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03
AGILITY AS A COMPETITIVE FACTOR
Continuing with established , orthodox structures is no way to head into an uncertain future that promises fast-paced bursts of innovation and disruptive developments . Change is putting every industry – from media , telecommunications and financial services to energy and engineering – under enormous pressure to succeed , creating an imperative to be more agile across every design dimension .
Our research suggests that agile organizations are significantly more successful than their competitors over the long term . A comparison of agility levels with financial performance reveals that the most agile companies are 2.7 times more successful than the average of non-agile companies .
To obtain these insights , the companies surveyed were organized by agility score 3 ) into quartiles . Top quartile firms posted above-average performance seven out of the last 10 years ( 69 %); those in the lowest quartile were able to outperform their competition only 26 % of the time . ||
The Agile Performer Index confirms :
Agility is key to being successful in a dynamic , digitally transformed competitive environment .
AGILITY AND COMPANY PERFORMANCE
PERFORMANCE |
0.8
0.7
0.6
0.5
0.4
0.3
0.2
|
26 % |
~ 2.7x
36 %
|
44 % |
69 % |
n = 129 |
|
0.1 |
|
|
|
|
|
X % |
Performance : percentage of years profitability was above the industry median |
AGILITY QUARTILE |
3 ) The agility score is calculated based on a survey with over 40 questions , each with a possible score from 1 to 5 . The answers are aggregated to the 14 agility factors with an equal weight for each factor , which in turn are equally aggregated to the 4 agility routines maintaining the possible score from 1 to 5 for each routine . The sum of the 4 routines ’ score is multiplied by 5 leading to a total score ranging from 20 to 100 . The potential minimum score of 20 is indexed to 0 , scores higher than 20 continuously increase from 0 to 100 .