In response to a burst of requests from the scale-up community for help working through the issues with larger magnitude change initiatives, here is a set of highlight thoughts and preferred approaches.

1. Leading Transformation and Accelerating Change at Scale
Dave Litwiller
April 20, 2021
Introduction
Every successful technology scale-up develops institutional proficiency in a handful of its most
competitivelysignificantcapabilities. These behaviours are drivenby a combinationof competitionand
co-operation over the company’s development journey, both internally and externally. The result for a
cohesive high performing business at scale is that the enterprise achieves a kind of synchronizationof
performance,shiftingthe behavioursof many individualsandsub-groups towardamore intense,shared
level of collective performance. The collective identity in select areas of outperformance becomes a
powerful aligningforce forthe businessanditsstakeholders. A strongsense of cultural fit usuallyresults
for those who are part of the power zone.
Individual and Group Behaviour in a High Performing Enterprise
Complexityof Introducing Significant, LastingChange
This notional modal phase lock among people and teams within successful scale-ups means that when
change needs to occur the organization cannot simply identify a new target state and then move to it.
Behavioural momentum will resist change, unless the intended adaptation is handled with care. A
deliberate transformation process needs to occur, requiring energy, planning and persistence.
Behaviour
Frequency of
Occurrence

2. For starters, the previousstate needstobe unlocked,inorderto introduce more malleability. Onlythen
can the shift and progressive lock-in at a new level of performance take place.
Leaders at a time of change face the reality that the more intense the prior state of co-operation and
competitionwhichdrove apast intensificationof behaviour,the more effortisrequiredtounlock,move
and relock on new mode of working.
An important distinction for the energy required is between incremental and more radical change.
Incremental adjustments can be achieved largely within existing networks and relationships. Whereas,
radical change is more of a threat to the status quo, and the stature of at least some individuals within
the business. The greater the magnitude of change, the more it needs to be piloted in a way partially
decoupled from the main legacy communication and decision networks for the business.
People whowill directlycontribute tothe initial stagesof change needtobe put ina contextwhere they
can achieve social proof and new local norms among their closest collaborators as transformation is
getting underway. Concentration of willing resources helps build a sufficiently cohesive localized view
about new ways of working, and the conditions to support early achievement.
From an initial beachhead of success, reformed workflows and capabilities can the expand across the
company.
Basic Change Model
The classic, simplified framework for change:
 Start small
 Build early success
 Demonstrate contextual relevance and ability to learn new ways
 Quell the naysayers
 Then, roll out more broadly
A commonissue towatchforispetprojectsandideas. Theyneedtobe keptfromgettingintotheprocess.
If theydo,the effortcandefocusorderail. The more disparate thegoalsforchange,themore thatpeople
can disagree with parts of the effort and then take it upon themselves to withhold commitment and
resources.
Rapidly GrowingTech Scale-ups
In high growth scale-up technology businesses, a common further challenge is that different phases of
corporate developmentattract differentkindsof people. Amongstaffandmanagementthere canbe very
legitimateandvariable risktolerancesaswell as workgoals. Evenwithrelativelystable co-existenceof a
workforce under one set of operating conditions, large scale change in the offing can expose significant
differences in outlookand create strife. At an inflection,some will see opportunityand growth; others,
lossof stature and diminished relevance. Atthe scale-upstage,transitionof thebusinessbecomesdeeply
personal and emotional for its people in widely varying ways.

3. The Processfor Larger, More SweepingChange
With these issues and considerations in mind, the main process and considerations for larger business
transformations:
 Recruit allies, and build a strong case for the need to change
o The intendedfuture state needstobe seenas saferthan the status quo,evenwiththe risksand
uncertainties intrinsic to finding a new way. For some, inaction can feel safer than action,
because action opens the protagonist up to criticism.
o There has to be a shared understandingabout the current state among all participants in the
discussion before there can be a grounded dialog about what needs to change and how fast.
o Proactive change ishardertoinitiatethenreactive. The outwardsignsof success forthe business
inthe proactive case meansthere isalwaysanargumentto be made to stickwiththe statusquo.
Some people discountthe future,evenwhen trendsorpending discontinuitiescastthe business’
unaltered future in a more critical light.
 Define whatisgoingtochange,especiallyinthe less easilymutableareasofmission,visionandvalues.
Thishelpsopen peopleuptonewwaysof working,and,similarlyforstaff tosee if andhow they fitin
the next stage of the company’s future. At the same time, be clear about cherished attributes that
are not going to change, to help people see the linkage to past success, even in a recast future.
Identifiableelementsof continuityhelppeople toget behindreforms. A classicnarrative inthisvein
of retaining portionsof prizedidentity: What will be retained is that innovation and reinvention are
at the core of the enterprise, past, present and future.
o Especially at times of culture change, but for any complex transformation to take hold, leaders
have to model the values required for the new way of working, and openly praise or promote
those who are also exemplifying the values.
 Call out resistance and disagreement, so that they can be dealt with quickly and directly. Establish
that thereafter, commitment and constructive engagement will be the only acceptable standard of
performance toward the pending changes.
 Develop transformationstrategiesandengagement,working bottom-up,top-down,laterally andwith
executive sponsorship for those on the front lines of reform. Additional communication pathways
need to be created beyond the regular reporting hierarchy and informal relationships.
o Bottom-up:Sothateverybody whoisinvolved will feel ownershipforthe problem, and the need
to be part of the solution. Otherwise, organizational antibodies will typically emerge to try to
restore the status quo.

