Category Archives: Change

Navigating Change in the 21st Century for Digital Transformation

Navigating Change in the 21st Century for Digital Transformation

GUEST POST from Art Inteligencia

In the dawn of the 21st century, digital transformation has become a buzzword that promises to revolutionize industries, enhance customer experiences, and drive business growth. However, digital transformation is more than just adopting the latest technology; it’s a fundamental shift in how organizations operate and deliver value to customers. As a thought leader in human-centered change and innovation, I, Braden Kelley, explore how organizations can successfully navigate this complex landscape.

Understanding Digital Transformation

Digital transformation involves leveraging digital technologies to create new—or modify existing—business processes, culture, and customer experiences to meet changing business and market requirements. It’s a multi-faceted process that requires embracing change across all levels of an organization.

The goal is to integrate digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s not just about upgrading old technology or adopting new ones but reshaping business processes and thinking differently to attract and retain customers.

Challenges in Digital Transformation

Despite its potential benefits, digital transformation poses several challenges. Organizations often face resistance to change from employees, legacy systems, and outdated processes that can hinder progress. Additionally, a lack of clear strategy, insufficient skills, and the risk of cybersecurity threats can complicate the transformation journey.

Case Study 1: Netflix

The Challenge

In the late 1990s, Netflix began as a DVD rental service, competing with established giants like Blockbuster. As digital streaming technology emerged, the company faced the challenge of adapting or becoming obsolete in the rapidly changing entertainment landscape.

The Transformation

Netflix successfully navigated this challenging environment by embracing digital transformation. The company shifted from DVD rentals to a streaming platform, investing heavily in technology to deliver an unparalleled user experience. By collecting and analyzing user data, Netflix could offer personalized recommendations, making it a leader in the entertainment industry.

Key Takeaways

Netflix’s transformation highlights the importance of staying ahead of technological trends and being willing to pivot business models. Adopting a data-driven approach enabled Netflix to craft a more personalized user experience, enhancing customer satisfaction and loyalty.

Embracing Change: A Human-Centered Approach

A successful digital transformation requires more than just deploying new technologies. It’s about changing organizational culture and embracing a human-centered approach. This involves considering the needs, pain points, and potential resistance of employees and customers.

Start by fostering a culture of innovation and continuous improvement. Encourage employees to be part of the transformation journey by providing training and resources to develop digital skills. Engage with customers to gain insights into their behavior and expectations, and use this feedback to inform your digital strategy.

Leadership is crucial in driving change. Leaders should communicate a clear vision of the benefits of digital transformation and involve all stakeholders in the process. Transparency, collaboration, and open communication can help reduce resistance and build a shared vision for success.

Case Study 2: General Electric (GE)

The Challenge

General Electric, a history-rich conglomerate, recognized the advent of digital technology as both a threat and an opportunity. Operating in sectors like energy and aviation, GE faced the challenge of integrating digital technology to improve operational efficiency and develop innovative solutions.

The Transformation

GE embarked on a digital transformation journey by building its Industrial Internet, focusing on merging big data analytics with industrial engineering. The company developed Predix, a cloud-based platform for creating customized applications tailored to specific industrial needs. This move transformed GE’s operations, enabling proactive maintenance, reducing downtime, and improving overall efficiency across its business units.

Key Takeaways

GE’s transformation underscores the significance of integrating digital tools with traditional expertise. By adopting a platform-based approach and investing in talent and technology, GE positioned itself as a digital industrial leader. The commitment to innovation and continuous learning fostered a culture ready to adapt to future changes.

The Path Forward

As we navigate the 21st century, digital transformation will continue to evolve, presenting new opportunities and challenges. Organizations must be agile, adaptable, and innovative to remain competitive in this dynamic environment.

Focus on building the right team with a combination of digital skills and industry experience. Encourage a mindset of lifelong learning and continuous improvement. Moreover, prioritize cybersecurity and data privacy to build trust with customers and partners.

In conclusion, the journey of digital transformation is not a one-size-fits-all solution. It’s an ongoing process that requires strategic planning, cultural change, and a customer-centric approach. By embracing change and leveraging digital technologies effectively, organizations can unlock new possibilities and thrive in the digital age.

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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Balancing Stability and Change in Leadership

Balancing Stability and Change in Leadership

GUEST POST from Art Inteligencia

In today’s dynamic business environment, leadership requires not just vision but also the wisdom to navigate the ongoing dance between stability and change. Leaders who can skillfully balance these forces are able to steer their organizations towards sustainable success. This delicate balancing act involves fostering an environment that values innovation while ensuring that the core stability of the organization is never compromised.

The Significance of Stability and Change

Stability is crucial for creating a sense of security and predictability within an organization. It involves setting clear goals, maintaining reliable processes, and upholding values that have long-term relevance. Conversely, change is necessary for growth, improvement, and adaptation to shifting market conditions. The real challenge for leaders lies in cultivating a culture where both stability and change coexist harmoniously.

Case Study 1: IBM’s Transformation Journey

Background

IBM, a pioneer in the technology industry, is an iconic example of how a company can balance stability and change. Throughout its history, IBM has managed to reinvent itself multiple times to survive market disruptions and technological advancements.

Leadership Strategy

In the early 1990s, IBM faced significant challenges due to technological shifts. Under the leadership of CEO Lou Gerstner, the company underwent a fundamental transformation. Gerstner focused on stabilizing operations by cutting costs and streamlining business units, but he also championed change by steering IBM towards services and software, areas that became cornerstones for future growth.

Outcome

Gerstner’s approach preserved IBM’s core capabilities while opening new avenues for competitiveness, ultimately stabilizing their financial standing and allowing the company to evolve with industry trends. This balance of stabilization and innovation positioned IBM as a leader in the tech industry once more.

Case Study 2: Netflix’s Agile Adaptation

Background

Netflix, originally a DVD rental service, illustrates the power of balancing stability with a constant penchant for change. As the industry shifted towards digital streaming, Netflix recognized that maintaining existing stability would not suffice for future growth.

