Tag Archives: change management

Time is a Flat Circle

Jamie Dimon’s Comments on AI Just Proved It

Time is a Flat Circle

GUEST POST from Robyn Bolton


“Time is a flat circle.  Everything we have done or will do we will do over and over and over and over again – forever.” –- Rusty Cohle, played by Matthew McConaughey, in True Detective

For the whole of human existence, we have created new things with no idea if, when, or how they will affect humanity, society, or business.  New things can be a distraction, sucking up time and money and offering nothing in return.  Or they can be a bridge to a better future.

As a leader, it’s your job to figure out which things are a bridge (i.e., innovation) and which things suck (i.e., shiny objects).

Innovation is a flat circle

The concept of eternal recurrence, that time repeats itself in an infinite loop, was first taught by Pythagoras (of Pythagorean theorem fame) in the 6th century BC. It remerged (thereby proving its own truth) in Friedreich Nietzsche’s writings in the 19th century, then again in 2014’s first season of True Detective, and then again on Monday in Jamie Dimon’s Annual Letter to Shareholders.

Mr. Dimon, the CEO and Chairman of JPMorgan Chase & Co, first mentioned AI in his 2017 Letter to Shareholders.  So, it wasn’t the mention of AI that was newsworthy. It was how it was mentioned.  Before mentioning geopolitical risks, regulatory issues, or the recent acquisition of First Republic, Mr. Dimon spends nine paragraphs talking about AI, its impact on banking, and how JPMorgan Chase is responding.

Here’s a screenshot of the first two paragraphs:

JP Morgan Annual Letter 2017

He’s right. We don’t know “the full effect or the precise rate at which AI will change our business—or how it will affect society at large.” We were similarly clueless in 1436 (when the printing press was invented), 1712 (when the first commercially successful steam engine was invented), 1882 (when electricity was first commercially distributed), and 1993 (when the World Wide Web was released to the public).

Innovation, it seems, is also a flat circle.

Our response doesn’t have to be.

Historically, people responded to innovation in one of two ways: panic because it’s a sign of the apocalypse or rejoice because it will be our salvation. And those reactions aren’t confined to just “transformational” innovations.  In 2015, a visiting professor at Kings College London declared that the humble eraser (1770) was “an instrument of the devil” because it creates “a culture of shame about error.  It’s a way of lying to the world, which says, ‘I didn’t make a mistake.  I got it right the first time.’”

Neither reaction is true. Fortunately, as time passes, more people recognize that the truth is somewhere between the apocalypse and salvation and that we can influence what that “between” place is through intentional experimentation and learning.

JPMorgan started experimenting with AI over a decade ago, well before most of its competitors.  As a result, they “now have over 400 use cases in production in areas such as marketing, fraud, and risk” that are producing quantifiable financial value for the company. 

It’s not just JPMorgan.  Organizations as varied as John Deere, BMW, Amazon, the US Department of Energy, Vanguard, and Johns Hopkins Hospital have been experimenting with AI for years, trying to understand if and how it could improve their operations and enable them to serve customers better.  Some experiments worked.  Some didn’t.  But every company brave enough to try learned something and, as a result, got smarter and more confident about “the full effect or the precise rate at which AI will change our business.”

You have free will.  Use it to learn.

Cynics believe that time is a flat circle.  Leaders believe it is an ever-ascending spiral, one in which we can learn, evolve, and influence what’s next.  They also have the courage to act on (and invest in) that belief.

What do you believe?  More importantly, what are you doing about it?

Image credit: Pixabay

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The Beginning, Middle, and End of Innovation

And How Moneyball Fits In

The Beginning, Middle, and End of Innovation

GUEST POST from Robyn Bolton

Not long ago, pitchers and catchers reported to MLB Spring Training facilities in Florida and Arizona.  For baseball fans, this is the first sign of Spring, an occasion that heralds months of warmth and sunshine, ballparks filled (hopefully) with cheering fans, dinners of beers and brats, and the undying belief that this year will be the year.

Of course, there’s still a lot of dark, dreary cold between now and Opening Day.  Perfect weather for watching baseball movies – Bull DurhamMajor LeagueThe NaturalField of Dreams, and, of course, Moneyball.

Moneyball is based on the book of the same name by Michael Lewis and chronicles the 2002 Oakland Athletics season.  The ’02 Oakland A’s, led by General Manager Billy Beane (played by Brad Pitt), forever changed baseball by adopting an approach that valued rigorous statistical analysis over the collective wisdom of baseball insiders (coaches, scouts, front office personnel) when building a team.  This approach, termed “Moneyball,” enabled the A’s to reach the postseason with a team that cost only $44M in salary, compared to the NY Yankees that spent $125M to achieve the same outcome.

While the whole movie (and book) is a testament to the courage and perseverance required to challenge and change the status quo, time and again I come back to three lines that perfectly sum up the journey of every successful intrapreneur I’ve ever met.

The Beginning

I know you’ve taken it in the teeth out there, but the first guy through the wall…he always gets bloody…always always gets bloody.  This is threatening not just a way of doing business… but in their minds, it’s threatening the game. Really what it’s threatening is their livelihood, their jobs. It’s threatening the way they do things… and every time that happens, whether it’s the government, a way of doing business, whatever, the people who are holding the reins – they have their hands on the switch – they go batshit crazy.”John Henry, Owner of the Boston Red Sox

Context

The 2002 season is over, and the A’s were eliminated in the first round of the playoffs.  John Henry, an owner of the Boston Red Sox, has invited Bill Beane to Boston to offer him the Red Sox GM job. 

Lesson

This is what you sign up for when you decide to be an Intrapreneur.  The more you challenge the status quo, the more you question how business is done, the more you ask Why and demand an answer, the closer you get to “tak(ing) it in the teeth.”

This is why courage, perseverance, and an unshakeable belief that things can and should be better are absolutely essential for intrapreneurs.  Your job is to run at the wall over and over until you get through it.

People will follow.  The Red Sox did.  They won the World Series in 2004, breaking an 84-year-old curse.

The Middle

“It’s a process, it’s a process, it’s a process” — Bill Beane

Context

Billy has to convince the ballplayers to forget all the habits that made them great and embrace the philosophy of Moneyball.  To stop stealing bases, turning double plays on bunts, and swinging for the fences and to start taking walks, throwing to first for the easy out, and prioritize getting on base over hitting a home run.

The players are confused and frustrated.  Suddenly, everything that they once did right is wrong and what was not valued is deeply prized.

Lesson

Innovation is something new that creates value.  Something new doesn’t just require change, it requires people to stop doing things that work and start doing things that seem strange or even wrong.

Change doesn’t happen overnight.  It’s not a switch to be flipped.  It’s a process to be learned.  It takes time, practice, reminders, and patience.

The End

“When you get an answer you’re looking for, hang up.” — Billy Beane

Context

In this scene, Billy has offered one of his players to multiple teams, searching for the best deal.  When the phone rings with a deal he likes, he and the other General Manager (GM) agree to it, Billy hangs up.  Even though the other GM was in the middle of a sentence.  When Peter Brand, the Assistant GM played by Jonah Hill, points out that Billy had just hung up on the other GM, Billy responds with this nugget of wisdom.

Lesson

It’s advice intrapreneurs should take very much to heart.  I often see Innovation teams walk into management presentations with long presentations, full of data and projections, anxious to share their progress, and hoping for continued funding and support.  When the meeting starts, a senior exec will say something like, “We’re excited by the progress we’re hearing about and what it will take to continue.” 

That’s the cue to “hang up.”

Instead of starting the presentation from the beginning, start with “what it will take to continue.”  You got the answer you’re looking for – they’re excited about the progress you’ve made – don’t spend time giving them the info they already have or, worse, could raise questions and dim their enthusiasm.  Hang up on the conversation you want to have and have the conversation they want to have.

In closing

Moneyball was an innovation that fundamentally changed one of the most tradition-bound businesses in sports.  To be successful, it required someone willing to take it in the teeth, to coach people through a process, and to hang up when they got the answer they wanted.  It wasn’t easy but real change rarely is.

The same is true in corporations.  They need their own Bill Beanes.

Are you willing to step up to the plate?

Image credit: Wikimedia Commons

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Positive Power of Negative Emotions Drive Change

Positive Power of Negative Emotions Drive Change

GUEST POST from Robyn Bolton

You want to make life better for others. This desire is reflected in the optimism and positivity of your language – create value, love the problem, and delight the customer.  But making life better requires change, and, as the adage goes, “People want change, but they don’t want to be changed.”

You are confident that the solution you created will make life better and that the change people need to make is quite small and painless, well worth the dramatic improvement you offer.  Yet they resist.  No amount of explaining, showing, convincing, or cajoling changes their mind.  What else can you do?

To quote Darth Vader, “Give yourself to the Dark Side.  It is the only way to save your friends.”

“If only you knew the power of the Dark Side…”

The Dark Side is populated by “negative” emotions like anger, fear, and frustration, which are incredibly powerful.

Consider that:

Unfortunately, these are also some of the first emotions experienced when confronting change.   

Change requires people to let go of what they know in exchange for the promise of something better.  This immediately triggers Loss Aversion, the cognitive bias in which the pain of losing is psychologically twice as powerful as the pleasure of gaining. 

As a result, people won’t let go of what they know until the pain of holding on becomes unbearable.  When you point out the problems and pain of the current situation, you help people understand and experience the unbearableness of the current situation. 

“Anger, fear, aggression; the Dark Side of the Force are they”

Not every “negative” emotion elicits the same behavior, so carefully choose the one to tap into.

Fear motivates people to seek safety, which can be good if your solution truly offers a safer alternative.  It’s a motivator used well by companies such as Volvo, SimpliSafe, and Graco.  But lean on it too much, and people may feel overwhelmed and remain frozen to the status quo.

Anger motivates people to take risks, which can be good when the change requires bold decisions and dogged persistence.  It can be great when it bonds people together to achieve a shared goal or protect a common value.  Apple used this emotion to brilliant effect in its famous “1984” commercial announcing the launch of Macintosh.  But incite too much anger, and things can get broken and not in a helpful way like Apple’s ad.

Frustration, one of the emotions that often drives aggression, is anger’s polite little sister.  When people feel frustrated, they’re likely to act, persistently pursue solutions, and creatively approach and overcome obstacles.  But if the change is big, feels scary, and puts their sense of self at risk, frustration isn’t powerful enough to convince people to let go of the old and embrace the new.

“If you start down the dark path, forever will it dominate your destiny.”

Yoda is incredibly wise, but he gets this one wrong.  Using the Dark Side to speak to people’s “negative” emotions doesn’t doom you to a life or career of fear-mongering or inciting violence.  Start here, don’t stay here.

Multiple research studies show that positive emotions, like hope and joy, are more powerful than negative ones in maintaining motivation and even enable more creative thinking and problem-solving.  By speaking to both negative and positive emotions, the Dark Side and the Light, you enable change by giving people a reason to let go of the past and a future worth reaching for.

When people stop resisting and start reaching to the future you’re offering, change happens, and you realize that Yoda was right, “Luminous beings are we, not this crude matter.”

Image credit: Pixabay

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Good Intentions Pave the Way to Innovation Hell

The road to hell is paved with good intentions, and nowhere is that more true than in innovation.

Good Intentions Pave the Way to Innovation Hell

GUEST POST from Robyn Bolton

That’s one of the insights I took away from InnoLead’s Q1 report on corporate innovation priorities.  The report is an eye-opening look at the impact of AI on corporate innovation as experienced by corporate entrepreneurs themselves.  But before deep diving into that topic, the report’s authors shared intriguing data about member companies’ innovation structure, leadership engagement, organizational connections, and results. Nestled amongst the charts were several that, when taken together, got my Spidey senses tingling.

61.0% of innovation teams are “directly under a high-visibility leader with a broad company focus.”

This is great because innovation needs senior leaders’ support and active engagement to survive, let alone survive for long enough to produce meaningful results. Add this to the fact that 45% of senior leadership teams frequently discuss the “progress and value of the innovation program,” and all signs point to innovation as a strategic priority.

But (you knew there was a but, didn’t you)…

If “broad company focus” means “no P&L responsibility,” we have a problem.  In every for-profit company I’ve worked for and with, people with P&L responsibility have greater power, influence, and access to resources than people without a P&L.  This division may not feel fair, but it makes sense – the people who bring in profit and revenue will always be more influential than people who represent “cost centers.”

You can see the impact of P&L owners who are, understandably, focused entirely on delivering short-term results throughout the report – 75% of companies have shifted their focus more towards near-term priorities, and 61% shifted their innovation portfolio away from Horizon 3 (also known as radical, breakthrough, or disruptive innovation).

As for all those discussions, it’d be great if they focused on walking the talk of innovation. But suppose it’s only innovation platitudes or, worse, questioning innovation’s ROI. That doesn’t bode well for the “high-visibility leader with broad company focus,” the innovation team, or the company’s culture.

71.2% of innovation teams’ customers or business partners are unaware of the team’s existence, don’t engage, or engage only occasionally.

Welcome to Innovation Island!  Where the cool people work on cool things in cool offices while all you drones slave away doing the same thing you’ve always done and making the money that pays for the cool people to do cool things in their cool offices.

I’m sure this isn’t the message the innovation team intends to send, but it’s the one received by most organizations.

When arguing for Innovation Island, managers often point to the organizational antibodies likely to swarm and kill H3/radical/breakthrough innovation and even some H2/adjacent innovations.  They’re right, and those innovations must be “protected.” But not every innovation needs protection.  H2 and certainly H1 innovations, where most portfolios are now, should be shared with the core business because the core business will eventually run them.

The bigger problem, in my opinion, is that innovation teams don’t seem to be reaching out to others in the organization.  Like the P&L owners they report to, people in the core business are busy running the business and generating revenue.  Very few have the time or energy to seek out the innovation team to discuss and explore innovation.  Companies that want to build a culture of innovation need to turn their innovators into evangelists, not residents of an island connected to the mainland by a single drawbridge.

23.4% of innovation teams are considered outsiders or actively undermined by other functions and business units.

This may not sound bad, but add to it the 55.0% that are “somewhat integrated with occasional collaboration” with other departments and business units, and you may be tempted to believe that Innovation Island would be wise to invest in a surface-to-air missile defense system.

Sadly, this perception of the innovation team as “The Others” isn’t surprising when considering that the most important tactic for building a relationship between innovation and the functions or business units is already having strong relationships and interpersonal trust (75.3% of respondents).  The least effective (4.7% of respondents) is “writing down shared objectives and expectations.”  So, no, the email you sent is not enough to win friends and influence people.

Bottom line

Well-intended companies appoint a senior executive to lead the innovation team because they’ve been told that doing so is powerful proof that innovation is a strategic priority.  They hire outsiders to inject new thinking into the organization because they know that “what got you here won’t get you there.”  They cordon the team and their work off from the rest of the organization because they read that separation is essential to preserving innovation’s disruptive nature. 

But if the senior executive doesn’t have the organizational power and influence that comes with P&L ownership, the team doesn’t have strong personal relationships with others in the business, and other functions and business units don’t know the team exists or how to interact with it, innovation will go nowhere.

But that’s better than where it could go.

Image credit: Unsplash

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Challenging the Assumption of the Status Quo

(A Lesson Learned from Yogurt)

Challenging the Assumption of the Status Quo

GUEST POST from Robyn Bolton

In September 2006, I moved to Copenhagen, Denmark, on a temporary assignment with BCG.  As one does when arriving somewhere for an extended period, I went to the grocery store to stock my kitchen. 

Since the grocery store was on the ground floor of my building, I bought enough food for a few breakfasts and dinners, made note of the other offerings for future trips, and learned through painful public embarrassment that one must purchase grocery bags (and those bags are nowhere near the checkout lane).

The following day, yogurt was on the menu, and I grabbed the first of the three options I had bought the previous day – a small container of strawberry yogurt.

My heart sank when I peeled off the top.

Instead of super healthy, organic, natural (I’m in Scandinavia, for crying out loud!) yogurt, the stuff in my cup was a rather suspicious beige with dark brown flecks.

Stifling my instinct to dry heave, I chucked the cup into the garbage, along with the five other cups in the clearly spoiled pack, and pulled Brand #2 out of the refrigerator.  Surely, this strawberry yogurt would be safe to eat.

But it, too, was beige.  A lighter beiger and without the disturbing brown flecks.  But still beige.

“You’ve got to be kidding me,” I muttered.  Admittedly, the grocery store was more of a glorified convenience store, but c’mon, how hard is it to keep track of Sell By dates?

Into the garbage, it went.  Out of the refrigerator came Brand #3 (Yes, I take a portfolio approach to innovation AND food purchases)

Closing my eyes and saying a quick prayer to both the grocery and yogurt gods, I peeled open the yogurt. Not beige but a slight hint of pink, just enough to reassure me that it contained strawberries and hadn’t curdled but not so much that I suspected an American-amount of food coloring.

Later that day…

At lunch, my new colleagues asked how I was settling in.  I regaled them with my “bumbling American experiencing culture shock in a country where she looks (and is initially treated like) a local” stories. 

As we gathered up our dishes and returned to the kitchen, I commented that I was surprised that my local grocery would keep expired products on the shelf.  When they echoed my surprise, I told them about the spoiled yogurt and that 2 of the three brands I purchased were bad.

Based on the glances they exchanged, I knew I had another story to add to an already uncomfortably full book.

It turns out that. The “good” yogurt I ate that morning was from the lowest quality brand, one that no self-respecting Dane would consider eating but that is sold to unsuspecting foreigners (Hi, that’s me).  The “bad” yogurt was from respected all-natural brands.  All yogurt, they explained, falls somewhere in the spectrum from white to beige or even tan. That’s why they print the flavor name and a picture of the fruit on the label.

How often do we make the same mistake?

How often do we reject something because it’s not what we expect to see?  Because it’s not what we’re used to?

Maybe not often when it comes to yogurt, but what about other more important things, like:

  • Trends
  • Technologies
  • Ideas
  • Business Models
  • Startups
  • People

And what happens when we don’t have people willing to point out that we’re no longer in a place where our status quo applies?

Image credit: Pixabay

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Thinking Differently About Leadership and Innovation

Thinking Differently About Leadership and Innovation

GUEST POST from Janet Sernack

We live in a world, with less stability, certainty, simplicity, and predictability, where regional conflicts, societal divisions, and civil unrest have increased globally. Simultaneously, technological-induced disruptive innovations and the climate crisis impact every aspect of our daily lives. This means that we live in an age of overwhelm and a world of unknowns, requiring us all to know how to uncover and eliminate our individual and collective blind spots, to be adaptive and innovative. By thinking and acting differently about leadership and innovation, we can all grow, survive, and thrive within it.

This a moment in time that calls for leaders to boldly and courageously, step up, shift out of any myopic, reactive, cost, and short-term focus, and develop their leadership consciousness.  By taking personal responsibility, and being accountable for owning and shifting their interior state or inner being, to eliminate flaws, maximize core strengths, and build confidence, capacity, and competence to adapt, innovate, and grow through disruption.  

To refocus on developing future-fit systemic and innovative solutions, that add real value in ways that serve and sustain people, profit, and the planet, differently.

Leadership is in crisis

We are experiencing a global leadership crisis.

Many leaders, in the corporate sector, and national and international institutions have become increasingly reactive. In ways that are passively or aggressively defensive, egotistic, and often self-serving. By vacillating between political correctness, denial, justification, and avoidance – and between attacking, shaming, and blaming groups, individuals, and nations for the current state of social unrest, political chaos, cultural divisions, and regional and religious conflicts.

  • Hitting a pause button

The missing key element is the leadership consciousness required in taking the time to pause, retreat (step back), reflect, and explore the deep causes, current implications, and nature of challenging, complex, and systemic problems.

Leaders are obliged to step out of their habitual comfort zones and boost their ability to bravely make sense of what is going on – and develop the foresight skills to risk mitigate and identify the most intelligent actions that will deliver high-value and high-impact outcomes that serve people, profits, and the planet.

To uncover the repetitive mindsets and behaviors that keep on producing results that no one wants, by bravely exposing and eliminating their leadership blind spots. 

Leadership blind spots

We know that most of the innovative solutions to the complex challenges we face already exist.

To unleash these desirable, value-adding, and innovative solutions, we need to empower, enable, and equip leaders to bravely and safely expose and eliminate their largely, unconscious and unknown leadership blind spots. These exist in our individual and collective leadership, they also exist in our everyday team and social interactions.

Because most leaders are smart and know what to do, and how to do it, identifying and eliminating any leadership blind spots will enable them to do it better.

Yet, despite, in many cases, years of leadership training they are at risk of being perpetually reactive, unfocused, overcome with “busyness” and addicted to the tasks involved in “getting stuff” (usually the urgent “small stuff” and not always the “important stuff”) the done. 

As defined by Dr. Karen Blakeley in “Leadership Blind Spots and What to Do about Them,” a blind spot is “a regular tendency to repress, distort, dismiss or fail to notice information, views or ideas in a particular area that results in an individual failing to learn, change or grow in response to changes in that area.”

  • Source of leadership blind spots

The majority of leaders are mostly blind to the Source from which they operate. This is often because many do not have the self-awareness and emotional intelligence to manage and self-regulate any of their unconscious un-resourceful emotional states, mindsets, and behaviors. 

Leadership Consciousness

“An ordered distinction between self and environment, simple wakefulness, one’s sense of self-hood or soul explored by “looking within”; being a metaphorical “stream” of contents, or being a mental state, mental event or mental process of the brain”.

  • Igniting the brain

Leadership blind spots are typically contained in our neurology and can be exposed and eliminated by:


Paying attention to their three core neurological levels and being intentional in cultivating their leadership consciousness.

When engaged in a coaching partnership, a leader can learn how to shift, self-regulate, and self-manage at all three levels to effectively eliminate their flaws, and learn how to think and act differently in delivering successful transformation and change initiatives.

Power of Coaching Intervention

A coach is an external disruptor who seeks to bring out the best in a leader, tap into and maximize their potential, and adds value by facilitating deep, insight-based learning processes, that shifts mindsets and result in sustainable behavior change.

Coaching helps smart people be and think beyond who they are being and beyond what they are thinking now. In ways that can empower, enable, and equip leaders to adapt, innovate, and grow, cultivate their imagination and creativity, to think and act differently in an unstable world.

This enables them to develop and implement systemic and innovative solutions in a timely way and at scale.

  • Noticing, disrupting, disputing, and deviating

Coaches partner with leaders to enable them to notice, disrupt, dispute, and deviate by accessing and harnessing resourceful emotional states, and mindsets. Coaches safely explore the “boxes”, thinking, or the “stories” a leader may have been unconsciously living within, and constricted by.

Because we can’t solve the problem with the same thinking that created it in the first instance.

Especially in a 21st-century world where developing leadership consciousness enables us to adapt, innovate, and grow by:

  • Reducing our brain’s ability to hijack us when doing its best to constantly keep us safe from danger,
  • Letting go of old pervasive Industrial Age mental models and perspectives, especially around cost and efficiency,
  • Relearning new future-fit ways of being, thinking, and acting differently.

And increases our ability to be agile, centered, and focused in thinking faster in the Disruption Age, where technology is accelerating faster than our human brains are.

Upskilling our brains!

A coaching partnership will create a safe and collective holding space to help leaders deep dive into the unknown develop strategies and develop their leadership consciousness in ways that:

  • Opens their minds, ignites their imagination, curiosity, and creativity, shifts their perspective, makes sense of things develops a whole systems perspective, and think differently,
  • Opens their hearts to become connected with self, others, systems, and with Source, and be empathic and compassionate,
  • Opens their will to let go of the need for control, and allows them to deal with paradox and the new to emerge, which can be designed, iterated, and pivoted, in ways that enable them to act differently, in designing and implementing systemic and innovative solutions.

Closing leadership blind spots to adapt, innovate and grow

A coach empowers, enables, and equips a leader’s capacity, confidence, and competence, to identify and close their leadership blind spots, be in charge of their minds, and think and act differently, to adapt, innovate, and grow in times of great uncertainty.

To convincingly work with, and flow with both their peoples overwhelm, and with the constraints in the external environment by:

  • Developing an awareness of their neurological RIGIDITY which exists within their emotional, cognitive, and visceral states, in turn, impacts their ability to mobilise, focus, and engage their efforts.

When a leader has a blind spot in this area, they may demonstrate rigidity, or functional fixedness, resulting in an inability to mobilise, they will be withdrawn, reactive, and become overly passive or even aggressive.  Because they are unconsciously at the effect of the “mental blocks” resulting from unacknowledged fears and anxiety.

  • Developing their neurological PLASTICITY and flexibility to be able to attend to, regulate, and focus their thoughts, and feelings, and be grounded, mindful, present, and intentional in taking intelligent actions.

When a leader has a blind spot in this area, they will not be able to access their brain’s ability to change, reorganize, or grow new neural networks, learn, adapt, and become resilient. They will not develop the agility required to shift mindsets or behaviours, or even learn the new skills that will equip them to be future-fit and deliver the results they seek.

  • Generating the critical and creative thinking, problem sensing, and solving skills required to improve their leadership consciousness and GENERATE their crucial elastic thinking and human skills required to see, think differently in solving complex and wicked problems, be future-fit, and lead others to thrive.

When a leader has a blind spot in this area, they will take a conventional and linear approach to decision-making problem-solving, and team development. They will safely stay stuck in what they know, even though what they did in the past may not have worked.

Adding value to the quality of peoples’ lives

If we keep on trying to solve the problem with the same thinking (and neurological state) that created it, we will continue to reproduce the results no one wants.

We will not be able to shift beyond what we think now, nor will we connect, export, and, discover the crucial new horizons we need to emerge to develop and implement the systemic and innovative solutions, in a timely way and at scale, that the world needs right now!

Imagine if leaders truly and deeply committed to cultivating their leadership consciousness, and make the time and space to eliminate their blind spots, how peaceful and harmonious the world could become!

If leaders could learn how to think and act differently, focus on adding value to the quality of people’s lives in ways they appreciate and cherish, and contribute to the common good, to serve all of humanity, how people, profit, and the planet could flourish.

Find out more about our work at ImagineNation™

Find out about our collective, learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack, is a collaborative, intimate, and deeply personalized innovation coaching and learning program, supported by a global group of peers over 9-weeks, and can be customized as a bespoke corporate learning and coaching program for leadership and team development and change and culture transformation initiatives.

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Implementing Successful Transformation Initiatives for 2024

Implementing Successful Transformation Initiatives for 2024

GUEST POST from Janet Sernack

Transformation and change initiatives are usually designed as strategic interventions, intending to advance an organization’s growth, deliver increased shareholder value, build competitive advantage, or improve speed and agility to respond to fast-changing industries.  These initiatives typically focus on improving efficiency, and productivity, resolving IT legacy and technological issues, encouraging innovation, or developing high-performance organizational cultures. Yet, according to research conducted over fifteen years by McKinsey & Co., shared in a recent article “Losing from day one: Why even successful transformations fall short” – Organizations have realized only 67 percent of the maximum financial benefits that their transformations could have achieved. By contrast, respondents at all other companies say they captured an average of only 37 percent of the potential benefit, and it’s all due to a lack of human skills, and their inability to adapt, innovate, and thrive in a decade of disruption.

Differences between success and failure

The survey results confirm that “there are no short­cuts to successful transformation and change initiatives. The main differentiator between success and failure was not whether an organization followed a specific subset of actions but rather how many actions it took throughout an organizational transformation’s life cycle” and actions taken by the people involved.

Capacity, confidence, and competence – human skills

What stands out is that thirty-five percent of the value lost occurs in the implementation phase, which involves the unproductive actions taken by the people involved.

The Boston Consulting Group (BCG) supports this in a recent article “How to Create a Transformation That Lasts” – “Transformations are inherently difficult, filled with compressed deadlines and limited resources. Executing them typically requires big changes in processes, product offerings, governance, structure, the operating model itself, and human behavior.

Reinforcing the need for organizations to invest in developing the deep human skills that embed transformation disciplines into business-as-usual structures, processes, and systems, and help shift the culture. Which depends on enhancing people’s capacity, confidence, and competence to implement the “annual business-planning processes and review cycles, from executive-level weekly briefings and monthly or quarterly reviews to individual performance dialogue” that delivers and embeds the desired changes, especially the cultural enablers.

Complex and difficult to navigate – key challenges

As a result of the impact of our VUCA/BANI world, coupled with the global pandemic, current global instability, and geopolitics, many people have had their focus stolen, and are still experiencing dissonance cognitively, emotionally, and viscerally.

