Category Archives: Change

Five Steps to Digital Transformation Success

Five Steps to Digital Transformation Success

GUEST POST from Art Inteligencia

Digital transformation is increasingly becoming an integral part of businesses in the modern age, as companies seek to leverage technology to gain a competitive edge. But, while the potential benefits of digital transformation are tantalizing, it’s not always easy to make the transition. To ensure a successful digital transformation, here are five key steps you should consider.

1. Understand Your Goals

Before you begin your digital transformation, it’s important to understand your goals. What do you want to achieve with your digital transformation? Do you want to improve customer service, create a more efficient process for managing data, or something else entirely? Being clear on your goals will help you to focus your efforts and ensure you’re making the most of your digital transformation.

2. Develop a Strategy

Once you’ve established your goals, you’ll need to develop a strategy for achieving them. What technologies and processes will you need to implement? What resources and personnel will you need to make it happen? Having a clear strategy will help to ensure success, as you’ll have a roadmap for getting from A to B.

3. Focus on the Customer Experience

Digital transformation should always be focused on the customer experience. How will the changes you’re making improve the customer experience? Will they make it easier to purchase products or services? Will they make it faster to access customer service? By focusing on the customer experience, you can ensure your digital transformation is successful.

4. Invest in Technology and Resources

Digital transformation is an investment, and you’ll need to invest in the right technologies and resources to make it successful. This could include investing in new software, hardware, personnel, and training. While these investments may be costly, they’re necessary in order to ensure the success of your digital transformation.

5. Plan for Change

Finally, it’s important to plan for change. Digital transformation can be disruptive to your business, so it’s important to plan for the changes and prepare your team for the transition. This could involve training staff on new technologies, creating a communication plan to keep everyone in the loop, and establishing processes for dealing with any issues that may arise.

Digital transformation can be a daunting process, but it can also be incredibly rewarding. By following these five key steps, you can ensure your digital transformation is successful and that your business can reap the rewards.

Image credit: Pixabay

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The Anticipatory Leader

Shifting from Reacting to Predicting Disruption

The Anticipatory Leader

GUEST POST from Chateau G Pato

The vast majority of organizational leadership today operates in a state of perpetual reaction. We manage by dashboard, optimize by quarterly report, and respond to crises only after they hit the headlines. This is the Victim Mindset of Leadership — believing that external disruption is an unavoidable, random event that must be absorbed. While this reactive approach might ensure short-term stability, it guarantees long-term decline.

In a world defined by exponential technology and complex global systems, the future belongs to the Anticipatory Leader. This is not about crystal balls or psychic predictions; it is a systematic, Human-Centered approach to sensing and preparing for future shifts before they become crises. It is the core capability that allows an organization to become the disruptor, rather than the disrupted. This shift requires trading the comfortable illusion of stability for the strategic discomfort of informed foresight.

The Three Domains of Anticipatory Leadership

Anticipation is built on a structured commitment to looking beyond the immediate horizon. It moves the leader from the transactional (managing today) to the transformational (designing tomorrow) across three key domains:

  1. Sensing and Signal Detection (The ‘Where’):
    This involves actively seeking weak signals — small, early indicators of massive change that are often dismissed as fringe ideas or anomalies. Reactive leaders only see trends; anticipatory leaders see inflection points. This means looking beyond industry trade journals into adjacent industries, geopolitical shifts, and emerging scientific research. It requires building diverse networks outside the company walls.
  2. Scenario Mapping and Future Prototyping (The ‘What If’):
    Anticipatory leaders refuse to plan for just one future. They create three to five plausible future scenarios based on their detected signals. These scenarios aren’t forecasts; they are mental models used to stress-test current strategies. Crucially, they use these scenarios to engage in Future Prototyping — building Minimum Viable Solutions (MVS) for future needs today, before the market demands them.
  3. Building Organizational Adaptability (The ‘How’):
    The best prediction is useless if the organization cannot pivot quickly. Anticipatory leadership requires embedding Agility and Resilience across the entire enterprise. This means flattening hierarchies, democratizing decision-making (empowering the edge), and constantly practicing unlearning — discarding outdated assumptions about the market, the customer, and the business model. This organizational fluidity is the ultimate defense against disruption.

Case Study 1: The Retail Giant and the E-Commerce Threat (The Cost of Reaction)

Challenge: The Slow Decline of Brick-and-Mortar Revenue

A massive, decades-old general merchandise retailer saw the emergence of e-commerce in the late 1990s not as a threat, but as a niche for booksellers. Their leadership was reactive, focused only on optimizing the square footage of their existing stores.

Anticipatory Leadership Intervention (Failure):

The retailer failed to detect the crucial weak signal: the shift in consumer expectations toward convenience and limitless choice. They ran a single, optimistic scenario: “Online sales will remain under 5% of total retail.” This reductionist view meant they did not prototype alternative logistics models (e.g., last-mile delivery, in-store pickup) until their market share began a terminal decline. Their leadership waited until the disruption was a crisis before reacting, resulting in an expensive, years-long struggle to catch up and a permanent loss of market leadership. The cost of reaction is always exponentially higher than the investment in anticipation.

