Agile Management

So the CEO of Swiss Reinsurance Company faced with increasing amounts of uncertainty and rising competitive threat levels in 2016 trumpets this week an “agile capital” strategy. In simple terms, capital allocation will seek to keep pace with foreseen and unforeseen business opportunities. I make no value judgement about his firm’s future but shouldn’t that be something everyone should be doing already in his organisation?

Here is four outcomes that the Board and management in my very best clients rigorously apply, hold each other accountable for and align rewards around:

1. Performance in allocating capital.

2. Performance in people decision-making.

3. Performance in innovation.

4. Performance in implementing strategy.

It reminds me of those classic boxing fights of the 70s and 80s, when fighters such as Ali, Sugar Ray Leonard and so on prided themselves on their agility and their ability to outsmart a more fearsome opponent by constantly dancing around the ring. Some commentators hated the tactics, suggesting it lessened a great contest but the point was those fighters ended up winning the fight, not because they had more power but because they were smarter. Agility was but one of their strengths. Perhaps many insurance and financial services CEOs are waking up to the fact that standing flat footed in the ring is a bum idea in a tough fight, hooray.

© James Berkeley 2015. All Rights Reserved.

 

Tags: , , , , , , , ,

Leave a Reply

*