Leadership Strategy

Under the guidance of CEO Reed Hastings, Netflix moved away from its successful mail-order model towards digital streaming. While ensuring stability in delivering high-quality content, Netflix embraced radical change by investing heavily in original content and international expansion.

Outcome

By successfully balancing operational stability with innovative change, Netflix transformed into a major streaming powerhouse, redefining the industry and setting standards for competitors. This agile transition has helped Netflix maintain its competitive edge and expand its global presence.

Strategies for Leaders to Balance Stability and Change

As demonstrated by IBM and Netflix, effective leaders employ several strategies to balance stability and change. Here are some key approaches:

  • Empower Innovation: Encourage a culture of innovation where employees can experiment and take calculated risks without fear of failure.
  • Maintain Core Values: Hold steadfast to organizational values that provide a stable foundation while adapting practices based on them.
  • Feedback Loops: Implement feedback mechanisms that allow for quick adjustments in line with internal insights and external market changes.
  • Strategic Change Management: Develop structured processes for managing change that align with customer needs and market demands.
  • Continuous Learning: Promote learning and development as central to both maintaining stability and facilitating growth.

Conclusion

The most successful leaders skillfully orchestrate stability and change, creating organizations capable of thriving in the face of uncertainty. By following strategic practices and learning from the successes of companies like IBM and Netflix, leaders can guide their organizations toward sustainable future success. In the world of business, where change is the only constant, the challenge for leaders is not only to foresee disruption but also to embrace and integrate it into the very fabric of organizational life.

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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The Power of the Humility Principle

The Power of the Humility Principle

GUEST POST from Greg Satell

In 1929, just before the stock market crash, Louis Bamberger and his sister, Caroline Bamberger Fuld, sold their department store in Newark to R.H. Macy and Company for $25 million ($343 million in 2015 dollars). Grateful to the people of Newark for their support, they planned to endow a medical college in that city.

Things didn’t turn out that way. They were convinced by Abraham Flexner to create the Institute for Advanced Study instead, and to build it in Princeton. It would soon be the home of Albert Einstein and would become a beacon for scientists fleeing Europe, who would prove critical to winning the war and making America a technological superpower.

What always struck me about the story is that the Bambergers achieved their greatest impact not through greater knowledge or accomplishment, but humility. They could have stuck to their initial plan, but because they were willing to see its flaws and support another’s dream, they were able to change the world. We rarely understand the full impact of our actions.

Meritocracy and Humiliation

In 1940, James Conant, the President of Harvard, gave a talk at the University of California that was soon republished in The Atlantic magazine. Entitled, “Education for a Classless Society,” it championed the idea of social mobility based on merit, rather than privilege being handed down through inheritance.

Today, Conant’s idea has become inseparably intertwined with the American dream and repeated with almost metronomic regularity by politicians seeking office, parents raising children and educators trying to motivate students. We’re told, “You can be anything you want to” and “You can make it if you try.”

Yet as Michael Sandel points out in The Tyranny of Merit, this sorting system has had an insidious effect on our culture. Those who are deemed worthy get all the benefits that society has to offer. Those that are not are not only left behind, but are seen as “takers” rather than “makers” and therefore undeserving of even basic things like access to health and child care.

The unlucky have come to be seen as culpable and those more fortunate consider themselves beholden to no one. Many in America, especially the two thirds of the country who do not have a college degree, are not only poor, but humiliated, creating opportunities for populist politicians. Elites, for their part, wonder what’s the matter with Kansas?.

Citizens United, The Rise of Regulation and the Decline of Competitive Markets

In 2009, a conservative organization called Citizens United brought a suit against the Federal Elections Commission which argued that limits on corporate political donations violated the free speech clause of the First Amendment. Its success at the Supreme Court led to the rise of Super PACs and nearly unlimited political spending.

At first, things went according to plan. Studies have found that the ruling did indeed help Republicans, especially in their effort to win statehouses in 2010 and take control of redistricting. However, the decision also opened the door to massive funding of liberal causes and Democrats handily outraised Republicans in the 2020 election.

Yet perhaps the most perverse effect of the Citizens United decision has been how it has fed the rise of lobbying expenditures and regulation. When you allow business to invest unlimited amounts of money to influence government, it should be surprising that a significant portion of that money is used to restrict competition.

It’s hard to escape the irony. An organization that bills itself as dedicated supporting free enterprise and “restoring our government to citizens’ control” has not only led to a weakening of free markets but is also deeply unpopular. Pretty much the opposite of what was intended.

Income Inequality and Healthcare Costs

Research from the Pew Foundation finds that inequality is not only at record levels in the United States, but significantly higher than other developed nations. That should be cause for alarm in itself, but there is also growing evidence that there may be a reflexive relationship between income inequality and healthcare costs.

First, let’s start with the obvious. Income inequality has been shown to adversely affect mental and physical health. Part of the reason this is so is that people at the low end of income spectrum suffer from adverse social comparisons, which lead to depression and anxiety. However, evidence also suggests that even higher income people suffer from fear of losing their position, which has larger implications in a more unequal society.

There’s significant evidence that causality runs in the opposite direction. Because most Americans have insurance plans with high deductibles, we’re often getting hit with big out-of-pocket bills. Researchers have found that these expenses are having a measurable impact on income inequality.

Put simply, we’re becoming so worried about money that it’s affecting our physical and mental health and the costs associated with that deterioration in our health that it’s making us poor, creating a vicious cycle that’s bankrupting our mind, body and spirit.

We Need to Think Less Like Engineers and More Like Gardeners

James Conant was a scientist and an educator, not an economist or a politician. Nevertheless, his ideas have deeply contributed to America’s political zeitgeist. In much the same way, the activists at Citizens United probably didn’t imagine that achieving their goals would undermine their aims. Few medical specialists are aware of the economic impacts of health policy.

