Competing Through Organizational Agility
Published 2/1/2010
Author: Donald Sull
Don Sull is a professor of management practice at the London Business School and author of The Upside of Turbulence, which introduced the concept of operational, portfolio, and strategic agility.
Summary
In turbulent markets, organizational agility, which Don Sull define as the capacity to identify and capture opportunities more quickly than rivals do, is invaluable. Executives know this: a recent McKinsey survey found that nine out of ten executives ranked organizational agility both as critical to business success and as growing in importance over time. The benefits of enhanced agility, according to survey respondents, include higher revenues, more satisfied customers and employees, improved operational efficiency, and a faster time to market.
Over the past decade, Don has analyzed more and less successful companies in some of the world’s most turbulent geographical and product markets, including China, Brazil, European fast fashion, and financial services. This research underscores the importance of agility for success in turbulent markets. The findings also revealed three distinct types of agility: strategic, portfolio, and operational. Strategic agility consists of spotting and seizing game-changing opportunities. Portfolio agility is the capacity to shift resources—including cash, talent, and managerial attention—quickly and effectively out of less promising business areas and into more attractive ones. And operational agility involves exploiting opportunities within a focused business model.
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Paula Brooks wrote:
Posted on : 8/26/2010