Agile organizations look across the multiple dimensions of organization structure, processes, talent, leadership, and culture and embed flexibility in each. Through a system of HR practices and an integrated foundation of management practices, agile organizations are able to consistently respond to environmental trends and disruptions, move closer to the speed of ideas, and seize market opportunities. These collective capabilities drive sustained organizational performance. In this study, CAHRS Research Assistants Nicholas Born, Kasey Kovack and Matt Olson discuss the results of their research on organizational and HR agility. They share specific examples as they relate to: • Key catalysts for organizational agility • Obstacles to agility and knowledge sharing • HR’s role in driving the right people outcomes to support the organizational culture, human capital, and knowledge exchange opportunities that support organizational agility • What specific talent management and HR practices drive organizational agility • Opportunities to assess impact of 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