Four Organizational Shifts in Agile Transformation — Shift 1 From Traditional Silo Functions to Value-Based Teams
Organizational agile transformation entails four major shifts. Structural change from one of traditional silo functions to one of value-based teams is the first shift. Hereunder are the four steps it takes to realize it.
Step 1. Identify value drivers:
To change an organization’s structure into value based teams, the first step is to identify the value drivers of the organization in order to structure the business into value streams. Value drivers are values that distinguish the company’s products and services in its customers’ point of view, such as customer segment, product category, geographic area, or sales channel, etc.
Step 2. Identify value creation contributors:
The second step is to identify the contributors in each value creation process or value chain. Basically, anyone that is indispensable in converting the resources to a new product or service is a contributor in the value chain, such as a business line product manager, an engineer, a relevant R&D person, and a marketing expert, etc.
