Showing posts with label transformation. Show all posts
Showing posts with label transformation. Show all posts

Wednesday, May 24, 2023

multiple, simultaneous efforts


Most prescriptions for organizational change have focused on how to launch a single change initiative. This made sense in a stable world in which undertakings were planned and executed gradually and sequentially — like controllers directing airplanes taking off on a single runway, one at a time and well distanced from one another. However, the challenges of coping with dynamic markets, global crises, and advancing technologies are forcing organizations to transform quickly, which can require multiple, simultaneous efforts on several fronts. When time-pressured controllers launch many airplanes in close succession, the risk of collision increases significantly. Yet change managers have a very limited understanding of how such “collisions” happen or how to reduce those risks.

Failure to manage interrelationships between change initiatives can generate poor overall performance in three ways. First, it can lead to a large number of seemingly discrete initiatives with unclear prioritization and insufficient resources allocated for implementation. Second, it creates misaligned incentives for managers whose concern for their own key performance indicators inhibits cooperation across departmental siloes, when cooperation could better generate the desired benefits. Third, it prevents managers from perceiving connections between their own initiatives and those occurring elsewhere in the organization, creating unexpected conflicts about resource allocation or the timing of implementation. These conflicts undermine each change initiative and decrease overall corporate performance.


Quy Nguyen Huy, Rouven Kanitz, Julia Backmann, and Martin Hoegl

"How to Reduce the Risk of Colliding Change Initiatives," MITSloan Management Review. June 3, 2021

Monday, May 15, 2023

transformation deficit


Business transformation will remain at the forefront in 2023, as organizations continue to refine hybrid ways of working and respond to the urgent need to digitalize, while also contending with inflation, a continuing talent shortage, and supply-chain constraints. These circumstances, which require higher levels of productivity and performance, also mean a lot of change: In 2022, the average employee experienced 10 planned enterprise changes — such as a restructure to achieve efficiencies, a culture transformation to unlock new ways of working, or the replacement of a legacy tech system — up from two in 2016, according to Gartner research.

While more change is coming, the workforce has hit a wall: A Gartner survey revealed that employees’ willingness to support enterprise change collapsed to just 43% in 2022, compared to 74% in 2016.

We call the gap between the required change effort and employee change willingness the “transformation deficit.” Unless functional leaders steer swiftly and expertly, the transformation deficit will stymie organizations’ ambitions and undermine the employee experience, fueling decreased engagement and increased attrition.



Cian O Morain and Peter Aykens

"Employees Are Losing Patience with Change Initiatives," Harvard Business Review. May 9, 2023

Friday, September 2, 2022

technical debt


Companies all over the world are embracing digital transformation — the use of new (or already existing) technological capabilities — as the means to better work with their customers, distance themselves from (or keep up with) their competitors, and connect various aspects of their businesses. But to succeed in this endeavor — or even to simply get the most from their current tech — they must rid themselves of a heavy burden: technical debt. Put simply, technical debt occurs when you choose an imperfect short-term solution that will require a more substantial fix later, and includes disparate systems, added software to accommodate them, and added effort to work around them.

Because technical debt is the result of shortcuts — choosing quick fixes over a long-term investment — it causes plenty of problems in the here and now. It adds enormous friction any time people need to coordinate work together across silos. There’s also the ongoing expense to exchange data between systems; the unquantifiable costs associated with being slowed down by your systems, whether you’re in the midst of digital transformation or responding to a competitor’s move; and the price you must eventually pay to redesign and simplify systems. And technical debt and its costs compound over time.

At first blush, executives may dismiss technical debt as the province of their IT departments. That conclusion camouflages the root cause of the issue, however. In truth, technical debt stems from the way the businesses are structured, and how departments develop their own systems and languages for getting their work done.



Effective Digital Transformation Depends on a Shared Language, by David C. Hay, Thomas C. Redman, C. Lwanga Yonke, and John A. Zachman. Harvard Business Review. December 14, 2021

Thursday, September 1, 2022

the essence of digital transformation


The essence of digital transformation is to become a data-driven organization, ensuring that key decisions, actions, and processes are strongly influenced by data-driven insights, rather than by human intuition. In other words, you will only transform when you have managed to change how people behave, and how things are done in your organization.


The Essential Components of Digital Transformation by Tomas Chamorro-Premuzic. Harvard Business Review. November 23, 2021


Sunday, August 28, 2022

under, over, through, or around


In terms of day-to-day, did I ‘do’ anything? Probably not. My role was to simply not let the organization back up. If anyone presented a roadblock, I told them to go under, over, through, or around … any way to make it happen.



