Creating agility:
The next agenda for strategy,
organization, leaders, and individuals
Creating agility for next generation leaders
June 22, 2020
Human capital forum
Dave Ulrich
Rensis Likert Professor, Ross School of Business
University of Michigan; Partner at The RBL Group
[email protected]
www.rbl.net
2
Begin with the end in mind … let’s stay connected
To get a copy of these slides, visit our website:
https://www.rbl.net/webinars/creating-agility-the-next-agenda-for-strategy-organization-
leaders-and-individuals
Also, please follow Dave Ulrich on LinkedIn to view my regular posts with insights and tips.
3
Seeing the Future Comes from Theory, Research, and Experience
Talent Accelerator Research Defining and Assessing
13 dimensions of talent and impact Organization Capabilities and
TALENT Competence on outcomes in 450+ global
ORGANIZATION impact on stakeholders
Workforce companies Capability 1,200 global organizations; deep
Workplace Process interventions in 100+ companies
People Best selling books on talent
10 books on redefining organization
100’s of interventions on logic
talent upgrade and impact
Creating agility for next
generation leaders in
Indonesian firms
Top companies for leadership
(Fortune ; 3 rounds 500 companies
30 year/7 rounds of HR
LEADERSHIP BRAND each)
HUMAN RESOURCES Competency Study
Individual leaders Over 120,000 respondents; HR’s
Leadership Code (30,000 r’s) EFFECTIVENESS impact on stakeholder value; 100’s
Leadership pipeline Leadership Brand (100 org’s)
of HR transformations
Leadership Capital Index
A dozen books defining HR role,
10 books defining leadership effectiveness and impact
impact
4
Overall Goals and Agenda
CREATING AGILITY FOR NEXT
IDEAS IMPACT
GENERATION LEADERSHIP
Role of Boards and Leaders
Why agility matters?
What agility means?
Where agility applies?
How to institutionalize agility?
Who: Implications for boards and leaders
5
Role of Boards and Senior Leaders
Process Content
What boards and senior Where boards and senior
leaders do: leaders focus
• Review • Financial
• Advise/coach • Strategic
• Oversee • Operational
• Control/manage • Organizational
6
Sources of Success (Competitive Advantage)
Content
Where boards and senior
leaders focus
To succeed in our marketplace and sustainably
• Financial grow top and bottom line, we must focus on…
• Strategic
• Operational
• Organizational
Technology Agenda:
Information systems, digital
agenda, operations, work
processes
Financial Agenda Strategic Agenda
Creating profit, access to Business mix: where we play;
capital, capital structure, how we win: vision, products
managing risk services
Organization Agenda
Talent (people, workforce)
Organization (culture, workplace)
Leadership at all levels
7
Assessment of Sources of Competitiveness
Sources of competitiveness Where should
organization focus?
(divide 100 points)
Strategic Agenda: Business mix: where we play; how we
win: vision, products services
Financial Agenda: Creating profit, access to capital,
capital structure, managing risk
Technology/operations agenda: Information
systems, digital agenda, operations, work processes
Organization Agenda: Talent (people, workforce);
Organization (culture, workplace); Leadership at all levels
100
Outcome of Today’s Discussion 8
How can I as a board member (or senior business executive)
help create a more effective “organization”?
9
Overall Goals and Agenda
CREATING AGILITY FOR NEXT
IDEAS IMPACT
GENERATION LEADERSHIP
Boards and senior leaders have financial, strategic,
Role of Boards and Leaders technology and organization stewardship
Why agility matters?
What agility means?
Where agility applies?
How to institutionalize agility?
Who: Implications for boards and leaders
Understand emerging environmental context 10
Which is the best cell to be in? Which is the worst cell to be in?
Right Wrong
Well 1 2
Poorly 3 4
Environment
Challenges in the Environmental Context 11
Outside/In Value Logic: Know the Context 12
Overall Assumption: Content is king; Context is kingdom
Challenges and Opportunities in the world we live in?
