What I've picked up from all of you and from your content is that there's
Rob:a frustration between what leaders.
Rob:need to know and what they don't actually know.
Rob:The gist of the call is what would you wish that leaders knew before
Rob:starting the change project?
Lisa:I'll go first.
Lisa:I made a list of things and, as usual, it grows and grows, but I guess the
Lisa:first thing I would wish that leaders would know about change is how much
Lisa:time and energy you need to do it well.
Lisa:Actually that's for anyone who's going through change.
Lisa:If you underestimate that then, it's never going to work.
Lisa:That also means how ready are you for change before you even start?
Lisa:How are you feeling?
Lisa:What else has happened?
Lisa:How many other changes have you been through in your organization?
Lisa:How have they panned out?
Lisa:You need to think about this is going to be for the longish term.
Lisa:Change is constant.
Lisa:So it's never going to be one change and that's it, which is another
Lisa:reason for not underestimating.
Lisa:And just deciding, is this the right change for now?
Lisa:Do we need to do it?
Lisa:And then get into some of the detail.
Lisa:That was my kickoff point.
Lisa:I don't know what other people think.
Daniel:A really valid point about leaders really appreciating just how much
Daniel:I've come into projects where change management, is blazing red and there's
Daniel:all this resistance and people are unhappy and there's an appreciation
Daniel:at that point, something's needed,.
Daniel:Change management is needed or something's needed, we need someone to focus on
Daniel:this, there's real problems here and at that point you've got them like,
Daniel:there's a clear and present problem and you have a solution for them.
Daniel:And so there's a real appreciation then.
Daniel:It would be nice if they could know that up front.
Daniel:Now maybe they will for the next project.
Daniel:I'm just thinking back to a project I worked on a few years
Daniel:ago where that was the case.
Daniel:I happen to know that the executive sponsor went on to a different role as CFO
Daniel:of another department of the organization and, change managers from that previous
Daniel:team were then picked up and taken across there in a very proactive sense.
Daniel:They really knew they saw the value of it.
Daniel:I don't think that would have been the same if this executive sponsor hadn't
Daniel:been through that experience, I doubt that they would have been proactively
Daniel:going out there and looking for change leads and change practitioners to support
Daniel:them in their CFO transformation role.
Lisa:Yeah, I think that's a good point.
Lisa:It works better if you've had a bit of the pain and the experience and that
Lisa:sort of links into another point that I was thinking and I wanted to ask Paulaa
Lisa:about, which was the future of work and that, one of the things I wish that people
Lisa:would realize was just that, that you actually need to embed change management
Lisa:in everything you do as a manager and a leader, you should have understanding of
Lisa:it and you should value it and have, those people in places change agents and things.
Lisa:And yeah, just as you described Daniel, but that should be a given.
Lisa:And I'm just thinking about, the future of work and the rise of AI
Lisa:and everything and how we as humans should be differentiating ourselves
Lisa:and change management to me is like one really good example of using emotion.
Lisa:I think I saw some things about digital change and everything
Lisa:from you, Paulaa, what you thought
Lisa:about.
Paula:That's definitely top of mind.
Paula:But for me, it would start from really the basics because a lot of the leaders
Paula:that I have worked with or met haven't even heard of change management.
Paula:And so they go into these projects thinking that the organization already has
Paula:all the work streams, all the capability needs, but change management is just not
Paula:there because they have never heard of it.
Paula:And for me, the, it all boils down to the education that they get.
Paula:These days, a lot of executive leaders get drawn in by the digital transformation
Paula:courses that a lot of business schools out there are offering, and I've
Paula:been researching that that topic for a while now, and what I can say so
Paula:far, of course, I haven't finished the research I'm not very far from
Paula:that point, but so far, I have yet to see a single digital transformation
Paula:course designed for senior executives, That talks about change management.
Paula:It's always about technology.
Paula:What kind of technology we can use?
Paula:What kind of digital strategy we can come up to outcompete others?
Paula:What can we come up with to be the best at what we do?
Paula:So the focus is on ensuring that the organization is the best and is the
Paula:first that does certain things there.
Paula:The whole aspect of it, what change means, what change entails
Paula:and how we make that happen.
Paula:That's completely overlooked.
Paula:In some of the cases, there is some talk about processes, but it's overwhelmingly
Paula:about about technology and people.
Paula:So what I see so far is that these top business schools that I'm, that
Paula:I've been looking at separate digital transformation from change management.
Paula:Completely different topics.
Paula:That's one thing.
Paula:The other thing is that in most cases.
Paula:Change management is not part of the core curriculum, and in
Paula:some cases it's not there at all.
Paula:So in the best case scenario, it's an elective course, which of
Paula:course people may or may not take.
Paula:And then there's another aspect that I've become more aware of as of this morning
Paula:as I was reading an article, a very good article by a change manager who teaches
Paula:change management in an MBA context.
Paula:And he was saying, and I think he's very right to say that, When change
Paula:management is an elective course, or when anything is in an elective course,
Paula:it gets less attention than a core course, because these are very busy
Paula:professionals, and they just, they have many other things going on in their lives.
Paula:It's not just that MBA or it's not even just work.
Paula:They have plenty of other things going on in their lives.
Paula:It's the same for all of us.
Paula:What is the incentive to work as hard?
Paula:For an elective course that is elective by definition.
Paula:So for me, the problem starts there.
Paula:I think that a lot of executives go into these programs with the
Paula:best of intentions, and I'm sure that they want to do the best
Paula:they can for their organizations.
Paula:Unfortunately, the business education system is just failing them.
Paula:And by failing them, it's also failing us.
Paula:and the organizations that these people are leading.
Paula:That is the real problem in my opinion.
Paula:They don't give executive leaders these basics.
Paula:And then of course, there are those leaders who don't attend an MBA at all.
Paula:And then that begs the question of where do they get the information
Paula:about change management, if at all.
Paula:So that's my take on it.
Paula:That's for me.
Paula:That's the root of the problem.
Daniel:I
Daniel:think it's a really interesting.
Daniel:Look at the problem.
Daniel:Actually I like your reasoning and you're thinking about looking
Daniel:at what the causes of teaching.
Daniel:I think it's fantastic.
Daniel:It's really such an interesting perspective.
Daniel:I will say I want I guess my question is how universal do you think it is?
Daniel:Because I know in Australia, change management is very mature,
Daniel:relatively speaking perhaps the UK,
Daniel:I think what I'm hearing out of the U.
Daniel:S.
Daniel:from people is definitely you've got a Prosci probably
Daniel:leading the charge over there.
Daniel:The U.
Daniel:S seem to be just very much outcomes driven.
Daniel:If it's going to drive me an outcome, then We're happy to have change management or
Daniel:any other methodology, along for the ride.
Daniel:But Australia is far more sophisticated.
Daniel:They don't know what change management is, how to do it or anything like that.
Daniel:But they know that they need to win a common refrain.
Daniel:You'll hear from an Australian executives.
Daniel:We need to win the hearts and minds of the people.
Daniel:This is what they will say.
Daniel:That's probably verbatim.
Daniel:You probably walk into an office now or, five hours ago, and it would be an
Daniel:executive somewhere in a room saying that it's just it's just what they do.
Daniel:It's far more mature over there.
Daniel:Where does that come from?
Daniel:I'm not sure because executive training and MBAs are not as
Daniel:important to the Australian market.
Daniel:Any credentials, full stop, are not as important to the Australian market as they
Daniel:are elsewhere like Germany, for example.
Daniel:Where it comes from for example, even APRA, which is one of the governing
Daniel:bottles, bodies for large systemic risk organizations and also financial
Daniel:services mandated in one of their recent operational risk policies
Daniel:that risk in change needed to be, organizations need to have a dedicated
Daniel:policy for managing risk and change.
Daniel:There's a fair bit of definition around that.
Daniel:And like it for large organizations there's a significant awareness in
Daniel:Australia about organizational change and its need to be proactively managed
Daniel:is very interesting perspective.
Daniel:That I think Paulaa brings to it though it doesn't mean that
Daniel:they have, they would know that.
Daniel:How to set it up and they still, do I need to have one
Daniel:person enough to manage change?
Daniel:Can I just bring on a change manager and just call that done and tick that box?
Daniel:Or do I need to have a whole team of people?
Daniel:What does it take to do this?
Daniel:And I must say, like I wanted a lot that last project I was talking
Daniel:about earlier, like I got there was blazing red and, we ended up with
Daniel:this massive team to manage the change because it was just so significant.
Daniel:I knew I had this window of opportunity to build the team properly because
Daniel:there was the resources that they were receptive to investing in the resources.