The Human-Centered Imperative of Foresight

Anticipatory Leadership is inherently Human-Centered. It recognizes that the future is not found in spreadsheets alone; it’s found in the unmet, often un-articulated, needs of humans. By systematically looking for signals in human behavior — how younger generations are spending their time, how environmental awareness is shaping purchasing, or how trust is being fractured by digital life — the leader can predict the behavioral inflection points that drive market change.

Furthermore, leading through foresight mitigates the employee fear of change. When change is announced as a reaction to a competitor’s move, employees feel panicked and betrayed. When change is presented as the execution of a strategy anticipated two years ago, it breeds confidence and a sense of strategic purpose.

Case Study 2: The Software Company and the Open-Source Wave (The Power of Anticipation)

Challenge: The Commoditization of Proprietary Technology

A successful enterprise software company, whose entire business model was based on expensive, proprietary licensing, faced the rising tide of open-source software (OSS) in the early 2000s. The traditional leadership instinct was to view OSS as “low quality” or “non-commercial.”

Anticipatory Leadership Intervention (Success):

A small, empowered foresight team within the company detected a weak signal: the cultural shift among top developers who increasingly valued collaboration and transparency over vendor lock-in. Instead of dismissing OSS, the leadership team mapped two extreme scenarios — one where OSS failed, and one where it became the global standard. They quickly realized the latter was plausible and highly destructive to their core business.

Their action was anticipatory: they made a strategic pivot by quietly investing in and contributing heavily to several key OSS projects, and then repositioned their proprietary product not as a stand-alone license, but as a Premium Service Layer built on top of the open-source infrastructure. This shift transformed them from an expensive vendor into a trusted ecosystem partner, securing a new recurring revenue stream and attracting the very talent their competitors were losing. They predicted the disruption and changed their business model before their revenue plateaued.

Conclusion: Making Anticipation Your Operating System

The time lag between a disruption beginning and it hitting your P&L is shrinking every year. You cannot wait for the data to confirm what common sense and human insight already suggest. The Anticipatory Leader does not fear the future; they design for it.

“Reactive leaders spend their time climbing out of holes. Anticipatory Leaders focus on where to dig the next one. That gap is the difference between survival and sustained market dominance.” — Braden Kelley

Make sensing the future a daily habit, not an annual planning exercise. Your essential first step: Empower your best people to spend 10% of their time focused entirely on weak signals outside your current strategic boundary. This small investment in foresight is the greatest insurance policy you can buy against being disrupted.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Pexels

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Systems Thinking Meets Empathy

Designing Solutions for Interconnected Problems

Systems Thinking Meets Empathy

GUEST POST from Chateau G Pato

For decades, organizational innovation has been dominated by a mindset of reductionism: breaking a complex problem into smaller, manageable parts. We optimize the part, declare victory, and are often shocked when the whole system breaks down. We’ve managed to perfect the gear, but forgotten how the clock works.

Today’s challenges — digital transformation, climate resilience, supply chain volatility, and toxic organizational culture — are not isolated problems. They are interconnected systems. Solving them requires a fusion of two powerful disciplines that, when combined, create a force multiplier for change: Systems Thinking (the structural view) and Empathy (the human view).

This fusion is the essence of designing truly holistic and sustainable solutions. It moves us beyond mere product fixes to genuine systemic transformation.

The Failure of Incremental Optimizations

The core trap of reductionist thinking is the Unintended Consequence. Consider the classic example of optimizing a call center. By focusing purely on reducing the “Average Handling Time” (AHT), you successfully lower labor costs (an optimized part). But the system responds by increasing customer frustration, spiking repeat calls, and driving employee burnout (a systemic failure). The local win leads to a global loss.

Systems Thinking forces us to zoom out, seeing the organization not as a hierarchy of departments, but as a network of feedback loops. It requires identifying leverage points — small changes that yield large, lasting results — rather than just hammering on symptoms.

Empathy: The Only Way to Map the Human System

Where Systems Thinking provides the map of structure, Empathy provides the coordinates of human behavior. A map of the system is useless if it doesn’t accurately represent the people within it. You can’t identify a leverage point in a human system without understanding the motivations, fears, and cognitive biases that govern behavior.

Human-Centered Design (HCD) uses empathy to uncover latent needs, but when scaled to address large systems, that empathy must be elevated. It becomes about mapping the human-to-human and human-to-process connections. This qualitative understanding reveals the true cultural and emotional feedback loops — the places where fear reinforces inertia, or where purpose creates a virtuous cycle.

The Integrated Approach: Five Steps to Systemic Empathy

  • 1. Define the Boundary with Humility:
    Use Systems Thinking to define the true scope of the problem. Which external stakeholders, historical decisions, and seemingly unrelated departments are truly influencing the issue? We must resist the urge to draw the boundary too tightly around our own silo.
  • 2. Map the Feedback Loops (Human and Structural):
    Don’t just map process flows. Use Empathy to map the emotional and political flows. Where does the fear of a leader reinforce risk aversion? Where does a metric (like AHT) incentivize the wrong human behavior?
  • 3. Locate the Leverage Points at the Intersection:
    Look for places where human behavior and structure violently intersect. A simple policy change may be a leverage point, but only if it addresses a deep-seated human pain point revealed through empathy. This is where you stop fixing symptoms and start changing the system’s DNA.
  • 4. Co-Design the Intervention with the System:
    Never design the solution for the system; always design it with the system. Involve people from multiple, traditionally siloed points in the loop — Legal, Finance, Operations, and the end-user — to ensure the solution is structurally viable and emotionally adoptable.
  • 5. Measure Systemic Impact, Not Local Gain:
    Did the change truly improve the entire network? Your success metrics must be holistic. Measure outcomes like employee engagement and customer lifetime value, not just localized metrics like output per hour.

