Measuring agility as a performance outcome

Abstract

PurposeThe purpose of this research was to construct a quantitative, objective metric for agility performance that assesses agility as a performance outcome, capturing both organizational success and environmental turbulence, and applicable to manufacturing organizations of all types.Design/methodology/approachThe agility performance metric was developed by creating a theoretical model and then operationalizing the model through literature review, case studies, and pilot survey data. It was subsequently refined, based on input from an expert panel and survey responses.FindingsThe agility performance metric is demonstrated using data from four manufacturing plants, which represent the four possible combinations of success and turbulence.Research limitations/implicationsThe agility metric developed is consistent with the theoretical model, as well as empirical evidence from the demonstration companies. Further validation of the metric is necessary to fully establish this approach as a valid and reliable assessment tool.Practical implicationsThis approach could be used by manufacturing managers to get a “snapshot” of an organization's agility performance level and to systematically consider the influence of environmental entities.Originality/valueConsideration of agility as a performance outcome, rather than a structural or operational characteristic is a novel approach. The resulting quantitative performance index, which closely matches the theoretical definition of agility, is applicable to any type of manufacturing organization, can be used to make direct comparisons between manufacturers in different industries, and will automatically be updated over time as success is relative to industry medians.