Rob:

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.