How to Avoid the Agility Trap

In an environment of rapid change, trying to adapt to every shift can lead to chaos. Instead, keep your eye on what remains constant. by Jianwen Liao and Feng Zhu

From the Magazine (November–December 2024)

<em>Compass travellers (southeast), 2022; </em> photo: Cuauhtli Gutiérrez; © 2022 Olafur Eliasson. All images courtesy of Olafur Eliasson; neugerriemschneider, Berlin; Tanya Bonakdar Gallery, New York/Los Angeles

Summary.

Agility is all the rage in strategy circles these days. According to conventional wisdom, organizations should rapidly react to technological advances, new market dynamics, and shifting consumer preferences. But in practice this is nearly impossible to pull off, because the environment is evolving much faster than firms can respond to. The consequences of trying to keep up with every change are stark: the erosion of competitive advantages, a myopic focus on the short term, and organizational chaos. In their research the authors have repeatedly seen that in volatile environments, firms anchoring their strategies in a few enduring factors, rather than many transient ones, are more likely to achieve sustainable growth. This approach is called strategic constancy. It involves recognizing the fundamental aspects of the company’s business model—its core values, customer relationships, brand identity, and key competencies—and remaining dedicated to them despite external pressures. It emphasizes depth over breadth—deepening the company’s competitive advantage in its core areas rather than spreading efforts thinly over many.

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Suning, once a market leader in China’s retail sector, was a poster child for agile strategy. While many traditional retailers hesitated in responding to new technologies and evolving consumer preferences, Suning repeatedly pounced on digital trends and other opportunities.

Read more on Strategy or related topics Competitive strategy, Strategy formulation, Change management and Growth strategy

A version of this article appeared in the November–December 2024 issue of Harvard Business Review.

Read more on Strategy or related topics Competitive strategy, Strategy formulation, Change management and Growth strategy

How to Avoid the Agility Trap

Summary.

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