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Organisa(onal 
agility 
Ma1 
Hardy, 
Right 
Lane 
Consul.ng 
29 
April 
2014 
Private 
and 
confiden.al
1 
What 
is 
agility? 
Agility 
originates 
from 
the 
La.n 
agilitatem 
referring 
to 
mobility, 
nimbleness 
and 
quickness 
We 
hear 
the 
term 
today 
in 
many 
different 
contexts 
In 
medieval 
.mes, 
the 
word 
agile 
came 
to 
mean 
‘to 
do, 
act’ 
The 
essence 
of 
the 
word 
agility 
today 
is 
‘the 
ability 
to 
adapt 
quickly 
and 
effec(vely 
to 
changing 
circumstances’ 
Agility 
can 
be 
developed 
and 
matured 
Source: 
Right 
Lane 
Consul.ng, 
2014
2 
Consider 
the 
loom…
Grouping 
of 
2,500 
US 
public 
companies 
based 
on 
assessment 
of 
adap(veness, 
market 
capitalisa(on 
$US 
billions 
4500 
4000 
3500 
3000 
2500 
2000 
1500 
1000 
500 
0 
Agile 
organisa(ons 
Inflexible 
organisa(ons 
2006 
2011 
3 
Agile 
organisa(ons 
drama(cally 
outperform 
inflexible 
ones 
4500 
4000 
3500 
3000 
2500 
2000 
1500 
1000 
500 
0 
2006 
2011 
+ 
100% 
– 
40% 
Source: 
Adapted 
from 
Reeves, 
M, 
Mathur, 
N 
2012 
‘The 
Most 
Adap.ve 
Companies 
2012, 
Winning 
in 
an 
age 
of 
turbulence’, 
The 
Boston 
Consul.ng 
Group, 
August; 
Right 
Lane 
Consul.ng
An 
organisa(on 
can 
be 
agile 
in 
strategy, 
ways 
of 
working 
and 
resources 
Source: 
Right 
Lane 
Consul.ng, 
2014 
4 
Agile 
ways 
of 
working 
Agile 
resources 
How 
we 
adapt 
strategic 
priori.es 
to 
changing 
circumstances 
The 
capacity 
to 
develop 
and 
adopt 
the 
right 
delivery 
capability 
The 
ac.ve 
alloca.on 
of 
human 
and 
financial 
resources 
to 
dynamic 
priori.es 
Agile 
1 
strategy 
2 
3 
e.g. 
planning 
under 
uncertainty, 
dynamically 
reviewing 
priori.es 
(e.g. 
5+1) 
e.g. 
Linking 
budgets 
to 
value 
chain, 
crea.ng 
the 
most 
value 
from 
partnerships 
and 
alliances 
e.g. 
zero 
based 
budge.ng, 
agile 
capacity 
management/ 
resource 
alloca.on
Descrip.on 
How 
we 
adapt 
strategic 
priori(es 
to 
meet 
changing 
circumstances 
Typical 
ques(ons 
to 
address 
How 
well 
does 
your 
organisa.on: 
1. Understand 
the 
key 
assump.ons 
underlying 
its 
strategy 
and 
the 
triggers 
or 
early 
warning 
signs 
for 
these 
assump.ons? 
2. Ensure 
visibility 
of 
the 
make-­‐up 
and 
progress 
of 
the 
overall 
porbolio 
of 
projects, 
not 
just 
the 
individual 
projects? 
3. Ensure 
everyone’s 
individual 
priori.es 
are 
directly 
linked 
to 
their 
manager’s 
priori.es, 
in 
a 
way 
that 
doesn’t 
feel 
like 
micro-­‐management? 
Example 
tools 
• Strategic 
pathway 
planning 
(small 
number 
of 
alterna.ve 
pathways) 
• 5+1 
approach 
to 
determining 
priori.es 
Agile 
strategy 
Source: 
Right 
Lane 
Consul.ng, 
2014 
5
Agile 
ways 
of 
working 
Descrip.on 
The 
capacity 
to 
develop 
and 
adopt 
the 
right 
delivery 
capability 
Typical 
ques(ons 
to 
address 
How 
well 
does 
your 
organisa.on: 
1. Understand 
the 
rela.ve 
cost 
in 
.me 
and 
money 
of 
its 
different 
business 
ac.vi.es, 
across 
organisa.onal 
func.ons, 
and 
the 
extent 
to 
which 
these 
ac.vi.es 
create 
compe..ve 
advantage? 
