SlideShare a Scribd company logo
1 of 39
Download to read offline
Maximizing Business
Success Through
Organizational Agility
Nicholas Born
Kasey Kovack
Matthew Olson
April 28, 2015
Cornell University
ILR School
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
A Story About the Evolution of Payment
How do you respond?
How do you foresee what’s
next?
How do you reinvent yourself
to not fall behind?PRODUCT
INNOVATION
REGULATORY
CHANGE
01.
Cornell University
ILR School
02.
Center for Advanced Human Resource Studies (CAHRS)
T I M E L I N E
The average lifespan of a
company listed in the S&P 500
has decreased from 67 years in
the 1920s to 15 years today.
-Richard Foster, Yale University
	
  
24%
The Business Case For Agility
Sources: (1) Richard Foster, Yale, (2) Fortune 500 (1987-2012), (2) Fast Company, April 2011
In 10 years,
40% of the Fortune 500
will no longer exist.
T I M E L I N E
Cornell University
ILR School
03.
Center for Advanced Human Resource Studies (CAHRS)
The Need For Agility
Cornell University
ILR School
Presentation Overview
01. What is organizational agility?
02. Where is agility needed?
03. What types of agility exist?
04. How do you embed agility?
05. How do you measure agility?
Center for Advanced Human Resource Studies (CAHRS)
Cornell University
ILR School
04.
Center for Advanced Human Resource Studies (CAHRS)
28Interviews
23Unique CAHRS
Organizations
Insights from
8Industries(Tech, CPG, Financial Services,
Manufacturing, Retail, Pharma/Healthcare,
Oil & Gas, Consulting)
60Minute
Interviews
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
01.What is
organizational agility?
01. What is organizational agility?
02. Where is agility needed?
03. What types of agility exist?
04. How do you embed agility?
05. How do you measure agility?
06. Conclusion
Cornell University
ILR School
05.
Center for Advanced Human Resource Studies (CAHRS)
What is organizational agility?
The ability to respond to market conditions
and environmental changes.
IS IS NOT
A sustained capability to adapt A static, one-time change effort
Strategic nimbleness Fixed strategy
Proactive planning to enable timely
responses
Reactive, uncoordinated responses
Embedded flexibility in all dimensions of
the organization
Rigid processes and policies
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
02.Where is agility
needed?
01. What is organizational agility?
02. Where is agility needed?
03. What types of agility exist?
04. How do you embed agility?
05. How do you measure agility?
06. Conclusion
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
Agility on a Spectrum
06.
NEEDSCAPABILITIES
Industry Need
Functional Need
Company Size
Employee Base
Technology
Financial
Services
R&DAccounting
Large Small
Large Small
L E V E L O F AG I L I T YLO W H I G H
Foundational
Elements
None Many
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
03.What types of agility
exist?
01. What is organizational agility?
02. Where is agility needed?
03. What types of agility exist?
04. How do you embed agility?
05. How do you measure agility?
06. Conclusion
Cornell University
ILR School
07.
Center for Advanced Human Resource Studies (CAHRS)
MICRO-LEVEL AGILITY
Bilateral Perspective of
Organizational Agility
MACRO-LEVEL AGILITYTRANSFER
Found In:
•  Multiple functions
•  Entire organizations
Examples Requiring Macro Agility:
•  Larger strategic changes
•  Company relocation
•  Wide-spread regulation
•  Restructurings
Found In:
•  One department
•  Smaller teams
Examples Requiring Micro Agility:
•  Continuous innovation
•  Changes in customer preferences
•  New rivalry
•  Loss of key accounts or suppliers
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
04.How do you
embed agility?
01. What is organizational agility?
02. Where is agility needed?
03. What types of agility exist?
04. How do you embed agility?
05. How do you measure agility?
06. Conclusion
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
Our research has identified
3 COMMON
CHARACTERISTICS
of agile organizations:
External Focus
Experimentation
Embracing Change
1.
2.
3.
08.
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
External Focus
Experimentation
Embracing Change
09.
TALENT
STRUCTURE
ENABLERS
•  Talent Capabilities1.
2.
3.
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
External Focus
Experimentation
Embracing Change
10.
STRUCTURE
ENABLERS
TALENT
•  Organizational
Structure
•  Team Design
•  Work Processes
1.
2.
3.
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
External Focus
Experimentation
Embracing Change
11.
ENABLERS
TALENT
STRUCTURE
•  HR Levers
•  Organizational
Processes
•  Company Practices
1.
2.
3.
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
External Focus
Experimentation
Embracing Change
12.
1.
2.
3.
S T R AT E G I C
A L I G N M E N T
I N F R A S T R U C T U R E
TALENT
STRUCTURE
ENABLERS
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
13.
STRATEGIC ALIGNMENT
Understanding the Business Case for
Agility
Inspiring Vision, Mission & Culture
Leadership Competencies & Unity
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
14.
INFRASTRUCTURE
Global HR Infrastructure
Communication & Information Sharing 	
  
