Tech industry leaders know that they must evolve to survive. Whether a startup working to become profitable or an established company striving to keep up with rapidly changing consumer trends, organizational agility isn’t a nice-to-have anymore, it’s becoming a requirement.
Our global survey of 998 executives, “Organizational Agility at Scale: The Key to Driving Digital Growth,” shows the majority recognize that organizational agility is key if they want to drive long-term digital growth. And, perhaps more tellingly, we found that there is a strong relationship between digital revenue growth and organizational agility.
We found that technology comes in fourth among the sectors predicting the highest digital revenue three years from now (the others, in order, are media, hospitality, and higher education). But, there is still some ground to make up in the strategic approach adopted for growth through digital.
We identified five key behaviors that are crucial to organizational agility, and then grouped survey respondents based on their level of adoption of these behaviors. “Leaders” (15% of respondents) achieved high performance across all five of the behaviors, while “aspirers” (30% of respondents) achieved high performance in four of them, and “laggards” (55%) achieved three or fewer of the behaviors.
Here are the five behaviors that are necessary for organizational agility:
Our survey broke down organizational agility by industry. In the technology industry, 13% were identified as leaders, a rather surprising 58% were identified as laggards, and 29% were aspirers.
Here are a few key insights from survey respondents from technology companies:
Though many technology companies are putting the right pieces in place, it’s not always easy to work toward the five behaviors that make organizational agility, at scale, a reality.
The changing world of work is making it more and more important to plan in real-time. Technology companies want to move toward real-time, integrated planning, but their most common barriers to accomplishing this are inflexible legacy technologies, bureaucratic organizational cultures, and a lack of relevant employee skills.
They also strive to update business processes to respond to the changing needs of their business, but they struggle against similar barriers: bureaucracy, inflexible legacy technologies, and an unwillingness to move away from that legacy tech.
Two keys for technology companies to achieve true organizational agility are setting the right KPIs, and ensuring that the right data is accessible to relevant stakeholders.
Fifty-six percent of technology executives said their company’s KPIs don’t reflect the current digital era. That reinforces the idea that a key starting point in the journey to organizational agility is making sure you’re working toward and measuring the right things. When you start in the right place, you start in the right direction toward leading in the digital era.
The second key to success in organizational agility is ensuring the right people have access to the data they need. Tech executives shared that when it comes to data, only 46% have access to all the relevant data they need. Over half said their data is often siloed and outdated. And only 18% of employees had access to the data they need to respond to customers.
To make real progress toward the benefits of organizational agility, technology companies should focus on setting the right goals and ensuring the right stakeholders have access to the data they need.
Get an overview of “Organizational Agility at Scale: The Key to Driving Digital Growth" findings or download the full report.