Category Archives: Change

Five Immutable Laws of Change

Five Immutable Laws of Change

GUEST POST from Greg Satell

When I first arrived in Poland in 1997, change was all around me. It was like watching a society transform itself through time-lapse photography. Everywhere you looked, the country was shaking off decades of post-communist rust and striving to make good on the promise of 1989’s historic Round Table Agreement.

Yet it wasn’t until the fall of 2004 that I truly understood the power of change. By then, I was living in Kyiv, Ukraine and the entire country erupted in protests now known as the Orange Revolution. While Warsaw in the 90s was like rebuilding after a tornado hit, Ukraine was like being in the eye of the storm itself.

That experience led to a 15-year long journey of discovery and my book Cascades. What I found was that throughout history many have sought to create change and most have failed, but a few succeeded brilliantly. Starting out with very different challenges, philosophies and personalities, they eventually all arrived at the same principles that allowed them to prevail.

Law #1: The Status Quo Has Inertia On Its Side And Never Yields Gracefully

We tend to overvalue ideas. We think that if we have a good idea, people will immediately see its worth. Yet that’s hardly ever the case. As computer pioneer Howard Aiken put it, “Don’t worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats.”

Consider the case of Ignaz Semmelweis, who first came up with the idea that medical staff in hospitals should wash their hands before operating on patients. You would think that would be an obviously good idea. Nevertheless, he was ostracized for it and ended up dying in an insane asylum, ironically from an infection he contracted under care.

Semmelweis’s plight was tragic, but is also so amazingly common that the tendency for the establishment to reject ideas is referred to as the Semmelweis effect. In fact, while researching my book Mapping Innovation I interviewed dozens of successful innovators and I found that every single one had to overcome stiff resistance to transform their idea into something useful.

The fact that you will face opposition when protesting an authoritarian regime is obvious, but an organizational environment can be just as cutthroat. Make no mistake. If your idea is important and has real potential for impact, there will be some who will hate it and they will work to undermine it in ways that are dishonest, underhanded and deceptive.

That must be your primary design constraint.

Law #2: Small Groups, Loosely Connected, But United By Shared Purpose Drive Transformational Change

For decades, change consultants have been telling us that if we want to drive transformation, we should “start with a bang” and create a “sense of urgency” through a big communication campaign. The results have been atrocious. In fact, McKinsey has found that nearly three quarters of organizational transformations do not succeed.

It’s not hard to understand why. If there are people who are determined to see your change fail—and every significant change encounters resistance—than a “rally the troops” type of approach will only serve to alert those who oppose change that they better get started undermining it or it might actually happen.

Fortunately, science points to another way. The truth is that small groups, loosely connected, but united by a shared purpose drive transformational change. So instead of trying to convince everybody at once, identify those who are already enthusiastic about your idea, who want it to work as much as you do. Those are people you can empower to succeed and can help bring in others, who can bring in others still.

Yet identifying advocates is only part of the battle. You also need to find imbue the effort with purpose and give it meaning. Unfortunately, all too often the quest for purpose is treated as a communication exercise. It isn’t. For change to be meaningful it has to actually solve a problem that people care about.

Law #3: Revolutions Begin With a Cause, Not A Slogan

Every change effort starts with a grievance. There’s something that people don’t like and they want it to be different. In a social or political movement that may be a corrupt leader or a glaring injustice. In an organizational context it’s usually something like falling sales, unhappy customers, low employee morale or technological disruption.

Whatever the case may be, the first step toward bringing change about is understanding that getting mired in grievance won’t get you anywhere. You can’t just complain about things you don’t like, but must come up with an affirmative vision for how you would want things to be.

The best place to start is by asking yourself, “if I had the power to change anything, what would it look like?” Martin Luther King Jr.s vision for the civil rights movement was for a Beloved Community. Bill Gates’s vision for Microsoft was for a “computer on every desk and in every home.” A good vision should be aspirational, but not completely out of reach.

One of the things I found in my research is that successful change leaders don’t try to move from grievance to vision in one step, but rather identify a Keystone Change, which focuses on a clear and tangible goal, includes multiple stakeholders and paves the way for future change, to bridge the gap.

For King, the Keystone Change was voting rights. For Gates it was an easy-to-use operating system. For your vision, it will undoubtedly be something different. The salient point here is that every successful transformation I found started out with a Keystone Change, so that’s where you will want to start as well.

Law #4: Design Tactics That Mobilize People to Influence Institutions

Organizational change consultants often recommend that changemakers prepare a stakeholder map. This isn’t necessarily a bad idea, but it is somewhat inadequate because it fails to distinguish between different kinds of stakeholders. Some stakeholders are targets for mobilization and others are targets for influence.

For example, both parents and school boards are important stakeholders in education, but for very different reasons. School boards wield institutional power that can effect change, parents do not, so we mobilize parents to influence school boards, not the other way around. We need to approach constituencies and institutions in very different ways.

One of the things we’ve consistently found in our work helping organizations to drive transformational change is that leaders construe stakeholders far too narrowly. Fortunately, decades of non-violent activism have given us powerful tools for both: the Spectrum of Allies for constituencies and the Pillars of Support for institutions.

A crucial point to remember is that you can’t dictate change by mandate. You can’t overpower but must instead attract people and empower them so that they can take ownership of the cause and make it their own. You need to accept that people will do things for their own reasons, not for yours.

Most of all, remember that every action has to have a clear purpose and be directed at influencing specific institutions. So before taking any action, ask two questions: Who are we mobilizing and to influence what?

Law #5: Every Revolution Inspires Its Own Counter-Revolution

In the aftermath of the Orange Revolution we thought we had won. After all, we had stood up to the injustice of a falsified election and prevailed. Unfortunately, it didn’t turn out that way. Five years later, Viktor Yanukovych, the same man who we had taken to the streets to prevent from office, rose to power in an election that international observers deemed free and fair. His corrupt and incompetent rule would trigger a second Ukrainian Revolution.