Eric Pike, CEO, Pike Corporation

"How the CEO’s leadership in digital transformation can tip the scales toward success," by Benjamin FinziRich NandaAnh Nguyen PhillipsTom Schoenwaelder & Dr. Gerald C. Kane. Deloitte Insights. June 28, 2022

Saturday, August 27, 2022

the CEO is a change agent


The CEO is a change agent, recognizing that the world in their sector can be very different in a few years. They need to state their vision for what the industry or world will look like and then articulate how the company needs to change in order to adapt to that world.



Daniel Saks, CEO, AppDirect

"How the CEO’s leadership in digital transformation can tip the scales toward success," by Benjamin FinziRich NandaAnh Nguyen Phillips, Tom Schoenwaelder & Dr. Gerald C. Kane. Deloitte Insights. June 28, 2022

Friday, August 12, 2022

the pursuit of value


The trigger for any corporate transformation is the pursuit of value. Ideally, that entails both improving efficiency (through streamlining and cost cutting) and reinvesting in growth. But many transformation efforts derail because they focus too narrowly on one or the other.

In some cases, attempts to streamline the business through productivity improvements, outsourcing, divestments, or restructuring undermine growth. The cuts are so deep that they hollow out capabilities, sap morale, and remove the slack that could have fueled new endeavors.



Bharat N. Anand and Jean-Louis Barsoux

"What Everyone Gets Wrong About Change Management," Harvard Business Review. November-December 2017. 

Thursday, August 11, 2022

what to change?


Corporate transformations still have a miserable success rate, even though scholars and consultants have significantly improved our understanding of how they work. Studies consistently report that about three-quarters of change efforts flop—either they fail to deliver the anticipated benefits or they are abandoned entirely.

Because flawed implementation is most often blamed for such failures, organizations have focused on improving execution. They have embraced the idea that transformation is a process with key stages that must be carefully managed and levers that must be pulled—indeed, expressions such as “burning platform,” “guiding coalition,” and “quick wins” are now common in the change management lexicon. But poor execution is only part of the problem; our analysis suggests that misdiagnosis is equally to blame. Often organizations pursue the wrong changes—especially in complex and fast-moving environments, where decisions about what to transform in order to remain competitive can be hasty or misguided.

Before worrying about how to change, executive teams need to figure out what to change—in particular, what to change first...

So how can leaders decide which changes to prioritize at the moment? By fully understanding three things: the catalyst for transformation, the organization’s underlying quest, and the leadership capabilities needed to see it through. Our analysis of stalled transformations suggests that failing to examine and align these factors drastically reduces the odds of producing lasting change.



Bharat N. Anand and Jean-Louis Barsoux

"What Everyone Gets Wrong About Change Management," Harvard Business Review. November-December 2017. 

Thursday, August 26, 2021

transformational change


The first thing to understand about transformational change is that the external environment -- technology, regulation, competition, the economy -- is forcing change upon your organization. Your organization is a sub-system of a larger system, and it must align its systems to the external world. Sometimes that external environment demands rapid change that may be uncomfortable for everyone.

Lawrence M. Miller


Thursday, April 29, 2021

the transformation story


Make sure that you provide sufficient information in your presentation to produce a meaningful change in your audience. This can come by providing a new insight on a known topic, by introducing a completely new concept, or even by making them doubt about something they have always taken for granted.

If your presentation will not produce some kind of change in your audience, then it’s a presentation not worth giving.

If you are not eliciting a change, then you are not providing enough content. And if you are not providing enough content, your material is not worth presenting. So: no change, no presentation!


Matteo Cassese

"The 10 principles of effective presentations. Hint: it’s all in the structure!" La Fabbrica della Realtà. Retrieved 4/27/2021

Saturday, January 2, 2021

creating a vision

In our experience, the hardest part of creating a vision is finding the balance between what is bold and transformational and what is realistic and achievable. The phrase many use for this is landing on a vision that is “tough but doable.” If the vision feels too incremental, cautious, or overly tailored to existing capabilities, it will fail to create momentum or pressure for an organization to push the limits of what is possible and therefore won’t lead to breakthroughs. At the same time, if people see goals as simply “pie in the sky” and beyond reach, they will become disillusioned and give up. 

