Telcos pivot to agile models to accelerate value delivery, McKinsey says

Agile operating models reshape organisational structures across global telcos.

Telecom operators including Cogeco, Safaricom, Entel, Magyar Telekom, Masmovil, and Tesco Mobile have reorganised around agile operating models to shorten delivery cycles and streamline decision-making, according to a McKinsey & Company report.

McKinsey states that these six companies shifted from function-based hierarchies to domain-based structures, aligning teams to specific business outcomes rather than traditional departments. The report observed that organising to value enables faster decision making, greater accountability, and clearer alignment with customer needs.

Under these models, cross-functional teams are assigned full responsibility for defined customer journeys or product areas. McKinsey observed that telecom operators using this structure reported clearer ownership and more predictable delivery cadences.

The report cites broader research indicating that organisations adopting agile practices are three times more likely to be top-quartile performers compared with those that do not.

McKinsey adds that structural changes must be supported by revised governance, capability requirements and leadership responsibilities, stating that transformations require changes in leadership, governance, talent and culture.