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Does agility matter?

(and what can OD do about it?). Does agility matter?. Chris Worley Pepperdine University University of Southern California. Conduct a quick interview. Find a partner to interview and ask: How do you define organization agility? What makes an organization agile?

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Does agility matter?

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  1. (and what can OD do about it?) Does agility matter? Chris Worley Pepperdine University University of Southern California

  2. Conduct a quick interview • Find a partner to interview and ask: • How do you define organization agility? What makes an organization agile? • What’s the most agile organization you’ve ever heard of or worked for? • What did the organization do – its strategies, structures, systems, processes, capabilities, and leadership – that lead you to this conclusion?

  3. Do a quick analysis of the data • Find three other pairs and combine your list of agile features. • Output: a combined list of the features that characterize the most agile organizations you’ve ever heard of?

  4. Agile organizations have a set of unique characteristics in major dimensions that create a reinforcing system STRATEGY & PURPOSE • CAPABILITIES • Orchestration • Learning • Innovation • Adaptability • Sustained Performance ORGANIZATIONDESIGN LEADERSHIP& CULTURE

  5. The B2∆ Model • As an OD person, I am genuinely interested in why planned change goes well AND so wrong so often • We need better models, tools, and processes of organization change and development • The concept of “stability” is a pervasive assumption in principles of organization design and buried deep in the managerial psyche. Most organizations are “anti-change.”

  6. Patterns of Performance

  7. Patterns of Performance

  8. The Stability Mindset What do you think of the driver?

  9. Free Your Mind http://www.youtube.com/watch?v=k9Nh0Fvoe9k&feature=related

  10. A sequence of organization development

  11. Why is a Strong Future Focus Important? Approximately half of observers fail to notice an ongoing and highly salient but unexpected event while engaged in a monitoring task. Source: Simons & Chabris, 1999

  12. While counting passes for the White team (“easy” condition) … only 50% noticed the gorilla They pushed the results a bit…

  13. What can OD practitioners do? • Facilitate a change in the organization’s conversation • For every look back, take two looks forward • Create opportunities to successfully “play” with the future

  14. Balancing Innovation and Efficiency Robust Strategic Intent A Series of Momentary Advantages Coffee experiences Music experiences Create Great Experiences Technical experiences Revenue / Store Social experiences Time

  15. What can OD practitioners do? • Can the current strategy provide focus today AND opportunities for the future • Diagnose the current decision making process • Where is discipline lacking? • Are decision rights clear? • Find the right balance of centralization and decentralization

  16. Structuring Organizations • Structures focus attention and resources on the competencies and capabilities required to create and deliver value • B2change structures have a strong external focus • Structures should have the “maximum surface area” • How “far away” is an employee from direct contact with the environment? • To what extent is the organization structured around the customer (even internal customers)? • B2change structures eliminate jobs and hierarchical boss-subordinate relationships • Networks, front-back, and process-based structures • Non-core processes are outsourced

  17. NPD Team NPD Team Product Enhancement Shared Services Structure for “Maximum Surface Area” Back End Front End “Pulls” Product “Bundles” Products “Customizes” Products & Service “Provides” Services Product Generation Product Line 1 Team Customer Focused Team/Business Unit (Multiple Products) Product Line 2 Team Product Enhancement Customer Focused Team/Business Unit (Multiple Products) Manufacturing Services Product Line 2 Product Line 1 Cells Cells Cells Cells SM8F

  18. What can OD practitioners do? • Organization design is a “missing link” in HR’s capability repertoire • Move away from “job descriptions” to “person descriptions” (what can people do?) • Learn to manage accountabilities, not structures • Link work to environmental demands (integrate with “sensing process”)

  19. Identity expresses cultural understandings Identity mirrors the images of others IMAGE CULTURE IDENTITY Expressed identity leaves impressions on others Reflecting embeds identity in culture Creating a Change-friendly Identity Hatch and Schultz, 2002

  20. Built to Change Mantra… Everything’s new… except the philosophy

  21. What can OD practitioners do? • Facilitate a conversation between HR (voice of the culture) and Marketing, Sales, and Corporate Communications (voice of the brand) • Where do we see similarities and differences? • What do the differences imply in terms of our ability to deliver on our value proposition? • What do the similarities say in terms of our ability leverage change?

  22. Leadership Redefined? • What are the classic functions of management? • Planning • Organizing • Leading • Controlling • Since when did leadership get separated from management? • B2change organizations • Don’t need good leaders – they need good leaders who are also good managers • Move away from leadership defined in terms of individuals – especially senior managers • Bring balance to the 1990’s criticism that organization’s were over-managed and under-led • Define good leadership as a “team sport”

  23. Shared Leadership Advantages • Effectively replaces hierarchy • Reduces layers in structure • Moves power down into the organization • Builds a deep cadre of leadership talent • Supports more effective change management • Everyone knows the strategic intent and the direction of change • Information and communication flows more freely

  24. What can OD practitioners do? • Seriously explore the assumptions underlying your leadership develop programs • Do they support/reinforce beliefs in individuals as the key to success? • Implement cohort-based leadership development programs • How would you develop an internal MSOD program in your organization? • Revise reward system to include the development of others

  25. Creating an Agility Profile(Compared to World-class Benchmark) STRATEGY & PURPOSE • CAPABILITIES • Orchestration • Learning • Innovation • Adaptability • Sustained Performance ORGANIZATIONDESIGN LEADERSHIP& CULTURE

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