Established businesses often struggle to become more dynamic—but it’s not impossible. In these interviews, the leaders of organization design at McKinsey, principals Wouter Aghina and Aaron De Smet, explain what agility means and how organizations can evolve to thrive in an environment that demands constant change. Aghina was interviewed by Monica Murarka, a senior expert in organization design at McKinsey, while De Smet was interviewed by Luke Collins, an editor with McKinsey Publishing. An extended and edited transcript of Aghina’s and De Smet’s comments follows.

Read more: http://www.mckinsey.com/business-functions/organization/our-insights/the-keys-to-organizational-agility

Categorizing the problems and growth patterns of small businesses in a systematic way that is useful seems at first glance a hopeless task. Small businesses vary widely in size and capacity for growth. They are characterized by independence of action, differing organizational structures, and varied management styles.

Yet on closer scrutiny, it becomes apparent that they experience common problems arising at similar stages in their development. These points of similarity can be organized into a framework that increases our understanding of the nature, characteristics, and problems of businesses ranging from a corner dry cleaning establishment with two or three minimum-wage employees to a $20-million-a-year computer software company experiencing a 40% annual rate of growth.

For owners and managers of small businesses, such an understanding can aid in assessing current challenges and support business growth.

Read more: https://hbr.org/1983/05/the-five-stages-of-small-business-growth

It seems that everyone these days is looking for a disruptive business model. But a business model is only one part of the equation. Equally important is the behind the business model, as well as a measurement model for both. It’s the combination of mental, business, and measurement models that allows real transformation to occur... read more: https://hbr.org/2017/05/to-change-your-strategy-first-change-how-you-think

Across industries and sectors, the track record for organizational change is bleak. Research finds that anywhere from 50%–75% of change efforts fail. And for those that do succeed, many don’t achieve the goals of the original vision. Why is change so hard?

Usually, figuring out the right answer is not the challenge, whether it’s a new strategy, more-efficient processes or systems, or a new structure that better meets the needs of a growing company. The biggest hurdle to effective organizational change is people. A core part of your job as a leader is to help others overcome the inherent, very human bias toward maintaining the status quo.

Read more: https://hbr.org/2017/05/overcome-resistance-to-change-with-two-conversations?referral=03758&cm_vc=rr_item_page.top_right

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Business agility refers to distinct qualities that allow organisations to respond rapidly to changes in the internal and external environment without losing momentum or vision. Adaptability, flexibility and balance are three qualities essential to long-term business agility.

Business agility is important for firms looking to survive long-term and who work in quick-paced industries. Innovation is often the key to maintaining long-term business agility. Companies that don’t innovate and rely on ‘proven’ methods of doing things often find themselves falling behind the competition because they can’t adapt quickly enough to shifts in the environment.

From an HR perspective, agility is about ensuring the human capital in the organisation have the skills and abilities to respond quickly to new developments and the infrastructure and processes to mobilise this human capital into action as efficiently as possible.

Companies may display business agility at certain times, in which case the agility is a form of crisis response, or the company may have business agility built into its structure.

Agile organisations can differ from traditional bureaucratic organisations in many ways, such as in fluidity of role definitions and a lack of long-term competitive advantage – generally agile organisations will pursue a program of short-term competitive advantages, which are then neutralised, before moving onto the next.

Read more: http://www.hrzone.com/hr-glossary/what-is-business-agility

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