Organizational AgilityHow businesses can survive and thrive in fast changing marketsGamal Ahmed Arafa
The World changes rapidly Normal Industries Globalized Industries • Business adapt slowly • Business changes rapidly • Change takes place infrequently • New models every day • The competitive game shifts • Fast & efficient R&D periodically • Innovation • strategic planning may be sufficient • Change process is highly complex and systematic • Organizational Agility is required
Organizational Agility Definition • The capability of a company to rapidly change or adapt in response to changes in the market. • A high degree of organizational agility can help a company to react successfully to the emergence of new competitors, the development of new industry-changing technologies, or sudden shifts in overall market conditions.
Organizational Agility Organizational Agility is an on-going capability for real time strategic sensitivity, quick collective commitments, and fast and strong resource deployment.
Organizational Agility Fast Strategically Agile Entrepreneurial companies companies Speed of change Operational – driven Companies driven by companies strategic planning Slow simple/ linear Complex / systematic Nature of change
Dimensions of Organizational Agility Strategic Sensitivity Open Strategy Process Heightened Strategic Alertness High Quality Internal Dialogue Resource Fluidity Resource usage dissociated from ownership Interdependent structures and Transparency and fairness in people rotation distributed roles Plug and play architectures Cabinet responsibility Top team interdependency Shared values Collective Commitment
Drivers of Organizational Agility Emotional Drivers: Organizational Drivers: Source of energy and apathy Re-integrating the organization, Pride of building a good brand and creating interdependent processes, becoming a leader Leading by example common rewards, integrated value Affiliation and belonging creation capabilities Activities Capabilities Strategic Agility Relational Drivers: Cognitive Drivers: Re-uniting the top team, fostering Developing and sharing new an open and honest dialogue broader perspectives engaging in around key collective decisions, and higher quality dialogues sticking with them.
Most companies die not because they do the wrongthings, but because they keep doing what used to be the right things… for too long