Daniel:Sometimes you go on other projects and you're just the change manager
Daniel:and that's all you've got and you just do what you can to make it work.
Daniel:So yeah interesting conversation.
Lisa:I think the education thing is really interesting when as you were
Lisa:saying, Paulaa, and built on that, Daniel, because I think, yeah, the
Lisa:education is important, but again, I agree that the market is much more people
Lisa:know about change management in UK.
Lisa:I think they still underestimate it, but they know it, and they
Lisa:know maybe a bit about the process.
Lisa:But then I also see that can be an issue if it's just educational from learning
Lisa:in a learning environment without the experience and a process which is you
Lisa:do A, B, C, D, and then you take it off.
Lisa:Because, it's like with many things, it's all in the implementation.
Lisa:The actual process of change management, the logic and the emotion behind it, it's
Lisa:fairly straightforward if you look at it like that, but when you actually put
Lisa:it into practice and you have people's emotions, you have politics, you have
Lisa:all kinds of historical issues and all this mixed up, all the stakeholders, all
Lisa:managing all the different Dimensions, that's where it really comes into play.
Lisa:So it's really interesting.
Lisa:I think the education can be part of it, but also it's hands on.
Lisa:What does this look and feel like?
Lisa:What do I do?
Lisa:I don't know about you, but it's never the same in any organization
Lisa:with any group of individuals.
Lisa:There's always something.
Lisa:You can see trends of what's likely to happen, what kind of resistance
Lisa:might occur, but yeah, it's really easy to underestimate as well, even if
Lisa:you know what it is and the process.
Paula:Yeah absolutely.
Paula:When I'm saying that they should get an education or get
Paula:it as part of their education.
Paula:What I have in mind is actually a set of basics, what change
Paula:management is, what it is for.
Paula:It doesn't necessarily mean that the course should teach them how to manage
Paula:change themselves, that's not the purpose, but it should give them some
Paula:foundation from which to start some basic understanding of what's needed Because we
Paula:don't always know what we don't know, and I think that's very much the case there.
Paula:It's not about, oh, let's equip you with the skills to actually
Paula:manage the change yourselves.
Paula:No, that's not their role, and that's not their purpose anyway.
Paula:But let's give you some basic understanding of what this is, what
Paula:this discipline is about, why you need it, what happens if you don't have
Paula:it represented in your organization.
Paula:Then, of course some very important topics that would need to be included, in my
Paula:opinion, are roles in change management.
Paula:We hear these days a lot of talk about change management and change
Paula:leadership, and my impression so far is that a lot of what's being written
Paula:right now on LinkedIn and elsewhere about the topic of change management
Paula:versus change leadership follows the pattern of management versus leadership.
Paula:And I think that's a topic that hasn't been exhausted.
Paula:There's still a lot of writing about it.
Paula:I think it continues to attract a lot of attention, but in the
Paula:world of change management, I think it's really misunderstood.
Paula:It's not about Oh, are you a manager?
Paula:Are you a leader?
Paula:Or can you be both?
Paula:Or should you be both?
Paula:In my opinion, it's not about that.
Paula:It's about defining what a leader's role is and as Professor Elspeth
Paula:Johnson would say, when to step up and when to step back as a leader, because
Paula:leaders typically either don't step up or they don't know when to step back.
Paula:That also has a lot to do with the so called Hollywood version
Paula:of leadership where you are this charismatic leader and things happen
Paula:because you are so charismatic, and it's enough for you to come and do
Paula:a pep talk and everybody will go to.
Paula:And yeah, we want this change doesn't work like that.
Paula:So there's this delicate balance of when to step up and when to step back.
Paula:I really like Professor Johnson's work on this topic, and she
Paula:came up with this concept.
Paula:So this would be one topic for them to really understand.
Paula:Then another thing that I think is critical to understand is the
Paula:relationship between these three elements of leadership sponsorship, change
Paula:management and project management.
Paula:I know that one of the Most popular methodologies out there proposes
Paula:this as its core tenant, But this is not about that methodology.
Paula:It's not about teaching that methodology.
Paula:It's about teaching the fact that these are the key pillars of any project.
Paula:If you don't have leaders, things are not moving.
Paula:If you don't have project managers who know what they're doing,
Paula:then things don't get delivered.
Paula:And if you don't have change managers who also know what they're doing,
Paula:then you don't have any adoption and you have a lot of resistance.
Paula:These are some fundamental things that I think they should know.
Paula:And then beyond the, let's say the strict sphere, if I can call it that, of
Paula:change management, they should probably learn a lot about how to adequately
Paula:plan make decisions about changes, what changes to make, when to make them,
Paula:when the right time for each of them is.
Paula:I feel like a lot of that is lacking.
Paula:Fortunately, there are MBA programs that offer courses on decision
Paula:making and for business context and and also critical thinking.
Paula:But I think we need more of that.
Paula:We need more of that and concretely applied to digital transformation,
Paula:which is, a hot topic these days, but organizational change in general.
Paula:And I'm curious to see what you think what other topics are critical for leaders.
Daniel:I think that I was going down the route of education of
Daniel:change leaders, one of the things that I would emphasize for them.
Daniel:And when I say change leaders, I would be talking, executive
Daniel:sponsors or sponsors of projects.
Daniel:I'm talking about heads of business who are on the receiving end of a change.
Daniel:They're often not the sponsor, but they're one of the most powerful, if not
Daniel:the most powerful people in a project.
Daniel:And they have veto power or at least can stop a project from going live.
Daniel:But is, I would be saying to them.
Daniel:You really underestimate how much energy this is going to take for
Daniel:you to do a large scale project and you've got a business to run.
Daniel:You will almost need to abdicate 90 percent of your responsibilities to your
Daniel:2IC for the duration of this project.
Daniel:And they will look at you, particularly in the months going up to go
Daniel:live, about that six month period.
Daniel:They would just totally underestimate how much effort is required.
Daniel:Probably for in Australia, whilst there's awareness, like I said, in the
Daniel:change space of the need generally of change, they underestimate the size and
Daniel:scope of the teams to bring it about.
Daniel:They generally have a understanding of the scope required for the project
Daniel:teams, like project managers, business analysts, and test managers and things
Daniel:like this, like they have that rationale.
Daniel:Like at one point I had 35 change managers working for me on this
Daniel:large group, global project.
Daniel:And people were just like, I can't believe the size of the team.
Daniel:And I'm like I'm telling you, like there is no other way this
Daniel:project is going to get done.
Daniel:They're all working, late in the evening to get this project
Daniel:work, this project done.
Daniel:It's like, they're just totally underestimated the amount of work.
Daniel:And the chaos needs to be overcome because you're dealing with people, right?
Daniel:And this is all the vagaries of people.
Daniel:It's not systems and data going in from one end to the other.
Daniel:That's hard enough in and of itself.
Daniel:So it like, there's a huge underestimation of the amount of effort required to
Daniel:manage change and manage it well.
Paula:Effort and time, I would say.
Paula:And that has a name.
Paula:It's called the planning fallacy.
Paula:And I think, unfortunately, we don't have an ideal situation for that because it's a
Paula:systemic issue and I can briefly explain.
Paula:And actually it's not necessarily my original explanation.
Paula:It's something that I came across in a really good book by, by Paula Gibbons.
Paula:It's called science of organizational change.
Paula:And he discusses the planning fallacy in his book, and the gist of it is this
Paula:boards are very impatient, and so they put pressure on executives to deliver fast.
Paula:On the other hand, they don't necessarily hold executives accountable for the
Paula:results, which probably explains why change management is not given
Paula:the importance it should be given.
Paula:Intern executives put a lot of pressure on teams and of course
Paula:on their external providers, consulting companies and others.
Paula:Consulting companies all know how to play this game.
Paula:They are excellent at minimizing their exposure, their risk.
Paula:And great at putting all the blame on the customer.
Paula:So if in the beginning a lot of these firms provide estimates that
Paula:are not realistic because they know what executives want to hear.
Paula:They are just singing the tune that they know executives want to hear and
Paula:they know that if they play the game in any other way, meaning if they provide
Paula:a realistic time estimate or time and resource estimate, they will lose Against
Paula:others who rush in with a unrealistic estimate, which looks better because who
Paula:wouldn't want things done in a shorter time possible and with the least amount
Paula:of effort and investment, I would say.
Paula:So there's this collusion, I would say, at the level of the entire system.
Paula:You've got the board, you've got the executives, you've
Paula:got the consulting companies.
Paula:that all play this game.
