The Meaning of Enterprise Agility To match the accelerating speed with which their market sectors are changing, companies must take a broader approach to becoming innovative—an approach that we refer to as ‘enterprise agility.’ By that, we mean aan orn orggaannizizaattion thion thaat cat can n adadaappt alt all the cl the coorree elemen elementtss of it of its bus bussiinesnesss——ititss s sttraratteeggyy, pr, proodducuct at annd serd servvicice e offofferierinnggs, the bus, the bussiinesnesss pr prooccesesses thses thaatt cr creeaattee a annd fd fuullfifilll demanl demand fd for those offor those offerieringngs, s, itits ps peeople’ople’s ss skkiillllss, a, annd td teecchhnnoloologgy ay annd Id IT iT innffrraasstructructuturree—a—at the pact the pace the thaatt’’s rs reeqquuiirreed d ttoo s sttaayy c coompmpetitive and soetitive and solvlvenentt. T. hat, in turn, means adopting a lean-agile culture throughout the organization, not just in software development. While there are three broad dimensions to achieving enterprise agility—strategy and process, people and culture, and tools and technology—in this article, we discuss the elements that are conducive for innovation: 1. Strategy formulation to guide the organization’s innovation efforts; 2. Cultural transformation to change values, beliefs, mindset, and behaviors at all levels; and 3. Focused experimentation to improve everything. Let’s look at each element. Strategy Formulation A key step in enterprise agility is outlining a company’s 1 innovation strategy: what it seeks to accomplish through innovation, and how. This strategy requires executives who are aligned, engaged, and committed to innovation. They must communicate consistent messages across the enterprise about the goals, why they matter, and X X X how every employee in every function and group can contribute. Top managers must then encourage the next level of leaders to successively spread, contextualize, and reinforce those same messages in their business units and functional areas.