We usually take action to solve specific, narrow problems within a domain in which we have acquired some expertise. Often, we train for years to develop that expertise and years more to gain the experience needed to plan and implement an effective solution. During all that time, we rarely stop to consider the impact of our work outside our chosen field.

In a sense, we’ve been trained to think like engineers. We identify problems to be solved, reduce those problems to a limited set of variables, develop metrics to evaluate those variables and develop a solution that is optimized for those metrics. Unfortunately, the solutions we create often create even more problems.

That’s the essence of the humility principle. We rarely fully understand the consequences of the actions we take. We live in a world not of linear cause and effect, but complex ecosystems in which even our best laid plans touch of a complex web of ripple effects.

It’s time for us to take a more biological view in which we think less like engineers and more like gardeners that grow and nurture ecosystems. Instead of assuming we can design perfect solutions, we need to take a more Bayesian approach and make our systems less imperfect over time, fertilizing and pruning as we go.

A good place to start is to, like the Bambergers, think less of ourselves and open up to the mysteries of a universe we do not understand, to people who possess knowledge we do not and to the potential of the future as a collaborative project.

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

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Change Agents as Catalysts for Organizational Transformation

Change Agents as Catalysts for Organizational Transformation

GUEST POST from Art Inteligencia

Welcome to the fast-paced world of business, where the only constant is change. In today’s hyper-competitive and ever-evolving landscape, organizations must continuously adapt to survive and thrive. Enter the change agents: the unsung heroes of the corporate world. These dynamic individuals not only embrace change but also drive it, transforming organizations from the inside out. But who are these change agents, and what makes them the catalysts for organizational transformation?

Who is a Change Agent?

Imagine a change agent as a magical blend of strategist, psychologist, and cheerleader, all rolled into one. They’re the people who light the fires of transformation, helping organizations pivot away from outdated practices and embrace new opportunities. Change agents can emerge from any level within an organization, but they share key characteristics:

  • Visionary Thinking: They see the big picture and understand how individual change initiatives align with organizational goals.
  • Resilience: Change agents persist in the face of resistance and setbacks.
  • Influence: They possess the ability to inspire and rally others to join the transformation journey.
  • Empathy: Understanding people’s fears and aspirations allows them to tailor their approach to effectively facilitate change.

The Role of Change Agents

Change agents are instrumental in shaping a flexible, resilient organization that can respond to market demands. Here’s how they contribute to successful transformations:

  • Identifying Opportunities: They spot areas ripe for improvement and innovation, ensuring continuous growth.
  • Driving Engagement: By involving employees in the transformation process, they foster a culture of buy-in and collaboration.
  • Implementing Strategy: Change agents translate high-level strategies into actionable plans and initiatives.
  • Managing Resistance: They navigate organizational politics and address concerns to mitigate resistance to change.

Case Study 1: Transforming Retail Operations

Our first case study takes us to the bustling world of retail. ABC Retail, a national chain of department stores, faced declining sales due to the rise of online shopping. Enter Jessica, an internal change agent with a flair for innovation and a passion for retail. Jessica quickly identified an opportunity to enhance the in-store experience and integrate online offerings.

She spearheaded an initiative to redesign store layouts, incorporating interactive kiosks and personalized shopping experiences. Jessica also championed the use of data analytics to better understand customer preferences. Thanks to her efforts, ABC Retail experienced a resurgence in foot traffic and diversified their revenue streams.

Case Study 2: Innovating Healthcare Delivery

Our second case study explores the world of healthcare. HealthyTech, a midsized hospital, grappled with inefficiencies in patient care delivery. Mark, a nurse with a keen interest in technology, transformed into an agent of change when he proposed the implementation of a digital patient management system.

Through collaboration with IT and medical staff, Mark led the development and rollout of a mobile app that streamlined patient scheduling, communication, and record-keeping. His initiative not only improved operational efficiency but also enhanced patient satisfaction and care quality. HealthyTech now stands as a beacon of modern healthcare delivery.

Embracing Change: The Way Forward

As these case studies illustrate, change agents are vital to the success of organizational transformations. They help bridge the gap between strategy and execution, driving initiatives that align with business objectives and foster a culture of innovation.

To maximize the impact of change agents, organizations must:

  • Provide Training and Resources: Equip change agents with the skills and tools they need to succeed.
  • Recognize and Reward Contributions: Celebrate the achievements of change agents to encourage ongoing innovation.
  • Cultivate a Supportive Environment: Create an organizational culture where change is welcomed and encouraged.

Conclusion

The role of change agents in organizational transformation cannot be overstated. They are the catalysts that spark innovation and drive change, ensuring that organizations not only keep pace with the demands of today but are also poised to seize the opportunities of tomorrow. So, here’s to the change agents—may their courage and creativity continue to transform the business world for the better!

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: Pexels

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Building an Adaptable Organization with Change Resilience

Building an Adaptable Organization with Change Resilience

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, organizations must cultivate the ability to adapt swiftly to change while remaining resilient. This adaptability is not just about surviving change but thriving through it. Leadership strategies and cultural transformation play crucial roles in shaping an adaptable organization. This article explores practical approaches and showcases case studies of organizations that have successfully integrated change resilience into their DNA.

Leadership Strategies: Guiding Through Change

Effective leadership is the cornerstone of any successful change management strategy. Leaders must not only drive change but also inspire their teams to embrace it. A key strategy involves developing change resilience among leaders themselves. This involves training them to manage uncertainty and equip their teams with the tools to navigate challenges.

A more in-depth exploration of how to develop these skills can be found in my article on Building Resilience in Change Leaders.

Case Study 1: Tech Innovators, Inc.

Tech Innovators, Inc. is a prime example of how leadership strategies can foster an adaptable organization. Facing the threat of obsolescence in a competitive market, the company embarked on a comprehensive leadership development program. This program focused on agility, equipping leaders with the skills to manage change proactively.

The result? A cultural shift that permeated the organization, enabling teams to innovate rapidly and respond to market shifts with unparalleled agility. Leadership became a collective endeavor, tapping into diverse insights to drive strategic decisions. By championing resilience at every level, Tech Innovators, Inc. fortified itself against future disruptions.