Technology Lingo … how do you do? 13
3-D printing Connectivity Mass customization
Analytics Convergence Quantum computing
Artificial intelligence (AI) Digitization Renewable energy
Automation Drones Robots/chatbots
Big data Experience economy Sensors
Biotech Gamification Social media
Blockchain Internet of things Social networks
Cloud computing Machine learning Sustainability
Cognition Machine vision Virtual reality
Industries going through digital transformation 14
• Transportation …driverless cars, autonomy, trucking system, commute quality of life,
delivery business; automotive rental; cab service;
• Retail … on line shopping vs. in store; customization of purchasing
• Medicine … better access (tele health, remote diagnostics, doctor on demand), wearable
technology, anticipate diseases and solutions,
• Robots … do work humans don’t want to do, cybernetics (connected to body)
• Manufacturing .. manage supply chain eco system, automation of labor, machine
optimization (lean), inventory control, machine management
• Food … fast food on line ordering; meal delivery kits;
• Lodging/hospitality … customize guest experience from beginning to end (AirB&B)
• Education … on line learning (MOOCs); on demand education
• Financial services … replacing credit cards; tailored investment options
• Entertainment … keep track of interests (Disney) and viewership (Netflix, Amazon TV)
• Your industry ?????
Overall Logic for Digital Transformation 15
How do we
How do we invest
succeed in the
in technology?
marketplace?
Financial Agenda
• Artificial intelligence Market valuation;
• Robots/chatbots profitability
• Cloud data
• Internet of things Strategic Agenda
• Social media Where we play;
• Machine learning How we win
• Automation
• Etc. Technology Agenda
Operational efficiency;
Work processes
Overall Logic for Digital Transformation 16
How do we access How do we
How do we invest digital information
succeed in the
in technology? to make better
decisions? marketplace?
Financial Agenda
• Artificial intelligence Market valuation;
• Robots/chatbots profitability
• Cloud data
• Internet of things Strategic Agenda
• Social media Where we play;
• Machine learning How we win
• Automation
• Etc. Technology Agenda
Operational efficiency;
Work processes
Overall Logic for Digital Transformation 17
How do we access How do we
How do we invest digital information
succeed in the
in technology? to make better
decisions? marketplace?
Create the organization
capability to deliver
asymmetry through
digital information
Corona Virus headlines 18
Stages of an Emergency/Accident as Applied to Crisis 19
ACCIDENT:
AMBULANCE: HOSPITAL: HOME:
First aid/
Transition Expert care Embed new normal
First responder • Provide emotional support • Access solutions • Change identity
• React quickly • Do diagnosis on cause • Get deep expertise • Adapt to new insights
• Stop the “bleeding” • Source experts • Improve processes • Make it last
• Render aid/do triage
REPSOND RECOVER REINVENT
Response to the Context 20
Context:
Content is king; Context is kingdom
How should boards and leaders respond to the digital, Corona (or other) crises?
THREAT OPPORUTNITY
Focus on weakness and what’s wrong Focus on strengths and what’s right
• Individual emotions of fear, anxiety, • Individual emotions of hope, control,
hopelessness, despair, cynicism, loss anticipation, optimism, resilience,
• Organizational conditions of DISCOVER • Organizational conditions of
psychological risk/low morale, strategic emotional well being, strategic focus,
haze, cultural malaise, brand ambiguity, “right” culture/brand, financial discipline
financial freefall • Leadership actions of empowering
• Leadership actions of disorientation, others, offering guidance, getting things
agitation, desperation, frustration done, instilling confidence
Creating successful organizations 21
High
INDIVIDUAL
LEADERS
Talent
Leadership at all levels
Workforce
People
Individual
Ability ORGANIZATION
Culture
Workplace
Systems
Low
Low High
Organization Capability
Relative impact of individual vs. organization 22
Individual
(talent, competence, workforce,
people)
Organizational
(culture, capability, workplace,
process)
10
Importance of talent and teamwork 23
What percent of the time is the leading scorer (winner of the Golden
Boot) on the team that wins the World Cup?
Importance of talent and teamwork 24
How many of the “Best Actor/ Best Actress… Director” Academy Award winners in the
last twenty years were also in the “Best Picture” for that year?
What do we mean by organization capability? 25
Social Individual
Organizational Capability
Competence
Individual Core Competence:
Technical Technical Functional /
Competence Technical Expertise
Individual Organizational
Evolution of Capabilities 26
Agility
change, speed, disruption
i e s
i l it Culture
ab
Cap identity, shared mindset
n
it o
iza Collaboration
gan
f Or teamwork, cross functional
n o
it o Innovation
olu
Ev breakthrough, invention
Customer focus
connection, service, anticipation
Talent
competence, workforce, people
Outcome of Today’s Discussion 27
How can I as a board member (or senior business executive) help create
a more effective “agile organization”?
