How Do You Lead Transformational Change?
Robert HeinzmanPartner | Global Science PracticeGrowth River
Mandy RossMarketing DirectorSococo
What kinds of change initiatives are currently engaged in?
Or currently envisioning?
Poll #1
1. 3 Kinds of Change2. 3 Steps Of The Change Leadership Game3. 3 Frameworks For Leading Change Effectively
Primary Constraint LogicThe Seven Principles for Team EffectivenessThe Business Triangle
What You Will Learn In This Webinar
Frameworks Are Essential For Building A Coalition For Change
Point A Point B
Purpose
Focus
Mindset
Roles
Strategies
*Some team attributes that need to be aligned to navigate change
“We are not that good at leading change.”
- John KotterProfessor Emeritus, Harvard Business School
Why Care? To Be Succinct…
Analysis To Support This Claim
Only 20% of organizations can be considered competent at leading change.
Nearly 70% of change initiatives fail to meet project objectives of time, cost and quality.
You could not step twice into the same river.
quoted by Plato, 402 BC
Framing Thought #1: Remember Heraclitus
A competency for individuals, especially leaders.
An organizational capability.
Framing Thought #2: The Ability To Lead Change Is Critical
Framing Thought #3: You Need A Coalition For Change (the power of
story)
1.3 Kinds of Change2. 3 Steps Of The Change Leadership Game3. 3 Frameworks For Leading Change Effectively
Primary Constraint LogicThe Seven Principles for Team EffectivenessThe Business Triangle
What You Will Learn In This Webinar
Adapted from Beyond Change Management, Anderson & Ackerman Anderson, 2010
1. Developmental Change
Developmental Changes: Improving on what you already have; e.g., streamlining processes and procedures.
Adapted from Beyond Change Management, Anderson & Ackerman Anderson, 2010
2. Transitional Change
Transitional Changes: Changing from an old way of doing something to a new way; e.g., switching over to a new finance or IT system.
Old State
New State
Sometimes annoying things happen here.
Fairly predictable workflow
Adapted from Beyond Change Management, Anderson & Ackerman Anderson, 2010
Developmental & Transitional
• Clear endpoints.• Clear path for getting from A
to Z.• Can be managed as
projects.
Future unknown. Path uncertain.People see work together differently.Linkages unclear and restructuring likely.Coalition for change.
3. Transformational Change
A major urban school district 100% of 8-year olds reading at a 3rd grade level.A pharmaceutical company loses 40% of it’s market share due to sanctions against the Russian Federation has to open new markets.A medical cannabis startup operates in a sea of financial and legal ambiguity envisions creating national brands.A hearing aid manufacturer acquires 40 individual audiology clinics needs all 40 behave as one company.
Examples Of Transformational Change
Think of the change initiatives that you wrote down earlier.
Are they:Developmental?
Transitional?Transformational?
Poll #2
WARNING: Anti-change Antibodies Are Real
The Land Of Effective Teams
Welcome to Planet Change
Leaders & Teams working in the context of shared purpose.
Currencies of the realm:optimism, collaboration, mutual accountability, credibility and trust
Implementing winning business models in the context of value creation.
Currencies of the realm:business models, strategies, plans, shrewd thinking and proven track records.
The National Sport: attaining breakthroughs towards inspiring opportunities.
The National Sport:delivering tangible benefits.
The Land Of Customer Value
The Land Of Effective Teams
Changing Business Culture & Business Model Simultaneously
The Land Of Customer Value
Vapor wareWishful thinking
ConflictNo innovation
Change Leaders: The Star Athletes & Heroes Of Planet Change
Experts in: • Setting priorities • Making sequential investments in
culture and business • Maximize return and accelerate
growth.
The Change Leadership OS
A master toolset for leading complex change – through teams –in businesses and organizations.
