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Organizational Agility:
Sustainable Competitive
Advantage in VUCA
Seta A. Wicaksana
Founder and CEO of Humanika Consulting
www.humanikaconsulting.com
Seta A. Wicaksana
0811 19 53 43
wicaksana@humanikaconsulting.com
• Business Psychologist
• Pendiri dan Direktur Humanika Consulting dan hipotest.com
• Dosen Tetap dan Peneliti di Fakultas Psikologi UP
• Pembina Yayasan Humanika Edukasi Indonesia
• Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI
• Penulis Buku: Sobat Way (2016), Industri dan Organisasi: Pendekatan Integratif
dalam menghadapi Perubahan (2020), Human Faktor Engineering: Integratif Desain
Manusia dan Lingkungan Kerja (2021), Psikologi Industri dan Organisasi (2021),
Psikologi Umum (2021), Manajemen Pengembangan Talenta (2021), PIODiagnostik:
Pengukuran Psikologi di Lingkungan Kerja (2021), Transformasi Digital: Perspektif
Organisasi, Talenta dan Budaya Organisasi (2021), Psikologi Pelayanan (2021) dan
Psikologi Konsumen (2021).
• Dosen Tidak Tetap di: Program Pasca Sarjana Ekonomi di Univ. Pancasila, STP
TRISAKTI, Fakultas Psikologi Universitas Mercu Buana, STIKOM IMA
• Certified of Assessor Talent Management
• Certified of Human Resources as a Business Partner
• Certified of Risk Professional
• Certified of HR Audit
• Ilmu Ekonomi dan Manajemen (MSDM) S3 Universitas Pancasila
• Fakultas Psikologi S1 dan S2 Universitas Indonesia
• Sekolah ikatan dinas Akademi Sandi Negara
2. WHY AGILE
5. STRATEGIC AGILITY
3. CHANGE AND LEARNING
AGENDA
6. AGILITY AS A CULTURE
7. ORGANIZATION AGILITY
8. AGILE LEADER AND MANAGEMENT
9. PERSONAL AGILITY
10. THE SIX DIMENSIONS OF THE ACE AGILITY INDEX
4. INNOVATION
1. LEADING IN VUCA WORLD
LEADING IN
VUCA WORLD
Building SCAs is Key in VUCA
Leading in VUCA World
“The art of war teaches us to rely not on the likelihood of
the enemy’s not coming, but on our own readiness to
receive him; not on the chance of his not attacking, but
rather on the fact that we have made our position
unassailable.”
- Sun Tzu
Globalization
and the “West
to East” shift
“Light-Speed”
Innovation
Cycles
Changing
Workforce
Demographics
Increasing
Speed of
EVERYTHING
• Most growth coming from emerging
economies …Competitors win on unfamiliar
battlegrounds
• Leadership qualities to win in domestic
markets are less-relevant in global markets
• Faster technology cycles …agile firms disrupt
markets faster than ever before
• Leaders in this environment must know how
to effectively manage uncertainty
• Generational shifts in workers, employers must redefine
work patters and employer value-propositions
• Cross-cultural, virtual, globally diverse collaboration
requires a different set of leadership capabilities
• Complexity and uncertainty increase as speed
accelerates.
• Constant, rapid-cycle change is the “new normal”
• Success will be defined by leaders who are able to
create “calm in the chaos” while embracing and leading
change
Sustainable Competitive
Advantages (SCA)
A firm has an SCA when it is able to generate more customer
value than competitive firms in its industry for the same
set of products and service categories and when these
other firms are unable to duplicate its effective strategy
A good SCA meets three criteria:
1. Customers care about what this SCA offers
2. The firm does it better than competitors, which
generates a relative advantage
3. The SCA must be hard to duplicate or substitute, even
with significant resources
Thus, being first to market with a new idea is not sufficient to
create a barrier to competitors, especially if deep-pocketed
market leaders recognize the threat of an innovative new
entrant and devote their resources to protect their sales to
existing customers
To make an SCA hard to copy, firms often turn to key market-
based sources of SCAs
Holistic Transformation Program
The Satya and the leadership team launched a holistic transformation
program I won't go into all the details, nor would it be appropriate for me to
do so... Clearly a holistic program covering all major aspects of the business:
• Culture: While not using exactly these words, it is clear that Satya believed
the Transformation of Microsoft would not deliver and sustain
breakthrough performance without a transformation of the culture... I
mentioned the MEME with people shooting at each other.. inward,
competitive, and also one of hubris – we know best.... Satya took this
on. Together with Kathleen Hogan the CHRO... 4 attributes and later
added a 5th: Growth Mindset – not growth as in revenues but growth as in
an orientation to learning, the term coined by Stanford's Carol Dweck
• Strategy: Defined the biggest strategy issues, assigned C-suite leaders
against each – but made the entire leadership team accountable for solving
these. what to do with nokia?, what to do with X-box, transition from
Windows-centric to cloud-centric view, etc.
• Engineering: many organization changes plus a major push to move away
from waterfall Triad model – dev, test, program manage - to Agile
• Go to market: Massive transformation – ongoing today - Digitally enabled
B2B selling focused on integrated solutions
• Corporate Excellence: Really a cost-reduction effort. Initially resisted cost
reduction but came to see significant opportunity
• People: Under new CHRO launched a People strategy and HR
transformation program
• …. All supported by change management to enable leaders, engage the
organization, and track progress
• We have entered a new era I have dubbed the era of 'Always-
On' Transformation. For leaders and employees alike, it's less a
marathon and more a triathlon; no sooner does on leg finish
than another is under way, giving participants no chance to
catch their breath before giving their all once again.
• When transformation was viewed as a one-off, short-term
program, companies tended to be very short sighted and
people were often treated as a means to an end or, worse, as
collateral damage. But successful transformation today's
environment of constant change depends on people who are
embracing new tools, new methodologies, new ways of
working and who are engaged and motivated to go above and
beyond.
• But it not just about successful transformations. The stakes are
much bigger. People spend the majority of their waking hours
involved in organizations. Leaders of organizations, therefore,
have an enormous opportunity to have a positive impact on
the lives of people. We owe it to the people who work for us
and to society more broadly to find a better approach...
Why Agile: Reported Results
Why Agile: Reported Results
Why Agile: Reported Results
Why Agile: Reported Results
Why Agile: Reported Results
Why Agile: Where to look for agile opportunities
Customer preferences &
solution options change
frequently
Close stakeholder
collaboration and rapid
feedback are feasible
Problems are complex,
solutions are unknown and
scope isn’t clearly defined
Incremental product
developments have value
and customers can use
them
Agility enhances execution in opportunities that demonstrate:
Modularity of Work
Market Environment
Remember customer internal or external value is targeted
Why Agile: People
• Agile methodologies focus on developing collaborative ways to
manage organizational knowledge.
• Staying disciplined in agile approaches to knowledge management
protects people and creates an organization that operates in a
singular direction. An entire organization working in this fashion
will change peoples lives.
• Well built agile teams and well executed agile techniques create a
complex feeling of togetherness and commitment among all
involved. In the generations past this was described as Ba.
• Ba is the emotional inspiration of what I try to create with agile
teams: the hive mind. I personally became addicted to this feeling
working in high performing teams. I became an agile coach to
teach others how to achieve this feeling of Ba as rapid as
possible.
The Essence of Agility
Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
Focus
Step back
Gain a broader, deeper view
Re-engage, take action
The Agile Manifesto
is centered on four values:
• Interaction and individuals are more
important than standard procedures
and tools.
• Delivering a working product is more
important than extensive
documentation.
• Fostering more customer
collaboration over relying mainly on
contract negotiations.
• Being open to changes instead of
needlessly clinging to your initial
project plan.
Applying these values or principles on
an organizational level provides an
indication of how an Agile Organization
is going to look.
“ Being agile means constantly being adaptive to
change. It constantly raises the question what we can
do better in order to succeed.
