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Business Agility

Business agility refers to an organization's culture, leadership, strategy, and governance that allows it to adapt effectively to uncertainty and complexity. An agile business can swiftly respond to market changes, customer needs, and create competitive advantages. There are seven key aspects of business agility: agile culture, leadership, strategy, governance, people, operations, and change agility. McKinsey & Company aims to improve client performance through expertise and innovative operations. It focuses on tailored solutions, customer experience, and developing skills to navigate changing environments.

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0% found this document useful (0 votes)
73 views7 pages

Business Agility

Business agility refers to an organization's culture, leadership, strategy, and governance that allows it to adapt effectively to uncertainty and complexity. An agile business can swiftly respond to market changes, customer needs, and create competitive advantages. There are seven key aspects of business agility: agile culture, leadership, strategy, governance, people, operations, and change agility. McKinsey & Company aims to improve client performance through expertise and innovative operations. It focuses on tailored solutions, customer experience, and developing skills to navigate changing environments.

Uploaded by

Haya Awan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Business Agility

Business agility is one of the most widely discussed topics for business around the world. With

the increase in complexities of the business world, the need for better frameworks and tools to

make business efficient to deal with these complexities has been increased. Business agility is

one such framework that can be defined as the organizational culture, leadership, strategy and

governance of the organization that is effective to add up the values to the stakeholders,

particularly those which operate in a very uncertain and complex environment that is full of

ambiguity. The agility of any business makes it adapt to the changes in the market, work on the

solution to the problems, have a response to the customers in a swift and rapid manner, and

create competitive advantages. In this way, an agile business is that which is able to respond to

opportunities and threats present in the internal and external environment effectively and

efficiently.

The framework of the agility of the business has seven main ingredients that build a strong

business with a high level of agility (Agile Business Consortium, n.d.).

Agile culture:

Agile culture refers to the culture which provides the organization with the core values,

behaviour and practice which will help it to progress in the working environment and world,

which is full of volatility, uncertainty and complexity. The success of the agile culture comes

from the promotion and encouragement of the people who have flexible and innovative

behaviour within the organization. These people are full of intrinsic motivation and have

autonomy, mastery and purpose.

Agile leadership:
For a working environment that is full of flexibility, resilience, and adaptability, it is important to

have a leader who is able to handle these all. Agile leaders tend to develop everyone as leaders at

every level and believe that there is potential in every person, and therefore a sharp mindset to do

so is significant to provide with such opportunities. Agile leadership is different from traditional

leadership, and their styles and willingness to lead are also different. Their thinking and actions

all focus on being agile rather than doing agile. And for this purpose, they keep on creating

realistic expectations from the other employees as well.

Agile strategy:

Agile started refers to a detailed plan that will evolve the response to any sudden event and

incident and create that response in a way that it would have its pace relevant to the environment

that it needs to respond (Badakhshan et al., 2019). The flexibility in the planning of the strategy

will prove that the organization is able to keep its operation relevant to the need of the time and

meet the volatility and complexity.

Agile governance;

Governance refers to the monitoring of the methods through which the organization will achieve

its goals, manage its risks and optimize its performance. Agile governance demonstrates the level

of control through transparency of the process and performance. This transparency remains

consistent at all levels and for every individual.

Agile people:

Agile people are those who remain curious and are keen to know and learn new things and

develop their skills to meet the requirement of the volatile environment in which they work.

They improve their capabilities with the help of experience and study.
Agile operations:

Agile operations are the combination of the above-presented factors which impacts the normal

function of the organization and with the help of which they are able to reduce the adverse

impact of the complexity of the agile environment (Badakhshan et al., 2019).

Change agility:

The last factor refers to the situation when the change in the environment of the business exceeds

the capabilities of the normal process of the organization (Gunasekaran & Yusuf, 2002);

therefore, in such a situation, the business will require to implement new operations that are able

to handle the agile changes.

McKinsey and company:

With more than 30,000 employees McKinsey and company is a global management consulting

firm that provides its services for the major organization, government and non-governmental

sectors. They allow their customers to take benefit from the expertise of the company to make

lasting improvements in their organization and increase their level of performance (About Us,

n.d.) . The goal of the company is to help the organization understand their ultimate goal.

For the operational management at the company, it focuses on making its operations innovative

and technological so that it can meet the requirements of the current world dynamic

environment. The values of the company include adherence to the highest professional standards,

improving client performance, and creating a non-competitive environment for people who have

exceptional abilities (Our Purpose, Mission, and Values, n.d.).