Cultural Transformation: Embedding Resilience

Beyond leadership, cultural transformation is critical in building an adaptable organization. A resilient culture is characterized by open communication, psychological safety, and a shared vision of change as an opportunity.

Embedding resilience into the company culture starts by nurturing it among employees. Encouraging employees to view change as a gateway to growth instills a sense of empowerment. For more insights on nurturing resilience in employees, consider reading Nurturing Resilience in Employees During Periods of Change.

Case Study 2: Global Retail Giant

The journey of a global retail giant illustrates the transformative impact of reshaping organizational culture. Confronted with an unpredictable market and a rapidly evolving consumer landscape, this retail giant prioritized building a culture of resilience.

By investing in continuous learning and fostering a collaborative environment, the company empowered its employees to spearhead innovation. Regular feedback loops and transparent communication bridged the gap between leadership and staff, creating a unified front poised to adapt seamlessly.

The outcome was a rejuvenated workforce, capable not only of managing change but leveraging it strategically to gain a competitive edge. The organization’s adaptive culture became a magnet for top talent, further reinforcing its market position.

Conclusion

In an era defined by volatility, building an adaptable organization requires a dual focus on leadership strategies and cultural transformation. As demonstrated by the experiences of Tech Innovators, Inc. and the global retail giant, resilience can be developed at both individual and organizational levels, positioning companies to thrive amidst change.

The path to becoming an adaptable organization is not without challenges. However, with the right strategies and cultural backbone, organizations can transform adversity into opportunity—emerging stronger and more resilient in the face of an uncertain future.

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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How to Free Ourselves of Conspiracy Theories

How to Free Ourselves of Conspiracy Theories

GUEST POST from Greg Satell

If you think about it, postal carriers should be a little bit creepy. If someone told you that an agent of the federal government would come to your house everyday with access to information about places you shop, businesses you transact with and people you know well enough to trade holiday cards with, it might cause you some alarm.

Yet we don’t find postal carriers creepy. In fact, despite vigorous efforts to malign the Postal Service, we trust it far more than most institutions. The truth is that we don’t conjure up conspiracy theories to explain the everyday and mundane, but some far off yonder which we cannot clearly designate, yet find threatening nonetheless.

The function conspiracy theories play is to explain things that we don’t understand and feel out of our control. So it shouldn’t be surprising that the age of Covid has spawned a myriad of crazy, dangerous notions. What we need to come to terms with is that the real problem plaguing society is a basic lack of trust and that is where the battle for truth must be fought.

The Visceral Abstract

One of the frustrating things about modern life is that we experience so little of it directly. As Leonard Read pointed out in his 1966 essay, I, Pencil, the manufacture of even the simplest modern object is beyond the reach of a single person. Today, people depend on technologies to get through their day, but have only the barest notion of how they function.

The truth is that we live in a world of the visceral abstract, where strange theories govern our everyday lives. People may not care much, or even believe in, Einstein’s theory of special relativity, but if GPS satellites aren’t calibrated to take it into account, the delivery man won’t be able to bring their dinner. In much the same way, the Coronavirus will mutate, and the most infectious variant will dominate, no matter what you think of Darwin’s theory.

As Francis Fukuyama explains in his recent book, Identity, the pace of change and disruption in modern society demands that we make choices about who we are. Faced with so much we don’t understand there is no small amount of appeal to rejecting the unknown in favor of simpler explanations in the form of conspiracy theories.

Populists often say that they want to “take our country back,” but what they really mean is that they want to take our existence back. They want to banish the fabulous yonder for something closer and more tangible. They offer safe harbor and, for people who feel stranded on the rocks, with the sea crashing over them, the attraction can be undeniable.

Conforming To Local Majorities

We all have a certain capacity to believe in an idea to or to partake in an action. We may be highly skeptical or wildly enthusiastic, depending on our innate preferences and previous experiences, but history shows that individuals—and, in fact, entire societies—are vulnerable to suggestion.

We are, for example, highly affected by what those around us think. In fact, a series of famous experiments first performed in the 1950’s, and confirmed many times since then, showed that we will conform to the opinions of those around us even if they are obviously wrong. More recent research has found that the effect extends to three degrees of social distance.

The effect is then multiplied by our tendency to be tribal, even when the source of division is arbitrary. For example, in a study where young children were randomly assigned to a red or a blue group, they liked pictures of other kids who wore t-shirts that reflected their own group better. In another study of adults that were randomly assigned to “leopards” and “tigers,” fMRI studies noted hostility to outgroup members regardless of their race.

So it isn’t surprising that people will be more willing to believe, say, a conspiracy theory floated by a high school friend than information from a government agency or recognized news source. If the majority of people around you believe something, you’re likely to believe it too, because that’s what’s close and tangible.

During the pandemic, when everybody is stuck inside, the effect of local majorities, especially in isolated online communities, is significantly more powerful than usual. These communities may be, in fact, at a long distance geographically, but in mental and social space, they make up a large part of our immediate environment.

The Psychology Of Delusion

Once we are exposed to an idea and influenced by those around us to be sympathetic to it, two cognitive biases begin to kick in. The first, called availability bias, is our tendency overweight information that is most available to us. For example, reading or hearing about traffic fatalities on the news will do little to affect our driving habits, but when we pass a bad accident on the road, we’ll naturally slow down and become more cautious.

It’s amazing how powerful availability bias can be. Researchers have found that it even affects how investors react to analysts reports, how corporations invest in research and how jurors evaluate witness testimony. Other studies find that availability bias affects medical judgments. Even in matters of great import, we tend not to look very far for information.

Again, it’s easy to see how the pandemic combined with the Internet can make us more susceptible. Stuck at home, we spend more time engaging with communities online, where we tend to be surrounded by likeminded people. Their opinion will seem more real to us than those of “experts” from outside our community, whether that community is virtual or not.

