What is the importance of an agile business strategy with a view to being stable? Yes, agility for stability. How can a business impart true agility to rapidly adapt and respond in a fast-changing VUCA environment?
After the two wonderful presentations by Bala and Arvind, I am here on a slightly more serious note to talk about strategy and its relevance to agility. Since I am likely the last speaker before lunch, I need to be mindful of the clock and be agile on stage as well.
Since this is a topic on business agility, I cannot avoid discussing agility. However, I am not an expert on agility—many others before me have spoken on it, and you will hear more over the next two days. Instead, I want to focus on the idea that agility gives us stability. This might sound like an oxymoron—how can agility create stability? But my pitch today is that if you want to achieve long-term stability from a business strategy perspective, you need to be short-term agile in your tactical execution.
Is Business Strategy Dead?
Since we are in an agile world, should we ask: Is business strategy dead? The answer is no. We should not start writing an epitaph for business strategy just yet. However, I propose a different interpretation of RIP—Resurrection in Progress. In today’s agile world, strategy is not dead, but its model, understanding, and execution need to evolve.
Strategy, as Eclavia mentioned in his opening remarks, is one of the most used and abused words in business. Everyone loves talking about strategy, but very few truly understand what it means. As Rajesh pointed out, keeping things simple is key—so let’s move beyond complex definitions and get to the essence of strategic agility.
Strategic Agility vs. Agile Strategy
Rather than using the term "agile strategy," which could be an oxymoron, I prefer "strategic agility." The distinction is important. We can have agile business, agile marketing, agile HR, or agile finance, but when it comes to strategy, the right term is strategic agility.
Being agile is different from doing agile. Let me give a personal example: I may not look like it, but I ran a half-marathon five days ago. That’s an example of being agile, but it’s not enough. Think about sprinting versus long-distance running—Usain Bolt holds the 100-meter world record at 9.58 seconds, but could he run a marathon? Unlikely. Running a marathon at sprint speed is impossible. This illustrates the difference between agility and strategic agility—strategy remains a long-term game, while agility is about tactical flexibility.
The Journey from A to B
Business strategy is about understanding where you are today (Point A) and deciding where you want to be (Point B) in the future—perhaps in three years, given today’s fast-changing world. Agility comes into play in how you get from A to B. There are infinite paths, and strategic agility is about innovating, experimenting, and adjusting those paths while maintaining a clear long-term vision.
Agility does not mean shifting your goalpost every month. The overall direction remains stable, but the means to achieve it may evolve. Strategic agility allows for learning, relearning, and unlearning along the way.
Building Blocks of Strategic Agility
How can businesses build strategic agility? I propose four key building blocks:
1. Financial Strategy
Every business exists to make money. The form it takes may vary—top-line revenue, bottom-line profit, market share, or valuation—but financial health is at the core. Strategic agility means adapting financial strategies dynamically. Revenue and profit drivers may shift, risks may evolve, and businesses need to respond quickly without losing sight of long-term financial goals.
2. Customer Value Proposition
Understanding your customers is crucial. Why should they buy from you? Is it price, quality, availability, innovation, distribution reach? Cigarette brands, for instance, ensure the widest distribution so their product is always available. The key is aligning your strategy with actual customer needs, not just theoretical models. The closer you are to your customer’s reality, the more agile your strategy will be.
3. Agile Business Processes
Processes must support strategy, not the other way around. Many businesses mistakenly impose rigid processes that hinder agility. Let’s take the example of U Telecom, a wireless internet provider. Initially, setting up a new internet connection took five days. After re-engineering their processes using agile principles, they reduced it to an average of 50 minutes. They achieved this by introducing an Uber-style app that allowed customers to see the nearest available sales or service representatives in real-time.
4. People and Culture
Culture and leadership play a huge role in agility. Leadership should be situational—adapting styles based on the context rather than following a rigid command-and-control model. Indo Schöttle Auto Products, a precision automotive company, tackled high attrition by introducing a "RISE" program, a loyalty-based competency system similar to airline miles. Employees could move from Blue to Silver to Gold to Platinum, earning additional benefits, which significantly reduced attrition.
Pause, Ponder, Predict, Prepare
Winston Churchill once said that having a strategy is great, but it’s also essential to evaluate whether it is delivering results. In today’s agile world, businesses must regularly pause, ponder, predict, and prepare. Agility is not about blindly reacting—it’s about proactively adapting with purpose.
Final Thought
Always ask yourself: When was the last time you did something for the first time? That’s agility.
Thank you. I’ll be happy to take any questions.