Increasing complexity means that the control of processes does not always produce the intended effects. Cause-effect relationships are becoming increasingly unclear. A step-by-step approach and corrections where necessary therefore determine the management of processes in companies. Agile methods are particularly suitable for this, such as Frank Ahlrichs, author of the article "Effects of SAFe® on the management of business processes" in the anthology "Agility in companies" in the interview.
Editor's note: Click here to go directly to part 1 of the interview with Frank Ahlrichs "We need to manage processes differently - Interview with Frank Ahlrichs"
Controlling processes requires experience and skill
Katja Heumader: It is often said that we live in a complex world. What does that mean in concrete terms?
Frank Ahlrichs: In contrast to complicated decision-making situations, complex decision-making situations have no recognizable cause-and-effect relationships. This changes everything. If the decision-maker can no longer recognize what a defined measure will actually change, it is no longer possible to control processes according to the previous pattern. Then the only thing that helps is experience and ability to try things out in the right direction to see whether the desired effects are achieved. If yes, you continue in this direction, if no, the decision-maker has to try out a different path. This is a different paradigm of corporate management and requires a different way of working.
KH: Why is agile management the answer to this complex environment?
FA: Agility covers precisely this step-by-step way of thinking and working that is required in complex situations. In addition, agile leadership is important to enable this way of working with agile methods in a meaningful way.
KH: What methods does SAFe offer for dealing with complexity?®-Framework?
FA: As a framework, SAFe® is an entire toolbox and, as an integrated model, offers practically all known agile methods, both for the strategic design of the service portfolio and for the operational level of development and execution. Such methods include design thinking, for example, OKRScrum and Kanban.
Lean and agile are based on the same principles
KH: SAFe® complements agile management with lean management. What are the benefits?
FA: We are familiar with the same principles from lean management that are also known in agile management:
- Look at everything from the customer's perspective,
- Focus on value creation,
- Maintain a steady flow of benefits, et cetera.
Lean and agile belong together. They alternate constantly, so to speak. Agile phases allow for realignment in the event of changing framework conditions, while lean phases allow tasks to be processed very efficiently. The application of SAFe® thus creates both high effectiveness and high efficiency.
KH: What do these findings mean for the management of processes in companies?
FA: In principle, processes are still managed using clear key figures in the two categories of result key figures and performance key figures. The content of these key figures can change if, for example, the focus is on customer benefit, the outcome, and no longer on the output, i.e. the products produced or delivered. There is also a trend towards more strategic key figures. And even fewer financial KPIs are being used than in process management anyway.
In addition to lagging indicators, which measure the past performance of processes once they have been completed, new elements in process management include leading indicators, which provide an indication of the expected process performance as early as possible. Such leading indicators can come from customer feedback on preliminary products.
KH: Mr. Ahlrichs, thank you very much for the interesting interview.
The interview with Frank Ahlrichs was conducted by Dr. Katja Heumader for the TCI editorial team.
"Agility in companies": theoretically sound and practical
The focus of "Agility in Companies" is on the practical application of the concepts. In addition to an introduction to the theoretical foundations, the contributors to the anthology cover various areas: Corporate and personnel management, organizational management, evaluation and controlling, decision-making behavior, roles in projects and the management of business processes.
"Agility in Companies" is aimed at internal and external practitioners for whom transformation management is at the center of their tasks. Coaches, business managers, managing directors and other decision-makers will benefit from the comprehensive perspectives in this anthology, as will academics and lecturers specializing in organization, agile management, project management, business management, change management, product management, development, process management and strategic management.
Note from the editors:
Buy the entire book or individual chapters directly here as eBook for Euro 46.99 (complete edition) or Euro 26.70 (individual chapters)!
Or order the anthology as a high-quality Hardcover for Euro 59,99!
Source cover image: © Oleksii | Adobe Stock