Why Agile for Turnarounds? Because Adaptability Beats Command and Control
In times of crisis, companies often think they need a “dictator” at the top to solve their problems. But Agile methods show us a better way. Agile is about small, customer-focused teams that move quickly and adapt to new information, which is exactly what’s needed in high-stakes turnarounds. Let’s dive into how Agile principles helped WorleyParsons, a global engineering and construction firm, transform from the ground up.
Agile Isn’t Just for Tech Companies 📲
Agile is typically associated with tech, but big companies in traditional industries are realizing the power of Agile in a crisis. For WorleyParsons, the Agile approach became the solution when oil prices plummeted, cutting demand for their services by more than half. Instead of top-down decisions, hundreds of Agile teams were set up across the company, allowing frontline employees to make quick, impactful decisions.
Key Moves That Transformed WorleyParsons 🔑
- Breaking Down Work into Sprints: Teams worked in sprints to manage their turnaround, making fast decisions on critical areas like IT infrastructure, support functions, and customer responses.
- Empowering Local Teams: Instead of orders from the top, local teams identified their own opportunities for cost-cutting and efficiency improvements, like consolidating support functions and banning unnecessary travel.
- Rapid Results: In just the first 100 days, the Agile teams boosted the company’s cash position by 20% and reduced debt. Within a year, they achieved $400 million in cost savings and increased margins significantly.
Agile Modifications for Turnaround Success 🛠️
Agile turnarounds do require some adjustments:
- Sprints Get Shorter: Traditional Agile sprints range from one to four weeks, but in a turnaround, teams may need to deliver results daily.
- Longer Hours: Unlike standard Agile, a turnaround often demands intense work hours for a few months to stabilize the company.
- Decision-Making with Less Information: Teams may need to make calls without all the data, focusing on speed over perfection.
Five Key Actions for Agile Turnaround Leaders 📈
- Overcommunicate the Strategy: Leaders make sure everyone knows the vision, not just what to do but why, so decisions are aligned even when decentralized.
- Coach, Don’t Command: In a crisis, employees may hesitate to make decisions. Leaders act as coaches to build confidence and encourage ownership.
- Strengthen Communication Lines: Tools like dashboards and team updates allow everyone to see what each team is working on, reducing bottlenecks.
- Emphasize Learning Over Perfection: Agile leaders prioritize quick learning cycles and progress over precision, allowing teams to adapt as they go.
- Expand Trust and Collaboration: Shift rewards and recognition from individual performance to team achievements, which encourages cross-functional collaboration.
Why Agile Is Better for Turnarounds 🚀
The traditional crisis model involves a small team at the top deciding for everyone else. But Agile empowers the entire organization. With Agile, hundreds of employees tackle issues directly at their source, resulting in faster decisions, more accountability, and a skilled workforce ready for post-crisis growth.
Key Takeaways for Successful Agile Turnarounds
- Align the Entire Team: Overcommunicate goals to ensure everyone is working toward the same outcome.
- Focus on Coaching: Shift from command to a supportive coaching style.
- Use Transparent Communication: Strengthen inter-team communication with clear dashboards and updates.
- Prioritize Quick Learning: Emphasize learning and iteration over waiting for perfect solutions.
- Reward Team Success: Recognize and reward team achievements to foster collaboration.
