It’s time to rethink your operating model

We hear a lot about the importance of agility in today’s business environment. But what does that mean in practice? My organization, Project Management Institute, recently set out to answer that exact question, surveying more than 700 C-suite leaders to develop a manifesto that not only defines enterprise agility but also identifies tradeoffs that provide organizations with a clear roadmap for achieving it. Here are three key takeaways from our quantitative research and extensive dialogue with executives across industries and 12 countries. 1. Transformation is business as usual Cruise control won’t cut it anymore; while an overwhelming 93% of senior executives agree that operating models must be challenged at least every five years, the reality is moving much faster. Today, 65% of organizations are adapting and rewriting their business approaches every two years or sooner. However, when asked about their top barrier to reinvention, 35% of CEOs said it’s a disconnect between planning and execution. Deciding how to change is one thing, but doing it is different—and much harder. Closing this gap needs an urgent focus on building the capability to continuously deliver outcomes. Giles Lindsay, CIO at Agile Delta, explains: “Reinvention is not an event; it is a rhythm. It becomes a capability, not a program. Every sprint, every quarter, and every strategy review create space to test, learn, and adjust.” 2. Not everyone feels accountable Roughly one in four CEOs said the presence of functional silos over shared accountabilities gets in the way of enterprise agility. If there isn’t a collective sense of responsibility, it’s hard to implement change. For enterprise agility to become a reality, organizations must prioritize long-term enterprise goals and cross-functional collaboration over short-term, departmental, sub-optimized KPIs. Howard Yu, professor at IMD Business School, explains that the ultimate goal is having agility fully embedded across the enterprise. “Organizat