1. Recognize that organization agility is key to marketplace success
28
Overall Goals and Agenda
CREATING AGILITY FOR NEXT
IDEAS IMPACT
GENERATION LEADERSHIP
Boards and senior leaders have financial, strategic,
Role of Boards and Leaders technology and organization stewardship
Digital transformation and Corona crisis require
Why agility matters? discovery of new organization capabilities
What agility means?
Where agility applies?
How to institutionalize agility?
Who: Implications for boards and leaders
Responding to market conditions … Overlapping and 29
confusing terms
Change Transformation Learning Renewal
Reimagination Reinvention
Grit
Disruption Shift Speed Revival
Innovation
AGILITY
Pace of change
Adaptation Future of work
What agility means 30
Four characteristics of agility (the ability to …)
1. Create a future
2. Anticipate opportunity
3. Adapt quickly
4. Learn always
SO THAT… one will survive and thrive (win, have
well being, compete) in changing contexts
Overall Agility Model 31
HR Practices
What HR practices Strategic agility:
institutionalize agility? Where and how do we
compete?
Agility
Individual agility: • Create a future Organizational agility:
How do individuals
• Anticipate opportunity How do we create an
• Adapt quickly
learn and grow? • Learn always
agile organization?
Leadership agility:
How do leaders show
agility?
Overall Agility Assessment 32
Environmental change low 1 2 3 4 5 6 7 8 9 10 high
What is pace of environmental change?
Strategic agility: 1 2 3 4 5 6 7 8 9 10 high
low
Where and how do we compete?
Organization agility:
How agile is our organization? low 1 2 3 4 5 6 7 8 9 10 high
Leadership agility:
low 1 2 3 4 5 6 7 8 9 10 high
How do leaders show agility?
Individual agility: 1 2 3 4 5 6 7 8 9 10 high
low
How do individuals learn and grow?
HR Practices: 1 2 3 4 5 6 7 8 9 10 high
low
How well do our HR practices institutionalize agility?
Outcome of Today’s Discussion 33
How can I as a board member (or senior business executive) help create
a more effective “agile organization”?
1. Recognize that organization agility is key to marketplace success
2. Define 4 dimensions of agility
3. Perform an overall organization agility audit of your business
34
Overall Goals and Agenda
CREATING AGILITY FOR NEXT
IDEAS IMPACT
GENERATION LEADERSHIP
Boards and senior leaders have financial, strategic,
Role of Boards and Leaders technology and organization stewardship
Digital transformation and Corona crisis require
Why agility matters? discovery of new organization capabilities
Define 4 dimensions of agility and do an overall
What agility means? organization agility audit of your business
Where agility applies?
How to institutionalize agility?
Who: Implications for boards and leaders
Overall Agility Model 35
HR Practices
What HR practices Strategic agility:
institutionalize agility? Where and how do we
compete?
Agility
Individual agility: • Create a future Organizational agility:
How do individuals
• Anticipate opportunity How do we create an
• Adapt quickly
learn and grow? • Learn always
agile organization?
Leadership agility:
How do leaders show
agility?
Evolution of Strategy 36
10
Strategy Evolution
Strategic agility: transform,
disrupt, reinvent, anticipate, discovery
ti on
niza Strategic capabilities: core competence, culture,
a
org capability, integration
M y
Strategic Alignment: diagnose and align systems
0
Strategic Planning: SWOT, 1-3 year plan then execute
Time
MOE strategic agility transitions 37
Assessment
Pivot From To agility based choices How to do it Rate my firm
(low 1 to 10 high)
1
Create reputation as the innovator not follower in the
Industry Industry expert Industry shaper industry; look out multiple generations
position
Market Share by Market Opportunity Appreciate and act on trends in the environment;
penetrating by creating uncontested experiment to create new; worry less about competitors
2 existing markets markets that opportunities
Customer Outside/in Define internal identity (reputation, values, culture)
interface Inside out: Who How we are known by through eyes of future customers; co-create products,
wee are; our goals future customers and how
services, relationships
customers respond to us
3 Beating Moving ahead of Benchmark to leap frog competitors;
Competition competition competition
4 Isolated product, Convergence of Build platforms more than products, then create
service “within” product, services across adjacencies from platforms
Offering
industry or network
Event: Process:
5 Blueprints for Real time responsiveness
Strategy action (SWOT to changing conditions Assume strategic agility by not locking into a fixed agenda
process analyses, Agile processes that allow
vision/mission) real time response
Overall Agility Model 38
HR Practices
What HR practices Strategic agility:
institutionalize agility? Where and how do we
compete?