Paula:So until someone, breaks this vicious circle somehow, and again, this takes
Paula:me back to the importance of education.
Paula:I don't know how that will happen.
Paula:So if there's this gross underestimation of The work that's required.
Paula:That's because we start out from a grossly and an underestimated timeline.
Paula:And of course, the same happens for the amount of effort required
Paula:and the resources that the company is willing to invest.
Lisa:This also links to understanding the problem as well as and understanding
Lisa:what change management can do, because there's a lot of leaders need to
Lisa:understand this balance that change management is hard, but that doesn't
Lisa:necessarily mean you're doomed to failure.
Lisa:Because there's so many people who talk about this, it's going to
Lisa:fail, it's going to fail and all the myths around percentages and things.
Lisa:And I don't really want to get into that because I don't think it's helpful.
Lisa:But the thing that would help is if people just defined what success looked
Lisa:like for them and defined it as a a continuum from good enough through
Lisa:to the dream scenario, and then you'd know what you wanted to achieve.
Lisa:Because otherwise change management is either seen as it's a failure or it's a
Lisa:success and that's, you're talking about people, it can't be perfection, it can
Lisa:be, okay, we need this level of adoption, we need this level of attrition, we
Lisa:need, people, the engagement levels to be like, and be able to attract talent.
Lisa:There are things that you can measure and the things that are
Lisa:more difficult to measure in change management aren't there and layers.
Lisa:of quantitative and qualitative, but I think it's really important that leaders
Lisa:do that first before then saying because then, it's how long is a piece of string?
Lisa:How much time are you going to expend?
Lisa:How much money are you going to expend?
Lisa:And what do you want at the end of it?
Lisa:If it's perfection, you're not going to get it, but you can define it.
Lisa:So I think that's something I wish leaders would focus on first as well.
Lisa:And it's connected to what you're saying, being realistic.
Paula:Yeah, and actually brought up a very important point being realistic about
Paula:the costs and the benefits also, which I don't see much of actually in practice.
Paula:There are certain things that just don't get calculated at all.
Paula:For example, operational risk, something that I don't see a lot of people take
Paula:into account leaders for that matter.
Paula:In other words, I don't see the question of what will it cost us if
Paula:for a while this process doesn't work or this process can't just cannot
Paula:be completed as we have designed it?
Paula:What does that mean?
Paula:What does it translate to in terms of financials?
Paula:So a lot of this operational risk has to do with change management
Paula:or lack thereof, I would say.
Paula:The less attention you pay to change management, the more your overall risk
Paula:and of course, financial risk goes up.
Paula:So that's another topic that they should they should probably be aware
Paula:of just that they should be aware of the need for organizational readiness.
Daniel:I'll come back to the readiness point, but on the operational risk
Daniel:point, I I know a lot about this because it was the last major project I worked
Daniel:on was exactly this non financial risk policy rollout of a global bank.
Daniel:It's a very, very apt topic because there is again coming out of Australia
Daniel:thinking on this institutional calculations and processes being put
Daniel:around it around operational risk and specifically risk and change.
Daniel:Globally things moving in that direction and actual policies
Daniel:in organizations to that end.
Daniel:There's still very much like you could pick a leader out of the hierarchy
Daniel:and the thing is about leaders is that, where it's easy to rag on.
Daniel:It's a very difficult job.
Daniel:It's extraordinarily difficult job.
Daniel:And the pressure on executives are extraordinary.
Daniel:And so that what we're trying to advocate for here, though, is if you're leading
Daniel:change and transformation, you really need to provision for adequately.
Daniel:Organizational change management and I think that's the message
Daniel:that it's getting out there.
Daniel:I think it's getting out there.
Daniel:Personally, I think it's slowly but surely.
Daniel:It's really getting there.
Daniel:I think it's definitely happening.
Daniel:There's definitely a lot more sophistication required.
Daniel:I think where you were heading to, Paulaa, is around readiness, and I
Daniel:think that's a really interesting point.
Daniel:I'd love to hear you just expand on that, because I cut you off, but I'd love
Daniel:to hear where you're going with that.
Paula:Yeah, and I also would like to get your thoughts and
Paula:Lisa's thoughts about this.
Paula:I think it's a very often overlooked aspect of projects.
Paula:Again, if I'm thinking about digital transformation,
Paula:that's almost always the case.
Paula:In my experience, at least if we're talking digital transformation, in
Paula:my opinion, readiness assessments should be designed as standalone
Paula:projects to precede that the actual digital transformation project.
Paula:Why?
Paula:Because you first of all, have to have leadership alignment Then you have
Paula:to understand your ops ready, your operational readiness, your people
Paula:readiness, your tech readiness, and the purpose of running this assessment
Paula:is to understand the gap between where you are now and where you want to be.
Paula:It also gives you time to analyze whether this provider or this ERP or
Paula:that software or whatever that tool is really the best solution for your problem.
Paula:It gives you time to analyze.
Paula:What exactly is it that we're trying to solve here?
Paula:And what are our options?
Paula:Let's just not, go for the first thing that pops up, thinking
Paula:that it's the best solution.
Paula:Let's probe into that.
Paula:Let's take some time to analyze various various possibilities.
Paula:But again, all that requires time.
Paula:And it requires thinking.
Paula:It requires mental effort.
Paula:And it goes back to what we were saying a few moments ago.
Paula:People don't want to put in a lot of time.
Paula:They are, a lot of leaders are very action oriented.
Paula:They are not necessarily oriented towards a lot of reflection, many
Paula:of them, not all of them, of course.
Paula:So they want action and they want it now without understanding that what
Paula:Might feel right now like a waste of time or because we're actually taking
Paula:time to consider things to reflect on things to make some make robust choices.
Paula:It might feel like there's no action happening like we're wasting time.
Paula:But what feels now like maybe a waste of time is that is actually
Paula:helping you save time down the road.
Paula:Time headaches and a lot of money.
Lisa:Yeah, I would agree.
Lisa:And then going back to the topic we touched on, which is, the selling
Lisa:of change management, the delivery.
Lisa:Sometimes you actually shouldn't do the change or not now,
Lisa:because you have too much on.
Lisa:And I've had experience of this with, yeah, because I think you're right
Lisa:there, Paulaa, a lot of leaders are very.
Lisa:action oriented.
Lisa:And they have to be, as you were saying, Daniel, under pressure to deliver.
Lisa:So it's totally counterintuitive for them to say, take a moment, check.
Lisa:And they may also say I know this is the solution.
Lisa:This is the best solution.
Lisa:We know which digital solution or which system to use.
Lisa:This is it.
Lisa:But that's not the only dimension, logic doesn't cover everything.
Lisa:And yeah, this is incredibly difficult to get people to do that, and quite
Lisa:often when things come to a head, and you were saying, Daniel, it's
Lisa:like red alert, this is not working.
Lisa:Yeah, that's the time when people then realize.
Lisa:Change management, not the change readiness beat.
Lisa:By that time, you can have done a heck of a lot of damage.
Daniel:Certainly a sophisticated organization ideally would
Daniel:have good readiness processes.
Daniel:I think that that's a huge gap.
Daniel:I don't see any organizations.
Daniel:I'm not saying anybody, any organizations do that with any.
Daniel:There is PMOs and.
Daniel:Portfolio groups within organizations that have a better, that, that are
Daniel:standard, that are stood up, but they understand projects in flight and
Daniel:spend and governance and gate reviews and things like this, but they don't
Daniel:have a handle on the impacts of the organization, changing an organization.
Daniel:It's just not good awareness of it.
Daniel:Paulaa and I did a similar course last year on the on this topic.
Daniel:Really understanding, you know that the change from what ordinary business is
Daniel:experiencing It was as well as projects and that whole interrelationship
Daniel:The only thing that worries me about readiness assessments at that level
Daniel:is you could, an organization could easily tie themselves in knots and not
Daniel:do anything and really get hamstrung.
Daniel:I just think, and it's a very dynamic process, it just changes
Daniel:as soon as you initiate a project, it's like a complex organization.
Daniel:You push one button and then, everything else moves around
Daniel:it and now it's something else.
Daniel:It's a completely new thing to deal, you're dealing with.
Daniel:So it's a very dynamic process as well.
Daniel:This is a huge gap, no organization does it well, but also I don't
Daniel:have Perfect answers on it, or I think the solution is probably
Daniel:something we're in the direction of.
Daniel:Let's just get something started.
Daniel:Let's start measuring it.