Case Study 1: Reforming the R&D Investment System

Challenge: Stagnant Innovation in a Fortune 500 Manufacturing Firm

A massive manufacturer struggled with risk-averse innovation despite generous R&D funding. Reductionist analysis focused on optimizing the stage-gate process (the part).

Systemic Empathy Intervention:

The team interviewed engineers, lab managers, and the CFO (Empathy). They discovered a powerful Systemic Loop: The rigid financial forecasting requirement (Structural Loop) fueled engineers’ fear of committing to risky projects, which meant they only proposed incremental ideas (Human Behavior). The solution was to create a small, separate “Discovery Fund” for high-risk, low-budget projects. This fund was shielded from traditional forecasting requirements, immediately lowering the fear-of-failure feedback loop. The small structural change, informed by human empathy, successfully unlocked the entire R&D system and generated a rapid spike in ambitious proposals.

Case Study 2: Improving a Public Service Delivery System

Challenge: High Employee Turnover in a Local Social Service Office

A metropolitan social service office had high case worker turnover, leading to poor service continuity. Traditional fixes focused on increasing salaries or hiring more HR staff (addressing symptoms).

Systemic Empathy Intervention:

The team shadowed case workers and interviewed citizens (Empathy). They uncovered a debilitating Vicious Cycle: Case workers were forced to use outdated, disconnected administrative software (Structural Loop), leading to hours of manual data entry instead of counseling clients (Human Pain). This caused burnout and emotional drain (Human Behavior), which led to high turnover, further burdening remaining staff (Reinforcing Loop). The structural leverage point wasn’t salary; it was the software. By co-designing a simplified mobile application with the case workers, the organization successfully automated 60% of data entry, immediately improving job satisfaction and halting the vicious cycle of turnover. This structural change, driven by empathy, stabilized the entire service delivery system.

Conclusion: Designing Holistically

We are no longer optimizing products; we are optimizing human systems. To lead change today is to stop being a reductionist tinkerer and start being a Systemic Empathy Architect. The future belongs to those who can zoom in with deep, qualitative empathy to understand the human experience, and then zoom out with Systems Thinking to find the elegant structural leverage point that solves the whole problem, not just the part.

“If you want to create change that sticks, don’t fix the symptom. Map the human system, find the fear, and insert empathy as the structural leverage point. That’s how you design transformation.”

The time for siloed innovation is over. Embrace the integrated power of Systems Thinking and Empathy. Your first action: Take your last failed innovation project and re-map it, this time focusing only on the human feedback loops, not the process steps. Lead the charge toward truly holistic, human-centered transformation.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Pexels

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Nominations Closed for the Top 40 Innovation Bloggers of 2022

Nominations Closed for the Top 40 Innovation Bloggers of 2022Human-Centered Change and Innovation loves making innovation insights accessible for the greater good, because we truly believe that the better our organizations get at delivering value to their stakeholders the less waste of natural resources and human resources there will be.

As a result, we are eternally grateful to all of you out there who take the time to create and share great innovation articles, presentations, white papers, and videos with Braden Kelley and the Human-Centered Change and Innovation team. As a small thank you to those of you who follow along, we like to make a list of the Top 40 Innovation Bloggers available each year!

Nominations are now closed.

Our lists from the ten previous years have been tremendously popular, including:

Top 40 Innovation Bloggers of 2015
Top 40 Innovation Bloggers of 2016
Top 40 Innovation Bloggers of 2017
Top 40 Innovation Bloggers of 2018
Top 40 Innovation Bloggers of 2019
Top 40 Innovation Bloggers of 2020
Top 40 Innovation Bloggers of 2021

Do you just have someone that you like to read that writes about innovation, or some of the important adjacencies – trends, consumer psychology, change, leadership, strategy, behavioral economics, collaboration, or design thinking?

Human-Centered Change and Innovation is now looking for the Top 40 Innovation Bloggers of 2022.

The deadline for submitting nominations is December 24, 2022 at midnight GMT.

Nominations are now closed, but people were able to submit a nomination in either of these two ways:

  1. Sending us the name of the blogger and the url of their blog by @reply on twitter to @innovate
  2. Sending the name of the blogger and the url of their blog and your e-mail address using our contact form

(Note: HUGE bonus points for being a contributing author)

So, think about who you like to read and let us know by midnight GMT on December 24, 2022.

We will then compile a voting list of all the nominations, and publish it on December 25, 2022.

Voting will then be open from December 25, 2022 – January 1, 2023 via comments and twitter @replies to @innovate.

The ranking will be done by me with influence from votes and nominations. The quality and quantity of contributions by an author to this web site will be a contributing factor.

Contact me with writing samples if you’d like to publish your articles on our platform!

The official Top 40 Innovation Bloggers of 2022 will then be announced on here in early January 2023.

We’re curious to see who you think is worth reading!

