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TECHNIQUES
FOR
TRANSFORMATION
Exploring the practicalities of BetaCodex change initiatives
Make it real!
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
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 3
Using the BBRT online diagnostic early-on
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 4
Knowledge TurnTables –
reaching consensus within large groups
•  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.
•  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.
1
2
3
4
5
6
7
8
9
M
Communicate
directly
Focused listening
& documenting
Focused listening
& documenting
1
2
3
4
5
6
7
8
9
M
Listening &
integrating
Giving feedback
Giving feedback
4
5
7
8
9
1
2
3
6
M
Communicate
directly
Focused listening
& documenting
Focused listening
& documenting
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 5
Cognos Performance 2007, Germany
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 6
Cognos Performance 2007, Germany
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 7
Cognos Performance 2007, Germany
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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”
•  …
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 9
Paradigma Leadership Workshop, Apr 2007
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 10
Logoplaste Leadership Workshop, Mar 2007
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 11
Logoplaste Leadership Workshop, Mar 2007
This is Alice
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 12
René Reinhold, Paradigma, Oct 2007
And this is Alice, too.
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 13
Choosing a name for your Beyond Budgeting initiative –
2 examples
FIRE
Flexible - responding adaptively to market demands
Integrated - all involving all organization members
Respectful - in dealing with people and environment
Erfolgreich (successful) - as an organization and as
individuals
Paradigma group, GermanyLogoplaste, Brazil
Decentralize – Lead - Grow
Preparing Logoplaste for growth
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 14
1. Ending
3. Beginning2. Neutral Zone
3.
Develop
change
vision and
strategy
4.
Communi-
cate for
under-
standing
and buy-in
5.
Empower
all others
to act
6.
Produce
short-term
wins
7.
Don't
let
up!
8.
Create
a new
culture
1.
Create a
sense of
urgency
2.
Pull
together a
guiding
coalition
Organizationalchange process
Individual
change process
Applying a “Double Helix” change process framework within
transformational ”Beyond Budgeting“ change initiatives
•  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
•  Change structure
•  Change management processes
•  Align projects and decision processes with 12 principles
and the values defined in the case for change
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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.  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.
3.
Develop
change vision
and strategy
4.
Communicate
for understan-
ding and
buy-in
5.
Empower all
others
to act
6.
Produce
short-term
wins
7.
Don´t
let up
1.
Create a
sense of
urgency
2.
Pull together a
guiding
coalition
Phase in %
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 16
Using metaphors and models to challenge thinking
“The pyramid versus the peach”
Periphery
Center
Information Decision
Impulse
Command
Reaction
Centralist command and
control “collapses“ in
increasingly complex
environments
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 17
2. Was meinen wir bei Paradigma, wenn
wir von Beyond Budgeting sprechen?
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 18
2. Was meinen wir bei Paradigma, wenn
wir von Beyond Budgeting sprechen?
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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
!  …
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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…
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 21
Social networking portals as platforms for discussion,
internal networking and “empowered action”
•  Examples xing or yammer- online
communities for professional
networking and networked
communication, millions of users
world-wide
•  Platform offers excellent
functionalities for networked
communication („Groups“)
•  Cheap or even free service of the
platform
•  Documented and hierarchy-free
interaction
© Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 22
There are literally dozens of proven change-enabling tools and
techniques that make transformation work…
1.  BBRT Diagnostic, Organize for Complexity book, papers, videos etc. – 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.  …
© BetaCodex Network – All rights reservedWhite paper – The 3 Structures of an Organization 25
Find all BetaCodex Network white papers on www.betacodex.org/papers and on Slideshare.
Special	
  
Edi+on	
  
Special	
  
Edi+on	
  
The BetaCodex Network white papers - so far
www.organizeforcomplexity.com
The “Organize for Complexity” book
Paperback edition Deluxe edition
(with bonus chapter)
betacodex.org
Get in touch with us for more information about leading BetaCodex transformation,
and ask us for a keynote or a workshop proposal.
Make it real!
Niels Pflaeging
contact@nielspflaeging.com
nielspflaeging.com
New York, Wiesbaden
Valérya Carvalho
mvaleriacarv@gmail.com
LinkedIn
São Paulo
Silke Hermann
silke.hermann@nsights-group.de
insights-group.de
Wiesbaden, Berlin, New York
Lars Vollmer
me@lars-vollmer.com
lars-vollmer.com
Hannover, Stuttgart

