Post on 26-Jul-2018
WelcomeWelcomeWelcomeWelcome
Center for Effective OrganizationsUniversity of Southern California
telephone: 213-740-9814
© 2010 University of Southern California
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© 2010 University of Southern California
• Yes a PDF of the slide deck will be• Yes, a PDF of the slide deck will be available online after the webinar.
• An audio file will also be available.
• We’ll send an email to attendeesWe ll send an email to attendees with the URL for these.
© 2010 University of Southern California
Upcoming CEO Seminars and WorkshopsStrategic Organization Design WorkshopNovember 2-5, 2010Bethesda, Maryland
Create High-Performing Teams with P f F d R d St t i
Talent Management & Leadership DevelopmentMarch 29-31, 2011Los Angeles
Beyond Change ManagementPerformance-Focused Rewards StrategiesNovember 10-December 14, 2010Online Program
Data Coaching WorkshopDecember 8-10, 2010
Beyond Change ManagementApril 5-7, 2011Los Angeles
Strategic Organization Design WorkshopJune 14-17, 2011December 8 10, 2010
Los Angeles
Strategic Partnership with ImpactJanuary 26-28, 2011Los Angeles
June 14 17, 2011Los Angeles
Data Coaching WorkshopSeptember 21-23, 2011Los Angelesg
Advanced Topics in Organization Design WorkshopMarch 1-4, 2011Los Angeles
Strategic Partnership with ImpactOctober 19-21, 2011Los Angeles
Strategic Organization Design Workshopg
Targeted Analytics: Improving Talent DecisionsMarch 9-11, 2011 (two days total: start at 1 pm on March 9, end at noon on March 11)D ll /Pl T
November 1-4, 2011Atlanta, Georgia
© 2010 University of Southern California
Dallas/Plano, Texas
Certificate in Organization Design
More Information at http://ceo.usc.edu/programs
Upcoming seminars include:
Strategic Organization Design WorkshopStrategic Organization Design Workshop• November 2-5, 2010 (Bethesda, Maryland)• June 14-17, 2011 (Los Angeles)• November 1-4, 2011 (Atlanta, Georgia)
Advanced Topics in Organization Design • March 1-4, 2011 (Los Angeles)
Also of interest:
Beyond Change Management
© 2010 University of Southern California
y g g• April 5-7, 2011 (Los Angeles)
St ateg fo m lation and
Some of Chris’ focuses
• Strategy formulation and implementation
• Organization design• Longitudinal evaluation of
strategic change• Sustainability and how to
d l ll bDr. Christopher G. Worley
design complex collaborations to foster it
CEO Research Scientist
© 2010 University of Southern California
• Widely known for organization
Some of Sue’s focuses
design and effectiveness and large-scale change research
• The design of knowledge-based firms
• Knowledge creating systems• Sustainability and how to
Dr. Susan A. MohrmanCEO Senior Research Scientist y
design complex collaborations to foster it
• Examination of the research
CEO Senior Research Scientist
process itself• How to create
academic/company
© 2010 University of Southern California
/ p ypartnerships to yield useful knowledge
Agility and Strategic LeadershipAgility and Strategic Leadership
Emerging Results g gand
Organization Implicationsg p
Christopher G. Worley, Ph.D.Research Scientistcworley@marshall usc edu
© 2010 University of Southern California
cworley@marshall.usc.edu
Overview• USC/CEO is interested in the question:
Does agility matter?
• The rhetoric around agility is clear – in a world that is changing faster and faster, organizations must be
i bl d fl ibl bl t t k d t fnimble and flexible, able to take advantage of opportunities that present themselves
• But such rhetoric flies in the face of business models that link performance with scale, efficiency, control over processes, and being “lean and mean.”
© 2010 University of Southern California
What is Agility?Agility is an evolving and emerging capability, a leadership challenge
that is never finished, only approached over time, but which yields consistently high levels of sustainable effectiveness.
