Business Agility: Sustainable Prosperity in a Relentlessly Competitive World (Microsoft Executive Leadership Series)

179 Pages·2009·2.49 MB·English

by  Michael H. Hugos

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Praise for Business Agility: Sustainable Prosperity g Business Agility
o
• Case study examples from the author’s
in a Relentlessly Competitive World s
own experience to illustrate concepts of
responsiveness and techniques of agility
”This is the next evolution of business strategy. This book gives leaders a new
B usiness agility determines whether your organi-
Business Agility: Sustainable Prosperity in a model of business agility that balances the need for standardized business
zation will become a victim of our diffi cult
Relentlessly Competitive World is a succinct guide processes to drive effi ciency with the ability to adapt to marketplace and customer
economic times or if it will learn to reap new
and road map for becoming more responsive, expectations. Hugos makes the business case for adaptability and resiliency
just at a time when it is needed most.” profi ts by continually responding to changing
agile, and better positioned to deal with ongoing
market conditions and evolving customer desires.
and constant change. Mykolas Rambus of Forbes —John Babiarz, Group President, ARAMARK Healthcare
Media observed, “Michael delivers a host of “We are a $2 billion commodities manufacturer of foodservice disposables and face Author and business agility practitioner Michael
actionable new ideas for organizations who ‘get’ many of the challenges described by Mr. Hugos. From our experience in the last several Hugos explains that for everything from blue
business agility, and an unfl attering view of the years, I believe business agility and responsiveness is one of the only competitive jeans to fuel oil and hotel rooms to accounting
future for those who don’t. His fresh insights on advantages we can use today to differentiate us from our competitors.” services, customers are willing to pay slightly
how to win in today’s turbulent marketplace are —Tom Pasqualini, EVP Global Supply Chain, Solo Cup Company B higher prices for products and services if they
more relevant than ever.” are responsive to their needs. This breakthrough
“Dynamic! Meaningful! Easy to read and understand! Mike Hugos has captured all u
guide is your company’s how-to manual for
MICHAEL H. HUGOS is a thinker, the aspects that must be successfully integrated for today’s fi rms (small and large)
s putting this profi t transformation to work. Part
speaker, and practitioner of to grow their bottom line. A special area of interest is how he identifi es successful
of the Microsoft Executive Leadership Series,
business agility and agile IT system military approaches that can be used by the civilian business sectors.” i
n Business Agility: Sustainable Prosperity in a
development methods. He spent —William G. Pagonis, Lieutenant General, U.S. Army (Retired) and
Relentlessly Competitive World outlines world-
six years as chief information former president of Sears Logistics Services e
class approaches every “C-level” executive can
offi cer (CIO) for Network Services s
“Business Agility transcends well beyond the mere ‘must read’ to a defi nitive employ to achieve competitive advantages and
Co., a multibillion-dollar national
‘must do.’ Michael provides a thought-fi lled road map to transform any s greater profi tability.
distribution cooperative where he developed a
organization into an agile and responsive team capable of winning in today’s
suite of supply chain and e-business systems that complex and ever-changing marketplace.” A This book discusses:
transformed the company’s business model from
—Steve Poplawski, SVP Logistics & Supply Chain, True Value Company g
old-line distributor to value-added provider of • Powerful trends shaping business and
Business
products and supply chain services. He is a two- “Given the global economic crisis, now more than ever, agility is at the top of i our lives in this century
l
time winner of the CIO 100 Award, and a recipient every company’s most wanted list. This book carefully lays out practical approaches i
