Shulou(Shulou.com)11/24 Report--

In the era of VUCA, the business environment is changing rapidly and the competition is fierce. Agile management is an effective means for enterprises and organizations to quickly seize the first opportunity, seek endogenous growth and establish long-term competitiveness. So how can organizations achieve agile business and business growth through data-driven?

At the "Guanyuan data 2023 Intelligent decision Summit and Product launch", which ended on October 20, Wang Yajun, author of "Enterprise is algorithm" and chief strategy officer of the former Longhu Group, brought the sharing of "becoming Agile: the Survival of individuals and organizations in the VUCA era", detailing the enterprise management paradigm, as well as the obstacles to digital transformation and practical solutions.

The following is an excerpt from Wang Yajun's wonderful sharing:

Now it is often mentioned that the present is a great change in a hundred years, but I think it is more than that, it may be a great change that has not happened in 300 years, and now it brings together three major turning points of trends.

First, over the past 30 years, the structural adjustment of market supply and demand, the real rapid development since the reform and opening up, and the changes in demographic structure and preferences.

Second, a hundred years, involving changes in understanding, the international situation is highly complex, the global gap between the rich and the poor.

Third, three hundred years, the technological singularity is approaching, breakthroughs in AI, meta-universe, gene editing and so on, as well as the lifestyle challenges brought about by the pressure of environmental capacity.

When the three turning points come together, we face the greatest uncertainty about the future than ever before.

How should enterprise management deal with this trend? There are many existing theories of business management, in the final analysis, there are only two paradigms-creationism and evolution.

Enterprise Management Paradigm: creationism, VS Evolutionism

Creationism "predicts the future", the enterprise strategy is clear and clear, confirm the target top-level design, the executive layer can be carried out according to the management's decision; the theory of evolution is difficult to predict the future, it needs to continue to evolve with the external environment. The common contents of management, such as strategy, implementation, innovation and so on, have very different or even opposite connotations in these two paradigms. In particular, the most difficult problem in management, transformation.

Transformation is a difficult thing. People, animals and plants all gradually grow from a cell to a large individual, but this is not the usual method of enterprise transformation. Common corporate transformation methodologies are spliced, such as a Transformers that can only run on the ground. If you want him to fly, you need to add wings and a jet engine.

The obstacle to such transformation lies in the "appearance". If you can see the results and forms, you can only work on the external form, but you can't see the process and growth, lack a sense of time, and it's hard to change for a long time. There is no internal change, and the change in form will return to its original state after a period of time. How to fundamentally realize the transformation and complete the evolution of the enterprise?

Before that, we need to discuss one question: what is evolution? The often seen evolutionary graph is a linear process that evolves step by step from a monkey to an upright man. If you regard evolution as a human being as a goal, if you keep changing, you will succeed in evolution. But this makes people ask the question: why can't today's monkeys evolve people? In fact, if you think about evolution from a real-world scene, that is, the first-person perspective, it is not a linear process, but a bifurcated process, an evolutionary tree. The third-person perspective of thinking, detached from the reality, implied the certainty of the current results after the description of history, fell into the "survivor deviation".

Bifurcation evolution is faced with choices at any point in time, and each choice represents a different consequence. This consequence may lead to extinction, may bring life, and "live" to continue to evolve. The purpose of evolution is to live, and so is enterprise. From the perspective of enterprises, the value of enterprises is to solve problems that other enterprises can not solve, so they can only constantly face choices and solve problems. From this point of view, there are only two main lines of enterprise management, one is decision-making, the other is cooperation.

Creationism is the top-level decision-making, lower-level implementation, only need to follow the top-level decision-making, it is difficult to have horizontal cooperation; evolution is to take a large-scale route to form distributed decision-making and distributed collaboration, which requires more people to make decisions and collaborate. How can tens of thousands of people and 100,000 people from different companies make high-quality decisions?

Self-similar fractal is a solution. Self-similar fractal is the best strategy to achieve scale in nature, such as the formation of snowflakes, the bifurcation of branches, the distribution of blood vessels and so on. The shape of each part is similar to that of the whole, which is also called fractal mathematically. The individual produced by fractal has the lowest cost in terms of transmission rate, which is the optimization strategy of nature.

Enterprise growth Formula based on Evolutionary Paradigm

According to the idea of "self-similar fractal", enterprise growth is a function of four key words: enterprise algorithm, distributed computing power, iteration and time.

What is an enterprise algorithm? All the management elements of an enterprise can be divided into three layers:

The bottom layer is the management system, which refers to the visual management content, including systems, processes, tools and methods, such as product design process, procurement process, performance appraisal system and so on.

The middle tier is the management strategy, which refers to the cross-disciplinary or professional management methodology, with its own logic closed loop, such as zero-based budget, business leading model BLM, IPD, product value engineering, etc.

The top level is the enterprise algorithm, which refers to the core decision-making basis, which is the most abstract and stable, including core business logic, core management logic, core values and so on.

Enterprise growth is also the process of creation and evolution of enterprise unique knowledge, which is the essence of Agile, which is particularly important in the era of AGI. Agility under the evolutionary paradigm is to constantly generate the unique ability of this organization, that is, to create useful knowledge and use it to guide action, generate value, and realize value.

Back to the digital transformation, from the perspective of current computing technology, more and more agile organizations are supported, such as cloud native, Serverless and other rapid deployment infrastructure; containers and micro services respond more quickly to business needs; light code, no code, etc. allow business people to develop directly, and large models, AGI and other further empower business people. Digital technology is becoming more and more agile, and DevOps is a core concept of Agile.

However, the agility of organizational management is high and low, and only with the deep integration of digital technology agility and organizational agility can digital value be fully realized. If the organizational agility is low, "traditional organization + agile digitization" brings pain, decision-making swings repeatedly; "traditional organization + digitalization" brings stability and stronger enterprise control; only with "agile organization + digitalization", enterprises can really achieve agile transformation.

Three principles of Agile and Digital Transformation

Many enterprises are talking about digital transformation and agile transformation, hoping to evolve into "future enterprises". In fact, there is a key element hidden in the future enterprise, that is, "agile organization". Only digital transformation, lack of organizational agility, will not be able to achieve the goals of the future enterprise.

Improving the success rate of agile and digital transformation has become the three principles of future enterprises:

First, top-down recognition, from top to bottom to establish a new understanding, promote the paradigm revolution, from the chairman, CEO, senior management team to the bottom, to form a consensus.

Second, the growth from the inside to the outside, using the enterprise algorithm to break through the professional barriers and the unity of knowledge and practice. Extract the knowledge of different industries as the commonness of enterprises. It takes a long time to run in.

Third, the integration of co-forming, digitization and organization of common agility, integration of co-performance, these two things need to be carried out at the same time.

This requires CDO and CIO to influence business units and CEO to establish a common language based on the organization's native agility. What is mentioned above is the growth of the enterprise, which is formed by the core algorithm, management strategy and management system, while the personal growth also has a common underlying logic, which is driven by the leadership power flywheel.

Hope to be able to enlighten you through this discussion, thinking about how to better cut into the business, influence and lead the business, so that the entire organization digital transformation, agile decision-making to cope with 30 years, 100 years, 300 years of great changes, can better survive!

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