1. 3 Kinds of Change
2.3 Steps Of The Change Leadership Game3. 3 Frameworks For Leading Change Effectively
Primary Constraint LogicThe Seven Principles for Team EffectivenessThe Business Triangle
What You Will Learn In This Webinar
Step # 1
1. Activate A Compelling Purpose. make the desired future state compelling and easy to envision, as the inevitable outcome of a logical model. Desired Future
Step # 2
2. Conduct A Gap Analysis. Second, you identify the capacity gaps between the current state and this desired future state.
Desired Future
Capacities
Inve
stm
ent
Current State
Capacity Gap
3. Lead A Coalition To Resolve Gaps. Third you lead choices, actions, experiences and habits that resolve these gaps, bringing yourself and others closer to the desired future state.
Step # 3
What Gaps Are You Looking For?
The Big Question:
1. 3 Kinds of Change2. 3 Steps Of The Change Leadership Game3. 3 Frameworks For Leading Change Effectively
Primary Constraint LogicThe Seven Principles for Team EffectivenessThe Business Triangle
What You Will Learn In This Webinar
Primary ConstraintThe one capability gap that currently most limits higher sustainable performance.
shall ascend to a better future for our people if we focus on
identifying and resolving primary constraints to performance.”
“We
Framework #1: Identifying & Resolving Primary Constraints To Higher Performance
Investments to resolve a primary constraint represent the highest return of all potential
investments.
Average Performance
Above Average Performance
Way-Above Average Performance
The 2nd and 3rd Frameworks Allow You To Precisely Identify Primary Constraints & Close Gaps In Performance
The Seven Principles For Team Effectiveness℠
The Business Triangle℠
1. 3 Kinds of Change2. 3 Steps Of The Change Leadership Game
3. 3 Frameworks For Leading Change EffectivelyPrimary Constraint Logic
The Seven Principles for Team EffectivenessThe Business Triangle
What You Will Learn In This Webinar
Purpose
Focus
Mindset
RolesInterdependencies
Strategies
Implementation
Alignment &
Execution
Framework #2: The Seven Principles Of Team Effectiveness
A framework for identifying and
resolving a team’s current primary
constraint to team effectiveness.
1.Inspired by purpose2.Clear-eyed focus3.Accountable and collaborative mindset4.Right skills in the right roles5.Strong and clear interdependencies, reinforcing team
agreements6.Advocating strategies from a customer value perspective7.Laser focused on implementation that resolves primary
constraints for the highest impact and ROI
The Goal Is A High Performing Team That Is…
HIER
ARCH
Y
1.Inspired by purpose2.Clear-eyed focus3.Accountable and collaborative mindset4.Right skills in the right roles5.Strong and clear interdependencies6.Advocating strategies from a customer value perspective7.Laser focused on implementation that resolves primary
constraints for the highest impact and ROI
The Goal Is A High Performing Team That Is…
Client StoryNegligent BoardUninspired leadership committed to status quoDisenfranchised staffLimiting stories (‘our problem is lack of money’)‘Functionitus’ – functional capability priorities were competing to build systems and losing an emphasis on delivering seamless value to clients.
So a new leader is brought in, who hires Growth River
How Do We Identify & Resolve Primary Constraints To Team Effectiveness?
1. Activate A Compelling Purpose.
What is the future vision for each principle? 2. Conduct A Gap Analysis.What is the current state? Where are the gaps?3. Lead A Coalition To Resolve
Gaps.What sequence of investments?
So We Follow The 3 Steps Of The Change Game
Purpose
Focus
Mindset
RolesInterdependencies
Strategies
Implementation
1. Activate A Compelling Purpose
“We – each of us – are going to turn this organization around. We are going to rewrite the map for our industry – and each individual client we touch is going to experience the support and care they need to take their business to the next level of performance.We can see the top of the mountain, but we are uncertain of the trail ahead. We’ve never attained this level of performance.And that is why each of us has to own getting to the top.
2. Conduct A Gap Analysis(ask: what are the gaps between our current and desired future state?)
2. Collect data and analyze (what is our current state?)
1.PURPOSE − Are we a strong team with a clear purpose?