Often, examining the “art of the possible” can help find the sweet spot. For example, ask what performance would look like if every area operated at the level of the current best practice within the company? What if all of our processes and systems were operating at the top of their technical limits? What if we achieved best practice in the industry on not one, but all key measures?... By considering the art of the possible in this way, leaders can aim high without the goal feeling untethered to reality. 

When managers are planning two or three years ahead, that period is close enough in time to allow them to choose relevant goals and identify specific initiatives to reach them. 

There are advantages in having objectives distant enough to reduce any temptation to rob tomorrow to pay for today – a constant battle for public companies under pressure to achieve quarterly results. 



Scott Keller
 and Bill Schaninger

Beyond Performance 2.0: A Proven Approach to Leading Large-Scale Change. John Wiley & Sons, Inc. 2019

Sunday, November 8, 2020

having better arguments

THE BETTER ARGUMENTS PROJECT—a civic initiative founded by Allstate, The Aspen Institute, Facing History and Ourselves, and the Bezos Family Foundation to help bridge divides—was built on the belief that arguments are fundamental to healthy civic life. To effectively address divisions in our society, it proposes we have better arguments, not fewer.

The project characterizes better arguments as emotionally intelligent, rooted in history, and honest about power imbalances. Using five principles for engagement—taking winning off the table, prioritizing relationships, paying attention to context, embracing vulnerability, and making room to transform—the project provides a framework for people to engage with each other on divisive issues.


"How Do We Build a Better Society? Have Better Arguments" The Atlantic (sponsored by Allstate)

Saturday, December 1, 2018

my job is curation of our culture

Last March, Microsoft unveiled Tay.ai, a Twitter bot that promised to usher in a new era of human-to-artificial-intelligence conversation.

Within hours, hackers turned Tay into a venom-spewing racist, and the project was quickly shuttered with a public apology.

In the old days of Microsoft, heads surely would have rolled.

But Satya Nadella, 49, a one-time company engineer who took the reins of the $500 billion tech giant three years ago this month, instead sent the Tay team a note of encouragement.

“Keep pushing, and know that I am with you,” he wrote in an e-mail, urging staffers to take the criticism in the right spirit while exercising "deep empathy for anyone hurt by Tay. (The) key is to keep learning and improving.”

The group responded with Zo, a new AI chatbot that debuted in December. So far, no issues.

“It’s so critical for leaders not to freak people out, but to give them air cover to solve the real problem,” Nadella says in an interview with USA TODAY. “If people are doing things out of fear, it’s hard or impossible to actually drive any innovation...”

"What I realize more than ever now is that my job is curation of our culture," says Nadella, who will explore this topic and others in a book due out this fall called Hit Refresh. "If you don't focus on creating a culture that allows people to do their best work, then you’ve created nothing.”


Tuesday, November 13, 2018

are you undercommunicating?

Transformation is impossible unless hundreds or thousands of people are willing to help, often to the point of making short-term sacrifices. Employees will not make sacrifices, even if they are unhappy with the status quo, unless they believe that useful change is possible. Without credible communication, and a lot of it, the hearts and minds of the troops are never captured....

Executives who communicate well incorporate messages into their hour-by-hour activities. In a routine discussion about a business problem, they talk about how proposed solutions fit (or don’t fit) into the bigger picture. In a regular performance appraisal, they talk about how the employee’s behavior helps or undermines the vision. In a review of a division’s quarterly performance, they talk not only about the numbers but also about how the division’s executives are contributing to the transformation. In a routine Q&A with employees at a company facility, they tie their answers back to renewal goals.

In more successful transformation efforts, executives use all existing communication channels to broadcast the vision. They turn boring and unread company newsletters into lively articles about the vision. They take ritualistic and tedious quarterly management meetings and turn them into exciting discussions of the transformation. They throw out much of the company’s generic management education and replace it with courses that focus on business problems and the new vision. The guiding principle is simple: use every possible channel, especially those that are being wasted on nonessential information.

Perhaps even more important, most of the executives I have known in successful cases of major change learn to “walk the talk.” They consciously attempt to become a living symbol of the new corporate culture. This is often not easy. A 60-year-old plant manager who has spent precious little time over 40 years thinking about customers will not suddenly behave in a customer-oriented way. But I have witnessed just such a person change, and change a great deal. In that case, a high level of urgency helped. The fact that the man was a part of the guiding coalition and the vision-creation team also helped. So did all the communication, which kept reminding him of the desired behavior, and all the feedback from his peers and subordinates, which helped him see when he was not engaging in that behavior.

