Many companies have problems with business planning. It’s not that they don’t know where to begin, it’s that six months later down the road, their plan is forgotten and they’ve already reverted back to old habits. Agile business management allows companies to improve their communication and organization and thus their business planning. Agile businesses don’t struggle with business planning because they’ve already overcome many of the problems that other companies still struggle with.
A recent Harvard Business Review article discusses the difference between a business with a successful plan and a business with an unsuccessful plan. The article creates a hypothetical scenario and later asserts the qualities of an organized, successful business, as stated below:
- Wrestle with the nuances of the strategy
- Diagnose how well the organization’s activities are currently aligned with it
- Cease any strategically unimportant activities
- Identify capabilities vital to the strategy
- Establish decision rights
- Begin modeling behaviors that support the strategy
- Gauge performance and risks with leading and lagging metrics that reflect the company’s priorities.
These values describe agile businesses and how they deal with business strategy. Businesses with agile management are able to sit down and craft a business plan that will lead to success. They are not concerned with trivialities, but rather with the main focus of the company.
Then, when other businesses start to fall apart and lose sight of their strategy, agile businesses prevail. It’s not necessarily because the other company’s business plan was flawed, but rather that they likely distracted by unimportant activities. Business with agile business management can quickly identify and filter out the unimportant activities so that they remain focused on their overall strategy.
In order to create an agile business strategy, identify the overall goals of your business and predict obstacles that will occur along the way. The most important part of strategy implementation is organizational alignment and communication. This aligns employees and brings the entire company together working towards a unified goal.