{"id":2570,"date":"2020-02-26T13:11:11","date_gmt":"2020-02-26T12:11:11","guid":{"rendered":"https:\/\/www.druckerforum.org\/blog\/?p=2570"},"modified":"2020-07-31T13:03:19","modified_gmt":"2020-07-31T11:03:19","slug":"people-centered-transformation-turning-inspiration-into-actiontony-odriscoll","status":"publish","type":"post","link":"https:\/\/www.druckerforum.org\/blog\/people-centered-transformation-turning-inspiration-into-actiontony-odriscoll\/","title":{"rendered":"People Centered Transformation: Turning Inspiration into Action<\/br>Tony O\u2019Driscoll"},"content":{"rendered":"\n

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At last year\u2019s Global Peter Drucker Forum, attendees engaged\nin a pre-conference workshop to confront the inconvenient truth that the\nfailure rate in implementing organization transformation initiatives is too\nhigh and too costly. <\/p>\n\n\n\n

The Project Management Institute (PMI) pegs the total cost\nof impotent transformation efforts at approximately $2 trillion per year \u2013 roughly\nequal to the GDP of Brazil. As things stand, organizations are squandering more\nthan $3 million every minute on efforts that yield little-to-no change. <\/p>\n\n\n\n

Key questions<\/strong><\/p>\n\n\n\n

In facing this stark reality, a number of key questions\nsurfaced: What is causing the need for increased organization transformation?\nWhy can\u2019t we develop strategies that are more resilient to uncertainty? What\ntraps do we fall into in implementing transformation? What role should\nleadership play in transforming organizations? How do we bring our people\nalong? <\/p>\n\n\n\n

Transformation by means of ecosystem<\/strong><\/p>\n\n\n\n

Michael Jacobides of London Business School tackled the\nquestion of increased organization transformation. He argued that modern-day\ntechnology can activate intra-firm networks, or ecosystems, and integrate the\nrespective capabilities of these firms to create, deliver and capture unique\nand differentiated value to customers. <\/p>\n\n\n\n

This ecosystems based approach, Jacobides posits, has both a\nYin and a Yang. The Yin of ecosystems lies in the simplicity, convenience and\nseamlessness with which new offerings are surfaced and integrated into the\nlives of customers. The Yang lies in the complex web of relationships and\nagreements that are being structured between different ecosystem players to\ndeliver that seamless and differentiated experience to the customer. <\/p>\n\n\n\n

Drucker Forum 2019<\/strong><\/span><\/h2>
\n

This article is one in the \u201cshape the debate\u201d series relating to the 11th Global Peter Drucker Forum, under the theme \u201cThe Power of Ecosystems\u201d taking place on November 21 & 22, 2019 in Vienna, Austria.\n
#GPDF19 #ecosystems<\/strong><\/span><\/p>\n<\/div><\/blockquote>\n\n\n\n

As the context within which value is created, delivered and\ncaptured evolves from linear value chains into networked value ecosystems, the\nvalue creation game is changing. In an ecosystem based game, the goal of each\nplayer is to remain relevant and useful to other players in order to sustain\nthe overall health, resilience and development of the shared ecosystem. In a\nvalue chain based game, the goal of each player is to defeat the other players\nby seizing control of the most profitable position on the value chain and\ndefending that position to maximize value capture by squeezing other players\nout of the game.<\/p>\n\n\n\n

Given this game-changing shift in value, Jacobides asserts\nthat successful transformation must begin by first-and-foremost transforming\npeople\u2019s errant perceptions around how value is created, delivered and captured\nin an ecosystem-based world.   <\/p>\n\n\n\n

Lack of resilient strategies<\/strong><\/p>\n\n\n\n

Rita McGrath of Columbia Business school addressed the\nquestion of why we fail to develop strategies that are resilient to uncertainty.\nShe introduced the concept of a strategic inflection point which she defined as\na change in the environment that causes the taken-for-granted assumptions on\nwhich your business is based on to no longer be true. <\/p>\n\n\n\n

Successful transformation, McGrath contends, begins with\ncultivating empathy at the edge of the enterprise. It is only by truly\nunderstanding the context your customers find themselves in that you can\nidentify the leading indicators that signal a potential strategic inflection\npoint for your business. Once identified, successfully responding to a\nstrategic inflection point requires that organizations first unlearn much of\nwhat they previously believed to be true. Then attempt new and different ways\nto create, deliver and capture value. Continue until a fresh set of beliefs and\nbehaviors, better aligned with the new business environment realities, are appropriated.\n<\/p>\n\n\n\n

McGrath maintains that this type of organization\ntransformation cannot succeed without an environment of psychological safety\nwhere people believe they will not be punished or humiliated for speaking up,\nchallenging the status quo, taking risks and failing.<\/p>\n\n\n\n

Transformation traps<\/strong><\/p>\n\n\n\n

Martin Reeves of BCG responded to the question of\ntransformation traps by claiming that not all change is created equal, and that\ndifferent environmental circumstances require different types of\ntransformational response. <\/p>\n\n\n\n

In a traditional stable and predictable operating context\nwhere an organization recognizes a misfit with its environment, a change plan\nis created to move the organization from its existing state to a new state that\nbetter fits with the environment. <\/p>\n\n\n\n

