5. APPROACH TO COMPETING IN THE MARKETPLACE Differentiation, Source of Sustainable Competitive Advantage Bureaucracy Price Quality Service Speed Features Steady Innovation “ Flywheel of Momentum” (Loyal customers, world-class brands, integrated distributed networks, robust patent portfolios, superior business model) Coasting : The old way of cycling Agile Enterprise Rapid fire innovation (Continuous stream of new products, services, even business models) Thrust (Probe) Escape (Withdraw) Parry (Adapt) Punch (Execute) Attack, Leapfrog, Outmaneuver
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7. APPROACH TO DEVELOPING OR FORMING BUSINESS STRATEGY Based on assumption that the business environment is knowable and predictable Based on the assumption that the business environment is chaotic and unpredictable Business Strategy Organizational Capability
8. DESIRED EMPLOYEE BEHAVIORS Bureaucracy Reliable Role Behavior Come to work on time do what you’re told Occupants of fixed positions responsible for performing tasks Forbidden Required Forbidden Discretionary R Discretionary Agile Enterprise Expansive Role Behavior Initiate Improvise Assume multiple roles Rapidly redeploy Spontaneously collaborate Educate Learn Owners of fluid assignments, Responsible for achieving results
9. APPROACHES TO DESIGNING AN AGILE ORGANIZATION INFRASTRUCTURE Bureaucracy Centralized IS Control- oriented Specific CPBs Fixed Enclosed Fixed Wkplace Design Restructure P Agile Enterprise General CPBs Flexible Distributive IS Facilitative Open Adaptable Wkplace Design Reconfigure People V,V CPM “ If everyone has to think outside the Box, maybe it’s the box that needs fixing” Malcolm Gladwell Org Design Centralized Fixed Org Design Decentralized Flexible
10. APPROACHES TO DESIGNING KEY FEATURES OF AN HR STRATEGY (A) Bureaucracy Fostering reliable role behavior guided and constrained by the “Box” Overcoming Stultification Goals Right nos. of right types of people in right place at the right times SCALABILITY Doing the right things right CONTRIBUTION Feeling reasonably good about it MORALE At an affordable cost Ethically, lawfully Agile Enterprise Fostering expansive role behavior using the “Box” Overcome overload, manage risk
11. APPROACHES TO DESIGNING KEY FEATURES OF AN HR STRATEGY (B) Guiding Principles Bureaucracy Set goals Establish procedures Minimize Measure Develop competence ? Drive (Results-oriented) Discipline (Goal-directed) Autonomy Accountability Growth Continuity Agile Enterprise Forge a sense of Common purpose Promote contextual Clarity Foster fluid assignments Instill ownership of outcomes Facilitate serial incompetence Encourage continuous employment
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13. APPROACHES TO LEADERSHIP Bureaucracy Set vision, formulate strategy Champion the BO paradigm Focus on creating content Provide resources Plan, organize, direct, control Run things Agile Enterprise Set vision, strategic direction domain Champion the AE paradigm (Create uncertainty and ambiguity) Focus on creating context over content Instill a sense of urgency Coach, communicate, cajole Otherwise Stay out of the way