2. Create 
the 
most 
value 
from 
its 
partnerships 
and 
alliances? 
3. Develop 
quality 
rela.onships 
between 
its 
discipline, 
divisions 
and 
teams? 
Example 
tools 
• Value 
chain 
analysis 
• Alliance 
strategy 
mapping 
Source: 
Right 
Lane 
Consul.ng, 
2014 
6
Agile 
resources 
Descrip.on 
The 
ac(ve 
alloca(on 
of 
human 
and 
financial 
resources 
to 
dynamic 
priori(es 
Typical 
ques(ons 
to 
address 
How 
well 
does 
your 
organisa.on: 
1. Effec.vely 
manage 
the 
resourcing 
of 
both 
‘now’ 
and 
‘new’? 
2. Extract 
itself 
from 
areas 
of 
diminishing 
reward 
or 
advantage? 
3. Commit, 
focus, 
funds 
and 
resources 
to 
areas 
of 
promise? 
Example 
tools 
• Zero 
based 
budge.ng 
• Agile 
resource 
alloca.on/capacity 
management 
across 
projects 
and 
BAU 
Source: 
Right 
Lane 
Consul.ng, 
2014 
7
8 
Used 
together, 
the 
three 
forms 
of 
agility 
can 
not 
only 
increase 
speed 
and 
responsiveness 
but 
also 
reduce 
waste 
INCREASE 
speed 
and 
responsiveness 
Source: 
Right 
Lane 
Consul.ng, 
2014 
REDUCE 
waste 
Organisa(onal 
agility 
Agile 
ways 
of 
working 
Agile 
strategy 
Agile 
resources
9 
Organisa(onal 
agility 
can 
be 
developed 
and 
matured
10 
10 
prac(cal 
(ps 
can 
help 
you 
improve 
your 
agility* 
Agile 
strategy 
1. Keep 
abreast 
of 
alternate 
strategic 
pathways 
2. Dynamically 
review 
strategic 
priori.es 
3. Evaluate 
senior 
management 
priori.es 
and 
.me 
alloca.on 
Agile 
ways 
of 
working 
4. Know 
where 
you 
add 
dis.nc.ve 
value 
and 
where 
others 
do 
it 
be1er 
5. Align 
and 
realign 
key 
service 
providers 
frequently 
Agile 
resources 
6. Foster 
transparency 
in 
financial 
and 
human 
resource 
alloca.on 
7. Fight 
resource 
alloca.on 
intransigence 
8. Create 
a 
fund 
for 
ad 
hoc 
investment 
requirements 
9. Reallocate 
resources 
more 
frequently, 
as 
necessary 
10. Staff 
projects 
more 
flexibly 
Source: 
Right 
Lane 
Consul.ng, 
2014; 
*Note: 
Some 
of 
these 
ideas 
were 
adapted 
from 
Birshan, 
Engel 
& 
Sibony 
(2013)
1. Organisa.onal 
agility 
creates 
value 
– 
agile 
organisa.ons 
drama.cally 
outperform 
unadap.ve 
organisa.ons 
2. An 
agile 
organisa.on 
is 
agile 
in 
strategy, 
ways 
of 
working 
and 
resources 
3. These 
three 
agile 
levers, 
used 
together, 
can 
not 
only 
increase 
speed 
and 
responsiveness 
but 
can 
also 
reduce 
waste 
4. For 
more 
informa.on 
on 
the 
topic 
of 
organisa.onal 
agility, 
please 
see 
the 
Right 
Lane 
white 
paper 
.tled: 
Organisa(onal 
Agility: 
How 
to 
knock 
down 
structures 
that 
are 
limi(ng 
your 
organisa(on’s 
effec(veness. 
It 
can 
be 
found 
at 
www.rightlane.com.au 
under 
the 
knowledge 
tab. 
