Make it real! Techniques for transformation – exploring the practicalities of “beta codex“ change management Niels Pflaeging Gebhard Borck BetaCodex Network BetaCodex gberatung Presentation originally held by Niels Pflaeging at Network& BBRT Europe Meeting No. 40, October 2007 Edited as white paper in March 2008, updated November 2009 Underlying assumptions of our recent management model transformation projects 1. Organizations are “systems”. So they have to be transformed as such. Thus, finance people cannot do it alone. (And it's actually much more fun approaching change holistically.) 2. A systemic view of the change process: don't plan too far ahead – follow the energy! 3. “It´s all about human nature”. Apply “Theory Y” rigidly! 4. Abolishing budgets is 0,5% of the project (and not the most difficult bit). Creating an entrepreneurial devolved network is key to the “new” model. Which means changing hundreds or thousands of mindsets. 5. People in the organization have to do this themselves! The role of consultants and change experts: give advice, don't make decisions or start “implementing” for the client. 6. Everyone's communication styles and behaviour patterns must change. Transformation thus requires “people” specialists, coaching and some training. 7. “Mature” cases and the model itself are key to making the vision palpable. But it is equally necessary to apply more “emotional” techniques and metaphors. Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights 2 reserved 8. “Community” is a foundation to successful implementation, because Using the BBRT online diagnostic early-on Techniques for Transformation 3 © Niels Pflaeging & Gebhard Borck – All rights reserved Knowledge TurnTables – reaching consensus within large groups Communicate directly M 4 3 1 7 2 6 5 Focused listening & documenting Focused listening 7 & documenting Listening & integrating M 4 3 1 2 6 Giving feedback 5 9 9 8 Giving feedback Communicate directly 8 M 8 • The method creates a playing field within which a highly intensive exchange among the participants can be achieved – in absence of any kind of hierarchy. 7 4 2 5 1 9 6 Focused listening & documenting Focused listenin & documenting 3 • The participants generate a joint group knowledge and understanding of the chosen topics and participate actively to develop new knowledge and concepts for the future. Techniques for Transformation 4 © Niels Pflaeging & Gebhard Borck – All rights reserved Techniques for Transformation 5 © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germa Techniques for Transformation 6 © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germa Techniques for Transformation 7 © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germa Our Iceberg Is Melting book and tools • Not so much a book… but an organizational change • • • • • methodology (Kotter´s 8-step process) and a powerful metaphor with which everyone in an organization can relate. Based on ample research and Kotters other books, such as “Leading change”, “A sense of urgency”. Archetypes and scenes in the story help to deal with risks and resistance, and to create a common language within the guiding coalition. Can serve as a basis for internal communication and “initiative branding” Related tools help leading the process and allow for “measuring the process temperature” … Techniques for Transformation 8 © Niels Pflaeging & Gebhard Borck – All rights reserved Techniques for Transformation 9 © Niels Pflaeging & Gebhard Borck – All rights reservedApr Paradigma Leadership Workshop, 20 Techniques for Transformation 10 © Niels Pflaeging & Gebhard Borck – All rights reservedMar Logoplaste Leadership Workshop, 2 This is Alice Techniques for Transformation 11 © Niels Pflaeging & Gebhard Borck – All rights reservedMar Logoplaste Leadership Workshop, 2 And this is Alice, too. Techniques for Transformation 12 © Niels Pflaeging & Gebhard Borck – All rights reserved René Reinhold, Paradigma, Oct 20 Choosing a name for your Beyond Budgeting initiative – 2 examples Logoplaste, Brazil Paradigma group, Germany FIRE Decentralize – Lead - Grow Preparing Logoplaste for growth Techniques for Transformation Flexible - responding adaptively to market demand Integrated - all involving all organization members Respectful - in dealing with people and environme Erfolgreich (successful) - as an organization and a individuals 13 © Niels Pflaeging & Gebhard Borck – All rights reserved Applying a “Double Helix” change process framework within transformational ”Beyond Budgeting“ change initiatives • Change structure • Change management processes • Align projects and decision processes with 12 principles and the values defined in the case for change 2. Neutral Zone 3. Beginning 1. 2. 3. 4. 