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According to McKinsey, traditional organizations place their governance bodies at the top, and decision rights flow down the hierarchy. On the other hand, agile organizations instill a common purpose and use new data to give decision rights to the teams closest to the information. This allows an agile organization to ideally combine velocity and adaptability with stability and efficiency.
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"Traditional organizations place their governance bodies at their apex, and decision rights flow down the hierarchy; conversely, agile organizations instill a common purpose and use new data to give decision rights to the teams closest to the information. An agile organization can ideally combine velocity and adaptability with stability and efficiency," McKinsey writes on its website.
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