In the context of the Digital Age, where technological disruption is constant, traditional hierarchical organizational structures often struggle to adapt quickly. These structures are optimized for stability and efficiency but lack the necessary speed for true Business Agility. SAFe (Scaled Agile F…In the context of the Digital Age, where technological disruption is constant, traditional hierarchical organizational structures often struggle to adapt quickly. These structures are optimized for stability and efficiency but lack the necessary speed for true Business Agility. SAFe (Scaled Agile Framework) addresses this by positioning itself as a second operating system alongside the existing hierarchy, based on John Kotter’s concept of the “Dual Operating System.”
SAFe acknowledges that the functional hierarchy remains necessary for reliability, compliance, and human resource management. However, to compete in the digital era, enterprises need a complimentary system organized around Value Streams rather than functional silos. This second system is a flexible, customer-centric network of Agile Release Trains (ARTs) that cuts through bureaucracy to deliver value directly to the customer.
As an operating system for Business Agility, SAFe provides the integrated principles, practices, and seven core competencies—ranging from Lean-Agile Leadership to Agile Product Delivery—required to align strategy with execution across the entire enterprise. It harmonizes the two systems: the hierarchy manages the business (efficiency and stability), while the SAFe network changes the business (innovation and speed). This structure allows large enterprises to pivot quickly in response to market dynamics without dismantling their foundational organization. By adopting SAFe as this operating system, organizations can achieve the resilience to thrive amidst digital disruption, balancing the leverage of their scale with the entrepreneurial speed of a startup.
SAFe as the Second Operating System for Business Agility
Introduction to the Dual Operating System
In the context of the Digital Age and the pursuit of Business Agility, the Scaled Agile Framework (SAFe) positions itself as a second operating system. Based on the work of John Kotter (specifically his book Accelerate), this concept addresses the fundamental struggle established enterprises face: balancing stability with speed.
Why is it Important?
Most successful organizations start as a dynamic network of entrepreneurs (speed and innovation) but evolve into a functional hierarchy (efficiency and stability). While hierarchies are excellent for stability and scaling known processes, they often struggle with the speed and rapid change required in the digital age. Silos form, and customer value gets lost in handoffs.
To compete in the digital age, an organization cannot rely solely on the hierarchy. However, they cannot simply discard it either, as it is necessary for routine operations (payroll, compliance, hiring). The solution is a Dual Operating System.
How it Works: The Two Systems
SAFe proposes running two systems in concert:
1. Operating System #1: The Functional Hierarchy This is the existing organizational structure. It remains responsible for efficiency, reliability, maintenance, and recruiting/retaining talent. It provides the stability the enterprise needs.
2. Operating System #2: The Value Stream Network (SAFe) This is the 'second' operating system. SAFe organizes people from the hierarchy into a virtual network organized around Value Streams. This is realized through Agile Release Trains (ARTs). This network focuses on speed, product development, and innovation.
The Result: Business Agility
By overlaying the Value Stream Network onto the existing hierarchy, SAFe allows organizations to focus on the flow of value to the customer without needing to completely restructure the entire corporation immediately. This harmony facilitates Business Agility—the ability to compete and thrive in the digital age by quickly responding to market changes.
Exam Tips: Answering Questions on SAFe as an Operating System
When answering questions regarding the Dual Operating System on a SAFe exam, look for these key concepts:
1. Do not destroy the Hierarchy: If an answer choice suggests that SAFe replaces, removes, or destroys the functional hierarchy, it is usually incorrect. The correct answer focuses on augmenting the hierarchy or working alongside it.
2. Value Streams and ARTs: The 'Network' side of the operating system consists of Value Streams and Agile Release Trains. Connect the 'Second OS' concept to organizing around value.
3. John Kotter: Remember that this specific philosophy is attributed to John Kotter. Questions may reference his name or the concept of moving from a 'Network' to a 'Hierarchy'.
4. Efficiency vs. Speed: Questions may ask what the Hierarchy provides (Efficiency/Stability) versus what the Network provides (Speed/Innovation).
5. The Goal is Business Agility: The ultimate purpose of implementing this dual system is to achieve Business Agility, allowing the company to pivot quickly without chaos.