4. o Top-down:Asaheuristic,noone will becommittedunless theyseeatleasttwolevels abovethem
committed. Forthe largestchanges,the entire ELT and boardof directorsneedtobe seentobe
aligned with the pending evolution of the business.
o Executive sponsorship: This keeps bottom-up initiative and effort from being frozen out by
intermediate layers of the business who may rather preserve the current state.
o Identify and act upon high leverage network nodes in the internal and external relationships of
the business,particularly catalystpeople withoutsizedpositive impact,and, those withblocking
or delaying influence who are loathe to see their knowledge, skills and reciprocity networks
diminished.
 Communicate extensively andtransparently throughout. Misunderstandingsandreinterpretationof
eventsandcircumstancesfrequentlysparkup. Reinforce the needtochange,re-recruitpeopletothe
effort, and demonstrate how the business is showing the adaptability to transform.
 Watch for new shared language, themes, and individual testimonials of ownership for the
transformation spontaneously emerging from multiple sources. These are usually early qualitative
signs that attitudes and behaviours are starting to shift.
 Adjust goals and approaches as significant new information arises in the unfolding transformation.
When tuning objectives mid-flight, recontextualize for stakeholders what new developments mean
and how those interimfindings are influencinganyalterationsof the goalsand means of attainment
over the remainder of the reforms.
 Define metrics and management decisionsupport reporting to track progress. At the same time,
adapt supporting systems and structures to facilitate and embed change. Deep change requires
systems thinking.
 KPIs and other monitoring systems also need to be able to expressly detect any backsliding. Old
habits, patterns of thought and work methods die hard. An enterprise sensory network has to be
enabled to signal for course corrections to remedy unwarranted deviations and reassert the new
chosen heading. Mostimportanttocurtail quicklyare behavioursthatdon’tmatchthe requirednew
mission,visionandvalues. Otherwise,confusion,passivity,andeven cynicismresults,makingchange
harder to achieve.
Transformation by the Numbers
Complex change requires a critical mass of usually at least 30% of participants who are dedicated to
making the change work. With this level of support, sufficiently localized social proof promotes
development of new norms, and reinforces improved ways of working. The most reliable way to get
results is to build dense localized networks of strong, capable supporters in pilot locations in the
organization or its workflows to reach this quantitative tipping threshold.

5. A relatedcautionis to avoidthe temptationtorelyona lone change agentor justa few. Nomatterhow
strong the facts and arguments for change, complex transformation relies on many relatedadaptations
which can overwhelm the catalytic effects of an insufficiently few individuals.
Major, persistent change needs to be built upon a coalition of the motivated and willing. The people
driving the transitionof involved new ways of working needto be able to trust each other. This means
knowinghowotherswill reactmostof the time,tobe able to anticipatehow eachotherwill adapttonew
information, and efficiently co-ordinate.
Most important is to engage individuals who have a strong growth mindset. These are people who see
change as an opportunity to learn and grow, personally and institutionally, evenif past, cherishedways
of working need to be made obsolete or less important in the process.
Overall,the abilitytodrive complexchange requiresthatall collaborators share highpriorityforachieving
the new. As a practical matter, mostof the time, a targetedtransformation needstobe uniformlyinthe
topthree or fourprioritiesforall whohaveinfluence overitssuccess. Otherwise,the chancesforsuccess
drop off sharply,if onlyfor neglect,letalone resistance. Asthe prioritydropsforsome contributorsand
enablers, the effort becomes more likely to slow down or diminish to a less constructive form.
The Unique Role of the Leader
Deepchange cannotbe an entirelydemocraticoregalitarianprocess. Itneedstobe participative uptoa
point, but then decisive choices need to be made. Some will want change, others not.
Pick wisely to whom you listen. There are a lot of people talking to the leader, especially at a time of
transition. The people youwant to listento are the ones who have sincere,well thoughtoutintegrated
viewsof how to make thingsbetter,who have rare and valuable knowledge. The onesto downplayare
those who are resisting because change is uncomfortable. Surround yourself with sufficientlydiverse
voices. Find the ones that matter.
Final Thought
Skill inleading,acceleratingandensconcingchange isoneof the definingcharacteristicsof enduringscale-
up stage technology successes. There are timeswhenepisodic,largertransformationsare the onlyway
forward. Nevertheless, the frequency of these tectonic shifts can be lessened, and the enterprise
conditionedtobe more skilledatadaptationwitharegularflow of continuousimprovement. Continuous
improvementanditsrelateddisciplinesare the routine operational capabilitieswhichmake larger,more
discontinuous change easier to handle when tectonic shifts are required.

6. Individual and Group Behaviour in a Transformed Enterprise
Creditsand Further Reading
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To contact the author and forfurtherdiscussionaboutleadingtransformationsandchange acceleration
inscale-upstage technologybusinesses:dave.litwiller@communitech.ca
Keywords:leadingchange,change management,change acceleration,makingchange stick,scale-up,
hightechnology,transformation
Behaviour
Frequency of
Occurrence
Before After