The Four Guardrails That Enable Agility
MIT Sloan Management Review|Fall 2024
Large organizations can move as fast as startups if leaders empower employees to act autonomously via well-defined constraints.
Nick van der Meulen
The Four Guardrails That Enable Agility

WHAT DOES IT TAKE FOR A LARGE, established business to be as responsive to changing market conditions as the startups in its industry are? That question is a vital one for leaders seeking to move nimbly to address new customer demands and competitive shifts.

The answer often lies in a single word: empowerment. Startups typically empower their teams to make quick decisions, take risks, and explore novel ideas. These nimble teams operate with a level of autonomy that enables them to rapidly sense and seize opportunities that arise from changes in technologies, competition, and customer needs. In doing so, they iteratively move toward achieving their strategic objectives.

But for large organizations, adopting these practices isn't quite as simple. With scale and complexity come layers of decision-making, risk aversion, and the need for operational efficiency and strategic alignment across diverse business units. So while greater empowerment is necessary to drive organizational agility, it also needs to be rooted in a level of coordination that keeps the organization moving cohesively toward its strategic objectives.

This is the challenge I'd like to address in this article: How can large organizations foster empowerment in a way that maintains organizational coherence and strategic alignment? I have studied this question for the past five years and found that what's most required are four decision rights guardrails that define constraints around an organization's purpose, data, policies, and allocation of resources. Like the barriers on a highway, these guardrails provide a zone within which employees can act autonomously, enabling their organizations to operate faster, reduce risk, and keep teams headed in the right direction.

Ultimately, my research suggests that these guardrails give large, established organizations the potential to be just as agile - if not more so than their startup counterparts.

この記事は MIT Sloan Management Review の Fall 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は MIT Sloan Management Review の Fall 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

MIT SLOAN MANAGEMENT REVIEWのその他の記事すべて表示
Ask Sanyin: How Do You Build for an Unpredictable Future?
MIT Sloan Management Review

Ask Sanyin: How Do You Build for an Unpredictable Future?

While the pandemic was a wild ride of uncertainty for me and many of my peers in leadership, it feels like we never regained our footing.

time-read
2 分  |
Winter 2025
What You Still Can't Say at Work
MIT Sloan Management Review

What You Still Can't Say at Work

Most people know what can’t be said in their organization. But leaders can apply these techniques to break through the unwritten rules that make people self-censor.

time-read
7 分  |
Winter 2025
Make Character Count in Hiring and Promoting
MIT Sloan Management Review

Make Character Count in Hiring and Promoting

Most managers focus on competencies when evaluating candidates but it’s character that will transform the DNA of the organization. Here’s how to assess it.

time-read
10+ 分  |
Winter 2025
Why Influence Is a Two-Way Street
MIT Sloan Management Review

Why Influence Is a Two-Way Street

Managers achieve better outcomes when they prioritize collaborative decision-making over powers of persuasion.

time-read
10 分  |
Winter 2025
Know Your Data to Harness Federated Machine Learning
MIT Sloan Management Review

Know Your Data to Harness Federated Machine Learning

A collaborative approach to training AI models can yield better results, but it requires finding partners with data that complements your own.

time-read
9 分  |
Winter 2025
How Integrating DEI Into Strategy Lifts Performance
MIT Sloan Management Review

How Integrating DEI Into Strategy Lifts Performance

Incorporating diversity, equity, and inclusion practices into core business planning can provide a competitive edge.

time-read
9 分  |
Winter 2025
The Myth of the Sustainable Consumer
MIT Sloan Management Review

The Myth of the Sustainable Consumer

Companies that understand the different kinds of consumers for sustainable products can market to them more effectively.

time-read
10+ 分  |
Winter 2025
A Practical Guide to Gaining Value From LLMs
MIT Sloan Management Review

A Practical Guide to Gaining Value From LLMs

Getting a return from generative AI investments requires a systematic approach to analyzing appropriate use cases.

time-read
10+ 分  |
Winter 2025
Improve Workflows by Managing Bottlenecks
MIT Sloan Management Review

Improve Workflows by Managing Bottlenecks

Understand whether process or resource constraints are stalling work.

time-read
10+ 分  |
Winter 2025
Craft Schedules That Work for Everyone
MIT Sloan Management Review

Craft Schedules That Work for Everyone

Business leaders can improve retention and business performance with schedules that make sense for workers’ lives.

time-read
10+ 分  |
Winter 2025