kodak

Do you remember when, a

short time ago, a special and
hearty moment was referred to
as a “Kodak moment”? That
implied the moment would be
forever cherished and happily
remembered.
•
 kodak
If it is not broke, why fix it?
Once upon a time, Kodak had healthy profit
margins, so much so in fact, that its executives
were obsessively narrowed in on increasing
film sales and completely refused the idea of
going digital- an invention that was, ironically,
pioneered by Kodak engineers themselves.
Going digital, they rationalized, meant killing
film production, an already successful core
competency of theirs. So why venture into
destination unknown and accrue risks on a
business that was soundly performing today?
 kodak

As it turned out, this "if it’s not broke, don’t fix

it" mentality led to the photography giant’s
expiry and taught everyone a lesson on the
importance of continuous listening, learning,
and development. It seems that in today’s
volatile, technology-infused and competitive
landscape, a business can only withstand the
test of time if it strongly crash tests its own
operating model for improvement. Yes, even if
this means cannibalizing itself (lest someone
else does it).
 kodak
A Kodak moment is a typical result of
MYOPIA, too-little-too-late decision-
making, and a fear of change and
innovation. To put it shorter, it occurs
when an organization lacks the
necessary agility to act.
Nokia is another reminder that being
agile not just in how you respond to
market shifts but in relooking at your
organization’s vision.
History
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• Joe Erlinger, ex-managing director of

McDonald's Korea, now President of
McDonald’s Worldwide, says that the
driving force of its swift localization is
focus on consumers. He says that the
management looks into two or three
consumer researches a month.
• In 2005, McDonald's opened the country's first 24-
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hour fast food restaurant and introduced a breakfast

menu called McMorning.

• In 2007, the company became the first to deliver fast

food to consumers' homes and workplaces.

• In 2009, amid the high popularity of costly coffee

shop beverages, it started offering inexpensive
beverages with the same coffee-shop quality.

•
• In the last few years, the company also
expanded its drive-through outlets, a
service that it first introduced in 1992.

• In addition, among large fast food chains,

McDonald's is the only one that freshly
prepares burgers upon order.
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free coffee for four days in a

row between 8 a.m. and 9
a.m. and released the "1955
burger," which used the
recipe from 1955 and was a
massive hit among
hamburger enthusiasts.
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"I can't talk about why it takes others

longer, but I know that we are
constantly looking into consumer
researches... We just know that we
have to be ahead of the consumers
and attentive of consumers," said
Erlinger.

"It's all about us innovating on behalf

of consumers.”
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months ago, he was startled by the low sales

of the Chicken McNuggets meal, which
consists of six pieces of chicken nuggets,
french fries and a drink. He says that the meal
is highly popular in the U.S.
The managing director then went to a
chicken-and-beer place, a popular hangout for
Koreans. He noticed people there share a
bucket of fried chicken as a snack rather than
as a meal.
This observation prompted him to quickly
launch the McSpicy Chicken Tenders, available
in two, four or eight strips that can be ordered
on their own as snack or added to a meal. The
company also introduced 20-piece chicken
nuggets for consumers to share.
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According to Erlinger, McDonald's doesn't

launch a new service one day and make it
available across all branches at once. The
company first tests the service in one
restaurant before expanding it to other
restaurants.
Once it identified the consumers' need,
McDonald's introduced the service with a
one-store-at-a-time strategy, a key
factor to McDonald's agility.
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"People from different disciplines and

backgrounds come together to improve
the customer experience. I think the
cross-functional nature of the work we
are doing is one of our secrets to our
execution.”

DIVERSITY
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All part-timers of McDonald's enjoy

many temporary workers do not. They
become subscribers of the national
pension fund, the national health
insurance, unemployment insurance
and occupational health and safety
insurance. They are also paid bonuses
for major family events including
weddings and funerals. McDonald's also
supports their online studies.
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But the reason behind the longevity of their career

is more than the financial benefits.
Erlinger talks about three factors:
1- Employees get continuous training so that
they do not fear the next level job.
2- The company constantly creates job
opportunities for the existing employees.
"When we open a new restaurant, that
means that restaurant managers have been
promoted," he says.
3- McDonald's has "many great examples." Six
out of eight CEOs McDonald's has started
their careers as crews. In Korea, the head of
human resources started their careers at
restaurants.
Four of the parent company's
seven global CEOs — including
current president and CEO Jim
Skinner — started their
careers in McDonald's as
restaurant crew, without formal
education. Skinner began his
career at McDonald's as a
restaurant manager trainee in
1971.
§ Skinner began his career with
McDonald's in 1971 as a restaurant
manager trainee in Illinois.
§ He never graduated from college.

§ Skinner was named CEO of

McDonald's Corp in 2004.

§ Skinner and his team were able to

increase McDonald's total sales,
increasing from $50.1 billion in 2004
to $70.1 billion in 2008.

§ Skinner retired on June 30, 2012 after

41 years with McDonald's and
received total annual compensation
of $27,741,408.
 OVERVIEW
• In 2010, the first article on Leadership Agility
was written by Nick Horney, Bill Passmore
and Tom O’Shea.