2.FOCUS − Do we have aligned priorities, driven by data on our current state, and are those priorities aligned to achieve our future state?
3.MINDSET − Do we think and act with accountability and demonstrate inspiring leadership for others?
4. ROLES − Does every key strategy, decision and activity have a single owner who is accountable for execution and owns driving key issues to resolution?
5. INTERDEPENDENCIES − Are we clear where shared work exists; are we collaborating effectively? Do we have clear and effective rules for engagement?
2. Collect data and analyze (what is our current state?)
6. STRATEGIES − Are all team leaders advocating and then aligning ways forward, each from the perspective of their role, in service of business results?
7. IMPLEMENTATION − Are we communicating a compelling way-forward, taking actions, course correcting, and delivering tangible results in a way that creates confidence and trust?
2. Collect data and analyze (what is our current state?)
Principle Current State Future state
Purpose Not clear and definitely not inspired
Inspired by purpose
Focus Dispersed, little accountability Data-driven investments to resolve current primary constraints w/ precision
Mindset Mistrustful, separate, senior team completely unaligned
High degrees of mutuality, trust and collaboration
Roles Functionitus, Toxic Rock Stars, missing business leader roles
Every key issue has a driver with sufficient skill and final call authority
Interdependencies Meetings ineffective, conflict unresolved, ships passing in the night
Clear system-of-meetings, protocols for driving compelling requests and conflict resolution
Strategies Business segments unclear Clear segmentation with specific strategies for each business
Implementation Nobody is really tracking anything
Metrics in place that monitor all key processes and outcomes
Gap Analysis
3. Lead A Coalition To Resolve Gaps.
Principle Current State Future state
Purpose ✓ Not clearly stated “…rewrite the map for our services”
Focus ✓ Dispersed, little accountability Data-driven investments to resolve current primary constraints w/ precision
Mindset Mistrustful, senior team unaligned
High degrees of mutuality, trust and collaboration
Roles Functionitus, missing business leader roles
Every key issue has a driver with sufficient skill and final call authority
Interdependencies Meetings ineffective, conflict unresolved
Clear system-of-meetings, protocols for driving compelling requests and conflict resolution
Strategies Business segmentation unclear Clear segmentation with specific strategies for each business
Implementation Nobody is really tracking anything
Metrics in place that monitor all key processes and outcomes
Focus Like A Laser On Closing The Biggest & Most Important Gaps First
Principle Current State Future state
Purpose ✓ Not clearly stated “…rewrite the map for our services”
Focus ✓ Dispersed, little accountability Data-driven investments to resolve current primary constraints w/ precision
Mindset ✓ Mistrustful, separate, senior team completely unaligned
High degrees of mutuality, trust and collaboration
Roles Functionitus, Toxic Rock Stars, missing business leader roles
Every key issue has a driver with sufficient skill and final call authority
Interdependencies Meetings ineffective, conflict unresolved, ships passing in the night
Clear system-of-meetings, protocols for driving compelling requests and conflict resolution
Strategies Business segments unclear Clear segmentation with specific strategies for each business
Implementation Nobody is really tracking anything
Metrics in place that monitor all key processes and outcomes
Focus Like A Laser On Closing The Gaps
Principle Current State Future state
Purpose ✓ Not clearly stated “…rewrite the map for our services”
Focus ✓ Dispersed, little accountability Data-driven investments to resolve current primary constraints w/ precision
Mindset ✓ Mistrustful, separate, senior team completely unaligned
High degrees of mutuality, trust and collaboration
Roles ✓ Functionitus, Toxic Rock Stars, missing business leader roles
Every key issue has a driver with sufficient skill and final call authority
Interdependencies Meetings ineffective, conflict unresolved, ships passing in the night
Clear system-of-meetings, protocols for driving compelling requests and conflict resolution
Strategies Business segments unclear Clear segmentation with specific strategies for each business
Implementation Nobody is really tracking anything
Metrics in place that monitor all key processes and outcomes
Focus Like A Laser On Closing The Gaps
3-Second Gut call:
Right now, today, where is the biggest gap constraining the effectiveness of your team?
