Many of our blog posts have already dealt with agile methods and their success in business. For this reason, we want to look today at research on the subject with a study by the Boston Consulting Group (BCG), which surveyed 1,100 managers and employees representing 10 industries and more than 40 countries.
Agile companies grow faster
One of the particularly fascinating findings of this study is that agile companies achieve margins that are up to five times higher than those of the competition, and they also grow faster. More than 40% of the companies surveyed showed above-average results, while only 24% performed worse than average. Inflexible organisations had the slowest growth. Our customers also confirm these findings: the agile transformation at SBB and the agile change at a Swiss media group led to improved and more integrated cooperation, as well as a faster and more effective implementation of services. This in turn has a positive effect on the growth of a company.
Embedding agility is a challenge
Although 74% of companies that took part in the study considered agility to be important, only 54% actually described themselves as agile. Implementing agility is often a long process because, to be successful, it is important that it is strongly anchored throughout the entire organisation. The study cites some other organisational factors that are especially relevant in ensuring a company’s financial success. These include flat hierarchies, proximity to local markets, a focus on employees and a collaborative approach.
We see it every day in our work: a corporate culture that is based on initiative, self-determination and teamwork improves employee satisfaction and therefore also increases their commitment. And that is precisely what makes a company successful.