Why AI Makes Agility a Strategic Imperative
by Cliff Berg and Stephen Villaescusa
Agility is now a strategic imperative. It was once the province of Agile coaches and development teams, but the increasing complexity of today’s issues, coupled with the accelerating rate of change, has made agility the strategic differentiator. We are talking about true business agility – not Agile frameworks. We are talking about the ability to anticipate technology changes, and be ready to react quickly whether change is anticipated or not.
Agility is not for Agile coaches anymore. It is for leaders. And we need to understand what it really means. It’s not Agile frameworks. It’s things like having leaders who know how to create a learning organization. It’s leaders knowing how to orchestrate decentralized decisionmaking. It’s executives knowing how to encourage innovation.
In a recent agile.org.uk article, Cliff explained why so many companies failed to anticipate the emergence of powerful generative AI, even though it was entirely predictable, and how that caused those companies to lose precious time to market and have to shelve projects that had been underway. This was a gigantic failure of business strategic planning. If we can’t foresee the easily foreseeable, how can we be ready for what is truly unpredictable? This failure proves that most businesses are anything but agile, in a true sense.
Why It Matters
And it’s going to get worse. In an April 2024 interview, Ezra Klein quoted Anthropic CEO Dario Amodei (the creator of ChatGPT),
“Amodei believes we’re just getting started, that we’re just hitting the steep part of the curve now. He thinks the kinds of systems we’ve imagined in sci-fi, they’re coming not in 20 or 40 years, not in 10 or 15 years, they’re coming in two to five years.”
Change is accelerating.
So we decided to ask the AI itself what it thought. We asked Anthropic’s Claude AI what have been the biggest organizational disruptions over the last 10 years. You can see its responses in chart 1. It’s pretty good – better than what most people would list.
We then asked it,
“What do you envision will be the biggest disruptors over the next 5 years?”
Here is where it gets interesting. Claude identified itself: “Generative AI and Creative Automation”, and it was astute enough to point to how this will impact work – specifically, that AI “will enable organizations to automate creative tasks, streamline processes, and unlock new possibilities for innovation.”
In other words, the way that people work will change, and it will lead to an enormous boost in productivity, creativity, and innovation.
Finally, we asked Claude about the impact on the way that managers must lead. We asked,
“How will these disruptions change the way leaders lead?”
Claude said that leaders will need to:
Embrace Agility and Adaptability.
Foster Innovation and Creativity.
Prioritize Continuous Learning.
Emphasizing Ethical and Responsible Leadership.
Build Resilience and Adaptability.
Embrace Decentralized Decision-Making.
Focus on Sustainability and Social Impact.
Leverage Data and Analytics.
Then it summarized these by saying (bold added):
“Overall, the disruptive landscape of the next five years will require leaders to be more agile, adaptive, innovative, and socially responsible. They will need to navigate complex challenges, make difficult trade-offs, and lead their organizations through unprecedented change. The most successful leaders will be those who can embrace these disruptions, harness the power of emerging technologies, and create value for all stakeholders.”
Do we trust what Claude says? Claude does not live in the real world, so it does not see and experience what we do, but it does read a lot – more than any of us. Its opinions are an amalgamation of consensus spanning all disciplines of thought. And Claude can think as well: it’s not thinking as you and I know if, but Claude’s creator created OpenAI’s GPT, and GPT-4 has been shown to be able to reason and apply abstract ideas across domains: these are unquestionably forms of thinking even if they are not sentient forms.
These mean that what Claude says has some credibility: not as the final word, but what Claude says can be expected to be deeply informed and thoughtful most of the time.
So let’s consider what it said.
I’d like to focus on items 1, 2, 3, 5, and 6:
Embrace Agility and Adaptability.
Foster Innovation and Creativity.
Prioritize Continuous Learning.
Emphasizing Ethical and Responsible Leadership.
Build Resilience and Adaptability.
Embrace Decentralized Decision-Making.
Focus on Sustainability and Social Impact.
Leverage Data and Analytics.
These are all aspects of agility: 5 out of eight of Claude’s recommendations are about the need for agility.
So while Claude has identified AI as one of the biggest disruptions so far, and predicted that it will dramatically change work, its primary advice is about agility.