Communication comes in both words and deeds, and the latter are often the most powerful form. Nothing undermines change more than behavior by important individuals that is inconsistent with their words.


"Leading Change: Why Transformation Efforts Fail" Harvard Business Review. May-June 1995

Monday, November 12, 2018

provide a vision

In every successful transformation effort that I have seen, the guiding coalition develops a picture of the future that is relatively easy to communicate and appeals to customers, stockholders, and employees. A vision always goes beyond the numbers that are typically found in five-year plans. A vision says something that helps clarify the direction in which an organization needs to move.... A useful rule of thumb: if you can’t communicate the vision to someone in five minutes or less and get a reaction that signifies both understanding and interest, you are not yet done with this phase of the transformation process.


"Leading Change: Why Transformation Efforts Fail" Harvard Business Review. May-June 1995

Sunday, November 11, 2018

a sense of urgency

Most successful change efforts begin when some individuals or some groups start to look hard at a company’s competitive situation, market position, technological trends, and financial performance. They focus on the potential revenue drop when an important patent expires, the five-year trend in declining margins in a core business, or an emerging market that everyone seems to be ignoring. They then find ways to communicate this information broadly and dramatically, especially with respect to crises, potential crises, or great opportunities that are very timely. This first step is essential because just getting a transformation program started requires the aggressive cooperation of many individuals. Without motivation, people won’t help and the effort goes nowhere....

A paralyzed senior management often comes from having too many managers and not enough leaders. Management’s mandate is to minimize risk and to keep the current system operating. Change, by definition, requires creating a new system, which in turn always demands leadership. Phase one in a renewal process typically goes nowhere until enough real leaders are promoted or hired into senior-level jobs....

In a few of the most successful cases, a group has manufactured a crisis. One CEO deliberately engineered the largest accounting loss in the company’s history, creating huge pressures from Wall Street in the process. One division president commissioned first-ever customer-satisfaction surveys, knowing full well that the results would be terrible. He then made these findings public. On the surface, such moves can look unduly risky. But there is also risk in playing it too safe: when the urgency rate is not pumped up enough, the transformation process cannot succeed and the long-term future of the organization is put in jeopardy.

When is the urgency rate high enough? From what I have seen, the answer is when about 75% of a company’s management is honestly convinced that business-as-usual is totally unacceptable. Anything less can produce very serious problems later on in the process.


"Leading Change: Why Transformation Efforts Fail" Harvard Business Review. May-June 1995

Thursday, October 4, 2018

the transformational CEO

Four key functions collectively define a successful role for the CEO in a transformation:

  1. Making the transformation meaningful. People will go to extraordinary lengths for causes they believe in, and a powerful transformation story will create and reinforce their commitment. The ultimate impact of the story depends on the CEO’s willingness to make the transformation personal, to engage others openly, and to spotlight successes as they emerge.
  2. Role-modeling desired mind-sets and behavior. Successful CEOs typically embark on their own personal transformation journey. Their actions encourage employees to support and practice the new types of behavior.
  3. Building a strong and committed top team. To harness the transformative power of the top team, CEOs must make tough decisions about who has the ability and motivation to make the journey.
  4. Relentlessly pursuing impact. There is no substitute for CEOs rolling up their sleeves and getting personally involved when significant financial and symbolic value is at stake.

Everyone has a role to play in a performance transformation. The role of CEOs is unique in that they stand at the top of the pyramid and all the other members of the organization take cues from them. CEOs who give only lip service to a transformation will find everyone else doing the same. Those who fail to model the desired mind-sets and behavior or who opt out of vital initiatives risk seeing the transformation lose focus. Only the boss of all bosses can ensure that the right people spend the right amount of time driving the necessary changes.


"The CEO’s role in leading transformation". mckinsey.com. Feb. 2007

Monday, August 27, 2018

four characteristics of the transformational leader

Transformational leaders exhibit four characteristics in their interactions with employees; idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.

Transformational Leaders
  • Charisma: Provides vision and sense of mission, instills pride, gains respect and trust. 
  • Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.
  • Intellectual stimulation: Promotes intennigence, rationality, and careful problem solving. 
  • Individualized Consideration: Gives personal atention, treats each employee individually, coaches, advises. 

Transactional Leaders
  • Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.
  • Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action.
  • Management by Exception (passive): Intervenes only if standards are not met. 
  • Lasissez-Faire: Abdicates responsibilities, avoids making decisions.