This effect is then combined with confirmation bias, our tendency to seek out information that supports our prior beliefs and reject contrary evidence. Those who fall prey to conspiracy theories often report spending a lot of time searching the Internet and watching YouTube videos, which confirm and extend their discussions with “fellow travelers.”

Rebuilding Trust

Once we become aware of where conspiracy theories come from, it becomes easier to understand why we tend to be far more suspicious of, say, public officials or medical experts than our postal carriers. We tend to trust those we see as being part of our communities and are suspicious of those we see as outsiders.

Unfortunately, the stresses on our society will only intensify over the next decade as we undergo major shifts in technology, resources, migration and demography. These changes will inevitably hit some segments of society harder than others and, it’s safe to assume, those left behind will likely feel that society has forsaken them.

We need to learn how to rebuild trust, even with our enemies and the best—perhaps the only way—to do that is by focusing on shared values. We might, for example, disagree on exactly how our criminal justice system should function, but we can all agree that everyone has the right to live in a safe community. We may not agree on the specifics of a “Green New Deal,” but can all see the importance of investing in our rural communities and small towns.

Most of all, we need to rebuild a sense of connection. Fortunately, network science tells us that it takes relatively few connections to drastically reduce social distance. Trust is personal, not political. It can’t be legislated or mandated but arises out of shared experience that contributes to the collective well-being. Like our mail carriers, our institutions must be seen to be competently serving us and having our best interests at heart.

In the final analysis, our problem is not one of information, but that of basic good will. The antidote is not stronger arguments, but more capable public service.

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

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Organizational Change Lessons from Successful Transformations

Organizational Change Lessons from Successful Transformations

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, the ability to adapt and transform is an essential requirement for organizations striving for continued success. However, organizational change is not merely about deploying new technologies or adjusting strategies; it’s about fostering a culture of adaptability and continuous improvement. This article explores this concept further, drawing lessons from notable success stories in organizational change.

Case Study 1: Netflix – Transforming Entertainment

One of the most compelling examples of successful organizational change is Netflix. Originally established as a DVD rental service, Netflix reimagined its business model to become a leading streaming service and a formidable player in content production. This transformation was driven by a forward-thinking leadership team and a company culture that embraced change.

Key to Netflix’s success was its commitment to innovation. By fostering an internal culture that valued agility and customer-focused strategy, Netflix was able to pivot and expand its offerings in response to market demands. The company’s internal processes were designed to support rapid iteration and experimentation, allowing it to respond promptly to consumer behavior shifts.

This transformation teaches us that successful organizational change requires:

  • A Visionary Leadership: Leaders must anticipate market trends and guide their organizations toward future opportunities.
  • Cultural Flexibility: An organizational culture that accepts failure as a learning opportunity encourages innovation and growth.

Case Study 2: IBM – Reinventing Through Innovation

IBM, a company with more than a century of history, has undergone several transformations to maintain its relevance in the competitive landscape. Its most recent transition from a conventional hardware and services company to a modern cloud computing and artificial intelligence giant is particularly noteworthy. IBM’s restructuring involved investing in new technologies, strategic acquisitions, and forming partnerships with leading tech companies.

The restructuring process was challenging but crucial for IBM’s survival. By focusing on building a robust technological infrastructure and upskilling its workforce, IBM managed to transition smoothly into new business domains. Additionally, the company prioritized customer-centric solutions, ensuring their innovations aligned with client needs.

IBM’s change initiative highlights several lessons:

  • Strategic Investment: Investing in emerging technologies and aligning them with company goals is vital for long-term success.
  • Talent Development: Empowering and reskilling employees can drive successful transitions.

Core Lessons in Organizational Transformation

The narratives of Netflix and IBM emphasize key lessons pertinent to organizational change:

  • Adaptability: Organizations must be agile, constantly learning and evolving to maintain their competitive edge.
  • Innovation: A culture that embraces creativity and innovation can navigate uncertainties more effectively.
  • Leadership: Visionary and committed leadership is crucial in inspiring change and driving transformation.
  • Employee Engagement: Involving employees in the change process fosters buy-in and facilitates smoother transitions.

To delve deeper into the principles and practices that lead to effective organizational change, you can explore more on Change Leadership and Embracing Uncertainty and its dynamics in detail.

The Human Element in Change

One aspect that often goes unnoticed in change management is the human element. Change can trigger emotional responses and resistance among employees. Therefore, cultivating an inclusive atmosphere that acknowledges these emotions is essential. Communication and employee involvement lay the groundwork for minimizing resistance and ensuring everyone is aligned with the organizational objectives.

Empowering employees through transparent communication and by offering opportunities for active participation can lead to greater acceptance and a smoother transition process. It’s crucial to consider the human side of change to support effective transformations.

Conclusion

Organizational change is a multifaceted journey that demands strategic vision, cultural adaptation, and inclusive engagement practices. Successful transformations, as demonstrated by Netflix and IBM, are built on the foundation of continuous innovation, investment in talent, and visionary leadership. By integrating these core lessons, organizations can navigate the complexities of change more effectively and ensure sustainable growth.

For additional insights on nurturing innovative practices within your organization, download Braden Kelley’s whitepaper titled Five Ways to Make Your Innovation Culture Smell Better.

In conclusion, the future of organizational success hinges on the ability to adapt and transform. By learning from successful transformations, organizations can develop the resilience necessary to thrive in an ever-evolving world.

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: Pexels

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Four Paradigm Shifts Defining Our Next Decade

Four Paradigm Shifts Defining Our Next Decade

GUEST POST from Greg Satell

The statistician George Box pointed out that “all models are wrong, but some are useful.” He meant that we create models as simplified representations of reality. They are merely tools and should never be mistaken for reality itself. Unfortunately, that’s much easier to say than it is to practice.

All too often, models take on the illusion of reality. We are trained, first at school and then on the job, to use models to make decisions. Most of the time the models are close enough to reality that we don’t really notice the discrepancy. Other times we notice that the model is off, but we dismiss it an unusual case or anomaly.