To achieve these values, the operations at the company have huge importance. The unique way

of working of the company is the main reason why it stands in the top position in terms of the

services providing companies. The creativity in the operations provides any organization with a

competitive advantage that underlies the success of the company.

The creation of the impact is the focus of the company. Rather than making an individual plan

for every client, the company provides a tailored plan customized according to the needs of the

client. In this way, the company is able to understand where it needs to change the operations for

the relevant client. Enhancing expertise and harnessing the people who have the highest skills in

their relevant sector is another way to achieve its goals (McKinsey & Company, 2015). Since the

capital of the company is based on knowledge and ideas, therefore the tools and techniques are

based on the requirement of the environment in which they are working. This expertise in any

organization helps the organization to achieve its goals and stand out in the competition. Like

any other agile business, which requires to have an agile leader having more responsibilities, the

company encourages the top management perspective in the form of taking responsibility and

analyzing the problem and coming up with effective solutions (McKinsey & Company, 2015).

The independence of the company's operations allows it to deal with the dynamic environment

and put forwards the truth that is present in the market. An operational excellence program is

another way for the company to have higher expertise that is agile and innovative to deal with

the continuously changing environment. The development of the performance and the

generations of ideas help the company to reduce the level of competition in the market.

Customer experience:

McKinsey and company have a very comprehensive approach to increase its services for the

Omnichannel customer and increase their engagement. The service of the company is the
solution to a number of problems. The customer experience is improved with the help of

reactive, siloed customer care and a proactive and consultative approach to increase the

engagement of the customers. The core of the strategy is to increase the identification of the

needs of the customers. With the help of understanding these needs, the customers are provided

with a tailored solution that increases the level of customer experience (About Us, n.d.). The

transition to the proactive approach of McKinsey and company is the major reason for the

customer relationship effectiveness; however, it focuses on the barriers which occur in the way

of achieving these high levels of customer relations.

To increase the customer experience, McKinsey and the company focuses on three primary

areas, frontline management skills, customers and offers and technology. Being an agile

company, it is able to understand that the customers of the company are constantly changing;

therefore, it should keep on seeking the ways which are better to serve them with the right

operations. The innovation in the talent and the technology helps the company to focus on the

key areas where the change might occur. Therefore the design, analytics, and digital capabilities

of the company are the main focus to develop a higher customer experience (About Us, n.d.). The

customers range for the company is also very diverse. It serves every level of the organization

and includes the higher-level executives to the nonprofit fund liner in the organization. These

levels are directly interacted by the company to put forward better solutions to the problems of

the organizations that can be worked and practices in the organizations directly (About Us, n.d.).

The relationships with the consumers are the long terms and the development of the skilled

workforce, and increasing improvement in the operational skills of the customers that it is

serving. No matter how challenging the customer's needs are, the company provides services that

are highly practical and direct for the company.


This is not a very easy task for the company; however, the help of the leader and the operations

of the company, which are not only agile but also very innovative, help the company to increase

the customers' experience (About Us, n.d.). With the help of strategies a transformative

technology, there were effective to increase the customer experience. The customers' experience

is mainly added by the solutions which are innovative enough for the companies and are long-

lasting so that customers can benefit from these solutions and build a workforce that is based on

diversity and an innovative approach to thinking. The sustainable and inclusive growth solutions

are the basic building blocks of the higher customers experience.


References:

About Us. (n.d.). McKinsey & Company. https://www.mckinsey.com/about-us/overview

Agile Business Consortium. (n.d.). Business Agility. Https://Www.Agilebusiness.Org/.

https://www.agilebusiness.org/page/WhatisBusinessAgility

Badakhshan, P., Conboy, K., Grisold, T., & vom Brocke, J. (2019). Agile business process

management. Business Process Management Journal, 26(6), 1505–1523.

https://doi.org/10.1108/bpmj-12-2018-0347

Gunasekaran, A., & Yusuf, Y. Y. (2002). Agile manufacturing: A taxonomy of strategic and

technological imperatives. International Journal of Production Research, 40(6), 1357–

1385. https://doi.org/10.1080/00207540110118370

McKinsey & Company. (2015). The sky’s the limit Operations at McKinsey.

McPherson, B. (2016). Agile, adaptive leaders. Human Resource Management International

Digest, 24(2), 1–3. https://doi.org/10.1108/hrmid-11-2015-0171

Our purpose, mission, and values. (n.d.). McKinsey & Company.

https://www.mckinsey.com/about-us/overview/our-purpose-mission-and-values#:

%7E:text=Our%20mission,excites%2C%20and%20retains%20exceptional%20people.

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