Significance
Structure influences agility in the following ways. It determines:
The speed of decision-making and thereby the responsiveness to customer needs and changes in the environment
How efficient and effective the feedback loops are, that is, the speed at which the enterprise is able to sense the changes in the environment, and how quickly this information reaches the relevant stakeholders
The level of collaboration between people within and across teams
The alignment of teams toward delivering valuable outcomes
How effectively the strategy of the enterprise is executed
How optimally synergies across the business are identified and leveraged
The extent to which an enterprise can scale and descale quickly
The distribution of power and authority across a firm
It should be noted that among all the tangible elements of an enterprise, its structure is perhaps the most difficult to change. However, on the flip side, the right structure can be the biggest enabler for enhancing enterprise agility...
