Leadership in Transformation

A common topic of debate in the Responsive Organization movement is whether an organization can become responsive or it must be born that way.

Undoubtedly many of the leading case studies of future of work organizations are organizations created or rebirthed from near death by charismatic founders. Some use this as evidence that the elements of a responsive organization must be present from the beginning. In a previous post, I pointed out that we cannot rely on transparency alone to make change occur for us. The power structures in a traditional organisation will prevent most radical change.

I am unambiguously in the optimist camp. I am not alone and the company in the optimist camp inspires me. I have seen organizations change enough to not recognise their former selves. Change to more responsive ways of working is possible. The question is how.

What gets in the way

Chris Argyris’ classic article Teaching Smart People to Learn is a rich source of observations of what gets in the way of a Responsive Organization transformation.  In particular, Argyris notes that:

… There seems to be a universal human tendency to design one’s actions consistently according to four basic values:

1. To remain in unilateral control;

2. To maximize “winning” and minimize “losing”;

3. To suppress negative feelings; and

4. To be as “rational” as possible—by which people mean defining clear objectives and evaluating their behavior in terms of whether or not they have achieved them.

The purpose of all these values is to avoid embarrassment or threat, feeling vulnerable or incompetent. In this respect, the master program that most people use is profoundly defensive. Defensive reasoning encourages individuals to keep private the premises, inferences, and conclusions that shape their behavior and to avoid testing them in a truly independent, objective fashion.

These hidden values in most organisation get in the way of the transparency-led transformation that many hope to see. The Responsive Organization poses a threat to control, a threat of losing and negative feelings. Importantly the delegation of authority in a Responsive Organization may cause people anxiety as to objectives and rationale for action.

The role of leadership is to act as a counterbalance these natural human values and shift the behaviours to that of a Responsive Organization. We need to create rationales for action more powerful than embarrassment. We need to create community to generate trust, support and connection. We need to enable learning through conflict and experimentation. 

Purpose:

Leaders must create a strong rationale for the transformation. In cases of crisis, startup or near death of organizations, this rationale can often be imposed by a charismatic individual. The external circumstances enable a threat based narrative to bind people together in a defensive rationale for change.

However, most organizations are successful to their own terms. As Argyris notes, we want to feel successful even if our results don’t pass external muster.  

Leaders need to leverage two elements to create a strong rationale for change in this context:  

  • The Purpose of the organization: a purpose is the ultimate rationale for why people come together in an endeavour. It defines the common impact the group of people wish to have on the world.  As a higher agenda, it is the perfect rationale for change for even the most successful organisations.  Purpose is a mastery quest. Very few organizations have the capability to completely fulfil their purpose. They can however strive to better realise it.
  • External orientation: No closed system will find a rationale for change. External orientation is where organizations find the challenges and opportunities that define the purpose into specific improvement opportunities. Leaders need to relentlessly focus the organization on its customers and community to see transparently the challenges and opportunities that exist for change. Well defined external impacts in this community will be what can drive the autonomy of teams in the organization.  Using customer and community data in line with Purpose, also enables change agents to overcome embarrassment-based resistance in the organization.

Community:

Individuals will need support to take on the risks of a Responsive Organization. The role of leaders is to create the sense of community that will support an individual through that change. At the heart of that community will be engagement with others and a growing sense of mutual trust.  Leaders set the tone for any community. They must also work hard to reinforce these key community behaviours

  • Engagement: Engagement begins with transparency and connection. I cannot truly care about the others in my community until I know who they are and understand their purposes, concerns and circumstances. Leaders need to create the conditions to enable people to be more social, to connect, to solve and to share their work challenges together.
  • Trust: Engagement will build trust as it builds understanding. Transparency will reinforce trust. However, leaders need to take on the role of fostering responsibility and accountability as engines of growing trust in the organization.  When people see that individuals and teams are accountable for driving change then they will have greater trust in the change agenda.

Learning:

This post is deliberately not titled like a listicle e.g. ’The 3 or 6 things to transform an organisation’. Even a basic familiarity with change highlights that formulas will work only up to a point. Leadership needs to be adaptive to enable any system to change in a sustainable way.

To be true to their purpose and stakeholders, to leverage the potential of their community, each organization will take an unique path through change.  The role of leaders is facilitate the individual and organizational learning required:

  • Experimentation: creating a culture of rapid iteration to address challenges and opportunities will accelerate the cycle of learning in the organization. Leaders must help this experimentation culture to overcome the resistance identified by Argyris and also to spread and have a wider influence in the organization. Lessons learned must become new truths which will take a sense-making role for leaders in the wider organization and mean leaders must champion new ways of working when they arise, whatever the personal costs.
  • Conflict: The biggest reason that organizational transformations fail is an unwillingness of the leadership of the organisation to allow uncertainty and conflict. Conflict will happen. The uncertainty associated with conflict is inevitable. Efforts to suppress this will either undermine transparency, the rationale for change, engagement or learning. Failure to embrace conflict takes many names: politeness, bureaucracy, politics, corporate speak, history, culture, etc. Failure to embrace conflict is an unwillingness to learn and improve. There will always be resistance when change comes and it must be addressed. Leaders need to create and sustain the right kinds of constructive conflict – driven by purpose, based in facts from an external orientation & experimentation, mediated through an engaged community. 