We find a similar pattern with many of the executives we work with. They work for months—and sometimes years—to get a project off the ground. Yet just when they think they’re turning the corner, when they’ve won executive sponsorship, signed up key partners and procured enough financing to have a realistic budget, all the sudden things seem to get mired down.

That’s no accident. Just because you’ve won a few early battles doesn’t mean opposition to your idea has melted away. On the contrary, faced with the fact that change may actually succeed, those who oppose it have probably just begun to redouble their efforts to undermine it. These efforts are often not overt, but they are there and can easily derail an initiative.

That’s why every change effort must learn how to survive victory. The truth is that change is always a journey, never a particular destination, which is why lasting change is always built on common ground. That doesn’t mean that you need to win over your fiercest critics, but it does mean you need to try to empathize with their perspective.

There is a reason why some change leaders succeed while others fail. At some point everybody needs to decide whether they would rather make a point or make a difference and, in the end, those that prevail choose the latter.

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

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Change Impact Assessment – Key Metrics and KPIs

Change Impact Assessment - Key Metrics and KPIs

GUEST POST from Art Inteligencia

In an ever-evolving business landscape, embracing change is not just necessary, it is fundamental for survival and growth. But how do we ensure that the changes we make are delivering the desired impact? The key lies in identifying and measuring crucial metrics and key performance indicators (KPIs) that align with your organizational goals.

Introduction to Change Impact Assessment

Assessing the impact of change involves evaluating the outcomes of initiatives or transformations against predefined goals. Metrics and KPIs act as the quantifiable indicators that help track progress, measure success, and pinpoint areas needing adjustment. Understanding these metrics allows organizations to optimize strategies and enhance decision-making.

Key Metrics and KPIs to Consider

  • Employee Engagement: Surveys and feedback mechanisms can measure levels of employee engagement, capturing morale, motivation, and commitment post-change.
  • Customer Satisfaction: Net Promoter Score (NPS), customer retention rates, and customer feedback can provide insights into how customers respond to changes.
  • Operational Efficiency: Assess metrics related to processes, such as cycle time, error rates, or productivity levels, to determine efficiency improvements.
  • Financial Performance: Monitor revenue growth, cost savings, and return on investment (ROI) to evaluate financial impact.

Case Study 1: TechCorp’s Agile Transformation

TechCorp, a leading technology firm, embarked on an agile transformation to enhance their product development process. They focused on the following KPIs to assess impact:

  • Time to Market: Measured the reduction in time taken to launch new features.
  • Team Velocity: Tracked the increase in the number of story points completed per sprint.
  • Quality Improvements: Monitored the decrease in defect rates in released products.

The transformation led to a 30% faster time to market and a 20% reduction in product defects, significantly boosting customer satisfaction and retention.

Case Study 2: HealthCareCo’s Process Optimization

HealthCareCo implemented a change management process to improve patient care operations. Key metrics included:

  • Patient Wait Time: Reduced patient wait times by 40% through streamlined check-in processes.
  • Resource Utilization: Improved scheduling efficiency, leading to a 25% increase in resource utilization.
  • Patient Satisfaction: Enhanced satisfaction scores from improved service delivery.

The strategic focus on these metrics resulted in HealthCareCo achieving a significant competitive edge, manifesting in higher patient inflow and increased profitability.

Conclusion

Successfully assessing the impact of change is crucial for any organization wanting to stay relevant and productive. By focusing on key metrics and KPIs, leaders can gain actionable insights, drive meaningful improvements, and ensure lasting organizational growth. As we continue to innovate, the disciplined measurement of change impact remains a cornerstone of sustainable success.

Bottom line: 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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Digital Transformation and Navigating Change in the Digital Age

Digital Transformation and Navigating Change in the Digital Age

GUEST POST from Art Inteligencia

In an era where the digital landscape is perpetually evolving, organizations face the necessity of transformation to remain competitive and relevant. Digital transformation isn’t merely about adopting new technologies—it’s a holistic journey that involves shifts in culture, operations, and customer interactions. As a thought leader in human-centered change and innovation, I believe the key to successful digital transformation lies in balancing technology with the human elements of change. Let’s explore how organizations are navigating this complex journey through strategic case studies and actionable insights.

The Essence of Digital Transformation

To truly grasp digital transformation, one must understand that it encompasses much more than digitizing existing processes. It’s about re-imagining how your organization functions and interacts with both employees and customers, leveraging technologies like artificial intelligence, big data, and cloud computing. At its core, digital transformation seeks to enhance efficiency, improve customer experience, and foster innovation to create a sustainable competitive advantage.

Case Study 1: LEGO’s Strategic Resilience

Background

LEGO, the beloved brick maker, is an exemplar of how a traditional company can thrive amidst digital transformation. In the early 2000s, LEGO faced decreasing sales and was nearing the brink of financial collapse. The company needed a thorough digital overhaul to adapt to changing market dynamics and consumer expectations.

Transformation Journey

LEGO embraced digital transformation by integrating digital tools with its physical products. Recognizing the growing influence of digital play, they launched LEGO Mindstorms, a programmable robotics kit that merged software with their iconic bricks. Furthermore, LEGO ventured into the digital gaming space, creating mobile apps and video games that extended their brand universe into digital domains.

The Human Element

LEGO prioritized customer engagement throughout its transformation. By inviting fans to co-create new designs through the LEGO Ideas platform, they effectively tapped into their community’s creative potential. Internally, LEGO fostered a culture of innovation, encouraging employees to experiment and embrace new ideas. This balance of human-centric strategies with digital initiatives has helped LEGO sustain its iconic status while evolving with the times.

Case Study 2: GE’s Digital Industrial Revolution

Background

General Electric (GE), a giant in the industrial sector, embarked on a bold digital transformation strategy aiming to become the world’s leading digital industrial company. Facing the pressures of a rapidly digitizing world, GE sought to revitalize its operations and product offerings through data-driven solutions.