Yet the real world is always changing. So, models tend to get more wrong—and hence less useful— over time. Eventually, the once-useful models become misleading and we undergo a paradigm shift. Today, as we experience a period of enormous change, we need to unlearn old models and replace them with new ones. They too will be wrong, but hopefully useful.

1. From Value Chains to Ecosystems

The dominant view of strategy in the 20th century was based on Michael Porter’s ideas about competitive advantage. In essence, he argued that the key to long-term success was to dominate the value chain by maximizing bargaining power among suppliers, customers, new market entrants and substitute goods.

Yet markets today are much faster, more interconnected and more complex than they were when Porter formulated his ideas about competitive advantage. In a fast-moving information economy, firms increasingly depend on ecosystems to compete. That drastically changes the game.

Ecosystems are nonlinear and complex. Power emanates from the center instead of at the top of a value chain. You move to the center by connecting out. In a networked-driven world you need to continually widen and deepen links to other stakeholders within the ecosystem. That’s how you gain access to resources like talent, technology and information.

Consider the mobility revolution that is disrupting the auto industry. In an earlier age, the auto giants would have sought to use their market clout to dominate nascent players in an attempt to preserve their position. Now however, they are creating partnerships with tech companies, startups and others in order to innovate more effectively in the space.

Even more impressive has been the global effort to fight the Covid crisis, in which unprecedented collaboration between governments, large pharmaceutical companies, innovative startups and academic scientists developed a life-saving vaccine in record time. Similar, albeit fledgling, efforts have been going on for years.

2. From Maximizing Bargaining Power to Building Resilience and Trust

Porter’s ideas dominated thinking in corporate strategy for decades, yet they had a fatal flaw that wasn’t always obvious. Thinking in terms of value chains is viable when technology is relatively static, but when the marketplace is rapidly evolving it can get you locked out of important ecosystems and greatly diminish your ability to compete.

A report from Accenture Strategy analyzing over 7000 firms found that trust itself is increasingly becoming a competitive advantage. When evaluating competitive agility, it found trust “disproportionately impacts revenue and EBITDA.” The truth is that to compete effectively you need to build deep bonds of trust throughout a complex ecosystem of stakeholders.

If you are always looking to maximize your bargaining power, you are likely to cut yourself off from important information and capabilities that you will need to effectively compete. That’s one reason that the Business Roundtable, an influential group of almost 200 CEOs of America’s largest companies, issued a statement that discarded the old notion that the purpose of a business is solely to create shareholder value in favor of a broader stakeholder approach.

It is through forging bonds of trust that a business can build resiliency. If a company is seen as trustworthy, then it can draw on the goodwill of customers, employees, partners and communities to help it overcome a disruptive event. If, on the other hand, it is seen as greedy and predatory, everything becomes much harder. We need to learn how to rebuild trust.

3. From Vertical Agility to Horizontal Agility

For the past 50 years, innovation has largely been driven by our ability to cram more transistors onto a silicon wafer. That’s what’s allowed us to double the power of our technology every 18 months or so and led to the continuous flow of new products and services streaming out of innovative organizations.

Perhaps not surprisingly, over the past few decades agility has become a defining competitive attribute. Because the fundamentals of digital technology have been so well understood, much of the value shifted to applications, rather than fundamental technologies and things like design and user experience. Yet that will change in the years ahead.

Over the past few decades, agility has largely meant moving faster and faster down a predetermined path. Over the next few decades, however, agility will take on a new meaning: the ability to explore multiple domains at once and combine them into something that produces value. We’ll need to learn how to go slower to deliver much larger impacts.

Over the next few decades we will struggle to adapt to a post-digital age and we will need to rethink old notions about agility. To win in this new era of innovation we will have to do far more than just move fast and break things.

4. From Bits to Atoms

In The Rise and Fall of American Growth, economist Robert Gordon argues that the rapid productivity growth the US experienced from 1920-1970 is largely a thing of the past. While there may be short spurts of growth, like there was in the late 90’s, we’re not likely to see a sustained period of progress anytime soon.

Among the reasons he gives is that, while earlier innovations such as electricity and the internal combustion engine had broad implications, the impact of digital technology has been amazingly narrow. The evidence bears this out. We see, to paraphrase Robert Solow, digital technology just about everywhere except in the productivity statistics.

Still, there are indications that the future will look very different than the past. Digital technology is beginning to power new areas in the physical world, such as synthetic biology and materials science, that are already having a profound impact on such high potential fields as medical research renewable energy and manufacturing.

It is all too easy to get caught up in old paradigms. When progress is powered by chip performance and the increased capabilities of computer software, we tend to judge the future by those same standards. What we often miss is that paradigms shift and the challenges—and opportunities—of the future are likely to be vastly different.

In an age of disruption, the only viable strategy is to adapt.

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

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A How To Guide for Overcoming Procrastination

A How To Guide for Overcoming Procrastination

GUEST POST from Janet Sernack

I often wonder why some people procrastinate by delaying, postponing, or avoiding solving problems, or by withdrawing from making smart decisions, taking calculated risks, or taking intelligent actions?

  • Why do they become paralyzed and unable to take the actions necessary to solve some of their key problems?
  • Why do they often resist making even the most necessary changes to support the delivery of their creative solutions?
  • Why do so many also avoid taking personal responsibility and being accountable towards achieving their desired outcomes and goals?
  • Why do people disengage, even when the situation or problem may be critical to their own, their teams, or their organizations success?

Despite knowing that there may be a range of negative consequences for procrastinating, involving a crippling, overwhelming, and paralyzing combination of reactive responses?

Which then typically impacts negatively on people’s self-efficacy and self-belief, self-worth, and self-esteem and diminishes their motivation, disengages them and immobilizes their ability to take the necessary actions and as a result, spiral downwards?

How do we help people overcome procrastination?

  • Why is this important?

It seems that procrastination is a challenge we and many others have faced at one point or another, where we struggle with being indecisive, delaying, ignoring, avoiding taking actions to initiate, progress, or completing tasks that may be important to us, as well as on issues that really matter to us, our teams, partners and organizations.

