In an extremely fast-paced world, change is pretty much the only thing you can rely on happening. It’s the only constant in the business world, which is the reason why many companies fall almost as fast as they emerged.
If a business is to keep up with all the changes, they need to adapt to just about everything quickly. Clearly, strategic agility plays an important role here. So what is strategic agility, and how can businesses benefit from it? Read this guide and find out.
What is Strategic Agility?
Strategic agility is the ability for organisations to see shifts inside and outside the business environment in which they operate. It’s all about staying competitive by recognising and capitalising on opportunities when you see fit. An agile organisation can identify potential threats and mitigate or prevent them from materialising in the first place.
What’s So Great About Strategic Ability?
As markets have become more competitive and businesses more vulnerable to disruption, there has been an increasing focus on organisational agility and the ability to respond to and manage change. Having the skill to adapt allows business leaders to proactively manage the resulting key strategic choices critical to their business’s future value.
Leading organisations are now trying to build and develop their own strategic agility so they can respond faster to drastic changes in the market in a more targeted way than their competitors. Yes, strategic agility actually allows you to have the foresight to predict what will happen to the market and your competitors.
What Is at the Core of Strategic Agility?
At the very core of strategic agility lies four key attributes that every company should try to embody. These four attributes are:
1. A healthy level of obsession paired with understanding, monitoring, and analysing the key drivers of value in the market is the first one. This goes far beyond just normal management reporting. You need a dedicated group of people focused on continually analysing the multiple factors that created value for any business. This will help you develop highly targeted commercial strategies for particular niches where you can dominate the market.
2. A willingness to invest in the use of data analytics is also required if you want to become an agile organisation. This is needed for developing a dynamic fact-based that can be used to enhance market understanding and responsiveness.
3. The use of dynamic strategic simulation techniques to test just how internal and external events can impact future value. If you want to move from being reactive to being predictive in your actions, you need to rely on all the data in your possession and simulate how things are going to pan out. Only then will you be ready to take on whatever future challenges you face.
4. A level of paranoia in management about market volatility is the final core attribute. This means that your leadership and governance models should encourage executive challenge both internally and externally. You’ll become much more sensitive to your environment and learn how minute changes in the market can be identified as either an opportunity or a challenge.
If you feel like your company is almost always one step behind the market, you may need to insert more agility into your business to keep up with the changes. This is where strategic agility comes into play and enables companies to always keep up and even stay several steps ahead of the competition.
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