Agile Management (Management 3.0) as a basis for the development of strategic capabilities in business

AGILE MANAGEMENT (MANAGEMENT 3.0) AS A BASIS FOR THE DEVELOPMENT OF STRATEGIC CAPABILITIES IN BUSINESSES

Yuliya Tsvilii

Abstract

agile management businesses consumer

The article aims to outline the guidelines of the scientific study of Agile Management (Management 3.0), the selection of a range of benefits and barriers for both businesses and consumers and the formation of the main categories of Agile Management for business. Management 3.0 practices used in foreign and Ukrainian companies are given. Agile Management principles bring various benefits and barriers for both businesses and consumers. Management 3.0 can support the development of strategic capabilities in many areas of the economy. Based on scientific analysis, the following main categories of Agile Management for business have been identified: goals of Agile Management (creating a dynamic and responsive system that fosters individual, team, and organizational growth), management object (employees, projects (products, services or processes) and a system that enables everyone to thrive and contribute effectively), management subjects (executives, managers, and team leaders, employees, and workforce, customers, stakeholders, or end-users), principles (adaptability over predictability, empowered teams, customer-centricity, iterative development, continuous improvement, transparent communication, risk management, value delivery, flexibility and resilience, collaboration and cross-functionality), main tasks.

Keywords: Agile Management, Management 3.0, businesses, strategic capabilities, benefits and barriers, features, goals, object, subjects, principles, tasks.

Анотація

ГНУЧКИИ МЕНЕДЖМЕНТ (МЕНЕДЖМЕНТ 3.0) ЯК ОСНОВА РОЗВИТКУ СТРАТЕГІЧНОГО ПОТЕНЦІАЛУ БІЗНЕСУ

Юлія Цвілій Львівський національний університет імені Івана Франка, м. Львів,

Новий тип управління, організаційної культури та командної роботи за назвою Agile Management (Менеджмент 3.0) прийшов на зміну класичних методів менеджменту постіндустріального суспільства. У новітній концепції менеджменту посеред факторів виробництва, елементів стратегічного потенціалу організації важливе місце відведено інтелектуальним ресурсам. Затребуваним для науки є дослідження специфічних ознак, властивостей управління бізнесом, які з'являються у процесі впровадження Agile Management.

Метою статті є окреслення орієнтирів наукового дослідження Agile-менеджменту (Менеджменту 3.0), виокремлення кола переваг та бар'єрів як для бізнесу, так і для споживачів, формування основних категорій Agile-менеджменту для бізнесу.

Методи дослідження: узагальнення, аналіз і синтез, систематизація для виявлення та виокремлення низки переваг і бар>єрів для бізнесу та споживачів, формування основних категорій Менеджменту 3.0 для бізнесу; схематичні та графічні зображення для наочного відображення результатів дослідження.

Наведено практики впровадження Менеджменту 3.0, що застосовуються в українських і закордонних компаніях. Принципи Agile-менеджменту мають низку переваг і бар>єрів як для бізнесу, так і для споживачів. Менеджмент 3.0 може підтримати розвиток стратегічних можливостей у багатьох сферах економіки. На основі наукового аналізу визначено такі основні категорії Agile Management для бізнесу: цілі Agile Management (створення динамічної та гнучкої системи, яка сприяє індивідуальному, командному та організаційному зростанню), об>єкт управління (співробітники, проекти (продукти, послуги або процеси) та система, яка дає змогу кожному процвітати та робити ефективний внесок), суб>єкти управління (керівники, менеджери та лідери команд), працівники та робоча сила, клієнти, зацікавлені сторони або кінцеві користувачі), принципи (адаптивність, непередбачуваність, уповноважені команди, клієнтоорієнтованість, ітеративний розвиток, постійне вдосконалення, прозора комунікація, управління ризиками, створення цінності, гнучкість та стійкість, співпраця та крос-функціональність), основні завдання.

Ключові слова: гнучкий менеджмент, менеджмент 3.0, бізнес, стратегічний потенціал, переваги та бар>єри, особливості, цілі, об>єкт, суб'єкти, принципи, завдання.

Formulation of the problem

The shift of the world economy towards the rapid development and practical application of digital technologies (Industry 4.0) created a new model of economic relations. It led to significant changes in management activities. In modern enterprises, business processes are undergoing digital transformation. Classical management methods in industrial society are outdated and have been replaced by a new type of management, culture, and organization called Agile Management (Management 3.0). In the new management concept, among the factors of production, elements of the organization's strategic potential, not material and informational resources come to the fore, but intellectual (knowledge, technology, experience), the formation of professional competencies of the staff, and the achievement of the effectiveness of both individual employees and the organization as a whole [9].

