Agility in business is more than just speed and flexibility. It’s a company’s ability to sense and respond to change proactively and with confidence. This agility requires a balance between stability and dynamism, achieved through a three-pronged approach. Firstly, an agile company should have a stable backbone, with standardised systems and processes that provide a foundation for rapid response. Secondly, they should possess dynamic capabilities, with the ability to reconfigure resources and routines quickly to meet new challenges. Lastly, they should have an entrepreneurial mindset to encourage innovation and risk-taking.
Companies can achieve this agility through architectural innovation, which involves reconfiguring the organisation’s existing skills and resources in new ways. This requires a focus on four key areas: resources, processes, values, and the organisation’s structure. By leveraging these areas, businesses can create a flexible and responsive architecture that promotes agility. This includes establishing a culture of continual learning and adaptation, creating a flexible organisational structure, and developing dynamic capabilities to sense changes in the market and respond effectively.
Agility is not a one-size-fits-all concept. It requires a tailored approach, taking into account the specific needs and context of each organisation. By focusing on architectural innovation and creating a balance between stability and dynamism, companies can become more agile and better prepared to navigate the uncertainties of the business landscape.
Go to source article: https://sloanreview.mit.edu/article/architect-your-company-for-agility/