Planned Change
AgilityS d
AdaptabilityO i tiChange
• Organization DevelopmentT iti
• Sense and Respond
• Reconfigure and Redesign
• Organization evolution
• Absorptive capacity• Transition
Management• Change Management
and Redesign• Complexity
capacity• Population ecology
Management
© 2010 University of Southern California
Patterns of Performance
0.2000
Consistent high performer
0 1000
0.1500
Consistent high performer
0.0500
0.1000
ROA
Ind Avg Large Food Cos
SARA LEE CORP
TYSON FOODS INC
SO O
0.0000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
CAMPBELL SOUP CO
‐0.1000
‐0.0500
Chronic low performerClassic “boom-bust”
© 2010 University of Southern California
Agile organizations have a set of unique characteristics in major dimensions thatcharacteristics in major dimensions that create a reinforcing system
STRATEGY & PURPOSE
ORGANIZATIONDESIGN
DYNAMICCAPABILITIES
• ADAPTABILITY• SUSTAINED PERFORMANCE
LEADERSHIP& CULTURE
PERFORMANCE
& CULTURE
© 2010 University of Southern California
Research Data• Survey data from 42 firms and business units
– 14 scales on strategy, organization design, leadership and capabilitiesleadership and capabilities
– 74.8 surveys/firm (range = 6 to 1098)– Sample include the top management team, aSample include the top management team, a
sample of firm managers, or functional samples• Performance data from 31 public firms
– ROA over 29 years (mean = 22.5 years; mode = 29 years)“Consistent high performance” defined as– Consistent high performance defined as above average for at least 80% of the years available
© 2010 University of Southern California
Consistently above average performers scored significantly higher than inconsistent performerssignificantly higher than inconsistent performers
Agility Dimension t df pStrong shared purpose 2.71 12 0.02Develops robust strategies 2.70 28 0.01Strong future focus 1.23 28 0.23gChange‐friendly identity 2.30 29 0.03Structural surface area 3.12 28 0.00Information is transparent 1 08 29 0 29Information is transparent 1.08 29 0.29Flexible resources 2.05 29 0.05Development orientation 2.30 29 0.03Fl ibl d 2 11 29 0 04Flexible rewards 2.11 29 0.04Top/Bottom communication 0.36 12 0.73Shared leadership 2.68 29 0.01
© 2010 University of Southern California
Encourages innovation 1.85 29 0.07Change capability 2.61 28 0.01Learning capability 2.57 28 0.02
Not at all A littleTo some extent
To a moderate extent
To a large extent
Agility Dimension
Shared Purpose
Robust Strategies
1 2 3 4 5
Strong Future Focus
Flexible Structure
Transparent Infop
Top/Bottom Aligned Communication
Flexible Resources
Talent Development
Flexible Rewards
Shared LeadershipShared Leadership
Change‐Friendly Identity
Change Capability Legend:Consistently High Performer
© 2010 University of Southern California
Learning Capability
Encourages Innovation
Inconsistent Performer
Not at all A littleTo some extent
To a moderate extent
To a large extent
Agile organizations have a different way of
Agility Dimension
Shared Purpose
Robust Strategies
1 2 3 4 5thinking about strategy
Strong Future Focus
Flexible Structure
Transparent Infop
Top/Bottom Aligned Communication
Flexible Resources
Talent Development
Flexible Rewards
Shared LeadershipShared Leadership
Change‐Friendly Identity
Change Capability Legend:Consistently High Performer
© 2010 University of Southern California
Learning Capability
Encourages Innovation
Inconsistent Performer
Not at all A littleTo some extent
To a moderate extent
To a large extent
Agility Dimension
Shared Purpose
Robust Strategies
1 2 3 4 5
Agile organizations have maximum
Strong Future Focus
Flexible Structure
Transparent Info
have maximum surface area structures
p
Top/Bottom Aligned Communication
Flexible Resources
Talent Development
Flexible Rewards
Shared LeadershipShared Leadership
Change‐Friendly Identity
Change Capability Legend:Consistently High Performer
© 2010 University of Southern California
Learning Capability
Encourages Innovation
Inconsistent Performer
Not at all A littleTo some extent
To a moderate extent
To a large extent
Agility Dimension
Shared Purpose
Robust Strategies
1 2 3 4 5
Strong Future Focus
Flexible Structure
Transparent Infop
Top/Bottom Aligned Communication
Flexible Resources
Leadership is an organization capacity with roots and support in the culture and
Talent Development
Flexible Rewards
Shared Leadership
in the culture and reputation
Shared Leadership
Change‐Friendly Identity
Change Capability Legend:Consistently High Performer
What creates value in agile organizations is the ability to change
© 2010 University of Southern California
Learning Capability
Encourages Innovation
Inconsistent Performerand learn
Not at all A littleTo some extent
To a moderate extent
To a large extent
Agility Dimension
Shared Purpose
Robust Strategies
1 2 3 4 5
Strong Future Focus
Flexible Structure
Transparent Info Scores inp
Top/Bottom Aligned Communication
Flexible Resources
Leadership is an organization capacity with roots and support in the culture and
Scores, in general, are pretty low.