- Ralph Kienzler, Head of „Group Accounting“, Landesbank Baden Württemberg
1. Focus on the user and all else will follow.
2. It’s best to do one thing really, really well.
3. Fast is be6er than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer.
6. You can make money without doing evil.
7. There’s always more informaLon out there.
8. The need for informaLon crosses all borders.
9. You can be serious without a suit.
10. Great just isn’t good enough.
Source: h6ps://www.google.com/about/company/philosophy/
It is change, continuing change,
inevitable change, that is the
dominant fact in society today. No
sensible decision can be made any
longer without taking into account not
only the world as it is, but the world
as it will be.
— Isaac Asimov
Change and
Learning in Agility
• Change is the catalyst for agility. Without change throwing
obstacles in our path, there’s no need to be nimble, light and
able to react quickly.
• At present, the pace of change feels relentless – new
technology has changed our working lives beyond recognition
and disrupted whole industries.
• Many of us like to think that change is rare - we feel like it
should be a one-off event, with a beginning and an end. The
reality is that change is a constant state - nothing stays the
same forever. If this seems daunting, agility is your friend.
• Knowing that you are agile - that you can react quickly and
accurately - makes change less intimidating.
• Agility is liberating and makes you stronger. With agility, the
things you can’t see over the horizon, the obstacle in your
path, the new discoveries, are sources of opportunity and
excitement, rather than things to fear.
Agility in Change
Four Things Can Make Change Easier On A
Psychological Level (Mckinsey):
In any moment of decision, the best thing you can do is the right
thing. The worst thing you can do is nothing.”
- Theodore Roosevelt
To make change stick, you need to
have a ‘story’ that rings true to you
about why you should change.
Purpose
Coming up with new goals and
rewards will help you maintain a
change over time.
Reinforcement and Reward
We can’t change instantly, it takes
time and practice. To change, you
need to absorb new information in
chunks, test it out, and integrate it
with your existing behaviour.
.
Time and Practice
Having role models around you,
particularly at work, can help
changes to stick, by providing
tangible proof that change is
possible.
Role Models
Source: Emily Lawson and
Colin Price, ‘The
psychology of change
management’, McKinsey
Quarterly,
http://nokia.ly/1guJceG
A Quick Comparison Between The Elements That Go Into A Process
Change Verses Those That Go Into A Cultural Change
The CEO’s Dilemma
• Talent gaps constrain business growth
• Talent is required to drive other business
imperatives
Learning Agility
Having both the ability and
willingness to learn from past
experiences and apply those
learnings to new and first-time
experiences successfully.
Fact-based predictor of continued
leadership growth and potential
Korn Ferry’s research
demonstrates that Learning
Agility is the strongest predictor of
job performance following a
promotion
© 2014 Korn Ferry’s research-based assessment of potential—Learning agility
“The ability to learn is a defining characteristic of
being human; the ability to continue learning is an
essential skill of leadership. When leaders lose that
ability, they inevitably falter. When any of us lose that
ability, we no longer grow.”
- Bennis and Thomas, Geeks and Geezers: How Era, Values and Defining Moments Shape Leaders
AGILE in EVERY STEP IN LEARNING
SELF-AWRENESS
•Actively seeks
feedback.
•Tend to be self-
reflective.
•Is candid to a fault
about self.
•Sensitive to their
impact on others.
•Know personal
strengths and
weaknesses.
•Take corrective
action based on
feedback
MENTAL AGILITY
•Are very curious.
•Get to the root
causes.
•Have a broad
perspective.
•Find parallels and
contrasts.
•Question
conventional
wisdom.
•Find solutions to
tough problems.
PEOPLE AGILITY
•Are open-minded.
•Understand others.
•Are politically agile.
•Can play many
roles.
•Are skilled
communicators.
•Enjoy helping others
succeed.
•Are comfortable
with diversity.
•Handle conflict
constructively.
CHANGE AGILITY
•Enjoy tinkering with
things.
•Strive for
continuous
improvement.
•Often introduce
new perspectives.
•Can take the heat
and pressure of
change.
•Understand impact
of change and how
to manage it.
RESULT from AGILITY
•Build high-
performing teams.
•Are very flexible and
adaptable.
•Perform well in first-
time situations.
•Have drive and
personal presence.
•Accomplish things
against the odds.
Paths to developing
learning agility— Key
experiences
• Launching a new service or product
• Standing up a new organization, business,
line of business or location
• Merging with or acquiring another organization
or business
• Closing down or divesting an organization,
business, line of business, or location
• Working as an expatriate
• Turning around an under performing
organization or business
• Dealing with a sudden, unexpected crisis
• Negotiating a large-scale critical deal, contract
or labor agreement
• Dealing with a significant, large-scale change
initiative
• Dealing with an inherited problem or challenge
Paths To Developing Learning Agility
Learning Agile Leaders
Experience Hardships…
• Serious business mistakes
• Missed promotion/being
fired/lousy jobs
• Personal trauma
• Problem subordinates and bad
bosses
• Unexpected critical/negative
feedback
…and Make Meaning from Those
Experiences
• Seek more feedback on
improvement
• Seek out “on the job” challenges
• Zig-zag careers – many “firsts”
and failures
• Study the
experiences…habitually
evaluate for meaning
(introspective not blaming)
INNOVATION
Innovation is anything, but
business as usual.
- Anonymous
Improvement vs. Innovation Mental Models
(Laderman, Institute for Healthcare Improvement, 2017)
Improvement
•Elimination,
remove existing
system faults.
Innovation
•Creation,
remake the
system.
Characteristics of Innovation
Organizations that demonstrate these characteristics
are more innovative:
• Divergent thinking
• Risk Taking
• Failure tolerance
• Agility & Flexibility
Divergent Thinking
• Essential to innovation
• Thinking that is different than the norm.
• Thought processes that don’t move towards a
single solution.
• Not zero’d in on any one thing. Considering
many options.
• Creative, open minded, process.
Ideas For Encouraging Risk-taking Behaviors
Introduce/Educate
Refrain
Complete
Communicate
Calculated, intentional risk taking and Willing to “pilot”
alternatives before rolling out more broadly.
Improving Agility & Flexibility
• Develop: strategies that reward
agility & flexibility
• Hire: employees able/willing to
change based on needs
• Anticipate: stay abreast of
market, environment and
changing landscape
• Create: teams that can
innovate if urgently needed
(critical market changes)
• Encourage: share vision and
empower teams
• Avoid: demotivators and
overconfidence
STRATEGIC
AGILITY
What is Strategic Agility?
Cooperating to
enhance
competitiveness
Organizing to
master change
and uncertainty
Enriching the
customer
Leveraging the
impact of people
and information
Agility definition – Four
strategic dimensions of agile
competition (Goldman et al.
1995)
Why is strategic agility important?
Strategic Drivers Of Change Create A Need
For Strategic Agility
Strategic Agility Along Organizational
Dimensions
Agility as
A Culture
Changing a culture: Creating Strawberry Jam
Culture – Ecosystem - Habit
PROCESS & CULTURE INTERDEPENDENCE
• Organizational Agility = Process Agility x Cultural Agility
• Process Agility represents the suite of processes by which
the organization technically conducts its work, and the
efficiency with which it conducts them.
• Cultural Agility represents the suite of formal and informal
methods by which the organization socially governs the
conduct of its work, and the effectiveness with which it
governs them.
• The multiplication sign reminds us:
• Process Agility and Cultural Agility are interdependent.
• Anything times zero is zero.
The Culture:
Organizational
Results
• Making Agile Cultures Stick
• Adopt a management style that can promote the new mindset
• Executives must recognize at the outset that production re-dev
elopment (transformation) seldom proceeds in a linear and stat
ic manner. It involves an iterative and dynamic process of trial
and error. To manage such a process, companies must mainta
in a highly adaptive style.
• A different kind of learning is required
• Nonexperts undertake production re-development (transformat
ion). They are encouraged to acquire the necessary knowledg
e and skills on the job.
• Management should help seed but not necessarily help create
a vision for each Agile Team
What outcomes are we visualizing?