Future Focus
Analytical
Diverse
Perspectives
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
EXTERNAL FOCUS
TA L E N T S T R U C T U R E E N A B L E R S
Maximize
External
Touchpoints
Build External
Partnerships
Empower Local
Teams
Capture
Customer Voice
Anticipate
Unconventional
Competition
Systemically
Share Insights
15.
Fail-Quick
Mindset
Growth Mindset
Design
Thinking
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
16.
EXPERIMENTATION
TA L E N T S T R U C T U R E E N A B L E R S
Separated Core
& Experimental
Businesses
Network
Structure
Local Team
Structure
Avenues to
Voice & Assess
Ideas
Differentiated
HR Practices
Courage
Comfortable
with Ambiguity
& Change
Enterprise
Thinker
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
17.
EMBRACING CHANGE
TA L E N T S T R U C T U R E E N A B L E R S
Cross-
Pollination
Change Teams
Nimble
Structures &
Resources
Standardized
Approaches
Talent Change
Preparation
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
05.How do you
measure agility?
01. What is organizational agility?
02. Where is agility needed?
03. What types of agility exist?
04. How do you embed agility?
05. How do you measure agility?
06. Conclusion
Cornell University
ILR School
18.
Center for Advanced Human Resource Studies (CAHRS)
Organizational
Measures
Business
Measures
Proxy Metrics
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
Measuring Agility:
A Case Study
Industry:
•  Medical Device Manufacturer
Situation:
•  Customer consolidation
•  Federal regulations
•  Product commoditization
Key Question:
•  How do you measure whether your
organization is agile enough to respond?
19.
Cornell University
ILR School
20.
Center for Advanced Human Resource Studies (CAHRS)
Organizational Measurements:
Strategic
Alignment
External
Focus
Experimentation
Embracing
Change
Organizational & Team
Effectiveness X
Organizational Design X X
Cross-Pollination X X
Change Management X
Talent Capabilities X X X
Selecting Proxy Metrics
Cornell University
ILR School
21.
Center for Advanced Human Resource Studies (CAHRS)
Business Measurements:
Selecting Proxy Metrics
Strategic
Alignment
External
Focus
Experimentation
Embracing
Change
Customer X X X
Market Share X X X
Innovation X X
Labor Cost X
Overall Business Success X X X X
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
06.Conclusion
01. What is organizational agility?
02. Where is agility needed?
03. What types of agility exist?
04. How do you embed agility?
05. How do you measure agility?
06. Conclusion
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
22.
Cornell University
ILR School
Thank you.
Q&A
Center for Advanced Human Resource Studies (CAHRS)
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
Academic Perspective on Agility
Highly agile executives
have 25% higher
profit margins.
Sources: (1) Korn Ferry, “Developing Learning Agility” (2) MIT, (3) McKinsey Organizational Health Index
Executives with high levels
of learning agility are
5X more likely to be
highly engaged.
+37%
+30%
Faster Revenue Growth.
Higher Profits.
Agile organizations have:
(vs. non-agile firms)
2x more likely to outperform
peers on margin, book value &
income growth.
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
STRATEGIC ALIGNMENT
Understanding the Business Case for Agility
•  Burning platform issue
•  Building optionality into your strategic agenda
Inspiring Vision, Mission & Culture
•  Consistent communication of a factually based and emotionally inspiring business
case
•  Broad goals that encompass strategic optionality
•  Company-wide behaviors, competencies & values that promote agility
Leadership Competencies & Unity
•  Clear alignment among ELTs
•  Essential leadership competencies include the ability to inspire, overcome risk
aversion, communicate effectively, offer support and cover, empower local decision-
making & drive change
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
INFRASTRUCTURE
Global HR Infrastructure
•  HR Technology
•  HRIS, technology-enabled performance management, engagement survey
data, real-time talent database, & proactive org. effectiveness
•  HR Processes
•  Strategic workforce planning, standardized performance management, &
proactive competency assessment
•  HR Operating Model Structure
•  Shared resources with regional flexibility
Communication & Information Sharing
•  Knowledge management
•  Customer and market insights
•  General communication technologies
	
