AgileSHIFT Online Learning
The course is part of this learning path
This module looks at two more important concepts to help you understand the role AgileSHIFT plays in an organization. First, it investigates how organizational transformation takes place, and the importance of empowering individuals to make small incremental changes across the organization rather than relying on formal large-scale transformational change initiatives. Then it further develops the concept of value by describing the importance of co-creating value with customers and other stakeholders, and defining the path to value.
The objectives of this course are to provide you with and understanding of:
- Preparing for transformational change
- How the AgileSHIFT framework supports organizational transformation
- The path to value – outputs; outcomes; benefits and value
- The benefits of ongoing transformation
The target audience for the AgileSHIFT qualification is any employee of an organization that intends to adopt AgileSHIFT. This includes people who will become champions of the new working practice and employees from any part of the business who will contribute to the incremental improvements that will make up the wider change the organization requires.
There are no specific pre-requisites to study the AgileSHIFT course or for entry to the examination.
We welcome all feedback and suggestions - please contact us at firstname.lastname@example.org to let us know what you think.
The path to value
We looked at value creation in an earlier video when we introduced one of the important concepts of AgileSHIFT – that an organization must always seek to optimize the value it delivers. This helps it narrow the delta, or ‘threat gap’, and improve its performance.
Here’s Ady Dike, Principal Agile Learning Consultant at QA sharing her thoughts on why the creation of value is critical to an organization.
Value is not about doing stuff. It’s more about delivering outcomes that are perceived as beneficial. What is considered valuable by employees of an organization may be very different to what the customer considers valuable, and I would argue that the most important perspective on value is definitely an organization’s customers.
It stands to reason that as long as an organization is fulfilling the needs of its customers, it stands a very good chance of being profitable in the long run, which is the key reason why organizations need to continually deliver value.
Now, let’s take that a step further and look at the path to value. But, before we do, let’s think about who’s involved in creating value in an organization?
Who’s involved in creating value?
The first people we tend to think are those that work in in the organization – the Chief Executive, the Board, managers and, of course, all the staff. But an organization can’t create value on its own, it needs to be co-created with its suppliers and customers. So, creating value is a joint effort which is related to the context it’s being assessed in.
Customers can be internal or external. For example, the marketing team can be an internal customer of the IT team, or a retail organization can be the customer of a product supplier. And just because a product has been delivered to a customer, it doesn’t mean that value has been created – value can only be optimized with the involvement of the customer or the stakeholder – ultimately, it’s the customer who pays for value, so they decide what it is.
The ‘path to value’ has four steps – outputs, outcomes, benefits and then value:
Outputs are what’s delivered by the planned activity or project;
The outcome is the new operational state after using the outputs;
The benefits are the measurable improvements from the outcomes (which need to be perceived as advantages by one or more stakeholders); and
The value is the benefit delivered in proportion to the resources used to achieve them.
Here’s what it looks like in practice.
An organization who sells office stationery sees that their online sales are falling. They’ve looked at some of their competitors and worked out that their online checkout process has too many steps, which has resulted in a lot of abandoned ‘baskets’ and incomplete sales.
They’ve decided to fix this by redesigning their online shopping cart – which is the output;
This meant that less baskets are abandoned and more online transactions are completed – which is the outcome of the work;
The increase in completed transactions has improved revenue and profit – which is the benefit of doing the work; and
They’re now better equipped to convert website visitors to sales, which means an improved return on investment – the value.
Transformational change is probably not going to achieve the desired value if it’s limited to a few teams in the organization, or is looked at as a single isolated event. To be successful, transformation must be an ongoing process which:
Recognizes opportunities, threats and inefficiencies;
Takes appropriate actions across the organization to reduce these, and maximize opportunities;
Monitors the effectiveness of the changes; and
Starts the cycle again by identifying further opportunities, threats and inefficiencies – and then keeps going around the loop again.
In a volatile, uncertain, complex and ambiguous world, organizations must be more flexible, responsive and customer-focused by co-creating value more frequently, understanding and focusing on the customer experience and continually improving. AgileSHIFT focuses on all of these areas.
Before you move on, why not try the Using Value reflective activity to help you think about creating value in your organization.
You’ll also find some useful examples in the Making it Real guide.
About the Author
Tony has over 20 years’ experience in Business Development, Business Change, Consulting and Project/Programme Management working with public, private and third sector organisations.
He has helped organisations to design and create process and procedures to align ways of working with corporate strategy. A highly motivated and detailed solution provider utilising a wide range of methods and frameworks to provide structure whilst promoting creativity and innovation.
As a confident and self-motivated professional with excellent communication skills Tony is able to bring people together and get them working as a team quickly.
Tony is an Agile and Scrum trainer with a vast knowledge spanning IT Systems, Business Change, Programme and Project Management. With excellent presentation skills and a solid background, he ensures that all clients gain maximum benefit from his training. He has successfully guided those new to the industry through their initial training, helped experienced staff as they progress in their careers and worked at Director level advising on best use and practice, as well as tailoring courses to fulfil the exact needs of clients.