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How to Turn Fear into Fuel for Innovation

The Change Mindset

How to Turn Fear into Fuel for Innovation

GUEST POST from Art Inteligencia

The relentless pace of modern business ensures one constant: Change is mandatory. Yet, the average project failure rate stubbornly hovers around 70%. This failure isn’t technical; it’s human. It’s the result of change-makers ignoring the most fundamental driver of resistance: Fear.

Fear — of the unknown, of losing control, of being exposed as inadequate — is a natural, physiological response to disruption. In the workplace, this fear becomes a powerful, paralyzing force. Our primary goal as innovation and change leaders must therefore be to cultivate a widespread, innate Change Mindset — the ability to not just tolerate organizational anxiety, but to consciously process and convert it into the potent energy required for creative action. This is the bedrock of Braden Kelley’s Human-Centered Change methodology.

Recognizing Resistance as a Vital Signal

When resistance appears, our default managerial response is often to push harder, double-down on communication, or blame culture. This is a mistake. Resistance is not an adversary to be defeated; it is a vital signal — a rich source of insight. The human brain’s threat-detection center, the amygdala, doesn’t distinguish between a saber-toothed tiger and a new organizational chart. It simply signals danger, initiating a “fight or flight” response.

To unlock the Change Mindset, we must move beyond the Adoption Mindset — which focuses on forcing the “what” of the change—to an Engagement Mindset — which focuses on co-creating the “how” and “why.” The goal is to interrupt the fear-to-resistance loop by making the process itself safe.

Three Levers for Cultivating the Change Mindset

A resilient Change Mindset is built on systemic practices that address the three deep human needs for motivation: Autonomy, Mastery, and Purpose (AMP).

  1. De-Risk Failure and Celebrate Unlearning: The primary fear is often the consequence of failure (public critique, professional setback). Leaders must create a “Failure Budget” where lessons learned are not hidden, but treated as necessary R&D costs. More critically, we must celebrate unlearning — the difficult work of letting go of old, comfortable competencies. The mantra must shift from “Do this perfectly” to “Experiment, learn quickly, and share the failure data.”
  2. Engage the Co-Creation Imperative: No one resists what they help create. The fastest path to mitigating the fear of losing control is to distribute control. Change should not be designed in an ivory tower and then ‘cascaded.’ Involve the end-users — those whose lives will be most impacted — in the design of the new process from the beginning. This shared ownership is the most powerful antidote to resistance.
  3. Translate Fear into a Shared North Star: Fear is paralyzing when it’s personal. It becomes motivating when it’s acknowledged, externalized, and channeled toward a compelling, shared future. The leader’s job is to define the North Star — the purpose that clearly links the pain of change today to a truly meaningful, beneficial outcome tomorrow. This purpose is the sustainable fuel, far more potent than any mandate or bonus.

Case Study 1: The Global Financial Services Firm – Co-Designing Compliance

Challenge: Shifting to Agile in a Risk-Averse Environment

A major financial services firm had to adopt an iterative digital product model, but faced massive cultural resistance. The entrenched fear, particularly from Legal and Compliance teams, was that faster development would inevitably lead to regulatory breaches and career-ending risk.

Intervention:

The firm avoided a traditional mandate. Instead, they created cross-functional “Innovation Pods” that explicitly included key members from Legal and Compliance. Leaders openly validated the regulatory fears. They then empowered these Pods to co-design a new, accelerated compliance process that built real-time, automated regulatory checks directly into the development tools. The mindset shifted from “Compliance is an obstacle” to “Compliance is a co-creator of speed and safety.” By letting the most fearful groups design the control mechanisms, resistance evaporated, and product development speed increased by over 40%.

Case Study 2: The Healthcare Provider Network – Peer-Led Mastery

Challenge: EHR Integration and Physician Burnout

A large hospital network faced a change management catastrophe: merging three disparate Electronic Health Record (EHR) systems. This change amplified existing physician burnout and deep-seated fears about workflow disruption and patient safety issues.

Intervention:

The project used a Human-Centered Change approach focused on peer-to-peer enablement. They identified respected Physician Change Champions who were trained in both the new system and Change Leadership principles. These champions led short, peer-focused “unlearning” sessions designed to remove the five most frustrating administrative steps from the old system first. The narrative was intentionally shifted from “We’re losing the old system” to “We are adopting better tools to reclaim time for patient care and achieve better outcomes.” This focus on shared purpose and empowering clinical autonomy resulted in a 95% adoption rate within the first quarter and a measurable reduction in administrative friction.

Conclusion: Change is a Human System

The Change Mindset is not about eliminating fear; it’s about acknowledging it and leveraging its energy. We must stop treating resistance as an adversary and start seeing it as the raw, powerful energy of human emotion that comes with any significant disruption. To lead change is to be the ultimate Human-Centered Designer. It means designing the environment and the process to make it psychologically safe for people to take the necessary risk of letting go of the past.

“The Change Mindset is the belief that the energy generated by fear, when properly acknowledged and channeled through co-creation, is the most sustainable and potent fuel available for continuous innovation. Embrace the human system.”

Your first step toward a Change Mindset is simple: Before launching your next initiative, pause and map the three greatest fears of your end-users. Then, invite them to design the solutions to those fears. The future belongs not to the fastest technology, but to the most adaptable human system.