11 
Conclusion 
Source: 
Right 
Lane 
Consul.ng, 
2014
About 
Right 
Lane 
12 
About Right Lane 
Right Lane is an Australian management consulting 
firm that specialises in moderating executive team and 
board workshops and facilitating strategy and planning 
processes for midsized organisations. 
Right Lane was established in 1997 to help private, 
not for profit and public sector clients to clarify and 
accelerate their future plans. Over the past 15 years, we 
have helped the executive teams and boards of more 
than 80 organisations to define and adapt their direction 
and strategy, identify and clarify their priorities, align their 
efforts with their aspirations, get their major projects 
started and finished, and measure and improve their 
performance. 
In 2011, Right Lane became, to our knowledge, 
Australia’s first ‘for benefit’ management consulting 
firm. This means that we have capped our return on 
shareholder funds at reasonable levels, rather than 
seeking to maximise financial returns, which allows us to 
concentrate on our mission of contributing to society by 
helping organisations that do good do better. 
Our areas of focus 
t Developing and managing strategy and planning 
processes for clients 
t Implementing strategy through aligning and 
engaging the organisation, and measuring and 
monitoring performance 
t Leading strategic projects, such as pre-merger 
analysis, pricing, new product feasibility and growth 
options evaluation 
t Facilitating clients’ board and executive team 
workshops
For 
more 
informa(on 
If 
you 
would 
like 
to 
discuss 
any 
aspect 
of 
this 
paper 
in 
further 
detail, 
please 
contact: 
Ma_ 
Hardy 
ma1@rightlane.com.au 
www.rightlane.com.au 
13
Contact 
our 
office 
Right 
Lane 
Consul.ng 
14 
Risley 
St 
Richmond 
VIC 
3121 
t 
61 
3 
9428 
5336 
www.rightlane.com.au 
14

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Organisational Agility Developed and Matured

  • 1. Organisa(onal agility Ma1 Hardy, Right Lane Consul.ng 29 April 2014 Private and confiden.al
  • 2. 1 What is agility? Agility originates from the La.n agilitatem referring to mobility, nimbleness and quickness We hear the term today in many different contexts In medieval .mes, the word agile came to mean ‘to do, act’ The essence of the word agility today is ‘the ability to adapt quickly and effec(vely to changing circumstances’ Agility can be developed and matured Source: Right Lane Consul.ng, 2014
  • 3. 2 Consider the loom…
  • 4. Grouping of 2,500 US public companies based on assessment of adap(veness, market capitalisa(on $US billions 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Agile organisa(ons Inflexible organisa(ons 2006 2011 3 Agile organisa(ons drama(cally outperform inflexible ones 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2006 2011 + 100% – 40% Source: Adapted from Reeves, M, Mathur, N 2012 ‘The Most Adap.ve Companies 2012, Winning in an age of turbulence’, The Boston Consul.ng Group, August; Right Lane Consul.ng
  • 5. An organisa(on can be agile in strategy, ways of working and resources Source: Right Lane Consul.ng, 2014 4 Agile ways of working Agile resources How we adapt strategic priori.es to changing circumstances The capacity to develop and adopt the right delivery capability The ac.ve alloca.on of human and financial resources to dynamic priori.es Agile 1 strategy 2 3 e.g. planning under uncertainty, dynamically reviewing priori.es (e.g. 5+1) e.g. Linking budgets to value chain, crea.ng the most value from partnerships and alliances e.g. zero based budge.ng, agile capacity management/ resource alloca.on
  • 6. Descrip.on How we adapt strategic priori(es to meet changing circumstances Typical ques(ons to address How well does your organisa.on: 1. Understand the key assump.ons underlying its strategy and the triggers or early warning signs for these assump.ons? 2. Ensure visibility of the make-­‐up and progress of the overall porbolio of projects, not just the individual projects? 3. Ensure everyone’s individual priori.es are directly linked to their manager’s priori.es, in a way that doesn’t feel like micro-­‐management? Example tools • Strategic pathway planning (small number of alterna.ve pathways) • 5+1 approach to determining priori.es Agile strategy Source: Right Lane Consul.ng, 2014 5
