key players or exit risks.

Our methodology was primarily based on an online questionnaire of 21 questions completed by staff in the areas involved in the analysis.

Findings

We identified the following critical factors that significantly limit effective operations:

• 19% of employees are involved in too many relationships. Our analysis revealed that employees retained the relationships they had acquired in the previous operating model and, in addition to these, began to build the relationships required by the new agile structure.
• 26% of employees receive information from too many places. This reflected a precarious situation in which the operational processes of the new organizational structure were not clear, so employees are constantly in search of information. This leads to a loss of focus, which significantly reduces efficiency.
• 18% of respondents feel that they do not receive enough information about the organization or their work. In the face of any change, it is paramount that goals, roles, and responsibilities are clear and unambiguous to everyone, and that information reaches everyone in a timely and continuous manner.
• We did not measure proactive initiative in 15% of employees. One of the essential characteristics of agile organisms is proactivity. In the event of a lack of information or even poorly structured problems, staff should be able to independently obtain the missing information or find a solution to problems they have not experienced before.
• 32% of managers do not pay enough attention to their subordinates. The former formal, hierarchical organizational culture continued to have an impact, with managers paying little attention to their employees, which can further increase uncertainty and reduce operational efficiency, especially in the current situation.
• There is little communication between the agile departments and the ensilage. As a result of the above, the functioning of agile organizations also reflect disturbances, and the lack of dialogue-based communication makes knowledge transfer difficult, which is also one of the driving forces of agile functioning.

Recommendations

• We defined the following tasks for our client in order to make the operation of agile organisational units more efficient:
• Roles, working relationships and processes must be clarified.
• The autonomy and responsibility of each employee must be increased.
• Open communication between agile departments needs to be strengthened.
• Development of leadership competencies.

Conclusion

We expect from the follow-up analysis, due in the next quarter, that the expected roles and processes will be clearly visible on the data visualisation graphs, and that the network of communication and cooperation between the organizational units will have significantly improved.

Read more about FNA here.