Study: The Agile Performer Index | Page 9

09 practice. This also holds true in the opposite direction, for example, when scrum teams are introduced at the operational level without also preparing executives for their new role, or without considering geographical constraints that can make it difficult to set up crossfunctional teams. The agility paradigm must be instilled into every part of the company, in terms of both culture and structure. Everyone, whatever their role in the organization – be it in product development, accounting, sales or customer service – should regard themselves as part of a collective process pulling in the same direction and united by the shared values of an inspiring mission. In the turbulent and increasingly uncharted waters of the world economy, organizations have to find an approach in which change is not a one-off exception, but part of everyday routines. For this to happen, the organization’s basic setup has to be amenable to change. Operational activities, processes, products and in-company collaboration become dynamic applications that are able to adapt quickly and flexibly. Resources and budgets are allocated wherever they can deliver competitive advantage to the organization – which means constantly revisiting the strategy and reassessing the direction of the transformation journey. Rather than a one-off adjustment to new circumstances, agility requires continuous, overall transformation. || THE AGILE PERFORMER INDEX The Agile Performer Index demonstrates that agility and performance are clearly related. goetzpartners and the NEOMA Business School surveyed 285 executives from European companies. Respondents were asked to rate the extent to which their company possessed certain systems and processes. The 40-plus questions were aggregated into 14 equally-weighted agility factors, which were organized, again with equal weighting, into the four agility routines: Strategizing, Perceiving, Testing and Implementing. The authors used these routines to evaluate the agility of the company, and then investigated potential correlations with available data on company performance. 2) For the purpose of this survey, “success” was equated with financial performance – return on assets for manufacturing companies, and return on equity for financial service providers and insurance companies. The Agile Performer Index correlates agility and performance using agility routines and its underlying factors. Moreover, the survey provides detailed insights into how widespread agile methods are within the organization, highlighting which industries, types of business and regions are pioneers in terms of agile transformation. It is also possible to identify the sectors in which the advantage of agile approaches are recognized poorly or not at all. Interested users can quickly place their own organization within the index, as well as make comparisons and draw conclusions across various levels. 2) Performance data over the ten-year period between 2005 and 2014 was examined. Success, defined as sustained, above-average performance, was measured by the number of years the firm’s performance exceeded the industry median.