AGILENOMICS® Newsletter – Spring 2023
HOW AGILENOMICS® PROVIDES STRATEGIC ADVANTAGES DURING ECONOMIC DOWNTURNS
A Special Report
By this point in 2023, everyone is probably aware of at least one individual that has been impacted by the latest economic cycle that we are experiencing. Whether that be downsizing, difficulties due to inflation, or something else, the impacts are around us. Corporations are not exempt from impacts either. As consumers tighten their spending habits, corporate profits typically are impacted as well.
“COST CUTTING…CAN RESULT IN “DESTRUCTION OF VALUE” THAT IS GREATER THAN THE AMOUNT OF “COSTS” THAT WERE CUT…”
(J.M.)
It is precisely in times like this that companies must exercise discernment about what initiatives they plan to invest in for the entire year. While many Agile methodologies speak of prioritizing based on value, measuring value returned, etc. it has been our experience that many companies that already claim to be “Agile” struggle with both limiting their Work in Progress (WIP) to the ACTUAL most valuable initiatives, as well as the ability to verify (measure) value returned at the vey end.
See more at: agilenomics.net
It is in times like this that we observe the all-too-common phenomenon of “cost cutting”, which is the typical “first reaction” to poor quarterly results. Unfortunately, cost cutting in the absence of understanding the underlying value of what you are “cutting” is risky, and can result in “destruction of value” that is greater than the amount of “costs” that were cut. Quite simply, this type of decision making yields results that work against the fundamental goal of the company to maximize its profits.
In order to avoid this common pitfall, it is strongly advisable to train all levels of your organization with our AGILENOMICS® “Value-Side Thinking and Economic Decision-Making” (AGN-PR) Course. There is no reason to “learn the hard way”, when you can “learn from others”…
OPINION EDITORIAL: Economic Downturn = A Return to Fundamentals
As a quick reminder, the “Value-Side Thinking and Economic Decision-making” course consists of 10 lessons, which have been designed to prepare students for “early identification and prevention of waste”, across a wide spectrum of common situations that we encounter in the industry. It is the ONLY known course that utilizes real case studies to demonstrate what we know from Agile Theory via an applied mathematics/economics lens. The obvious advantage of a course like this includes the ability for a student to use repeatable methods and templates to “prove value” in the future (in their place of work), in a way that succeeds in preventing wasteful spending by identifying the waste earlier in the process.
If any of these are unfamiliar to you, it may be a good time to inquire further about our AGN-PR course:
- Applying J-Curve Economics in an Agile Environment
- Quantification of Cost of disruption prior to deciding to proceed with that disruption.
- Compare & Contrast long term “loss of value” due to Outsourcing to anticipated “cost savings”.
- Identification of Low & No-Value initiatives.
There are additional topics covered in the AGN-PR lessons, of course, but these key points are seldomly taught in a systematic manner throughout the industry. Prepare your organization today, in order to avoid undesirable decisions tomorrow.
The fact is that in most cases, a strategic approach to solving actual problems is lacking, and the Transformation is advertised as a blanket panacea with sometimes grossly overstated expectations. Instead of leadership and inbound consultants taking the proper time to identify the true ailments plaguing an organization, we see a superficial discussion of issues, followed by a “MVP 1” implementation of a blanket “transformation solution” that doesn’t necessarily solve much of the problem.
AGILENOMICS® Courses provide the education necessary to avoid some of these pitfalls, and thus are imperative additions to any serious transformation effort:
https://agilenomics.net/online-courses/
Whether it is our case studies on identifying value, preventing waste, leveraging HR to transform mindsets, or any other point of education, your organization will benefit from our educational material.
At AGILENOMICS®, our objectives remain focused. We desire to innovate. We desire to disrupt legacy thinking with practical examples and common-sense solutions. Our motto “Practicality. Common-Sense. Bottom Line Agile.” is inspired by our core beliefs.