However, in a world of increasing uncertainty, Reeves maintains\nthat change very rarely goes according to plan. Since ecosystems are dynamic\nand unpredictable, he cautions that applying a traditional model of planned\nchange can be lethal. Instead, a more emergent test-and-learn based transformation\napproach must be employed.<\/p>\n\n\n\n

Since organizations don\u2019t change unless people change,\nReeves argues that change should come from people rather than be imposed upon them.\nPeople who are involved in creating change do not resist change. People who\nhave change imposed upon them resist change. In an ecosystems based operating\ncontext, it is critical to engage people\u2019s ingenuity and imagination to dynamically\nuncover and pursue value generating progression paths.<\/p>\n\n\n\n

The transformer\u2019s dilemma<\/strong><\/p>\n\n\n\n

Karolin Frankenberger from University of St. Gallen tackled\nthe question of leadership and organization transformation by introducing the\nconcept of the Transformer\u2019s Dilemma: a situation where leaders must deftly\nnavigate the polarities of exploiting the core business while simultaneously seeking\nthe next wave of breakthrough growth opportunities.<\/p>\n\n\n\n

This challenge requires two distinct and opposing leadership\nsystems to operate successfully. In a traditional core business, the leader\u2019s\nrole is to command and control resources to maximize the organization\u2019s profit.\nIn an ecosystem based context the leader\u2019s role to connect and collaborate to\nmaximize the ecosystem\u2019s value. To succeed in navigating these polarities\nleaders must maintain their authenticity by staying true to the organization\u2019s\npurpose and core values while having the ambidexterity to lead differently in\ndifferent contexts without compromising that authenticity. <\/p>\n\n\n\n

People and change<\/strong><\/p>\n\n\n\n

Rick Goings, Chairman Emeritus of Tupperware addressed the\nquestion of people and change by arguing that every successful strategy or\nbusiness model works\u2026until it doesn\u2019t, and when it stops working all that is\nleft is people. <\/p>\n\n\n\n

If the people in your organization suddenly vanished, all\nthat would remain is an impotent agglomeration of assets that sit idly by,\nawaiting an infusion of human inspiration. People are the life-force of every\norganization. The structures, processes, practices and technologies firms\ninvest in are practically useless without people. <\/p>\n\n\n\n

While things can be managed people must be inspired,\nencouraged and led. The role of the transformational leader, Goings argues, is\nto cultivate fast, focused, flexible and fun operating landscapes that enable\npeople to become the best version of themselves.<\/p>\n\n\n\n

Brightline\u2019s People Manifesto<\/a>\nargues that people form the link between strategy design and delivery. People\nturn ideas into reality, they are the strategy in motion. Most transformation\nefforts fail because organizations over-emphasize the tangible side of change\nand under emphasize the emotional one. Successful organization transformation\nrequires an empathic, people-centered approach that turns inspiration into\naction.  <\/p>\n\n\n\n

Anything less will almost certainly result in yet another\ncostly transformation initiative that ultimately changes next-to-nothing. <\/p>\n\n\n\n

Note: The People\nCentered Transformation Panel Discussion can be viewed <\/em>here<\/em><\/a><\/p>\n\n\n\n

Note: The PCT\nFramework can be viewed <\/em>here<\/em><\/a><\/p>\n\n\n\n

About the Author:<\/strong><\/p>\n\n\n\n

Tony O\u2019Driscoll <\/strong>is an adjunct professor at Duke University\u2019s Fuqua School of Business and a Research Fellow at Duke Corporate Education. <\/em><\/p>\n\n\n\n

This article is one in the Drucker Forum \u201cshape the debate\u201d<\/strong> series relating to the 11th Global Peter Drucker Forum<\/a>, under the theme \u201cThe Power of Ecosystems\u201d, taking place on November 21-22, 2019 in Vienna, Austria #GPDF19 #ecosystems<\/strong><\/em><\/p>\n\n\n\n

#GPDFrapporteur <\/p>\n","protected":false},"excerpt":{"rendered":"

At last year\u2019s Global Peter Drucker Forum, attendees engaged in a pre-conference workshop to confront the inconvenient truth that the failure rate in implementing organization transformation initiatives is too high and too costly. The Project Management Institute (PMI) pegs the total cost of impotent transformation efforts at approximately $2 trillion per year \u2013 roughly equal to the GDP of Brazil. As things stand, organizations are squandering more than $3 million every minute on efforts that yield little-to-no change. Key questions In facing this stark reality, a number of key questions surfaced: What is causing the need for increased organization transformation? Why can\u2019t we develop strategies that are more resilient to uncertainty? What traps do we [\u2026]<\/a><\/p>\n","protected":false},"author":3,"featured_media":2572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":""},"categories":[272,237],"tags":[270,238,273],"_links":{"self":[{"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/posts\/2570"}],"collection":[{"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/comments?post=2570"}],"version-history":[{"count":7,"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/posts\/2570\/revisions"}],"predecessor-version":[{"id":2812,"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/posts\/2570\/revisions\/2812"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/media\/2572"}],"wp:attachment":[{"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/media?parent=2570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/categories?post=2570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.druckerforum.org\/blog\/wp-json\/wp\/v2\/tags?post=2570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}