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8.1 Organisational agility and the art of rapid change

The company that can identify what technologies are needed, introduce them quickly, and commercialize them will succeed. Hiroshi Okuda, President, Toyota Motor Corporation ( Business Week , June 15, 1998)

Organisations can use their capacity to change and respond to customers as a competitive advantage. This has been broadly categorised and studied as organisational agility.

Agility cannot be separated into internal and external change factors. Agility must be conceptualised as encompassing both internal and external forces for change. Organisational agility rests on the capacity to rapidly realign internal processes and systems to accommodate external (environmental) changes. The need for organisations to develop agility will depend upon the level of change in the environment and the speed with which it takes place. Agility or responsiveness is the constant process of realigning internal systems and processes to meet environmental turbulence. The ability to do this at speed requires the capacity to not only change, but to do so while maintaining performance targets and customer satisfaction.

However, the adoption of systems and practices reflecting the need for organisational responsiveness has itself been slow:

Unfortunately, most organizations, and their management, control and strategic planning systems seem relevant to the passing era which rewarded efficiency-driven optimization and prediction of future based on the past trends. As the traditional paradigms of concepts such as organizations, industry, and product / service definitions become increasingly blurred, one would see new models of business that defy traditional boundaries of organization structure, industry structure and product / service definitions. Characteristics such as innovation and creativity will be at a premium. There will be increasing realization that sustainable organizational competence depends upon the organization's capacity for creating new knowledge through an ongoing and continuous process of learning and unlearning.
Dr. Yogesh Malhotra, Chairman of @Brint.com L.L.C. (October 1997)

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