Daniel:Let's have some sort of dynamic process and each organization has
Daniel:got to think about its governance processes of whether that goes into
Daniel:some sort of PMO or centralized PMO or transformation office., Paulaa has
Daniel:written a bit about this recently on LinkedIn and every organization is
Daniel:different in that regard, or they have a change management office or whatever.
Daniel:I think the point is organizations who can start collecting this data,
Daniel:processing it, and integrating it into their decision making processes more fully
Daniel:more formally, I think would really help.
Rob:Before we move into change readiness just for those of us who, who aren't deep
Rob:in the understanding of change management.
Rob:So it's interesting because I also have had groups on leadership and
Rob:groups on teams and if I'm trying to sum up the groups on teams, it's
Rob:about finding visibility because the human element, which I think really
Rob:you talked about, Paulaa, when you were talking about the people focused
Rob:on the strategy, and then we I think our whole organizational charts now.
Rob:Organizational philosophy is that it's still the industrial age of people
Rob:are machines and it all will work.
Rob:We just oil the right machine in the right place.
Rob:It will all carry on working, but there's a black box.
Rob:And so that's something that comes out in the talk about
Rob:teams is about the visibility.
Rob:You need to know where the team is.
Rob:And if I'm trying to sum up the leadership.
Rob:I think it's about what are the bounds of leadership.
Rob:As we've said, leadership is an enormous set of responsibilities
Rob:that I think that one of the biggest challenges it seems to be for leaders
Rob:is to understand where the boundaries.
Rob:Where do you stop?
Rob:Where do you let someone else go?
Rob:And that seems to be what it takes to be an experienced leader.
Rob:I really would like to know more about change readiness because
Rob:that's really where I feel it's about trust and it's the relationships
Rob:which makes adapting much easier.
Rob:For me, looking in, it seems that a lot of this comes down to, corporates
Rob:have very short term outlooks.
Rob:So the CEO and the board are going to be rewarded based on share
Rob:price at a certain time and, next quarter's share price or whatever.
Rob:And a lot of the change that you're talking about is multi year change,
Rob:by which time they'll have left the company, left the position.
Rob:And they need it to look good now, whereas the whole process of change is going to
Rob:mean, like Paula, you talked about the operational loss while we were getting
Rob:up to speed that is going to impact.
Rob:So how much is to do with the organizational structure, the
Rob:organizational philosophy and just a general lack of awareness of
Rob:humans in our business education.
Paula:For me, I think it starts from and here I'm just, looking
Paula:at it to an org design lens.
Paula:It starts from the goals of the organization.
Paula:What is it that we do or that we want to do?
Paula:Because all organizations are born between two conflicting priorities,
Paula:efficiency and effectiveness.
Paula:And they're in conflict because efficiency is about minimizing your
Paula:investment, your expenses Whereas efficiency is doing things in the
Paula:optimal way putting more emphasis on the experience that customers get and
Paula:obviously internal customers as well.
Paula:And of course that can be more, more taxing financially.
Paula:And there are a few org design experts think that there are a few companies
Paula:that really managed to balance both.
Paula:And apparently Microsoft is one of them, but for the most
Paula:part, it's about one or another.
Paula:So for me, the analysis Starts there.
Paula:What is this company about?
Paula:And not just, you know what they say their value statements, although
Paula:that is a starting point as well.
Paula:What are they about in practice?
Paula:Are they about effectiveness more than they are about efficiency?
Paula:If they are more about effectiveness and efficiency, then it seems like
Paula:it's more likely that change management and readiness and everything that has
Paula:to do with these things will be given more consideration, maybe not ideal
Paula:because Daniel made a very good point.
Paula:Probably no one does it perfectly, but there are definitely some
Paula:that do it better than others.
Paula:And Daniel has a lot of experience in Australia where I agree the
Paula:environment is much more mature.
Paula:The environment for change management is much more mature.
Paula:My experience is mostly tied to Western Europe and North America and a
Paula:little bit at the Middle East as well.
Paula:And in my experience it's not at that level.
Paula:Of course, organizations everywhere will have to prioritize one over
Paula:another efficiency over effectiveness or try to find a balance.
Paula:Although that's a really delicate thing to achieve.
Paula:So for me, the analysis starts there.
Paula:Do they have a vision?
Paula:Is this vision clearly articulated for people?
Paula:Do they understand what the strategy is?
Paula:Does the strategy seem congruent with these goals?
Paula:And then does the structure of the organization match that strategy?
Paula:Does it support it?
Paula:And of course, everything that comes after that, the processes, the tools,
Paula:the reporting lines, the the incentives and the configuration of the teams,
Paula:the relationships between them.
Paula:So everything has to be taken into account.
Paula:So if we're talking about readiness.
Paula:Then, yes there's this dimension of all of these things falling into place.
Paula:And I know that in change management, we talk a lot about
Paula:trust and people being ready.
Paula:And that's definitely very very important.
Paula:But again, if I think about digital transformation we cannot overlook
Paula:tech readiness and process readiness.
Paula:And these are things that are out of scope for change managers.
Paula:But which have an impact on what we do.
Paula:And this is one of the reasons why, in my opinion, a readiness assessment has to be
Paula:stood up as a project on its own, because there are many people contributing to
Paula:this evaluation from various standpoints.
Paula:As a change manager, I cannot go in and say, Oh, your processes should look
Paula:like this compared to what they are now.
Paula:Although I have done this exercise.
Paula:And on more than one occasion it's not part of a change manager's
Paula:job, but I had to improvise because there was no one else to do it.
Paula:At that point, same thing happens with tech.
Paula:Fortunately, I haven't been in a position to to assess that
Paula:because I would be no good at that.
Paula:All that to say that there are all these bits of the puzzle.
Paula:That have to come together.
Paula:And at the end of the day, they give us an overall picture of
Paula:how ready the organization is.
Paula:And Lisa made it an excellent point about how sometimes organizations
Paula:are just not ready for that change.
Paula:And this is something that leaders don't want to hear.
Paula:In one of my most recent projects.
Paula:This is the recommendation that I gave the leadership team put this on pause
Paula:until you've redefined your operational model, your business model, and then
Paula:restart your ERP implementation.
Paula:You cannot do them at the same time.
Paula:First, you have to know what you're about, how you want to function in the future.
Paula:And of course, all that was a complication of an acquisition that was not properly
Paula:managed from a change perspective.
Paula:So it was a whole complication.
Paula:So sometimes as a change manager, like Lisa said, you have to go in and offer
Paula:this opinion, knowing that there are very few leaders who will want to heed
Paula:that advice or that recommendation.
Paula:And because by that time, they will have invested a lot of time, a lot of
Paula:energy, a lot of work in that, and they don't want to go back to their boards
Paula:to say, Oh we decided to call it quits, or we pulled the plug for the time
Paula:being, because even though executives probably don't hold or most boards don't
Paula:hold executives account accountable for that, they're still accountable.
Paula:At least an unpleasant discussion that's going to ensure and
Paula:everybody wants to avoid that.
Paula:So that's my take on readiness.
Lisa:Yeah, I think having this holistic view, change management
Lisa:should be included, but on the other hand, it shouldn't be a standalone.
Lisa:Like you said, Daniel, you can't just give it to one person.
Lisa:It doesn't make sense.
Lisa:You need to have it overlapping with process and systems.
Lisa:And yes, I've had done lots of process work because that's been overlooked
Lisa:because if you're just looking at the people and you say why can't you adopt
Lisa:this because, the leaders might not realize what the process is that's
Lisa:actually happening on the ground.
Lisa:And it doesn't make sense to use this new system.
Lisa:Yeah.
Lisa:And then when it comes to technology, absolutely.
Lisa:Again, I wouldn't get into that in detail, you need somebody who knows the tech.
Lisa:So it has to be a holistic picture and it has to be congruent.
Lisa:Again, as you said, Paula, it has to.
Lisa:Not everything can be perfect, but yes, if you've decided that you want the
Lisa:cheapest, the quickest, the fastest yeah, then change management is probably
Lisa:going to be minimum really, isn't it?
Lisa:But a lot of companies are now trying to, and you have to think about the messages
Lisa:you're sending to your customers as well.
Lisa:If they just want the cheapest, maybe that's fine, but if you
Lisa:actually want sustainable solutions in all senses of the word.
Lisa:People are getting more clued up, more savvy about what companies say and what
Lisa:they stand for and what they actually do.
