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What’s the cost of Agility?
People often ask me if agility costs a lot. Do we need to spend a lot of money to get more agile?
The more important question is… what’s the cost of not being agile? Companies lose 10-20% of their revenue due to stockouts or late deliveries. Obsolescence costs anywhere between 2-5% of revenue. Expediting is another significant cost which also drains the team ‘s energy. Are you willing to live with these losses?
Let’s now come to the cost of agility. The right way to get more agile doesn’t cost money at all. In fact, it saves money.
Agility comes from questioning the hidden assumptions, challenging current policies, processes and practices. Teams are inherently agile, our archaic systems slow them down. All we need to do is remove these blockers.
If your operations aren’t getting more agile every day, I would suggest finding the blockers and removing them.