Where will the constraint move next?
Poll #3
1.Purpose2.Focus3.Mindset4.Roles5.Interdependencies6.Strategies7.Implementation
1. 3 Kinds of Change2. 3 Steps Of The Change Leadership Game3. 3 Frameworks For Leading Change Effectively
Primary Constraint LogicThe Seven Principles for Team Effectiveness
The Business Triangle
What You Will Learn In This Webinar
Framework #3: The Business Triangle℠
A system-of-capabilities aligned to develop, sell and deliver products and
services to target customers
with support from partners towards competitive advantage.
Definition of a business:
Framework #3: The Business Triangle℠
WinningValue
Propositions1.
DEVE
LOPI
NG
BuildMarket
Potential
PurchaseMoments
2.
SELLINGBuild
MarketShare
TheCustomer’s
Experience (+/-)
3.DELIVERING
PositiveReferrals & ROI
BuildReputation
4.SUPPORTING
BuildEconomies of
Scale
The Business Triangle℠1.
DE
VELO
PING 2.
SELLINGTheCustomer’s
Experience (+/-)
3.DELIVERING
4.SUPPORTING
4. Supporting and leveraging economies of scale.
HIER
ARCH
Y
1. Developing winning value-propositions — “why” is serving your target customer better.2. Selling or Advocating perfect purchase moments.
3. Delivering target value and generating referrals.
Lead Change By Identifying And Resolving Primary Constraints
Performance / Time
**
*
1.
DEVE
LOPI
NG 2.
SELLINGTheCustomer’s
Experience (+/-)
3.DELIVERING
4.SUPPORTING
Example Retail Business Triangle
Visual DisplayMerchandising
Design
Stores Mgmt.
Catalog Marketing
AllocationWarehousingCustomer
Service
Product Dev.
Sourcing
E-commerce
Real Estate
LogisticsSELL
DELIVERDE
VELO
P
Customer
Example Professional Services Business Triangle
Prospecting & QualifyingMethodology Dev.
Product / Service Dev.
Website / Marketing Campaigns
Marketing Partnerships
Account Management
ProjectManagement
Coaching
Consultant Dev.
Business Development
Team Sales
Data Collection & Analysis
SELL
DELIVERDE
VELO
P
Customer
MeetingFacilitation
SkillDevelopment
Example Manufacturing Business Triangle
R&D
Product Dev.
Website / Marketing Campaigns
Account Management
ProcurementQuality
Consultant Dev.
Business Development
Team Sales
Physical Plant
SELL
DELIVERDE
VELO
P
Customer
SafetyRegulatory
Example Health Clinic Business Triangle
Grant Writing
Sta
ff Tr
aini
ng
Marketing
Program Development
CustomersWho Make
Positive Referrals
SuccessfulPurchaseMoments
TheCustomer’sExperience
1) D
EVEL
OPING 2) SELLING
3) DELIVERING
TargetedValue
Propositions
Qual
ity
Assu
ranc e
Major Donors
Planned Giving
Communications
Inta
ke
Clin
ical
Volu
ntee
r Co
ordi
nat
ion
Business Triangle for Our Human Services Organization
PolicyGov’t Relations
CustomersWho Make
Positive Referrals
SuccessfulPurchaseMoments
TheCustomer’sExperience
1) D
EVEL
OPING
2) SELLING
3) DELIVERING
TargetedValue
Propositions
IT
4) SUPPORTFinance
Facilities
Legal
HR
Support capabilities are not customer facing. Clients for support roles include everyone else in the organization.