Lisa:I was talking to my son about this, who's studying business and economics
Lisa:at the moment, and he was very cynical about values and mission statements,
Lisa:and I understand why, because you can almost guess what any large company is
Lisa:one is going to include, and it has to be delivered, and as they said, Paula,
Lisa:if you are going to say it's innovative, then it has to be innovative, and
Lisa:that means you have to tolerate risk or encourage risk, and that means you
Lisa:don't you give people opportunities and you don't punish them for mistakes
Lisa:or things that don't go right, or saying this change shouldn't happen.
Lisa:That's one of the reasons I think change management is fascinating because
Lisa:it is touches so many things within the organization and life really.
Lisa:You have to try and take a systems view and see how it all fits together.
Lisa:And I think with readiness as well, the point you made Daniel
Lisa:about don't get caught in there, navel gazing, or should we do it?
Lisa:Shouldn't we?
Lisa:That's really relevant as well.
Lisa:I've also seen where somebody's done a whole project on change readiness.
Lisa:It's just too long, and it would be too late to start.
Lisa:So it is a case of quick and dirty, start something, test, iterate.
Lisa:And this is where it comes To teams as well and organizational design, I think,
Lisa:yeah, the best way to deliver change is with teams that are put together for that,
Lisa:do it, and then disbanded other teams, so that should be the way that it works, it's
Lisa:all incredibly complex and then you have to put that overlay, the business as usual
Lisa:and delivery, otherwise, what's the point?
Daniel:I think one of the issues with readiness is there's a few
Daniel:definitions, there's a few layers to it.
Daniel:I think there's essentially three the way I think about it.
Daniel:We've got organizational readiness, which is how what's going on in
Daniel:this organization is change being measured, assessed, understood at
Daniel:a global level, reported, cascaded.
Daniel:And then I think about readiness, if I'm, ideally starting a project at
Daniel:the beginning as a change manager, I want to say, so how ready is this
Daniel:organization to accept this change?
Daniel:What other projects are happening?
Daniel:Given the proposed timing, what's likely to happen, given what we know
Daniel:about impacts, what does that mean?
Daniel:How ready is this organization?
Daniel:And this is an iterative process that then goes all the
Daniel:way down to go live readiness.
Daniel:How ready is this organization now?
Daniel:Does everybody have their logins?
Daniel:Have they been trained?
Daniel:And so we're right down to a very tactical go live readiness.
Daniel:We're going live on the weekend, it's Thursday, are we ready?
Daniel:So I think about it in a very broad level and it's a very much
Daniel:an iterative process that becomes there's three fairly distinct stages.
Daniel:And there's a whole lot of work that goes into all that to get right down to a level
Daniel:of readiness for going live this weekend.
Daniel:That's what I think about readiness.
Paula:Yeah that's absolutely right.
Paula:When I talked about readiness, I just had in mind that initial readiness exercise
Paula:before actually jumping into things.
Paula:But absolutely.
Paula:There's an element of readiness that it's not like you just do one
Paula:readiness assessment in the beginning.
Paula:And that's that.
Paula:No, that's when you do the overall x ray of the organization.
Paula:But later down the road, you have to focus more on How ready the
Paula:people are, how ready the systems are can we actually go live?
Paula:Are our processes fully baked, fully designed?
Paula:Can we actually go live?
Paula:Absolutely.
Paula:There's that and, thinking about this quick and dirty, which I've
Paula:also heard quite a number of times, and it's definitely not my favorite
Paula:thing to hear something that comes from the project management world
Paula:You have these three variables in project management.
Paula:It's you know, it's time.
Paula:It's the scope and there's the budget.
Paula:You can't have you can't adjust all of them.
Paula:If you want to make it fast, then maybe you have to pump in more budget
Paula:to make it fast, bringing more people.
Paula:So this way you can get it over with faster.
Paula:Or perhaps you have to adjust your ambitions.
Paula:And as a result reduce the scope.
Paula:But of course, the scope is it's harder to reduce the scope if you're talking
Paula:digital, transformational, whatever.
Paula:Even if it's non transformational changes.
Paula:Then maybe you can.
Paula:Adjust the scope.
Paula:If timing is not the option, then something has to give.
Paula:You cannot have everything right.
Paula:You cannot have the full scope.
Paula:You cannot have, this tiny budget and you cannot have it done yesterday.
Paula:You have to make some, this goes to the
Daniel:origin, I think this goes to the origin of this call, which is leadership.
Daniel:And this is where real leaders need to fully, really understand this.
Daniel:And there's this negotiation point that happens as there's a conversation
Daniel:around scope or budget or time where things get locked in and you really
Daniel:need to gain agreement from everybody at that point because otherwise
Daniel:you're locked in to whatever, whatever comes out of that meeting.
Daniel:Yeah, that's a very important point.
Daniel:And it's really, it's look, it's an act of leadership to understand those trade offs.
Daniel:And I think.
Daniel:This comes back to the point you made about stuff that
Daniel:Paul had written in his book.
Daniel:And it's a great book actually How Big Things Get Done.
Daniel:It's all that work by the Oxford guy Bent Flyvbjerg
Daniel:Leaders need just need to appreciate if you're initiating a big digital
Daniel:transformation, given this is what we're talking mostly about today
Daniel:the scope is pretty much only going one way, and that's increasing.
Daniel:So custom timelines are going to get out of hand and they always do, right?
Daniel:But they need to understand that this is not unique to them and their project,
Daniel:that they're not doing it badly.
Daniel:This is just how the world, this is the outside view of
Daniel:large infrastructure projects, including digital transformations.
Daniel:And so it's a real act of leadership to really fully comprehend what Paula
Daniel:was talking about which goes to the whole readiness discussion we've talked
Daniel:a lot about today, but certainly I couldn't agree more with where Paula
Daniel:was heading with that conversation.
Lisa:Then also, linking back to the success.
Lisa:So if you are ready for this change and you are realistic about how big it
Lisa:can get, how expensive it could get, if you don't want it to be quick and
Lisa:dirty, then how long is it and how expensive then define that success
Lisa:so that you can say, yes, I delivered this and we hit these particular goals,
Daniel:Look, these big multi year trend digital transformation I've been
Daniel:involved with on go live, I considered broadly, successes, but they're.
Daniel:hundreds of millions of dollars over what they initially thought the budgets were.
Daniel:Like just out of this world more expensive than they thought.
Daniel:And that, that is, they're considered successors.
Daniel:And this is where you get to that myth of 70 percent of failure.
Daniel:That's a failure rate of by that definition, 100 percent
Daniel:of all projects are failures.
Daniel:So These projects are they are massively hard.
Daniel:They are massively difficult to do.
Daniel:And they take a huge amount of resources for the organization.
Daniel:Huge amount.
Lisa:It's almost yeah, you have to look at it as a learning process as well.
Lisa:The value is, going to be all different levels.
Lisa:And not just what you have envisaged.
Lisa:GoLive could happen.
Lisa:And this is like people who came to me most recently, had
Lisa:clients with GoLive happened.
Lisa:And that was ticked off, but then the adoption wasn't.
Lisa:Enough, it's actually, again, going back to, I think, your one of your questions,
Lisa:Rob, was, the longer term implications.
Lisa:You can even have success, what you think is success.
Lisa:We did it.
Lisa:We ticked off everything on the project plan.
Lisa:It's gone live, that's it.
Lisa:But then, it settles down and it's not adopted as you wanted.
Lisa:And then you're not, maybe it's not a total failure, but you're
Lisa:not recouping your investment.
Lisa:You're not getting the value.
Lisa:People are not happy.
Lisa:That's not to be negative about it, but it's just that you need to define
Lisa:the success in a very broad way and you need to iterate and keep adapting and
Lisa:moving on because the engagement people,
Lisa:I think that's something else, which, I think lots of leaders do underestimate
Lisa:the amount of engagement that's needed, not just comms and training.
Lisa:This makes sense.
Lisa:So it's, everyone's going to do it.
Lisa:Why wouldn't they?
Lisa:And what that engagement looks like
Lisa:And what might come out of it because of course if you don't
Lisa:engage people and you just tell them you don't really find out, do you?
Lisa:It's easier to hit your short term goals again but then these longer term
Lisa:ones are going to come back and bite
Lisa:you.
Rob:How can you measure that engagement?
Rob:Because obviously, you can communicate, but communication is also what's heard.
Rob:And we know that there's only so much, people only take in something like 30,
Rob:40 percent of what is said at best.
Rob:So how can, is there a way that you look at measuring that engagement?
Paula:There are two sides of it.
Paula:One of this quantitative, where it makes sense, and there's
Paula:also the qualitative aspect.
Paula:And I think that engagement in the context of change management, it has
Paula:to rely a lot on qualitative feedback.
