Characteristics of enterprises with high agility
Relatively well-established enterprises such as Google, Facebook, Amazon, and ThoughtWorks, and the newer "disruptor" enterprises such as N26 Bank, Tesla, and Netflix are some of the well-known enterprises that have a high level of agility. These enterprises are seen as success stories with respect to not only anticipating and dealing with a rapidly-changing environment but also for leveraging it for their competitive advantage.
While agility is unique to each enterprise, businesses with high agility share some characteristics in terms of the outcomes they are able to achieve consistently. These include the ability to do the following:
- Anticipate and recognize change in different circumstances, that is, to spot both opportunities and threats emanating from change early. Zara, the Spain-based world's largest clothing retailer, is known to spot fashion trends early.
According to Donald Sull, a senior lecturer at MIT Sloan School of Management:
"Zara consistently spots these opportunities because it has built-in systems to collect real-time market data, to supplement statistical reports with periodic exposure to raw market data, and to share information widely throughout the organization. Zara's cross-functional design teams pore over daily sales and inventory reports to see what is selling and what is not, and they continually update their view of the market." [xiv]
- Leverage opportunities arising from change for gaining/improving competitive advantage.
According to Bart Schlatmann, ex-COO of ING Netherlands:
"Customer behavior, however, was rapidly changing in response to new digital distribution channels, and customer expectations were being shaped by digital leaders in other industries, not just banking. We needed to stop thinking traditionally about product marketing and start understanding customer journeys in this new omnichannel environment." [xv]
Bart goes on to mention that customer satisfaction scores increased meaningfully after ING embarked on the initiative to enhance agility.
- Make quick decisions, involving the relevant stakeholders, thereby being able to respond to the changed circumstances and opportunities in the most effective manner.
Santander Bank acquired two UK banks (Alliance & Leicester and Bradford & Bingley) where it had no presence earlier. This is a good example of a company's ability to make a quick decision to seize an opportunity. The acquired banks were struggling in the aftermath of the Lehman Brothers collapse, and Santander moved quickly to acquire them.
- Consistently deliver value, in alignment with the purpose/mission/vision and strategy of the enterprise.
Apple is a fine example of an enterprise which is known for delivering value in line with its vision and mission statements. The vision statement explicitly spells out values such as innovation and making great products, which are core to Apple's value propositions for its customers.
- Embrace digital technologies.
JetBlue, Domino's, and Walmart are examples of companies that are considered to be success stories of digital transformations [xvi]. These companies were able to quickly launch digital initiatives to improve the customer experience, thereby blurring the lines between technology and business.