Studying Management 3.0 is relevant for improving business operations in today's dynamic and competitive environment.

Analysis of recent research and publications

Considering the various economic directions encompassing Agile management, it is necessary to clarify its inherent characteristics and signs.

Many scientists are interested in the essence and features of using Agile Management in business management. One of the prominent researchers is Y. Appelo [2], who studied project management in software.

Agile management methodology is also considered in scientific publications by such authors as Almeida F. [1], Oliveira D. [1], Neves J. [1], Cruz M. [3], Correa V. [3], Diniz D. [3], Borini F. [3], Espinheira E. [4], Almeida F. [4], Rasnacis A. [8], Berzisa S. [8], Sonta-Draczkowska E. [10], Tripp J. [11], Armstrong D. [11]. These studies examine the features and advantages of Agile Management that make it an effective tool for ensuring teamwork.

In the Ukrainian scientific literature, the tools and principles of Agile Management are presented in the works of Sedikova I. [9], Sedikov D. [9], Khromushyna L. [5], Yurynets Z. [12], Kruhlyakova V. [12] and others. The theoretical foundations of project management in the business environment are given in their works.

Despite the large scientific works of foreign and national scholars in the management field and features of Agile Management, we think these questions have not yet been adequately researched.

Research objectives

The article aims to outline the guidelines of the scientific study of Agile Management, the selection of a range of benefits and barriers for both businesses and consumers, and the formation of the main categories of Management 3.0 for business.

Research methods: generalization, analysis, synthesis, and systematization to identify the selection of a range of benefits and barriers for both businesses and consumers; the formation of the main categories of Management 3.0 for business; schematic and graphic images for visual display of research results.

Presenting main material

For several reasons, studying and implementing Agile Management in business is relevant in today's dynamic and competitive landscape. Agile methodologies emphasize adaptability and responsiveness to change [1]. In today's rapidly evolving markets, businesses must be nimble and quickly pivot strategies based on customer feedback, market shifts, or technological advancements [8; 10]. Agile approaches prioritize customer collaboration and feedback. Businesses can create products and services that better meet customer needs and preferences by involving customers throughout the development process. Agile practices like short feedback loops and continuous improvement can significantly enhance efficiency and productivity [11]. Teams can deliver incremental value in shorter cycles, reducing time-to-market and improving overall output quality. By empowering crossfunctional teams and encouraging open communication, businesses can harness the collective creativity of their workforce, leading to innovative solutions and products. This proactive approach helps identify and address issues early, minimizing potential risks and associated costs. Agile principles promote autonomy, collaboration, and self-organization within teams.

This fosters a sense of ownership and empowerment among employees, leading to higher job satisfaction and retention rates.

In the digital transformation era, Agile practices align well with the adaptive nature of technological advancements. It enables businesses to navigate digital disruptions and leverage new technologies efficiently. Organizations that effectively implement Management 3.0 tend to be more responsive, innovative, and adaptable, giving them a competitive edge in the market. Agile frameworks promote transparency and data-driven decision-making. Teams can access realtime information, enabling them to make informed decisions that align with strategic objectives.

Agile methodologies offer scalability. They can be adapted and scaled to suit organizations of varying sizes, allowing for consistent and efficient growth.

In essence, studying and implementing Agile Management is relevant as it equips businesses with the tools, mindset, and practices necessary to thrive in an environment characterized by rapid change, customer-centricity, and innovation. It supports businesses in staying adaptable, delivering value efficiently, and sustaining competitiveness in a dynamic market landscape.

Management 3.0 principles and methodologies are versatile and adaptable, making them applicable across various industries. While traditionally associated with software development, Agile practices have expanded beyond IT into numerous sectors. Agile Management can support the development of strategic capabilities in many areas of the economy. Here are some industries where Management 3.0 is commonly implemented:

1. Software development and IT. Agile methodologies like Scrum, Kanban, and Extreme Programming originated in the software industry and remain extensively used for software development, system integration, and IT projects.

2. Manufacturing and engineering. Agile principles have been adopted in manufacturing for lean production, product development, and continuous improvement processes. Companies use Agile methodologies to streamline manufacturing operations and develop new products.

