Operational Agility

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Description of Operational Agility. Explanation.

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Definition Operational Agility. Description.

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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