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Organizational Agility
How businesses can survive and thrive in fast changing markets

Gamal 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 wrong
things, but because they keep doing what used to be
        the right things… for too long
Thank You
Based on study by Doz and Kosonen

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Organizational Agility: How Businesses Can Survive Fast Changing Markets

  • 1. Organizational Agility How businesses can survive and thrive in fast changing markets Gamal Ahmed Arafa
  • 2. 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
  • 3. 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.
  • 4. Organizational Agility Organizational Agility is an on-going capability for real time strategic sensitivity, quick collective commitments, and fast and strong resource deployment.
  • 5. 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
  • 6. 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
  • 7. 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.
  • 8. Most companies die not because they do the wrong things, but because they keep doing what used to be the right things… for too long
  • 9. Thank You Based on study by Doz and Kosonen