Liquid I.V., a wellness company based in Los Angeles, is led by CEO Mike Keech. The company offers science-backed electrolyte drink mixes that are available nationwide. In today’s rapidly changing markets and challenging environment, organizational agility is more critical than ever. Companies that are agile, whether naturally or through a transformation, generally outperform those that are inflexible.
Research from a 2020 McKinsey survey of 2,190 companies revealed that only 10% were successfully transforming into more agile and resilient organizations. However, the benefits of agility are significant and worth pursuing. Companies that become agile typically see gains in efficiency, customer satisfaction, and employee engagement of around 30%, while also becoming five to ten times faster and boosting innovation.
Agile organizations also have a competitive advantage, with three times the chance of becoming top-quartile performers as compared to their peers. Conversely, companies lacking agility may face existential consequences, with more resilient companies generating total shareholder returns that are 50% higher than their less agile counterparts.
To create a structure for speed and agility within a company, it is essential to embed an agile mindset throughout the organization. This involves building flexibility into the operating model and empowering employees to make quick decisions and changes. Priority should be given to speed and flexibility over long-term planning, and the focus should be on value creation to clarify the purpose of agility.
Agile leadership and team structures are crucial to fostering an agile culture within an organization. This involves aligning the senior leadership team with agile goals and empowering employees to act quickly and learn from mistakes. Building agile budgets can also enhance performance, particularly in marketing departments, by allowing funds to be directed towards high-ROI opportunities as they arise.
Finally, it is important to recognize that the illusion of control often hinders agility. Embracing agility provides more control by offering escape routes in challenging times and allowing for quick pursuit of new opportunities. Whether a company is beginning an agile transformation, well underway, or agile-born, regularly assessing progress and ensuring that agility becomes part of the organization’s DNA is crucial for long-term success.