  
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
EXTERNAL FOCUS
TA L E N T S T R U C T U R E E N A B L E R S
Maximize External
Touchpoints
•  Co-locate employees with
customers
•  Dedicated insights-driven
strategy team
External Partnerships
•  Outsourcing
•  Industry collaborations
•  Thought leaders
Empower Local Teams
•  Defer decision making to
local leadership
•  Utilization of regional
operating models
Capture Customer Voice
•  Establish customer intimacy
to understand needs/goals
•  Pilots and iterations
incorporating customer
feedback
Anticipate Unorthodox
Competition
•  Closely monitor emerging
competitors in adjacent
industries, technologies and
markets
Systemically Share Insights
•  Advisory council to the CEO
•  Leadership conferences
•  Knowledge-share technology
and platforms
New Capabilities
•  Future focus
•  Analytical
•  Diverse perspectives
New Capabilities
•  Design thinking principles
•  Fail-quick mindset
•  Growth mindset
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
EXPERIMENTATION
TA L E N T S T R U C T U R E E N A B L E R S
Separating Core &
Experimental Businesses
•  Silo new businesses to allow
for unique culture and way of
working
•  Differentiation in HR systems
•  Use as talent exporter to
service macro-level agility
Networking Structure
•  Reconfigurable, on-demand
teams
•  Leader support for short-
term, project-based
assignments
Local Team Structure
•  Using sprint, scrum and pilot
teams that focus on iterative
design
•  Pushing down decision
making authority for real-time
evaluation of ideas and action
Avenues for Voicing &
Assessing Ideas
•  Formal – Summits, innovation
councils, Shark Tanks
•  Informal – 3D printers, crowd
sourcing, CS cards
Differentiated HR Practices
•  Performance Management/
Goal Setting (Broad goals,
short-term goals at end of
sprint, frequent 360
feedback)
•  Training (Innovation
Champions, scrum leadership
training, etc.)
•  Compensation tied to
strategic goals & reward
experimentation
New Capabilities
•  Courage
•  Comfortable with ambiguity &
change
•  Enterprise thinker
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
EMBRACING CHANGE
TA L E N T S T R U C T U R E E N A B L E R S
Cross-Pollination
•  Leverage network structures
to flow ideas, culture, change
capability throughout the
organization
•  Deliberate talent movement
across core and experimental
businesses
Change Teams
•  Assessment of change
capability and status (pre-,
during and post-)
•  SMEs, SWOT teams, Change
champions
•  Leverage toolkits and share
information
Nimble Structures &
Resources
•  Flex resources as priorities
evolve
•  Flatter – can make own
decisions and move quickly
Standardized Approaches
•  Remove non-value work
•  Common operating principles
•  Change management
processes (Data driven
inspiring message, learning
maps, cascading goal setting)
•  M&A processes
Talent Change Preparation
•  Cross-training promoting
enterprise thinking
•  Leadership simulations
•  Rapid reskilling
•  Contingency planning
•  Upskilling HR to support
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
Organizational Measurements:
Strategic
Alignment
External Focus Experimentation Embracing Change
Organizational & Team Effectiveness
•  Understanding of role, strategy, vision
•  Understanding of work processes
X
Organizational Design
•  Span of control
•  Layers in the organization
•  Decision making authority
X X
Cross-Pollination
•  Job movement
•  Turnover/Retention
•  Net promoter score (EE promoting company)
X X
Change Management
•  Change capability assessment
•  Change readiness
•  Change adoption
X
Talent Capabilities
•  Skill usage gaps/work climate gaps
•  Ready now leaders
•  Succession pipelines based on new capabilities X X X
Selecting Proxy Metrics
Cornell University
ILR School
Center for Advanced Human Resource Studies (CAHRS)
Business Measurements:
Selecting Proxy Metrics
Strategic
Alignment
External Focus Experimentation Embracing Change
Customer
•  Account maintenance
•  Account risk level pre/post change
•  Speed of customer acquisition
X X X
Market Share
•  Market share in recently entered region/business
line/product offering
X X X
Innovation
•  % of sales from NPIs
•  Speed to market
•  Usage rates of new products
X X
Labor Cost
•  FTE/non-FTE ratios
•  Variable and non-variable pay/cost
X
Other
•  Revenue growth
•  Market share
•  Profitability, etc.
X X X X

More Related Content

What's hot

10 steps to a successsful enterprise agile transformation global scrum 2018
10 steps to a successsful enterprise agile transformation   global scrum 201810 steps to a successsful enterprise agile transformation   global scrum 2018
10 steps to a successsful enterprise agile transformation global scrum 2018Agile Velocity
 
Exploring Agile Transformation and Scaling Patterns
Exploring Agile Transformation and Scaling PatternsExploring Agile Transformation and Scaling Patterns
Exploring Agile Transformation and Scaling PatternsMike Cottmeyer
 
Enterprise Agile Transformation Strategies
Enterprise Agile Transformation StrategiesEnterprise Agile Transformation Strategies
Enterprise Agile Transformation StrategiesMike Cottmeyer
 
Lean & Agile Performance Measurement: Metrics, Models, & Measures
Lean & Agile Performance Measurement: Metrics, Models, & MeasuresLean & Agile Performance Measurement: Metrics, Models, & Measures
Lean & Agile Performance Measurement: Metrics, Models, & MeasuresDavid Rico
 
10 Essential SAFe(tm) patterns you should focus on when scaling Agile
10 Essential SAFe(tm) patterns you should focus on when scaling Agile10 Essential SAFe(tm) patterns you should focus on when scaling Agile
10 Essential SAFe(tm) patterns you should focus on when scaling AgileYuval Yeret
 
Agile transformation Explained: Agile 2017 Session
Agile transformation Explained: Agile 2017 SessionAgile transformation Explained: Agile 2017 Session
Agile transformation Explained: Agile 2017 SessionLeadingAgile
 
Lean Project Portfolio Management
Lean Project Portfolio ManagementLean Project Portfolio Management
Lean Project Portfolio ManagementAlexander Apostolov
 
Agile Mindset For Executives
Agile Mindset For ExecutivesAgile Mindset For Executives
Agile Mindset For ExecutivesMichael Tarnowski
 
Agile Transformation v1.27
Agile Transformation v1.27Agile Transformation v1.27
Agile Transformation v1.27LeadingAgile
 
Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...
Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...
Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...Cprime
 
Reprogramming Leadership for Agility - September 2016
Reprogramming Leadership for Agility - September 2016Reprogramming Leadership for Agility - September 2016
Reprogramming Leadership for Agility - September 2016Pete Behrens
 
