Operational Agility

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What is Operational Agility? Meaning.

Operational Agility is a company's ability or capacity to find and seize opportunities to improve operations and processes, within a focused business model.

Examples of the above opportunities are:

• Introduction of new products or services,
• Cost reductions,
• Quality improvements,
• Refinements to logistic processes

Specific organizational capabilities to be operationally agile include (Donald Sull in HBR, February 2009):

• Accurate and detailed real-time market data
• Focused corporate priorities
• Clear performance goals
• Control and reward mechanisms

Besides those mentioned by Donald Sull, additional organizational competences to achieve a high degree of operational agility are:

• Flexible HR arrangements (flex working, flex benefits)
• Flexible IT systems, Telecom systems, software development (allowing to make changes relatively easy)
• Agile project management / change management approaches

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Compare with: Portfolio Agility  |  Strategic Agility  |  Organizational Agility  |  Organizational Absorption  |  Agile Absorption  |  Crisis Management  |  First-mover Advantage  |  Just in Time

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