3. Marketing and Advertising. Agile Marketing has gained popularity, allowing marketing teams to adapt quickly to market changes, experiment with campaigns, and optimize strategies based on real-time data and customer feedback.

4. Healthcare. Agile methodologies are increasingly being adopted in healthcare for project management, software development for medical devices, and improving patient care through iterative processes.

5. Financial services. Banks and financial institutions use Agile methods for software development, process improvements, customer service, and product innovation.

6. Telecommunications. Agile practices are applied in developing and deploying telecommunications software, network infrastructure, and services to ensure faster delivery and better customer satisfaction.

7. Education. Agile principles are incorporated into educational institutions and e-learning platforms to enhance curriculum development, student engagement, and educational technology implementations.

8. Retail. Agile methodologies are used in retail for inventory management, supply chain optimization, and adapting quickly to changing consumer preferences and market trends.

9. Consulting and professional services. Agile practices are increasingly adopted in consulting firms and professional services for project management, client collaboration, and delivering value in smaller, iterative cycles.

10. Non-profit and social sectors. Agile methodologies are used by non-profits and social enterprises for project management, fundraising, program development, and community engagement initiatives.

Today, Agile Management practices are used by Bosch, CSS Insurance, Eventbrite, Topps, and Zendesk. Here are some successful examples [7]:

- Eventbrite successfully uses the Personal Card and Moving Motivators exercises for personnel management, making it easy to visualize how to engage each employee better.

- Stefanini created an attractive climate for Java programmers, who were difficult to retain in the company at the time. They used such practices as Kudo Box, Delegation Poker, and Celebration Grid.

Management 3.0 is gaining popularity in Ukraine as organizations seek ways to increase flexibility and adaptability in a changing environment. Rozetka, the largest online retail company in Ukraine, is implementing elements of Management 3.0 to increase productivity and innovation. The company has created autonomous teams responsible for different products and services. Teams use Management 3.0 practices such as sprints, visual management, and retrospectives to ensure their work meets customer needs [6].

Agile HR practices involve iterative performance management, talent acquisition, and employee engagement strategies to adapt quickly to organizational needs and changes. The adaptability and flexibility of Management 3.0 make it applicable across various industries and functions, allowing organizations to embrace change, increase responsiveness, and deliver value to stakeholders more effectively.

Management 3.0 is a response to changes in modern business and society. In traditional management, we see hierarchical structures where decisions are made from the top down, and employees follow instructions. This concept changes this approach, putting the employee and his needs at the center of attention. It promotes self-organization and autonomy of teams, where employees interact and cooperate equally. It is built on the principles of trust, mutual support, and the development of each team member's creative potential.

Management 3.0 was developed by Appelo based on the concept of agile project management and can be implemented not only in projects but also in an entire organization [2]. This concept comprises six pillars:

Pillar 1: Energizing or/and motivating people. It involves creating an environment where individuals feel empowered, engaged, and enthusiastic about their work. In a Management 3.0 environment, the manager's role shifts from traditional command-and-control to a more facilitative, supportive, and coaching one. The focus becomes keeping employees engaged, highly motivated, and empowered to work autonomously towards achieving strategic goals.

Pillar 2: Empowering employees and teams. It is about creating a culture that values autonomy, transparency, continuous improvement, and collaboration. When individuals feel empowered, they are more engaged, motivated, and capable of driving organizational success.

Pillar 3: Aligning constraints. By aligning constraints, Management 3.0 aims to expedite work processes, improve productivity, prevent inefficiencies, and optimize managerial decisions. It emphasizes the importance of identifying and resolving limitations to create a more conducive environment for achieving goals and fostering continuous improvement.

Pillar 4: Developing competencies. By emphasizing the development of competencies, Management 3.0 aims to create a workforce that is adaptable, skilled, and capable of evolving with the organization's changing needs. It promotes a culture of continuous improvement where individuals take ownership of their learning and development, contributing to the overall success of the organization.

Pillar 5: Expanding everything in the structure. It is about creating an organizational setup that is responsive, adaptable, and conducive to innovation. It aims to foster a culture that embraces change, encourages collaboration, and enables efficient decision-making to thrive in dynamic environments.

Pillar 6: Improving everything (ongoing improvement of products, services, or processes; an ongoing process that involves regular evaluation, adaptation, and alignment with the evolving needs of the business and its environment).

Management 3.0 principles bring various benefits and barriers for businesses and consumers (Table 1).

Table 1