Ultimately leading to failures, and an inability to mitigate risks, or be creative and inventive and decreasing possibilities for innovation and increasing engagement, productivity, and improving performance.

Also potentially leading to feelings of loss, insecurity, inadequacy, frustration, disengagement, and depression and in extreme cases, client, project failures and job losses, and even burnout!

Why do people procrastinate?

  • The need for security and self-protection is the key root causes of procrastination

Procrastination is most often a self-protection strategy, a way of defending ourselves, rooted in fears that result in anxieties around feeling unsafe, vulnerable, and being judged or punished, especially in times of uncertainty, unpredictability, uncontrollability, and when feeling overwhelmed.

In most organizational contexts, procrastinators are likely to respond be risk-averse by:

  • Being apprehensive and even withdrawing energetically (dis-engaging) from people as well as from the creative conversation, coupled with a lack of commitment to the change process or towards achieving the agreed goal (lacking conviction and being worried about the future).
  • Not showing up and spending a lot of time and energy zigzagging around and away from what they feel is consuming them or making them feel threatened or uncomfortable (avoidance).
  • Blaming external people and factors for not “allowing” them to participate or succeed (time, workload, culture, or environment).
  • Denying that achieving the goal really matters, bringing up excuses, and reasonable reasons about why having the goal doesn’t really matter to them, as well as a willingness to take risks (non-committal).
  • Being fearful of the future, dreading what might be the range of possible negative and overwhelming events and situations (pessimism).

What are the key signals of an effective procrastinator?

The first step in noticing the key signals is to tune into our own, and peoples’ effective avoidance default pattern as to what is really going on from a systemic perspective.

By paying deep attention, and being non -judgmental and non evaluative to the range of signals outlined as follows:

Behavior Signals

  • “Playing it safe” or “being nice” by being unwilling to challenge and be challenged.
  • Resisting any change efforts, disengaging, and being reluctant to disclose and share authentically what is really going on for them.
  • Unwillingness to take risks.
  • Shying away from engaging with their partners, families, colleagues, group activities, and from having candid conversations.
  • Being overtly indecisive and non-committal.

Neurological State Signals

  • Increased anxiety and “attention deficit” syndrome.
  • Low motivation and self-confidence.
  • Diminished ability to self-regulate and self-control.
  • Diminished self-efficacy and self-concept.
  • Onslaught of the creeping doubts and the imposter syndrome.

Extrinsic or Environmental Signals Occur When Fearful of Perception of Others

  • Performing poorly, making mistakes, or failing.
  • Fearful of doing too well, or in being too successful.
  • Losing control, status, or role.
  • Looking stupid, or being disapproved of.
  • Avoids conflict situations.

Fear of Success Signals

Some of us are unconsciously afraid of success, because irrationally we secretly believe that we are not worthy of it and don’t deserve it, and then self-sabotage our chances of success!

  • Being shy, introverted, and uncomfortable in the spotlight.
  • Being publicly successful brings social or emotional isolation.
  • Alienating peers as a result of achievement.
  • People may think you’re self-promoting.
  • Being perceived as a “tall poppy”.
  • Believing that success may not be all it’s cracked up to be, and that it might change you, but not for the better.

Fear of Failure Signals

Some people’s motivation to avoid failure often exceeds their motivation to succeed, which can cause them to unconsciously sabotage their chances of success.

  • Cognitive biases or irrational beliefs act as filters distorting reality.
  • Past pains felt from being vulnerable, abandoned, punished, blamed, or shamed in front of others, or of being disapproved of, envied, rejected, or disliked by others.
  • Fearful of looking “bad” or incompetent, in front of others.
  • Feeling threatened, a sense of danger or potential punishment, causing them to move away (freeze, fight, take flight) from confronting dangerous, painful situations as threatening.

Overcoming Procrastination Tips 

  • Co-create a safe, compassionate, and collaborative relationship

As most people find safety in procrastination at some point in time, to be an effective leader, manager, or coach in these situations, it’s important to be empathic and compassionate and “work with” where they may be coming from in terms of underlying self-beliefs:

  • “I don’t want to get hurt”.
  • “I don’t want to expose myself to risk”.

As well as respond constructively to their thoughts about how others may see them including:

  • Lacking confidence,
  • Hesitant.

Noticing how they may perceive themselves:

  • “I am nowhere near as good as I should be”.
  • “I am inadequate.”

Then by paying deep attention, and being intentional in co-creating a safe creative, and collaborative conversation that builds safety, permission, rapport, and trust by being:

  • Gentle and non-threatening, being both kind and courageous,
  • Aware of being both too direct, fast, and too laid back.
  • Providing gentle guiding, assurance, and lots of patience.
  • Focused on encouraging engagement, commitment, and confidence towards setting and achieving the desired outcome.

Ultimately enabling and equipping people to overcome procrastination creates openings and thresholds for learning and growth, to become the best person, to themselves and others, they can possibly be, and achieve the changes they wish to make in the world.

Find out about The Coach for Innovators Certified Program, a collaborative, intimate, and deep personalized innovation coaching and learning program, supported by a global group of peers over 8-weeks, starting May 2022. It is a blended learning program that will give you a deep understanding of the language, principles, and applications of a human-centered approach to innovation, within your unique context. Find out more.

Contact us now at mailto:janet@imaginenation.com.au to find out how we can partner with you to learn, adapt, and grow your business, team and organisation through disruption.

Image credit: Unsplash

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Real Change Requires a Majority

Real Change Requires a Majority

GUEST POST from Greg Satell

“Don’t worry about people stealing your ideas,” said the computing pioneer Howard Aiken. “If your ideas are any good, you’ll have to ram them down people’s throats,” and truer words were scarcely ever spoken. We tend to think that if an idea has merit, everybody will immediately recognize its value, but that’s almost never true.