Transformation Journey

GE initiated the development of its Industrial Internet of Things (IIoT) platform called Predix. By equipping industrial equipment with sensors and connecting them to the cloud, GE extracted valuable insights to optimize performance, predict failures, and enhance customer value. This strategic pivot toward digital services represented a significant departure from their traditional manufacturing focus.

The Human Element

GE recognized the crucial role that organizational culture played in supporting this transformation. Leadership prioritized up-skilling employees, ensuring they were equipped with the necessary data analytics and digital skills. By fostering an agile work environment, GE empowered teams to collaborate effectively and innovate continuously. This human-centric approach enabled GE to navigate the challenges of digital transformation while capitalizing on the opportunities it presented.

Guiding Principles for Navigating Digital Transformation

  • Align Strategy with Purpose: Clearly define the purpose behind your digital transformation efforts and ensure they align with your organization’s vision and goals.
  • Engage Stakeholders: Foster open communication and engage employees, customers, and partners early in the transformation process.
  • Iterate and Adapt: Adopt an agile mindset, allowing for iterative improvements and adjustments as new insights emerge.
  • Invest in Learning: Prioritize workforce development to build the digital skills needed to embrace new technologies.
  • Focus on Customer Experience: Leverage digital capabilities to enhance customer interactions and deliver personalized experiences.

Conclusion

Digital transformation is an ongoing journey rather than a one-time project. Organizations must navigate complexities by integrating technology with human-centered strategies. By learning from successful case studies like LEGO and GE, businesses can model effective approaches to transformation that center around innovation, resilience, and sustainable growth. Embrace the digital age with clarity, purpose, and a people-first approach, and your organization will be well-positioned to thrive now and in the future.

Bottom line: 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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600 Free Innovation, Transformation and Design Quote Slides

600 Innovation, Transformation and Design Quote Slides on Innovation, Change and Design

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Contact me with your favorite innovation, design thinking, change, transformation, or design quotes and I’ll consider adding them to my library of future downloads.

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Parallels Between the 1920’s and Today Are Frightening

Parallels Between the 1920's and Today Are Frightening

GUEST POST from Greg Satell

It should be clear by now we are entering a pivotal era. We are currently undergoing four profound shifts, that include changing patterns of demographics, migration, resources and technology. The stress lines are already beginning to show, with increasing tensions over race and class as well as questions about the influence technology and institutions have over our lives.

The last time we faced anything like this kind of tumult was in the 1960s which, much like today, saw the emergence of a new generation, the Baby-Boomers, that had very different values than their predecessors. Their activism achieved significant advances for women and minorities, but also at times, led to tumult and riots.

Yet the changes we are undergoing today appear to be even more significant than we did then. In fact, you would have to go back to the 1920s to find an era that had as much potential for both prosperity and ruin. Unfortunately, it led to economic upheaval, genocide and war on a scale never seen before in world history. We need to do better this time around.

Panics, Pandemics and War

A Wall Street crisis that threatened the greater economy and led to sweeping legislation that reshaped government influence in the financial sector was prelude to both the 1920’s and the 2020’s. Both the Bankers Panic of 1907 and the Great Recession which began in 2007 resulted in landmark legislation, the Federal Reserve Act and Dodd-Frank, respectively.

Continuing in the same vein of eerie parallel, the 1918 flu epidemic killed between 20 million and 50 million people and raged for more than two years, until 1920, when it finally got under control. Much like today, there were social distancing guidelines, significant economic impacts and long-term effects on educational attainment.

Perhaps not surprisingly, there was no small amount of controversy about measures taken to control the pandemic a century ago. People were frustrated with isolation (it goes without saying that there was no Netflix in 1918). Organizations like the Anti-Mask League of San Francisco rose up in defiance.

The years leading up to the 1920s were also war-torn, with World War I ravaging Europe and the colonial order increasingly coming under pressure. Much like the “War on Terrorism,” today, the organized violence, combined with the panics and pandemics, made for an overall feeling that society was unravelling, and many began to look for a scapegoat.

Migration, Globalization and Nativism

In 1892, Ellis Island opened its doors and America became a beacon to those around the world looking for a better life. New immigrants poured in and, by 1910, almost 15% of the US population were immigrants. As the 1920s approached, the strains in society were becoming steadily more obvious and more visceral.

The differences among the newcomers aroused suspicion, perhaps best exemplified by the Sacco and Vanzetti trial, in which two apparently innocent immigrants were convicted and executed for murder. Many believed that the new arrivals brought disease, criminality and “un-American” political and religious beliefs, especially with regard to Bolshevism.

Fears began to manifest themselves in growing nativism and there were increasing calls to limit immigration. The Immigration Act of 1917 specifically targeted Asians and established a literacy test for new arrivals. The Immigration Act of 1924 established quotas which favored northern and Western Europeans over those of Southern and Eastern Europe as well as Jews. The film Birth of A Nation led to a resurgence of the Ku Klux Klan.

Scholars see many parallels between the run-up to the 1920s and today. Although nativism these days is primarily focused against muslims and immigrants from South America, the same accusations of un-American political and religious beliefs, as well as outright criminality, are spurring on a resurgence of hate groups like the Proud Boys. Attorney General Merrick Garland has pledged to make prosecuting white supremacists a top priority.

A New Era of Innovation

As Robert Gordon explained in The Rise and Fall of American Growth, prosperity in the 20th century was largely driven by two technologies, electricity and the internal combustion engine. Neither were linear or obvious. Both were first invented in the 1880’s but didn’t really begin to scale until the 1920’s.

That’s not uncommon. In fact, it takes decades for a new discovery to make a measurable impact on the world. That’s how long is needed to first identify a useful application for a technology and then for ecosystems to form and secondary technologies to arise. Electricity and internal combustions would ignite a productivity boom that would last 50 years, from roughly 1920 until 1970.