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Techniques for Transformation (BetaCodex 01)

  • 1. TECHNIQUES FOR TRANSFORMATION Exploring the practicalities of BetaCodex change initiatives Make it real! 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. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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
  • 3. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 3 Using the BBRT online diagnostic early-on
  • 4. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 4 Knowledge TurnTables – reaching consensus within large groups •  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. •  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. 1 2 3 4 5 6 7 8 9 M Communicate directly Focused listening & documenting Focused listening & documenting 1 2 3 4 5 6 7 8 9 M Listening & integrating Giving feedback Giving feedback 4 5 7 8 9 1 2 3 6 M Communicate directly Focused listening & documenting Focused listening & documenting
  • 5. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 5 Cognos Performance 2007, Germany
  • 6. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 6 Cognos Performance 2007, Germany
  • 7. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 7 Cognos Performance 2007, Germany
  • 8. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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” •  …
  • 9. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 9 Paradigma Leadership Workshop, Apr 2007
  • 10. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 10 Logoplaste Leadership Workshop, Mar 2007
  • 11. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 11 Logoplaste Leadership Workshop, Mar 2007 This is Alice
  • 12. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 12 René Reinhold, Paradigma, Oct 2007 And this is Alice, too.
  • 13. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 13 Choosing a name for your Beyond Budgeting initiative – 2 examples FIRE Flexible - responding adaptively to market demands Integrated - all involving all organization members Respectful - in dealing with people and environment Erfolgreich (successful) - as an organization and as individuals Paradigma group, GermanyLogoplaste, Brazil Decentralize – Lead - Grow Preparing Logoplaste for growth
  • 14. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 14 1. Ending 3. Beginning2. Neutral Zone 3. Develop change vision and strategy 4. Communi- cate for under- standing and buy-in 5. Empower all others to act 6. Produce short-term wins 7. Don't let up! 8. Create a new culture 1. Create a sense of urgency 2. Pull together a guiding coalition Organizationalchange process Individual change process Applying a “Double Helix” change process framework within transformational ”Beyond Budgeting“ change initiatives •  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 •  Change structure •  Change management processes •  Align projects and decision processes with 12 principles and the values defined in the case for change
  • 15. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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.  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. 3. Develop change vision and strategy 4. Communicate for understan- ding and buy-in 5. Empower all others to act 6. Produce short-term wins 7. Don´t let up 1. Create a sense of urgency 2. Pull together a guiding coalition Phase in %
  • 16. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 16 Using metaphors and models to challenge thinking “The pyramid versus the peach” Periphery Center Information Decision Impulse Command Reaction Centralist command and control “collapses“ in increasingly complex environments
  • 17. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 17 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen?
  • 18. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 18 2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen?
  • 19. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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 !  …
  • 20. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 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…
  • 21. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 21 Social networking portals as platforms for discussion, internal networking and “empowered action” •  Examples xing or yammer- online communities for professional networking and networked communication, millions of users world-wide •  Platform offers excellent functionalities for networked communication („Groups“) •  Cheap or even free service of the platform •  Documented and hierarchy-free interaction
  • 22. © Niels Pflaeging & Gebhard Borck – All rights reservedTechniques for Transformation 22 There are literally dozens of proven change-enabling tools and techniques that make transformation work… 1.  BBRT Diagnostic, Organize for Complexity book, papers, videos etc. – 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.  …
  • 23. © BetaCodex Network – All rights reservedWhite paper – The 3 Structures of an Organization 25 Find all BetaCodex Network white papers on www.betacodex.org/papers and on Slideshare. Special   Edi+on   Special   Edi+on   The BetaCodex Network white papers - so far
  • 24. www.organizeforcomplexity.com The “Organize for Complexity” book Paperback edition Deluxe edition (with bonus chapter)
  • 25. betacodex.org Get in touch with us for more information about leading BetaCodex transformation, and ask us for a keynote or a workshop proposal. Make it real! Niels Pflaeging contact@nielspflaeging.com nielspflaeging.com New York, Wiesbaden Valérya Carvalho mvaleriacarv@gmail.com LinkedIn São Paulo Silke Hermann silke.hermann@nsights-group.de insights-group.de Wiesbaden, Berlin, New York Lars Vollmer me@lars-vollmer.com lars-vollmer.com Hannover, Stuttgart