For more detail on different elements of people’s change mindsets to harness going into any change or transformation initiative, I encourage you to check out Braden Kelley’s Eight Change Mindsets

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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Forbidden Truth About Innovation

Forbidden Truth About Innovation

GUEST POST from Robyn Bolton

If you heard it once, you heard it a thousand times:

  • Big companies can’t innovate
  • We need to innovate before we get too big and slow
  • Startups are innovative. Big companies are dinosaurs. They can’t innovate.

And yet you persevere because you know the truth:

Big companies CAN innovate.

They CHOOSE not to.

Using Innovation to drive growth is a choice.

Just like choosing to grow through acquisition or expansion into new markets is a choice.

All those choices are complex, uncertain, and risky. In fact:

Hold on. The odds of failure are the same!

All three growth drivers have similar failure rates, but no one says, “Big companies can’t acquire things” or “Big companies can’t expand into new markets.”

We expect big companies to engage in acquisitions and market expansion.

Failed acquisitions and market expansions prove us (or at least our expectations) wrong. Because we don’t like being wrong, we study our failures so that we can change, improve, and increase our odds of success next time.

We expect big companies to fail at innovation.

In this case, failure proves us right. We love being right, so we shrug and say, “Big companies can’t innovate.”

We let big companies off the hook.

Why are our expectations so different?

Since the dawn of commerce, businesses engaged in innovation, acquisitions, and market expansion. But innovation is different from M&A and market expansion in three fundamental ways:

  1. Innovation is “new” – Even though businesses have engaged in innovation, acquisitions, and market expansion since the very earliest days of commerce, innovation only recently became a topic worthy of discussion, study, and investment. In fact, it wasn’t until the 1960s that Innovation was recognized as worthy of research and deliberate investment.
  2. Innovation starts small – Unlike acquisitions and new markets that can be easily sized and forecasted, in the early days of an innovation, it’s hard to know how big it could be.
  3. Innovation takes time – Innovation doesn’t come with a predictable launch date. Even its possible launch date is usually 3 to 5 years away, unlike acquisition closing dates that are often within a year.

What can we do about this?

We can’t change what innovation is (new, small, and slow at the start), but we can change our expectations.

  • Finish the sentence – “Big companies can’t innovate” absolves companies of the responsibility to make a good-faith effort to try to innovate by making their struggles an unavoidable consequence of their size. But it’s not inevitable, and continuing the sentence proves it. Saying “Big companies can’t innovate because…”  forces people to acknowledge the root causes of companies’ innovation struggles. In many ways, this was the great A-HA! of The Innovator’s Dilemma: Big companies can’t innovate because their focus on providing better (and more expensive) solutions to their best customers results in them ceding the low-end of the market and non-consumers to other companies.
  • Be honest – Once you’ve identified the root cause, you can choose to do something different (and get different results) or do everything the same (and get the same results). If you choose to keep doing the same things in the same ways, that’s fine. Own the decision.
  • Change your choice. Change your expectations – If you do choose to do things differently, address the root causes, and resolve the barriers, then walk the talk. Stop expecting innovation to fail and start expecting it to be as successful as your acquisition and market expansion efforts. Stop investing two people and $10 in innovation and start investing the same quantity and quality of resources as you invest and other growth efforts.
  • The first step in change is admitting that change is needed. When we accept that “big companies can’t innovate” simply because they’re big, we absolve them of their responsibility to follow through on proclamations and strategies about the importance of innovation as a strategic driver of growth.

It’s time to acknowledge that innovation (or lack thereof) is a choice and expect companies to own that choice and act and invest accordingly.

After all, would it be great to stop persevering and start innovating?

Image credit: Pixabay

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Leading in the Age of Uncertainty

How to Anticipate and Adapt with Confidence

Leading in the Age of Uncertainty

GUEST POST from Chateau G Pato

The defining characteristic of the modern business environment is not speed, but volatility. We live in a perpetual state of VUCA (Volatility, Uncertainty, Complexity, Ambiguity). For many leaders, this constant flux generates paralysis, a desperate clinging to old, rigid plans. As a champion of Human-Centered Change, I argue that this uncertainty is not a threat to be managed, but a resource to be leveraged. The true differentiator of effective leadership today is the ability to move beyond mere reactivity and cultivate a proactive culture of Anticipatory Adaptation.

Anticipatory Adaptation is the fusion of foresight and flexibility. It recognizes that in a world where AI, geopolitics, and customer demands shift monthly, the most dangerous strategy is having no strategy for change itself. It’s about building an organizational immune system that can detect weak signals, prototype rapid responses, and maintain psychological safety throughout the process. This approach is the engine that keeps Stoking Your Innovation Bonfire to burn brightly, even through the fog of the unknown.

The Three Pillars of Anticipatory Leadership

To lead confidently amidst the chaos, we must operationalize foresight and agility across three interconnected domains:

1. Institutionalizing Weak Signal Detection

Most organizations are blind to the future because they only listen to strong, incumbent signals — the loudest customers, the direct competitors, the latest earnings reports. Proactive leaders institutionalize the detection of weak signals — the faint, emerging trends on the periphery of their industry. This means empowering diversity of thought and challenging the organizational echo chamber. Who is talking to the fringe users? Who is monitoring the startup ecosystem that could completely disrupt your business model? This exercise, often facilitated through tools like FutureHacking sessions, turns passive watching into active, strategic reconnaissance.