Change is Coming. Lead.

I have seen the potential of purpose, external orientation, engagement, trust experimentation and conflict to drive change. Supported by leadership these are the elements of each organization’s transformation. These elements are critical to a Responsive Organization.

Throughout this post I have referred to leaders and leadership. This need not be hierarchical leadership. Clearly it helps if leadership and power are aligned in an organization in reinforcing the need for change. However, the changes described above are not capable of being implemented by top-down edicts. These changes must come as individuals and groups discover their power and are influenced as a result, This kind of leadership relies on influence and can begin bottom up or even from the middle management so often scorned in organizations.

Change is possible. Change is coming. Smart people can learn. Your people and your organisation can better realise their potential and their purpose. A Responsive Organization transformation will occur if you are prepared to lead the change.

Lead.

Change the Conversation

A large part of the history of our technology has been the effort to use technology to control human behaviour. Technology transformation is often sold on the potential to better make humans do things that they should be doing. The failure of so many transformational technology programs is proof that human behavioural changes are a subtler and more elusive challenge. Changing the conversation is as important as changing the process.

The Business Case for Technology Transformation

Leadership mindsets from the industrial era often lead to the management question:

What can we do to make people do the right thing?’.

Technology transformation is sold on a promise of offering the answer. Too commonly management will choose a new technology system or process as delivering a way to make people ‘do better’. For example:

  • Customer Relationship Management systems will deliver better conversations with customers and better sales force productivity
  • Human resources systems will deliver better talent, engagement and performance conversations and better compliance with required processes
  • Business Process Management systems will enable better and more granular control of the processes that people use to do the work
  • Enterprise collaboration tools will make an organisation more collaborative
  • Knowledge management tools will make organisations better informed
  • Better analytical tools using big data will deliver better decisions in organisations  

However, these technologies are usually only an infrastructure to support new behaviours and new conversations. Their capabilities underpin human behaviour. New processes will encourage change. New data capture and reporting may help measure activity. Without a willingness to change to new behaviours from users, the systems alone cannot make change without risk of major disruption or disengagement.

Technology rarely can require a new behaviour or a new conversation. Human creativity enables remarkable ways to cling to old ways in the face of new technology. Even to the extent that these technologies deliver better measurement of human activity, organisations are often frustrated to discover that the ability to measure and target activity simply generates activities to solely meet the measures, not behavioural change. Quantities are achieved as the cost of both productivity and quality. 

Change the Conversation 

Changing the leadership question can have a dramatic impact on how an organisation makes decisions. Here’s a different question for management to ask about a transformation of technology:

What do our people need to better deliver our goals?’

There are a number of advantages that flow from changing the conversation around change and transformation in this way:

  • Engaging your users: Instead of assuming management or a technology vendor has the answers, the question opens up a conversations for people who do the work to contribute and learn. Treat your employees as skilled knowledge workers and respect their creativity and opinions. These people will have the best context on what is causing the issues and what support they need.  Engaging their input will be the most powerful element of change in performance. At the end of the day, the behaviours that need to change are theirs.
  • Change the leadership conversation: Shifting from a control mindset to one that is about realising the potential of the team is a powerful change in an organisational conversation. A transformation can be a key way to help accelerate this change in mindset. If employees feel trusted and are free to share, many people will highlight the way that the leaders themselves may need to change as part of that transformation too.  The best change begins with those seeking to drive change.
  • You may not need new tools or a new process: How many systems have been implemented to solve issues which were simply a lack of clarity of purpose or objectives of work? Do people need new skills or capabilities instead of new systems? Do people need new freedoms, approaches & leadership support to respond in an agile way to market needs? Consider alternatives and additional elements to enable the behaviour changes that arise.
  • Inconsistent demands on people:  Engaging your people in change will highlight areas where you are being inconsistent. In a siloed organisation systems often work at cross purposes. Are you sure that all the other elements of your systems & culture reinforce the right goals? For example, it is common for people in sales and service roles to experience that their time is used up with low value compliance tasks. As a result high value customer tasks will get pushed from the system. Forcing additional compliance will only make that worse. If performance management systems and the real leadership conversations in your organisation work against your new system, it is dead before it is even deployed.
  • Engaging outside the organisation: Do your customers want to give you the data that you need for your new CRM or analytics system? Does the change in sales approach or work process improve their experience as well? Will great talent be rewarded by working in your performance management system? Are you sure you can articulate the value of these changes to external stakeholders? Your people will need to do so. Your people’s reluctance to do your view of ‘the right thing’ might be saving you from broader issues with customers or other stakeholders.
  • Pace of change: Changing systems takes time. When will the system need to change again to adapt to a rapidly changing market? Are your people holding back because they can see the next change coming? Are you better to focus on your ability to change behaviours in more agile ways than through changing technology systems?

Technology transformation can be a powerful enabler of organisational change. However, it is merely an enabler. Changing the leadership conversation is often the critical element to ensuring the success of a transformational change.

Image source: http://pixabay.com/en/ravens-black-birds-conversation-236333/