Markets aren’t what they used to be. The Internet’s global reach and ability to supply a near-instantaneous flow of information have forced businesses to sustain an unprecedented scale and pace. Customers and suppliers are acting accordingly, and they’re changing their demands quickly. For every company that can’t keep up, there’s one or more that can and will.

Figure 1: Perceived sources of competitive advantage According to our recent survey of more than 1,100 global CEOs, agility is squarely at the top of the executive agenda. The ability to adapt to change was cited as one of the most important sources of competitive advantage over the next 12 months—trumping even technological innovation and talent.

Simply put, you need cultural and operational agility. There’s that word again—agility. It’s been permeating the corporate lexicon. But agility is more than a buzzword; it’s a survival skill. In an environment where global reach, technical prowess, and optimal efficiency are requirements, agility is a key differentiator. In fact, the ability to adapt to change was ranked as one of the most important perceived sources of competitive advantage by executives in PwC’s most recent global CEO survey. (See Figure 1.)

So, what exactly is agility, and under whose job description does it fall? Agility is infusion of your processes and decision making—your corporate DNA really—with the ability to effect strategic change. It involves everything you, your management team, and your employees choose to do. This emphasis on selectivity is key because true agility requires establishing a fine balance between flexibility and standardization. You must determine where it makes sense to create and anticipate change and where it is more prudent to require a fixed approach. This balancing act is necessary: While your customers expect unique products and services, you have to provide those custom solutions from a common, standardized supply chain and infrastructure.

The endgame, of course, is not change for its own sake but the building of an optimal foundation—one that enables you to respond to crucial opportunities and challenges with maximum results and minimal organizational stress.