For example, as economist Paul David explained in a highly cited paper, it wasn’t the light bulb, but in allowing managers to rearrange work in factories, that electricity first had a significant effect on society. Yet it was in the 1920s that things really began to take off. Refrigerated rail cars transformed diets and labor-saving appliances such as the vacuum cleaner would eventually pave the way for women in the workforce. The first radio stations appeared, revolutionizing entertainment.

Today, although the digital revolution itself has largely been a disappointment, there’s considerable evidence that we may be entering a new era of innovation as the emphasis shifts from bits to atoms. New computing architectures, such as quantum and neuromorphic computing, as well as synthetic biology and materials science, may help to reshape the economy for decades to come.

A Return to Normalcy?

Not surprisingly, by 1920 the American people were exhausted. Technological change, cultural disruption brought about by decades of mass immigration, economic instability and war made people yearn for calmer, gentler times. Warren G. Harding’s presidential campaign touted “a return to normalcy” and people bought in.

Yet while the “Roaring Twenties” are remembered as a golden age, they set the seeds for what came later. Although the stock market boomed, lack of regulation led to the stock market crash of 1929 and the Great Depression. The harsh reparations imposed by the Treaty of Versailles made the rise of Hitler possible.

The 1930s brought upon almost unimaginable horror. Economic hardship in Europe paved the way for fascism. Failed collectivization in the Soviet Union led to massive famine and, later, Stalin’s great purges. Rising nativism, in the US and around the world, led to diminished trade as well as violence against Jews and other minorities. World War II was almost inevitable.

It would be foolish beyond belief to deny the potential of history repeating itself. Still, the past is not necessarily prologue. The 1930s were not the inevitable result of impersonal historical forces, but of choices consciously made. We could have made different ones and received the bounty of the prosperity that followed World War II without the calamity that preceded it.

What we have to come to terms with is that technology won’t save us. Markets won’t save us. Our future will be the product of the choices we make. We should endeavor to choose wisely.

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

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The Interplay Between Culture and Organizational Change

The Interplay Between Culture and Organizational Change

GUEST POST from Chateau G Pato

In today’s rapidly evolving business landscape, successful organizational change is not merely a strategic imperative but an existential necessity. At the heart of this change lies an intricate and often underappreciated force – organizational culture. Culture, the unwritten ethos of any organization, influences how change is perceived, implemented, and sustained. As a human-centered change and innovation thought leader, I aim to explore this interplay between culture and change through insightful case studies that underline this dynamic relationship.

Case Study 1: Acme Corp – The Culture Catalyst

Acme Corp, a leading player in the tech industry, was facing a critical phase. Despite strong technical capabilities, they found themselves lagging in innovation and customer satisfaction. The root cause was traced back to the company’s culture, which was mired in risk aversion and departmental silos, stifling cross-functional collaboration and creativity.

Recognizing this, the leadership embarked on a cultural transformation journey aimed at fostering a more agile and collaborative environment. Here’s how they did it:

  • Leadership as Culture Champions: Leaders demonstrated the desired behaviors, championing open communication and empowering employees to take calculated risks.
  • Redefining Values and Behaviors: They revisited their core values, aligning them with the new strategic vision, and communicated these through storytelling and workshops.
  • Structural Adjustments: The company restructured teams to promote cross-functional collaboration and introduced dynamic project teams to address complex challenges.

Within two years, Acme Corp experienced a marked increase in innovation output and customer satisfaction scores. By making culture a focal point, they were able to unlock the full potential of their organizational change initiatives.

Case Study 2: HealthCo – Navigating Cultural Resistance

HealthCo, a large healthcare provider, embarked on a digital transformation journey aimed at enhancing patient care and operational efficiency. However, the initiative faced significant resistance rooted in a deeply ingrained hierarchical culture. Employees were accustomed to rigid procedures and hesitant to embrace new technologies.

HealthCo’s approach to overcoming this challenge involved:

  • Inclusive Change Design: Involving employees at all levels in designing the change process, which provided a sense of ownership and reduced resistance.
  • Targeted Training Programs: Comprehensive training sessions were held to equip staff with the necessary skills and confidence to use new digital tools effectively.
  • Recognition and Feedback Loops: Establishing mechanisms for recognizing adaptation efforts and fostering an ongoing feedback culture to continually refine the processes.

While the transformation at HealthCo took longer than anticipated, the focus on gradually reshaping their culture ensured a sustainable, long-term embrace of digital practices, ultimately leading to improved patient outcomes.

Conclusion

The interplay between culture and organizational change is both intricate and profound. As seen through the experiences of Acme Corp and HealthCo, understanding and harnessing cultural dynamics is crucial to effective change management. Leaders must recognize that culture is not merely an abstract concept but a tangible influence on strategy and execution. By proactively aligning culture with change objectives, organizations can drive innovation, enhance performance, and thrive in a fast-paced world.

Whether you are in the nascent stages of a transformation or managing ongoing change, always remember: culture is the lens through which change is viewed and valued. Cultivate it wisely, and it becomes your greatest ally in transformation efforts.

Bottom line: 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 Five Whys of Organizational Structure

Re-Designing the Operating Model

LAST UPDATED: November 12, 2025 at 12:36PM

The Five Whys of Organizational Structure

GUEST POST from Chateau G Pato

Leaders often embark on organizational restructuring with good intentions, aiming for agility or efficiency. Yet, most reorganizations fail not because the new chart is wrong, but because they confuse the structure (the boxes and lines on the chart) with the operating model (the mechanism by which value is created and flows through the organization). They end up playing musical chairs with reporting lines, only to find the same dysfunctions resurface within six months because, as the saying goes, structure always eats strategy for breakfast.

To implement true, sustainable change, we must apply a human-centered design approach to the organization itself. We must stop asking “What is the best structure?” and start asking “Why does our current structure fail to deliver customer value?” This requires the rigorous diagnostic tool of the Five Whys of Organizational Structure.