System of Delivery: An Intro to Our Governance Model
System of Delivery: An Intro to Our Governance ModelSystem of Delivery: An Intro to Our Governance Model
System of Delivery: An Intro to Our Governance ModelLeadingAgile
 
Rick Austin - Portfolio mangement in an agile world [Agile DC]
Rick Austin - Portfolio mangement in an agile world [Agile DC]Rick Austin - Portfolio mangement in an agile world [Agile DC]
Rick Austin - Portfolio mangement in an agile world [Agile DC]LeadingAgile
 
Change Management Toolkit including Models, Plans, Frameworks & Tools
Change Management Toolkit including Models, Plans, Frameworks & ToolsChange Management Toolkit including Models, Plans, Frameworks & Tools
Change Management Toolkit including Models, Plans, Frameworks & ToolsAurelien Domont, MBA
 
Modern Agile Management and Leadership
Modern Agile Management and LeadershipModern Agile Management and Leadership
Modern Agile Management and LeadershipAntti Kirjavainen
 
Team Topologies - how and why to design your teams - AllDayDevOps 2017
Team Topologies - how and why to design your teams - AllDayDevOps 2017Team Topologies - how and why to design your teams - AllDayDevOps 2017
Team Topologies - how and why to design your teams - AllDayDevOps 2017Matthew Skelton
 
Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017
Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017
Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017Taoufik Fekhar
 
Agile Transformation in Telco Guide
Agile Transformation in Telco GuideAgile Transformation in Telco Guide
Agile Transformation in Telco GuideACM
 

What's hot (20)

Agile Mindset Shifting: Agile For All
Agile Mindset Shifting: Agile For AllAgile Mindset Shifting: Agile For All
Agile Mindset Shifting: Agile For All
 
10 steps to a successsful enterprise agile transformation global scrum 2018
10 steps to a successsful enterprise agile transformation   global scrum 201810 steps to a successsful enterprise agile transformation   global scrum 2018
10 steps to a successsful enterprise agile transformation global scrum 2018
 
Exploring Agile Transformation and Scaling Patterns
Exploring Agile Transformation and Scaling PatternsExploring Agile Transformation and Scaling Patterns
Exploring Agile Transformation and Scaling Patterns
 
Enterprise Agile Transformation Strategies
Enterprise Agile Transformation StrategiesEnterprise Agile Transformation Strategies
Enterprise Agile Transformation Strategies
 
Lean & Agile Performance Measurement: Metrics, Models, & Measures
Lean & Agile Performance Measurement: Metrics, Models, & MeasuresLean & Agile Performance Measurement: Metrics, Models, & Measures
Lean & Agile Performance Measurement: Metrics, Models, & Measures
 
10 Essential SAFe(tm) patterns you should focus on when scaling Agile
10 Essential SAFe(tm) patterns you should focus on when scaling Agile10 Essential SAFe(tm) patterns you should focus on when scaling Agile
10 Essential SAFe(tm) patterns you should focus on when scaling Agile
 
Agile transformation Explained: Agile 2017 Session
Agile transformation Explained: Agile 2017 SessionAgile transformation Explained: Agile 2017 Session
Agile transformation Explained: Agile 2017 Session
 
Lean Project Portfolio Management
Lean Project Portfolio ManagementLean Project Portfolio Management
Lean Project Portfolio Management
 
Agile Mindset For Executives
Agile Mindset For ExecutivesAgile Mindset For Executives
Agile Mindset For Executives
 
Agile Transformation v1.27
Agile Transformation v1.27Agile Transformation v1.27
Agile Transformation v1.27
 
Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...
Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...
Lean Portfolio Strategy Part 2: Shifting from Imitation to Real LPM - The Mov...
 
Reprogramming Leadership for Agility - September 2016
Reprogramming Leadership for Agility - September 2016Reprogramming Leadership for Agility - September 2016
Reprogramming Leadership for Agility - September 2016
 
System of Delivery: An Intro to Our Governance Model
System of Delivery: An Intro to Our Governance ModelSystem of Delivery: An Intro to Our Governance Model
System of Delivery: An Intro to Our Governance Model
 
Rick Austin - Portfolio mangement in an agile world [Agile DC]
Rick Austin - Portfolio mangement in an agile world [Agile DC]Rick Austin - Portfolio mangement in an agile world [Agile DC]
Rick Austin - Portfolio mangement in an agile world [Agile DC]
 
Change Management Toolkit including Models, Plans, Frameworks & Tools
Change Management Toolkit including Models, Plans, Frameworks & ToolsChange Management Toolkit including Models, Plans, Frameworks & Tools
Change Management Toolkit including Models, Plans, Frameworks & Tools
 
Modern Agile Management and Leadership
Modern Agile Management and LeadershipModern Agile Management and Leadership
Modern Agile Management and Leadership
 
Team Topologies - how and why to design your teams - AllDayDevOps 2017
Team Topologies - how and why to design your teams - AllDayDevOps 2017Team Topologies - how and why to design your teams - AllDayDevOps 2017
Team Topologies - how and why to design your teams - AllDayDevOps 2017
 
Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017
Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017
Agile Mindset : The Paradigm Shift..! - Agile Tour Algiers 2017
 
Agile Transformation in Telco Guide
Agile Transformation in Telco GuideAgile Transformation in Telco Guide
Agile Transformation in Telco Guide
 
Agile Transformation at Scale
Agile Transformation at ScaleAgile Transformation at Scale
Agile Transformation at Scale
 

Similar to Maximizing Business Success Through Organizational Agility

New Frontiers in Organizational Change
New Frontiers in Organizational ChangeNew Frontiers in Organizational Change
New Frontiers in Organizational ChangeScholar Consultants
 
Building OD Capabilities
Building OD Capabilities   Building OD Capabilities
Building OD Capabilities Wing Antariksa
 
Agility & Talent Mobility how to enable business strategy with modern perform...
Agility & Talent Mobility how to enable business strategy with modern perform...Agility & Talent Mobility how to enable business strategy with modern perform...
Agility & Talent Mobility how to enable business strategy with modern perform...Human Capital Media
 
5CO01 Organisational performance and culture in practice 5CO01-Week2.pptx
5CO01 Organisational performance and culture in practice 5CO01-Week2.pptx5CO01 Organisational performance and culture in practice 5CO01-Week2.pptx
5CO01 Organisational performance and culture in practice 5CO01-Week2.pptxkaran992457
 
2345Sara Miller McCune fou.docx
2345Sara Miller McCune fou.docx2345Sara Miller McCune fou.docx
2345Sara Miller McCune fou.docxjesusamckone
 
Oragnization development OD (INTRODUCTION)
Oragnization development OD (INTRODUCTION)Oragnization development OD (INTRODUCTION)
Oragnization development OD (INTRODUCTION)shagun jain
 
Hr value proposition
Hr value propositionHr value proposition
Hr value propositionsupreet28
 
Eesley research overview MS&E
Eesley research overview MS&EEesley research overview MS&E
Eesley research overview MS&EChuck Eesley
 
Innovation Management in an Organisational Setting
Innovation Management in an Organisational SettingInnovation Management in an Organisational Setting
Innovation Management in an Organisational SettingMohit Yadav
 
Innovation Mangement
Innovation MangementInnovation Mangement
Innovation MangementVikas Luthra
 
Alec Levenson: Future Proofing People Analytics
Alec Levenson: Future Proofing People AnalyticsAlec Levenson: Future Proofing People Analytics
Alec Levenson: Future Proofing People AnalyticsEdunomica
 
Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016
Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016
Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016Dr. Crispin Coombs
 
How to create best-in-class workplace experiences in 2017
How to create best-in-class workplace experiences in 2017How to create best-in-class workplace experiences in 2017
How to create best-in-class workplace experiences in 2017ISS Group
 
Critical Success Factors for KM: Presented to KM Chicago
Critical Success Factors for KM: Presented to KM ChicagoCritical Success Factors for KM: Presented to KM Chicago
Critical Success Factors for KM: Presented to KM ChicagoCurtis Conley
 
Knowledgeaudit
KnowledgeauditKnowledgeaudit
KnowledgeauditTimmy Lee
 
Shl talent-report-use (1)
Shl talent-report-use (1)Shl talent-report-use (1)
Shl talent-report-use (1)BFSICM
 

Similar to Maximizing Business Success Through Organizational Agility (20)

New Frontiers in Organizational Change
New Frontiers in Organizational ChangeNew Frontiers in Organizational Change
New Frontiers in Organizational Change
 
Building OD Capabilities
Building OD Capabilities   Building OD Capabilities
Building OD Capabilities
 
BUS137 Chapter 14
BUS137 Chapter 14 BUS137 Chapter 14
BUS137 Chapter 14
 
BUS137 Chapter 14
BUS137 Chapter 14 BUS137 Chapter 14
BUS137 Chapter 14
 
Agility & Talent Mobility how to enable business strategy with modern perform...
Agility & Talent Mobility how to enable business strategy with modern perform...Agility & Talent Mobility how to enable business strategy with modern perform...
Agility & Talent Mobility how to enable business strategy with modern perform...
 
5CO01 Organisational performance and culture in practice 5CO01-Week2.pptx
5CO01 Organisational performance and culture in practice 5CO01-Week2.pptx5CO01 Organisational performance and culture in practice 5CO01-Week2.pptx
5CO01 Organisational performance and culture in practice 5CO01-Week2.pptx
 
2345Sara Miller McCune fou.docx
2345Sara Miller McCune fou.docx2345Sara Miller McCune fou.docx
2345Sara Miller McCune fou.docx
 
Oragnization development OD (INTRODUCTION)
Oragnization development OD (INTRODUCTION)Oragnization development OD (INTRODUCTION)
Oragnization development OD (INTRODUCTION)
 
Talent Agility
Talent AgilityTalent Agility
Talent Agility
 
Hr value proposition
Hr value propositionHr value proposition
Hr value proposition
 
Eesley research overview MS&E
Eesley research overview MS&EEesley research overview MS&E
Eesley research overview MS&E
 
Innovation Management in an Organisational Setting
Innovation Management in an Organisational SettingInnovation Management in an Organisational Setting
Innovation Management in an Organisational Setting
 