Paula:And I'm saying that for the following reason, a lot of people think engagement
Paula:is This type of one way communication where you will send out stuff and
Paula:invite people to share their feedback.
Paula:So they think that just because they've invited people, they've provided
Paula:a link, which people can click.
Paula:If they want to share their feedback or ask a question or whatever,
Paula:they think that is engagement.
Paula:True engagement is not about that.
Paula:True engagement is actually not giving simply giving people the
Paula:option to respond, but actually going out of your way to have them
Paula:involved, have them participate.
Paula:That's why, for example, in my practice, at least, a lot of
Paula:focus is on actual conversations.
Paula:And I'm not just talking about focus group discussions.
Paula:I know that Daniel has also written about that, about the value of
Paula:these informal conversations.
Paula:And he's absolutely right about that.
Paula:A lot of the feedback you are looking for as a change manager
Paula:actually comes out of that.
Paula:But the trick, if I can call it that, and I think, I don't remember
Paula:exactly, but I think Daniel might have suggested this as well, you don't go
Paula:into these conversations with a clear agenda, oh, I'm going to have this
Paula:watercolor conversation to extract information and see how they are feeling.
Paula:No, it's about genuinely trying to connect with people as much as
Paula:is humanly and reasonably possible because In any given project.
Paula:If you're working, for a global project with thousands or tens of thousands
Paula:of stakeholders, you won't be able to do that with every single person.
Paula:But there are these water cooler moments where you just have a human
Paula:to human conversation with someone and just because they see that you
Paula:are there, you're actually listening.
Paula:You're being empathetic.
Paula:They feel comfortable enough to share things that they wouldn't put in a survey.
Paula:And they wouldn't share in a focus group discussion either.
Paula:So a lot of the feedback gets to us in, in, in those ways.
Paula:But of course, focus group discussions are important.
Paula:Q& A sessions are important.
Paula:Any opportunity that people get to actually express their
Paula:thoughts speak their mind.
Paula:But it's important for trust to, to be there.
Paula:And I know, Rob, that you focus a lot in your work about, on, on trust.
Paula:And that's one of the things that I really love about your work.
Paula:Because if you don't have that foundation of trust.
Paula:You can organize all the focus groups and all the Q & A sessions
Paula:in the world that will be pointless.
Rob:It comes to mind when you say that, when you look at bad leadership,
Rob:a lot of it comes from fear.
Rob:So I think, like in the same way that there's figures about change, there's
Rob:60 percent of change of first time managers fail in the first two years.
Rob:And I don't know how they define fail or whatever, but I think the problem is
Rob:that when someone takes over as a leader.
Rob:Being a leader, it's, they feel like they're in the spotlight
Rob:and they feel inadequate.
Rob:And there, there's a, I think a big part of it is a fear of perception of
Rob:which leads to, we're going to do this.
Rob:We're going to make this big impression.
Rob:And I'm wondering how much of that bad leadership is about
Rob:not having that conversations is about not listening about.
Rob:It'd be in one way communication.
Rob:Is that perhaps something that you would say as a barrier that, leaders
Rob:are like, let's get this done without?
Rob:Yeah,
Daniel:Some of the most effective change leadership I've seen was on
Daniel:that 2020 project that out of Sydney.
Daniel:The sponsor we had was awesome.
Daniel:Like she'd throw you like it'd be, three o'clock in the afternoon.
Daniel:You get this phone call.
Daniel:Hey, I just heard this and she would on the phones constantly calling
Daniel:people up and down the chain, all over the world, just constantly in
Daniel:communication with people, talking to people, having conversations as well.
Daniel:It was amazing.
Daniel:She was awesome.
Daniel:Just awesome.
Daniel:She wasn't like sitting behind a computer trying to navigate
Daniel:things through dashboards which is a time and place for all of that
Daniel:kind of data and looking at it.
Daniel:But she was in there having conversations and that, and as such
Daniel:was really effective in getting that project across the line highly risky.
Daniel:We had a highly engaged audience.
Daniel:It was pretty extraordinary, actually, and it helped a lot because there was
Daniel:so much technical issues, and there was so many training considerations
Daniel:and people issues we had to resolve.
Daniel:Not having to think about poor engagement.
Daniel:High resistance was hugely helpful.
Daniel:So my, question though.
Daniel:Rob, like this is a masterclass kind of question, it, there's so many facets and
Daniel:assets, to it, but I would say you need to do everything and triangulate it.
Daniel:There's so much qualitative data that feeds into it and you've got to make
Daniel:some judgment decision and you've got to assess, okay it's a bit like that
Daniel:pornography the judge saying, I know it when I see it, like you, you will feel
Daniel:poor and get low engagement, when things are, when your change audience is not
Daniel:engaged or disengaged, or you really, it's palpable and you've got to work
Daniel:through it, you've got to triangulate it, you've got to try and measure it.
Daniel:Surveys in this day and age, Basically pointless because nobody can place them.
Daniel:So you got to find other ways to gather this data and work through it.
Daniel:So it's a very nuanced.
Daniel:It's a very human process.
Daniel:That's for sure.
Lisa:Where I've seen it work best again is.
Lisa:When you have people talking about the change at every level,
Lisa:particularly in the middle.
Lisa:Not just when you've got an event about the change, but just like a normal
Lisa:conversation or regular team meeting or something, not taking over, but
Lisa:just mentioning the change or seeing how it's going or, connecting it.
Lisa:It's making these connections.
Lisa:To your business as usual, to what's happening, to what else is
Lisa:happening, to career progression, success and succession planning
Lisa:performance management, everything.
Lisa:It has to, and that's why you need the leadership alignment as well because
Lisa:everyone needs to, not that they need to know this is the answer and this is
Lisa:what we're doing, but as you said, even opening up those gray areas, those spaces
Lisa:where it's like, what is happening?
Lisa:What is happening?
Lisa:What's going right?
Lisa:What's going wrong?
Lisa:And that's incredibly risky, as you were saying, even in A risky project.
Lisa:You want to add more risk by asking people what they really think and, trying to
Lisa:find out, trying to gather the resistance.
Lisa:You actually want to do that.
Lisa:And I think, a lot of leaders, a lot of people, let's face it, it's a human
Lisa:thing to do, want to try to ignore that or hope it's not there, paper over it.
Lisa:To actually bring out the resistance, to find out what
Lisa:people are really thinking is.
Lisa:It takes a lot of courage and you will get to a better answer, but it will
Lisa:take longer and it won't feel good, as you say again, Daniel, when this starts
Lisa:to actually come out after people say yeah, that's fine, I'll do it, when
Lisa:it actually comes to the point where you realize they don't want to do it.
Lisa:It's not a comfortable feeling and it doesn't help you get to where you want
Lisa:it does help you get to where you want to go, but not as quickly as you want to.
Paula:You made some really great points there.
Paula:First of all, when you said that leaders have to be heard and seen talking
Paula:about the change on, on a regular day to day basis, not just when you
Paula:have this special event coming up.
Paula:And I think that a lot of leaders don't realize that people are
Paula:actually paying attention.
Paula:Is this person really thinking that this is important?
Paula:So then how come we never hear about this unless it's a, all hands meeting
Paula:or, all employee meeting or town hall or whatever again, it all boils down
Paula:to these informal conversations maybe step into an elevator with a senior
Paula:executive who's sponsoring the change.
Paula:And you hear this person talking about that change as an employee.
Paula:You can't help but think, Oh that's actually genuinely
Paula:important to this person.
Paula:It really matters.
Paula:Maybe I want to pay attention or pay more attention to that.
Paula:So that's a really wonderful point that you made.
Paula:There's a lot of leaders think that they only need to communicate
Paula:if they're about the change.
Paula:There's an official occasion for that.
Paula:And the other really great point you made is about resistance and how
Paula:leaders are not necessarily prepared to deal with reluctance resistance,
Paula:whatever we want to call it.
Paula:I can distinctly recall this experience where I Basically talked the vice
Paula:president of our organization into running some focus group
Paula:discussions for the very first time.
Paula:I convinced him to let me do that because we wanted to build the people
Paula:engagement framework from the bottom up.
Paula:And this had never been done before.
Paula:So the way to do it in my mind was let's get people to co create with us.
Paula:Let's not, come in with, Oh, we want to engage you in these ways.
Paula:We want to offer you these things.
Paula:No.
Paula:Let's first hear from people.
Paula:What is it that they need?
Paula:What have they missed?
Paula:All along.
Paula:What would we do?
Paula:Let's get them into this conversation.
Paula:So he was okay with that.