While Claude identified AI as one of the biggest disruptions, its primary advice is about agility.
Yes, we all need to get AI into our products. And we need to help our people to learn how to use AI. But the latter is a particular domain of continuous learning, and it’s not enough. We need the other things in the list too.
In fact, the way to position one’s organization to respond to the coming disruptions is to make it more agile, in a true sense. Not in an Agile “framework” sense, but in terms of leaders who promote continuous learning, decentralized decision-making, an instinct to build in resilience and adaptability, and who actively foster innovation and creativity.
These are all things that we focus deeply on in our Agile 2 Foundations leadership development program.
So what are you waiting for?
Chart 1: What have been the biggest organizational disruptions over the last 10 years?
Claude’s response:
Over the last decade (2014-2024), several significant trends and technologies have emerged as major disruptors for organizations across various industries. Here are some of the most notable organizational disruptors:
1. Digital Transformation: The rapid adoption of digital technologies has fundamentally changed how organizations operate, interact with customers, and deliver products and services. Cloud computing, artificial intelligence, big data analytics, and the Internet of Things (IoT) have been key drivers of this transformation.
2. Remote Work and Collaboration: The COVID-19 pandemic accelerated the shift towards remote work, forcing organizations to adapt quickly and embrace virtual collaboration tools. This has led to a lasting impact on the traditional office environment and has redefined the nature of work for many industries.
3. Artificial Intelligence and Automation: AI and automation have revolutionized various aspects of business operations, from customer service and marketing to supply chain management and decision-making. These technologies have enabled organizations to streamline processes, reduce costs, and improve efficiency.
4. Cybersecurity Threats: With the increasing reliance on digital technologies, cybersecurity has become a critical concern for organizations. The sophistication and frequency of cyber attacks have forced companies to invest heavily in security measures and adopt a proactive approach to risk management.
5. Gig Economy and Freelancing: The rise of the gig economy and freelancing has disrupted traditional employment models. Organizations have had to adapt to a more flexible workforce, leveraging on-demand talent and project-based hiring.
6. Sustainability and ESG (Environmental, Social, and Governance): Growing awareness of environmental and social issues has put pressure on organizations to prioritize sustainability and ESG practices. Companies are increasingly being held accountable for their impact on the environment and society, leading to a shift in business strategies and reporting practices.
7. Customer Experience and Personalization: The focus on delivering exceptional customer experiences and personalized offerings has become a key differentiator for businesses. Organizations have had to invest in customer-centric strategies, leveraging data analytics and omnichannel approaches to meet evolving customer expectations.
8. Globalization and Supply Chain Disruptions: Geopolitical events, trade tensions, and the COVID-19 pandemic have highlighted the vulnerabilities of global supply chains. Organizations have had to reevaluate their supply chain strategies, focusing on resilience, diversification, and localization.
These disruptors have forced organizations to adapt, innovate, and redefine their strategies to remain competitive in an ever-changing business landscape. The ability to navigate these disruptions and embrace change has become a critical success factor for organizations in the last decade.
Chart 2: What do you envision will be the biggest disruptors over the next 5 years?
Claude’s response:
Looking ahead to the next five years (2024-2029), several emerging trends and technologies are poised to significantly disrupt organizations. While some of these disruptors are already making an impact, they are expected to gain even more prominence in the near future. Here are some of the most likely disruptors for the next five years:
1. Generative AI and Creative Automation: The rapid advancements in generative AI, such as OpenAI's GPT-4 and DALL-E, are set to revolutionize content creation, design, and problem-solving. As these AI models become more sophisticated, they will enable organizations to automate creative tasks, streamline processes, and unlock new possibilities for innovation.
2. Quantum Computing: As quantum computing technology matures, it has the potential to solve complex problems that are beyond the capabilities of classical computers. This could have significant implications for industries such as finance, healthcare, and logistics, enabling organizations to optimize decision-making, enhance security, and accelerate scientific discoveries.
3. 5G and Edge Computing: The widespread adoption of 5G networks and edge computing will enable real-time data processing and low-latency communication. This will unlock new opportunities for IoT, autonomous vehicles, remote healthcare, and immersive experiences, transforming industries and creating new business models.
