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Organizational Agility for Sustainable Competitive Advantage in VUCA

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Organizational Agility for Sustainable Competitive Advantage in VUCA

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An Organization 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
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 our friend.

An Organization 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
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 our friend.

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Organizational Agility for Sustainable Competitive Advantage in VUCA

  1. 1. Organizational Agility: Sustainable Competitive Advantage in VUCA Seta A. Wicaksana Founder and CEO of Humanika Consulting www.humanikaconsulting.com
  2. 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. 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. 4. LEADING IN VUCA WORLD Building SCAs is Key in VUCA
  5. 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. 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. 7. 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
  8. 8. • 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...
  9. 9. Why Agile: Reported Results
  10. 10. Why Agile: Reported Results
  11. 11. Why Agile: Reported Results
  12. 12. Why Agile: Reported Results
  13. 13. Why Agile: Reported Results
  14. 14. 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
  15. 15. 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.
  16. 16. The Essence of Agility Copyright © 2009 ChangeWise, Inc. – All Rights Reserved Focus Step back Gain a broader, deeper view Re-engage, take action
  17. 17. 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
  18. 18. 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/
  19. 19. 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
  20. 20. • 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
  21. 21. 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
  22. 22. A Quick Comparison Between The Elements That Go Into A Process Change Verses Those That Go Into A Cultural Change
  23. 23. The CEO’s Dilemma • Talent gaps constrain business growth • Talent is required to drive other business imperatives
  24. 24. 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
  25. 25. “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
  26. 26. 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.
  27. 27. 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
  28. 28. 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)
  29. 29. INNOVATION Innovation is anything, but business as usual. - Anonymous
  30. 30. Improvement vs. Innovation Mental Models (Laderman, Institute for Healthcare Improvement, 2017) Improvement •Elimination, remove existing system faults. Innovation •Creation, remake the system.
  31. 31. Characteristics of Innovation Organizations that demonstrate these characteristics are more innovative: • Divergent thinking • Risk Taking • Failure tolerance • Agility & Flexibility
  32. 32. 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.
  33. 33. 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.
  34. 34. 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
  35. 35. STRATEGIC AGILITY
  36. 36. 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)
  37. 37. Why is strategic agility important?
  38. 38. Strategic Drivers Of Change Create A Need For Strategic Agility
  39. 39. Strategic Agility Along Organizational Dimensions
  40. 40. Agility as A Culture
  41. 41. Changing a culture: Creating Strawberry Jam
  42. 42. Culture – Ecosystem - Habit
  43. 43. 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.
  44. 44. 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
  45. 45. 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
  46. 46. 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
  47. 47. The Culture: Values • Individual Interactions • Demonstrable Results • Customer Collaboration • Acceptance of Change
  48. 48. 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.
  49. 49. 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.
  50. 50. Culture Curve
  51. 51. Culture and Challenge to Agility
  52. 52. 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.
  53. 53. 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.
  54. 54. Organizational agility
  55. 55. Organizational Management approaches have evolved substantially toward a bigger role for individuals in decision making and work organization
  56. 56. The “living organism” organization is able to cope with today’s rapidly changing world
  57. 57. Drivers for organisational agility
  58. 58. 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.
  59. 59. Agility rethinks organization
  60. 60. Becoming more flexible: overcoming obstacles
  61. 61. 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”
  62. 62. 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
  63. 63. What is organizational agility? The ability to respond to market conditions and environmental changes.
  64. 64. Does this structure promote the agility of your organization?
  65. 65. Is agile in use and are there any plans for a further transformation towards an Agile Organization?
  66. 66. 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
  67. 67. What will the organization of the future look like?
  68. 68. The presence of networked structures is an important part of the agile, future proof organization.
  69. 69. “Strategic and networked relationships fuel modern organizations.” “Individuals who maintain strong, collaborative networks tend to be productive high performers.”
  70. 70. Agility Spectrum
  71. 71. Generic Value Chain
  72. 72. 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 “
  73. 73. 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
  74. 74. Bilateral Perspective of Organizational Agility
  75. 75. 3 COMMON CHARACTERISTICS OF AGILE ORGANIZATIONS:
  76. 76. ALIGNMENT STRATEGIC ALIGNMENT • Understanding the Business Case for Agility • Inspiring Vision, Mission & Culture • Leadership Competencies & Unity INFRASTRUCTURE • Global HR Infrastructure • Communication & Information Sharing
  77. 77. EXTERNAL FOCUS
  78. 78. EXPERIMENTATION
  79. 79. EMBRACING CHANGE
  80. 80. 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
  81. 81. 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
  82. 82. Agility Dimensions Ranked as “Very Important” by Company Size
  83. 83. “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“
  84. 84. 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.
  85. 85. 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
  86. 86. Agile Leader and Management
  87. 87. Levels of Leadership Agility • 10% Catalyst • 35% Achiever • 45% Expert • 10% Pre-Expert Institutional “Ceiling” Copyright © 2009 ChangeWise, Inc. – All Rights Reserved
  88. 88. 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
  89. 89. 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
  90. 90. Actions Around Leadership & Management
  91. 91. “The ability to be agile enough is the gut issue in leading an organization today.” - James McNerney, CEO of Boeing
  92. 92. 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.
  93. 93. 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
  94. 94. 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?
  95. 95. 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
  96. 96. 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.
  97. 97. 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.
  98. 98. 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.
  99. 99. A mindset is an established set of attitudes and habits about how we accomplish work.
  100. 100. It’s not just about technology. It’s about a mindset. • Trust • Peer-learning • Failure tolerant & provoking leadership
  101. 101. 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
  102. 102. The Agile mindset approaches work with an attitude of continuous learning and discovery
  103. 103. Personal Imperatives I am the Creator Of my reality. Whatever I focus ON I create. Jane Roberts, Seth, (1972)
  104. 104. 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.
  105. 105. Ranking of Low Versus Highly Agile Organisations
  106. 106. Agility-Creating Activities – How do you score?
  107. 107. 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.
  108. 108. 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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