Paula:But then when the results came in when I presented the results to him and his team,
Paula:he was not very happy and he didn't want to share these results publicly, although
Paula:I had already committed to everyone to sharing these results publicly and
Paula:transparently because he didn't appreciate some of the feedback that was provided.
Paula:Feedback, which although I was supposed to be neutral now that
Paula:I'm not in that setting anymore.
Paula:I could definitely relate to that people actually had a good point.
Paula:And, even if I didn't think so, my job was to convey what
Paula:people said and how they felt.
Paula:But it just so happened that I understood why they were saying the things that
Paula:they were saying, and why they were asking for very specific things.
Paula:So it always comes down to, okay, we ask for feedback, we get people involved, but
Paula:then what do we do with their feedback?
Paula:Do we, swipe it under the rug?
Paula:Or do we actually take some steps to show that Hey, we actually listen.
Paula:And maybe we cannot offer you everything that you're asking for.
Paula:Maybe not at this time, but here's what we can do instead at this time.
Paula:And, let's take it step by step or, any show of good faith, because
Paula:it's very easy to lose trust.
Paula:When you ask people for feedback and then they give you something
Paula:that you're not comfortable with, or, you're not ready to hear that.
Paula:That's why I think resistance is another topic that should definitely
Paula:be on on any leadership curriculum or, any MBA schools or whatever leadership
Paula:development programs that teach leaders about change and change management.
Paula:If I reflect back On my work with cultures, there are certain cultures where
Paula:saying no is considered extremely rude.
Paula:And as a result leaders think that just because no one is
Paula:saying no, especially leaders.
Paula:So when you have leaders, for example, from the West with teams made up
Paula:primarily of people from Eastern cultures.
Paula:And they don't get that no, or they don't get any objection.
Paula:It's easy for them to think, oh everybody's on board
Paula:because no one said no.
Paula:We gave them an option to say no, they didn't.
Paula:So they're on board.
Paula:And others, for example if I'm thinking about Eastern Europe, about
Paula:the cultures of Eastern Europe, which unfortunately heavily marked by almost
Paula:half a century of communism, or at least in my country you could not say no,
Paula:and you could not even ask questions.
Paula:So that's also an issue because in these countries you might have this issue where
Paula:people will not, you know, Oh, I have these concerns, or I don't think this
Paula:is a good idea or anything of that sort.
Paula:And that people mistake that some leaders mistake that for
Daniel:Hey, the one thing that stood out in the story you were telling was
Daniel:getting the results back and then going.
Daniel:Oh, we're not going to share that.
Daniel:I've been there as well.
Paula:It wasn't like we're not going to share any of that.
Paula:We're not going to share all of that.
Paula:I found a way to share all of that, in a more diplomatic way.
Paula:Publicly, not, not behind the Because it was what we committed to.
Paula:It was, and trust was at stake.
Paula:People needed to hear what they were promised.
Lisa:The one thing worse than not being asked isn't there, and
Lisa:that's being asked and ignored.
Lisa:I think that the point about, the culture and that's national cultures
Lisa:and organizational cultures is really important to change because
Lisa:quite often have a change or transformation that's coming in that's
Lisa:it not in aligned with the culture.
Lisa:Somebody decided this is the latest thing.
Lisa:This is what we're going to become.
Lisa:But if the culture is not like that.
Lisa:It's really difficult to influence, to implement.
Lisa:You can influence cultural change, but that's really a difficult and
Lisa:very long term goal just doing it for that, it's not going to necessarily
Lisa:pay off, but yes, also the element of different cultures of people.
Lisa:National cultures particularly react to being invited to be
Lisa:engaged and to give their opinion.
Lisa:You also, whether someone's introvert or extrovert, I think you need to think
Lisa:very carefully and creatively about how you engage people and get to the depth
Lisa:of their feeling and their resistance.
Lisa:And sometimes they don't even know themselves why
Lisa:they're resisting the change.
Lisa:And it can be incredibly risky for them to to say that out loud, as you were saying.
Lisa:You just don't say, I disagree with my line manager, for
Lisa:example, in some cultures.
Lisa:So you have to give opportunities for anonymous or, not attributed
Lisa:to any particular person and look at it through the lens of systems
Lisa:or process or efficiency as well.
Lisa:And in that case, yeah, I think change management and emotional intelligence,
Lisa:it's, it can be quite tricky and it's not that you're manipulating, but
Lisa:you just have to be very diplomatic.
Rob:Which all comes about with change.
Rob:That's really about psychological safety and so it depends, the culture
Rob:is going to depend and be determined by how much safety is felt which
Rob:again with trust is another element that's going to be more resistance.
Lisa:Yeah.
Lisa:So it plays into the trust.
Lisa:It plays into ability for a team to deliver and it, I think it's becoming
Lisa:more and more important in the future of work that people, if you want to
Lisa:attract the right people and that they can feel this inclusion and safety.
Lisa:I think a high performing team culture, is what you want generally,
Lisa:normally, but particularly for a change delivering change.
Lisa:I think that's what you need to do is understand what skills
Lisa:you have, what personalities you have, what roles you need to have.
Lisa:To deliver this change and some people are going to be change agents
Lisa:are going to be part time or in some people going to be full time.
Lisa:So I'd see this sort of change the team building as an
Lisa:element of change management
Rob:It seems like really from what I've heard is the tension between
Rob:effectiveness and efficiency, which when I think about that in, in
Rob:conflict, when you've got two dynamics, it's usually one that transcends it.
Rob:So I'm thinking that maybe the efficiency is about the action, the execution,
Rob:the strategy, the effectiveness is about bringing people along.
Rob:And I'm guessing that the thing above would be either vision or purpose.
Paula:Actually, all organizations have a vision, have a purpose,
Paula:more or less well articulated.
Paula:And they all have a strategy that is supposed to support one of these
Paula:goals or both of them at the same time, efficiency and effectiveness.
Paula:And if we look out there, all companies value both of these to some extent,
Paula:but it's hard to to balance them.
Paula:So you have to look at what exactly they are prioritizing.
Paula:If it's efficiency, you'll see a lot of emphasis on how resources
Paula:are used and on cutting costs.
Paula:Whereas with organizations that focus on effectiveness, they will put a
Paula:premium on increasing revenue, which is not the same as cutting costs, and
Paula:I'm talking about what they show and what, of course, what they talk about.
Paula:The emphasis is also on producing goods or services.
Paula:Now, of course, in practice, you will hardly find an organization that will say.
Paula:Our goal is to be the most cost effective or the most efficient or the whatever.
Paula:No, you have to look at what's behind what they are saying.
Paula:So for example, a company that is very focused on effectiveness
Paula:might talk about innovation.
Paula:We want to put out the most innovative product out there, or we want to do
Paula:this in the most modern way possible.
Paula:So there's clearly an emphasis On effectiveness, what is what
Paula:is going to get us to offer our customers are stakeholders,
Paula:the best possible experience.
Paula:That's what you would get with an organization that is highly
Paula:focused on effectiveness.
Paula:And for example, if we look at low cost companies like EasyJet
Paula:Whizzair and others, their focus is very obvious and it's on
Paula:efficiency because they are paired.
Paula:They're Purposes to cut costs, right?
Paula:This is their business model.
Paula:We offer you this, but we don't offer you that we minimize costs.
Paula:We give you the minimum necessary.
Paula:And if you want the extra then of course that's that can, that is
Paula:possible, but it's going to cost you so the focus there is on efficiency.
Rob:It seems to me where the emphasis is on efficiency is
Rob:where people are less important.
Paula:It is my feeling that yes, indeed where the focus
Paula:is, you can have variations.
Paula:It's not like you're either this or that.
Paula:All companies try to find a certain balance between them.
Paula:Not everybody does.
Paula:Like I said, experts think that Microsoft is one of the very few
Paula:examples of organizations that have managed to get them into balance.
Paula:So you really have to look at what they are prioritizing.
Paula:And of course, that can be correlated with the general sentiment, with the culture,
Paula:with the safety that people are feeling, with the care that people are perceiving
Paula:on the part of the organization.
Lisa:I think it's interesting to think about that, where that always correlates
Lisa:and I haven't got experience, for example, working with easyJet, so I don't know
Lisa:what the employees feel, but I can imagine there are scenarios where yes
Lisa:The customer will see that it's cheap and cheerful or whatever but perhaps the
Lisa:employee can, they can still put quite a lot of effort into employee engagement and
Lisa:change management, but I haven't actually got a a specific example that I have.
Lisa:You're
Paula:right.
Paula:You're right.
Lisa:Yeah, you could do that.