This process moves beyond superficial complaints and identifies the root cause of systemic friction, revealing whether the true problem is structure, process, metrics, or talent.

The Five Whys Diagnostic for Organizational Structure

The Five Whys approach, adapted from quality management, forces a deep dive into organizational friction points. Start with a symptom (e.g., “Product launches are slow”) and keep asking “Why?” until you reach the systemic cause.

Symptom: Product launches are slow.

  • Why 1: Why are product launches slow?Answer: Decisions on feature prioritization require sign-off from three different VP-level silos (Marketing, Engineering, Sales).
  • Why 2: Why do three VPs need to sign off?Answer: Because each VP controls a separate, competing budget and their compensation metrics are siloed (e.g., Sales gets paid on volume, Engineering on uptime, Marketing on lead generation). No one is measured on time-to-market.
  • Why 3: Why are their budgets and metrics siloed?Answer: Because the underlying financial reporting structure treats these functions as distinct cost centers, reinforcing the idea that they are running competing businesses rather than collaborative value streams.
  • Why 4: Why does the financial reporting structure reinforce competing cost centers?Answer: Because the entire Operating Model is designed for cost optimization and risk aversion, reflecting the stable, high-margin market we existed in 20 years ago, not the fast-paced, low-margin, high-innovation market of today.
  • Why 5: Why is the Operating Model still based on outdated assumptions?Answer: Because the executive team has never aligned on the **value streams** necessary to win today, and instead defers to the historical hierarchy to avoid conflict. The root cause is a failure of executive alignment and strategic imagination, not the org chart itself.

The Three Levers of Operating Model Design

Once the Five Whys reveal the systemic cause, the Human-Centered Change leader must pull the right lever. Re-designing the Operating Model means adjusting three interconnected elements—none of which is the org chart alone:

1. Value Stream Mapping (The Flow)

This replaces the traditional functional view with a flow view. Instead of organizing around departments (Marketing, IT, Operations), organization must happen around the customer’s journey and the **Value Stream** that delivers it (e.g., “Customer Acquisition,” “New Product Development,” “Service Resolution”). The structure is built around the work and the customer, not the people.

2. Metrics and Incentives (The Gravity)

As seen in the diagnostic, siloed metrics are the gravity that pulls teams apart. The new structure must be supported by shared, end-to-end metrics that measure the success of the Value Stream, not the individual function. If an IT team is measured on uptime, but the product team is measured on speed-to-market, the teams will always conflict. Aligning incentives is the force that pulls the organization together.

3. Decision Rights (The Speed)

The new model must explicitly define who has the authority to decide. Most friction comes from ambiguity, with decisions perpetually escalating upward. Adopting a decentralized model means pushing decision-making authority—and the associated accountability—down to the teams that have the most direct customer knowledge. This shifts the executive role from approver to architect of the system and monitor of guardrails, significantly boosting organizational speed.

Case Study 1: The Banking Giant and the Value Stream Shift

Challenge: Slow Digital Onboarding

A major international bank suffered from a glacial pace in launching new digital banking features. The Five Whys revealed that the root cause was the structural handoff: moving a new feature from Digital Banking (measured on UX) to IT (measured on stability) to Compliance (measured on risk avoidance). The customer suffered through slow, fragmented releases.

Operating Model Intervention:

The bank moved from a functional structure to a Value Stream Model. They created permanent, cross-functional “Customer Onboarding Pods,” each containing members from Digital Banking, IT, and Compliance. The pods were measured on one metric: time-to-launch for new features and reduction in customer abandonment rate. The executive leadership formally delegated the majority of compliance sign-offs to the senior Compliance member within the pod. This shift from sequential handoffs to parallel collaboration reduced the average time-to-market for simple features from eight weeks to two weeks, proving the power of aligning structure around the customer’s journey.

Case Study 2: The Manufacturing Firm and the Decentralized Decision Rights

Challenge: Centralized Command Crippling Local Innovation

A diversified global manufacturer experienced lagging innovation outside its headquarters. Every request for investment in local market-specific product modifications (e.g., smaller packaging for an emerging market) had to be approved by a centralized, U.S.-based committee. The Five Whys revealed that the central committee’s reluctance stemmed from a 20-year-old policy of standardizing inventory to reduce risk, even if it sacrificed growth opportunities.

Operating Model Intervention:

The firm did not eliminate the central committee, but they radically redefined its Decision Rights. The new model delegated 80% of all investment decisions under $500,000 to regional General Managers (GMs), provided the GMs adhered to three non-negotiable Guardrails (e.g., a minimum return on investment threshold, a maximum safety risk score, and a maximum working capital usage). The central committee’s role shifted from saying “yes” or “no” to designing and monitoring the guardrails. This empowered local GMs, leading to a 30% increase in locally-relevant product launches within the first year by pushing accountability and speed to the edge of the organization.

Conclusion: Structure is a Change Enabler

The Five Whys teaches us that the org chart is usually just a symptom of a deeper, systemic failure within the operating model. True organizational change starts with strategic integrity—a clear, executive-aligned decision on how value will be created, measured, and protected.

The process of re-designing the operating model is not a simple HR exercise; it is the ultimate act of Human-Centered Change. It forces us to remove the structural friction that frustrates employees and delays customer value, ultimately turning resistance into momentum.

“If your structure is slowing down your strategy, your structure is the wrong strategy. Reorganizing without redesigning your metrics and decision rights is an act of self-deception.”

Your first step to diagnosing your organization: Gather five key employees from different functional silos and collectively apply the Five Whys to the most painful, friction-filled process in your business.

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: Unsplash

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Top 100 Innovation and Transformation Articles of 2021

Top 100 Innovation and Transformation Articles of 2021

2021 marked the re-birth of my original Blogging Innovation blog as a new blog called Human-Centered Change and Innovation.