A vision statement is a vivid idealized description of a desired outcome that inspires, energizes
and helps to create a mental picture of your target
The Agile organization needs a clear unifying goal
Leadership is responsible to seed focus and direction for the teams
The teams will create and articulate the opportunity vision back to the customer
The Culture: Creating an Organizational Vision
The Culture: One Team’s Vision
A transformation team’s vision example
Vision for the Agile Transformation Team:
• Create an environment in which we challenge all elements of the status quo in order to bring competitive high-
quality products to market substantially faster & provide timely support existing products.
We Wills:
• Roll Agile methods to the entire organization
• Ensure the people of the team have the resources necessary to be successful
• Lead by example and share our experiences with the greater Organization
• Focus on cultural evolution to deeply embed Agile as the preferred approach to project work
• Foster an environment of collaboration across our business unit and its customer base
The Culture: Values
• Individual Interactions
• Demonstrable Results
• Customer Collaboration
• Acceptance of Change
Cultural Alignment: The Key To
Sustainable Transformations
• The sum-total of all the five
elements presented in the
previous section (Leadership,
Strategy, Structure, Process and
People) creates the culture of the
organization and The culture
keeps these five elements in
alignment and harmony.
• Aligned cultures are the most
critical differentiating factor for
high performing organizations.
Whether the culture is command
and control or collaborative does.
• Not matter as much as whether
all the elements in the
organization are aligned and
consistent with the culture.
CULTURE IS THE KEY
• Process (re)engineering is a discipline that is extensively
researched, broadly documented and taught, and generally well
understood.
• Meanwhile, “culture” is often viewed as that touchy-feely fluff that
is best left to HR or OD.
• Leaders are responsible for their whole organization.
• Work in harmony with the culture and what is possible becomes
doable.
• Work in opposition with the culture and what is possible becomes
doomed.
• Culture always wins.
• In fact, culture is an organization’s “secret sauce”:
• Culture is the key to enduring organizational agility.
• Culture is the key to enduring organizational performance.
• Culture is the key to enduring competitive advantage.
Culture Curve
Culture and Challenge to Agility
Culture and Ability
• An organization’s culture is the difference between them
becoming their customers’ vendor of preference (i.e., a
partner); or a vendor of force, or an ex-vendor.
• An organization’s ability to obscure their internal disputes
and dysfunction from their customers and vendors is
disappearing— with social media it is approaching zero.
• Have you ever been to another couple’s home and while
they were cordial with you, it was clear they were having a
dispute?
• You weren’t too unhappy to leave. Same for your customers
and vendors.
Culture is …
Your culture is the key to successfully
(re)engineering a process, or implementing a
software package, or innovating, or launching a
product, or rising to a challenge, or responding
to a market surprise, or dealing with a crisis, or…
• Your culture is the key to your
organization’s agility—it’s capacity and
capability to sense and respond; to adapt,
improvise and overcome.
• Your culture is the key to your
organization’s competitive advantage.
• Your culture is the key to your
organization’s relevance.
Organizational agility
Organizational
Management approaches have evolved
substantially toward a bigger role for individuals
in decision making and work organization
The “living
organism”
organization is
able to cope
with today’s
rapidly changing
world
Drivers for
organisational
agility
Drivers for
organisational agility
• Size matters: Smaller organisations demonstrate
significantly higher levels of agility than their bigger
competitors; also, if we look at the group of highly agile
organisations, the majority of them are small (51%),
followed by medium (30%) and large organisations (19%).
• Market leaders are more agile: The ACE Agility Index also
shows an important correlation with an organisation's
market position compared to industry peers/similar
organisations; market leaders/excellent performers all
demonstrate higher levels of agility.
• Implementation is key: Organisations that are more able
to implement the following activities are also found to be
more agile.
Agility
rethinks
organization
Becoming
more flexible:
overcoming
obstacles
Organizational
“Agility is a company’s ability to sense and respond
to change adequately and in due time. “
Please refer to our Study „Agility & Congruency: The
success formula of healthy Operating Models”
Becoming an Agile Organization
• Increased organizational agility is
the goal of any organization that
wants to overcome agile delivery
challenges and better respond to
critical opportunities
• The effectiveness with which this
is accomplished is a function of
your capacity for leadership agility
What is organizational agility?
The ability to respond to market conditions and environmental changes.
Does this
structure
promote the
agility of your
organization?
Is agile in use and are there any plans for a further
transformation towards an Agile Organization?
Hierarchical structures guarantee stability + predictability
✓ Knowledge trapped in silo’s
✓ Poor collaboration
✓ Rigid performance management systems
✓ One size fits all
✓ Employees are treated like children
that have to be punished and rewarded
✓ Paternalistic leadership
What will the
organization
of the future
look like?
The presence of
networked
structures is an
important part of
the agile, future
proof organization.
“Strategic and networked
relationships fuel modern
organizations.”
“Individuals who maintain
strong, collaborative networks
tend to be productive high performers.”
Agility
Spectrum
Generic
Value Chain
Agile potential of
different
departments
“ Being agile is the art of
combining the virtues of
flexibility and stability.
Florian Rodeit, Head of
Finance Operations Center
Prague, Deutsche Börse AG
“
Agile
Transformation
Framework
“The successful
implementation of an Agile
Organization heavily depends
on the readiness of leaders to
empower staff, which is
practically stressed when it
comes to escalation requests.
Christian Mauerer, Body &
Security - R&D Operations,
Continental AG
Bilateral
Perspective of
Organizational
Agility
3 COMMON
CHARACTERISTICS
OF AGILE
ORGANIZATIONS:
ALIGNMENT
STRATEGIC ALIGNMENT
• Understanding the Business Case for
Agility
• Inspiring Vision, Mission & Culture
• Leadership Competencies & Unity
INFRASTRUCTURE
• Global HR Infrastructure
• Communication & Information
Sharing
EXTERNAL
FOCUS
EXPERIMENTATION
EMBRACING
CHANGE
Agile organizations
• Agile organizations encourage their employees to
be part of networks.
• These networks go beyond the boundaries of
• their business unit
• their own organization
• Agile organizations collaborate intensely with clients
and temporary workers
→ crowd sourcing / open innovation
→ diversified workforce
McKinsey’s
Definition of
Agile
SOURCE: McKinsey Organization Design Service Line
An agile organization has a highly productive operating model that fluidly
reconfigures towards opportunities that create value, while highly engaging
and empowering people
Agility
Dimensions
Ranked as
“Very
Important” by
Company Size
“Being agile is not really new, but with the new
focus on this there are more opportunities to
improve operations by constant innovation
-Andreas Beck, Head of Back Office Financial Markets, Landesbank Baden Württemberg“
Organizational
Agility
Definition
• Knowledgeable about how organizations work; gets things done both
through formal and informal channels; effectively maneuvers through
complex political situations.
Key Words: Organizational Awareness, Business Agility
Behavioral Indicator:
• 1. The ability to understand and use the power of relationships at the
organization or elsewhere to get things done.
• 2. Understands organizational culture and politics.
• 3. Predicting how actions and/or events will affect both staff in
general as well as specific groups inside the Organization.
• 4. Understands the overall climate and culture: Recognizes implicit
limits at the organization, what can and cannot be done at certain
times or in certain positions.