2. Prioritizing Minimum Viable Actions (MVAs)

Uncertainty creates risk aversion, leading to large, slow, ‘bet-the-farm’ projects. The adaptive leader breaks down major strategy into small, rapid, reversible experiments—Minimum Viable Actions (MVAs). The goal of an MVA isn’t scale; it’s learning. MVAs are designed to test the underlying assumptions of a trend or a threat with minimal resource commitment. By running five small, fast experiments instead of one huge pilot, you dramatically accelerate your learning curve and reduce the cost of failure. Speed of learning is the only sustainable competitive advantage in an uncertain age.

3. Anchoring Decision-Making in Purpose

When the environment is stable, processes guide decisions. When the environment is volatile, processes break down. The only constant anchor is a clear, shared purpose. The human-centered leader ensures every team member understands the organizational Why—the mission that transcends quarterly earnings. When faced with an unforeseen threat or a pivot opportunity, team members can independently and rapidly make aligned decisions because they share a common moral and strategic filter. This decentralized, purpose-driven decision-making is the ultimate expression of empowered agency in an uncertain world.

Case Study 1: The Retailer’s Digital Pivot

A major brick-and-mortar retailer with a strong regional presence was initially slow to adopt e-commerce. As the pandemic hit, they faced imminent closure. Traditional leadership might have panicked and attempted a massive, desperate digital overhaul, likely failing due to speed and cost.

Instead, the new leadership team adopted an Anticipatory Adaptation approach. They didn’t try to build Amazon overnight. Their weak signal detection—which they had instituted pre-crisis—had already flagged the rapid shift toward local delivery apps. Their MVA focused solely on testing one assumption: Could their existing store associates execute high-quality, local, last-mile delivery? They launched a pilot within 72 hours, integrating with a single local courier service, manually tracking results. When the MVA proved successful, they rapidly scaled the model, granting each store manager the agency to customize the local delivery integration based on their specific community needs.

By focusing on speed of learning with MVAs and leveraging their existing human assets (store associates), they successfully transformed their physical stores into micro-distribution centers, not only surviving the crisis but gaining market share by offering hyperlocal service that larger competitors couldn’t match. Their success was a product of small, rapid adaptations, not a sweeping, rigid plan.

Case Study 2: Hacking the Climate Risk

I worked with a global utility provider whose core infrastructure faced rising climate-related risks (severe storms, heat waves). The traditional response was a twenty-year capital expenditure plan. While necessary, it was too slow for the pace of change.

We instituted a futurology program centered on uncertainty. We didn’t ask, “What will the weather be?” but “What if the worst-case scenario happened five years early?” This forced cross-functional teams (engineering, finance, public relations, and frontline operations) to anticipate cascading failures. The MVA derived from this exercise was a decentralized Rapid Response Kit—a set of pre-approved procedures, pre-allocated minor budgets, and pre-trained local teams empowered to deploy immediate, tactical infrastructure solutions (like temporary microgrids) without waiting for C-suite sign-off during a crisis.

The result was a cultural shift from passive risk management to proactive resilience. The utility didn’t eliminate the climate risk, but they drastically reduced the time between recognizing a threat and taking decisive, purpose-aligned action. Their improved response times during subsequent extreme weather events saved millions in recovery costs and significantly boosted public trust, illustrating how empowering people to act within a purpose framework is the most effective defense against uncertainty.

“Confidence in an uncertain world isn’t about knowing the answer; it’s about trusting your organization’s ability to learn faster than the pace of change. Trust comes from human empowerment, not rigid control.”

The Adaptive Leader’s Next Steps

Leading with confidence in this environment means shifting your leadership focus:

  • Audit Your Blind Spots: Dedicate resources to actively seek and discuss weak signals that challenge your current success model. What customer are you losing that you aren’t talking about?
  • Institutionalize Rapid Testing: Require every major strategic initiative to be broken down into three to five low-cost, reversible MVAs. Celebrate the learning derived from failed experiments, not just the success of the winners.
  • Embrace Humility: Recognize that the smartest person is the network, not the individual leader. Your job is to facilitate learning, remove organizational friction, and anchor everyone in the shared purpose so they can adapt locally and autonomously.

Uncertainty tests the structural integrity of every organization. The leaders who succeed will be those who trust their people, prioritize learning over planning, and wield Anticipatory Adaptation as their core strategic competence.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Pexels

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4 Key Aspects of Robots Taking Our Jobs

4 Key Aspects of Robots Taking Our Jobs

GUEST POST from Greg Satell

A 2019 study by the Brookings Institution found that over 61% of jobs will be affected by automation. That comes on the heels of a 2017 report from the McKinsey Global Institute that found that 51% of total working hours and $2.7 trillion dollars in wages are highly susceptible to automation and a 2013 Oxford study that found 47% of jobs will be replaced.

The future looks pretty grim indeed until you start looking at jobs that have already been automated. Fly-by-wire was introduced in 1968, but today we’re facing a massive pilot shortage. The number of bank tellers has doubled since ATMs were introduced. Overall, the US is facing a massive labor shortage.

In fact, although the workforce has doubled since 1970, labor participation rates have risen by more than 10% since then. Everywhere you look, as automation increases, so does the demand for skilled humans. So the challenge ahead isn’t so much finding work for humans, but to prepare humans to do the types of work that will be in demand in the years to come.