Many of you may know that Blogging Innovation grew into the world’s most popular global innovation community before being re-branded as InnovationExcellence.com and being ultimately sold to DisruptorLeague.com.

Thanks to an outpouring of support I’ve ignited the fuse of this new multiple author blog around the topics of human-centered change, innovation, transformation and design.

I feel blessed that the global innovation and change professional communities have responded with a growing roster of contributing authors and more than 15,000 newsletter subscribers.

To celebrate we’ve pulled together the Top 100 Innovation and Transformation Articles of 2021 from our archive of over 700 articles on these topics.

We do some other rankings too.

We just published the Top 40 Innovation Bloggers of 2021 and as the volume of this blog grows we may bring back a monthly ranking to complement this annual one.

But enough delay, here are the 100 most popular innovation and transformation posts of 2021.

Did your favorite make the cut?

1. All Leadership is Change Leadership – by Randy Pennington

2. Next Generation Loyalty – Part One – by Braden Kelley

3. Visual Project Charter™ – 35″ x 56″ (Poster Size) and JPG for Online Whiteboarding – by Braden Kelley

4. Where Do Innovation Strategies Usually Go Wrong? – by Jesse Nieminen

5. Black Friday Shows No Loyalty – by Braden Kelley

6. The Fail Fast Fallacy – by Rachel Audige

7. Top 40 Innovation Bloggers of 2020 – by Braden Kelley

8. What is Human-Centered Change? – by Braden Kelley

9. 10 Clever Ways to Stop Ideation Bullies from Hogging Your Brainstorming Sessions – by Howard Tiersky

