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Techniques for Transformation.
Exploring the Practicalities of
“BetaCodex“ Change Management


BetaCodex Network Associates
Niels Pflaeging – Gebhard Borck
Presentation originally held by Niels at BBRT Europe Meeting No. 40, Oct 2007
Edited as BetaCodex Network white paper No.1 Mar 2008, updated Nov 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.
  8.      “Community” is a foundation to successful implementation, because it
          provides orientation – the BetaCodex Network is the cornerstone of this community
Techniques for Transformation                                 © Niels Pflaeging & Gebhard Borck – All rights reserved
Using the BBRT online diagnostic early-on




Techniques for Transformation               © Niels Pflaeging & Gebhard Borck – All rights reserved
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                                                      © Niels Pflaeging & Gebhard Borck – All rights reserved
Techniques for Transformation   © Niels Pflaeging & Gebhard Borck – All rights reserved
                                         Cognos Performance 2007, Germany
Techniques for Transformation   © Niels Pflaeging & Gebhard Borck – All rights reserved
                                         Cognos Performance 2007, Germany
Techniques for Transformation   © Niels Pflaeging & Gebhard Borck – All rights reserved
                                         Cognos Performance 2007, Germany
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                            © Niels Pflaeging & Gebhard Borck – All rights reserved
Techniques for Transformation   © Niels Pflaeging & Gebhard Borck – All rights reserved
                                 Paradigma Leadership Workshop, Apr 2007
Techniques for Transformation   © Niels Pflaeging & Gebhard Borck – All rights reserved
                                 Logoplaste Leadership Workshop, Mar 2007
This is Alice




Techniques for Transformation                   © Niels Pflaeging & Gebhard Borck – All rights reserved
                                                 Logoplaste Leadership Workshop, Mar 2007
And this is Alice, too.




Techniques for Transformation                             © Niels Pflaeging & Gebhard Borck – All rights reserved
                                                                   René Reinhold, Paradigma, Oct 2007
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                          © 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
Organizati
          onal                                          and the values defined in the case for change
change pro
           cess
                                                 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                                                 © 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

                               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                                             © Niels Pflaeging & Gebhard Borck – All rights reserved
Using metaphors and models to challenge thinking


  “The pyramid versus the peach”




                                                 Periphery


                                                     Center


                                 Information     Decision

                                                     Command

                                                                      Centralist command and
                                Impulse                                control “collapses“ in
                                          Reaction
                                                                       increasingly complex
                                                                           environments
Techniques for Transformation                                  © Niels Pflaeging & Gebhard Borck – All rights reserved
2. Was meinen wir bei Paradigma, wenn
   wir von Beyond Budgeting sprechen?




 Techniques for Transformation   © Niels Pflaeging & Gebhard Borck – All rights reserved
2. Was meinen wir bei Paradigma, wenn
   wir von Beyond Budgeting sprechen?




 Techniques for Transformation   © 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 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                                 © 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 hierarchy-free
     interaction




Techniques for Transformation             © Niels Pflaeging & Gebhard Borck – All rights reserved
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                                    © Niels Pflaeging & Gebhard Borck – All rights reserved
Make it real!




www.betacodex.org




                              Gebhard Borck           Niels Pflaeging       Valérya Carvalho
                              gebhard@betacodex.org   niels@betacodex.org   valeria@betacodex.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

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BetaCodex01 - Techniques for Transformation

  • 1. Make it real! Techniques for Transformation. Exploring the Practicalities of “BetaCodex“ Change Management BetaCodex Network Associates Niels Pflaeging – Gebhard Borck Presentation originally held by Niels at BBRT Europe Meeting No. 40, Oct 2007 Edited as BetaCodex Network white paper No.1 Mar 2008, updated Nov 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 community Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 3. Using the BBRT online diagnostic early-on Techniques for Transformation © 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 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 5. Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germany
  • 6. Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved Cognos Performance 2007, Germany
  • 7. Techniques for Transformation © 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 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 9. Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved Paradigma Leadership Workshop, Apr 2007
  • 10. Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved Logoplaste Leadership Workshop, Mar 2007
  • 11. This is Alice Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved Logoplaste Leadership Workshop, Mar 2007
  • 12. And this is Alice, too. Techniques for Transformation © 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 © 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 pro cess 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 © 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 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 16. Using metaphors and models to challenge thinking “The pyramid versus the peach” Periphery Center Information Decision Command Centralist command and Impulse control “collapses“ in Reaction increasingly complex environments Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 17. 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen? Techniques for Transformation © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 18. 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen? Techniques for Transformation © 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 © 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 © 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 © 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 © Niels Pflaeging & Gebhard Borck – All rights reserved
  • 23. Make it real! www.betacodex.org Gebhard Borck Niels Pflaeging Valérya Carvalho gebhard@betacodex.org niels@betacodex.org valeria@betacodex.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