This impacts their ability to take intelligent actions and the range of symptoms includes emotional overwhelm, cognitive overload, and change fatigue.

It seems that many people lack the capacity, confidence, and competence, to underpin their balance, well-being, and resilience, which resources their ability and GRIT to engage fully in transformation and change initiatives.

The new normal – restoring our humanity

At ImagineNation™ for the past four years, in our coaching and mentoring practice, we have spent more than 1000 hours partnering with leaders and managers around the world to support them in recovering and re-emerging from a range of uncomfortable, disabling, and disempowering feelings.

Some of these unresourceful states include loneliness, disconnection, a lack of belonging, and varying degrees of burnout, and have caused them to withdraw and, in some cases, even resist returning to the office, or to work generally.

It appears that this is the new normal we all have to deal with, knowing there is no playbook, to take us there because it involves restoring the essence of our humanity and deepening our human skills.

Taking a whole-person approach – develop human skills

By embracing a whole-person approach, in all transformation and change initiatives, that focuses on building people’s capacity, confidence, and competence, and that cultivates their well-being and resilience to:

  • Engage, empower, and enable them to collaborate in setting the targets, business plans, implementation, and follow-up necessary to ensure a successful transformation and change initiative.
  • Safely partner with them through their discomfort, anxiety, fear, and reactive responses.
  • Learn resourceful emotional states, traits, mindsets, behaviors, and human skills to embody, enact and execute the desired changes strategically and systemically.

By then slowing down, to pause, retreat and reflect, and choose to operate systemically and holistically, and cultivate the “deliberate calm” required to operate at the three different human levels outlined in the illustration below:

The Neurological Level – which most transformation and change initiatives fail to comprehend, connect to, and work with. Because people lack the focus, intention, and skills to help people collapse any unconscious RIGIDITY existing in their emotional, cognitive, and visceral states, which means they may be frozen, distracted, withdrawn, or aggressive as a result of their fears and anxiety.

You can build your capacity, confidence, and competence to operate at this level by accepting “what is”:

  • Paying attention and being present with whatever people are experiencing neurologically by attending, allowing, accepting, naming, and acknowledging whatever is going on for them, and by supporting and enabling them to rest, revitalize and recover in their unique way.
  • Operating from an open mind and an open heart and by being empathic and compassionate, in line with their fragility and vulnerability, being kind, appreciative, and considerate of their individual needs.
  • Being intentional in enabling them to become grounded, mindful conscious, and truly connected to what is really going on for them, and rebuild their positivity, optimism, and hope for the future.
  • Creating a collective holding space or container that gives them permission, safety, and trust to pull them towards the benefits and rewards of not knowing, unlearning, and being open to relearning new mental models.
  • Evoking new and multiple perspectives that will help them navigate uncertainty and complexity.

The Emotional Cognition Levels – which most transformation and change initiatives fail to take into account because people need to develop their PLASTICITY and flexibility in regulating and focusing their thoughts, feelings, and actions to adapt and be agile in a world of unknowns, and deliver the outcomes and results they want to have.

You can build your capacity, confidence, and competence to operate at this level by supporting them to open their hearts and minds:

  • Igniting their curiosity, imagination, and playfulness, introducing novel ideas, and allowing play and improvisation into their thinking processes, to allow time out to mind wander and wonder into new and unexplored territories.
  • Exposing, disrupting, and re-framing negative beliefs, ruminations, overthinking and catastrophizing patterns, imposter syndromes, fears of failure, and feelings of hopelessness and helplessness.
  • Evoking mindset shifts, embracing positivity and an optimistic focus on what might be a future possibility and opportunity.
  • Being empathic, compassionate, and appreciative, and engaging in self-care activities and well-being practices.

The Generative Level – which most transformation and change initiatives ignore, because they fail to develop the critical and creative thinking, and problem sensing and solving skills that are required to GENERATE the crucial elastic thinking and human skills that result in change, and innovation.

You can build your capacity, confidence, and competence to operate at this level by:

  • Creating a safe space to help people reason and make sense of the things occurring within, around, and outside of them.
  • Cultivating their emotional and cognitive agility, creative, critical, and associative thinking skills to challenge the status quo and think differently.
  • Developing behavioral flexibility to collaborate, being inclusive to maximize differences and diversity, and safe experimentation to close their knowing-doing gaps.
  • Taking small bets, giving people permission and safety to fail fast to learn quickly, be courageous, be both strategic and systemic in taking smart risks and intelligent actions.

Reigniting our humanity – unlocking human potential  

At the end of the day, we all know that we can’t solve the problem with the same thinking that created it. Yet, so many of us keep on trying to do that, by unconsciously defaulting into a business-as-usual linear thinking process when involved in setting up and implementing a transformation or change initiative.

Ai can only take us so far, because the defining trait of our species, is our human creativity, which is at the heart of all creative problem-solving endeavors, where innovation can be the engine of change, transformation, and growth, no matter what the context. According to Fei-Fei Li, Sequoia Professor of Computer Science at Stanford, and co-director of AI4All, a non-profit organization promoting diversity and inclusion in the field of AI.

“There’s nothing artificial about AI. It’s inspired by people, created by people, and most importantly it has an impact on people”.

  • Develop the human skills

When we have the capacity, confidence, and competence to reignite our humanity, we will unlock human potential, and stop producing results no one wants. By developing human skills that enable people to adapt, be resilient, agile, creative, and innovate, they will grow through disruption in ways that add value to the quality of people’s lives, that are appreciated and cherished, we can truly serve people, deliver profits and perhaps save the planet.

Find out more about our work at ImagineNation™

Find out about our collective, learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack, is a collaborative, intimate, and deeply personalized innovation coaching and learning program, supported by a global group of peers over 9-weeks, and can be customized as a bespoke corporate learning and coaching program for leadership and team development and change and culture transformation initiatives.

Image Credit: Pixabay

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Change Management Team Dynamics

Change Management Team Dynamics

Editor’s Note — Braden Kelley

How to Manage Team Dynamics: A Practical Framework

Managing team dynamics means deliberately shaping the behavioral and psychological forces within a group to improve collaboration, trust, and performance. Effective team dynamics management requires leaders to understand what drives team behavior, diagnose problems early, and apply the right interventions at the right time — especially during periods of organizational change.

The six most important levers for managing team dynamics are:

  1. Establish psychological safety — Create an environment where team members can speak up, disagree, and take risks without fear of judgment or retaliation. Research by Google’s Project Aristotle identified psychological safety as the single most important factor in high-performing teams.
  2. Clarify roles and accountabilities — Ambiguity about who owns what is one of the most common sources of team dysfunction. Every team member should know their role, how it connects to others’, and how their contribution will be measured.
  3. Build explicit team norms — High-performing teams don’t leave behavioral expectations to chance. They discuss and agree on how decisions get made, how conflict is handled, how feedback is given, and how commitments are honored.
  4. Address conflict directly and early — Unresolved conflict doesn’t disappear — it goes underground and corrodes trust over time. Leaders who surface and work through conflict early prevent the kind of accumulated resentment that destroys team cohesion.
  5. Maintain clear, consistent communication — Teams perform best when everyone has access to the same information about goals, progress, decisions, and changes. Information asymmetry breeds anxiety, speculation, and mistrust.
  6. Recognize and build on individual strengths — Teams whose members understand each other’s strengths, working styles, and motivations can allocate work more effectively and support each other through difficulty. This is especially important during change, when individuals respond to uncertainty differently.

