Organisations undergoing digital transformation would know that “business agility” is something easier said than done.
Defined as the ability of an organisation to rapidly adapt to changes, business agility has no specific methodology or general framework. “However, that doesn’t mean agility is something out of reach – in fact, it is something that we do every day,” said Sharon Lau, Principal Lecturer & Consultant, Digital Strategy & Leadership Practice, NUS-ISS.
Applying a simple analogy to demonstrate agility, Sharon said, “Every morning, I drive from my home to office using the same route. I know from experience that this route is the shortest and best option for me. However, in the event that I learn there is a traffic jam along my usual driving route on a particular day, I will swiftly decide to switch to an alternative path.”
This everyday situation, she explained, is an example of our natural agile capability at work. It enables us to sense, respond and adapt to circumstances to achieve the best possible outcomes in changing situations. Similarly, organisations need to be nimble and adopt an open-minded approach to solving problems, in order to survive, adapt and thrive in the age of digital disruptions.
“The option for organisations today is not ‘whether’ they want to become agile but ‘when and how’ to become agile,” Sharon said. “Business agility is what would enable companies to avoid becoming obsolete in their market.”
Agility and stability are not mutually exclusive
The paradox, however, is that a truly agile organisation is one that is both stable and dynamic. A 2015 analysis by McKinsey’s Organisational Health Index showed that companies with both speed and stability have a 70 percent chance of being ranked in the top quartile in terms of organisational health.
The smartphone serves as a useful illustration for this concept. The physical device, comprising the hardware and the operating system, acts as a stable platform for a myriad of mobile applications to operate on. New apps can be added, modified and deleted over time as the smartphone user’s needs evolve. “In the same way, an agile organisation needs to be able to embrace changes while maintaining a customer-centric focus,” Sharon explained.
However, it is important to note that digital transformation is more than just adopting agile practices with new technological tools. For legacy companies to become agile, a radical shift in mindset and culture is required. Business agility needs to be addressed organisation-wide and not limited to IT, although IT serves as the key enabler of digital transformation. “Essentially, it’s about the people,” emphasised Sharon. “Business agility changes how the employees think, work and interact with people at every level of the organisation, from the C-suite to the rank-and-file. And precisely because the effects and applications of business agility are so wide-reaching, agile strategies need to be driven by active leadership from the top management level.”
The role of management in business agility
For companies looking to embark on an agile digital transformation strategy, they need to first review the organisation’s vision. “An important question they need to ask themselves, is whether the organisation’s vision is still relevant in today’s digital world,” said Sharon.
DBS is one such success story. Its CEO Piyush Gupta heeded the advice of Bill Gates, who famously said, “People don’t need banks, they need banking.” Recognising that the digital revolution is fundamentally redefining the banking sector, DBS decided that they need to stop acting like a bank, and act more like a tech company instead. It re-designed its services with a focus on being digital at its core, rendering banking ‘invisible’ so that customers can spend as little time as possible doing banking-related errands. “DBS adopted a ‘Live More, Bank Less’ ethos which acted as a North Star, driving a strong, inspiring and meaningful vision for the organisation in its digital transformation roadmap,” Sharon added.
Gupta’s prominent leadership was also a key component in the journey. “Sometimes just getting the ‘buy-in’ is not enough. The CEO, C-suites executives and top management team have to take the lead in embracing and pushing for agility in their organisation.”
In other words, the mindset of business agility has to be embedded in the management fabric. “That way, clear missions can be drawn up to guide the organisation to function in an agile manner and navigate the uncertain waters of digital disruption,” Sharon said in conclusion.
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