Corporate Agility E-Book

Michael Wong

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 268

Veröffentlichungsjahr: 2020

Beschreibung

Integrate Agile methodology into your business with this stunning guide to the latest management techniques Corporate Agility is the must-have guide on adopting Agile methodology for businesses of all shapes and sizes. This visually stunning book delivers six key lessons that you must learn in order to effectively join the Agile world. You'll learn the ins and outs of the traditional approach, helping you answer the questions "Why Agile?" and "Why now?" You'll also discover new, more efficient Agile strategies that will help you lead your enterprise to increased collaboration, more flexibility, and better business results. Based on the latest practice and research, and drawing on years of experience at the author's own leading consultancy, Corporate Agility features a beautiful 4-color design that helps you visualize powerful strategic ideas, so you can understand and implement them right away. Unlike other books on the market, this title helps you reinterpret key Agile management concepts in a way that will work for your specific needs. * Gain a clear understanding of traditional Agile methodology, the history of Agile, and the benefits to organizations of all shapes and sizes * Discover cutting-edge Agile strategies that push Agile thinking forward and increase performance efficiency * Learn the 6 "Agilessons" that underpin all successful Agile transformations * Follow real-world case studies from leading businesses that have successfully made the leap into Agile operations Organizational leaders will love this digestible, forward-thinking guide written by one of America's fastest rising strategic execution gurus.

Leseprobe

Table of Contents

COVER

INTRODUCTION

Notes

DISTINGUISHED CONTRIBUTORS

PART ONE: The Case for Corporate Agility

CHAPTER 1: The Timeless Executive Challenge

Stakes Are High

The Future of Work

Reframing for the Future

Notes

CHAPTER 2: Decide if Agile Is Right for You

A Short Introduction to Agile

Know Your Corporation's Purpose

Is Agile the Answer?

“Danger, Will Robinson!”

Notes

CHAPTER 3: The Time for Agile?

The Foundation of Agile

Trust Your Gut – If You Don't Feel It, Don't Do It

Embarking on Your Agile Journey

Notes

PART TWO: The Agilessons

CHAPTER 4: An Introduction to the Agilessons

Our Journey

CHAPTER 5: Agilesson 1: Initiate with Intent

Journey with the Team

Set Realistic Expectations

Notes

CHAPTER 6: Agilesson 2: Cultivate Your Culture

Agile Begins with Your Change Champions

Mutual Trust Is Key

Failure Is Fine

Geographical Sensitivitiesand Considerations

Notes

CHAPTER 7: Agilesson 3: Transform Your Team

Invest in Your Most Important Resource – Your People

Develop Your Agile Competency

There Will Be Detractors

Evolve the Role of Middle Management

Notes

CHAPTER 8: Agilesson 4: Work Wisely

Keep It Light

Nail and Scale

Focus on the Customer

Notes

CHAPTER 9: Agilesson 5: Measure with Meaning

Why Measure?

Measure Progress Toward Strategic Objectives

Are You Doing Agile?

Being Agile

Monitor Your Objectives

Notes

CHAPTER 10: Agilesson 6: Forge Forward

Is Agile Business as Usual?

Agile Plays Nice

Notes

PART THREE: The Future of Agile

CHAPTER 11: The Future of Agile

The Agilessons Are Agile

Agile in Industry

Purpose to the People

Continuous Evolution

Looking to the Future

Notes

GLOSSARY

ACKNOWLEDGMENTS

INDEX

END USER LICENSE AGREEMENT

Guide

Cover

Table of Contents

Begin Reading

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MICHAEL WONG

corporate agility

INSIGHTS ON AGILE PRACTICES FOR ADAPTIVE, COLLABORATIVE, RAPID, AND TRANSPARENT ENTERPRISES

Copyright © 2021 by Michael Wong. All rights reserved.

AgilessonsTM is a trademark of DayBlink.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

Photography by Michael Will, Matthew D. Hodges, John Andrada-www.jandradaphotography.com, and professional headshots provided by each contributor.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, [phone], fax [phone], or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, [phone], fax [phone], or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at [phone], outside the United States at [phone] or fax [phone].

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data is Available:

ISBN 9781119652267 (Paperback)

ISBN 9781119652281 (ePDF)

ISBN 9781119652212 (ePub)

Cover Design: Wiley

Cover Image: © D_A_S_H_U/Getty Images

To all the genuinely people-centric corporations that endeavor to uplift the human experience while delivering on the opportunities of capitalism.

