Business
3 Reasons Agility is Imperative to Organizational Growth in 2022 and Beyond
Global Banking & Finance Review®
Company
Agility is essential in an uncertain world, and if the COVID-19 pandemic has taught us anything, it’s that the world as we know it is decidedly uncertain.
Agility is essential in an uncertain world, and if the COVID-19 pandemic has taught us anything, it’s that the world as we know it is decidedly uncertain.
Since the novel coronavirus began spreading across the planet in early 2020, the global economy has entered a pronounced slowdown. Recently, the World Bank’s Global Economic Prospects report suggested that global growth will decelerate markedly to a mere 4.1 percent in 2022 and 3.2 percent in 2023.
U.S. businesses are feeling the pinch. In the Census Bureau’s Small Business Pulse Survey, nearly 68 percent of the companies responding in early January 2022 reported that their businesses had experienced a moderate to large negative effect due to the pandemic. Research by Euler Hermes, a trade credit insurer, suggests that business insolvencies are set to rise 15 percent year-over-year in 2022.
But not all hope is lost. Some businesses have actually thrived during the last two chaotic years, and they all have one thing in common: organizational agility. These agile organizations were prepared to react to the challenges and opportunities that came their way. They were able to adapt to the changes demanded by employees, consumers, and the market and succeed while their competition faltered.
In April 2021, 4 million Americans quit their jobs. It was a record number until September 2021 topped it with 4.4 million quits. Then November followed suit with 4.5 million employees separating from their employers. And it’s a trend that’s showing no signs of slowing.
This ‘Great Resignation’ has many causes. The results of one survey found that low salaries and limited career opportunities were top reasons for workers leaving their jobs. Another suggested that burnout and lack of flexibility were among the biggest drivers of separations.
Amanda Berry of Simpplr, a modern intranet solution that unites divided workforces explains, “In 2022, employee empathy will be more important than ever. It is the pathway to building connections between people. These connections foster a strong culture and lead employees to be more invested because they feel heard and supported by leaders, and are ultimately more engaged at work. Engaged employees drive better business results.”
The bottom line is that many employees have felt increasingly unsupported by their employers since COVID-19 darkened their doors.
Unless, that is, they work for agile businesses. Agility has enabled some companies to adapt their organizational structure, benefits, and culture to better satisfy the needs of today’s workers. According to experts, these needs include greater flexibility such as permanent remote-work options and investments in technology to keep hybrid teams engaged and collaborating smoothly.
When the first COVID-19 shutdowns were mandated in the U.S. in early 2020, consumer preferences shifted almost overnight. Customers began to focus more on health and safety than cost or convenience, and many quickly shunned physical stores and places of business for delivery and online service options.
Agile businesses were able to respond to these changes rapidly. They restructured their resources and systems to adapt, shifting from brick-and-mortar to online sales, moving customer support online, and offering expanded delivery options. These companies are still in business; some of their competitors are not.
Recent research indicates that the changes in consumer preferences fostered by the pandemic may be here to stay. For example, a study by Qualtrics, an experience management company, found that 25 percent of surveyed consumers expect to continue doing more personal banking online after the pandemic. Nearly 20 percent plan to purchase more products online even once the pandemic has passed, and 16 percent plan to continue contacting customer service online.
The only thing certain about 2022 is that our world will continue to be unpredictable. So far this year, we’ve already seen the emergence of a new COVID-19 variant, dubbed Omicron, that is spreading more rapidly than other strains thanks to its vast number of mutations. Supply chain woes are continuing, and inflation is surging, rising at its fastest pace since 1982.
There are no guarantees that doing business over the next 12 months will be any easier than it was in the last 24. Agile organizations, however, have little to fear. Their resilience will continue to enable them to adjust quickly to changes within their industry and market and remain financially successful despite the multitude of uncertainties we face.
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Organizational agility refers to a company's ability to rapidly adapt to market changes and respond effectively to customer needs, ensuring sustained growth and competitiveness.
Employee engagement is the emotional commitment that employees have to their organization, which influences their motivation and performance at work.
The Great Resignation refers to the trend of employees voluntarily leaving their jobs in large numbers, particularly observed during and after the COVID-19 pandemic.
Consumer behavior is the study of how individuals make decisions to spend their resources on consumption-related items, influenced by various factors including cultural, social, and personal.
Business resilience is the ability of an organization to withstand and recover from disruptions, ensuring continuity and stability in operations.
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