How organizations and leaders can reduce resistance to change and help their employees embrace digital transformation by using dedicated change management.
Good afternoon everybody! I hope you have enjoyed the event so far! Before I start with my presentation, I would like to quickly introduce you to my daughter Linda…. Well that’s not exactly Linda but it’s what she’d always dreamt of becoming – an actress! Ever since she had her first appearance on stage as “Sleeping Beauty” at the tender age of 2, she wanted to become an actress. So she continued to take all sorts of acting classes, regularly performed in school plays and short movies and as a father I certainly thought she had great talent!
Then, about 2 years ago, she was 11 at the time, we talked about the future and what she wanted to become. She looked at me and said: “Daddy, I definitely won’t become an actress anymore!”. I was surprised to hear that and asked her why she had given up on this plan? She said: “I believe, by the time I grew up, all actors will be robots!”
Well, I did not have any immediate reply for her but this statement got me thinking.
Was this a fair statement or was it even more likely that the greatest love stories yet to be filmed would require a mix of the 2 worlds with well prepared humans to continue to play a main role?
So I asked myself a couple of questions like:
How much do I know about what the future of traditional jobs is going to look like?
How could I prepare myself – and even more my daughter – for what’s coming to ensure we stay relevant?
And how could I keep her interest for acting alive in face of the fierce artificial completion?
I strongly believe we are facing a comparable situation in the business work right now where the change is in full swing while people have different strategies to cope with it.
SO how can we make sure organizations can produce blockbuster movies using the best mix of technology and human skills and how can we help individuals get fully engaged with the process?
Can I please ask everybody to stand up for a moment!
How many of you are currently NOT involved in any kind of transformation?
Ok, please sit down!
All others, I would normally now ask you to take out your mobile phones and go to menti.com because I’m interested in your input.
However, since this is a high-tech event, we have moved on from menti.com by now. What I’ll do instead is to use this little device to connect directly to your brain and transfer your thoughts straight to the screen. I want you to concentrate and think about the key attributes you’d prefer to see in people working in your transformation projects….
Let’s see if that has worked!
Wow, look at that! And surprisingly it comes very close to what I would have listed there!
Of course, attributes like xxx are the ones typically associated with innovation and progress. Many also associate it with a growth mindset.
Those of you who don’t have a team or an organization only consisting of such kind of people, please sit down
While it would indeed be great to have a team full of people like that, reality is that we can’t always have it that way and we can be lucky if we got 10-20% filled with those kind of people.
The rest would rather regularly show attributes like this….
This is not a massive problem but a reality we need to acknowledge and deal with in order to be successful in our transformation efforts.
Why is this important?
There is a labor market crunch and if you are not Google or Amazon, you might find it difficult to get the required attitudes, skills and capacities entirely from the external market!
You have to and you want to tap into the institutional and process knowledge within your existing workforce.
We need to help employees understand the changes ahead and enable them to stay relevant in a future market which will look different.
Typically you’ll end up with a mix of individuals who could be placed on a spectrum from heavily being against your plans to raving fans and drivers.
Opponents:
Might have no or very high skills or experience in the area
Might have made bad experiences in similar initiatives (retrenched, unsuccessful transformations)
Might have had a very successful career in the traditional world and fear to become obsolete
Sceptics:
Might have heard about unsuccsessful transformations (from colleagues, friends etc.)
Have read about AI etc. but don’t really understand
Doubt the business case presented
Followers:
Won’t have a real opinion
Just want to do their job but are ok to change if they’d been told to
Supporters:
Might have read or heard about successful transformations
Like gadgets and improving processes
Drivers:
Have a solid knowledge of what’s possible
Love innovation and clearly see the long-term benefits of the change
Will act as champions or leaders of the initiative
Start with Story “I just want to continue doing what I’m doing and don’t think AI is going to help us”
Any sports or other prominent story? Need to show them rather tell them!
Convincing them doesn’t work! We need to find other ways to help them change and leverage their knowledge etc. Stats of failure rates
Labour market situation (from KF Briefing)
Stats on how jobs will be impacted
Keep the institutional and process knowledge in-house
Many have a fixed mindset about digital – I won’t understand it / it’s too late for me to learn this etc. Misconception of what digital and AI can do to date
At the beginning of an initiative I would use a simple model like this to analyze the key stakeholders and define the main actions to be taken in order
to move the change element of a transformation into the right direction.
The aim is to get people’s support and boost their engagement in the transformation for mutual benefits.
At the same time, increasing people’s skills and experience levels forms an important part to drive overall success and typically has a positive impact on Support and engagement, too!
Of course not everybody in the organization needs to move to the top right corner depending on their role, but getting them further to the right should always be a target!
We’ll sped the remaining part of the presentation on a couple of strategies and steps to move the needle up in both dimensions.
The first and most fundamental factor is Consistent and solid leadership support – I’m sure you’ve heard this time and time again! Without this, any transformation initiative would be doomed!
The main message leaders have to transport is the answer to the question “Why?” – Why this solution, and why now.
It’s simply about being able to explain the vision, goals and strategy to get there.
They need to be prepared to explain the business case and rationale behind certain decisions and they need to be ready to provide sufficient funds and resources to be successful.
At Schroders, our CSA initiative which has started with RPA is sponsored and heavily supported by our local COO.
Aim for best solution – and explain why!
Sufficient funds
Capability
In order to build the right skills you need to provide training on variou