Commonly Used Terms
Business agility refers to the way a business stays agile when markets fluctuate. Given that market volatility is high because of the various variables that constantly change, it is difficult to accurately predict market trends. Therefore businesses need to have some level of flexibility in order to deal with such disruptions.
Business agility, thus, is an organizational method that incorporates the elasticity of a business. Agility deals with any unexpected internal or external changes.
Agility generally requires two things:
- Speed of dynamic capability to move fast and respond to the changes occurring in the market or in the organization. It refers to the speed at which a company adapts to change.
- Stability or a foundation that the organization can depend on in changing times. This refers to the backbone of the company that doesn’t change even when other factors are fluctuating.
The following steps are involved in achieving agility in business :
- Shifting the organizational culture
It’s essential to set the tone of the business in such a way that the organization allows the employee’s room to make mistakes and learn, an organization that gives more importance to feedback, fuels innovation, and differences in opinion. It’s important to have a healthy work environment where the employees feel free to contribute to the workings of the organization. This creates more flexibility in the work environment.
- The need for multiple approaches
An organization needs to approach its product delivery/ any disruption from multiple approaches; there needs to be a certain amount of elasticity in the way an organization functions. This promotes agility.
- Inspect, adapt, and act
It’s important to understand a situation and adapt to it before taking any action. If an on-going external crisis affects the functioning of the business, then the organization needs to inspect and adapt before taking any action to solve the issue. It wouldn’t help to rush into a decision without understanding the crisis first.
Business agility requires consistent efforts in shaping the policies of an organization, setting the rules for its functionality, and creating an employee-friendly environment that promotes innovation.