Ignaz Semmelweis, quite famously, advocated for hand washing at hospitals, but was ostracized, not celebrated, for it and would himself die of an infection contracted under care before his idea caught on. William Coley discovered cancer immunotherapy over a century ago, but was thought by many to be some sort of a quack.

Good ideas fail all the time. Part of the problem is that people who believe passionately in an idea feel compelled to win over the skeptics. That’s almost always a mistake. The truth is that the difference between success or failure often has nothing to do with the inherent value of an idea, but where you choose to start and the best place to start, is with a majority.

The Fundamental Fallacy of Change Management

Pundits tell us that change is inevitable, so we need to create a sense of urgency about it. They say we must “innovate or die,” because those who don’t “get it” are dinosaurs and, much like their reptilian brethren, they are bound to die an awful, painful death once the asteroid hits (and, the implication is, they will deserve it too).

History, however, shows us exactly the opposite. People like Ignaz Semmelweis and William Colely had truly groundbreaking ideas that could have saved millions of lives if they were adopted earlier. Nevertheless, those in the medical establishment that thwarted their efforts thrived while the innovators themselves suffered greatly professionally and personally.

It’s not just the medical profession either. Take a short tour throughout history and it becomes clear that unjust and incompetent regimes can have remarkable staking power. The status quo always has inertia on its side and rarely yields its power gracefully. A bad idea can last for decades, or centuries even.

The fundamental fallacy of change management is that it is essentially a communication exercise, that change fails because people don’t understand it well enough and if you explain it to them in sufficiently powerful terms, they will embrace it. The truth is that change fails because others oppose it in ways that are devious, underhanded and deceptive.

That needs to be your primary design constraint.

The Power of Local Majorities

Merely telling someone about change, no matter how artfully, is unlikely to be effective, but that doesn’t mean that people are immune to persuasion. In fact, there are decades of studies that show that people naturally conform to ideas that are widely held by others around them.

Consider this famous series of conformity experiments conducted by Solomon Asch in the 1950s. The design of the study was simple, but ingenious. Asch merely showed a group of people pairs of cards like these:

Asch Experiment Greg Satell

Each person in the group was asked to match the line on the left with the line of the same length on the right. However, there was a catch: almost everyone in the room was a confederate who gave the wrong answer. When it came to the real subjects’ turn to answer, most conformed to the majority opinion, even when it was obviously wrong.

Clearly, most ideas are not nearly that unambiguous, which is why, despite having made breakthrough discoveries, Semmelweis and Coley had so much trouble getting traction for them. The majority of the medical establishment was resistant and Semmelweis and Coley found themselves in the minority. Majorities routinely push back against minorities.

The Threshold Model of Collective Action

One important aspect of Asch’s conformity studies was that the results were far from uniform. A quarter of the subjects never conformed, some always did, and others were somewhere in the middle. We all have different thresholds to adopt an idea or to partake in an action, based on factors like confidence in our ability to make judgments and expected punishments or rewards for getting it right or wrong.

The sociologist Mark Granovetter addressed this issue with his threshold model of collective behavior. As a thought experiment, he asks us to imagine a diverse group of people milling around in a square. Some are natural deviants, always ready to start trouble, most are susceptible to provocation in varying degrees and the remainder is made up of unusually solid citizens, almost never engaging in antisocial behavior.

Threshold Model Greg Satell

You can see a graphic representation of how the model plays out above. In the example on the left, a miscreant throws a rock and breaks a window. That’s all it takes for his friend next to him to start and then others with slightly higher thresholds join in as well. Before you know it, a full-scale riot ensues.

The example on the right is slightly different. After the first few troublemakers start, there is no one around with a low enough threshold to join in. Rather than the contagion spreading, it fizzles out, the three miscreants are isolated and little note is made of the incident. Although the groups are outwardly similar, a slight change in conformity thresholds can make a big difference.

It’s a relatively simplistic example, but through another concept Granovetter developed called the strength of weak ties, we can see how it can lead to large scale change in the final graphic below as an idea moves from group to group.

From Thresholds to Cascades Greg Satell

The top cluster is identical to the one in the first example and a local majority forms. However, no cluster is an island because people tend to belong to multiple groups. For example, we form relationships with people in our neighborhood, from work, religious communities and so on. So an idea that saturates one group soon spreads to others.

Notice how the exposure to multiple groups can help overcome higher thresholds of resistance, because of the influence emanating from other groups through weak links. When you start with a majority, even if it is a small, local majority, an idea can gain traction, move from cluster to cluster and almost infinitely scale.

As I explain in my book, Cascades, there is significant evidence that this is how ideas actually do spread in the real world. The crucial point here is that it makes a really big difference where you choose to start. If you start with people who are enthusiastic about your idea, you are much more likely to succeed than if you choose people who are resistant.

So rather than trying to convince everybody at once, you are much better of identifying people who are likeminded and working on a Keystone Change that can for them basis of a larger transformation.

Working to Attract, Rather Than Overpower

When we look at the stories of Semmelweis and Coley through the prism of local majorities and resistance thresholds, we can see the mistake that they made. Having made truly breakthrough discoveries, they naturally assumed that others would see value in them. Instead, they ran headlong into a highly resistant majority and got squashed.

In my work helping leaders drive organizational transformations, I see this happen all the time. People who believe passionately in an idea naturally assume that others will “see the light.” Not surprisingly, they want to move quickly and overpower any resistance. This is especially true if they feel that they have institutional power behind them.

Yet that is almost always a mistake. There is a reason why the vast majority of organizational transformations fail, even though they typically have big budgets and C-Suite support behind them. To drive meaningful, lasting change you can’t rely on overpowering resistance, but must work to attract and empower genuine support.

That means you need to start with a majority. In the beginning, that may mean starting with a small, local majority— say, three people in a room of five. You can always expand a majority out, but once you find yourself in the minority, you will immediately feel pushback. The secret to overcoming resistance to an idea and driving it forward is understanding that you get to choose where to start.

Revolutionary change always starts with the art of choosing wisely.

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

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