  • 7. Agile ways of working Descrip.on The capacity to develop and adopt the right delivery capability Typical ques(ons to address How well does your organisa.on: 1. Understand the rela.ve cost in .me and money of its different business ac.vi.es, across organisa.onal func.ons, and the extent to which these ac.vi.es create compe..ve advantage? 2. Create the most value from its partnerships and alliances? 3. Develop quality rela.onships between its discipline, divisions and teams? Example tools • Value chain analysis • Alliance strategy mapping Source: Right Lane Consul.ng, 2014 6
  • 8. Agile resources Descrip.on The ac(ve alloca(on of human and financial resources to dynamic priori(es Typical ques(ons to address How well does your organisa.on: 1. Effec.vely manage the resourcing of both ‘now’ and ‘new’? 2. Extract itself from areas of diminishing reward or advantage? 3. Commit, focus, funds and resources to areas of promise? Example tools • Zero based budge.ng • Agile resource alloca.on/capacity management across projects and BAU Source: Right Lane Consul.ng, 2014 7
  • 9. 8 Used together, the three forms of agility can not only increase speed and responsiveness but also reduce waste INCREASE speed and responsiveness Source: Right Lane Consul.ng, 2014 REDUCE waste Organisa(onal agility Agile ways of working Agile strategy Agile resources
  • 10. 9 Organisa(onal agility can be developed and matured
  • 11. 10 10 prac(cal (ps can help you improve your agility* Agile strategy 1. Keep abreast of alternate strategic pathways 2. Dynamically review strategic priori.es 3. Evaluate senior management priori.es and .me alloca.on Agile ways of working 4. Know where you add dis.nc.ve value and where others do it be1er 5. Align and realign key service providers frequently Agile resources 6. Foster transparency in financial and human resource alloca.on 7. Fight resource alloca.on intransigence 8. Create a fund for ad hoc investment requirements 9. Reallocate resources more frequently, as necessary 10. Staff projects more flexibly Source: Right Lane Consul.ng, 2014; *Note: Some of these ideas were adapted from Birshan, Engel & Sibony (2013)
  • 12. 1. Organisa.onal agility creates value – agile organisa.ons drama.cally outperform unadap.ve organisa.ons 2. An agile organisa.on is agile in strategy, ways of working and resources 3. These three agile levers, used together, can not only increase speed and responsiveness but can also reduce waste 4. For more informa.on on the topic of organisa.onal agility, please see the Right Lane white paper .tled: Organisa(onal Agility: How to knock down structures that are limi(ng your organisa(on’s effec(veness. It can be found at www.rightlane.com.au under the knowledge tab. 11 Conclusion Source: Right Lane Consul.ng, 2014
  • 13. About Right Lane 12 About Right Lane Right Lane is an Australian management consulting firm that specialises in moderating executive team and board workshops and facilitating strategy and planning processes for midsized organisations. Right Lane was established in 1997 to help private, not for profit and public sector clients to clarify and accelerate their future plans. Over the past 15 years, we have helped the executive teams and boards of more than 80 organisations to define and adapt their direction and strategy, identify and clarify their priorities, align their efforts with their aspirations, get their major projects started and finished, and measure and improve their performance. In 2011, Right Lane became, to our knowledge, Australia’s first ‘for benefit’ management consulting firm. This means that we have capped our return on shareholder funds at reasonable levels, rather than seeking to maximise financial returns, which allows us to concentrate on our mission of contributing to society by helping organisations that do good do better. Our areas of focus t Developing and managing strategy and planning processes for clients t Implementing strategy through aligning and engaging the organisation, and measuring and monitoring performance t Leading strategic projects, such as pre-merger analysis, pricing, new product feasibility and growth options evaluation t Facilitating clients’ board and executive team workshops
  • 14. For more informa(on If you would like to discuss any aspect of this paper in further detail, please contact: Ma_ Hardy ma1@rightlane.com.au www.rightlane.com.au 13
  • 15. Contact our office Right Lane Consul.ng 14 Risley St Richmond VIC 3121 t 61 3 9428 5336 www.rightlane.com.au 14