Evolving Governance: From Traditional to Agile to Adaptive

Traditional is not “bad.” It just requires a certain context.

Traditionally, governance was synonymous with a waterfall approach—rigid, hierarchical, and often non-collaborative. While effective in certain contexts, it was not universally applicable. This traditional governance model was characterised by:

• Waterfall Concepts: Sequential and linear processes with defined stages and fixed outcomes.
• Rigidity: Strict adherence to predetermined plans with limited room for adjustments.
• Hierarchical and Authoritative: Decision-making concentrated at the top, following a top-down structure.
• Non-Collaborative: Limited collaboration between teams and stakeholders, hindering collective problem-solving.
• Top-Down: Flow of directives and decisions from higher to lower levels without significant input from lower levels.
• Lack of Inter-Functional Alignment: Departments and teams working in silos, lacking alignment and coordination.
• Governance Drove Delivery: Emphasis on adherence to governance processes often took precedence over flexible and adaptive delivery.

Agile is not a “silver bullet.” It requires a certain context.

Conversely when we look at the rise of more Agile-based governance. The rise of agile-based methodologies marked a paradigm shift. Agile governance emerged from the need for more collaborative structures, putting delivery at the forefront. Built on interdisciplinary teams, shared accountability, and exclusive decision-making, Agile offered a refreshing departure from traditional approaches.

However, the realisation dawns that what we need more than ever is Adaptive Governance. Taking the best from both traditional and agile models, Adaptive Governance aligns the right path forward based on context, maturity, and environmental factors. It thrives in the face of VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) uncertainty, embracing cross-functional governance, inclusivity, and responsiveness.

But what if we could have the best of both worlds? Enter Adaptive Governance.

Adaptive is based on changing the how, not the what.

Adaptive governance goes beyond a one-size-fits-all approach. It recognises that each project is unique, requiring a tailored governance strategy. It navigates the delicate balance between structure and flexibility, sustainability, and responsiveness. By acknowledging that there is no universal solution, Adaptive Governance empowers organisations to proactively respond to changing circumstances, ensuring long-term success in an ever-shifting landscape.

This understanding became particularly evident during our work in large organisations, including national banks, where challenges facing teams highlighted the need for a governance model that could navigate the intricacies of diverse projects. It is this recognition that led us to create The AMO Way® —a new Adaptive Governance model. The AMO Way® aims to revolutionise project governance by offering a flexible, context-aware approach that draws inspiration from both traditional and agile-based methodologies. Our experience working in complex environments fueled our commitment to providing organisations with a governance model that adapts to their unique challenges and fosters sustained success. Now let’s look at this in more detail to compare them.

Navigating the Shift: Traditional vs. Adaptive Governance

Traditional Governance

In a rigid governance structure, a large, established organisation with a long history of traditional project management principles insists on using a waterfall approach for all its projects. Every project, regardless of sise or nature, is required to follow a predefined, linear path from initiation to completion. The governance framework mandates extensive documentation, strict change control processes, and a fixed project plan that must be adhered to without much room for deviation.

In this scenario, if a team identifies a need for a change in project scope or a shift in priorities mid-project due to unforeseen challenges or emerging opportunities, they encounter significant resistance. The rigid governance structure views changes as disruptions and obtaining approvals for adjustments becomes a time-consuming process. This lack of adaptability can lead to missed opportunities, increased project costs, and frustrated project teams.

Adaptive Governance

Contrastingly, in an organisation with an Adaptive Governance approach, there is a recognition that projects and business environments are dynamic. The governance framework is designed to be flexible and responsive to change. For instance, a company embracing agile-based methodologies allows project teams to iterate, adapt, and respond quickly to evolving requirements.

In an Adaptive Governance model, regular feedback loops, continuous collaboration, and incremental delivery are prioritised. Decision-making processes are streamlined to allow for swift adjustments based on changing circumstances. If a project team identifies the need for a pivot in strategy or a modification in project scope, the Adaptive Governance structure facilitates a rapid response. This adaptability fosters innovation, quicker time-to-market, and improved responsiveness to customer needs.

A rigid governance approach tends to be rule-based, sequential, and resistant to change, while an Adaptive Governance approach is characterised by flexibility, collaboration, and the ability to respond nimbly to changing conditions. Each has its place, but adaptability should always be welcomed. Though be prepared to face challenges with any approach, including Adaptive Governance. What are some of the common challenges?

