Impact Partner Content: Absa / by Hwalani Mabaso, Provincial General Manager, WIMI Distribution, Absa RBB
Today we operate in a world that is volatile, uncertain, complex and ambiguous (VUCA), therefore personal and business agility is increasingly important. Business agility refers to a business owner’s ability to adapt and thrive in a changing environment that demands constant adaptation.
Agility is a source of competitive advantage for any business that can respond swiftly to change. Businesses can be agile in various ways, such as having an open and receptive organizational culture, applying the right digital solutions and cleverly using and analysing insights and data.
Businesses need to be agile in terms of their structures, processes and people and by focusing on the following five areas, you can ensure greater adaptability and agility. I call them the “Five R’s to achieving business agility”:
Refocus on your business’ core competencies. These are the things that your business does best, that your customers most value and that, ideally, your competitors can't duplicate easily. It is important that this focus is part of the organizational culture and for it to start from the top. Leaders must set the tone for an agile business and clarity on core strengths is key. For Amazon, it is customer-centricity through the use of data insights; for Apple, it is cool design and intuitive functionality; for Walmart, it is low cost.
Relevance in terms of how your company stands out is also important. You need to solve for specific customer needs to connect and be relevant. Only then will they shift behaviour to take up your products and services. And if these needs can be solved more conveniently for the customer via digital channels, your relevance will be strengthened. Product needs can include things like functionality, convenience, design, performance or efficiency. Service needs can include things like accessibility, turnaround or quality.
Reimagine your business through innovation and creativity. If you don’t innovate, your business will eventually die. Be creative to solve practical problems, be it in product, service or distribution. New ways to present your offering could be just what is required, whether it be in a brand revamp or simply introducing new packaging and presentation.
Recognize the trends and changes within your environment. This requires being close to what is going on externally, both locally and internationally. Whilst every market is unique, the mega-trends that cut across markets can be tracked and smart businesses are quick to adapt to grab the opportunities that these bring, even though they may look bleak. For example, fie mega-trends currently across the globe are (1) a shift in global economic power, (2) demographic changes, (3) urbanisation, (4) rise of technology and (5) climate change and resource scarcity. If your business does not have a clear plan to adapt to these mega-trends, it is unlikely to survive long-term.
Relationships and collaboration are key for any business. Seek partnerships and find new streams of income. Today, it’s all about understanding your business’ eco-system and linking up with key value players in it to ensure the flows of business take place without obstacles. And if you’re smart, you will partner with a Fintech to fundamentally disrupt how your market operates, thereby achieving competitive advantage and differentiation, whilst securing your position.
So, take some time to reflect on these points. Map your business’ agility in terms of the 5 R’s and score yourself out of ten on each aspect to see where you should be focusing and investing time and resources. Business Agility is not optional in our VUCA world; it is fundamental to ensure your business succeeds and thrives.