10. 50 Cognitive Biases Reference – Free Download – by Braden Kelley

11. Free Customer Experience Maturity Assessment – by Braden Kelley

12. The Human-Centered Change Methodology – by Braden Kelley

13. Innovation vs. Invention vs. Creativity – by Braden Kelley

14. America Drops Out of the Ten Most Innovative Countries – by Braden Kelley

15. The One Movie All Electric Car Designers Should Watch – by Braden Kelley

16. Nine Innovation Roles – by Braden Kelley

17. No Regret Decisions: The First Steps of Leading through Hyper-Change – by Phil Buckley

18. Free Innovation Maturity Assessment – by Braden Kelley

19. Myths About Physician Entrepreneurs – by Arlen Meyers

20. Human-Centered Change – Free Tools – by Braden Kelley

21. The Five Keys to Successful Change – by Braden Kelley

22. Discipline Has a Role in Innovation – by Jesse Nieminen

23. Advances in the Management of Worthless Meeting Syndrome – by Arlen Meyers

24. 550 Quote Posters – by Braden Kelley

25. The Jobs-to-be-Done Playbook – by Braden Kelley

26. We Need a More Biological View of Technology – by Greg Satell

27. Free Human-Centered Change Tools – by Braden Kelley

28. Stoking Your Innovation Bonfire – by Braden Kelley

29. The Pyramid of Results, Motivation and Ability – by Braden Kelley

30. Experience Thinking – The Next Evolution for Design Thinking – by Anthony Mills


Build a common language of innovation on your team


31. Scaling Innovation – The What, Why, and How – by Jesse Nieminen

32. Charting Change – by Braden Kelley

33. The Experiment Canvas™ – 35″ x 56″ (Poster Size) – by Braden Kelley

34. To Change the World You Must First Learn Something About It – by Greg Satell

35. Digital Transformation Virtual Office Hours – Session One – by Braden Kelley

36. Lead Innovation, Don’t Manage It – by Arlen Meyers

37. Are doctors wasting their time on entrepreneurship? – by Arlen Meyers

38. What is design thinking? – EPISODE FIVE – Ask the Consultant – by Braden Kelley

39. Zoom Tutorial – Amazing New PowerPoint Background Feature – by Braden Kelley

40. COVID-19 Presents an Opportunity to Create an Innovation Culture – by Pete Foley

41. Increasing Organizational Agility – by Braden Kelley

42. Innovation Requires Going Fast, Slow and Meta – by Greg Satell

43. Remote Project Management – The Visual Project Charter™ – by Braden Kelley

44. Is innovation everyone’s job? – by Braden Kelley

45. What is your level of Innovation Maturity? – by Braden Kelley

46. Flaws in the Crawl Walk Run Methodology – by Braden Kelley

47. Innovation Teams Do Not Innovate – by Janet Sernack

48. We’re Disrupting People Instead of Industries Now – by Greg Satell

49. Don’t Forget to Innovate the Customer Experience – by Braden Kelley

50. Change Management Needs to Change – by Greg Satell


Accelerate your change and transformation success


51. Everyone hates to fail, why do you? – by Janet Sernack

52. Going with the Flow – by John Bessant

53. Can You Be TOO Strategic? – by Howard Tiersky

54. Competing in a New Era of Innovation – by Greg Satell

55. Fast Company is Wrong – by Braden Kelley

56. A New Age Of Innovation and Our Next Steps – by Greg Satell

57. Avoid the Addition Bias – by Paul Sloane

58. Visualizing Project Planning Success – by Braden Kelley

59. Innovation Ecosystems and Information Rheology – by Arlen Meyers

60. Rise of the Evangelist – by Braden Kelley

61. Creating 21st Century Transformational Learning – by Janet Sernack

62. Re-Skilling and Upskilling People & Teams – by Janet Sernack

63. Creating a Movement that Drives Transformational Change – by Braden Kelley

64. How to Scale Your Culture – by Arlen Meyers

65. A Trigger Strategy for Driving Radical, Transformational Change – by Greg Satell

66. Human-Centered Innovation Toolkit – by Braden Kelley

67. You Must Play and Experiment to Create and Innovate – by Janet Sernack

68. Managing Both the Present and the Future – by Janet Sernack

69. Why Change Failure Occurs – by Greg Satell

70. Developing a Future-Fitness Focus – by Janet Sernack

71. Using Intuition to Drive Innovation Success – by Braden Kelley

72. The Academic Intrapreneur Dossier – by Arlen Meyers

73. The Rise of Employee Relationship Management (ERM) – by Braden Kelley

74. An Example of Successful Alchemy – by John Bessant

75. The Dreaded Perfect Entrepreneur – by Arlen Meyers

76. Should intrapreneurs really ask for forgiveness and not permission? – by Arlen Meyers

77. Don’t Stop Thinking About Tomorrow – by Robert B. Tucker

78. Importance of Long-Term Innovation – by Greg Satell

79. Co-creating Future-fit Organizations – by Janet Sernack

80. What you should learn from the Google Health failure – by Arlen Meyers


Get the Change Planning Toolkit


81. Teaching to Win the 4th Industrial Revolution – by Arlen Meyers

82. Catalysing Change Through Innovation Teams – by Janet Sernack

83. Innovation and the Scientific Method – by Jesse Nieminen

84. Being Too Focused on the Test is Dangerous – by Arlen Meyers

85. Architecting the Organization for Change – by Braden Kelley

86. Healthcare Jugaad Innovation of a 17-Year-Old – by Braden Kelley

87. New Capability Mapping Tools for Business Architects – by Braden Kelley

88. How can I create continuous innovation in my organization? – EPISODE TWO – Ask the Consultant – by Braden Kelley

89. Thank You for Your Thinkers50 Nominations – by Braden Kelley

90. Preparing for Organizational Transformation in a Post-COVID World – by Greg Satell

91. Why Change is Hard – by Braden Kelley

92. Building a Better Change Communication Plan – by Braden Kelley

93. What is digital transformation? – EPISODE THREE – Ask the Consultant – by Braden Kelley

94. ACMP Standard for Change Management® Visualization – 35″ x 56″ (Poster Size) – Association of Change Management Professionals – by Braden Kelley

95. Borrow an Idea from a Different Field – by Paul Sloane

96. How to Go From Nail It to Scale It – by Arlen Meyers

97. Innovation in the time of Covid – Satisfycing Organizations – by Pete Foley

98. Sickcare Culture of Conformity versus a Culture of Creativity – by Arlen Meyers

99. Start 2021 with a Free Innovation Audit (Now in Portuguese or English) – by Braden Kelley

100. Outsmarting Those Who Want to Kill Change – by Greg Satell

Curious which article just missed the cut? Well, here it is just for fun:

101. Why so much medical technoskepticism? – by Arlen Meyers

These are the Top 100 innovation and transformation articles of 2021 based on the number of page views. If your favorite Human-Centered Change & Innovation article didn’t make the cut, then send a tweet to @innovate and maybe we’ll consider doing a People’s Choice List for 2021.

If you’re not familiar with Human-Centered Change & Innovation, we publish 1-5 new articles every week focused on human-centered change, innovation, transformation and design insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook feed or on Twitter or LinkedIn too!

Editor’s Note: Human-Centered Change & Innovation is open to contributions from any and all the innovation & transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have a valuable insight to share with everyone for the greater good. If you’d like to contribute, contact us.

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Why Most Corporate Mindset Programs Are a Waste of Time

What to Focus on Instead

Why Most Corporate Mindset Programs Are a Waste of Time

GUEST POST from Alain Thys

You may know that I’m hunting for a Transformation Algorithm

Its goal is to help us move beyond the >70% failure rate of corporate transformations and create transformative experiences for employees, customers and society. Ambitious? Moi?

To get there, I’m walking around the problem.

Looking at it from all perspectives (Japan style). So without claiming expertise in any domain, I’m blending systems thinking with neuroscience, behavioral psychology, philosophy and my background in experience design. There’s even a little math (I couldn’t resist .

It’s a work in progress, but I’m getting there.

Meanwhile, here are some more thoughts as I put together the puzzle. The article starts a bit gloomy, but it ends more upbeat… I promise.

It’s all work in progress in which I’m still improving both language and content.
So don’t hold back on comments, compliments or corrections.

These days, every company wants to see a ‘mindset change’.

People need to be customer-centric. Digital. Agile. Sustainable. Innovative. More in love with the color blue. After all, the consultants, executive trainers and software vendors say this is the future. Not to mention Mark’s metaverse:

To make this happen, organizations unleash a barrage of initiatives

They do enthusiastic presentations. Introduce new KPIs and dashboards. Launch internal communication programs and training academies. Create new journey maps. Introduce AI. Get some fancy software.

Some even call me (obviously the smartest ones ).

At first, the signs are good.

After all, with enough pressure, you can get water to go uphill. Also, any decent third-party consultant or vendor will make sure that employees leave those workshops with a smile and some quick wins. Especially those that show progress in pretty graphs and numbers.

But then – one by one – the ‘old ways’ assert themselves

They raise dozens of practical, budgetary, emotional and IT concerns which are all valid and require the change program to be calibrated. After all, leaders need to be pragmatic. These thousand slight cuts erode the big transformative vision and expectations get lowered. Things might even become as they were.

#endofmindsetchange?

What if we were aiming at the wrong target?

If you look up mindset in a dictionary, you find it is a mental attitude or inclination. The combined set of assumptions, methods and notions with which each of us approaches problems and the world at large (our perspective). Something rooted in the way we view the world and our perception of reality (our paradigm).

This means that every mindset change is in fact a change in perspective or paradigm.

Let me illustrate with a consumer electronics company that wanted to go from product- to customer-centric value propositions. Digging deep, we found that from the engineer’s perspective, the requested mindset change meant letting go of their long held belief that as the world’s best technical experts they knew how to make the best products on the planet (and had the awards and accolades to prove it).

Instead, they had to embrace that the customer knew better what great looked like and their opinion didn’t matter as much as they thought.

