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

Gamal Ahmed Arafa

The World changes rapidly

Normal Industries

• Business adapt slowly

• Change takes place infrequently

• The competitive game shifts periodically

• strategic planning may be sufficient

Globalized Industries

• Business changes rapidly

• New models every day

• Fast & efficient R&D

• Innovation

• 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

Complex / systematic simple/ linear Nature of change

Slow

Fast

Speed of change

Operational – driven companies

Strategically Agile companies

Companies driven by strategic planning

Entrepreneurial companies

Dimensions of Organizational Agility

Strategic Sensitivity

Resource Fluidity

Collective Commitment

Open Strategy Process

Heightened Strategic Alertness

High Quality Internal Dialogue

Interdependent structures and distributed roles

Cabinet responsibility

Shared values

Resource usage dissociated from ownership

Transparency and fairness in people rotation

Plug and play architectures

Top team interdependency

Drivers of Organizational Agility

Organizational Drivers: Re-integrating the organization,

creating interdependent processes, common rewards, integrated value creation capabilities

Relational Drivers: Re-uniting the top team, fostering

an open and honest dialogue around key collective decisions, and sticking with them.

Emotional Drivers: Source of energy and apathy Pride of building a good brand and

becoming a leader Leading by example Affiliation and belonging

Cognitive Drivers: Developing and sharing new

broader perspectives engaging in higher quality dialogues

Activities

Capabilities

Strategic Agility

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