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
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reserved
8. “Community” is a foundation to successful implementation, because
Using the BBRT online diagnostic early-on
Techniques for Transformation
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© 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
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© Niels Pflaeging & Gebhard Borck – All rights
reserved
Techniques for Transformation
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© Niels Pflaeging & Gebhard Borck – All rights
reserved
Cognos Performance 2007,
Germa
Techniques for Transformation
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© Niels Pflaeging & Gebhard Borck – All rights
reserved
Cognos Performance 2007,
Germa
Techniques for Transformation
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© 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
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© Niels Pflaeging & Gebhard Borck – All rights
reserved
Techniques for Transformation
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© Niels Pflaeging & Gebhard Borck – All rights
reservedApr
Paradigma Leadership Workshop,
20
Techniques for Transformation
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© Niels Pflaeging & Gebhard Borck – All rights
reservedMar
Logoplaste Leadership Workshop,
2
This is Alice
Techniques for Transformation
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© Niels Pflaeging & Gebhard Borck – All rights
reservedMar
Logoplaste Leadership Workshop,
2
And this is Alice, too.
Techniques for Transformation
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© 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
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© 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
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© 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
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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
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© Niels Pflaeging & Gebhard Borck – All rights
reserved
2. Was meinen wir bei Paradigma, wenn
wir von Beyond Budgeting sprechen?
Techniques for Transformation
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© 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
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© 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
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© 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
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© 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