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The 5 skills of adaptive organizations

2,500 years ago, the Greek philosopher Heraclitus stated that "Change is the only constant." But just looking at the exponential acceleration of technological development over the last 60 years, we can see that this statement needs to be sharpened. Change is also changing. Dealing with it as an organization is therefore a difficult task. Despite all our experience and knowledge, we often see the need for change too late, complain about the slow pace, the technocratic approach and the limited results. And the next change already presents itself. It keeps us busy and we constantly talk about it at the boardroom table, in corridors and stand-ups. Do you recognize this?

  • Market developments are happening at lightning speed; we must respond in a timely manner.
  • Our customers demand that we respond to their needs earlier and better.
  • Fin-tech competition innovates faster than we do.
    With Agile working, we will solve it.
  • Our culture doesn't change much, if at all.
  • We want to become a learning organization.
  • We need adaptive leadership.

Adaptiveness as an infinite quality

Increasingly, organizations are investing in the ability to respond more quickly and effectively to developments. Rightly so, but with what intention? Simon Sinek in his latest book "The infinite game" describes how winning in the short term is secondary to the need for companies to pursue sustainable continuity. Organizations "play an infinite game" and that requires a different mindset and flexibility. Ultimately, it is "adaptability" that determines whether organizations are successful in the long term. To a lesser extent a smart strategy, the best people, or the most sophisticated IT system. All these aspects are temporary in nature and will have to be renewed after an (increasingly shorter) period because they are context dependent. And that context, think customer requirements, market developments, technology or politics, is unpredictable and in constant flux.

So something is needed that ensures that the organization renews and changes in a timely and appropriate manner. Some kind of "steering wheel" that directs change. Turning it on and off, speeding it up or slowing it down and distorting or even reinventing it to be more effective. A bit like a good coach has his own coach. Organizations of the future increasingly lean on this essential quality I call "organizational adaptability."

This is an organization's ability to manage and execute continuous adaptation, with the goal of staying relevant.

The latter means "surviving" in bad times. And in good times "thriving."

5 skills are central

1. Perceptive learning

First, catch the signal. Without attentiveness and wonder, we will not notice the new trend, the subtly expressed customer desire or the potentially disastrous risk. This is the skill in which people with an open and learning mindset (see Carol Dweck, Stanford) let developments in the outside world, "come in" and logically interpret them. This collective customer (and stakeholder) focus enables the organization to do something or nothing with the perception.

2.Being intentional

Now we can weigh what to do. But not by "blowing with all the winds." Nor by "holding on rudely." What pro-action or re-action do we take? This requires a sharp and current understanding of "who we are as an organization (unit) and what we are going for." What gives direction is a meaningful ambition (Purpose) and focus on those organizational talents (see Jim Collins "Hedgehog Principle" from Good to Great) in which you want to make a difference as an organization. With this purposeful thinking, perception can be translated into whether or not to take the next step as an organization: finding an appropriate fit!

3. Creative creation

"Appropriate" means customized. Something new has happened and something new is needed. Of course, "copy-paste" is an option and "don't reinvent the wheel" is smart, in the short term. But it does not build the long-term skill of discovering root causes yourself and coming up with innovative solutions. And that skill is trainable. It can be with a creative U-process (by J. Jaworksi & O. Sharmer) in which self-knowledge, letting go of assumptions, egos aside and dialogue in multidisciplinary teams are some of the prerequisites for arriving at the unique, new insight. In addition to energy, this provides the team with the drive to implement the the idea.

4. Agile implementation

Now realize it quickly. Nothing is more frustrating than a slowly implemented idea. Implementing the change requires a change in one or more of the organizational aspects (such as strategy, products processes, people, systems, structures, ways of working, culture, etc.). With Lean Startup, Agile and Lean or Six Sigma, organizations are increasingly able to implement change quickly. But the next step in agility is the smart deployment, alignment and collaboration of all these "philosophies." Not everything has to be Lean and not everything works Agile. Optimizing the synergy between dynamism on the one hand and standardization on the other is an art. The additional question for organizational designers becomes: Is it built to adapt?

5. Instinctive anticipation

And finally...back to the beginning, because the next change is coming. With this skill, the organization has become unconsciously competent in the cycle of adaptation. The 4 previous skills work continuously and follow one another. Things seemingly happen by themselves. But nothing goes by itself. This is what is controlled. In a short cyclical manner, goals are met, learned and improved. And there is balance in performing for today while innovating for tomorrow (see the Ambidextrous Organization by O'Reilly & Tushman, HBR). And then something special happens: You see change coming sooner as an organization. Skills are so well mastered that there is increasing reliance on prediction and sense of direction. "And if we're wrong? Oh well, our responsiveness is so great that we will quickly discover this and make adjustments."

