20 minutes is not a long time to introduce business agility, but it is enough time to get you inspired. I’m going to take this opportunity to share a little about what is possible—the potential growth of your organizations and the companies you work for, own, or are a part of. Whether your company has two employees or two hundred thousand, it doesn’t matter.
At its core, I’ll be sharing what we call business agility. However, I also want to emphasize that Agile and business agility are tools, and the intention behind these tools is to create a better business. That’s why the title of my talk is Better Than Yesterday. The goal is to create an organization that is more customer-centric, filled with empowered, engaged, and purpose-driven employees, and one that achieves its mission.
That brings us not only to the theme of this conference but also to the fundamental question: What is business agility?
What is Business Agility?
Business agility is a set of organizational capabilities, behaviors, and ways of working that afford your business the freedom and flexibility to achieve its purpose—no matter what the future brings.
Those last six words are some of the most powerful words we can say: no matter what the future brings. People often ask me when I think COVID will be over or what will emerge after this pandemic. The truth is, I don’t know. Nobody does. But the fact is, I don’t need to know. What matters is that we, as businesses and leaders, are prepared to respond—not just react—to whatever the future brings.
Another important part of the definition is the phrase: organizational capabilities, behaviors, and ways of working. If you are in software development, Agile methodologies, or product development, I encourage you to start thinking of what you do not as “Agile,” but as agility. Consider how these principles apply to your entire organization and the possibilities they unlock.
The Power of an Agile Organization
Imagine if your entire organization operated as a cohesive unit, fully aligned with the customer. How powerful would that be? There would be almost nothing you couldn’t achieve.
So, let’s break it down further. What are the key characteristics of an agile organization? I’ve spoken about this at previous conferences, but today, I want to highlight six fundamental characteristics that define true business agility.
Six Characteristics of an Agile Organization
1. Engaged and Aligned Workforce
The people in your organization are the heart of everything. Research consistently shows that employee engagement is one of the largest drivers of productivity. An engaged workforce is not only more productive but also happier. This is a win-win: leaders benefit from greater performance, and employees experience greater job satisfaction.
2. Catalytic Leadership
We need leaders who inspire. Leaders who create and communicate a vision. It doesn’t matter if your organization has 50 or 500,000 employees—if they aren’t all moving in the same direction, progress will be slow. A strong, unified vision is essential to business agility.
3. Empowering Management
While a manager is often a leader, not all leaders are managers. Management is a skill, a role, and a vital one at that. Studies show that management accounts for 70% of the variance in employee engagement. People are more likely to leave an organization due to poor management than for any other reason.
4. Unified Business Systems
Processes, tools, policies, and structures must enable the organization—not hinder it. A bad system will break a good person. You can hire the best managers, but if your systems are flawed, they will fail. These systems must work in harmony with the culture of agility.
5. Customer Obsession
Last year, I might have said "customer-centricity," but today, I say "customer obsession." The customer should be at the center of everything you do. Organizations that put customers first—even at the cost of short-term profits—experience greater long-term success.
6. A Culture of Respect, Inclusion, and Learning
A true agile culture fosters trust, inclusion, empowerment, and continuous learning. Organizations must critically evaluate whether their KPIs, incentives, and OKRs align with the culture they claim to promote. Too often, companies say they want agility but reward behaviors that discourage it.
Why Business Agility Matters
Some of you are here because you come from an Agile background, while others are business leaders focused on strategy, finance, and operations. No matter where you come from, the question remains the same: Why business agility?
It sounds good—who wouldn’t want an empowered workforce or happier customers? But the real question is: What is the quantifiable ROI? At the Business Agility Institute, we research the measurable benefits of organizational agility. Here are three of our key findings:
1. Increased Employee Engagement
Agile organizations experience higher employee engagement, which leads to increased productivity, lower turnover, and greater profitability.
2. Greater Market Success
Organizations that embrace business agility report higher revenue and improved customer KPIs. These are not anecdotal observations; they are measurable, data-backed outcomes.
3. Improved Customer Satisfaction
Customer satisfaction is directly correlated with business agility. Organizations that prioritize agility see a significant increase in customer loyalty and retention.
Business Agility Trends and COVID-19 Impact
Global business agility is on the rise. The most recent Business Agility Report showed a 9% increase in maturity worldwide, with a 21% increase in high-maturity organizations. Large firms (15,000+ employees) saw a 9% improvement in agility.
Interestingly, COVID-19 has accelerated agility adoption worldwide. Since March 2020, business agility has increased by 15% globally. However, North America saw a 10% decline—the only region to experience a drop. The reasons behind this are still being studied.
Key Drivers of Business Agility
Among organizations that increased their agility post-COVID, three factors stood out:
- Customer Obsession: Companies that prioritized customer needs performed better.
- Agility Experience: Organizations that had been on an agile journey for eight or more years saw the greatest success.
- HR Transformation: Companies that transformed HR practices—not just IT—achieved the highest agility gains.
Conclusion
Business agility is not just about software or Agile frameworks—it’s about building organizations that can thrive no matter what the future brings.
On that note, I’d like to thank everyone for attending today’s session. A special thank you to the team at Santander for hosting this incredible event.