Agile Leaders are the beginning of modern management

In order to achieve success at the organizational level, we need to start management talent development program to create leaders who will help to grow a company, make quick decisions and stay ahead of others. Modern leadership style is no longer applying the traditional model of the “leader-follower”, i.e. one decides and the other executes orders. Nowadays, when most employees are from the category of creative workers and the company is looking for innovation and creative ideas to stay competitive, the leader-leader model is a more effective one, where the leaders’ main goal is to help others to be successful leaders. What is modern Agile management or Agile leadership about?

Excellent Agile Leader has four core competencies: Ability to define the vision, motivate, gain feedback, and ability to influence through themselves, others and system.

The ability to formulate a vision is the engine of change and motivation. A vision is not necessarily linked to product and business but should be focused on the organization and its purpose. The second competency is the ability to motivate and give the energy. It is a competence closely related to the vision. If you have a good vision, it motivates itself. Agile leadership builds on so-called internal motivation to strengthen the autonomy of individuals and teams. The third of Agile leader’s competences is feedback. Feedback is DNA component for Agile Organization together with openness and transparency. The art of getting system-level feedback is critical for the leader. The last is the art of influencing complex environments. Change things, people and their behavior, support and consolidate culture. Agile leadership begins with a change of self, your judgments, values, and behavior, style of work. Great leaders start with themselves as a role model, to change the way they show up, how they interact with others, and how they can inspire people around them to collaborate, create a team spirit, and become leaders. They are capable of working with the entire system and influence the whole organization and its culture.

Agile Leader-Wheel

Agile Leader Wheel also defines four supporting competencies to help leaders define the right approach. When is it better to decide and when decisions can be delegated and it’s better to collaborate. At the same time, when it’s better to take a role of facilitator and when start coaching. We do not talk that much about coaching individuals, which of course may be useful, but coaching the whole system – teams and organizations as a whole. Excellent Agile Leaders have not been born as Agile Leaders, but they are constantly looking for new ways to get better and to gain and strengthen the above-mentioned competencies.

Traditional metrics are dead, let’s kill KPIs

Most of the people, when you ask them, admit that KPIs are not any useful at their organizations. They don’t motivate, they don’t change people’s behavior to any better way. In the best case KPIs are usually a formal metric, in the worst case a way how to punish people. In modern organizations, which are built on top of collaboration and teams, the need for individual metrics disappeared. So what can you do instead?

If you have a bit of courage, you may try this: ask all team members to distribute for example 100$. They can give it to any team member, but can’t keep it for themselves. In a very short time, you get a very honest feedback. If you ask people to give Kudos or appreciations together with that, it’s awesome. Problem of bonus distribution solved. There are companies which distribute the bonuses not only within one team, but across the whole organization. To the receptionist, CEO, sales, developer. Your choice. We make it very transparent, so the system will correct any weird behavior as exchanging bonus money within two people. In general this is more theoretical question. I haven’t seen it happen but it comes out anytime we talk about it with managers. I guess it indicates lack of trust.

Another way how to do it when your organization is more Agile is to give every month people some money to their bonus account, you can keep them of give some to the others. Each month the random person from your company rolls a dice and if there is a six, the money is yours and we start to build another jackpot. When it’s any other number, they just continue in moving money as appreciation. As no one knows when the money is going to be paid, they don’t game it.

Finally, I have to admit that I don’t believe in any money bonuses. They are not going to help with real motivation and the risk of side effect is higher than possible outcome. So I would kill not only individual KPIs but bonuses as well. You can achieve better motivation by giving people autonomy, responsibility and clear purpose. And you can help them grow with coaching. It takes more time and energy then do KPIs and bonuses, but it brings higher results.