To my parents, Ron and Tesi, who successfully navigated our family through the challenges and joys of middle-class America.

And to my Sorin, Melina, Lennon, and Maryn, thank you for your love, support, and sacrifices while Daddy focused on this project.

INTRODUCTION

DayBlink Team, February 7, 2020

Aloha! When Wiley first approached me to collaborate on a book, I was a bit apprehensive. The time required to research, plan, and write a thoughtful and novel book would be challenging, to say the least. It wasn't until we landed on a subject that was both timely and broadly applicable to my corporate clients that I agreed to join them on this challenging and rewarding journey. From my time growing up in Hawai'i to founding my own company, DayBlink Consulting, I've experienced my fair share of ups and downs. Through them all, I've learned and lived a core value which was taught to me at a young age – keep people at the forefront, whether it's family, team members, or customers. That's why, when I first came across Agile, I knew it was a special way of working and one I needed to champion, to help others understand the ideas that gave so much to me.

If you've picked up this book, you're most likely already familiar with how Agile frameworks, toolkits, and practices have transformed parts of the business world. What was once just an approach to software development, Agile has become an increasingly viable and present methodology employed by some of the largest, most successful corporations and organizations worldwide, including Microsoft, AT&T, Google, Spotify, IBM, 3M, and more.1,2 In fact, even the United States federal government requires an Agile methodology be used for many of their IT contracts and in some other non-IT sectors as well.3 Whether you want to increase revenue, innovate technology, engage your workforce, or be able to thrive under uncertainty and rapid change, Agile approaches all challenges head on with one common theme: to get things done rapidly. Whatever your aim may be, corporate agility may be a prudent path to pursue.

Still, many leaders will fail to see its potential. According to a global survey by CA Technologies, despite increased awareness of Agile methods at the corporate level, executives still acknowledge them primarily as solutions related to software development and IT.4 This sentiment is due in part to a misunderstanding or misrepresentation of Agile: to many, it is an overused word that comes with its share of baggage. Despite this notion, I'm sure at some point, someone has tried to sell you Agile, pushing something that sounded too good to be true. Though passionate and with good intention, some of these Agile zealots undermine what being agile has to offer. They preach the processes and frameworks which, without a true understanding of the timeless truths embedded in the values and principles of the Agile Manifesto, will result in just doing Agile for the sake of Agile.

For those truly wanting to learn, ‘ike loa, and pursue corporate agility, this book seeks to dispel the aforementioned confusion about Agile. When utilized with forethought, deliberation, and careful consideration, Agile can be used to successfully navigate through the constant disruptions and changes that corporations face. For over twenty years, I've worked as a strategic management consultant advising hundreds of companies to develop their strategies, implement new programs, and deliver market value. In this time I've found that what clients really want, what humans inherently seek, is clarity and results. I don't want to just demystify Agile – I want people to understand and internalize these timeless truths, in a pragmatic way, so they can use them to realize their goals. With the lessons in this book, you'll explore how Agile can be applied within and across the corporation to achieve your goals and desired results.

To demystify Agile, first understand its origins. Ideas similar to the values and principles of Agile first appeared in the 1970s. In the 1990s, startups and smaller organizations began utilizing these ideas, helping them execute faster than top-down, hierarchical models ever did. It wasn't until the new millennium, however, that a group of seventeen software developers, holed up in a snowy resort in Utah, came to define Agile in a more comprehensive, unified way. As a group, they published the Manifesto for Agile Software Development, popularly known as the Agile Manifesto.

Following the creation of the Agile Manifesto, Agile began proliferating in the larger corporations that had shied away from it before. And while some have found success, many others have discovered that Agile is just not that easy. This is because Agile is often approached as a one-size-fits-all solution. However, it's quite the opposite. A startup's Agile journey will be vastly different from that of a global corporation. It is important to understand these differences and account for the various styles of management, work cultures, and what is considered business as usual. This doesn't mean, however, that one has a better chance of success than the other; it just means that the path to corporate agility will be different, and that's okay! Agile can be flexible when used correctly. It's all about understanding how best it can be applied in your corporation.

Do not be swayed by particular Agile success stories or tales of failures. Instead, look to agilists who have had multiple experiences of transforming corporations and can help you understand, objectively, what separated corporations that succeeded from corporations that failed. Luckily, you're reading this book. It utilizes a data-driven approach, compiling case studies, first-hand interviews, professional experiences, and actionable advice to help get you started on your unique path to corporate agility. And while there are already many tactical "how-to" books on Agile, I've decided instead to focus on what the data suggests, and highlight why, therefore, and how, strategically – an objective perspective on both the good and bad of Agile that will be shared with you.