Sounds utopian perhaps? But if you can imagine it, you can begin to realize it and suddenly you see it everywhere. Check out the table below with examples.

Who's next?

Who is this about now? Who is "the organization" and possesses these skills? To start small, you yourself. These skills can help you as a professional put a different spin on seemingly disruptive events. Think about last week's unpleasant conversation, new strategy or worrisome report and run through the 5 skills again.

Looking a little more broadly, it's about a part of the organization. Your team, unit or even an entire chain. The more people involved the greater the challenge of being coordinated adaptive. But, once collaboration is underway and dialogue (not discussion!) becomes leading, much more can be achieved than any one person can dream of. Spend a consultation asking: how did we as a team complete these 5 skills?

Finally, the organization as a whole. Successful organizations know how to develop all five skills in balance. In their processes, management and culture. Managing this is primarily a task for management. It goes without saying that if adaptivity is not in order, an organization will eventually lose its right to exist. But what went wrong? How can you prevent it? And how can you systematically develop the skill? These are questions for leaders of an adaptive organization.

But they are not alone. Behind these 5 skills, in my view, lie 10 success factors with scientific theories and models as tools. Noviter applies this thinking to its clients based on the belief that "if we master adaptivity, we can handle the future endlessly."

To be continued.

driaan Vermeulen is a consultant, trainer and change leader for service organizations. In addition to organizational consulting in the field of customer & operational excellence, he has led several major transformations. He specializes in continuous improvement and adaptivity and works from his change & improvement company Noviter.

1. Perceptive learning

  • Zara (a highly successful fashion retailer, with Inditex in the background) studies consumer desires in its stores and then tries to produce and offer a suitable design at lightning speed.

  • How comfortably does your organization adapt, to new legislation, for example? The General Data Protection Regulation (AVG) was a great test in 2018. Did your organization see this coming in time? And was the impact properly assessed? Many organizations underestimated this. Great lessons perhaps to apply in the event of a "Brexit."

2. Being intentional

  • Kodak designed the first digital camera in 1975 but did not see that innovation in the 1990s as a reason to redefine "what business they were in." Fuji, Canon and others did. Kodak went out of business in 2012.

  • NASA's goal of landing on the moon within 10 years in the 1960s bears resemblance to the higher goal of Elon Musk's SpaceX to aspire to "multi-planetary life." NASA succeeded in '69. SpaceX isn't there yet, but this "purpose" does something to you, doesn't it?

3. Creatief creation

  • One of the most innovative companies in the world is Google who also achieves this by deliberately encouraging creativity. For example, with the 20% rule, employees spend 20% of their work time on their own ideas and work-related passions. But also: play, open spaces, attractive workplaces, and meeting & connecting are some of the conditions the Chief Happiness Officer works on.

  • A very different example of creativity that comes from amazing expertise and dedication to your craft is the pilot "Sully" Sullenburger who in 2009 lost thrust in both engines of his Airbus A320 during takeoff, deviated from thick manuals and procedures, made intuitive decisions, and landed safely on the Hudson River within 300 seconds.

4. Agile implementation

  • Bol.com and Coolblue have spoiled the homebound online shopper with the promise of next-day home delivery. Very tight, logistics processes backed by technology make this standardized agility possible every day.

  • Unexpectedly agile responses prove the planning departments of organizations such as Schiphol and the NS when the weather turns and thousands of travelers must still get home one evening via alternate routes and modes of transportation. And sometimes that goes wrong, too. How far you go in preparing for the unexpected is also a financial consideration.

5. Instinctive anticipation

  • Steve Jobs said, "you can't just ask customers what they want and then give that to them. By the time you get it built, they'll want something new." So Apple was looking further ahead and experimenting. The I-pad had been on the shelf for years and was not offered until 2010 when Apple felt the market was ready for it.

  • And for tennis fans, Federer is neither the strongest nor the fastest. To still play top-level tennis at 38 proves his amazing adaptability. One example is his (trained) understanding of the game. This allows him to estimate earlier where the opponent will place the ball. As a result, he moves a few milliseconds earlier to be able to return the most difficult balls from the corner phenomenally.

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