1. Automation Doesn’t Replace Jobs, It Replaces Tasks

To understand the disconnect between all the studies that seem to be predicting the elimination of jobs and the increasingly dire labor shortage, it helps to look a little deeper at what those studies are actually measuring. The truth is that they don’t actually look at the rate of jobs being created or lost, but tasks that are being automated. That’s something very different.

To understand why, consider the legal industry, which is rapidly being automated. Basic activities like legal discovery are now largely done by algorithms. Services like LegalZoom automate basic filings. There are even artificial intelligence systems that can predict the outcome of a court case better than a human can.

So, it shouldn’t be surprising that many experts predict gloomy days ahead for lawyers. Yet the number of lawyers in the US has increased by 15% since 2008 and it’s not hard to see why. People don’t hire lawyers for their ability to hire cheap associates to do discovery, file basic documents or even, for the most part, to go to trial. In large part, they want someone they can trust to advise them.

In a similar way we don’t expect bank tellers to process transactions anymore, but to help us with things that we can’t do at an ATM. As the retail sector becomes more automated, demand for e-commerce workers is booming. Go to a highly automated Apple Store and you’ll find far more workers than at a traditional store, but we expect them to do more than just ring us up.

2. When Tasks Become Automated, The Become Commoditized

Let’s think back to what a traditional bank looked like before ATMs or the Internet. In a typical branch, you would see a long row of tellers there to process deposits and withdrawals. Often, especially on Fridays when workers typically got paid, you would expect to see long lines of people waiting to be served.

In those days, tellers needed to process transactions quickly or the people waiting in line would get annoyed. Good service was fast service. If a bank had slow tellers, people would leave and go to one where the lines moved faster. So training tellers to process transactions efficiently was a key competitive trait.

Today, however, nobody waits in line at the bank because processing transactions is highly automated. Our paychecks are usually sent electronically. We can pay bills online and get cash from an ATM. What’s more, these aren’t considered competitive traits, but commodity services. We expect them as a basic requisite of doing business.

In the same way, we don’t expect real estate agents to find us a house or travel agents to book us a flight or find us a hotel room. These are things that we used to happily pay for, but today we expect something more.

3. When Things Become Commodities, Value Shifts Elsewhere

In 1900, 30 million people in the United States were farmers, but by 1990 that number had fallen to under 3 million even as the population more than tripled. So, in a manner of speaking, 90% of American agriculture workers lost their jobs, mostly due to automation. Still, the twentieth century became an era of unprecedented prosperity.

We’re in the midst of a similar transformation today. Just as our ancestors toiled in the fields, many of us today spend much of our time doing rote, routine tasks. However, as two economists from MIT explain in a paper, the jobs of the future are not white collar or blue collar, but those focused on non-routine tasks, especially those that involve other humans.

Consider the case of bookstores. Clearly, by automating the book buying process, Amazon disrupted superstore book retailers like Barnes & Noble and Borders. Borders filed for bankruptcy in 2011 and was liquidated later that same year. Barnes & Noble managed to survive but has been declining for years.

Yet a study at Harvard Business School found that small independent bookstores are thriving by adding value elsewhere, such as providing community events, curating titles and offering personal recommendations to customers. These are things that are hard to do well at a big box retailer and virtually impossible to do online.

4. Value Is Shifting from Cognitive Skills to Social Skills

20 or 30 years ago, the world was very different. High value work generally involved retaining information and manipulating numbers. Perhaps not surprisingly, education and corporate training programs were focused on teaching those skills and people would build their careers on performing well on knowledge and quantitative tasks.

Today, however, an average teenager has more access to information and computing power than a typical large enterprise had a generation ago, so knowledge retention and quantitative ability have largely been automated and devalued. High value work has shifted from cognitive skills to social skills.

Consider that the journal Nature has found that the average scientific paper today has four times as many authors as one did in 1950, and the work they are doing is far more interdisciplinary and done at greater distances than in the past. So even in highly technical areas, the ability to communicate and collaborate effectively is becoming an important skill.

There are some things that a machine will never do. Machines will never strike out at a Little League game, have their hearts broken or see their children born. That makes it difficult, if not impossible, for machines to relate to humans as well as a human can. The future of work is humans collaborating with other humans to design work for machines.

— Article courtesy of the Digital Tonto blog
— Image credit: Pixabay

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Storytelling as a Strategic Asset

Building a Culture of Shared Vision

Storytelling as a Strategic Asset

GUEST POST from Chateau G Pato

In the complex, data-saturated landscape of modern business, leaders often mistake communication for connection. We blast out metrics, strategy decks, and endless transformation roadmaps, yet struggle to achieve true alignment. Why? Because facts inform, but stories inspire. As a proponent of Human-Centered Change, I believe that Storytelling is not a soft skill reserved for the marketing department; it is the single most powerful strategic asset a leader possesses for knitting together a culture of shared purpose and driving difficult, lasting innovation.

Innovation requires people to leave the certainty of the present for the ambiguity of the future. No spreadsheet can bridge that gap; only a compelling narrative can. Storytelling provides the emotional context that turns a complex 10-point plan into a simple, unforgettable journey. It is the necessary fuel for lighting your Innovation Bonfire.