Ultimately, your enterprise's success or failure depends on the people within. I truly believe this and actually founded DayBlink on this principle: our greatest asset is our people, our family, our ‘ohana, and that to be excellent, we have to keep this mentality at the forefront. Through this approach we have achieved incredible growth and obtained numerous awards since our inception, like 2018's Fastest Growing Firms as awarded by Consulting magazine. And we practice what we preach – we are an Agile-driven company.

Formed with our people first, it's not hard to see why our values and principles, like trust and continuous improvement, are so similar with that of Agile. So much so, that the DayBlink journey, our huaka'i pilikin, from an older way of working to Agile, was seamless. Over the years, Agile has further proliferated and expanded within DayBlink, its values eventually driving all of our actions. In fact, this very book was developed and written utilizing incremental releases and continuous feedback from readers like you.

On a parting note, I want to clarify that I am not pushing a particular agenda. In fact, quite the opposite. I'm always the first to say that Agile is not the answer for everyone. It's a long and arduous journey to get it right. But when you do, well, you'll just have to read on to find out.

Michael Wong

Founder, DayBlink

2020

Notes

1

   Matarelli, Maria. “This Is Why Fortune 500 Companies Use An Agile Approach To Process Improvement.” Medium. ART marketing, November 21, 2017.

https://artplusmarketing.com/this-is-why-fortune-500-companies-use-an-agile-approach-to-process-improvement-d4095d410a61

.

2

   Ajmal, Sajid. “How Agile Scrum Training Transformed These 5 Companies.” QuickStart Technology Training. QuickStart, May 4, 2018.

https://www.quickstart.com/blog/how-agile-scrum-training-transformed-these-5-companies

.

3

   “Agile Acquisition & Contracting in Government – 2017.” REI Systems. Accessed April 30, 2020.

https://www.reisystems.com/agile-acquisition-and-contracting-in-government-2017/

.

4

   “Survey Data Shows That Many Companies Are Still Not Truly Agile – Sponsor Content from CA Technologies.”

Harvard Business Review

, March 29, 2018.

https://hbr.org/sponsored/2018/03/survey-data-shows-that-many-companies-are-still-not-truly-agile

.

Distinguished Contributors

DISTINGUISHED CONTRIBUTORS

Arie van Bennekum

Agile Manifesto, Co-Author

Wemanity Group, Thoughtleader

Arie has a background as a developer and technical designer, with over 30 years experience in Agile transformations. He believes people are the component that makes Agile successful.

Marcus Johnson

Highmark Health, SVP, Enterprise Effectiveness

Marcus is a seasoned executive helping companies realize financial and operational excellence through large scale business transformation. He brings consulting and industry experience to lead change in areas including: operating model design, process optimization, automation, and Agile.

Louis Toth

Comcast Ventures, Co-Founder

Louis is a co-founder and former managing partner at Comcast Ventures, helping Comcast innovate for over 20 years. He has prior experience in Investment Banking and holds both undergraduate and graduate degrees from the University of Pennsylvania.

Phil Koserowski

The Leading Hotels of the World, VP, Marketing Executive

As VP at The Leading Hotels of the World, Phil is responsible for LHW's Global brand strategy, customer acquisition, engagement and loyalty as well as customer facing touchpoints including web, mobile, advertising, social media and emerging channels.

Allen Broome

MediaKind, CTO

Allen is an experienced technology executive with expertise in consulting, software engineering, and successful product development utilizing Agile methodologies.

Vamsi Tirnati

DXC Technology, CTO of Transportation

Vamsi is an accomplished Global Enterprise IT leader with over 22 years of experience defining and executing technology strategy and digital transformations with innovative and growth-oriented solutions for F100 companies.

Michael Piker

Philip Morris International, VP, Global Total Rewards, Employee Relations, Agile Performance

Michael is a seasoned executive who is responsible for leading the transformation of Total Rewards, Employee Relations and Agile Performance Strategy at Philip Morris International (PMI) as they design a smoke-free future.

Steve Elliott

Atlassian, Head of Jira Align

Steve is an established software executive with 20 years of technology experience in a variety of industries. He is currently head of Jira Align at Atlassian, after his Agile company was acquired in 2019.

