Can organizational agility boost performance?

In addition to the above things, agility also increases employee engagement and trains them on how to make quick decisions. All these things contribute to better overall organization performance. Organizational agility is all about how an organization reacts to change. In addition, the business world is highly dynamic and changes happen rapidly. Performance is impacted when any kind of change takes place, but an agile organization can handle that change in the best possible way. Agile organizations are fast, efficient, and productive. Agility is not just a buzzword, when implemented effectively, it can have a substantial positive impact on an organization's performance. Companies who are ignoring the need for agility could face challenges which can cost them much more than adopting an agile approach.

Does change in the market or within the organization affect its performance? If yes, then how can companies cope with change? The answer is adopting agile methods. Read more about organizational agility and how it impacts performance. 

What is organizational agility? 

Organizational agility is an organization's ability to adapt, renew, and change in response to the changes in the market. Improved agility means speed in delivery and enhanced responsiveness towards the changes in the environment. Agility doesn't mean instability. An agile organization needs a stable foundation of things that don’t change to anchor the things that are constantly changing. 

How does it impact an organization’s performance? 

Any company that wants to succeed in today’s rapidly changing business world needs agility. Applying the method of agility in an organization means converting the company into a collection of high-performing teams. 

Some agility factors that improve performance are: 

  1. Problem-solving skills: Agility requires companies to maintain teams that have high-quality problem-solving skills so that the organization can deal with change in a better way. The organization can cope with complexity when it has agile teams. The complex situations are solved at team levels and the organization is not affected. Agile organizations have more capability to cope with change as compared to non-agile organizations. 
  1. Responsiveness ability: Being agile means you are constantly tracking the change in the business environment around you and adapting to it to deliver the best results. Agile organizations take advantage of opportunities and handle lows with greater responsiveness. You can recognize potential risks earlier than non-agile organizations and this gives a direct impact on organizational performance.
  1. Learning speed: An agile cycle requires a team to reflect on their performance ‌frequently. This results in an increase in learning speed, as employees know where they have to improve from time to time rather than waiting for monthly performance reviews. Agile methods say that performance must be tracked in less time intervals so that improvement can be done alongside. 
  1. Implementation speed: Agility improves implementation speed as it makes teams act quickly to adapt quickly to the changes in the market. Implementation speed is increased the same way learning speed increases by reviewing and taking action in small time intervals. 

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