Agility in business is a key determinant of success, according to recent findings. Agility is defined as the ability to renew offerings, adapt the organisation, and flexibly adjust to market changes. Agile companies are 1.7 times more likely to be top performers, with a 70% chance of being in the top quartile of organisational health, the best indicator of long-term performance.
The benefits are seen across all sectors, including stable ones. Agile organisations enjoy a 20% EBITDA premium in stable environments and a 25% premium in volatile ones. The advantages are not limited to the digital or creative sectors but are applicable across the board.
An agile transformation involves three components: speed, stability, and a dynamic capability that links the two. Speed includes practices such as fast decision-making and execution, while stability involves setting clear roles and career paths. The dynamic capability is about how well the organisation reconciles speed and stability.
The journey to agility is a step-by-step process. It starts with assessing the current state of agility, followed by identifying the practices to start, stop or continue. The transformation is then scaled up from individual practices to the organisational level. It is a continuous journey, not a one-time change.
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