Organizational Agility on the Rise but still less than 25% Minority: McKinsey Global Survey October 2017

Organizational Agility on the Rise but still less than 25% Minority:  McKinsey Global Survey October 2017

McKinsey just released its October 2017 Global Survey with which they chose to focus on organizational agility:  How to Create an Agile Organization, for which the headlines are::

Rapid changes in competition, demand, technology, and regulations have made it more important than ever for organizations to be able to respond and adapt quickly. But according to a recent McKinsey Global Survey, organizational agility—the ability to quickly reconfigure strategy, structure, processes, people, and technology toward value-creating and value-protecting opportunities—is elusive for most.  Many respondents say their companies have not yet fully implemented agile ways of working, either company-wide or in the performance units where they work,2though the advantages are clear. Respondents in agile units report better performance than all others do, and companies in more volatile or uncertain environments are more likely than others to be pursuing agile transformations.

Few companies are yet reaping these benefits, but that may soon change; the results also indicate that organizational agility is catching fire. For many respondents, agility ranks as a high strategic priority in their performance units. Moreover, companies are transforming activities in several parts of the organization—from innovation and customer experience to operations and strategy—to become more agile.

Respondents in all sectors believe more of their employees should be working in agile ways.

The survey also confirms that agility pays off. Eighty-one percent of respondents in agile units report a moderate or significant increase in overall performance since their transformations began. And on average, respondents in agile units are 1.5 times more likely than others to report financial outperformance relative to peers, and 1.7 times more likely to report outperforming their peers on nonfinancial measures.6

Their research indicates that only 22% of organizations are achieving the agile blend of dynamism and stability.

 Indeed, that’s how I educate mid-market companies about agility – it’s about finding the agile middle of dynamism and stability and the agile-processes required comprising an Agility Operating System, answering the questions:

  • WHY?  Why all businesses are figuring out how to pivot to AGILE.  Most people assume that AGILE is for software companies only (Wrong) not least as they assume AGILE started with software (Wrong).  AGILE started with manufacturing companies.  Understanding VUCA (Volatility, Uncertainty, Complexity & Ambiguity).  Understanding why AGILE is the new LEAN!  Understanding why Mark Fields just got fired as the CEO of Ford and Jeff Immelt just stepped down as CEO of GE.
  • WHAT?  What is AGILE and what is it not.  AGILE is open to a lot of misinterpretation, myths and mental traps which we will shatter.  Understanding the AGILITY insights revealed from the design of a fighter-plane and the training of a fighter-pilot.  Understanding the challenge of TRIAGE on an offshore drilling rig.  Understanding how to institutionalize these AGILITY insights into any business.
  • WHO?  Most importantly, who do you need to be as a leader in your equation of AGILITY?  We will reveal 5 attributes of AGILITY to change your relationship with which reveal 5 roles of Everyday AGILE Leaders.  Understanding who you need to be as a team?  Understanding who you need to be as an organization.  Understanding the link between Peer-Advantage and Team-Advantage (see below).
  • HOW/WHERE/WHEN?  How, where and when do you get started on your transformation journey to AGILE, enterprise-wide and enterprise-deep.  Understanding how to TRIAGE a path which is prone to success.  Understanding what to do first, what to do next and what to do after that.  Understanding a progressive on-ramp of actions which you can get started with immediately.

McKinsey’s previous survey on agility is in the blog below, when they estimated only 12% of organizations were agile.  So indeed, Agile is on the rise, slowly.

Agility Pays. Wheel$pin Costs.

About Mike Richardson

Agility-Facilitator/Mentor/Coach; Agility-Author/Speaker; Agility-Board-Member/Chairman. All-round Agility Activist in everything I do, every day, everywhere, in every way. Provocative, Profound, Practical. At Eye-Level. With Love/Hate!

Leave a Reply

Your email address will not be published. Required fields are marked *