16 Jun An agile organisation is a future-proof organisation
An agile organisation is a future-proof organisation
16 June, 2022
It seems that we have now put the covid pandemic behind us. Society is opening up again. Life appears to be getting back to ‘normal’. And that hopefully applies to your business as well – continuing where you left off. Or does it? Because if the crisis has taught us anything, it is that only agile organisations can be future-proof.
Top 4 management priorities
The covid crisis made it even more abundantly clear how important agility is. New forms of collaboration emerged rapidly. The pandemic acted as a catalyst for a number of IT initiatives – how often did you meet via Teams or Zoom before the crisis? Above all else, this highlights how important strategic and financial agility is for companies. The Berenschot Strategy Trends survey in 2020 underscores this point. Among the top 4 management priorities, we can find digitalisation (39%) and making the organisation agile (34%) in first and second place. These are followed by operational excellence (32%) and process optimisation (29%). In short, agility is a hot topic in boardrooms. And that is exactly what it should be today.
Plenty of challenges ahead
The major challenge is therefore: how do you maintain an agile organisation now that the crisis is over? After all, the sense of urgency feels far behind us. But is that actually the case? The aftermath of the covid pandemic is still rumbling. Just over 2,000 kilometres away from the Netherlands, a war is raging that is also affecting us in many ways. A new generation is emerging: Generation Z or ‘the zoomers’. And the climate is demanding changes in every conceivable way. In short, the covid crisis may appear to be over, but the challenges facing society remain. There are more than enough reasons to make and keep your organisation agile.
Not only financial targets
The key is to be able to respond quickly to market opportunities and threats. That also places additional pressure on your finance team. They will have to innovate beyond static budget cycles and focus on detailed data and operational plans that directly impact financial performance. Agile organisations do not only set financial targets. They constantly monitor performance and develop processes to keep their operating assumptions current. After all, one of the hallmarks of agility is the short-cycle strategy. Traditional organisations work within a strategic plan over a horizon of three to five years. For them, adapting to the rapid developments mentioned poses a huge challenge. Essentially, the strategy is already established in plans, programmes and budgets. Just try to stray from that…
From strategy to tactics
Agile organisations look at strategy in a completely different way. Not in multi-year plans, but in missions and visions that are calibrated periodically and adjusted as needed. But that only works if everyone in the organisation is aware of the mission and vision. And if your people are actually able to contribute. Nowadays, a flexible business model and the ability to experiment are an integral part of modern organisational strategy. And by extension, also of the IT strategy. All well and good, you may think. But how do I make my company agile? How do I translate the strategy for my company into tactics for the future? And more importantly – how do I involve my people in this transition?
Ensuring an agile organisation that is future-proof
These are questions that we will explore in more depth in future blogs. But maybe it already has you thinking? For answers, please feel free to get in touch with your usual contact person at Joanknecht. Or you can contact those listed below with your questions.
Our Integrated Finance specialist Quinten Kolvenbach, for instance, can tell you everything there is to know about process optimisation and how IT can help you gain quick insight. Or advisor of accountancy, Els Joosen can help you gain more insight into your organisation, where the focus is on your (business) objectives, your information needs and automation of the financial process. These are all essential elements if you want to make your organisation agile and future-proof.