The Idea in Brief
In today's volatile world, doing business feels like competing in a heavyweight boxing ring. To prevail, should your company rely on agility (nimbleness) to quickly spot and exploit market changes? For instance, shifting resources from struggling divisions to more promising ones can spur revenues.
Or should you rely on absorption (toughness) to withstand punches? For example, keeping a lot of cash on hand might enable your firm to weather unexpected threats.
Sull recommends agile absorption: deploying both capabilities in various combinations as needed. Through agile absorption, you consistently identify and seize opportunities while also retaining the structural heft your company needs to thrive.
Toyota, for example, maintains absorption by employing a large workforce, but unlike U.S. automakers, enhances agility with a combination of flexible work rules, variable job assignments, and employee involvement.
The Idea in Practice
Sources of Agility
Sources of Absorption
Achieving Agile Absorption
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