Agility
Individual agility: • Create a future Organizational agility:
How do individuals
• Anticipate opportunity How do we create an
• Adapt quickly
learn and grow? • Learn always
agile organization?
Leadership agility:
How do leaders show
agility?
The requirements of the “new” organization 39
Rip currents swept
away a Florida family.
Then beachgoers
formed a human chain.
https://www.youtube.com/watch?v=jYCWT3CU0RE
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Key Insights from cases
To create and implement a new organizational logic, we have synthesized the emerging
organization innovation literature and research, and explored case studies with organization
innovations with some of the most innovative organizations in the world: Amazon, Facebook,
Flextronics, Google, Huawei, Supercell, Tencent, Alibaba.
MOE Companies Studied 41
Employees Market Value
Company Founded
(August 2019) (in Billions USD)
Alibaba 1999 101,000 432
Amazon 1994 647,000 900
Didi 2012 10,000 80
Facebook 2004 35,000 541
Google 1998 103,000 831
Huawei 1987 320,000 233
Supercell 2010 213 10
Tencent 1998 54,000 462
AVERAGE 1997 158,000 436
Emerging Market-Oriented Ecosytem (MOE) 42
Network
Organization
Post Hierarchy Boundaryless
Organization Organization
Learning Ambidextrous
Organization Organization
Market-Oriented
Ameba
Organization
Ecosystem Lattice
Organization
(MOE)
Holacracy Horizontal
Organization Organization
Team of Team Exponential
Organization Organization
Agile
Organization
43
Reinventing the Organization: Creating the MOE
1 2 3 4 5 6
Environment Strategy Capability Morphology Governance Leadership
Do we Do we have a Have we Have we Have we Do we have
understand clear strategy articulated and designed the designed and leaders at the
and anticipate for growth and a implemented right delivered the top and a
the changing pathway for the capabilities organizational practices in the shared
environmental making it that leverage form or six governance leadership
conditions that happen? our Market structure to mechanisms brand
will shape our Oriented enable our that leverage throughout the
future? Ecosystem? growth the MOE? organization to
strategy? ensure success?
Appreciate & Architect &
Clarify & facilitate Diagnose & embed Design & deliver Be, coach & build
anticipate implement
Overall Agility Model 44
HR Practices
What HR practices Strategic agility:
institutionalize agility? Where and how do we
compete?
Agility
Individual agility: • Create a future Organizational agility:
How do individuals
• Anticipate opportunity How do we create an
• Adapt quickly
learn and grow? • Learn always
agile organization?
Leadership agility:
How do leaders show
agility?
Leadership Code: The DNA of Effective Leaders 45
Count as high as you 46
can in 45 seconds, starting from 1
Count again: 47
Creates a framework for leadership
Leadership Code 2.0: The DNA of Agile Leaders 48
Human capital Developer 2.0 Strategist 2.0
1. Create information asymmetry by
a. Empower others to build their brand
separating signal from noise
b. Create psychological safety
2. Harness uncertainty
Personal Proficiency 2.0
1. Navigate paradox
2. Be transparent and renew
Talent Manager 2.0 Executor 2.0
1. Personalize responses by hearing others 1. Create the “right” culture
2. Be empathetic and a meaning maker 2. Provide guidance
49
Board Responsibility for CEO Succession
Eight questions boards should ask about CEO succession
1. Do you invest adequate time to CEO succession?
2. Do you have a definition of what the future requirements are for new CEO?
3. Do you have regular assessment of CEO today and candidates for tomorrow?
4. Do you invest in developing your CEO today and candidates for future?
5. Do you build the senior team as a team?
6. Do you attend to the next generation of leaders for future succession?
7. Do you encourage a regular talent management process
8. Do you manage the CEO transition?
Overall Agility Model 50
HR Practices
What HR practices Strategic agility:
institutionalize agility? Where and how do we
compete?
Agility
Individual agility: • Create a future Organizational agility:
How do individuals
• Anticipate opportunity How do we create an
• Adapt quickly
learn and grow? • Learn always
agile organization?
Leadership agility:
How do leaders show
agility?
Individual Learning Agility 51
4 Learn to navigate (not manage) paradoxes or
Navigate paradox tensions
3
Create a growth mindset, grit, resilience to
Build growth
adapt to new situations
mindset / resilience
2 Have a clear image of yourself and how you
Manage Self Talk come across to others
1 Know what you want and recognize strengths
Know Yourself and weaknesses
Outcome of Today’s Discussion 52
How can I as a board member (or senior business executive) help create
a more effective “agile organization”?
1. Recognize that organization agility is key to marketplace success
2. Define 4 dimensions of agility
3. Perform an overall organization agility audit of your business
4. Guide investments and improvements in
• Strategic agility
• Organization agility
• Leadership agility
• Individual agility
53
Overall Goals and Agenda
CREATING AGILITY FOR NEXT
IDEAS IMPACT
GENERATION LEADERSHIP
Accept boards and senior leaders roles for financial,
Role of Boards and Leaders strategic, technology and organization stewardship
Realize that digital transformation and Corona crisis
Why agility matters? require discovery of new organization capabilities
Define 4 dimensions of agility and do an overall
What agility means? organization agility audit of your business
Identify 4 stakeholders where agility occurs: strategy,
Where agility applies? organization, leadership, and individual
How to institutionalize agility?
Who: Implications for boards and leaders
Overall Agility Model 54
HR Practices
What HR practices Strategic agility:
institutionalize agility? Where and how do we
compete?
Agility
Individual agility: • Create a future Organizational agility:
How do individuals
• Anticipate opportunity How do we create an
• Adapt quickly
learn and grow? • Learn always
agile organization?
Leadership agility:
How do leaders show
agility?
HR practices 55
Using HR to Institutionalize Agility 56
Types of Agility
Strategic Individual Leadership Organizational
People 1 2 3 4
Performance 5 6 7 8
HR
Practices
Communication 9 10 11 12
Work 13 14 15 16
Outcome of Today’s Discussion 57
How can I as a board member (or senior business executive) help create
a more effective “agile organization”?
1. Recognize that organization agility is key to marketplace success
2. Define 4 dimensions of agility
3. Perform an overall organization agility audit of your business
4. Guide investments and improvements in [a] strategic agility, [b]
organization agility, [c] leadership agility, [d] individual agility
5. Invest in HR practices in people, performance, communication and
work to institutionalize agility
58
Overall Goals and Agenda
CREATING AGILITY FOR NEXT
IDEAS IMPACT
GENERATION LEADERSHIP
Accept boards and senior leaders roles for financial,
Role of Boards and Leaders strategic, technology and organization stewardship
Realize that digital transformation and Corona crisis
Why agility matters? require discovery of new organization capabilities
Define 4 dimensions of agility and do an overall
What agility means? organization agility audit of your business
Identify 4 stakeholders where agility occurs: strategy,
Where agility applies? organization, leadership, and individual
How to institutionalize Upgrade and deploy 4 HR practices (people,
agility? performance, information and work) to embed agility
Who: Implications for boards and leaders
Responsibility for Leaders Building Leadership 59
BE BUILD
How do I BE a better How do I BUILD better
(more agile) leader? (more agile) leadership?
•Make “agility” part of my personal
leadership brand •Recognize agility leadership impact key
•Ensure that my agile actions deliver stakeholders
•Make “agility” part of the organization’s
value to others (customers,
leadership brand
investors, and community)
•Assess leaders on agility
•Manage my calendar to reflect my •Invest in developing agile leaders
commitment to agility
Outcome of Today’s Discussion 60
How can I as a board member (or senior business executive) help create
a more effective “agile organization”?
1. Recognize that organization agility is key to marketplace success
2. Define 4 dimensions of agility
3. Perform an overall organization agility audit of your business
4. Guide investments and improvements in [a] strategic agility, [b]
organization agility, [c] leadership agility, [d] individual agility
5. Invest in HR practices in people, performance, communication and
work to institutionalize agility
6. Take personal responsibility to BE a more agile leader and to BUILD
more agile leadership
Final Message 61
62
Begin with the end in mind … let’s stay connected
To get a copy of these slides, visit our website:
https://www.rbl.net/webinars/creating-agility-the-next-agenda-for-strategy-organization-
leaders-and-individuals
Also, please follow Dave Ulrich on LinkedIn to view my regular posts with insights and tips.
Questions 63
