In my blog “The Economics of “Do More With Less”: Blending AI with Organizational Discipline,” I discussed the challenges organizations face when trying to accomplish more with fewer resources. While AI can power with the “Do More” part of the “Do More With Less” equation, the key to success with the “With Less” part of the equation involves reshaping the organization’s culture. And that makes the AI challenge look like chump change.
Transforming an organization’s culture is challenging as it requires a fundamental shift in how people and their managers think, behave, and collaborate. Cultural transformation touches every aspect of the organization, from leadership to frontline teams. It calls for embracing agility, innovation, and a willingness to adapt and learn from failure. Without this, organizations will never successfully achieve the “With Less” part of the equation.
One industry that has successfully navigated the “With Less” equation is the sports industry. Despite competing with the same rules, the same number of players, and similar financial constraints, some sports teams have consistently demonstrated the ability to achieve more with limited resources. These teams have overcome these challenges by fostering a culture of organizational improvisation (organizational improv), allowing them to adapt dynamically and excel in constantly evolving operating scenarios.
Organizational Improvisation (Improv)
Organizational Improv is the ability of an organization to dynamically adapt, learn, and make real-time decisions through empowered teams, guided by data and continuous feedback, to thrive in an ever-changing environment.
The concept of Organizational Improv exploits the capability of organizations to respond fluidly to changing circumstances, much like a sports team. This concept has several strengths:
- Relatability: Most people can quickly grasp the concept of improvisation, especially in sports, music, or theater. It evokes a sense of dynamic coordination, real-time decision-making, and adaptability, critical traits of intelligent organizations.
- Focus on Adaptability and Responsiveness: “Improvisation” suggests a continuous process of sensing, deciding, and acting, which mirrors the feedback loops and agentic behaviors central to effective organizational design.
- Descriptive of the Desired Behavior: It conveys the idea that organizations, like players in a game, must operate with a clear understanding of strategy while being flexible enough to adapt to new information or circumstances on the fly.
- Broad Applicability: The term can apply across various levels—individual teams, departments, or the organization—suggesting an overarching philosophy of operation rather than a rigid framework.
Traditional rigid organizational structures and long planning cycles fall short in the face of rapid market shifts, technological advancements, and evolving customer needs. Instead, organizations should behave like high-performing sports teams—improvising, adapting, and responding in real-time to whatever the operating situation dictates, where success hinges on quick thinking, teamwork, creative collaboration, and adaptability (Figure 1).
Figure 1: Organizational Improvisation
Let’s explore how the principles of Organizational Improvisation can be applied in practical business contexts, illustrated with examples from some of the world’s most successful sports teams.
Organizational Improvisation: 8 Lessons from the Playing Field
Here are some critical concepts and mindsets learned from the sports world to help organizations achieve that organizational improvisation necessary to accomplish the “Do More With Less” equation.
1. Create an Adaptive Strategy Framework
In the business world, as in sports, rigid strategies can leave you vulnerable to unexpected challenges. The New England Patriots, under coach Bill Belichick, perfected the art of adaptive strategy. Known for their flexible game plans, the Patriots tailor their approach weekly based on their opponent’s strengths and weaknesses, emphasizing “situational football.” This adaptability has been crucial to their sustained success.
Business Lesson: Just as the Patriots adjusted their playbook to exploit the opponent’s vulnerabilities, businesses should develop flexible strategies that adapt dynamically to shifting market conditions.
2. Establish Agile Decision-Making Processes
Agility is critical in both sports and business. The Golden State Warriors exemplify agile decision-making on the basketball court. Their “small ball” lineup, featuring versatile players like Stephen Curry and Draymond Green, allows them to make rapid adjustments during games, keeping opponents off balance with quick ball movement and fluid spacing.
Business Lesson: The Warriors’ quick decision-making on the court underscores the importance of decentralizing decision-making in business. Empower your teams with real-time data and the authority to make decisions quickly, enabling them to adapt to evolving situations.
3. Foster a Culture of Continuous Learning and Experimentation
Success in sports often comes down to learning from mistakes and continuously improving. The San Antonio Spurs, under coach Gregg Popovich, have built a culture of continuous learning. Popovich encourages his players to play “the right way,” viewing mistakes as growth opportunities. The Spurs’ willingness to experiment with different lineups and strategies has kept them competitive year after year.
Business Lesson: Like the Spurs, organizations should create environments where experimentation is encouraged, and failures are seen as learning opportunities. This fosters a culture of continuous improvement.
4. Build Agile and Cross-Functional Teams
In soccer, FC Barcelona’s “tiki-taka” style requires players to be versatile, switching roles fluidly based on the game’s needs. This cross-functional teamwork allows them to adapt quickly to their opponents’ tactics, making them one of the most successful teams in football history.
Business Lesson: Just as Barcelona’s players switch roles on the field, businesses should promote cross-functional collaboration. Building agile teams with diverse skill sets increases an organization’s ability to adapt and innovate.
5. Implement Real-Time Communication and Collaboration Tools
Effective communication is the backbone of any high-performing team. The Seattle Seahawks’ “Legion of Boom” defense was renowned for its real-time communication on the field. Players like Earl Thomas and Richard Sherman constantly communicated to adjust coverages and alignments based on the offense’s movements, often disrupting their opponents’ plays.
Business Lesson: The Seahawks’ on-field communication highlights the importance of real-time collaboration tools in business. These tools enable teams to share insights, coordinate actions, and make quick decisions.
6. Product Development and Innovation
Managed by Jürgen Klopp, Liverpool FC is known for its innovative “Gegenpressing” style, which focuses on high-intensity pressing immediately after losing possession. This requires players to adapt quickly, regain control, and exploit opponents’ disorganization. Klopp also embraces data analytics to optimize player performance and tactics, ensuring continuous innovation.
Business Lesson: Liverpool’s innovative approach to game tactics demonstrates the value of a data-driven culture in organizations, where teams are empowered to innovate and continuously improve based on real-time feedback.
7. Crisis Management
In times of crisis, the ability to pivot quickly can make all the difference. A famous example is Michael Jordan’s “Flu Game” during the 1997 NBA Finals, where the Chicago Bulls had to adapt their game plan on the fly due to Jordan’s illness. Despite the challenge, the Bulls’ ability to improvise led to a crucial victory.
Business Lesson: Just as the Bulls adapted their strategy when faced with a crisis, businesses must be prepared to pivot quickly, leveraging all available resources to continue performing effectively.
8. Measuring Organizational Improvisation Effectiveness
Measurement and analytics are vital for refining strategies. The Oakland Athletics’ “Moneyball” approach revolutionized baseball by using advanced metrics to measure player performance, focusing on efficiency and value beyond traditional statistics.
Business Lesson: Like the Athletics’ use of data to drive decision-making, businesses should use real-time analytics to measure and optimize the effectiveness of their improvisational efforts.
Conclusion
“Organizational Improvisation” enables organizations of all sizes to thrive in uncertain and dynamic environments. By drawing inspiration from the world of sports, where adaptability, real-time decision-making, collaboration, and teamwork are paramount, organizations can learn to navigate complexity with agility and intelligence.
Whether developing adaptive strategies like the New England Patriots, fostering continuous learning like the San Antonio Spurs, or driving innovation like Liverpool FC, the lessons from the playing field provide a roadmap for businesses to embrace organizational improvisation to enhance organizational agility and effectiveness.
