Organizational Agility is a fundamental axis for companies looking not just to survive, but to thrive in the digital era. This concept goes beyond the mere ability of a company to adapt quickly to changes; it's about a holistic approach that permeates all aspects of the business, ensuring it is constantly aligned with its strategies, capable of maximizing the value delivered to customers, and maintaining a culture of continuous innovation. Thus, there are five fundamental pillars that support Organizational Agility: Strategy Translation, Building Companies around Value Streams, Continuous Improvement, Communities of Practice, and Innovation.
»Strategy Translation
Emphasizes the importance of breaking down organizational strategy into tangible operational actions. This means that high-level strategic goals and objectives must be translated into specific initiatives that can be implemented and monitored on a daily basis within the company. This translation ensures that everyone in the organization, regardless of level or function, understands how their activities contribute to the broader objectives of the company, promoting a sense of purpose and collective direction.
»Building Companies around Value Streams
Instead of structuring the organization into isolated departments, the second pillar proposes Building Companies around Value Streams. This focus centers on identifying and optimizing processes that create value for the customer, from product conception to delivery. By organizing the company around these value streams, greater interdepartmental collaboration is promoted, inefficiencies are reduced, and the delivery of value to the customer is accelerated, contributing to greater satisfaction and loyalty.
»Continuous Improvement
It is one of the cornerstones of Organizational Agility. It encourages a culture where customer feedback and performance analyses are proactively used to refine processes, products, and services. This commitment to continuous improvement not only increases operational effectiveness but also ensures that the company remains relevant and competitive in an ever-evolving market.
»Communities of Practice
Refer to the creation, within the organization, of cross-functional groups that share interests, problems, or areas of expertise. These communities facilitate knowledge sharing, promote continuous learning, and foster innovation. By encouraging collaboration beyond departmental boundaries, Communities of Practice break down silos, enrich the employee experience, and enable creative solutions for complex challenges.
»Innovation
Highlights the need for a systematic approach to generating new ideas, exploring emerging opportunities, and developing innovative solutions that meet the complex and evolving needs of customers. Innovation should not be seen as the responsibility of a single department, but rather as an activity integrated into the company's culture, encouraging everyone to contribute to the continuous evolution of the business.
In summary, Organizational Agility through these five pillars offers a roadmap for companies wishing to be resilient, adaptable, and innovative. By implementing these principles, organizations can expect not only to improve their operational performance but also to strengthen their competitive position in an increasingly dynamic business world.
Article by Luís Gonçalves, co-director of the Agile Organisations programme.
