Have you noticed all the buzz surrounding the concept of “Agile” lately? If so, you may be wondering just what this trend is all about and why it’s become such a hot topic in the world of business. According to McKinsey, a staggering 75% of S&P 500 companies are predicted to vanish by 2027, many of them due to their failure to adapt to the ever-evolving business landscape. With that in mind, business agility is considered key for survival in today’s business world. So, what is now Agile im Business and why is it so important?

What is Agile in business?

Business Agilty is the ability of an organization to swiftly adapt and respond to changes in its internal and external environments. It involves fostering a dynamic organizational culture and mindset with a set of practices that can effectively navigate uncertainty, seize opportunities, and rapidly adjust strategies and operations as needed. Especially crucial for thriving in the digital age, ‘Being Agile’ empowers a business to respond quickly to market changes and emerging opportunities with innovative, digitally-enabled business solutions.

Why is Agile important for business?

“The organizations we created in the 20th century were designed much more for reliability and efficiency than for agility and speed.”

— John P. Kotter, Accelerate

Traditional organizations are often characterized by hierarchical structures, rigid processes, and a focus on efficiency. While these characteristics were suitable for stable and predictable environments, they may be less effective in keeping up with the pace of change brought about by the Age of Digital. In our current era, every company is a digital technology company, whether they are aware of it or not. Today, almost all organizational changes and product developments – such as transitioning to the cloud, creating a new vaccine, or designing a new model of car – involve technology. By 2030, it’s projected that software will account for half of the total cost of a new car. In response to this evolving landscape, Agile, and with its Agile Methodologies, empowers organizations with the means to adjust and optimize their processes, people, and technology to succeed in today’s daynamic business environment.

Companies who truly embody Business Agility excel in these aspects:

• Strategic Flexibility: Agile Organizations review and adjust their strategies as needed, aligning their goals to changes in the market, technology, or customer preferences.
• Innovation:  Cultivating a culture of creativity, experimentation, and continuous improvement is essential for being an Agile. These Businesses don’t shy away from trying new things and learning from failures.
• Customer-Centricity: Putting the customer at the center is crucial for business agility. This means prioritizing customers’ needsand feedback to guide product development and decision-making.
• Collaboration: Agile organizations promote collaboration and open communication across teams and departments. This helps break down silos, facilitates knowledge sharing, and enhances overall organizational effectiveness.
• Iterative and Incremental Approaches: Embracing methodologies like Scrum or SAFe that allow for iterative and incremental development to release products or updates more frequently.
• Leadership and Empowerment:  Leaders in agile organizations  support autonomy, encourage decision-making at all levels and create an environment that values learning and growth.

If you are considering introducing Agile into your company, read the following article: Agile Frameworks – Choosing Your Starting Point.