When companies try to change and grow, they often face three major challenges or “traps” that can prevent them from succeeding. These traps relate to identity, organizational structure and collaboration. Here you can find out how these traps arise and what companies can do to avoid them:

Companies often define themselves too narrowly and focus on certain products or services that have made them successful in the past. This rigid identity makes it difficult to accept new innovations, as these can be perceived as a threat to what the company is known for.

Managers should see their company’s identity in a broader context and not tie it to specific products. This broader view encourages innovation and helps companies stay open to change. Companies can identify new opportunities and stay relevant by engaging with customers to understand their needs. One very successful approach is the Jobs-to-be-Done (JTBD) theory by Dr. Clayton Christensen.

The JTBD theory helps by shifting the focus from “what we do” to “why we do it”. The theory shows that customers buy products and services to make progress and want to have positive experiences in the process. By understanding this progress, companies can expand their identity and find new products or services that match the progress customers want.

This trap arises when companies do not create the right structures and incentives for different types of innovation.Early-stage innovations require flexibility and room for experimentation, while mature products require more structured processes. Using the same approach for all types of innovation can stifle creativity and slow down progress.

Companies should create separate structures for the different innovation phases. Teams working on new ideas should have the freedom to experiment, while teams focusing on existing products should have the necessary tools to increase efficiency. This is where the Scaled Agile Framework (SAFe) can be very helpful.

SAFe supports the creation of so-called Agile Release Trains (ARTs), which are designed to handle different types of innovation, from early-stage exploration to mature product enhancements. This flexibility ensures that teams at each stage have the right structures and support to innovate effectively.

Collaboration problems arise when different teams do not trust each other or do not share information. This can lead to the formation of silos where teams only focus on their own goals, resulting in rivalry and less effective innovation.

Managers should encourage teamwork in the various innovation phases. Creating shared spaces and opportunities for joint decision-making can build trust and understanding between teams, break down barriers and promote a unified approach to innovation. SAFe can also be a good solution here.

SAFe focuses on continuous alignment between teams through regular program increment (PI) planning and synchronized sprints. These practices promote transparency, shared goals and trust, breaking down silos and fostering effective collaboration at all levels of the organization.

To remain successful, companies need to be flexible and work well together. This includes not defining their identity too narrowly, adapting their structures and promoting collaboration between teams. This enables them to better adapt to change and take advantage of new opportunities.

The recommendations form the basis for effective project portfolio management. It ensures that companies not only do the right things, but also the right things. This is also the basic idea behind SAFe’s Lean Project Portfolio Management (LPM) methodology, which focuses on selecting and prioritizing initiatives that deliver the highest value for the customer.

By implementing the above recommendations, organizations can ensure that their project portfolio is strategically aligned, resource-optimized and focused on long-term success.

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Note: This article is based on findings from Ryan Raffaelli’s report published in the MIT Sloan Management Review on August 19. The findings have been supplemented by personal experiences of the author of this article to demonstrate a practical application in organizations.

MIT Sloan Article