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Archive for May, 2010

So why is leading change so difficult?

06 May

We believe the reason most change efforts do not achieve their objectives is because change is “pushed” throughout the organization.  This is the traditional method.  When you push change you always get resistance.  This resistance, which can be either active or passive, has a subversive quality to it, and undermines the change initiative.  The non-traditional approach looks at change from a “pull” perspective.  This view follows the eight key steps outlined in a previous post.  Using the eight key steps, change is pulled into existence by enrolling the organization in a new Vision of the future and showing the organization how to bring that Vision forth. 

What happens when you push anything?  You get push back that shows up as resistance.  The people supporting the change get frustrated and they tend to push harder to overcome what they interpret as resistance.  This is not very productive and usually results in misunderstanding, delay and in the worst case, recrimination and acrimony. 

Let’s briefly examine two ways of looking at change.  We definitely show our bias, but after you read this, you determine which approach you think will be more effective.

One way to look at change is as a change in state, going from one reality or situation to another reality or situation.  This is the traditional view of change.  This view holds that there is something wrong with the current situation.  The people holding this view think of it as if it were an objective fact.  This is the way it is!  And since this is the way it is, like a fact, everyone should see it the same way. 

Within this traditional view, the obvious next step is to postulate a different reality that fixes the current reality.  This new reality also shows up like something real, like a fact.  This will fix the problem.  It’s obvious; everyone should see and accept the improvements.  If they don’t there is something wrong with them.  The final steps in the process involve moving everyone from the “wrong” reality to the “right” reality.  This invariably causes resistance which has to be overcome by persuasion, or threat.  Obviously, the resistance is “wrong”. 

When you look at traditional change efforts this way you can begin to see they set up the seeds of their own failure.  They set up a right/wrong position.  A contrary position has to be overcome. This means you make a lot of people wrong.  Everyone knows instinctively this approach creates difficulties.  Get the picture?

The other way of looking at change can provide a more powerful working theory to guide the change process.  This view sees change as a shift in the conversations within the organization.  This view holds that real, sustainable change results from changing the organizational conversations. 

While we think of an organization as a living entity, it is really a legal abstraction.  The people within the organization are the living entity and they constitute who they are as a result of the discussions they have and don’t have with one another. This view holds that organizations are socially constructed, and the socially constructed reality creates the system called the company.  Every company is a system and as a system it is perfectly designed to produce the results it’s producing. If you want to change the results you have to change the design.  This means, from a linguistic perspective, you have to change the conversations in one or two domains. One is the strategic domain; the second domain is the operational domain. 

The ability to change the conversation depends on the conversational dynamics of the organization.  If you have a great deal of withheld communications or highly charged confrontational discussions, change will be very difficult.  If you have open, highly collaborative conversations change will be easier and will naturally flow from the shifting conversational patterns.

This approach starts with a compelling Vision. With this Vision in place, use the eight key steps, outlined in the previous post, to pull the change into existence by enrolling the organization in a new vision of the future and showing the organization how to bring that vision forth.

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Key Steps for Leading Successful Change Initiatives

04 May

Alas, change is one of the few constants in the world we live in.  Organizations initiate change efforts for a variety of reasons.  But, one reason underlying all change initiatives is something is not right. The executives know that the system is broken, this is not working, and something is missing.  Otherwise there is no reason to change.  “If it isn’t broken, don’t fix it” is a standard response to any change agent.

The motivation to change may come internally as a result of recurring breakdowns in the organization, or from forces outside the organization such as customers, competitors, or suppliers. Changes in the business environment occur on a continuous basis.  Failure to successfully handle these changes can cause a business failure.

From our research and experience, there are eight key steps leaders need to know to lead meaningful change.  Leaders leading change need to:

  1. Take the responsibility to continuously interpret changes in the market, competition and customer concerns and their potential impact on the organizational system.  Initiate the appropriate change narratives to address these potential impacts. Create a sense of urgency by predicting the consequences to the organization if the organization does not change.
  2. Enroll the appropriate people within the organization to build a shared interpretation of continuing with current situation, and a share interpretation of the required changes.  This is an enrollment process requiring deep listening to and acknowledgement of alternative interpretations.  Build alignment and commitment to the necessity for change and renewal.
  3. Create a compelling vision of the renewed organization.  How would it look? What would it be doing?  What will be its competitive posture?  What would be its new identity to its customers, market and competitors?  What does it mean to the people within the organization?  How would it feel to be part of the renewed organization?
  4. Create a powerful discourse around the vision and the process to bring the vision forth.  Communicate, communicate and communicate to everyone inside and outside of the organization.  Enroll and reenroll everyone in the discourse.  This cannot be done once and forgotten.  Reenrollment has to occur at every opportunity.
  5. Create a structure for fulfillment to bring the vision into reality. This means empowering the key individuals to act, creating accountability and responsibility for results, removing obstacles, and effectively resolving breakdowns. 
  6. Focus on and celebrate short-term successes.  Publicly acknowledge accomplishments.  Use the celebration to reinvigorate the team to bring forth changes called for by the new vision of the future.
  7. Conduct lessons learned reviews to reflect on what worked, what didn’t work and how the process can be improved.
  8. Lock-in the changes and communicate the results.  Demonstrate how the changes have positively impacted the organization.  Continuously measure the results and handle any deviations quickly.  This will institutionalize the changes.  Call for continuous improvement as part of the management process.
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New Masters of Management: Are you innovating?

