Center for Effective Organizations University of Southern California telephone: University of Southern California

Transcription

1 Welcome Center for Effective Organizations University of Southern California telephone:

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3 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 to attendees with the URL for these.

4 Upcoming CEO Seminars and Workshops Strategic Organization Design Workshop November 2-5, 2010 Bethesda, Maryland Create High-Performing Teams with Performance-Focused Rewards Strategiest November 10-December 14, 2010 Online Program Data Coaching Workshop December 8-10, 2010 Los Angeles Strategic Partnership with Impact January 26-28, 2011 Los Angeles Advanced Topics in Organization Design Workshop March 1-4, 2011 Los Angeles Targeted Analytics: Improving Talent Decisions March 9-11, 2011 (two days total: start at 1 pm on March 9, end at noon on March 11) Dallas/Plano, Texas Talent Management & Leadership Development March 29-31, 2011 Los Angeles Beyond Change Management April 5-7, 2011 Los Angeles Strategic Organization Design Workshop June 14-17, 17, 2011 Los Angeles Data Coaching Workshop September 21-23, 2011 Los Angeles Strategic Partnership with Impact October 19-21, 2011 Los Angeles Strategic Organization Design Workshop November 1-4, 2011 Atlanta, Georgia

5 Certificate in Organization Design More Information at Upcoming seminars include: Strategic 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 April 5-7, 2011 (Los Angeles)

6 Some of Chris focuses Dr. Christopher G. Worley CEO Research Scientist Strategy formulation and implementation Organization design Longitudinal evaluation of strategic change Sustainability and how to design complex collaborations to foster it

7 Some of Sue s focuses Dr. Susan A. Mohrman CEO Senior Research Scientist Widely known for organization design and effectiveness and large-scale change research The design of knowledge-based firms Knowledge creating systems Sustainability and how to design complex collaborations to foster it Examination of the research process itself How to create academic/company partnerships to yield useful knowledge

8 Agility and Strategic Leadership Emerging gresults and Organization Implications Christopher G. Worley, Ph.D. Research Scientist edu

9 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 nimble 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.

10 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 Organization Development Transition Management Change Management Agility Sense and Respond Reconfigure and Redesign Complexity Adaptability Organization evolution Absorptive capacity Population ecology

11 Patterns of Performance Consistent high performer ROA Ind Avg Large Food Cos SARA LEE CORP TYSON FOODS INC CAMPBELL SOUP CO Classic boom-bust Chronic low performer

12 Agile organizations have a set of unique characteristics in major dimensions that create a reinforcing system STRATEGY & PURPOSE ORGANIZATION DESIGN DYNAMIC CAPABILITIES ADAPTABILITY SUSTAINED PERFORMANCE LEADERSHIP & CULTURE

13 Research Data Survey data from 42 firms and business units 14 scales on strategy, organization design, leadership and capabilities 74.8 surveys/firm (range = 6 to 1098) Sample 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 above average for at least 80% of the years available

14 Consistently above average performers scored significantly higher than inconsistent performers Agility Dimension t df p Strong shared purpose Develops robust strategies Strong future focus Change friendly identity Structural surface area Information is transparent Flexible resources Development orientation Flexible rewards Top/Bottom communication Shared leadership Encourages innovation Change capability Learning capability

15 Agility Dimension Not at all A little To some extent To a moderate extent To a large extent Shared Purpose Robust Strategies Strong Future Focus Flexible Structure Transparent Info Top/Bottom Aligned Communication Flexible Resources Talent Development Flexible Rewards Shared Leadership Change Friendly Identity Change Capability Learning Capability Encourages Innovation Legend: Consistently High Performer Inconsistent Performer

16 Agile organizations have a different way of thinking about strategy Agility Dimension Shared Purpose Not at all A little To some extent To a moderate extent To a large extent Robust Strategies Strong Future Focus Flexible Structure Transparent Info Top/Bottom Aligned Communication Flexible Resources Talent Development Flexible Rewards Shared Leadership Change Friendly Identity Change Capability Learning Capability Encourages Innovation Legend: Consistently High Performer Inconsistent Performer

17 Agility Dimension Not at all A little To some extent To a moderate extent To a large extent Agile organizations have maximum surface area structures Shared Purpose Robust Strategies Strong Future Focus Flexible Structure Transparent Info Top/Bottom Aligned Communication Flexible Resources Talent Development Flexible Rewards Shared Leadership Change Friendly Identity Change Capability Learning Capability Encourages Innovation Legend: Consistently High Performer Inconsistent Performer

18 Agility Dimension Not at all A little To some extent To a moderate extent To a large extent Shared Purpose Robust Strategies Strong Future Focus Flexible Structure Leadership is an organization capacity with roots and support in the culture and reputation Transparent Info Top/Bottom Aligned Communication Flexible Resources Talent Development Flexible Rewards What creates value in agile organizations is the ability to change and learn Shared Leadership Change Friendly Identity Change Capability Learning Capability Encourages Innovation Legend: Consistently High Performer Inconsistent Performer

19 Agility Dimension Not at all A little To some extent To a moderate extent To a large extent Shared Purpose Robust Strategies Strong Future Focus Leadership is an organization capacity with roots and support in the culture and reputation Flexible Structure Transparent Info Top/Bottom Aligned Communication Flexible Resources Talent Development Flexible Rewards Scores, in general, are pretty low. There s plenty of room for improvement. What creates value in agile organizations is the ability to change and learn Shared Leadership Change Friendly Identity Change Capability Learning Capability Encourages Innovation Legend: Consistently High Performer Inconsistent Performer

20 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

21 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

22 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

23 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

24 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

25 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

26 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

27 Best Practice Examples Agility Dimension Strong Future Focus Robust Strategy Maximum Surface Area Structuret Flexible Resource Allocation Process Flexible Rewards Flexible HR Practices Change friendly Identity Shared Leadership/Power Change/Learning Capability

28 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 average levels l of performance score significantly ifi higher h 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? What is HR s role in agility?

29 If agility is so cool, why haven t more organizations joined in? Organization inertia is real Alignment is the enemy of change. Traditional structures are built to be self-reinforcing. CEO turnover and market expectations ti 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- granted 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 top 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 support stability and risk avoidance Embracing uncertainty and change as sources of performance feels wrong; reducing uncertainty and increasing reliability and predictability feels right.

30 Current Agility Profile (Compared to Current World-class Benchmark) Agility Factor Robust Strategy Shared purpose Future focus S STRATEGY & PURPOSE Agility Factor Change capability Learning capability Innovation capability S Agility Factor Structural flexibility Resource flexibility S ORGANIZATION DESIGN CAPABILITIES Orchestration Learning Innovation ADAPTABILITY SUSTAINED PERFORMANCE HR flexibility Information transparency Development orientation LEADERSHIP & CULTURE Agility Factor Shared leadership S Shared power Change friendly identity