Lisa:And I was also thinking the opposite where again, I haven't worked with Amazon, but
Lisa:I believe that Amazon has different tiers.
Lisa:So if you're in if you're in the factory level, I don't think you would feel
Lisa:much much focus on people and change.
Lisa:It's very, focused on time, delivery, and, no mistakes, quality and quantity.
Lisa:But I think if you're in the management levels, it's a different culture.
Lisa:So you'd have different kinds of culture and different kinds of,
Lisa:different focuses on different areas.
Lisa:But it's a really interesting question whether there's a case study where,
Lisa:you know you can balance it with extremes of delivering, but also of
Lisa:the feeling of the culture, it would be interesting to do some research
Lisa:on.
Paula:That's right, you can have a bit of everything.
Paula:It's, it doesn't mean that if you're very focused on efficiency, then you're
Paula:going to treat your people badly.
Paula:No that's not necessarily the case.
Paula:But in an extreme case where a company really pursues efficiency, no matter what.
Paula:It's a bit unlikely that it will cut its costs only when it's something
Paula:related to the outside world, but not related to its own people.
Paula:It, I haven't seen that, but you're right.
Paula:I have seen examples of organizational cultures where the focus is
Paula:entirely on the customer experience and customer satisfaction.
Paula:And change management's done only focusing on the customers,
Paula:which I found very weird.
Paula:But almost no attention to these given to these aspects when it
Paula:comes to internal stakeholders.
Paula:So you can, yeah, you can definitely have variations.
Paula:Absolutely.
Rob:Did you have something to say, Daniel?
Rob:I thought you were going to,
Daniel:Oh, I think it's been covered, but people self select
Daniel:into these organizations as well.
Daniel:You might think to yourself, yeah, I don't want to go work for an organization that's
Daniel:run around efficiency, shipping, high capex organizations and so on, they're
Daniel:highly, built around efficiency and you might think to yourself, I don't want
Daniel:to work in an organization like that.
Daniel:Yeah.
Daniel:The people who work there probably love it.
Daniel:That's how they're wired and how they're built.
Daniel:Likewise That same person working for Apple or something like that might
Daniel:go crazy with the uncertainty or whatever it is, so it's all people
Daniel:self selecting the roles ultimately.
Daniel:But that said, for any given cultural dynamic leadership can and does
Daniel:impact it dramatically and can impact engagement and make people feel Welcome
Daniel:and engaged and happy to be there like it's a great place to work or
Daniel:they can, make people feel really bad about themselves and be poor managers.
Daniel:And we've all worked for those in our career and the impact
Daniel:that they can have on a person.
Daniel:And ultimately it's a leader's job about what standards of behavior
Daniel:they accept, reward and promote gets cascaded through the organization.
Daniel:So that's the way, again everything comes back to leadership in that regard.
Rob:It's interesting how everything is when you look at one aspect, it
Rob:brings in all the other aspects.
Rob:And we're all so intertwined.
Rob:I really like that point about people self selecting because it's
Rob:what I see in relationships is the level of relationship is down really
Rob:to what people expect and accept.
Rob:It's just a different aspect and dimension of that.
Rob:We're coming up where we're just up at an hour and a half.
Rob:If everyone's got a couple of minutes, what I think is useful at
Rob:the end is to think about what your.
Rob:what you're thinking about, what you're reflecting on anything
Rob:that stood out to you or focused more or how you feel generally.
Rob:So I'll go first just to give people time to think.
Rob:But for me, I think what most stood out is that triangle.
Rob:The triangle of efficiency, effectiveness and purpose and about how a company
Rob:needs to be really clear on their purpose, which is one of the things
Rob:that I think that they're going to get more understanding and insight to their
Rob:purpose as they go through the process of change, which was right at the beginning.
Rob:Daniel, the first thing you said was, it was about the iteration, it changes.
Rob:I think through every change, the purpose is going to change and clarify and refine.
Rob:And just how difficult it is do change.
Rob:It's like jumping on a treadmill that's already running because you can't
Rob:stop everything else that's gone on.
Rob:So that's it for me.
Rob:Daniel.
Daniel:Yeah.
Daniel:Look, we've had a broad ranging conversation around.
Daniel:I think we focused a lot on readiness, which is a great
Daniel:conversation and a big conversation in the change management industry.
Daniel:I think right now is around readiness and particularly at an organizational
Daniel:level and what the implications of that.
Daniel:I think that's been a great conversation today and something
Daniel:that I'm reflecting on.
Daniel:Certainly what I'm seeing out there with the people I'm talking
Daniel:to and is the need for change management is still ever present.
Daniel:And only gaining momentum and building still more.
Daniel:Change management is definitely on the front of people's minds.
Daniel:And we start opening up this conversation about whether it was front and center.
Daniel:I think different parts of the world, people have awareness of it.
Daniel:But I think the awareness of it is growing.
Daniel:People are seeing the benefit of it.
Daniel:And it's definitely when change management is even there in a small
Daniel:part, I think it makes a difference.
Daniel:And then, and people see it and then the next project, they're
Daniel:more likely to build on that.
Rob:That's right.
Rob:Lisa?
Lisa:It's been great talking through so many aspects of change management.
Lisa:I think that's just, again, clarified how big this subject is, how, how it
Lisa:touches on so many aspects and and.
Lisa:Just to reiterate as well how difficult a leader's job is in business
Lisa:than usual, is including change and transformation all the time.
Lisa:So getting people involved, getting people to understand, having more
Lisa:education, getting people involved.
Lisa:And as Daniel said, seeing the benefits of it is has to happen.
Lisa:And I think it is happening as well, slowly.
Lisa:So it's exciting times.
Rob:Thank you, Paula.
Paula:I'm thinking about several things.
Paula:One of them, of course, has to do with how do we get leaders more aware
Paula:of what change management is and how it can benefit their organizations.
Paula:But the other thing that comes to mind is really the need for
Paula:empathy, because it's true.
Paula:Leaders don't have it easy.
Paula:And there are a lot of expectations placed on their shoulders.
Paula:Which is one of the reasons why I think perhaps not everybody's
Paula:made to do that kind of work.
Paula:But at the same time, I think that a lot of empathy needs to
Paula:be offered to the people who have to bring the change to life.
Paula:Because, for example, when I talk to people managers on my training
Paula:sessions, and I ask them to reflect on their reaction to change, many of
Paula:them will typically say, I love change.
Paula:I want change.
Paula:I'm always looking out for opportunities to change something
Paula:because otherwise I get bored.
Paula:And then I asked him the question of how do you react when someone is
Paula:imposing a change on you when you don't get to make that decision.
Paula:And that's when I Start to see that there's some reflection going on
Paula:in there and suddenly they realize that it's not the same thing.
Paula:You can be very excited about change when you're the one who's calling the
Paula:shots, all the shots, but you might not be as enthusiastic when someone
Paula:makes all the decisions for you.
Paula:And I asked them to make this exercise because I want them to realize
Paula:that they're in the privileged complicated or complex role of leading
Paula:an organization, but it's also a privilege because they get to decide.
Paula:It's a responsibility.
Paula:It's also a burden from certain points of view, but the people receiving
Paula:the change are hardly calling any shots if ever when in organizations,
Paula:it's just handed down to them.
Paula:Maybe they're involved in the most fortunate cases.
Paula:In others, they are not.
Paula:There's no possibility to provide feedback or anything of that sort.
Paula:So for them, it's even more complicated.
Paula:I think it's really important for leaders, of course to be regarded with empathy
Paula:because theirs is a very complicated job.
Paula:At the same time, I think that they need to reflect a little bit on
Paula:what it might feel like for someone who's merely the recipient of
Paula:their decisions and their choices.
Rob:Empathy is so key, isn't it?
Rob:I think that's one of the common threads that runs through all.
Lisa:Yeah, and you can't guess what somebody's going to think,
Lisa:because you can be really surprised.
Lisa:You can think, oh, this is probably how they're going to feel and they're not.
Lisa:And you don't know why, because there are all other things, lots of other
Lisa:historical things and so on involved.
Lisa:So yeah, it's a really good point.
Lisa:Keep an open mind, try to be empathetic, try to get more information around
Lisa:the water cooler or wherever, but yeah, you can always be surprised.
Rob:Okay.
Rob:Thank you everyone.
Rob:This has been brilliant for me to listen in.
Lisa:Thank you very much for inviting me.
Lisa:Thank you so much.
Lisa:Thanks for bringing us on.
Daniel:Thank you Rob.
Daniel:Okay.
Daniel:Have a great day.
Daniel:Great day.
Daniel:You too.