PROFICIENCY
LEVEL:
Organizational
Agility
Level I
• Understands the origin and reasoning behind key policies, practices, and procedures
• Understands the cultures of organizations, and acknowledges corporate politics as a reality
• Gets things done, both through formal channels and the informal network
• Relates well to and regularly interacts with both authority figures and peers
• Maneuvers smoothly through complex political situations
• Identifies where the barriers are and plans his or her approach accordingly
Level II
• Understands the origin and reasoning behind key policies, practices, and procedures, and diplomatically
communicates that to others
• Is cognizant of organizational culture and politics, and appropriately adjusts personal style to be effective
• Builds numerous and effective relationships through personal networks inside and outside the organization
• Advises others on how to deal with complex political situations
• Anticipates complex problems and watches for tell-tale indicators that warrant intervention
Level III
• Understands and appreciates the origins and reasoning behind key policies, practices, and procedures, and
is involved with their evolution
• Studies other organizational cultures and politics to glean insight and to gain fresh perspective of his or her
own organization
• Is a consummate networker who can initiate relationships within and between organizations that leverage
the strengths and capabilities of all parties
• Is actively sought after in order to provide guidance and assistance in dealing with complex political
situations
Agile Leader
and
Management
Levels of Leadership Agility
• 10% Catalyst
• 35% Achiever
• 45% Expert
• 10% Pre-Expert
Institutional
“Ceiling”
Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
Stages of Personal Development
Catalyst
Co-Creator
Synergist
Pre-Adult
Stages
Conformer
Expert
Achiever
Explorer
Enthusiast
Operator
Institutional “Ceiling”
Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
The Research
Shows that …
• In overall development, levels are not skipped
• Leaders retain capacities developed at previous
levels
• While developmental stage is relatively stable, a
leader’s level of agility can vary throughout the
day
• “Downshifting” to previous levels can be
intentional or unintentional
Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
Actions
Around
Leadership &
Management
“The ability to be
agile enough is the
gut issue in leading an
organization today.”
- James McNerney, CEO of Boeing
Personal Agility
Agility starts with you, and personal agility is
your ability to react to the world around you in
a timely and appropriate way.
Personal Agility
• Being more agile on a personal level has a number of advantages. It
leaves you better able to react to change, take advantage of
opportunities and protect yourself from threats. It can also make you
feel happier and more satisfied, because being agile is about taking
control of situations that might otherwise leave you feeling powerless
and stressed.
• In this section, we’re going to look at how to achieve this. We’ll cover:
• Emotional agility
• Habits
• Flexibility
• Relationship agility
• Resilience
Emotional agility
• At its core, emotional agility is about knowing yourself, and developing a greater level of
control over your feelings and reactions.
• With greater emotional agility you can maximise your confidence, turn negative emotions
into positive thoughts and access humility that you might not know you’re capable of.
Emotional agility isn’t just valuable in your personal life though; it’s one of the most
valuable business skills that you can possess.
• Harvard Business Review, Susan David and Christina Congleton outline a simple method for
evaluating your level of emotional agility:
• 1. Choose a situation in your working day that would normally challenge you.
• 2. Identify the thoughts that come into your head in that situation - for example ‘I’m
going to make a mistake’ or ‘I’m not being respected’.
• 3. Identify the associated feelings that come with those thoughts - for example ‘fear’
or ‘anger’.
• 4. Ask yourself how much you try to make that thought and the associated feelings
go away - a lot, or not all?
• 5. Ask yourself the extent to which you buy into and believe those thoughts and
feelings - a lot, or not at all?
Habits
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” - Aristotle
• Up to 40% of our actions are performed without conscious decision on our part -
they’re the result of habit (David Neal, Wendy Wood, Jeffrey Quinn, in ‘Habits - a
repeat performance’, Current Directions in Psychological Science.)
• Agility is all about being ready and willing to take an unexpected course of action. It’s
important to think about times when following your normal pattern has caused you
to miss out on an opportunity, and what habits you need to break (or at least be
more aware of) so that it doesn’t happen again.
• Charles Duhigg, author of The Power of Habit: Why We Do What We Do in Life And
Business, writes that habits are a loop made up of three steps:
• 1. The cue - The cue is a trigger that sparks the ‘habit loop’. It could be a
location, a time of day, an action, or a person or people, or a feeling.
• 2. The routine - This is the action that is triggered by your brain responding to
a cue.
• 3. The reward - The reward is the benefit you get from your routine.10
Flexibility
• Improving your emotional agility and changing your habits both rely on
developing flexibility in your behaviour
• In their book Flex: Do Something Different, Ben Fletcher and Karen Pine
suggest that we have three kinds of habit:
• 1. Habits of perception-How we make sense of the world.
• 2. Habits of attitude-Our biases and prejudices.
• 3. Habits of behaviour-The things we do.
• We go through many situations on autopilot, relying on these three kinds
of habit and past behaviour patterns to decide our course of action.
• The theory is that doing something different, something that you
wouldn’t normally do, can help spark change by making you more
flexible. Try one of the ideas above and see what happens as a result.
Relationship agility
• Relationship agility refers your ability to be flexible in your interactions
with other people.
• Your personal and emotional agility play an important role in your working
relationships in two ways.
• Firstly, if you have a high level of personal agility you will find it easier to
work and collaborate with your colleagues.
• The second way personal agility can help is in affecting the mood of the
whole team. Emotions can be contagious - in the hive-mind of a closely-
knit group a bad mood can spread quickly, affecting morale and
productivity.
• Emotional agility is a key factor when it’s time to join a new team. Starting
a new job can be daunting at the best of times, and those who make the
smoothest transition and fit in quickest will be those that have the highest
level of emotional agility.
Resilience
• Even with a high level of personal agility, sometimes things will go wrong -
we won’t react in quite enough time, or we’ll choose the wrong course of
action. When things do go wrong and we’re blindsided, it’s resilience that
allows us to recover and thrive again.
• Resilience is another kind of agility - it’s the speed with which you can
adapt to a setback, and return to your normal level of productivity.
• Resilience isn’t an inborn trait - it’s a skill you can learn. A few small
cognitive adjustments can transform a setback into an opportunity, and a
major dip in motivation into a drive to better ourselves.
• None of us look forward to obstacles, but it is important to be prepared for
them, so that we aren’t left powerless when things don’t go according to
plan. With the flexibly of agility and the robustness of resilience, you
should have everything you need to deal with any eventuality.
A mindset is an
established set of
attitudes and
habits about how
we accomplish
work.
It’s not just about
technology. It’s
about a mindset.
• Trust
• Peer-learning
• Failure tolerant & provoking
leadership
It’s not just about
technology. It’s
about a mindset.
• Intense knowledTrust
• Peer-learning
• Failure tolerant & provoking
leadership
• ge sharing
• Transparant communication
• Permeability of the organization
• Diversified workforce
The Agile mindset
approaches work
with an attitude of
continuous
learning and
discovery
Personal
Imperatives
I am the
Creator
Of my
reality. Whatever
I focus ON
I create.
Jane Roberts, Seth, (1972)
The Six Dimensions of
the ACE Agility Index:
1. Leadership & Management – The style of your leadership and its alignment to your strategy,
the strength and speed of decision-making, the clarity of communication and the degree to
which it is trusted, will all influence your organisation's appetite for agility.
2. Innovation – The degree to which an organisation has in place a systematic approach for
sharing insights on market trends and continually generating new ideas, as well as the degree
to which it uses internal and external networks to share ideas, affects an organisation's ability
to adapt to changing customer demands and technological advances.
3. Strategy – The way in which your strategy is developed, balancing rational with intuitive
input, encouraging internal dialogue, and how clearly your strategic intent is communicated
and the level of stretch you impose, all contribute to providing an agile mindset and ambition.
4. Culture – The way your employees' collective values and opinions guide behaviour will
impact on how agile your organisation can be. This culture can be influenced by your policies
and practices on areas such as transparency and openness of information, and also how you
recognise and reward employees for successfully responding to changes in the marketplace.
5. Learning & Change – The degree to which the organisation has a shared vision, has an
appetite for change and the capability to enact the changes, and how it deals with the
consequences of past decisions, all impact an organisations’ level of agility.
6. Structure – The strength and robustness of operations and processes combined with the
degree to which your managers have clear delegated decision-making authority, will help
determine your ability to respond to the challenges in the marketplace.
Ranking of Low Versus Highly Agile Organisations
Agility-Creating Activities – How do you score?
Take aways
For most companies, the path to organisational agility involves transformation, the ability to whittle away at
ineffi ciency and regroup around what is truly core to the business. While the task may appear daunting, there
are a number of steps that management can consider to lighten the burden of change:
• Optimise core processes. By minimising excess spending and non-core programmes, companies can better
direct limited resources to satisfying customer expectations, activities that position a company well not only
during times of recession but also for long periods of growth.