Max Ekesi

Whole Foods Market, Agile Program Manager

Max has over 12 years of experience leading IT Transformation efforts by leveraging Agile methodologies and building high functioning teams and cultures.

Kishore Koduri

Ameren, Director, Enterprise Architecture, Resilience and Agile Office

Kishore is an accomplished, competent, and goal-oriented thought leader in the Agile space with valuable experience transforming service and product-based organizations through the effective roll-out of Agile and user-centered culture.

Laurie Nicoletti

Mastercard, VP of Product Development

Laurie, a highly skilled and accomplished Agile Transformation Leader, focuses on product development, commanding PI planning sessions and WSJF backlog grooming with global teams.

Sondra Ashmore, Ph.D

Berkley Technology Services LLC, AVP and Business Partner

Sondra is the co-author of Introduction to Agile Methods. She has taught Agile to university students and has worked with Agile teams for over 12 years. She advises W.R. Berkley companies on leveraging technology to optimize business performance.

Gilli Aliotti

CBS Interactive, VP, Project Management

Gilli is an accomplished Senior Executive and thought leader with more than 25 years of success across the media, entertainment, information technology, education, nonprofit, and event management industries.

Anthony Olsen

Windstream Enterprise, Product Owner

Anthony specializes in mobile and web-based applications. His primary focus is managing CRM integrations and softphone launches using Agile methodologies.

Elaine Stone

Capital One, Director, Agile Portfolio, Consumer Identity

Elaine, a key leader in supporting Capital One's disruption of the financial services space, is a focused professional with wide-ranging experience in operations, Agile methodologies, process optimization, program and project management, and product management and strategy.

Dr. Steve Mayner

Scaled Agile, Inc., SAFe Fellow & Principal Consultant

Steve is an expert thought leader, speaker, coach, and consultant with over 30 years of proven performance successfully delivering customer-driven technology solutions and innovations.

Ashley Craft Fiore

Honeywell, Director, Agile Program Management

Ashley is a future-focused Technology Executive with substantial success directing digital transformation and software development strategies. She integrates her programming and architecture experience to help guide businesses while driving technological innovations.

Junius Rowland

AutoZone, IT Manager, Agile Delivery Office

Junius is an enthusiastic professional with substantiated successes in Enterprise Agile transformation, Information Systems, and Project Management. He has a passion for exceeding organizational goals by increasing productivity, improving quality, and reducing cost.

Joshua Jones

StrategyWise, CEO

A lifelong founder, Joshua leads StrategyWise, a leading data science consulting firm that helps clients maximize operational effectiveness through data science and artificial intelligence.

Susan Marricone

Honeywell, Director, Agility Transformation Leader

Susan Marricone is a transformation leader with experience in Business Agility and Agile. She energizes strategic alignment and operational excellence in enterprises of all sizes to set them up for success.

Scott Ambler

Disciplined Agile, Co-Founder

Project Management Institute (PMI), VP

Scott is the co-founder of Disciplined Agile (DA)–(acquired by PMI) and creator of the world's only comprehensive Agile body of knowledge that provides straightforward and practical guidance to help individuals, teams, and enterprises choose their “ways of working.”

Michael K Sahota

SHIFT314, Speaker, Trainer, & Consultant

Michael has written two books and has received accolades on his Certified Agile Leadership Trainings. He guides and teaches leaders how to develop Evolutionary Capabilities through culture, leadership, and conscious change.

Steven HK Ma

No Moss Consulting, Chief Purpose Officer

Steven is an expert in Agile organizational design who inspires purpose-driven people at enterprise scale. His professional purpose is to make work more human from helping executives change mindsets; to coaching high-performing teams; to creating market-topping products.

Jennifer Morelli

Grant Thornton, Principal, Business Change Enablement

Jennifer specializes in large-scale business transformation relating to technology, organizational, and business process change. She has experience in the strategy, development, and delivery of organizational change management, communications, and training programs.

Linda Rising

Independent Consultant

Linda has authored or edited five books and numerous articles. She is an internationally known presenter on topics related to patterns, retrospectives, influence strategies, Agile development, and the change process. Further, Linda drives successful organizational change.

Stacey Ackerman

Agilify Coaching & Training, Founder

Stacey is an Agile trainer, coach, and marketing professional. She also writes on Agile marketing for MarTech Today and the Business Agility Institute. She is passionate about helping marketing organizations around the world learn how Agile Marketing can help them cut through the red tape and rapidly deliver high-quality campaigns.