• The article was a wake-up call to

organizations about the critical need to
identify and develop leaders that
demonstrate leadership agility. Since 2010,
Agility Consulting has led the way in
researching and developing products and
services for organizations to identify, assess,
develop and deploy leaders with agility.
 VUCA BACKGROUND
The dynamic and fast-changing nature of
our world today is best described by
VUCA (Volatility, Uncertainty, Complexity
and Ambiguity).
Today, there are almost as many mobile
phones in the world as there are people.
More than one-third of the world is
online, Facebook now has more than 1
billion active users; YouTube gets more
than 100 hours of video content added
every minute; and over 175 million
tweets are added to Twitter timelines
every single day.
Leadership Agility in a
VUCA World:
• LEADERSHIP AGILITY 2005 - 2014
• During the past 10 years, many others (e.g.,
academics, consultants, business executives,
etc.) have become increasingly aware of the
critical need for leaders with agility within a
continuously changing VUCA business
environment. There have been no less than
500 articles, whitepapers, videos, seminars
and books on the topic of leadership agility or
adaptability in a VUCA world since our
leadership agility article was published.
• People (KSA) Knowledge / Skills / Abilities / Attitude
• Process (Effective + Efficient)
• Technology (innovation / People / Equipment)
The Agile Model® provides a
roadmap to help organizations
and leaders navigate through
the turbulent waters of today’s
business environment.
The Agile Model® is built from
best practices in organizational
performance and is endorsed
by the American Management
Association (AMA).
The Agile Model® is an
integrated approach, meaning
each driver is a vital force only
when combined with the
others.
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Five Drivers of the Agile Model

Agility in individual leaders, teams or
organizations is driven by five critical
capabilities:

1- A nticipating Change
2- G enerating Confidence
3- I nitiating Action
4- L iberatingThinking
5- E valuating Results.

Each of these drivers must exist within

three enterprise domains (people,
processes, and technology) in order to
create and sustain an agile enterprise.
 1- Anticipate Change:

Interpret the turbulence and trends along with

the enterprise.
No one likes to change except a wet baby.

Anticipating change requires paying attention to

multiple dynamics in the overall environment
including macro-economic, political and cultural
developments; external market, customer and
consumer demands; as well as internal strategic,
financial and workforce related factors.
This requires effective Visioning, Sensing and
Monitoring
 2- Generate Confidence:
Create a culture of confidence and engagement with
all stakeholders especially associates in effective and
collaborative teams.
(grounded / ownership)
Generating confidence requires you to address
issues related to individual and collective capacities
– trust, commitment and high involvement.

Requires effective processes for: Connecting,

Aligning and Engaging
 3- Initiate Action:
• Provide the fuel and the systems to
enable things to happen proactively
and responsively, at all levels of the
organization.
• Initiating action requires you to
ensure there is a shared mindset
that fosters a sense of urgency for
getting stuff done well and positive
accountability for doing so.
• Requires effective processes
for: Bias for Action, Decision-Making
Capability, Collaborating
 4- Liberate Thinking
• Create the climate and conditions for fresh
innovative solutions by empowering,
encouraging, teaching and expecting others
to be innovative.
• Liberating thinking requires you to ensure
openness towards new ideas from all
stakeholders and the means for accepting
innovation.
• Requires effective processes for: Bias for
Innovation, Focusing on Customers and Idea
Diversity
•
 5- Evaluate Results:
• Maintaining a strong focus and feedback
system to continuously learn and
improve from actions and changing
dynamics.
• Evaluating results requires you to
identify critical metrics for success and to
learn relevant knowledge and facts to
improve the actions you take.
• Requires processes for: Creating
Expectations, Real Time Feedback, Fact
Based Measures
What Characteristics
Do Agile Leaders Need?
Leaders Go First
During the Agile
Transformation. They
are Proactive.
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 What is an Agile Leader?
• An agile leader is a person who fosters agile
ways of thinking and working, creates an
environment where teams can do their best
work, and champions agile throughout their
organization.
• Agile Leaders are effective in complex,
uncertain and rapidly changing
environments. This supposes to describe
most leaders today!
•
What is Agile Transformation?

An Agile Transformation is the process

of transforming the organization
structure and culture to one that fosters
true business agility.

There is a significant difference

between those that are now “doing
agile” and the idea of actually “being
agile”. Agile Transformation is a deep
change in mindset and organization
culture.
•
What is the Agile Leader Role during an
Agile Transformation?

• Agile Transformations are a popular activity

right now.

• If you are an agile leader, you may be

wondering what is the role that you play in
an Agile Transformation.

•
 What Do Agile Leaders Do?
• No organization that was successful in their pursuit of agility who did
not have a strong leader guiding the vision for what the organization
can become, motivating people to achieve that vision, nurturing the
pursuit of that vision, and protecting, when necessary, the people
who want that vision from the people who don’t.
• Machiavelli observed, “It must be considered that there is nothing
more difficult to initiate a new order of things; for the reformer has
enemies in all those who profit by the old order.“
• There are people who benefit from the old system, and they are not
simply going to resign their current advantages because someone
proposes a superior system; you have to expect that they are going
to fight to maintain the status quo.
Agile Leaders focus on three things: