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Senior Leadership Teams and the Agile Organization builds on existing knowledge
in the leadership, teams, and strategic management literatures to examine and
explore how senior leadership teams drive the dynamic capabilities of organizations.
Organizational agility is a key dimension of organizational performance. This
volume focuses on senior leadership team processes and attributes that facilitate
organizational agility and the organization’s capacity to perform and rapidly pivot
in response to shifting strategic demands. Chapters summarize the current state of
knowledge, examine past research and theory, define research and theoretical gaps,
and consider how to address these gaps. In so doing, they offer an understanding
of how senior leadership teams drive and enable organizational activity.
The book is essential reading for researchers and professionals looking
to understand the intersection of leadership, team dynamics, organizational
psychology, organizational psychology, and strategic management, particularly
in relation to organizational agility and the senior leadership team.
List of Contributors ix
Series Foreword: Senior Leadership Teams and the
Agile Organization xi
Index 363
CONTRIBUTORS
Editors
Stephen J. Zaccaro, George Mason University, USA
Contributors
Dorothy R. Carter, Michigan State University, USA
Jay A. Conger, Claremont McKenna College, USA
Kristin L. Cullen-Lester, The University of Mississippi, USA
Laura Dannhäuser, Claremont Graduate University, USA
David V. Day, Claremont McKenna College, USA
Spenser M. Essman, University of Houston, USA
Peder Greve, University of Reading, UK
Ciaran Heavey, University College Dublin, Ireland
Michael A. Hitt, Texas A&M University, USA
R. Michael Holmes Jr., Florida State University, USA
Justin M. Jones, The University of Georgia, USA
Maheshkumar P. Joshi (Mahesh), George Mason University, USA
Yan Ling, Oakland University, USA
Sal Mistry, University of Delaware, USA
Anthony J. Nyberg, University of South Carolina, USA
x Contributors
Who could have foreseen at the time that this volume of the SIOP Organizational
Frontiers Series was commissioned that society, and especially work organiza
tions, would be confronted by a series of events that would challenge us all, not
merely to continue to work on meeting our organization’s needs and goals, but to
try to survive as a going enterprise. As such, this book’s focus on organizational
agility is not only prescient, it is timely. Not surprisingly, reports can routinely
be found in the news where the senior leadership teams of work organizations
did or did not rise to the occasion in order to meet the challenges and opportuni
ties created by disruptions to their operation. Thus, this volume’s emphasis on
shared leadership is also spot on. All this implies clearly and as pointed out at
in its introduction chapter, “organizations need to be agile”. Accordingly, in this
volume the reader will find a set of original and compelling chapters about how
this might be done.
As the Editor of the Frontiers Series at the time who championed this volume,
I am very pleased to see it come into fruition. As one of the Editors of this par
ticular book and having a role in assembling an extraordinary group of chapter
authors and in guiding their writing, I feel I learned a lot. And, in turn, speaking
for the Editorial team, Steve, Nathan and myself, I hope that as a reader you will
not only come away with a greater understanding of the nature of organizational
agility and its antecedents, but also be better prepared to lead or advise others to
lead work organizations in the face of what will certainly continue to be a vola
tile and dynamic business environment.
Richard J. Klimoski
1
SENIOR LEADERSHIP TEAMS AND
THE AGILE ORGANIZATION
Introduction
DOI: 10.4324/9780429353161-1
This chapter has been made available under a CC-BY-NC-ND 4.0 license.
2 Stephen J. Zaccaro, Nathan J. Hiller, and Richard J. Klimoski
roaring back in late 2021. Pilots are highly skilled and require continual certifi
cation (for each specific type of plane)—so airlines could not just immediately
start using furloughed, laid-off, or retired pilots—these pilots needed recertifica
tion, for which there was a long line. It turns out that the airline industry was
assuming a six-year recovery instead of the 18-month recovery that actually
occurred (Thompson, 2022), making the pilot shortage, which was already in
existence pre-COVID-19, much more painful for airlines and passengers in the
subsequent months and years.
This example demonstrates the challenge with agility. Senior leadership
teams made decisions due to a massively shifting environment (the onset of
COVID-19), which in turn set them down a path that, while cutting costs to
alleviate a short-term problem, made it more challenging to ramp up operations
or capture market share from competitors when the situation shifted again. How
ever, some senior leadership teams saw things differently in the airline indus
try—reconfiguring and slashing costs while simultaneously ensuring that all of
the complex pieces of the system (including human capital) were ready to reac
celerate quickly and enter new markets (Tully, 2021).
These challenges and issues played out across almost all industries and
sectors in slightly different ways and created an extremely challenging operating
environment. Indeed, despite substantial government aid, there was still a
roughly 33% increase in small business failures during the first year of the
pandemic (Sheffey, 2021).
top management team processes (Hambrick, 1994; Simsek et al., 2005). This
construct, broadly defined as “the degree to which the group engages in mutual
and collective interaction” (Hambrick, 1994, p. 188), includes both social and
task processes and suggests the existence of emergent states such as cohesion
and shared cognition. While this construct helped research on top management
teams move forward, differentiating and understanding nuanced team processes
and emergent states is a challenge when working with such a broad construct,
and as a result, we have a need to understand the cognitive and relational under
pinnings in the upper echelons of organizations (Neely et al., 2020). For exam
ple, Stewart and Amason (2017, p. 13) noted that:
Despite three decades of research on TMTs, little is still known about the actual
processes by which TMTs influence actions and performance in firms . . .
[past research] have offered some insight into relationships, but little under
standing of actual TMT decision making or strategic integration processes
that explain why and how TMTs influence some firms to perform better
than others.
applicable to the organizational existing status and future strategic goals; are
these changes potentially benefit an organization; can organizational actually
do something about those changes.
(pp. 121–122)
The facilities for such responses most likely reside in the cognitive capacities
of the top management team (Heavey & Simsek, 2017; Helfat & Peteraf, 2015),
as well as in the information technology capabilities across the organization
(Werder et al., 2021).
Doz (2020) described strategic sensitivity as a key aspect of strategic agility.
Such sensitivity refers to “sensing and framing opportunities and threats in new
insightful ways—as they emerge” (p. 2). According to Doz, strategic sensitivity
can entail detecting new patterns in the strategic environment, a process that is
hampered by the tendency of organizational leaders to be biased toward using
existing mental models guiding strategic interpretations and toward attending
mostly to evidence confirming these mental models. Thus, organizational agility
rests on the abilities of strategic decision makers to engage in frame switching
and to think in flexible ways that minimize cognitive biases (Baškarada & Koro
nios, 2018; Nelson et al., 2010; Teece et al., 2016).
Strategic responsiveness also includes the ability of the organization to react
effectively as a system to environmental changes. Research on organizational
agility specifies this systemic responsiveness as a function of the organization’s
dynamic capabilities (Baškarada & Koronios, 2018; Teece et al., 2016; Walter &
Raetz, 2021). Organizations possess particular resources that become critical in
responding to environmental events. Teece et al.’s (2016) definition of organi
zational agility (see Table 1.1) identified it as the firm’s capacity to redeploy its
resources around “higher-yield” activities to maintain competitive advantage.
They articulated three sets of dynamic capabilities contributing to agility: (1)
“identification, development, co-development, and assessment of technological
opportunities (and threats) in relationship to customer needs (the “sensing” of
unknown futures);” (2) “mobilization of resources to address needs and opportu
nities and capture value from doing so (“seizing”);” and (3) “continued renewal
(“transforming” or “shifting”)” (p. 18). The first capability cluster reflects the
sensing capacities defined earlier. The second refers to the redirection of current
resources and systems toward needs suggested by environmental changes. The
third cluster reflects the capacity to continually learn, innovate, and transform.
All three sets of these capabilities are built into the processes of strategic deci
sion makers and inculcated throughout the organization. Indeed, in agile organi
zations, dynamic capabilities are entwined with their business model (Teece,
2018), or “the design or architecture of the value creation, delivery, and capture
mechanisms employed” by a business (Teece, 2010, p. 191).
A common element in the definitions in Table 1.1 is that agility includes
speed and nimbleness in effectively responding to environmental changes.
10 Stephen J. Zaccaro, Nathan J. Hiller, and Richard J. Klimoski
Youssef (1992) argued that competitive advantage for firms should be based
not only on costs and quality but also on timeliness of innovation and response.
He noted that agile organizations implement faster product development pro
cesses and align human resources accordingly. Harraf et al. (2015) argued that
balancing decentralized and centralized power contributed to speed of response.
They noted that “when lower-level employees have some authority, responses
to the environment are faster and more accurate” (p. 679). However, they also
argued that, in times of crisis, speed is enhanced through more centralized deci
sion-making by senior executives. This suggests that to foster agile responding,
TMTs need to establish a climate of devolved decision-making autonomy but
establish clear boundaries for when particular decisions need to be centered in
top managers.
Doz (2020) defined resource fluidity, or “mobilizing and redeploying
resources rapidly and efficiently” as a key capability of strategic agility (p. 2,
emphasis added). He noted the tendency for organizational units to hoard
resources as a major obstacle to such fluidity. Organizational agility is often con
strained by process decrements from cross-unit conflicts over which resources
to redeploy as well as when and how to do so. Doz argues that resource fluidity
and speed of responding can be facilitated by encouraging a more systems per
spective regarding interdependencies across the organization, fostering a more
adaptive learning approach across the organization, and implementing a more
flexible network of entrepreneurship that breaks rigid ownership and utilization
of resources. Such a network would tailor resources more swiftly to customer
requirements and environmental demand. Doz also notes that resource fluidity
entails “identifying opportunities and needs for resource allocation before they
become obvious” (p. 8). This notion speaks to the proactive aspect noted in defi
nitions of organizational agility.
Pulakos et al. argued that agility “requires a holistic and coordinated approach
across products, technology, operations, structures, systems, and talent” (p. 307).
Such an approach means that organizations need to build a number of differ
ent capacities. The first is to establish and use tools to forecast potential emerg
ing threats or opportunities in the business environment. This entails strategic
sensitivity (Doz, 2020) within a longer time horizon than is typical in reactive
agility. Thus, for example, senior management teams need to be attuned to the
possibilities of early-stage technologies. They need to conduct long-range com
petitor analyses. They also need to establish risk management structures and
leadership roles within the top management team (e.g., chief information secu
rity officer). Such strategic forecasting systems allow the organization to posi
tion current resources and human capital, and to develop new forms of such
capital, in order to take advantage of opportunities as they occur, or to mitigate
threats as they arrive in the environment.
Proactive agility also entails building slack and redundancies across the organi
zation. Building slack means creating or holding onto excess resources to anticipate
the need to respond quickly to environmental events (Teece et al., 2016). Indeed,
the failure by most airlines to build slack in equipment and human resources is
arguably a major cause of their lack of agile performance during the course of the
COVID-19 pandemic, when travel demand surged. Establishing slack in informa
tion technology resources can foster greater innovation and creativity that can in
turn lead to the development of novel tools to improve the company’s positioning
in changing competitive environments (Doz, 2020; Lu & Ramamurthy, 2011). The
key challenge, though, is that building slack and redundancies in organizations is
costly; thus, organizations need to establish the right balance in possessing suf
ficient slack to respond agilely to events but not holding too much slack so as to
diminish resources needed for innovation (Teece et al., 2016).
Proactive agency in agility is also manifested when organizations develop
dynamic capabilities that can shape their external environments (Teece et al.,
2016). Baškarada and Koronios (2018, p. 337) define such shaping as “the abil
ity to execute and scale new capabilities to affect the external environment.”
Thus, agile organizations act with foresight to shape their environment accord
ing to their strategic orientation and goals. Strategies for environmental shap
ing can include the introduction of new technologies and other innovations that
change the competitive landscape. They can also entail investments in strate
gic alliances as well as mergers and acquisitions that also alter this landscape.
Finally, environmental shaping requires an acute awareness of pollical dynam
ics within and outside of the organization. Such awareness also contributes to
the strategic sensitivity and forecasting capabilities noted earlier. Accordingly,
investments in human capital around political acumen can contribute in multiple
ways to organizational savvy.
12 Stephen J. Zaccaro, Nathan J. Hiller, and Richard J. Klimoski
Summary
We have identified an array of organizational parameters that compose a com
pany’s capacity to be agile. In line with prior definitions, we have noted both
reactive and proactive elements of this capacity. Most factors influencing organ
izational agility are rooted ultimately in the structure and processes of the senior
management teams. The general intent of the chapters in this book is to elucidate
the multiple connections between the senior executive team and the organiza
tional capacity for agility. In the next section of this introduction, we provide
a conceptual framework of organizational agility and its antecedents. We will
conclude with an overview of the chapters and how they fit with this framework.
2020; Tsai, 2002). This dynamic of coopetition can vary across issues, such that
alliances, factions, and fault lines may change as other issues come to the fore
(Cooper et al., 2014; Ndofor et al., 2015).
The nature of top management teams as composed of leaders of different func
tions and units, as well as their interactions with other senior teams and boards
of directors, suggest a structure of tightly networked teams called multiteam
systems (Luciano et al., 2020; Mathieu et al., 2001). Luciano and colleagues
described these as strategic leadership systems in which a key emphasis is on
balancing and integrating processes of working independently versus interde
pendently as team members. However, the dual identity as a member of a sepa
rate unit versus a member of the senior leadership team can foster countervailing
forces in which executive resource allocation decisions, and commitment to the
component team versus the strategic leadership system, are in tension (Asen
cio & DeChurch, 2017; DeChurch & Zaccaro, 2013).
The nature of teamwork in senior organizational teams is entwined with the
nature of leadership dynamics within teams. The functions of senior leadership
that contribute to agility include an array of strategic formation and implementa
tion processes (Morgeson et al., 2010; Zaccaro, 2001). These include decisions
about the selection and staffing of the top management team, as well as senior
leadership teams at the next lower level (see Ployhart et al., 2024). Leadership
structures and forms also influence teamwork processes in TMTs as well as the
14 Stephen J. Zaccaro, Nathan J. Hiller, and Richard J. Klimoski
Overview of Chapters
The chapters in this volume are organized around the input-mediator-outcome
aspects of our conceptual framework. The chapter by Hiller and Ozgen relies
heavily on the strategic management literature in providing a framing overview
of the organizational agility construct. As in many of the chapters in this book,
they rely heavily on the dynamic capabilities literature, and position agility as a
key proximal predictor of several organizational outcomes, while also acknowl
edging that agility is not a panacea—it is often costly in terms of attention and
resources and shouldn’t be blindly pursued as a generic goal.
The chapter by Heavey and Simsek provides a comprehensive review and
conceptual framing of dynamic capabilities as precursors to organizational agil
ity. They define multiple sets of dynamic capabilities, including sensing and
seizing opportunities and threats, and reconfiguring organizational resources.
They reference several top management group capabilities as fostering dynamic
capabilities. They also posit several structural features, TMG interfaces, TMG
processes and emergent states, and incentive structures as influencing TMG
capabilities. These are influenced in turn by several TMG input factors. Thus,
Heavey and Simsek offer a nice companion piece and significant extension to
several of the ideas offered in this introduction and by Hiller and Ozgen. They
also preview key points in many of the chapters later in the book.
16 Stephen J. Zaccaro, Nathan J. Hiller, and Richard J. Klimoski
The chapter by Joshi examines the link between business strategy and organi
zational agility. We noted in Figure 1.1 that agile performance is predicated on the
strategic decisions that establish structures and processes throughout the organi
zation to position it to act with speed and efficiency to environmental shifts.
Such decisions reflect the investments organizations make to increase their agile
posture. Joshi offers a strategic framework composed of strategic vision and
long-term objectives leading to corporate, business, and functional strategies. He
stresses that agility derives from strategic alignments across the organization and
among these types of strategies. This chapter, then, emphasizes that organiza
tional agility needs to be rooted in the strategic nexus of the organization.
The next three chapters in this volume address the intricacies of the leader-
team interfaces in senior management teams. Wedell-Wedellsberg and Greve
examine the characteristics and key functions in such teams that enable strategic
agility. Specifically, they integrate the behavioral integration of a senior team
with its structure of distributed cognition to explain a predominant emphasis
on exploitation, exploration, or ambidexterity. Their premise is senior execu
tive teams need high levels of both behavioral integration and strong transactive
memory systems, an emergent state that reflects shared cognition about each
member’s specific expertise (Wegner, 1987), to display effective ambidexterity
and strategic agility. They use data from Fortune 500 Global firms to provide an
initial examination of their framework.
The chapter by Carter, Cullen-Lester, Solanelles, and Jones focuses on the
leadership side of the leader-team interface in senior leadership teams. They
examine leadership at the top as a network of communication and leadership ties
among top managers. Such networks can reflect different leadership forms from
centralized and hierarchical to decentralized and collective (or shared (Con
tractor et al., 2012). Carter et al. depict how different patterns in the strategic
leadership network can either hinder or facilitate the agile functioning of the
organization. They illustrate their framework with a case study of a large Euro
pean commercial cleaning company that needed to demonstrate agility in the
early stages of the COVID-19 pandemic.
Zhou and Klimoski offer an examination of the chief of staff’s role in orches
trating the interpersonal and political context of senior management team inter
actions and decisions. This role has received limited attention in the strategic
management and leadership literatures. The authors define three key roles of
the chief of staff—administrator, advisor, and connector—and describe how the
chief of staff connected to the senior executive team can foster team behavioral
integration and distributed cognition. Thus, this chapter not only covers a rela
tively new topic in strategic management but also builds nicely on the Wedell-
Wedellsberg and Greve chapter.
The next two chapters in the book focus on primary input factors for sen
ior executive team processes. Zaccaro, Zhou, and Resick describe sets of CEO
Introduction 17
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