Bob Payne

LitheSpeed, SVP, Agile Transformation

An early adopter of Extreme Programming (XP), Bob has worked exclusively as an Agile Coach and practitioner since 1999. Bob has engaged in Enterprise Agile Consulting with LitheSpeed as SVP of Agile Transformation.

David Fisher

North Highland, Principal

David is the global Agile change management lead at North Highland. He uses his knowledge and experience to accelerate mission-critical changes for clients and the community by coaching leaders and leading teams through transformational change.

Dave Witkin

Packaged Agile, Principal

A seasoned agilist focusing on large-scale transformation, Dave helps government agencies and their contractors realize the promise of Agile, reducing failure rates on large government software programs through training and coaching.

Art Moore

Clear Systems LLC, President

Art is a Lean-Agile coach, mentor, and trainer focused on helping individuals, teams, and organizations achieve corporate agility at sustainably higher levels. He has over thirty years of consulting and leadership experience in government and commercial sectors.

Crawfurd Hill

Encompass Corporation, Corporate Agility Director

Crawfurd has led Agile transformations across a wide variety of industries, with a foundation in digital development. He has a great ability to communicate and inspire change.

Colin Ferguson

North Highland, Agile Transformation Principal

Colin has over 18 years of hands-on enterprise and team transformation experiences across many industries. He is known for his ability to coach and mentor team members and leadership to develop and embrace an Agile mindset.

Christen McLemore

HeyMac Consulting LLC, Founder

Christen has decades of practical experience coaching, leading Agile transformations and consulting Fortune 100 companies. Drawing from these experiences, she founded her own Agile consulting business, HeyMac Consulting, to make a greater impact focusing on the role of leaders and managers in Business Agility.

Joseph Murray, Ph.D

DayBlink Consulting, Partner

Joseph is a seasoned management consultant with extensive experience in the telecommunications and media sectors. Prior to joining DayBlink Consulting, he led and delivered numerous large-scale business transformations at companies across the globe while with Ericsson Consulting, KPMG, Deloitte Consulting, and AT&T.

PART ONEThe Case for Corporate Agility

The need for adaptive and rapid evolution has never been greater. The time to change is now. Master the timeless “truths” of Agile and find your unique path to corporate agility.

CHAPTER 1The Timeless Executive Challenge

In an era of accelerating change, executives deal with disruption on a regular basis. History teaches us that disruption is neither new nor is it going away. Embrace the opportunity that comes with disruption and transform your corporation into the organization of tomorrow.

Walter's world was upside down. There was a sense of normalcy as he departed Los Angeles, California. It was a critical business trip, maybe career defining, and Walter knew it. One of those make-or-break meetings awaited him in New York City. But the trip felt immeasurably longer than usual. Not in hours, not in distance, but in thoughts that were racing through his head. As he sat in his first-class seat, the cabin shook left and right, and up and down as he flew high above the Rocky Mountains. He grabbed his armrest and wondered how he was going to navigate his way out of this one. This seemed different.

Even though many of his friends and colleagues thought of him as a little too high-energy, Walter was well-liked and a capable, confident, charismatic, and driven leader.1 Thinking back to his fast-tracked career, he realized he had a unique journey and experienced much in a short time. Far earlier than many of his contemporaries, he became CEO of the Midwest-based Laugh-O-Gram Corporation but, for various reasons, the corporation failed just two years after he took over the helm.2 The industry was undergoing swift change and he placed a bet, putting his company ahead of anticipated customer demand. When the customers didn't materialize, neither did the revenue. Any executive in charge of a company that crashes and burns through the United States bankruptcy courts will have their confidence shaken.

But not Walter; he learned from this failure and pivoted. Even with the weight of significant financial hardship on his shoulders, he soldiered on, moved to Southern California, worked hard, and took his career in a completely different direction. Unfortunately, that failed, too. The move was too far outside his core strengths. He learned the lesson of being purposeful and intentional. Again, he took inventory, adjusted, and plotted his next move.3

Shortly thereafter, he returned to the C-suite of another company, Hyperion, where his long hours and innovative product vision would ultimately translate to significant financial success. Unfortunately, soon after the corporation's widely successful new product started churning cash, another business setback befell Walter.4

On his way out to New York City for his big meeting with Universal Studios, he received word. His worst fears were true. Everything he had worked so hard for at his latest company was gone. Due to a contractual loophole, Universal overtook the IP. To add insult to injury, he also found out that virtually all his talented developers whom he had hired and trained to support the product, and whom he had treated like family, had resigned and joined the newfound competitor. His team was gone, his trust in others shaken. He learned from this.5

This was another one of Walter's classic public failures. Instead of lawyering up and fighting for what one could argue was rightfully his, he returned to California. Though only days removed from an epic failure, Walter moved on. It was on his return trip home that he developed his next innovation and career defining accomplishment … Mortimer.

