BetaCodex01 - Techniques for Transformation

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Originally, this paper was presented as a keynote held on the BBRT Meeting 40 in London

Originally, this paper was presented as a keynote held on the BBRT Meeting 40 in London

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  • 1. Make it real! Techniques for transformation – exploring the practicalities of “beta codex“ change management Niels Pflaeging Gebhard Borck BetaCodex Network BetaCodex Network& gberatung Presentation originally held by Niels Pflaeging at BBRT Europe Meeting No. 40, October 2007 Edited as white paper in March 2008, updated November 2009
  • 2. 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. 8. “Community” is a foundation to successful implementation, because it provides orientation – the BetaCodex Network is the cornerstone of this Techniquescommunity for Transformation 2 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 3. Using the BBRT online diagnostic early-on Techniques for Transformation 3 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 4. Knowledge TurnTables – reaching consensus within large groups Communicate Listening & M directly M integrating 3 Focused listening 4 3 Giving feedback 4 1 1 & documenting 6 2 6 2 7 Focused listening 7 Giving feedback 5 & documenting 5 9 9 8 8 Communicate M directly 7 Focused listening 8 & documenting • The method creates a playing field 4 5 1 2 within which a highly intensive exchange 9 Focused listening 6 & documenting among the participants can be achieved – 3 in absence of any kind of hierarchy. • 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
  • 5. Techniques for Transformation 5 © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germany
  • 6. Techniques for Transformation 6 © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germany
  • 7. Techniques for Transformation 7 © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germany
  • 8. 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
  • 9. Techniques for Transformation 9 © Niels Pflaeging & Gebhard Borck – All rights reserved Paradigma Leadership Workshop, Apr 2007
  • 10. Techniques for Transformation 10 © Niels Pflaeging & Gebhard Borck – All rights reserved Logoplaste Leadership Workshop, Mar 2007
  • 11. This is Alice Techniques for Transformation 11 © Niels Pflaeging & Gebhard Borck – All rights reserved Logoplaste Leadership Workshop, Mar 2007
  • 12. And this is Alice, too. Techniques for Transformation 12 © Niels Pflaeging & Gebhard Borck – All rights reserved René Reinhold, Paradigma, Oct 2007
  • 13. Choosing a name for your Beyond Budgeting initiative – 2 examples Logoplaste, Brazil Paradigma group, Germany FIRE Decentralize – Lead - Grow Flexible - responding adaptively to market demands Preparing Logoplaste for growth Integrated - all involving all organization members Respectful - in dealing with people and environment Erfolgreich (successful) - as an organization and as individuals Techniques for Transformation 13 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 14. 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 Organizati onal and the values defined in the case for change change pr ocess 2. Neutral Zone 3. Beginning 1. 2. 3. 4. Create a Pull 5. 6. Develop Communi- 7. 8. sense of together a Empower Produce change cate for Don't Create urgency guiding under- all others short-term vision and let a new coalition standing to act wins strategy up! culture and buy-in 1. Ending • Write the case for change ual • Build awareness through selective action (e.g. Individ rocess abolishing budgets) ep chang • Win hearts and minds, train for empowering leadership styles and more transparency Techniques for Transformation 14 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 15. 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 1. 2. 3. 4. 5. 6. 7. Create a Pull together a Develop Communicate Empower all Produce Don´t Phase in % sense of guiding change vision for understan- others short-term let up urgency coalition and strategy ding and to act wins buy-in 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 changes. Techniques for Transformation 15 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 16. Using metaphors and models to challenge thinking “The pyramid versus the peach” Periphery Mar ke t Center Information Decision Command Centralist command and Impulse control “collapses“ in Reaction increasingly complex environments Techniques for Transformation 16 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 17. 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen? Techniques for Transformation 17 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 18. 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen? Techniques for Transformation 18 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 19. 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 19 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 20. 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
  • 21. 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 hierarchy-free interaction Techniques for Transformation 21 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 22. There are literally dozens of proven change-enabling tools and techniques that make transformation work… 1. BBRT Diagnostic – in earliest stages 2. Our Iceberg Is Melting book and tools 3. Rapid Business Conference group method 4. Double Helix change process framework based on Kotter/Bridges 5. Metaphors and 3-D sculptures of the model 6. Case for Change writing 7. Social networking forums as communication and work platforms 8. Twin meetings – multi-faceted learning forums Other concepts: 1. Change process flow to achieve top management buy-in (involving board and owners) 2. Communication tools and channels 3. Change tachometer 4. Leadership development workshop series 5. Knowledge conference for broad-based kick off 6. … Techniques for Transformation 22 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 23. Make it real! www.betacodex.org Gebhard Borck Niels Pflaeging Valérya Carvalho gebhard@bbtn.org niels@bbtn.org valeria@bbtn.org gberatung.de nielspflaeging.com Betaleadership.com Pforzheim, Germany Sao Paulo, Brazil Sao Paulo, Brazil Get in touch with us for more information about leading transformation with the BetaCodex and the Double Helix Framework, or Andreas Zeuch Silke Hermann Markus Schellhammer ask us for a workshop az@a-zeuch.de silke.hermann@ markus.schellhammer@ proposal. a-zeuch.de insights-group.de my-online.de Winden, Germany Wiesbaden, Germany Zurich, Switzerland