• Challenges we must confront and master
of the InformationWeek 500 Award and the to fi nding the right balance for your organization between effi ciency and t
Premier 100 Award for career achievement. He is responsiveness. Current business examples and historical references help describe and y
• Practical principles, strategies, and
also author of Building the Real-Time Enterprise defi ne approaches to leaping ahead and reaping the ultimate rewards of not just Agility
technologies available to address these
and Essentials of Supply Chain Management, surviving, but thriving in today’s very challenging global business environment.”
challenges
Second Edition, both published by Wiley. —John C. Moon, Corporate Vice President & Chief Information Offi cer, Johnson Outdoors, Inc.
• Three underlying feedback loops that
www.MichaelHugos.com “The concept of agility has been around for some years, but this is where
drive all responsive organizations
I fi rst saw it in terms of hard and well-defi ned business benefi ts. It is a highly
accessible book, taking the reader through all these concepts in a manner
• Best ways to use technology to empower
Sustainable Prosperity in a Relentlessly
that puts the topic across in simple terms.”
Jacket Cover Image: © Getty Images your people
—Alagu Balaraman, Vice President & Process Architect, Britannia Industries Ltd.
Competitive World
• Two central themes for making a
responsive organization happen: desire
and innovation
Michael H. Hugos
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Business
Agility
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Business
Agility
Sustainable Prosperity in a
Relentlessly Competitive World
Michael Hugos
JohnWiley&Sons,Inc.
iii
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LibraryofCongressCataloging-in-PublicationData
Hugos,MichaelH.
Businessagility:sustainableprosperityinarelentlesslycompetitive
world/MichaelHugos.
p.cm.–(Microsoftexecutiveleadershipseries)
Includesbibliographicalreferencesandindex.
ISBN978-0-470-41345-6(cloth)
1.Entrepreneurship. 2.Competition,International. 3.Globalization.
4.Organizationalchange. 5.Technologicalinnovations. I.Title.
HB615.H852009
658.4(cid:2)062–dc22
2008042934
PrintedintheUnitedStatesofAmerica.
10 9 8 7 6 5 4 3 2 1
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To my wife Venetia
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Contents
MicrosoftExecutiveLeadershipSeries:SeriesForeword xi
Preface xiii
CHAPTER1 ResponsivenessTrumpsEfficiency 1
TheWorldBehavesLikeaStockMarket 2
EfficiencyIsOnlyHalfoftheEquation 4
TraditionalBusinessModelsAreComingUpShort 6
EfficiencywithoutResponsivenessWillKill
YourCompany 7
CustomerRelationshipsAretheMost
ValuableAsset 8
TheValue-AddedPaperCup 9
AMostAmazingInnovation 11
UsingInformationTechnologytoMakeMoney 13
AllProductsandServicesHaveTwoComponents 14
Notes 15
CHAPTER2 GeneratingAlpha 17
Value-AddedServicesandEntrepreneurial
EmployeesGenerateAlpha 18
EscapefromtheTrapofCommoditizedJobs 20
WelcometotheFirstWorld—NowYourLabor
RatesAreTooHigh 22
NewOpportunitiestoCreateValue 23
ResponsivenessEnablesaHigherStandard
ofLiving 24
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viii CONTENTS
FixtheOpportunityGap 25
ProfitPotentialoftheSelf-Adjusting
FeedbackLoop 30
TowardaResponsiveBusinessOperatingStrategy 31
UsePeopleandComputersEach
forTheirStrengths 32
Notes 34
CHAPTER3 PrinciplesoftheResponsiveOrganization 35
MoreCoordination,LessControl 36
EndofControlAsWeKnowIt—TheDynamics
ofSwarming 39
LeadershipfortheResponsiveOrganization 45
DynamicsoftheResponsiveOrganization 47
StructureoftheResponsiveOrganization 52
Notes 54
CHAPTER4 Speed,Simplicity,andBoldness 55
FiveThemesfromTheArtofWar 56
InsightsfromPeopleWhoHaveBeenThere 59
Observe—Orient—Decide—Act 62
ManeuverWarfare 65
ModernWarfighting 69
Notes 73
CHAPTER5 StrategicallyFocused,TacticallyResponsive 75
AwarenessDrivesEffectiveStrategy(Loop1) 76
BalancingMeansContinuousImprovement
(Loop2) 77
AgilityMeansMoveItorLose(Loop3) 81
ReinforcingFeedbackforCreating
SomethingNew 85
PullingItAllTogether 86