By Nick Horney, Ph.D., Leadership Agility Practice Leader
Organizational agility is the essential enabler of the operational excellence of a high-performance organization in today’s hypercompetitive business world to keep growth, profitability, transient competitive advantage and highest customer value.
- Customer Responsiveness – The OEA organization will work with customers, and in anticipation of customers, to supply integrated products and services that fit evolving life-cycle requirements of function, cost, and timeliness.
- Physical Plant and Equipment Responsiveness – The OEA organization will employ an ever-growing knowledge base of manufacturing science to implement reconfigurable, scalable, cost-effective manufacturing processes, equipment, and plants that adapt rapidly to specific production needs.
- Human Resource Responsiveness – The entire workforce of the OEA organization will comprise highly capable and motivated knowledge workers who can work in a flexible work environment, with substantial independent decision-making.
- Global Market Responsiveness – The OEA organization will develop its manufacturing strategy to anticipate and respond to a continuously changing global market, with operations and infrastructure tailored to local requirements.
- Teaming as a Core Competency – The OEA organization will team within and outside the company to acquire and focus needed knowledge and capabilities to develop, deliver, and support their products and services.
- Responsive Practices and Cultures – The OEA organization will continuously evolve core competencies, organizational structure, culture, and business practices, enabling it to anticipate and respond rapidly to changing customer demands.
Without a focused effort on the identification of baseline Operational Excellent Agility strengths and weaknesses followed by targeted and often preemptive developmental activities, many organizations are starting to show signs and symptoms of Organizational Narcosis™ as indicated below through the lens of The AGILE Model®.
- Our management team is often surprised by our clients, suppliers or employees.
- We do not have a clearly defined process for monitoring trends and patterns in the marketplace/business environment that will impact us.
- We find it difficult to adapt our strategy to changing events or circumstances.
- We do not have processes in place to identify early warning signs of impending change.
- Although we may collect trend data, we do not have the right people in place or decision rules to help us anticipate change.
- Employees on the front line do not understand our vision/strategy.
- Our employees do not know how their daily work contributes to our vision/strategy.
- We have not had many “wins” lately.
- As a management team, we do not walk the talk of our strategy/vision/values.
- Our employees are not engaged/empowered.
- We do not act with a sense of urgency to marketplace or other business conditions.
- We do not focus on decreasing cycle time in our decision processes.
- Decisions are not reached at the lowest level, thereby slowing us down.
- We do not have clearly defined decision rules (e.g. consensus, boss decides, etc.).
- We have to have all of the information before taking action.
- We do not use “out-of-the-box” thinking.
- We do not reward or encourage fresh, innovative ideas.
- We do not have a culture that encourages risk taking.
- We do not use cross-functional/collaborative teams to encourage alternative views.
- We do not regularly seek better solutions.
- Measurable work expectations are not established or clearly communicated to all employees.
- We are unclear about deliverables internally and externally.
- We are not open to feedback from our clients, partners, suppliers and employees.
- Key performance indicators are not being used to adapt as conditions change.
- Technology (e.g., dashboards) is not used to enable real-time feedback for our key performance indicators.
You can prevent Organizational Narcosis™ by conducting and implementing the results of an Organizational Agility Audit™.
The Agility Audit™ allows an organization to rapidly develop:
- An understanding of whether the organization is aligned with their business strategy and their espoused values or management philosophy about agility.
- An accurate and grounded understanding of the barriers to implementing organizational agility that requires an alignment between people, processes and technology.
- A vision of how the organization will have to manage to achieve and sustain organizational agility.
- Clarity of understanding and specific action plans regarding organizational and interpersonal barriers to achieving its strategy.
The Agility Audit™
The Agility Audit™ is a three-step process that examines the gap between organizational agility best practices and a current state assessment resulting in specific actions to close the gaps.
Step 3: Agility Workshop — The finale of the Agility Audit™ process is a full day workshop with the leadership team where it will:
- Get the results & insights from the on-line survey
- Get summary conclusions from individual interviews
- Participate in a creative “Strategic Visioneering” exercise
- Identify the turbulence and hurdles in the organization’s environment
- Create specific action plans to enhance organizational agility
How do you (can you) apply agility to your Operational Excellence processes?
About Nick Horney
Nick Horney, Ph.D. is The Agility Doc. He first discovered the value of agility during his 23 years of service as a special operations naval officer responsible for diving and explosive ordnance disposal teams. In these rapidly unfolding and changing circumstances–and now, as an organizational psychologist–Nick discovered that the key ingredient separating good organizations from best organizations is agility. After serving in a senior role at the Center for Creative Leadership, he founded Agility Consulting and Training in 2001. Learn more about Nick at www.nickhorney.com.