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Organizational Agility

How businesses can survive and thrive in fast changing markets Gamal Ahmed Arafa

The World changes rapidly

Normal Industries
Business adapt slowly

Globalized Industries
Business changes rapidly

Change takes place infrequently

The competitive game shifts periodically strategic planning may be sufficient

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
Fast Entrepreneurial companies Strategically Agile companies

Speed of change

Operational driven companies Slow simple/ linear Nature of change

Companies driven by strategic planning

Complex / systematic

Dimensions of Organizational Agility

Strategic Sensitivity

Open Strategy Process

Heightened Strategic Alertness High Quality Internal Dialogue

Resource Fluidity

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

Collective Commitment

Drivers of Organizational Agility

Emotional Drivers:
Source of energy and apathy Pride of building a good brand and becoming a leader Leading by example Affiliation and belonging

Organizational Drivers: Re-integrating the organization, creating interdependent processes, common rewards, integrated value creation capabilities Activities


Strategic Agility

Cognitive Drivers: Developing and sharing new broader perspectives engaging in higher quality dialogues

Relational Drivers: Re-uniting the top team, fostering an open and honest dialogue around key collective decisions, and sticking with them.

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