There’s plenty Talent Development
Flexible Rewards
Shared Leadership
in the culture and reputation
of room for improvement.
Shared Leadership
Change‐Friendly Identity
Change Capability Legend:Consistently High Performer
What creates value in agile organizations is the ability to change
© 2010 University of Southern California
Learning Capability
Encourages Innovation
Inconsistent Performerand learn
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Best Practice Examples
Agility Dimension
Strong Future FocusStrong Future Focus
Robust Strategy
Maximum Surface Area St tStructure
Flexible Resource Allocation Process
Flexible Rewards
Flexible HR Practices
Change‐friendly IdentityChange‐friendly Identity
Shared Leadership/Power
Change/Learning
© 2010 University of Southern California
Capability
Conclusions• Any organization that survives over a long period of time
has some agile characteristics– Agility can be measured– Agility is not the domain of service, high tech firms -
agile organizations can exist in any industry– Agility matters – Organizations with consistently above
l l f f i ifi l hi haverage levels of performance score significantly higher on agility dimensions
– There’s lots of room for improvement
• Future Research– How best to make the transformation to agility?– Can agility and sustainability be complimentary?Can agility and sustainability be complimentary?– What is HR’s role in agility?
© 2010 University of Southern California
If agility is so cool, why haven’t more organizations joined in?organizations joined in?
• Organization inertia is real – Alignment is the enemy of change. Traditional structures are built to be self-reinforcing. CEO t d k t t ti f t l f• CEO turnover and market expectations for quarterly performance
• Becoming agile requires systemic change – it’s not just change in strategy or structure or R&D or workforce engagement - it’s all of those
• Becoming agile is counter-intuitive – it challenges many of the taken-for-g g g ygranted assumptions we have about managing:
– Growth is stability in change’s clothing – growth invokes a “patina” of change, covers a multitude of sins, and rarely changes anything (other than size)
– To build a shared leadership capacity, change may have to be driven from the topp p y g y p– Slack is not necessarily a bad thing – nor is efficiency necessarily a good thing– Strategy rarely changes and changes all the time– Achieving resource flexibility may mean abandoning investments in traditional
HR practices (e.g., job descriptions, rewards for seniority/promotion) that p ( g , j p , y p )support stability and risk avoidance
– Embracing uncertainty and change as sources of performance feels wrong; reducing uncertainty and increasing reliability and predictability feels right.
© 2010 University of Southern California
Current Agility Profile(Compared to Current World-class Benchmark)(Compared to Current World-class Benchmark)
Agility Factor SAgility Factor S
Change capability
STRATEGY & PURPOSE
Robust Strategy
Shared purpose
Future focus
Change capability
Learning capability
Innovation capability
ORGANIZATIONDESIGN
CAPABILITIES
• Orchestration• Learning
• ADAPTABILITY• SUSTAINED
PERFORMANCE
Agility Factor S
Structural flexibility
LEADERSHIP& CULTURE
• Learning• Innovation
PERFORMANCEResource flexibility
HR flexibility
Information transparencyiliDevelopment orientation Agility Factor S
Shared leadership
Shared power
Change friendly identity
© 2010 University of Southern California
Change‐friendly identity