Team Dynamics Examples: What Good and Bad Team Dynamics Look Like in Practice

Team dynamics are easy to define and hard to recognize in the moment — especially from inside the team experiencing them. The clearest way to understand team dynamics is to look at how they actually show up in everyday work: in meetings, in how decisions get made, and in how people respond when things go wrong.

The Five Stages in Action: Tuckman’s Model at Work

Bruce Tuckman’s five stages — forming, storming, norming, performing, and adjourning — remain the most widely used framework for understanding how team dynamics evolve over time. Here is what each stage actually looks like on a real team:

Forming — A new product team is assembled from people who haven’t worked together before. Meetings are polite and a little stiff. Everyone is careful about what they say, eager to make a good impression, and privately uncertain about their role. Conflict is almost nonexistent — not because the team agrees on everything, but because nobody yet feels safe enough to disagree.

Storming — Three weeks in, the same team hits its first real disagreement: should the team prioritize a quick win for leadership visibility, or invest in the foundational work that will make future releases faster? Two senior members clash openly in a meeting for the first time. This is storming — and it is often misread as a sign the team isn’t working, when it’s actually a sign the team is starting to engage honestly.

Norming — A few weeks later, the same team has developed unwritten rules: disagreements happen in working sessions, not in front of stakeholders; decisions get documented so nobody re-litigates them later; and the two members who clashed earlier have learned to read each other’s signals. Trust has started to build. The team still has friction, but it has a way of working through it.

Performing — Six months in, the team is shipping reliably. Members anticipate each other’s needs, cover for one another without being asked, and spend less time on coordination because they understand how everyone works. This is the stage every team wants to reach — and the stage that’s easiest to lose if membership changes or pressure increases.

Adjourning — The project wraps up and the team disbands or is reassigned. People who spent six months performing well together now feel a mix of pride and loss. Teams that skip acknowledging this stage often see members carry unresolved tension into their next team.

An important nuance: teams don’t move through these stages in a straight line. A new member joining, a leadership change, or a major setback can send a performing team back into storming. Recognizing which stage your team is actually in — rather than which stage you assumed it was in — is often the first step toward improving team dynamics.

Signs of Healthy Team Dynamics

  • Disagreement happens openly, not in side conversations. When someone disagrees with a decision, they raise it in the room — not in a private message to a colleague afterward.
  • People ask for help before they’re struggling. Team members flag when they’re stuck or behind early enough that others can actually help.
  • Credit and blame are distributed accurately. When something goes well, multiple people get recognized. When something goes wrong, the team looks at what happened rather than who to blame.
  • Meetings have energy, not just attendance. People contribute, build on each other’s ideas, and occasionally push back — rather than waiting for the meeting to end.
  • New members get absorbed without major disruption. The team has enough shared norms that someone new can learn how things work without the whole team needing to renegotiate its dynamics.

Signs of Unhealthy Team Dynamics

  • The same few people dominate every discussion, while others stay quiet — not because they have nothing to say, but because speaking up hasn’t felt worth the friction.
  • Decisions get made in meetings and then quietly reversed afterward in side conversations, leaving the team unsure what was actually decided.
  • Conflict avoidance masquerades as harmony. The team appears to agree on everything, but disagreements show up later as missed deadlines, quiet resistance, or passive-aggressive comments.
  • One person becomes a single point of failure — not because they’re the most capable, but because the team has implicitly agreed that bringing problems to anyone else isn’t worth it.
  • Onboarding new members takes much longer than it should, because so much of how the team operates is unwritten, political, or dependent on who you ask.

A Common Scenario: When Team Dynamics Break Down Under Pressure

One of the most common — and most revealing — team dynamics scenarios happens under deadline pressure. A team that has appeared to function well suddenly starts missing commitments, communication becomes terse, and people start working around each other rather than with each other.

What’s often happening: the team’s existing norms were never actually tested under stress. The “norming” the team experienced was norming for low-pressure conditions. Under pressure, unresolved tensions from the storming stage resurface — except now there’s no time to work through them the way the team did before. This is why teams that seem to have good dynamics in calm periods can fall apart during a crunch: their dynamics were never actually resilient, just untested.

The fix is rarely about working harder. It’s usually about explicitly re-establishing how the team will make decisions and communicate under the current pressure — rather than assuming the norms that worked before will hold automatically.

Stefan Lindegaard’s article below explores how these principles apply specifically in the context of organizational change — where team dynamics are under the most pressure and most likely to either accelerate or undermine the change effort.

GUEST POST from Stefan Lindegaard

As the pace of change accelerates and becomes more encompassing, teams stand as the backbone of a successful organization. To stay ahead, teams must not only adapt to change but also leverage it to their advantage.

So, how do we harness change management to ensure our teams remain robust and agile through ongoing transformations and uncertainties?

By integrating team dynamics with change management, we aim to transform not only how teams operate but also how individuals perceive and engage with the different types of organizational change.

That’s why I’m developing the Team Dynamics for Change Management Framework, and I invite your feedback and perspectives on it.

Understanding Change Management:

Change Management is the structured approach to transitioning teams or organizations from their current state to a desired future state. It’s about guiding and supporting individuals through this transition to realize lasting benefits. A significant part of this involves understanding people – their perceptions of change and how best to aid them through it.

Defining Team Dynamics:

Team dynamics are the behavioral and psychological forces at play within a group, profoundly influencing its direction and overall performance. These forces spring from individual personalities, relationships, roles, and the environment the team operates within. They mold the team’s interactions, communication patterns, collaborative efforts, and conflict resolutions.

Why a Framework for This Makes Sense

While numerous change management models cater to organizational or individual change, few focus directly on the unique behaviors and interactions within teams.

Given the pivotal role of teams, it’s essential to have an approach that marries the principles of change management with the realities of team dynamics.

Inspiration & Roots:

Two groundbreaking models serve as the foundational inspiration for this approach:

Kotter’s 8-Step Process for Leading Change: Developed by Harvard Business School Professor John Kotter, this model provides a step-by-step strategy for organizational change. Its emphasis on creating urgency, building a guiding coalition, and embedding new approaches makes it a revered guide in change management.

ADKAR Model: Introduced by Prosci, a global leader in change management solutions, this model emphasizes the individual’s journey through change. Its focus on Awareness, Desire, Knowledge, Ability, and Reinforcement captures the stages of personal transition during organizational shifts.

Choosing these models as the foundation is due to their robust, time-tested strategies, which I believe can be tailored to address team dynamics specifically.

Change Curve

Eight (8) Elements for the Team Dynamics for Change Management Framework

1. Assessing Team Dynamics:

Objective: Understand the current state and behaviors within the team.

Rationale: Before any change management strategy can be effectively implemented, there’s a need to understand the present dynamics of the team. This sets the foundation for everything that follows.

2. Understanding Individual Aspirations (WIIFM):

Objective: Recognize and validate the personal drivers and motivations of each team member.

Rationale: Following the assessment of team dynamics, it’s critical to delve deeper into individual motivations. Understanding the “what’s in it for me?” for every team member will influence and enrich subsequent steps, ensuring changes resonate on a personal level.

