Cultivating agility is more than just deploying agile methodologies – it’s about nurturing a mindset that permeates every aspect of the business. Here, PM-Partners Agility Practice Lead/ Agile Principal Consultant Matt Sharpe unravels the distinctions between the two and outlines the role and steps senior leaders should take to drive true agility within their organisations.

Agile has been a buzzword in the business world for years. The concept of agile practices originated in software development, where it was a response to the limitations of traditional ‘waterfall’ project management. However, over time, the agile approach has expanded beyond software development to become a way of working and thinking about how to run the whole business using agile principles. This broader concept is known as ‘business agility’.

What is business agility?

At its core, business agility refers to an organisation’s ability to quickly respond to evolving customer needs, market trends, and operational disruptions in productive and cost-effective ways. In the face of mounting uncertainties, an increasingly competitive market and rapid technological advancements, business agility has become the linchpin for organisational strength and resilience.

According to a study by McKinsey, companies displaying high agility witnessed a 20 to 30 per cent increase in profitability, achieved higher levels of employee engagement and customer satisfaction, and improved operational-performance metrics, including time to market, by 30 to 50 per cent. Today’s business landscape no longer rewards just the fittest but the fastest – those with the speed to quickly evolve, adapt and innovate.

The agility-agile conundrum: similarities and differences 

Contrary to some opinion, ‘Agile’ and ‘agility’ are not the same thing. Agile is an umbrella term for a set of methodologies, frameworks and practices such as Scrum, SAFe^® and Kanban, which emphasises collaboration, iterative development, and rapid delivery of working software.

Business agility, on the other hand, is an organisational state of being, a mindset, and a model for how the whole organisation works together with a focus on customer centricity and value. It is broader in scope, encapsulating not only project delivery but also strategy, leadership, culture, and processes across the whole organisation including those areas not typically involved in ‘Agile’ frameworks such as finance, HR, marketing, risk and compliance and other supporting functions.

Agile can be a good starting point for developing business agility practices, but it is not a silver bullet and certainly not the sole panacea. It’s a means to the end, with the ultimate outcome being a nimble, responsive, and more resilient organisation.

Leading with agility: the leaders’ mandate

To start cultivating agility, organisations must work to develop an open mindset and a culture of flexibility, experimentation, and continuous improvement, and encourage, reward and empower their employees to make decisions and take risks.

It’s here that leaders have a pivotal role to play – their attitudes and decisions significantly influence the organisational culture, impacting its capacity and capability to be agile. It’s about changing mindsets, challenging entrenched behaviours and beliefs and fostering a safe environment of trust, openness and innovation.

This requires senior leaders to embody ‘inner agility’, encompassing qualities such as resilience, adaptability, and learning agility. It means being comfortable with ambiguity and leading through influence rather than control, and being willing and able to learn from experience, and subsequently apply that learning to perform successfully under new or first-time conditions. Research shows that companies with agile leaders have 25 per cent higher profit margins compared to their peers, while individuals with high learning agility are also promoted twice as fast as individuals with low learning agility.

Navigating challenges to business agility

Though ultimately rewarding, the journey towards agility is fraught with challenges. The 15^th State of Agile report, for instance, cited no few than ten barriers to agile adoption. Resistance to change is one of the most significant impediments, along with inconsistencies in processes and practices, which were both called out by 46 per cent of respondents.

Another major obstacle is entrenched siloed mindsets, restricting cross-functional collaboration and innovation. Fear of failure, too, can stifle agility by discouraging experimentation and risk-taking. Lastly, a lingering attachment to traditional command-and-control leadership styles can hamper the development of an empowering, inclusive culture integral to agility.

Charting the path to success: 7 actionable steps for senior leaders

There are several ways senior leaders can overcome these challenges and help nurture a culture of agility in their organisations. Here are some steps to consider:

1. Emphasise the importance of agility: communicate the benefits of business agility and how it can help the organisation better meet the needs of customers and stakeholders in today’s fast-paced business environment.
2. Encourage experimentation: this includes providing resources and support such as funding for pilot projects or new tech and tools, and creating a safe space where employees can learn from their failures.
3. Empower teams: foster a culture of autonomy based on trust and accountability, allowing teams to self-organisation, make decisions and take calculated risks. This lifts engagement, ownership and speed of execution.
4. Remove roadblocks to agility: this includes breaking down organisational silos, simplifying processes, and addressing barriers that prevent teams from working effectively in an agile manner.
5. Leverage agile practices: agile methodologies and practices can help to build momentum towards business agility, improving collaboration, transparency and adaptability and showcasing the benefits of a more flexible approach to work.
6. Create a learning culture: promote a growth mindset and invest in regular training, workshops, and mentoring programs to help your teams build the skills and knowledge they need to work confidently in agile.
7. Measure progress and celebrate success: Set goals and metrics to track progress and share results, recognising and rewarding teams that demonstrate agility and innovation.

These specific actions can all help to foster a more agile and responsive business. But remember, the journey to agility is just that – a journey. Patience, persistence, and an iterative approach, learning and adjusting along the way are paramount to success. True business agility is committing to ongoing relentless and continuous improvement, and this journey does not have an end point.

Ultimately, leaders should work towards developing a comprehensive approach to business agility that incorporates both agile practices and a broader cultural shift and matures with practice and skill. In this way, you can help to create and sustain an organisation that’s better able to adapt and thrive in a rapidly changing environment.

If you’re seeking more insights or require support in instilling agility within your organisation and teams, PM-Partners is here to help with advisory and relevant training, including our one-day, interactive Big Room – Business Agility course for up to 60 attendees. Get in touch online or call the team on 1300 70 13 14.

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