3 Steps to Lead Transformational Change Within Your Organization

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



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.


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


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



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:




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


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


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?


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?


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.


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


Roles Functionitus, missing business leader roles


Interdependencies Meetings ineffective, conflict unresolved


Strategies Business segmentation unclear Clear segmentation with specific strategies for each business



Focus Like A Laser On Closing The Biggest & Most Important Gaps First




Mindset ✓ Mistrustful, separate, senior team completely unaligned


Roles Functionitus, Toxic Rock Stars, missing business leader roles







Focus Like A Laser On Closing The Gaps






Roles ✓ Functionitus, Toxic Rock Stars, missing business leader roles








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


Primary Constraint LogicThe Seven Principles for Team Effectiveness

The Business Triangle


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.


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



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



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


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



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








Interdependencies ✓ Meetings ineffective, conflict unresolved, ships passing in the night













Interdependencies ✓ Meetings ineffective, conflict unresolved, ships passing in the night


Strategies ✓ Business segments unclear Clear segmentation with specific strategies for each business




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


Strategies

Implementation

Primary Constraint Logic

1.

DEVE

LOPI

NG 2.


Experience (+/-)

3.DELIVERING

4.SUPPORTING

The Goal: A Team Capability To Identify and Resolve Primary Constraints To Team

Effectiveness & Delivery Of Customer ValueTeam Effectiveness


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


Key Take-Aways

Robert HeinzmanPartner | Global Science [email protected]

mailto:[email protected]

mailto:[email protected]

Leadership & Management

3 Steps to Lead Transformational Change Within Your Organization