Strategic agility is the capacity to shift from one dominant strategy to another. It is a three-part process involving strategic sensitivity, leadership unity, and resource fluidity. Strategic sensitivity is the sharpness of perception of the need to change strategy. It’s about being alert to small changes in the environment that might require a strategic response. Leadership unity is the ability of the top team to make bold, fast decisions, without being bogged down by “win-lose” politics or paralysing debates. Resource fluidity refers to the internal capability to re-allocate people and resources quickly.
Strategic agility is not about responding to change, but about leading it. Companies like Amazon, Apple, Google and Microsoft are often cited as examples of strategic agility. These firms not only adapt to change but also shape their strategic environment to their advantage. They have created new industries and transformed existing ones. They have redefined the basis of competition, redrafted the rules of the game and reshaped the boundaries of their businesses. They have done all this while delivering superior financial performance.
Strategic agility is fundamentally about a learning journey. It involves making a major strategic change, seeing the results, modifying the strategy accordingly and then making another strategic change. It is a process of continual learning and adaptation. It is a journey, not a destination.
Go to source article: https://www.forbes.com/sites/stevedenning/2018/01/28/what-is-strategic-agility/?sh=20a6b6faa0b1