03 May

Almost every company that we have either worked with or observed claims that innovation is very important to them. Yet, our findings and other studies show that most cannot quantify or are not happy with the results generated through innovation. That is why the following is so critical:

Every organization is a system and as a system it is perfectly designed to produce the results it is producing!

This means that innovation often happens within your box, as opposed to outside of the box. Now, I don’t know anyone these days that would be adamant about staying in their specific box. Heck, I think most might not even be able to define what their box is exactly. Yet, they stay in it, as it is largely driven by the type of conversations that you are having within your organization.

If you think about the organization as the system, then the conversations you are having in the organization make up the design. So if you want to change the design, you have to have different conversations. What are the different conversations that you can come up with that can drastically change the design, and deliver better and more quantifiable results for innovation?

This is illustrated in this article in The Economist: The New Masters of Management from April 15th, 2010. It compares the level of innovation that is happening in developing countries compared to the developed countries. These developing countries that were supposed to compete on cheap labor are more and more competing on creativity. Do you think they are having different conversations than the ones most Western companies are having at the moment?

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Breakaway Innovation

02 May

To qualify as a real breakthrough, the breakthrough must have an extraordinary and unprecedented result.  A real breakthrough does not have an historic precedent.  Since it does not have an historic precedent, it cannot be planned based on past methods or practices.  A strategic breakthrough looks like this:

When you look at breakthroughs this way, planning based on the past is always an extrapolation giving a past based, incremental future.  This is business as usual planning and it produces ordinary, business as usual results.  Executing what worked in the past will never produce unprecedented, extraordinary results.

So, when everything you know given your past experience says, “that can’t be done,” how do you create a breakthrough?  How do you let go of the past long enough to create the possibility of bringing a significant, unprecedented result into existence?  Our history is ripe with stories of individuals overcoming self limitations or the limitations imposed by others to achieve extraordinary results.  As Henry Ford said, “If you think you can do a thing or think you can’t do a thing, you’re right.”  Fortunately, breakthroughs are not magic; there are ten key principles underlying the process of creating real breakthroughs a team can learn.

The first principle is probably completely contrary to the way you learned to plan a project and make project commitments.  While you start with the project goals, you plan based on your past experience to layout the project timeline.  You plan from the past to create the future.  In other words, you create a past-based future.  If you don’t like the results you can  “tune” the plan, but that typically produces only incremental improvements.  Sound familiar?  So, if someone needs to create a new product that typically takes 18 months, a past based plan process with “tuning” might shave off 5% to 10% or one to two months.  The commitment based on this plan then is 16 to 17 months.  That would not be considered a breakthrough.  This process can be seen as plan first and then you make your commitment based on your established plan.

The first principle of creating a breakthrough is you have to commit to the breakthrough in advance of planning it. You have to commit to the breakthrough knowing you do not know how to achieve this breakthrough.  So, what about doing the project in 9 months? If you could do that, that would be considered a breakthrough.  Anyone would agree that would be an unprecedented result. Well, that’s great but how do you create the breakthrough?   This is the hardest part of the process.  The possibility has to come into existence by an act of declaration.  You have to commit first and then plan from the future back to create or invent a structure to fulfill the commitment.

Unlike the business as usual process of plan first and then commit, this is the breakthrough process of commit first and then plan. Risky, you say; you’re right.  Unrealistic you say; we don’t think so.  Many people and companies have been able to create a breakthrough-oriented culture.  IBM documented extraordinary results by educating their teams in the specific breakthrough technology inferred in this brief overview.

Okay, what is the difference between committing first and then planning, versus making a plan and then committing?  Everything!  By committing first you create a major breakdown.  What is a breakdown?  It is a gap between where you want to go and where you are.  While you want to bring forth the declared breakthrough, you do not know how to do it from where you are now.  You cannot look to your past to find the way.  You have to create and invent new possibilities, new approaches, new methods, and keep inventing until you resolve the breakdown.  You see, breakthroughs are created by deliberately creating the breakdown by committing to an unrealistic, but deemed possible, goal.  Breakdowns only occur in the context of a commitment.

In order to create a breakthrough, you deliberately create a breakdown by committing to a result you do not know how to achieve.  You create a “gap” between your commitment and your current situation.  The gap can be looked at as an “energetic gap” pulling the best creativity and innovation from the team to close the gap with new, previously unthought-of approaches.  In order to create this pull, you have to make the commitment first, create the breakdown and then plan from the commitment back.  The team has to stay in the conversation of possibility until they invent a structure for fulfillment they believe will produce the breakthrough.

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