Innovation Mangement
Innovation MangementInnovation Mangement
Innovation Mangement
 
Alec Levenson: Future Proofing People Analytics
Alec Levenson: Future Proofing People AnalyticsAlec Levenson: Future Proofing People Analytics
Alec Levenson: Future Proofing People Analytics
 
Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016
Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016
Taking the Elevator: Reflections on the PhD journey, DMU keynote May 2016
 
hrm
hrmhrm
hrm
 
How to create best-in-class workplace experiences in 2017
How to create best-in-class workplace experiences in 2017How to create best-in-class workplace experiences in 2017
How to create best-in-class workplace experiences in 2017
 
Critical Success Factors for KM: Presented to KM Chicago
Critical Success Factors for KM: Presented to KM ChicagoCritical Success Factors for KM: Presented to KM Chicago
Critical Success Factors for KM: Presented to KM Chicago
 
Knowledgeaudit
KnowledgeauditKnowledgeaudit
Knowledgeaudit
 
Shl talent-report-use (1)
Shl talent-report-use (1)Shl talent-report-use (1)
Shl talent-report-use (1)
 

Recently uploaded

Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...Travis Hills MN
 
Leading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateLeading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateVICTOR MAESTRE RAMIREZ
 
UX in an Agile World - Scrum Gathering
UX in an Agile World -   Scrum GatheringUX in an Agile World -   Scrum Gathering
UX in an Agile World - Scrum GatheringKaizenko
 
Principles of Management analyze how Zara manage
Principles of Management analyze how Zara managePrinciples of Management analyze how Zara manage
Principles of Management analyze how Zara managessuser4899c8
 
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfTEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfmarcuskenyatta275
 
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...kamrulShuva
 
Team Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceTeam Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceGDSC PJATK
 
Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)Kristi Rohtsalu
 

Recently uploaded (8)

Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
Travis Hills of Minnesota Leads Livestock Water and Energy in Sustainable Inn...
 
Leading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor CertificateLeading People - Harvard Manage Mentor Certificate
Leading People - Harvard Manage Mentor Certificate
 
UX in an Agile World - Scrum Gathering
UX in an Agile World -   Scrum GatheringUX in an Agile World -   Scrum Gathering
UX in an Agile World - Scrum Gathering
 
Principles of Management analyze how Zara manage
Principles of Management analyze how Zara managePrinciples of Management analyze how Zara manage
Principles of Management analyze how Zara manage
 
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdfTEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
TEST BANK for Operations Management, 14th Edition by William J. Stevenson,.pdf
 
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
Presentation On "Yusuf Ibn Tashfin" a true leader (1061 to 1106)_ prepared by...
 
Team Dynamics: A Journey to Excellence
Team Dynamics: A Journey to ExcellenceTeam Dynamics: A Journey to Excellence
Team Dynamics: A Journey to Excellence
 
Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)Risk Management in Banks - Overview (May 2024)
Risk Management in Banks - Overview (May 2024)
 