If you’ve worked all your life to become that smart and esteemed technical expert, this is an existential pill to swallow. Especially if the only rationale from the top is that “our Net Promoter Score should improve”.

These shifts in perspective lurk in any transformation

Being agile means seeing that we live in a chaotic world where we can never really be sure of our best next step. True sustainability means accepting that there are limits to growth, also ours. Going digital means letting go of activities we have long considered to be uniquely human (ours?). Innovation requires unlearning the orthodoxies and beliefs we may have held since childhood. And so on.

For some people, these steps may be easy. But for most, they can challenge the core of who they are (even if they may not admit this to themselves).

Ignoring this deeper reality can doom your transformation from the start.

If the new KPIs, processes, systems and incentives you introduce do not match the worldview of the people you target, they will reject them. Sometimes they rebel. Sometimes they stand in the way without realizing it themselves. Either way, your culture will eat your strategy for breakfast, lunch and dinner.

So what to do instead?

Frustration

If you want mindset change, focus on the paradigm shift first.

Before you expect people to approach problems differently (mindset), work on the way they perceive these problems and their context. Clearly describe the required paradigm shift in a FROM… TO… statement and make it as compelling as possible. All while acknowledging the uncomfortable bits head on.

Then, give people opportunities to embrace this new narrative through experiential programs (remember: the old brain doesn’t do PowerPoint).

Once they see the world with fresh eyes, the mindset and changes will follow.

Or as my ultimate change guru Antoine de Saint-Exupéry used to say: “if you want to build a ship, don’t drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea.”

But always remember that your perception as a leader is flawed too.

When you say: ‘I want a mindset change’, you are actually saying: ‘I want you to see the world as I do’.

This is often a big ask, as chances are you live in a world that is more affluent, more educated and more informed (I won’t mention diversity … oops, I did). You probably have a different education, live in a different social media bubble and even shop in different stores. You may even have the freedom to make your own decisions.

Seeing life your way, may not be as easy for someone who has grown up, works and lives in a different context (no value judgment here, just observation).

Inversely, unless you’ve done their jobs and lived their lives, you will have difficulties to imagine the world through the eyes of your people. No matter how you try.

So before you talk about mindset change.

Understand and start from your people’s perspective and then expand it in the direction you propose. And if the gap between the two is too big, consider adapting your strategy.

Perhaps your world view and sense of possibility need an update too.

Image Credits: Pixabay

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Empowering Employees During Times of Change

Empowering Employees During Times of Change

GUEST POST from Art Inteligencia

Change is inevitable in any organization, whether it’s the implementation of new technologies, restructuring, or evolving market dynamics. While change is necessary for growth and progress, it can often lead to uncertainty and resistance within the workforce. As a thought leader in human-centered change and innovation, I believe the key to successful transformation lies in empowering employees. This article explores the strategies and real-world examples of organizations that have successfully empowered their employees during times of change.

The Power of Employee Empowerment

Empowering employees essentially means giving them the tools, confidence, and autonomy to navigate change and contribute to organizational goals. When employees feel empowered, they are more engaged, resilient, and committed to the company’s vision. They become active participants rather than passive recipients of change.

Case Study 1: Tech Innovators Inc.

Tech Innovators Inc., a leading software development firm, underwent a major change when they decided to shift to a fully agile workflow. While the management understood the benefits of this transition, they knew it would be a significant shift for their employees accustomed to traditional project management methods.

To empower their workforce, Tech Innovators Inc. implemented a comprehensive training program that included workshops on agile methodologies and provided resources such as online courses. Employees were encouraged to take ownership of their learning journeys and apply new methods in pilot projects. In addition, management created cross-functional teams to foster collaboration and autonomy, allowing team members to self-organize and make decisions about task execution.

The result was a seamless transition where employees felt confident in their new roles and responsibilities. The organization saw increased productivity, innovation, and job satisfaction as employees leveraged their skills effectively in a supportive environment.

Case Study 2: Green Earth Industries

Green Earth Industries, a company focused on sustainable energy production, faced an industry paradigm shift due to evolving environmental regulations. To address this, they needed to implement new technologies and processes rapidly.

Understanding the potential for resistance, Green Earth Industries prioritized open
communication with their workforce. They held town hall meetings where leadership discussed the necessity of change and invited feedback and suggestions from employees at all levels. By involving employees in the decision-making process and acknowledging their input, the company built trust and buy-in for the changes.

Furthermore, Green Earth Industries initiated a mentorship program that paired experienced employees with those new to the industry. This initiative allowed for a smooth knowledge  transfer that not only facilitated adaptation to new processes but also fostered a sense of community and shared purpose.

As a result, Green Earth Industries successfully transitioned to compliance with new regulations without major disruptions, and employee morale remained high.

Strategies for Empowering Employees

From these case studies, several key strategies emerge for empowering employees during times of change:

  • Education and Training: Invest in learning opportunities that equip employees
    with the skills necessary to thrive in new environments.
  • Transparent Communication: Keep employees informed about the reasons for
    change and the benefits it brings. Encourage open dialogue and feedback.
  • Inclusive Involvement: Involve employees in the change process, valuing their
    insights and contributions to create a sense of ownership.
  • Supportive Leadership: Encourage leadership to act as coaches and mentors,
    providing guidance and support to navigate through change.
  • Cultivate a Collaborative Culture: Foster teamwork and cross-functional
    collaborations to leverage diverse skills and perspectives.

Change does not have to be a daunting process. Empowering employees through effective strategies ensures not only the success of organizational transformations but also helps build a resilient, engaged, and innovative workforce ready to tackle future challenges.

Let us continue to prioritize human-centered approaches in change management, ensuring that our employees are not just surviving but thriving in a dynamic world.

This article focuses on empowering employees during times of change. It provides an introduction to the topic, explores the power of employee empowerment, illustrates two case studies, and suggests strategies for organizations to empower their workforce effectively.

Bottom line: 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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