3. Evaluating Team Change Readiness:

Objective: Gauge the team’s willingness and preparation for change, considering both collective and individual motivations.

Rationale: Once the team dynamics and individual aspirations are clear, it’s pivotal to measure the readiness for change, which will be greatly influenced by the alignment (or lack thereof) between team goals and personal drivers.

4. Formulating a Shared Vision:

Objective: Create a unified direction for the team that also respects individual aspirations.

Rationale: Armed with insights from previous steps, crafting a shared vision becomes more feasible and grounded. This vision will better reflect the aspirations of the team as a whole and its individual members.

5. Enhancing Communication & Collaboration:

Objective: Foster positive and efficient team interactions.

Rationale: With a clear vision in place, the focus can shift to enhancing the ways team members interact, ensuring that individual aspirations and the collective vision are continually in dialogue.

6. Implementing Change & Skill Development:

Objective: Facilitate the smooth adoption of new practices while building necessary skills.

Rationale: Changes can now be introduced and executed, backed by a well-understood team dynamic and vision, and supported by individual motivations.

7. Feedback & Continuous Improvement:

Objective: Monitor the impact of the changes and refine as necessary.

Rationale: As changes are implemented, it’s essential to keep the channels of feedback open. Here, the alignment between team goals and individual motivations will be rechecked and fine-tuned.

8. Celebrating Success & Expanding Impact:

Objective: Recognize achievements and share the team’s journey with a wider audience.

Rationale: Concluding with acknowledgment reinforces the importance of both the collective endeavor and individual contributions. Celebrations serve as reminders of the harmony between team goals and personal aspirations.

What’s in it for Teams:

  • A clearer path through organizational changes.
  • Enhanced trust, teamwork, and collaboration.
  • Fewer conflicts and more transparent communication channels.
  • Readiness for upcoming challenges.
  • Foster an environment where everyone thrives.
  • Provides individuals clarity on their roles, highlighting the unique value they bring to the organization, reducing uncertainty.

Help develop our framework? Get a free e-book!

I’m in the process of refining this framework and would greatly value your perspectives. If you have insights, feedback to offer or questions to ask, please get in touch. Let’s work together to redefine how teams adapt to change. I will soon turn this into a free e-book to share the learning.

BONUS CONTENT:

How to Manage Team Dynamics: A Practical Framework

Understanding team dynamics is only half the job. The harder work is actively managing them — intervening at the right moments, adapting your leadership approach as the team evolves, and building the conditions that allow high performance to emerge and sustain. Here is a practical framework for doing exactly that.

1. Diagnose before you intervene

The most common team management mistake is applying the wrong intervention at the wrong stage. A team in the storming phase needs conflict navigation, not motivation. A team in the norming phase needs reinforcement and structure, not the same directive leadership that worked during forming. Before doing anything else, honestly assess which Tuckman stage your team is currently in — and whether it has regressed from a stage you assumed it had passed.

Key diagnostic questions: Are people expressing disagreement openly or sitting on it? Do team members know each other’s working styles and preferences? Are roles and decision rights clear and respected? Is the team’s output improving over time? The answers will tell you more about the team’s real stage than any formal assessment will.

2. Adapt your leadership style to the stage

Effective team dynamic management is not a fixed approach — it is a moving one. The leadership behavior that builds trust during forming (directive clarity, structured onboarding, explicit goal-setting) will actively harm a performing team by signaling that you don’t trust them to self-direct. The appropriate leadership stance shifts with each stage:

  • Forming — Direct and clarify. Set explicit goals, define roles unambiguously, and create structured opportunities for team members to get to know each other’s strengths before they need to rely on them under pressure.
  • Storming — Surface and facilitate. Don’t avoid conflict — name it, create a safe space to work through it, and focus energy on clarifying operating norms rather than suppressing disagreement. The teams that rush through storming often find themselves back in it later under higher stakes.
  • Norming — Reinforce and systematize. The team is developing its own culture and working rhythms; your job is to reinforce the ones that support performance and gently challenge the ones that don’t. Celebrate early wins explicitly — they are the cement that sets the norms in place.
  • Performing — Remove obstacles and delegate authority. The team doesn’t need your direction; it needs you to clear the path. Shift from leading the work to protecting the team’s conditions for doing it — removing bureaucratic friction, defending their time, and ensuring they have what they need to keep performing.
  • Adjourning — Acknowledge and close. Don’t let high-performing teams dissolve without formal recognition of what was accomplished. The way a team ends shapes how its members approach the next team they join.

3. Build psychological safety as a management practice, not a culture aspiration

The single most important lever for positive team dynamics is psychological safety — the shared belief that the team is a safe place to take interpersonal risks: to disagree, ask questions, admit mistakes, and propose unconventional ideas. Google’s Project Aristotle, the most comprehensive study of team performance ever conducted, found that psychological safety was the most important factor distinguishing high-performing teams from average ones — more important than individual talent, resources, or clear goals.

But psychological safety doesn’t emerge from aspirational culture statements. It is built through specific, repeated behaviors:

  • Model the behavior you want — Leaders who publicly acknowledge their own mistakes, express genuine uncertainty, and ask for input before sharing opinions create the template others follow. Leaders who project confidence and certainty consistently and punish dissent create the opposite.
  • Reward speaking up, not just speaking right — Explicitly acknowledge when someone raises a concern, flags a problem early, or brings a dissenting view — regardless of whether they were ultimately correct. The behavior you want is the raising, not the being right.
  • Separate idea generation from idea evaluation — In meetings where the goal is to generate options, make it explicit that no idea is being evaluated yet. The amygdala threat response that shuts down creative contribution activates the moment someone fears judgment — removing that threat from the room, even temporarily, meaningfully expands what people are willing to say.

4. Manage conflict as information, not disruption

Conflict in teams is not a sign that something has gone wrong. It is a sign that people are engaged enough to disagree — and that the team has enough trust for disagreement to surface rather than go underground. Suppressing conflict during the storming phase doesn’t eliminate it; it drives it into side conversations, passive resistance, and slow corrosion of collaboration that is much harder to address later.

The practical distinction that matters: conflict about ideas and approaches is healthy and should be encouraged. Conflict about personalities and status is damaging and should be redirected. When you see the latter, name it: “It seems like this has shifted from the decision itself to something else — let’s separate those two things.” That simple intervention redirects energy back to the substantive question without requiring anyone to back down.

5. Address the moments when teams regress

One of the most important things to understand about Tuckman’s model is that teams do not move through it linearly and permanently. Every significant disruption — a new team member, a change in leadership, a major project failure, a restructuring — can send a performing team back into storming. Recognizing this when it happens, rather than assuming something has fundamentally broken, is one of the most valuable things a team leader can do.

When regression happens, the intervention is usually the same as it was the first time through: name the disruption explicitly, re-clarify roles and operating norms that may have become ambiguous, and give the team structured time to rebuild the shared understanding that was disrupted. The second time through any Tuckman stage is typically faster than the first — the team has already learned the skills, it just needs to apply them to the new configuration.

6. Connect team dynamics to change management deliberately

Most change management programs focus on the organizational and process dimensions of change and assume team dynamics will sort themselves out. They rarely do. Every significant organizational change — a restructuring, a technology implementation, a strategic pivot — disrupts team dynamics even for high-performing teams that were well into the performing stage. The team’s roles, relationships, and operating norms are suddenly in question again, and without deliberate attention, the team regresses without anyone quite understanding why the change is taking longer than expected.

