Techniques for transformation

Make it real!

TECHNIQUES FOR TRANSFORMATION Exploring the practicalities of BetaCodex change initiatives 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

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Underlying assumptions of our recent management model transformation projects 1. Organizations are systems . So they have to be transformed as such.

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Thus, finance people cannot do it alone.

(And it's actually much more fun approaching change holistically.)

A systemic view of the change process: don't plan too far ahead – follow the energy!

It´s all about human nature .

Apply Theory Y rigidly!

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.

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.

Everyone's communication styles and behaviour patterns must change.

Transformation thus requires people specialists, coaching and some training.

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.

Community is a foundation to successful implementation, because it provides orientation – the BetaCodex Network is the cornerstone of this community

Techniques for Transformation

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© Niels Pflaeging & Gebhard Borck – All rights reserved

Using the BBRT online diagnostic early-on

Techniques for Transformation

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© Niels Pflaeging & Gebhard Borck – All rights reserved

Knowledge TurnTables – reaching consensus within large groups Communicate directly

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Focused listening & documenting Focused listening & documenting

Listening & integrating

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Giving feedback

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Giving feedback

Communicate directly

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• 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.

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Focused listening & documenting Focused listening & documenting

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• 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.

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© Niels Pflaeging & Gebhard Borck – All rights reserved

Cognos Performance 2007, Germany

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© Niels Pflaeging & Gebhard Borck – All rights reserved

Cognos Performance 2007, Germany

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© 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

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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 …

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© Niels Pflaeging & Gebhard Borck – All rights reserved

Paradigma Leadership Workshop, Apr 2007

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Logoplaste Leadership Workshop, Mar 2007

This is Alice

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© Niels Pflaeging & Gebhard Borck – All rights reserved

Logoplaste Leadership Workshop, Mar 2007

And this is Alice, too.

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René Reinhold, Paradigma, Oct 2007

Choosing a name for your Beyond Budgeting initiative – 2 examples Logoplaste, Brazil

Paradigma group, Germany

FIRE Decentralize – Lead - Grow Preparing Logoplaste for growth

Techniques for Transformation

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 13

© 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 and the values defined in the case for change

Organizati o na change pro l cess

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Create a Pull sense of together a urgency guiding coalition

2. Neutral Zone 3.

Develop change vision and strategy

3. Beginning

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CommuniEmpower Produce cate for all others short-term underto act wins standing and buy-in

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Don't let up!

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Create a new culture

1. Ending ual Individ process e chang

• 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

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© 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

Phase in %

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Create a sense of urgency

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Pull together a Develop Communicate Empower all guiding change vision for understanothers coalition and strategy ding and to act buy-in

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Produce short-term wins

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Don´t let up

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.

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Using metaphors and models to challenge thinking The pyramid versus the peach

Periphery

Center Information

Decision Command

Impulse

Techniques for Transformation

Centralist command and control collapses in increasingly complex environments

Reaction

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Š Niels Pflaeging & Gebhard Borck – All rights reserved

2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen?

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Š Niels Pflaeging & Gebhard Borck – All rights reserved

2. Was meinen wir bei Paradigma, wenn wir von Beyond Budgeting sprechen?

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Š 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  …

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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…

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Social networking portals as platforms for discussion, internal networking and “empowered action” • Examples xing or yammer- online

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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

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© Niels Pflaeging & Gebhard Borck – All rights reserved

There are literally dozens of proven change-enabling tools and techniques that make transformation work…

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BBRT Diagnostic – in earliest stages Our Iceberg Is Melting book and tools Rapid Business Conference group method Double Helix change process framework based on Kotter/Bridges Metaphors and 3-D sculptures of the model Case for Change writing Social networking forums as communication and work platforms Twin meetings – multi-faceted learning forums

Other concepts:

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Change process flow to achieve top management buy-in (involving board and owners) Communication tools and channels Change tachometer Leadership development workshop series Knowledge conference for broad-based kick off …

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© Niels Pflaeging & Gebhard Borck – All rights reserved

Make it real!

www.betacodex.org

Silke Hermann

silke.hermann@ insights-group.de Wiesbaden–Berlin-New York

Get in touch with BetaCodex Network associates of your choice for more information about BetaCodex thinking, about leading transformation and profound change. Ask us for a keynote, a conversation, or a workshop proposal.

Walter Larralde wlarralde@ on-strategy.com Mexico City

Niels Pflaeging niels@betacodex.org nielspflaeging.com New York-Wiesbaden

Valérya Carvalho valeria@betacodex.org Betaleadership.com São Paulo

Lars Vollmer

vollmer@v-und-s.de www.lars-vollmer.com Hannover/Stuttgart

Chris Catto christopher.catto@ putneybreeze.com.au Melbourne