Failure wasn't going to deter this determined man. He was excited about this new direction. Pulling from the lessons he had learned in the past, he built a new team, modified his management style, and focused on Mortimer. But his wife, Lillian, wasn't convinced Mortimer was the right name; sounds a little too pompous for her liking.6 Accepting feedback from anyone, including his inner circle, was unnatural for Walter, but he trusted Lillian, so he listened to her advice. There was no “team” member closer to him than his wife; there was unquestioning trust. Walter, or Walt as many of his friends and colleagues called him, decided to rename his new creative offering. Mortimer Mouse became Mickey Mouse, who grew to be the most popular animated character known around the world.7

The story of Walt Disney's struggles and successes are well-documented. Though nearly a century ago, the challenges that Walt faced still exist today. Characters and storyline details differ, but lessons about disruptors (failure, trust, team, and purpose) apply to executives in the Fortune 500 today just as they did a hundred years ago – and they will a hundred years hence. The challenges executives face today are not unique in history. The themes repeat themselves. They are timeless.

Stakes Are High

Data shows that Fortune 500 companies and their executives are experiencing greater volatility than ever before, a reality that will only continue to proliferate.

The obstacles that Walt faced and overcame on his path to success are neither unique to him nor his time; rather, they are situations that every executive will likely encounter on their own journey. Take, for example, today's leaders who must work to keep their organizations relevant in an age of accelerating change. This change is caused by different levers; however, their solutions stay the same, but more on that later.

For example, consider that companies in 1965 stayed in the S&P 500 index for an average of 33 years.8 By 1990, that tenure had diminished to 20 years. Over the next few decades, the rate has continued to fall to where it is now, where over half of the current S&P 500 companies are predicted to keep their title for less than 10 years. No matter the industry or sector, this forcing function is reality and will only continue to proliferate. To make matters worse, with the advent of globalization and modernized technologies, barriers to entry have fallen, giving way to large numbers of market newcomers. The large, more established corporations are beginning to lose to small, nimble ones that are better prepared to solve today's challenges and maneuver through today's changing environment, further exacerbating the volatility that large organizations feel. PwC shares this sentiment: “[Consider] the scale and pace of change – today's forces of disruption can shake up an entire industry sector in less time than it takes most companies to update their IT systems.”9

Furthermore, long-running executives, who are armed with the tools to succeed in traditional environments, but not today's disruptive ones, are often unprepared to face these newcomers. To explain, a study from Innosight found that executives have a “confidence gap” or a blind spot regarding novel competition. This is because these executives believe their competition will come from existing players. This is not the case as small and mid-tier companies are often the most effective disruptors, quicker to adapt and deploy emerging technologies and modern ways of working. Recently, the amount of these market disruptors has risen, with more and more executives feeling the pressure. Not all have been able to deliver and, as such, average tenure for C-suite executives has decreased across the board.

Executive Team Tenure

The average tenure of the C-suite continued its decline into 2019, putting increased pressure on executives to deliver tangible results rapidly.

Source: Data from Korn Ferry, 2017 and 202010

Spotlight

The Age-Old Executive Challenge

Louis Toth

Comcast Ventures, Co-Founder

After a stint in Investment Banking and earning his MBA at Wharton, Louis Toth co-founded Comcast Ventures to help Comcast innovate for over twenty years. Through this experience, Toth found one thing to be clear: “When you have any large organization with hundreds of thousands of employees, trying to get that organization to think about the future is difficult.” Toth stresses that those who are unable to circumvent this are likely to experience the same demise as once-behemoths like Blockbuster, Eastman Kodak, and others, especially in today's disruptive day and age.

Toth believes incentivization is an impediment to this shift from a short-term mindset, especially at the “leadership level, whose compensation is tied to quarterly results – it's hard for them to be thinking anything other than tactically.” To illustrate, Toth cites the early stages of Coronavirus disease (COVID-19) Pandemic in the United States: “Many were watching and listening. They knew how severe it was in other parts of the world. Still, we couldn't see the immediate impact and behavior didn't change until it was too late.”