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