5. Create a 6. Pull Develop CommuniEmpower Produce sense of together a cate for change urgency guiding under- all others short-term vision and to act standing wins coalition strategy and buy-in 7. Don't let up! 8. Create a new culture 1. Ending • Write the case for change • Build awareness through selective action (e.g. abolishing budgets) • Win hearts and minds, train for empowering leadership styles and more transparency Techniques for Transformation 14 © Niels Pflaeging & Gebhard Borck – All rights reserved This process is systemic and not like “project management“, but it can be guided and “temperature“ can be taken at any time Status of the project Phase in % 1. Create a sense of urgency 2. Pull together a guiding coalition 3. 4. 5. Develop Communicat Empower all change e for others vision and understanto act strategy ding and buy-in 6. Produce short-term wins 7. Don´t let up 1. There is a strong guiding coalition that sustains the transformation. 2. All over the organisation, “profound change“ is considered an issue. 3. Different groups in the organisation (task forces) already work on specific Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights 15 changes. reserved Using metaphors and models to challenge thinking “The pyramid versus the peach” Periphery Center Information Decision Command Impulse Techniques for Transformation Reaction 16 Centralist command and control “collapses“ in increasingly complex environments © Niels Pflaeging & Gebhard Borck – All rights reserved 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen? Techniques for Transformation 17 © Niels Pflaeging & Gebhard Borck – All rights reserved 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen? Techniques for Transformation 18 © Niels Pflaeging & Gebhard Borck – All rights reserved Committing to a clear case for change • Writing the “manifesto“ Series of 1- or 2-day workshops with a team of 6-10 people (top team is part) Document contains 25-35 pages May take 3-6 months to write • Approval Top management team and board approve “business model“ and “values“ Leads to “version 1.00“ • Communication Discussing and revising the draft version with all members of the organization “Twin meetings” + workshops + other communication platforms for discussion Workshops on values Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights 19 reserved Twin meetings – multi-faceted learning forums • When empowering all people • within the organization to act… Let's not do it the usual way, convening everyone, making grand promises, in command and control style! The alternative: • Two managers from the guiding coalition (the “twins“) offer a meeting for open discussion, for no more than 12 participants. Participants sign up voluntarily. When the list of 12 is full, then it's full. • The meeting is limited to 2 hours duration, it is totally open with regards to topics. Anything can be said. • The 2 moderators are from two different areas from the organization. They should “present“ as little as possible • At the beginning, one of the 2 should always be a director • An unlimited amount of twin meetings can be held… Techniques for Transformation 20 © Niels Pflaeging & Gebhard Borck – All rights reserved Social networking portals as platforms for discussion, internal networking and “empowered action” • Example www.xing.com online community for professional networking and networked communication, 4 mio. users world-wide • Platform offers excellent functionalities for networked communication („Groups“) • Cheap or even free service of the platform • Documented and hierarchyfree interaction Techniques for Transformation 21 © Niels Pflaeging & Gebhard Borck – All rights reserved There are literally dozens of proven change-enabling tools and techniques that make transformation work… 1. 2. 3. 4. 5. 6. 7. 8. BBRT Diagnostic – in earliest stages Our Iceberg Is Melting book and tools Rapid Business Conference group method Double Helix change process framework based on Kotter/Bridges Metaphors and 3-D sculptures of the model Case for Change writing Social networking forums as communication and work platforms Twin meetings – multi-faceted learning forums Other concepts: 1. 2. 3. 4. 5. 6. Change process flow to achieve top management buy-in (involving board and owners) Communication tools and channels Change tachometer Leadership development workshop series Knowledge conference for broad-based kick off … Techniques for Transformation 22 © Niels Pflaeging & Gebhard Borck – All rights reserved Make it real! www.betacodex.org Get in touch with us for more information about leading transformation with the BetaCodex and the Double Helix Framework, or ask us for a workshop proposal. Gebhard Borck Niels Pflaeging Valérya Carvalho gebhard@bbtn.org gberatung.de Pforzheim, Germany niels@bbtn.org nielspflaeging.com Sao Paulo, Brazil valeria@bbtn.org Betaleadership.com Sao Paulo, Brazil Andreas Zeuch Silke Hermann az@a-zeuch.de a-zeuch.de Winden, Germany silke.hermann@ insights-group.de Wiesbaden, Germany Markus Schellhammer markus.schellhammer@ my-online.de Zurich, Switzerland