• Minimise information silos. Barriers to change include confl icting departmental goals and priorities, a
culture of risk aversion and silo-based information. By reducing silos, business leaders can improve
collaboration inside and outside their enterprise and better align departmental goals and performance
measures with overall strategy.
• Integrate and automate fundamental knowledge-sharing processes. Such integration will enable IT to
advance an organisation’s ability to problem-solve, improve decision-making and convert information into
insight.
The tangle of forces that created the current economic diffi culties looks set to leave an undercurrent of volatility
even after the global recession eases. Competitive advantage will go to those who align their businesses well to
embrace and respond to change.
Learning and
Giving for
Better
Indonesia
www.humanikaconsulting.com
This Photo by Unknown Author is licensed under CC BY-SA-NC

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Organizational Agility for Sustainable Competitive Advantage in VUCA

  • 1. Organizational Agility: Sustainable Competitive Advantage in VUCA Seta A. Wicaksana Founder and CEO of Humanika Consulting www.humanikaconsulting.com
  • 2. Seta A. Wicaksana 0811 19 53 43 wicaksana@humanikaconsulting.com • Business Psychologist • Pendiri dan Direktur Humanika Consulting dan hipotest.com • Dosen Tetap dan Peneliti di Fakultas Psikologi UP • Pembina Yayasan Humanika Edukasi Indonesia • Wakil Ketua Asosiasi Psikologi Forensik Indonesia wilayah DKI • Penulis Buku: Sobat Way (2016), Industri dan Organisasi: Pendekatan Integratif dalam menghadapi Perubahan (2020), Human Faktor Engineering: Integratif Desain Manusia dan Lingkungan Kerja (2021), Psikologi Industri dan Organisasi (2021), Psikologi Umum (2021), Manajemen Pengembangan Talenta (2021), PIODiagnostik: Pengukuran Psikologi di Lingkungan Kerja (2021), Transformasi Digital: Perspektif Organisasi, Talenta dan Budaya Organisasi (2021), Psikologi Pelayanan (2021) dan Psikologi Konsumen (2021). • Dosen Tidak Tetap di: Program Pasca Sarjana Ekonomi di Univ. Pancasila, STP TRISAKTI, Fakultas Psikologi Universitas Mercu Buana, STIKOM IMA • Certified of Assessor Talent Management • Certified of Human Resources as a Business Partner • Certified of Risk Professional • Certified of HR Audit • Ilmu Ekonomi dan Manajemen (MSDM) S3 Universitas Pancasila • Fakultas Psikologi S1 dan S2 Universitas Indonesia • Sekolah ikatan dinas Akademi Sandi Negara
  • 3. 2. WHY AGILE 5. STRATEGIC AGILITY 3. CHANGE AND LEARNING AGENDA 6. AGILITY AS A CULTURE 7. ORGANIZATION AGILITY 8. AGILE LEADER AND MANAGEMENT 9. PERSONAL AGILITY 10. THE SIX DIMENSIONS OF THE ACE AGILITY INDEX 4. INNOVATION 1. LEADING IN VUCA WORLD
  • 4. LEADING IN VUCA WORLD Building SCAs is Key in VUCA
  • 5. Leading in VUCA World “The art of war teaches us to rely not on the likelihood of the enemy’s not coming, but on our own readiness to receive him; not on the chance of his not attacking, but rather on the fact that we have made our position unassailable.” - Sun Tzu Globalization and the “West to East” shift “Light-Speed” Innovation Cycles Changing Workforce Demographics Increasing Speed of EVERYTHING • Most growth coming from emerging economies …Competitors win on unfamiliar battlegrounds • Leadership qualities to win in domestic markets are less-relevant in global markets • Faster technology cycles …agile firms disrupt markets faster than ever before • Leaders in this environment must know how to effectively manage uncertainty • Generational shifts in workers, employers must redefine work patters and employer value-propositions • Cross-cultural, virtual, globally diverse collaboration requires a different set of leadership capabilities • Complexity and uncertainty increase as speed accelerates. • Constant, rapid-cycle change is the “new normal” • Success will be defined by leaders who are able to create “calm in the chaos” while embracing and leading change
  • 6. Sustainable Competitive Advantages (SCA) A firm has an SCA when it is able to generate more customer value than competitive firms in its industry for the same set of products and service categories and when these other firms are unable to duplicate its effective strategy A good SCA meets three criteria: 1. Customers care about what this SCA offers 2. The firm does it better than competitors, which generates a relative advantage 3. The SCA must be hard to duplicate or substitute, even with significant resources Thus, being first to market with a new idea is not sufficient to create a barrier to competitors, especially if deep-pocketed market leaders recognize the threat of an innovative new entrant and devote their resources to protect their sales to existing customers To make an SCA hard to copy, firms often turn to key market- based sources of SCAs
  • 7.
  • 8. Holistic Transformation Program The Satya and the leadership team launched a holistic transformation program I won't go into all the details, nor would it be appropriate for me to do so... Clearly a holistic program covering all major aspects of the business: • Culture: While not using exactly these words, it is clear that Satya believed the Transformation of Microsoft would not deliver and sustain breakthrough performance without a transformation of the culture... I mentioned the MEME with people shooting at each other.. inward, competitive, and also one of hubris – we know best.... Satya took this on. Together with Kathleen Hogan the CHRO... 4 attributes and later added a 5th: Growth Mindset – not growth as in revenues but growth as in an orientation to learning, the term coined by Stanford's Carol Dweck • Strategy: Defined the biggest strategy issues, assigned C-suite leaders against each – but made the entire leadership team accountable for solving these. what to do with nokia?, what to do with X-box, transition from Windows-centric to cloud-centric view, etc. • Engineering: many organization changes plus a major push to move away from waterfall Triad model – dev, test, program manage - to Agile • Go to market: Massive transformation – ongoing today - Digitally enabled B2B selling focused on integrated solutions • Corporate Excellence: Really a cost-reduction effort. Initially resisted cost reduction but came to see significant opportunity • People: Under new CHRO launched a People strategy and HR transformation program • …. All supported by change management to enable leaders, engage the organization, and track progress
  • 9. • We have entered a new era I have dubbed the era of 'Always- On' Transformation. For leaders and employees alike, it's less a marathon and more a triathlon; no sooner does on leg finish than another is under way, giving participants no chance to catch their breath before giving their all once again. • When transformation was viewed as a one-off, short-term program, companies tended to be very short sighted and people were often treated as a means to an end or, worse, as collateral damage. But successful transformation today's environment of constant change depends on people who are embracing new tools, new methodologies, new ways of working and who are engaged and motivated to go above and beyond. • But it not just about successful transformations. The stakes are much bigger. People spend the majority of their waking hours involved in organizations. Leaders of organizations, therefore, have an enormous opportunity to have a positive impact on the lives of people. We owe it to the people who work for us and to society more broadly to find a better approach...
  • 10.
  • 16. Why Agile: Where to look for agile opportunities Customer preferences & solution options change frequently Close stakeholder collaboration and rapid feedback are feasible Problems are complex, solutions are unknown and scope isn’t clearly defined Incremental product developments have value and customers can use them Agility enhances execution in opportunities that demonstrate: Modularity of Work Market Environment Remember customer internal or external value is targeted
  • 17. Why Agile: People • Agile methodologies focus on developing collaborative ways to manage organizational knowledge. • Staying disciplined in agile approaches to knowledge management protects people and creates an organization that operates in a singular direction. An entire organization working in this fashion will change peoples lives. • Well built agile teams and well executed agile techniques create a complex feeling of togetherness and commitment among all involved. In the generations past this was described as Ba. • Ba is the emotional inspiration of what I try to create with agile teams: the hive mind. I personally became addicted to this feeling working in high performing teams. I became an agile coach to teach others how to achieve this feeling of Ba as rapid as possible.