Maximizing Business Success Through Organizational Agility

  • 1. Maximizing Business Success Through Organizational Agility Nicholas Born Kasey Kovack Matthew Olson April 28, 2015 Cornell University ILR School
  • 2. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) A Story About the Evolution of Payment How do you respond? How do you foresee what’s next? How do you reinvent yourself to not fall behind?PRODUCT INNOVATION REGULATORY CHANGE 01.
  • 3. Cornell University ILR School 02. Center for Advanced Human Resource Studies (CAHRS) T I M E L I N E The average lifespan of a company listed in the S&P 500 has decreased from 67 years in the 1920s to 15 years today. -Richard Foster, Yale University   24% The Business Case For Agility Sources: (1) Richard Foster, Yale, (2) Fortune 500 (1987-2012), (2) Fast Company, April 2011 In 10 years, 40% of the Fortune 500 will no longer exist. T I M E L I N E
  • 4. Cornell University ILR School 03. Center for Advanced Human Resource Studies (CAHRS) The Need For Agility
  • 5. Cornell University ILR School Presentation Overview 01. What is organizational agility? 02. Where is agility needed? 03. What types of agility exist? 04. How do you embed agility? 05. How do you measure agility? Center for Advanced Human Resource Studies (CAHRS)
  • 6. Cornell University ILR School 04. Center for Advanced Human Resource Studies (CAHRS) 28Interviews 23Unique CAHRS Organizations Insights from 8Industries(Tech, CPG, Financial Services, Manufacturing, Retail, Pharma/Healthcare, Oil & Gas, Consulting) 60Minute Interviews
  • 7. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 01.What is organizational agility? 01. What is organizational agility? 02. Where is agility needed? 03. What types of agility exist? 04. How do you embed agility? 05. How do you measure agility? 06. Conclusion
  • 8. Cornell University ILR School 05. Center for Advanced Human Resource Studies (CAHRS) What is organizational agility? The ability to respond to market conditions and environmental changes. IS IS NOT A sustained capability to adapt A static, one-time change effort Strategic nimbleness Fixed strategy Proactive planning to enable timely responses Reactive, uncoordinated responses Embedded flexibility in all dimensions of the organization Rigid processes and policies
  • 9. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 02.Where is agility needed? 01. What is organizational agility? 02. Where is agility needed? 03. What types of agility exist? 04. How do you embed agility? 05. How do you measure agility? 06. Conclusion
  • 10. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) Agility on a Spectrum 06. NEEDSCAPABILITIES Industry Need Functional Need Company Size Employee Base Technology Financial Services R&DAccounting Large Small Large Small L E V E L O F AG I L I T YLO W H I G H Foundational Elements None Many
  • 11. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 03.What types of agility exist? 01. What is organizational agility? 02. Where is agility needed? 03. What types of agility exist? 04. How do you embed agility? 05. How do you measure agility? 06. Conclusion
  • 12. Cornell University ILR School 07. Center for Advanced Human Resource Studies (CAHRS) MICRO-LEVEL AGILITY Bilateral Perspective of Organizational Agility MACRO-LEVEL AGILITYTRANSFER Found In: •  Multiple functions •  Entire organizations Examples Requiring Macro Agility: •  Larger strategic changes •  Company relocation •  Wide-spread regulation •  Restructurings Found In: •  One department •  Smaller teams Examples Requiring Micro Agility: •  Continuous innovation •  Changes in customer preferences •  New rivalry •  Loss of key accounts or suppliers
  • 13. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 04.How do you embed agility? 01. What is organizational agility? 02. Where is agility needed? 03. What types of agility exist? 04. How do you embed agility? 05. How do you measure agility? 06. Conclusion
  • 14. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) Our research has identified 3 COMMON CHARACTERISTICS of agile organizations: External Focus Experimentation Embracing Change 1. 2. 3. 08.
  • 15. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) External Focus Experimentation Embracing Change 09. TALENT STRUCTURE ENABLERS •  Talent Capabilities1. 2. 3.
  • 16. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) External Focus Experimentation Embracing Change 10. STRUCTURE ENABLERS TALENT •  Organizational Structure •  Team Design •  Work Processes 1. 2. 3.
  • 17. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) External Focus Experimentation Embracing Change 11. ENABLERS TALENT STRUCTURE •  HR Levers •  Organizational Processes •  Company Practices 1. 2. 3.
  • 18. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) External Focus Experimentation Embracing Change 12. 1. 2. 3. S T R AT E G I C A L I G N M E N T I N F R A S T R U C T U R E TALENT STRUCTURE ENABLERS
  • 19. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 13. STRATEGIC ALIGNMENT Understanding the Business Case for Agility Inspiring Vision, Mission & Culture Leadership Competencies & Unity
  • 20. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 14. INFRASTRUCTURE Global HR Infrastructure Communication & Information Sharing  
  • 21. Future Focus Analytical Diverse Perspectives Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) EXTERNAL FOCUS TA L E N T S T R U C T U R E E N A B L E R S Maximize External Touchpoints Build External Partnerships Empower Local Teams Capture Customer Voice Anticipate Unconventional Competition Systemically Share Insights 15.
  • 22. Fail-Quick Mindset Growth Mindset Design Thinking Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 16. EXPERIMENTATION TA L E N T S T R U C T U R E E N A B L E R S Separated Core & Experimental Businesses Network Structure Local Team Structure Avenues to Voice & Assess Ideas Differentiated HR Practices
  • 23. Courage Comfortable with Ambiguity & Change Enterprise Thinker Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 17. EMBRACING CHANGE TA L E N T S T R U C T U R E E N A B L E R S Cross- Pollination Change Teams Nimble Structures & Resources Standardized Approaches Talent Change Preparation
  • 24. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 05.How do you measure agility? 01. What is organizational agility? 02. Where is agility needed? 03. What types of agility exist? 04. How do you embed agility? 05. How do you measure agility? 06. Conclusion
  • 25. Cornell University ILR School 18. Center for Advanced Human Resource Studies (CAHRS) Organizational Measures Business Measures Proxy Metrics
  • 26. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) Measuring Agility: A Case Study Industry: •  Medical Device Manufacturer Situation: •  Customer consolidation •  Federal regulations •  Product commoditization Key Question: •  How do you measure whether your organization is agile enough to respond? 19.