4. Decentralized Finance (DeFi) and Blockchain: The growth of decentralized finance and blockchain technology is set to disrupt traditional financial systems. With the potential for increased transparency, security, and accessibility, DeFi could reshape the way organizations manage financial transactions, raise capital, and interact with customers.
5. Augmented Reality (AR) and Virtual Reality (VR): As AR and VR technologies become more sophisticated and accessible, they will transform the way organizations engage with customers, train employees, and design products. Immersive experiences will become increasingly common in retail, education, entertainment, and remote collaboration.
6. Sustainable Technologies and Circular Economy: With the growing urgency to address climate change, organizations will face increased pressure to adopt sustainable technologies and practices. Circular economy principles, renewable energy, and green hydrogen will gain prominence, driving innovation and transforming supply chains.
7. Personalized Healthcare and Biotech: Advancements in personalized medicine, gene editing, and biotech will disrupt the healthcare industry. Organizations will leverage data analytics, AI, and IoT to develop targeted therapies, improve patient outcomes, and transform healthcare delivery models.
8. Geopolitical Shifts and Deglobalization: The changing geopolitical landscape, trade tensions, and the focus on national security will lead to a shift towards deglobalization. Organizations will need to navigate complex geopolitical risks, adapt to regional regulations, and build resilient local supply chains.
These disruptors will require organizations to be agile, adaptable, and proactive in embracing change. The ability to harness these emerging technologies and trends will be crucial for organizations to stay competitive and thrive in the rapidly evolving business landscape of the next five years.
Chart 3: How will these disruptions change the way leaders lead?
Claude’s response:
The disruptive trends and technologies of the next five years will have a profound impact on the way leaders behave and navigate their organizations through change. Here are some ways in which leadership behaviors are likely to evolve:
1. Embracing Agility and Adaptability: Leaders will need to cultivate a mindset of agility and adaptability to respond quickly to changing market conditions, customer needs, and technological advancements. They will need to be comfortable with uncertainty, willing to experiment, and able to pivot strategies when necessary.
2. Fostering Innovation and Creativity: As disruptive technologies like generative AI and AR/VR become more prevalent, leaders will need to foster a culture of innovation and creativity within their organizations. They will need to encourage experimentation, risk-taking, and out-of-the-box thinking to stay ahead of the curve.
3. Prioritizing Continuous Learning: The rapid pace of technological change will require leaders to prioritize continuous learning and upskilling. They will need to invest in their own development and create learning opportunities for their teams to ensure that the organization has the necessary skills and knowledge to leverage emerging technologies.
4. Emphasizing Ethical and Responsible Leadership: As organizations grapple with the ethical implications of disruptive technologies like AI and blockchain, leaders will need to prioritize ethical and responsible decision-making. They will need to consider the social, environmental, and governance impacts of their actions and ensure that their organizations operate with transparency and accountability.
5. Building Resilience and Adaptability: Geopolitical shifts, supply chain disruptions, and other external factors will require leaders to build resilience and adaptability into their organizations. They will need to develop contingency plans, diversify their supply chains, and foster a culture of resilience to weather unexpected challenges.
6. Embracing Decentralized Decision-Making: As organizations become more complex and distributed, leaders will need to embrace decentralized decision-making and empower their teams to make decisions closer to the point of impact. This will require a shift from top-down control to a more collaborative and networked approach to leadership.
7. Focusing on Sustainability and Social Impact: With the growing urgency to address climate change and social inequalities, leaders will need to prioritize sustainability and social impact in their decision-making. They will need to integrate ESG considerations into their strategies and operations and communicate their progress to stakeholders.
8. Leveraging Data and Analytics: As data becomes increasingly central to decision-making, leaders will need to become more data-literate and leverage analytics to drive insights and inform strategy. They will need to invest in data infrastructure and talent and create a culture of data-driven decision-making.
Overall, the disruptive landscape of the next five years will require leaders to be more agile, adaptive, innovative, and socially responsible. They will need to navigate complex challenges, make difficult trade-offs, and lead their organizations through unprecedented change. The most successful leaders will be those who can embrace these disruptions, harness the power of emerging technologies, and create value for all stakeholders.