  • 18. The Essence of Agility Copyright © 2009 ChangeWise, Inc. – All Rights Reserved Focus Step back Gain a broader, deeper view Re-engage, take action
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  • 21. The Agile Manifesto is centered on four values: • Interaction and individuals are more important than standard procedures and tools. • Delivering a working product is more important than extensive documentation. • Fostering more customer collaboration over relying mainly on contract negotiations. • Being open to changes instead of needlessly clinging to your initial project plan. Applying these values or principles on an organizational level provides an indication of how an Agile Organization is going to look. “ Being agile means constantly being adaptive to change. It constantly raises the question what we can do better in order to succeed. - Ralph Kienzler, Head of „Group Accounting“, Landesbank Baden Württemberg
  • 22. 1. Focus on the user and all else will follow. 2. It’s best to do one thing really, really well. 3. Fast is be6er than slow. 4. Democracy on the web works. 5. You don’t need to be at your desk to need an answer. 6. You can make money without doing evil. 7. There’s always more informaLon out there. 8. The need for informaLon crosses all borders. 9. You can be serious without a suit. 10. Great just isn’t good enough. Source: h6ps://www.google.com/about/company/philosophy/
  • 23. It is change, continuing change, inevitable change, that is the dominant fact in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be. — Isaac Asimov Change and Learning in Agility
  • 24. • Change is the catalyst for agility. Without change throwing obstacles in our path, there’s no need to be nimble, light and able to react quickly. • At present, the pace of change feels relentless – new technology has changed our working lives beyond recognition and disrupted whole industries. • Many of us like to think that change is rare - we feel like it should be a one-off event, with a beginning and an end. The reality is that change is a constant state - nothing stays the same forever. If this seems daunting, agility is your friend. • Knowing that you are agile - that you can react quickly and accurately - makes change less intimidating. • Agility is liberating and makes you stronger. With agility, the things you can’t see over the horizon, the obstacle in your path, the new discoveries, are sources of opportunity and excitement, rather than things to fear. Agility in Change
  • 25. Four Things Can Make Change Easier On A Psychological Level (Mckinsey): In any moment of decision, the best thing you can do is the right thing. The worst thing you can do is nothing.” - Theodore Roosevelt To make change stick, you need to have a ‘story’ that rings true to you about why you should change. Purpose Coming up with new goals and rewards will help you maintain a change over time. Reinforcement and Reward We can’t change instantly, it takes time and practice. To change, you need to absorb new information in chunks, test it out, and integrate it with your existing behaviour. . Time and Practice Having role models around you, particularly at work, can help changes to stick, by providing tangible proof that change is possible. Role Models Source: Emily Lawson and Colin Price, ‘The psychology of change management’, McKinsey Quarterly, http://nokia.ly/1guJceG
  • 26. A Quick Comparison Between The Elements That Go Into A Process Change Verses Those That Go Into A Cultural Change
  • 27. The CEO’s Dilemma • Talent gaps constrain business growth • Talent is required to drive other business imperatives
  • 28. Learning Agility Having both the ability and willingness to learn from past experiences and apply those learnings to new and first-time experiences successfully. Fact-based predictor of continued leadership growth and potential Korn Ferry’s research demonstrates that Learning Agility is the strongest predictor of job performance following a promotion © 2014 Korn Ferry’s research-based assessment of potential—Learning agility
  • 29. “The ability to learn is a defining characteristic of being human; the ability to continue learning is an essential skill of leadership. When leaders lose that ability, they inevitably falter. When any of us lose that ability, we no longer grow.” - Bennis and Thomas, Geeks and Geezers: How Era, Values and Defining Moments Shape Leaders
  • 30. AGILE in EVERY STEP IN LEARNING SELF-AWRENESS •Actively seeks feedback. •Tend to be self- reflective. •Is candid to a fault about self. •Sensitive to their impact on others. •Know personal strengths and weaknesses. •Take corrective action based on feedback MENTAL AGILITY •Are very curious. •Get to the root causes. •Have a broad perspective. •Find parallels and contrasts. •Question conventional wisdom. •Find solutions to tough problems. PEOPLE AGILITY •Are open-minded. •Understand others. •Are politically agile. •Can play many roles. •Are skilled communicators. •Enjoy helping others succeed. •Are comfortable with diversity. •Handle conflict constructively. CHANGE AGILITY •Enjoy tinkering with things. •Strive for continuous improvement. •Often introduce new perspectives. •Can take the heat and pressure of change. •Understand impact of change and how to manage it. RESULT from AGILITY •Build high- performing teams. •Are very flexible and adaptable. •Perform well in first- time situations. •Have drive and personal presence. •Accomplish things against the odds.
  • 31. Paths to developing learning agility— Key experiences • Launching a new service or product • Standing up a new organization, business, line of business or location • Merging with or acquiring another organization or business • Closing down or divesting an organization, business, line of business, or location • Working as an expatriate • Turning around an under performing organization or business • Dealing with a sudden, unexpected crisis • Negotiating a large-scale critical deal, contract or labor agreement • Dealing with a significant, large-scale change initiative • Dealing with an inherited problem or challenge
  • 32. Paths To Developing Learning Agility Learning Agile Leaders Experience Hardships… • Serious business mistakes • Missed promotion/being fired/lousy jobs • Personal trauma • Problem subordinates and bad bosses • Unexpected critical/negative feedback …and Make Meaning from Those Experiences • Seek more feedback on improvement • Seek out “on the job” challenges • Zig-zag careers – many “firsts” and failures • Study the experiences…habitually evaluate for meaning (introspective not blaming)
  • 33. INNOVATION Innovation is anything, but business as usual. - Anonymous
  • 34. Improvement vs. Innovation Mental Models (Laderman, Institute for Healthcare Improvement, 2017) Improvement •Elimination, remove existing system faults. Innovation •Creation, remake the system.
  • 35. Characteristics of Innovation Organizations that demonstrate these characteristics are more innovative: • Divergent thinking • Risk Taking • Failure tolerance • Agility & Flexibility
  • 36. Divergent Thinking • Essential to innovation • Thinking that is different than the norm. • Thought processes that don’t move towards a single solution. • Not zero’d in on any one thing. Considering many options. • Creative, open minded, process.
  • 37. Ideas For Encouraging Risk-taking Behaviors Introduce/Educate Refrain Complete Communicate Calculated, intentional risk taking and Willing to “pilot” alternatives before rolling out more broadly.
  • 38. Improving Agility & Flexibility • Develop: strategies that reward agility & flexibility • Hire: employees able/willing to change based on needs • Anticipate: stay abreast of market, environment and changing landscape • Create: teams that can innovate if urgently needed (critical market changes) • Encourage: share vision and empower teams • Avoid: demotivators and overconfidence
  • 39.
  • 41.
  • 42. What is Strategic Agility? Cooperating to enhance competitiveness Organizing to master change and uncertainty Enriching the customer Leveraging the impact of people and information Agility definition – Four strategic dimensions of agile competition (Goldman et al. 1995)
  • 43. Why is strategic agility important?
  • 44. Strategic Drivers Of Change Create A Need For Strategic Agility
  • 45. Strategic Agility Along Organizational Dimensions
  • 46.
  • 48. Changing a culture: Creating Strawberry Jam
  • 50. PROCESS & CULTURE INTERDEPENDENCE • Organizational Agility = Process Agility x Cultural Agility • Process Agility represents the suite of processes by which the organization technically conducts its work, and the efficiency with which it conducts them. • Cultural Agility represents the suite of formal and informal methods by which the organization socially governs the conduct of its work, and the effectiveness with which it governs them. • The multiplication sign reminds us: • Process Agility and Cultural Agility are interdependent. • Anything times zero is zero.