CustomersWho Make
Positive Referrals
SuccessfulPurchaseMoments
TheCustomer’sExperience
1) D
EVEL
OPING 2) SELLING
3) DELIVERING
TargetedValue
Propositions
Primary Constraint to Delivering Customer Value
Grant Writing
Sta
ff Tr
aini
ng
Marketing
Program Development
CustomersWho Make
Positive Referrals
SuccessfulPurchaseMoments
TheCustomer’sExperience1)
DEV
ELOPI
NG 2) SELLING
3) DELIVERING
TargetedValue
Propositions
Qual
ity
Assu
ranc e
Major Donors
Planned Giving
Communications
Inta
ke
Clin
ical
Volu
ntee
r Co
ordi
nat
ion
Primary Constraint to Growth
PolicyGov’t Relations
*
Grant Writing
Sta
ff Tr
aini
ng
Marketing
Program Development
CustomersWho Make
Positive Referrals
SuccessfulPurchaseMoments
TheCustomer’sExperience
1) D
EVEL
OPIN
G 2) SELLING
3) DELIVERING
TargetedValue
Propositions
Qual
ity
Assu
ranc e
Major Donors
Planned Giving
Communications
Inta
ke
Clin
ical
Volu
ntee
r Co
ordi
nat
ion
Policy
Gov’t Relations
*
Primary Constraint to Growth
Principle Current State Future state
Purpose ✓ Not clearly stated “…rewrite the map for our services”
Focus ✓ Dispersed, little accountability Data-driven investments to resolve current primary constraints w/ precision
Mindset ✓ Mistrustful, separate, senior team completely unaligned
High degrees of mutuality, trust and collaboration
Roles ✓ Functionitus, Toxic Rock Stars, missing business leader roles
Every key issue has a driver with sufficient skill and final call authority
Interdependencies ✓ Meetings ineffective, conflict unresolved, ships passing in the night
Clear system-of-meetings, protocols for driving compelling requests and conflict resolution
Strategies Business segments unclear Clear segmentation with specific strategies for each business
Implementation Nobody is really tracking anything
Metrics in place that monitor all key processes and outcomes
Focus Like A Laser On Closing The Gaps
Principle Current State Future state
Purpose ✓ Not clearly stated “…rewrite the map for our services”
Focus ✓ Dispersed, little accountability Data-driven investments to resolve current primary constraints w/ precision
Mindset ✓ Mistrustful, separate, senior team completely unaligned
High degrees of mutuality, trust and collaboration
Roles ✓ Functionitus, Toxic Rock Stars, missing business leader roles
Every key issue has a driver with sufficient skill and final call authority
Interdependencies ✓ Meetings ineffective, conflict unresolved, ships passing in the night
Clear system-of-meetings, protocols for driving compelling requests and conflict resolution
Strategies ✓ Business segments unclear Clear segmentation with specific strategies for each business
Implementation Nobody is really tracking anything
Metrics in place that monitor all key processes and outcomes
Focus Like A Laser On Closing The Gaps
3-Second Gut call:
Right now, today, where is the biggest gap constraining delivery of value to your target customers?
And where will it move next?
Poll #4
1.Develop Capabilities2.Sell Capabilities3.Deliver Capabilities4.Support Capabilities
Purpose
Focus
Mindset
RolesInterdependencies
Strategies
Implementation
Primary Constraint Logic
1.
DEVE
LOPI
NG 2.
SELLINGTheCustomer’s
Experience (+/-)
3.DELIVERING
4.SUPPORTING
The Goal: A Team Capability To Identify and Resolve Primary Constraints To Team
Effectiveness & Delivery Of Customer ValueTeam Effectiveness
The Business Triangle
1. 3 Different Kinds of ChangeDevelopmentalTransitionalTransformational
Key Take-Aways
2. 3 Basic Steps Of The Change Leadership Game
Activate A Compelling Purpose. Conduct A Gap Analysis.Lead A Coalition To Resolve Gaps.
Key Take-Aways
1. 3 Frameworks For Leading Change Effectively
Primary Constraint Logic
The Seven Principles for Team Effectiveness
The Business Triangle
Key Take-Aways
Robert HeinzmanPartner | Global Science [email protected]