Shared challenges adapting governance

Adapting governance, whether from traditional to agile or towards an even more nuanced adaptive model, presents its own set of challenges. Behavioural shifts, process adjustments, people management, value alignment, tool integration, and securing robust sponsorship are core components, and often, common obstacles. Behavioural change may encounter resistance as individuals navigate innovative approaches. Aligning processes with evolving methodologies requires careful calibration to avoid disruptions. Managing diverse teams and ensuring their collective buy-in can be intricate. Aligning governance with organisational values and goals demands a thorough understanding of the evolving landscape. Integrating new tools seamlessly and securing sponsorship that champions change are critical facets that demand strategic foresight. Navigating these challenges with resilience and strategic acumen is pivotal in the journey towards Adaptive Governance. It is a continuous effort to find the sweet spot where structures, processes, and people coalesce to drive sustained success. So how do we strike the right balance?

Examples of common challenges with implementing adaptive governance:

Striking the Right Balance

Balancing competing interests, priorities, or approaches is a skill crucial. Striking the right balance often involves considering multiple factors and finding a harmonious middle ground. Here are some general examples to illustrate how to strike the right balance:

Flexibility and Structure:

Example: In project management, while it is crucial to have a structured plan, being open to adjustments based on unforeseen circumstances or feedback from team members allows for flexibility and adaptability.

Autonomy and Collaboration:

Example: In a team environment, giving team members autonomy over their tasks fosters creativity and individual growth. However, collaborative sessions ensure that the team’s efforts align with overall goals.

Innovation and Stability:

Example: Companies need to balance innovation with stability. While introducing modern technologies and methodologies is essential for growth, maintaining stable and reliable systems ensures consistent operations.

Work and Life:

Example: Balancing work and personal life involve setting boundaries. For instance, having designated work hours and unplugging during personal time helps maintain a healthy equilibrium.

Risk-Taking and Caution:

Example: Entrepreneurs often need to take risks to drive innovation, but balancing risk-taking with calculated caution prevents reckless decisions that could harm the business.

Listening and Speaking:

Example: Effective communication requires a balance between listening and speaking. Actively listening to others’ perspectives fosters understanding, while expressing your thoughts ensures your voice is heard.

Short-Term and Long-Term Goals:

Example: In financial planning, balancing short-term expenses with long-term savings goals is crucial. Allocating resources wisely ensures stability while working toward future aspirations.

Consistency and Adaptability:

Example: Building a brand requires consistency in messaging, but adapting to market trends ensures relevance and competitiveness over time.

Cost and Quality:

Example: Balancing cost considerations with the need for high-quality products or services is essential in manufacturing and service industries to meet customer expectations and remain competitive.

Individual and Team Recognition:

Example: Balancing individual achievements with team recognition in a workplace encourages a cooperative and supportive environment. Acknowledging both individual efforts and collaborative successes is crucial.

Navigating the Governance Tightrope

Striking the right balance is often a dynamic process that requires ongoing assessment and adjustment. It involves understanding the unique context of a situation and making informed decisions that align with overarching goals.

As we navigate through projects, relationships, and personal pursuits, the ability to find equilibrium becomes paramount. Imagine the project manager who crafts a structured plan but remains open to adaptation when faced with unforeseen challenges. Or the entrepreneur who embraces innovation while exercising prudent caution to safeguard the stability of their venture.

Balancing work and life, listening and speaking, short-term and long-term goals—these are the threads that weave the fabric of a harmonious existence. In recognising the value of both individual and team contributions, we foster an environment that nurtures personal growth alongside collective success.

The examples shared demonstrate that balance is not a static state but a dynamic process, requiring constant assessment and adjustment. It is an understanding that while consistency has its merits, adaptability is the compass that guides us through an ever-changing landscape.

The pursuit of balance is a journey rather than a destination. It involves embracing the diversity of experiences, perspectives, and challenges that come our way. As we navigate the complexities of life, let us strive not for a perfect equilibrium but for the wisdom to adjust our steps, ensuring that we move forward with purpose and harmony.

Final Thoughts

As we navigate the ever-shifting currents of governance evolution, let us not merely adapt to change but embrace it as the catalyst for progress. In the dance between tradition and innovation, rigidity, and flexibility, lies the true art of governance. As you contemplate the insights shared here, remember: the most resilient structures are those that can sway with the winds of change, for in adaptation, we find not only survival but the seeds of enduring excellence. The journey of governance evolution is ongoing, and with each step, we sculpt the path toward a future where adaptability is not just a strategy but the very essence of triumph.

Want to learn more?

Now, I invite you to be an active participant in the conversation. Share your thoughts, experiences, and questions in the comments below. How has your organisation approached governance in the face of change? What challenges have you encountered, and what strategies have proven successful?

Additionally, join our Meetup group to attend our community webinars where we discuss a variety of topics, including adaptive governance!

Or take a look back at our last meet up on this topic here.

Want to find out more about how AMO can help with your project management capability? Have a look here (https://agilemanagementoffice.com/consult/) how our team can help yours reach their full project management potential. If you want to know more, contact us on contact@agilemanagementoffice.com