  • 51. The Culture: Organizational Results • Making Agile Cultures Stick • Adopt a management style that can promote the new mindset • Executives must recognize at the outset that production re-dev elopment (transformation) seldom proceeds in a linear and stat ic manner. It involves an iterative and dynamic process of trial and error. To manage such a process, companies must mainta in a highly adaptive style. • A different kind of learning is required • Nonexperts undertake production re-development (transformat ion). They are encouraged to acquire the necessary knowledg e and skills on the job. • Management should help seed but not necessarily help create a vision for each Agile Team
  • 52. What outcomes are we visualizing? A vision statement is a vivid idealized description of a desired outcome that inspires, energizes and helps to create a mental picture of your target The Agile organization needs a clear unifying goal Leadership is responsible to seed focus and direction for the teams The teams will create and articulate the opportunity vision back to the customer The Culture: Creating an Organizational Vision
  • 53. The Culture: One Team’s Vision A transformation team’s vision example Vision for the Agile Transformation Team: • Create an environment in which we challenge all elements of the status quo in order to bring competitive high- quality products to market substantially faster & provide timely support existing products. We Wills: • Roll Agile methods to the entire organization • Ensure the people of the team have the resources necessary to be successful • Lead by example and share our experiences with the greater Organization • Focus on cultural evolution to deeply embed Agile as the preferred approach to project work • Foster an environment of collaboration across our business unit and its customer base
  • 54.
  • 55. The Culture: Values • Individual Interactions • Demonstrable Results • Customer Collaboration • Acceptance of Change
  • 56. Cultural Alignment: The Key To Sustainable Transformations • The sum-total of all the five elements presented in the previous section (Leadership, Strategy, Structure, Process and People) creates the culture of the organization and The culture keeps these five elements in alignment and harmony. • Aligned cultures are the most critical differentiating factor for high performing organizations. Whether the culture is command and control or collaborative does. • Not matter as much as whether all the elements in the organization are aligned and consistent with the culture.
  • 57. CULTURE IS THE KEY • Process (re)engineering is a discipline that is extensively researched, broadly documented and taught, and generally well understood. • Meanwhile, “culture” is often viewed as that touchy-feely fluff that is best left to HR or OD. • Leaders are responsible for their whole organization. • Work in harmony with the culture and what is possible becomes doable. • Work in opposition with the culture and what is possible becomes doomed. • Culture always wins. • In fact, culture is an organization’s “secret sauce”: • Culture is the key to enduring organizational agility. • Culture is the key to enduring organizational performance. • Culture is the key to enduring competitive advantage.
  • 59. Culture and Challenge to Agility
  • 60. Culture and Ability • An organization’s culture is the difference between them becoming their customers’ vendor of preference (i.e., a partner); or a vendor of force, or an ex-vendor. • An organization’s ability to obscure their internal disputes and dysfunction from their customers and vendors is disappearing— with social media it is approaching zero. • Have you ever been to another couple’s home and while they were cordial with you, it was clear they were having a dispute? • You weren’t too unhappy to leave. Same for your customers and vendors.
  • 61. Culture is … Your culture is the key to successfully (re)engineering a process, or implementing a software package, or innovating, or launching a product, or rising to a challenge, or responding to a market surprise, or dealing with a crisis, or… • Your culture is the key to your organization’s agility—it’s capacity and capability to sense and respond; to adapt, improvise and overcome. • Your culture is the key to your organization’s competitive advantage. • Your culture is the key to your organization’s relevance.
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  • 66. Organizational Management approaches have evolved substantially toward a bigger role for individuals in decision making and work organization
  • 67. The “living organism” organization is able to cope with today’s rapidly changing world
  • 69. Drivers for organisational agility • Size matters: Smaller organisations demonstrate significantly higher levels of agility than their bigger competitors; also, if we look at the group of highly agile organisations, the majority of them are small (51%), followed by medium (30%) and large organisations (19%). • Market leaders are more agile: The ACE Agility Index also shows an important correlation with an organisation's market position compared to industry peers/similar organisations; market leaders/excellent performers all demonstrate higher levels of agility. • Implementation is key: Organisations that are more able to implement the following activities are also found to be more agile.
  • 72. Organizational “Agility is a company’s ability to sense and respond to change adequately and in due time. “ Please refer to our Study „Agility & Congruency: The success formula of healthy Operating Models”
  • 73. Becoming an Agile Organization • Increased organizational agility is the goal of any organization that wants to overcome agile delivery challenges and better respond to critical opportunities • The effectiveness with which this is accomplished is a function of your capacity for leadership agility
  • 74. What is organizational agility? The ability to respond to market conditions and environmental changes.
  • 76. Is agile in use and are there any plans for a further transformation towards an Agile Organization?
  • 77. Hierarchical structures guarantee stability + predictability ✓ Knowledge trapped in silo’s ✓ Poor collaboration ✓ Rigid performance management systems ✓ One size fits all ✓ Employees are treated like children that have to be punished and rewarded ✓ Paternalistic leadership
  • 78. What will the organization of the future look like?
  • 79.
  • 80. The presence of networked structures is an important part of the agile, future proof organization.
  • 81. “Strategic and networked relationships fuel modern organizations.” “Individuals who maintain strong, collaborative networks tend to be productive high performers.”
  • 84. Agile potential of different departments “ Being agile is the art of combining the virtues of flexibility and stability. Florian Rodeit, Head of Finance Operations Center Prague, Deutsche Börse AG “
  • 85. Agile Transformation Framework “The successful implementation of an Agile Organization heavily depends on the readiness of leaders to empower staff, which is practically stressed when it comes to escalation requests. Christian Mauerer, Body & Security - R&D Operations, Continental AG
  • 88. ALIGNMENT STRATEGIC ALIGNMENT • Understanding the Business Case for Agility • Inspiring Vision, Mission & Culture • Leadership Competencies & Unity INFRASTRUCTURE • Global HR Infrastructure • Communication & Information Sharing
  • 92.
  • 93. Agile organizations • Agile organizations encourage their employees to be part of networks. • These networks go beyond the boundaries of • their business unit • their own organization • Agile organizations collaborate intensely with clients and temporary workers → crowd sourcing / open innovation → diversified workforce
  • 94. McKinsey’s Definition of Agile SOURCE: McKinsey Organization Design Service Line An agile organization has a highly productive operating model that fluidly reconfigures towards opportunities that create value, while highly engaging and empowering people
  • 96. “Being agile is not really new, but with the new focus on this there are more opportunities to improve operations by constant innovation -Andreas Beck, Head of Back Office Financial Markets, Landesbank Baden Württemberg“
  • 97. Organizational Agility Definition • Knowledgeable about how organizations work; gets things done both through formal and informal channels; effectively maneuvers through complex political situations. Key Words: Organizational Awareness, Business Agility Behavioral Indicator: • 1. The ability to understand and use the power of relationships at the organization or elsewhere to get things done. • 2. Understands organizational culture and politics. • 3. Predicting how actions and/or events will affect both staff in general as well as specific groups inside the Organization. • 4. Understands the overall climate and culture: Recognizes implicit limits at the organization, what can and cannot be done at certain times or in certain positions.
  • 98. PROFICIENCY LEVEL: Organizational Agility Level I • Understands the origin and reasoning behind key policies, practices, and procedures • Understands the cultures of organizations, and acknowledges corporate politics as a reality • Gets things done, both through formal channels and the informal network • Relates well to and regularly interacts with both authority figures and peers • Maneuvers smoothly through complex political situations • Identifies where the barriers are and plans his or her approach accordingly Level II • Understands the origin and reasoning behind key policies, practices, and procedures, and diplomatically communicates that to others • Is cognizant of organizational culture and politics, and appropriately adjusts personal style to be effective • Builds numerous and effective relationships through personal networks inside and outside the organization • Advises others on how to deal with complex political situations • Anticipates complex problems and watches for tell-tale indicators that warrant intervention Level III • Understands and appreciates the origins and reasoning behind key policies, practices, and procedures, and is involved with their evolution • Studies other organizational cultures and politics to glean insight and to gain fresh perspective of his or her own organization • Is a consummate networker who can initiate relationships within and between organizations that leverage the strengths and capabilities of all parties • Is actively sought after in order to provide guidance and assistance in dealing with complex political situations
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  • 101.
  • 102.
  • 103.
