Change is a constant factor and those organisations that fail to keep up, risk falling behind. To achieve success, they must be able to adapt, respond and improve. This is where business agility makes all the difference.
But what is business agility? And why is it important today more than ever?
In this business agility 101 guide, we’ll break it down and explore how organisations can use business agility to stay competitive, resilient, and successful.
Business Agility Definition
Business agility is the competence of an organisation to adapt successfully to a rapidly and uncontrollably changing business environment. It is a progressive, people-centric approach to all aspects of business that is transforming how organisations operate and succeed in the modern world.
It embraces a mindset and way of working that is fast becoming essential for a world disrupted by environmental, social and economic issues.
Business Agility Meaning
Now we have a definition, but what does it truly mean?
Business agility is the ability of an organisation to adapt to change while still delivering value. It’s not just about following rules or processes. It’s about remaining flexible, collaborating effectively, and constantly striving for improvement.
Imagine it’s like an organisation being able to shift gears effortlessly. This capability enables teams to work more efficiently while ensuring the organization stays aligned with its objectives. Business agility entails breaking down silos, fostering collaboration, and cultivating a culture that emphasises learning and innovation.
It stems from the right mindset, culture, and values. By developing business agility, organisations can remain robust, resilient in the face of change and continue delivering value. It’s a mindset and way of working that helps organisations succeed in an unpredictable environment.
The terms organisational agility, corporate agility, or enterprise agility are often used interchangeably with business agility.
A business agility journey is a journey towards becoming the best organisation you can be...Peter Coesmans, Agile Business Consortium
The Framework for Business Agility
The Agile Business Consortium has developed the Framework for Business Agility (FBA) to help organisations to get a holistic, agnostic view of the agility of their organisation, or any part of it. It can help organisations survive and thrive in a volatile, uncertain, complex and ambiguous environment. It’s based on real-world experiences and practices of Agile Business Consortium members, organisations and other agile professionals.
This framework provides lenses to assess the agility of an organisation, and it will help you ask the right questions and define which new experiments and improvements you might want to engage in. It is comprised of four circles:
- Being Agile - At the core is “being agile” including agile leadership, agile culture and agile governance.
- Doing Agile - In the circle surrounding the core is “doing agile” including agile operations, agile support and agile change.
- Strategy - The circle connecting “being agile” and “doing agile” with the value delivery circle. This circle bridges the internal workings of the organisation with its external presence.
- Value Delivery - Which value is your organisation delivering to the outside world? What is your “why”? What value do you provide for your customers, for your people and for your organisation’s environment or ecosystem?
Our FBA consists of 10 elements and the agility of each element will influence the way the organisation operates and evolves in response to change.
Why do Organisations Need Business Agility?
The world is constantly evolving, and organisations today encounter various challenges, such as:
- Market disruptions from emerging competitors and shifting customer expectations
- Economic uncertainty stemming from both global and local financial changes
- Technology advancements like AI, automation, and digital transformation
- Talent challenges related to attracting and keeping skilled employees
- Sustainability and ESG pressures to achieve environmental and social goals
Hierarchal ways of working struggle to keep up. Organisations that depend on slow decision-making, rigid processes, and outdated frameworks risk being left behind. Business agility provides organisations the flexibility to pivot when needed. It focuses on delivering genuine value for customers, employees, and society.
Benefits of Business Agility
The advantages of business agility extend beyond merely responding to change. Organisations that adopt business agility not only endure change but leverage it to their benefit. Here’s how:
- Quicker decision-making that occurs closer to those performing the work, minimising bottlenecks and silos.
- Increased employee engagement leading to teams feeling more motivated and having the freedom to collaborate and contribute.
- Focus on outcomes over outputs to shift the focus from ‘doing more’ to delivering value with the appropriate effort
- A heightened value focus enables them to outperform competitors and remain relevant in a rapidly changing market.
- Improved customer satisfaction results from their ability to consistently deliver the right products or solutions in response to evolving customer demands
- A culture that encourages innovation and continuous improvements allows the organisation to pivot and implement new ideas at the right moment.
How Leading Organisations Are Adopting Business Agility?
Many leading organisations have adopted business agility and seen incredible results, including some organisations for our 2024 Agile Business Awards:
ShopRite X embraced a fail-fast, fail-forward mindset, encouraging teams to experiment with new ideas, learn quickly from their mistakes, and adapt accordingly. They emphasised that taking responsibility for failures should not be feared but seen as a chance to grow and improve. This approach fostered a workplace where innovation could flourish without the fear of blame or punishment. Watch case study...
Roche-Serbia improved healthcare with agility by becoming more flexible and responsive. Their transformation focused on agility, leading to better collaboration with stakeholders, the introduction of innovative treatments, and stronger partnerships, demonstrating that agility benefits are not just internal operations but the entire system. Watch case study...
Liberty Speciality Markets used a structured coaching approach, based on the International Coaching Federation (ICF) model, to strengthen leadership skills, self-confidence, and motivation. This method facilitated lasting change, allowing transformation to occur organically within the organisation. Watch case study...
Evaro shifted its focus from outputs to outcomes Instead of just monitoring the speed of releases, the company began prioritising meaningful patient and business outcomes. The introduction of PR FAQs (inspired by Amazon) ensured that every initiative was aligned with patient needs and business impact before resources were allocated for development. Watch case study...
How is Business Agility Different?
Organisations that prioritise business agility differ from hierarchical organisations in their flexibility. They decentralise decision-making and foster a culture of continuous learning. Instead of waiting for issues to escalate, they proactively identify and respond to changes. By emphasising learning, collaboration, and customer feedback, they ensure they remain ahead of market trends.
Conclusion - Why Business Agility Matters?
Business agility is a journey, not a destination. It’s not solely about implementing a specific methodology or achieving a final goal. It’s about ongoing improvement and adaptation. By adopting a business agility mindset, organisations position themselves for long-term success, no matter what the future may bring.
Want to Learn More?
• Explore our 2023 Insights Report and 2024 Insights Report to see how leading organisations are making business agility a reality.
• Discover the Framework for Business Agility (FBA) for further guidance on business agility.