  • 27. Cornell University ILR School 20. Center for Advanced Human Resource Studies (CAHRS) Organizational Measurements: Strategic Alignment External Focus Experimentation Embracing Change Organizational & Team Effectiveness X Organizational Design X X Cross-Pollination X X Change Management X Talent Capabilities X X X Selecting Proxy Metrics
  • 28. Cornell University ILR School 21. Center for Advanced Human Resource Studies (CAHRS) Business Measurements: Selecting Proxy Metrics Strategic Alignment External Focus Experimentation Embracing Change Customer X X X Market Share X X X Innovation X X Labor Cost X Overall Business Success X X X X
  • 29. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 06.Conclusion 01. What is organizational agility? 02. Where is agility needed? 03. What types of agility exist? 04. How do you embed agility? 05. How do you measure agility? 06. Conclusion
  • 30. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) 22.
  • 31. Cornell University ILR School Thank you. Q&A Center for Advanced Human Resource Studies (CAHRS)
  • 32. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) Academic Perspective on Agility Highly agile executives have 25% higher profit margins. Sources: (1) Korn Ferry, “Developing Learning Agility” (2) MIT, (3) McKinsey Organizational Health Index Executives with high levels of learning agility are 5X more likely to be highly engaged. +37% +30% Faster Revenue Growth. Higher Profits. Agile organizations have: (vs. non-agile firms) 2x more likely to outperform peers on margin, book value & income growth.
  • 33. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) STRATEGIC ALIGNMENT Understanding the Business Case for Agility •  Burning platform issue •  Building optionality into your strategic agenda Inspiring Vision, Mission & Culture •  Consistent communication of a factually based and emotionally inspiring business case •  Broad goals that encompass strategic optionality •  Company-wide behaviors, competencies & values that promote agility Leadership Competencies & Unity •  Clear alignment among ELTs •  Essential leadership competencies include the ability to inspire, overcome risk aversion, communicate effectively, offer support and cover, empower local decision- making & drive change
  • 34. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) INFRASTRUCTURE Global HR Infrastructure •  HR Technology •  HRIS, technology-enabled performance management, engagement survey data, real-time talent database, & proactive org. effectiveness •  HR Processes •  Strategic workforce planning, standardized performance management, & proactive competency assessment •  HR Operating Model Structure •  Shared resources with regional flexibility Communication & Information Sharing •  Knowledge management •  Customer and market insights •  General communication technologies  
  • 35. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) EXTERNAL FOCUS TA L E N T S T R U C T U R E E N A B L E R S Maximize External Touchpoints •  Co-locate employees with customers •  Dedicated insights-driven strategy team External Partnerships •  Outsourcing •  Industry collaborations •  Thought leaders Empower Local Teams •  Defer decision making to local leadership •  Utilization of regional operating models Capture Customer Voice •  Establish customer intimacy to understand needs/goals •  Pilots and iterations incorporating customer feedback Anticipate Unorthodox Competition •  Closely monitor emerging competitors in adjacent industries, technologies and markets Systemically Share Insights •  Advisory council to the CEO •  Leadership conferences •  Knowledge-share technology and platforms New Capabilities •  Future focus •  Analytical •  Diverse perspectives
  • 36. New Capabilities •  Design thinking principles •  Fail-quick mindset •  Growth mindset Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) EXPERIMENTATION TA L E N T S T R U C T U R E E N A B L E R S Separating Core & Experimental Businesses •  Silo new businesses to allow for unique culture and way of working •  Differentiation in HR systems •  Use as talent exporter to service macro-level agility Networking Structure •  Reconfigurable, on-demand teams •  Leader support for short- term, project-based assignments Local Team Structure •  Using sprint, scrum and pilot teams that focus on iterative design •  Pushing down decision making authority for real-time evaluation of ideas and action Avenues for Voicing & Assessing Ideas •  Formal – Summits, innovation councils, Shark Tanks •  Informal – 3D printers, crowd sourcing, CS cards Differentiated HR Practices •  Performance Management/ Goal Setting (Broad goals, short-term goals at end of sprint, frequent 360 feedback) •  Training (Innovation Champions, scrum leadership training, etc.) •  Compensation tied to strategic goals & reward experimentation
  • 37. New Capabilities •  Courage •  Comfortable with ambiguity & change •  Enterprise thinker Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) EMBRACING CHANGE TA L E N T S T R U C T U R E E N A B L E R S Cross-Pollination •  Leverage network structures to flow ideas, culture, change capability throughout the organization •  Deliberate talent movement across core and experimental businesses Change Teams •  Assessment of change capability and status (pre-, during and post-) •  SMEs, SWOT teams, Change champions •  Leverage toolkits and share information Nimble Structures & Resources •  Flex resources as priorities evolve •  Flatter – can make own decisions and move quickly Standardized Approaches •  Remove non-value work •  Common operating principles •  Change management processes (Data driven inspiring message, learning maps, cascading goal setting) •  M&A processes Talent Change Preparation •  Cross-training promoting enterprise thinking •  Leadership simulations •  Rapid reskilling •  Contingency planning •  Upskilling HR to support
  • 38. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) Organizational Measurements: Strategic Alignment External Focus Experimentation Embracing Change Organizational & Team Effectiveness •  Understanding of role, strategy, vision •  Understanding of work processes X Organizational Design •  Span of control •  Layers in the organization •  Decision making authority X X Cross-Pollination •  Job movement •  Turnover/Retention •  Net promoter score (EE promoting company) X X Change Management •  Change capability assessment •  Change readiness •  Change adoption X Talent Capabilities •  Skill usage gaps/work climate gaps •  Ready now leaders •  Succession pipelines based on new capabilities X X X Selecting Proxy Metrics
  • 39. Cornell University ILR School Center for Advanced Human Resource Studies (CAHRS) Business Measurements: Selecting Proxy Metrics Strategic Alignment External Focus Experimentation Embracing Change Customer •  Account maintenance •  Account risk level pre/post change •  Speed of customer acquisition X X X Market Share •  Market share in recently entered region/business line/product offering X X X Innovation •  % of sales from NPIs •  Speed to market •  Usage rates of new products X X Labor Cost •  FTE/non-FTE ratios •  Variable and non-variable pay/cost X Other •  Revenue growth •  Market share •  Profitability, etc. X X X X