  • 104. Levels of Leadership Agility • 10% Catalyst • 35% Achiever • 45% Expert • 10% Pre-Expert Institutional “Ceiling” Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
  • 105. Stages of Personal Development Catalyst Co-Creator Synergist Pre-Adult Stages Conformer Expert Achiever Explorer Enthusiast Operator Institutional “Ceiling” Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
  • 106. The Research Shows that … • In overall development, levels are not skipped • Leaders retain capacities developed at previous levels • While developmental stage is relatively stable, a leader’s level of agility can vary throughout the day • “Downshifting” to previous levels can be intentional or unintentional Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
  • 107.
  • 109.
  • 110. “The ability to be agile enough is the gut issue in leading an organization today.” - James McNerney, CEO of Boeing
  • 111. Personal Agility Agility starts with you, and personal agility is your ability to react to the world around you in a timely and appropriate way.
  • 112. Personal Agility • Being more agile on a personal level has a number of advantages. It leaves you better able to react to change, take advantage of opportunities and protect yourself from threats. It can also make you feel happier and more satisfied, because being agile is about taking control of situations that might otherwise leave you feeling powerless and stressed. • In this section, we’re going to look at how to achieve this. We’ll cover: • Emotional agility • Habits • Flexibility • Relationship agility • Resilience
  • 113. Emotional agility • At its core, emotional agility is about knowing yourself, and developing a greater level of control over your feelings and reactions. • With greater emotional agility you can maximise your confidence, turn negative emotions into positive thoughts and access humility that you might not know you’re capable of. Emotional agility isn’t just valuable in your personal life though; it’s one of the most valuable business skills that you can possess. • Harvard Business Review, Susan David and Christina Congleton outline a simple method for evaluating your level of emotional agility: • 1. Choose a situation in your working day that would normally challenge you. • 2. Identify the thoughts that come into your head in that situation - for example ‘I’m going to make a mistake’ or ‘I’m not being respected’. • 3. Identify the associated feelings that come with those thoughts - for example ‘fear’ or ‘anger’. • 4. Ask yourself how much you try to make that thought and the associated feelings go away - a lot, or not all? • 5. Ask yourself the extent to which you buy into and believe those thoughts and feelings - a lot, or not at all?
  • 114. Habits “We are what we repeatedly do. Excellence, then, is not an act, but a habit.” - Aristotle • Up to 40% of our actions are performed without conscious decision on our part - they’re the result of habit (David Neal, Wendy Wood, Jeffrey Quinn, in ‘Habits - a repeat performance’, Current Directions in Psychological Science.) • Agility is all about being ready and willing to take an unexpected course of action. It’s important to think about times when following your normal pattern has caused you to miss out on an opportunity, and what habits you need to break (or at least be more aware of) so that it doesn’t happen again. • Charles Duhigg, author of The Power of Habit: Why We Do What We Do in Life And Business, writes that habits are a loop made up of three steps: • 1. The cue - The cue is a trigger that sparks the ‘habit loop’. It could be a location, a time of day, an action, or a person or people, or a feeling. • 2. The routine - This is the action that is triggered by your brain responding to a cue. • 3. The reward - The reward is the benefit you get from your routine.10
  • 115.
  • 116. Flexibility • Improving your emotional agility and changing your habits both rely on developing flexibility in your behaviour • In their book Flex: Do Something Different, Ben Fletcher and Karen Pine suggest that we have three kinds of habit: • 1. Habits of perception-How we make sense of the world. • 2. Habits of attitude-Our biases and prejudices. • 3. Habits of behaviour-The things we do. • We go through many situations on autopilot, relying on these three kinds of habit and past behaviour patterns to decide our course of action. • The theory is that doing something different, something that you wouldn’t normally do, can help spark change by making you more flexible. Try one of the ideas above and see what happens as a result.
  • 117. Relationship agility • Relationship agility refers your ability to be flexible in your interactions with other people. • Your personal and emotional agility play an important role in your working relationships in two ways. • Firstly, if you have a high level of personal agility you will find it easier to work and collaborate with your colleagues. • The second way personal agility can help is in affecting the mood of the whole team. Emotions can be contagious - in the hive-mind of a closely- knit group a bad mood can spread quickly, affecting morale and productivity. • Emotional agility is a key factor when it’s time to join a new team. Starting a new job can be daunting at the best of times, and those who make the smoothest transition and fit in quickest will be those that have the highest level of emotional agility.
  • 118. Resilience • Even with a high level of personal agility, sometimes things will go wrong - we won’t react in quite enough time, or we’ll choose the wrong course of action. When things do go wrong and we’re blindsided, it’s resilience that allows us to recover and thrive again. • Resilience is another kind of agility - it’s the speed with which you can adapt to a setback, and return to your normal level of productivity. • Resilience isn’t an inborn trait - it’s a skill you can learn. A few small cognitive adjustments can transform a setback into an opportunity, and a major dip in motivation into a drive to better ourselves. • None of us look forward to obstacles, but it is important to be prepared for them, so that we aren’t left powerless when things don’t go according to plan. With the flexibly of agility and the robustness of resilience, you should have everything you need to deal with any eventuality.
  • 119. A mindset is an established set of attitudes and habits about how we accomplish work.
  • 120. It’s not just about technology. It’s about a mindset. • Trust • Peer-learning • Failure tolerant & provoking leadership
  • 121. It’s not just about technology. It’s about a mindset. • Intense knowledTrust • Peer-learning • Failure tolerant & provoking leadership • ge sharing • Transparant communication • Permeability of the organization • Diversified workforce
  • 122. The Agile mindset approaches work with an attitude of continuous learning and discovery
  • 123.
  • 124. Personal Imperatives I am the Creator Of my reality. Whatever I focus ON I create. Jane Roberts, Seth, (1972)
  • 125. The Six Dimensions of the ACE Agility Index: 1. Leadership & Management – The style of your leadership and its alignment to your strategy, the strength and speed of decision-making, the clarity of communication and the degree to which it is trusted, will all influence your organisation's appetite for agility. 2. Innovation – The degree to which an organisation has in place a systematic approach for sharing insights on market trends and continually generating new ideas, as well as the degree to which it uses internal and external networks to share ideas, affects an organisation's ability to adapt to changing customer demands and technological advances. 3. Strategy – The way in which your strategy is developed, balancing rational with intuitive input, encouraging internal dialogue, and how clearly your strategic intent is communicated and the level of stretch you impose, all contribute to providing an agile mindset and ambition. 4. Culture – The way your employees' collective values and opinions guide behaviour will impact on how agile your organisation can be. This culture can be influenced by your policies and practices on areas such as transparency and openness of information, and also how you recognise and reward employees for successfully responding to changes in the marketplace. 5. Learning & Change – The degree to which the organisation has a shared vision, has an appetite for change and the capability to enact the changes, and how it deals with the consequences of past decisions, all impact an organisations’ level of agility. 6. Structure – The strength and robustness of operations and processes combined with the degree to which your managers have clear delegated decision-making authority, will help determine your ability to respond to the challenges in the marketplace.
  • 126. Ranking of Low Versus Highly Agile Organisations
  • 127. Agility-Creating Activities – How do you score?
  • 128. Take aways For most companies, the path to organisational agility involves transformation, the ability to whittle away at ineffi ciency and regroup around what is truly core to the business. While the task may appear daunting, there are a number of steps that management can consider to lighten the burden of change: • Optimise core processes. By minimising excess spending and non-core programmes, companies can better direct limited resources to satisfying customer expectations, activities that position a company well not only during times of recession but also for long periods of growth. • Minimise information silos. Barriers to change include confl icting departmental goals and priorities, a culture of risk aversion and silo-based information. By reducing silos, business leaders can improve collaboration inside and outside their enterprise and better align departmental goals and performance measures with overall strategy. • Integrate and automate fundamental knowledge-sharing processes. Such integration will enable IT to advance an organisation’s ability to problem-solve, improve decision-making and convert information into insight. The tangle of forces that created the current economic diffi culties looks set to leave an undercurrent of volatility even after the global recession eases. Competitive advantage will go to those who align their businesses well to embrace and respond to change.
  • 129.
  • 130. Learning and Giving for Better Indonesia www.humanikaconsulting.com This Photo by Unknown Author is licensed under CC BY-SA-NC