The Anatomy of a Strategic Narrative

A strategic story is not just a recounting of events. It is a structured tool designed to achieve three non-negotiable goals:

1. Establishing Context and the “Why”

Every great story starts with a clear call to action or, in business, a clear articulation of the challenge (the villain) and the opportunity (the treasure). The narrative must define why the change is necessary — not just for the bottom line, but for the customer, the employee, and the broader world. This anchors the change in a higher purpose, making sacrifice feel meaningful.

2. Defining the Hero (It’s Not You)

Effective leaders understand they are the narrator, not the hero. The heroes of the transformation story must be the employees, the customers, or the front-line innovators. When you center the narrative on the team’s potential to overcome the challenge, you foster psychological ownership. People are far more likely to commit to a vision in which they play the starring role.

3. Creating Emotional Residency

Data is processed in the prefrontal cortex; stories are processed across the brain, activating areas linked to emotion and memory. A compelling narrative creates emotional residency — the feeling that the future state is already real and deeply desirable. This emotional connection is what sustains momentum when the inevitable project setbacks occur.

Case Study 1: The NASA “Janitor” Story

One of the most enduring stories of strategic vision involves President John F. Kennedy visiting NASA headquarters in 1962. During his tour, he encountered a janitor carrying a broom and simply asked him what he did at NASA. The janitor’s response was legendary: “Mr. President, I’m helping put a man on the moon.”

This is a masterclass in strategic storytelling. The janitor’s answer wasn’t a product of an operations manual or an HR training deck. It was evidence that the highest organizational mission — the “Why” — had successfully permeated every single level of the organization. The story of landing on the moon was the shared vision, and every employee understood their specific, vital role in that narrative. By anchoring the organization’s purpose in a powerful, common goal, NASA fostered an internal culture of innovation and dedication that transcended job titles and silo boundaries. The story became the operating system.

Case Study 2: Leading Change Through Artifacts

I once worked with a large, traditional manufacturing firm attempting a massive digital transformation, but the mid-level managers were entrenched in the old way of working. The strategy was too abstract — a deck of slides called “Digital 2.0.” To make the change real, we shifted to Human-Centered Storytelling through Artifacts.

Instead of presenting the “Digital 2.0” slides, the leadership team created a simple, physical Customer Pain Map — a large, visual representation highlighting the three most frustrating, friction-filled touchpoints for the customer that the current systems created. Crucially, they accompanied this map with three laminated printouts of customer complaints — actual, raw feedback taken from the call center — that were so painful they were almost impossible to read without wincing.

These artifacts became the new narrative. The purpose of the transformation instantly became clear: it wasn’t about saving money; it was about ending the customer’s pain. The team wasn’t “building Digital 2.0”; they were “fixing the red dots on the pain map.” By making the strategy tangible, emotional, and centered on the customer-as-hero, the leadership bypassed logical resistance and activated empathy, accelerating the shift in operational priorities far faster than any quarterly report could have.

“Data tells, but narrative sells. If you want people to commit to an ambiguous future, you must give them a vivid, emotional story they can step into and own.”

Building Your Storytelling Muscle

How does a leader evolve from a communicator of facts to a champion of vision through narrative? It requires deliberate practice:

  • Embrace Vulnerability: Start with your own story. Leaders who share their personal “Why” — their own journey and the failure they overcame — build trust and give permission for their team members to be vulnerable, too. This is the foundation of psychological safety.
  • Gather Front-line Narratives: The most powerful stories live on your company’s front-line. Dedicate time in town halls or team meetings to have employees share a “Hero Moment” — a recent example where they solved a problem that perfectly embodied the company’s stated values.
  • Simplify the Vision: Can you summarize your entire transformation strategy in a single, three-sentence narrative that your janitor could repeat? If not, the story is too complex. Strip away the jargon until the core conflict and resolution are crystal clear.

Your ability to narrate the future is the core competency of Human-Centered Leadership. By turning your strategic plan into a compelling, human-centric story, you move past mere communication. You create a shared reality, galvanize collective action, and unlock the massive reservoir of human potential needed to win the future.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Pixabay

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Charting Change for a Successful 2023

Charting Change for a Successful 2023

Wow! Exciting news!

From now until December 31, 2022 you can get a 50% discount on my latest best-selling book Charting Change – plus FREE shipping!

OR you can also save on the eBook!

You must go to SpringerLink for this Cyber Sale:

  • The offer is valid until December 31, 2022
  • Please use HOL50 at check-out to get your discount on books & eBooks*
  • Free shipping

Click here and enter the code HOL50 before checkout

UPDATE! — SECOND OPTION – You may not get free shipping, but the code PALHC may be another option to try if you are getting the physical book – it’s for 70% off select hardcovers

*This offer is valid for English-language Springer & Apress books and eBooks and is redeemable on link.springer.com only. Titles affected by fixed book price laws, forthcoming titles and titles temporarily not available on link.springer.com are excluded from this promotion, as are reference works, handbooks, yearbooks, encyclopedias, subscriptions, or bulk purchases. The currency in which your order will be invoiced depends on the billing address associated with the payment method used, not necessarily your home currency. Regional VAT/tax may apply. Promotional prices may change due to exchange rates. This offer is valid for individual customers only. Booksellers, book distributors, and institutions such as libraries and corporations please visit springernature.com/contact-us. This promotion does not work in combination with other discounts or gift cards.