David OsborneJill Hinsonwww.change-fusion.com

“Creativity and innovation happens in states of disruption; you need to

remain in a state of chaos or disconnection long enough for

innovation to emerge.”

Patricia Shaw

Organizational Agility: How to Thrive in Today’s Business Environment

What core reason brings you to

this topic?

to move quickly,

decisively,

effectively

in anticipatin

g initiating

ANDtaking

advantage of

change

v

How are we defining agility?[ ]ability to quickly bring products to market

internal & external openness

continual reframing and improvisation

exploit disruptions and “jump the curve

adaptive capacity

whose getting it right?[ ]

Agility: Is it for all industries?

Today’s Business Environment

• Global networks transform how resources & ideas are shared (i.e. Open Source Development)

• Social media and online resources increase consumer power to provide instant feedback

• Disruptive technologies transform industries overnight

• Shifting international power dynamics and conflicts influence markets

• Changing population demographics and customer trends call for constant innovation

69% of respondents experience disruptive changes in the last 12 months

• HRI Study 2007

Organization Agility

Flexible Processe

s & Structure

s

Strategic Sensitivit

y

90% of CEO’s reported wanting to become more responsive2004 IBM Global Study

Agile Workforc

e

Constant connection with the external environment

Internal information sharing

Broad understanding of your business

New ideas and identifying evolving customer needs is everyone’s job

Encourage disconfirming information and feedback

Strategic Sensitivity[ ]The ongoing, everyday ability to sense strategically

important changes and opportunities as they emerge; the foresight to notice & act.

Strategic Sensitivity: Spotlight

• Proctor & Gamble: Research and development is no longer a sterile lab - their employees learn alongside housewives

Strategic Sensitivity: Spotlight

• Innovative products that re-invent the way people think about technology

• Rapid colonization of digital music distribution system

• Strategic Partnerships

Staying ahead of the curve; leverage their strengths to introduce disruptive

technology to new markets

Strategic Sensitivity

Ways to Become More Strategically SensitiveWays to Become More Strategically Sensitive

•Shell Scenario Planning

•U Theory

•Strategic Fitness Process

•Reframe & Refocus

Adaptable

Strategic Awareness

Intellectual Flexibility

Innovation

Creativity

Interpersonal

Collaboration

Business Acumen

Results Oriented

Agile Workforce[ ]A workforce that has the capability to change and adapt

rapidly in response to shifts in the strategic direction. Collaborative, innovative, open-minded, effective &

business savvy describe this workforce

Agile Workforce: Spotlight

• Ideas go from brainstorm to product with rapid speed

• Maverick, anti-structure culture - free spirit attitude

• Fluid talent structure and teamwork

• 20% of time is spent on innovations

Fortune, 11/09/06; Shambala Sun 09/09

Agile Workforce

• Continuous improvement at the heart of everything

• Oobeya: “the power of open minds”

“There are no taboos in oobeya. Everyone in that room is an expert. They all have a part to play in building a car. With everyone being equally important to the process, we don’t confine ourselves to just one way of thinking our way out of a problem.”

• Takeshi Yoshida

Agile Workforce

Agile Workforce

WAYS TO ENGENDER A MORE AGILE WORKFORCEWAYS TO ENGENDER A MORE AGILE WORKFORCE

•Simple Rules

•Action Learning & Collaborative Problem Solving

•Trading Places - cross training

Fluid Structures and BoundariesAd-hoc project teamsCross functional connectivity

Knowledge Management & CommunicationShared language

Talent Fluidity

Product development/New Business units

Shared Values & Simple operating Rules

Financial & Goal Setting

Flexible Processes &

Structures[ ]Flexible processes and structures provide the capacity to rapidly adapt to shifts in strategic direction and business

imperatives.

Flexible Processes & Structures: Spotlight

•Advanced network technology

•Complete and disruptive re-organization since 2001

•Networked, distributed leadership- from command and control to a “distributed idea engine where leadership emerges organically”

•Cross functional Councils and Boards take ideas to business in 120 days

• Deep and widespread use of social media to collaborate

Flexible Processes & Structures

EMBEDDING FLEXIBLE PROCESSES & STRUCTURESEMBEDDING FLEXIBLE PROCESSES & STRUCTURES

•Strategic Partnering

•Ad-hoc teams; consulting model

•Dispersed communication: Think Communities of Practice leveraging social media tools

Strategically Sense ?

Relinquish controls?

Enable an Agile Workforce?

How will you........

We provide organizational development support in 3 ways

Consulting by project

24/7 “on call”

Monthly retainer