Integrating team dynamic awareness into change management means explicitly assessing where each affected team is in its development before the change begins, anticipating the regression that major disruption will cause, and planning the communication, norming, and leadership support the team will need to move back through the stages efficiently. This is the dimension of change management that most programs underinvest in — and one of the most reliable predictors of whether a change initiative achieves sustainable adoption or produces a technically complete implementation that reverts within six months.

Put This Into Practice With the Change Planning Toolkit™

The frameworks in this article are part of the Human-Centered Change™ methodology — a visual, collaborative system of 70+ tools built around the Change Planning Canvas™. Every copy of Charting Change gives you access to 26 of the 70+ tools.

Image Credit: Stefan Lindegaard, Unsplash

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AI as an Innovation Tool – How to Work with a Deeply Flawed Genius!

AI as an Innovation Tool - How to Work with a Deeply Flawed Genius!

GUEST POST from Pete Foley

For those of us working in the innovation and change field, it is hard to overstate the value and importance of AI.   It opens doors, that were, for me at least, barely imaginable 10 years ago.  And for someone who views analogy, crossing expertise boundaries, and the reapplication of ideas across domains as central to innovation, it’s hard to imagine a more useful tool.

But it is still a tool.  And as with any tool, leaning it’s limitations, and how to use it skillfully is key.  I make the analogy to an automobile.  We don’t need to know everything about how it works, and we certainly don’t need to understand how to build it.  But we do need to know what it can, and cannot do. We also need to learn how to drive it, and the better our driving skills, the more we get out of it.

AI, the Idiot Savant?  An issue with current AI is that it is both intelligent and stupid at the same time (see Yejin Chois excellent TED talk that is attached). It has phenomenal ‘data intelligence’, but can also fail on even simple logic puzzles. Part of the problem is that AI lacks ‘common sense’ or the implicit framework that filters a great deal of human decision making and behavior.  Chois calls this the  ‘dark matter’ common sense of decision-making. I think of it as the framework of knowledge, morality, biases and common sense that we accumulate over time, and that is foundational to the unconscious ‘System 1’ elements that influence many, if not most of our decisions. But whatever we call it, it’s an important, but sometimes invisible and unintuitive part of human information processing that is can be missing from AI output.    

Of course, AI is far from being unique in having limitations in the quality of its output.   Any information source we use is subject to errors.  We all know not to believe everything we read on the internet. That makes Google searches useful, but also potentially flawed.  Even consulting with human experts has pitfalls.   Not all experts agree, and even to most eminent expert can be subject to biases, or just good old fashioned human error.  But most of us have learned to be appropriately skeptical of these sources of information.  We routinely cross-reference, challenge data, seek second opinions and do not simply ‘parrot’ the data they provide.

But increasingly with AI, I’ve seen a tendency to treat its output with perhaps too much respect.   The reasons for this are multi-faceted, but very human.   Part of it may be the potential for generative AI to provide answers in an apparently definitive form.  Part may simply be awe of its capabilities, and to confuse breadth of knowledge with accuracy.  Another element is the ability it gives us to quickly penetrate areas where we may have little domain knowledge or background.  As I’ve already mentioned, this is fantastic for those of us who value exploring new domains and analogies.  But it comes with inherent challenges, as the further we step away from our own expertise, the easier it is for us to miss even basic mistakes.  

As for AI’s limitations, Chois provides some sobering examples.  It can pass a bar exam, but can fail abysmally on even simple logic problems.  For example, it suggests building a bridge over broken glass and nails is likely to cause punctures!   It has even suggested increasing the efficiency of paperclip manufacture by using humans as raw materials.  Of course, these negative examples are somewhat cherry picked to make a point, but they do show how poor some AI answers can be, and how they can be low in common sense.   Of course, when the errors are this obvious, we should automatically filter them out with our own common sense.  But the challenge comes when we are dealing in areas where we have little experience, and AI delivers superficially plausible but flawed answers. 

Why is this a weak spot for AI?  At the root of this is that implicit knowledge is rarely articulated in the data AI scrapes. For example, a recipe will often say ‘remove the pot from the heat’, but rarely says ‘remove the pot from heat and don’t stick your fingers in the flames’. We’re supposed to know that already. Because it is ‘obvious’, and processed quickly, unconsciously and often automatically by our brains, it is rarely explicitly articulated. AI, however, cannot learn what is not said.  And so because we don’t tend to state the obvious, it can make it challenging for an AI to learn it.  It learns to take the pot off of the heat, but not the more obvious insight, which is to avoid getting burned when we do so.  

This is obviously a known problem, and several strategies are employed to help address it.  These include manually adding crafted examples and direct human input into AI’s training. But this level of human curation creates other potential risks. The minute humans start deciding what content should and should not be incorporated, or highlighted into AI training, the risk of transferring specific human biases to that AI increase.   It also creates the potential for competing AI’s with different ‘viewpoints’, depending upon differences in both human input and the choices around what data-sets are scraped. There is a ‘nature’ component to the development of AI capability, but also a nurture influence. This is of course analogous the influence that parents, teachers and peers have on the values and biases of children as they develop their own frameworks. 

But most humans are exposed to at least some diversity in the influences that shape their decision frameworks.  Parents, peers and teachers provide generational variety, and the gradual and layered process that builds the human implicit decision framework help us to evolve a supporting network of contextual insight.  It’s obvious imperfect, and the current culture wars are testament to some profound differences in end result.  But to a large extent, we evolve similar, if not identical common sense frameworks. With AI, the narrower group contributing to curated ‘education’ increases the risk of both intentional and unintentional bias, and of ‘divergent intelligence’.     

What Can We do?  The most important thing is to be skeptical about AI output.  Just because it sounds plausible, don’t assume it is.  Just as we’d not take the first answer on a Google search as absolute truth, don’t do the same with AI.  Ask it for references, and check them (early iterations were known to make up plausible looking but nonsense references).  And of course, the more important the output is to us, the more important it is to check it.  As I said at the beginning, it can be tempting to take verbatim output from AI, especially if it sounds plausible, or fits our theory or worldview.  But always challenge the illusion of omnipotence that AI creates.  It’s probably correct, but especially if its providing an important or surprising insight, double check it.    

The Sci-Fi Monster!  The concept of a childish super intelligence has been explored by more than one Science Fiction writer.  But in many ways that is what we are dealing with in the case of AI.  It’s informational ‘IQ’ is greater than the contextual or common sense ‘IQ’ , making it a different type of intelligence to those we are used to.   And because so much of the human input side is proprietary and complex, it’s difficult  to determine whether bias or misinformation is included in its output, and if so, how much?   I’m sure these are solvable challenges.  But some bias is probably unavoidable the moment any human intervention or selection invades choice of training materials or their interpretation.   And as we see an increase in copyright law suits and settlements associated with AI, it becomes increasingly plausible that narrowing of sources will result in different AI’s with different ‘experiences’, and hence potentially different answers to questions.  

AI is an incredible gift, but like the three wishes in Aladdin’s lamp, use it wisely and carefully.  A little bit of skepticism, and some human validation is a good idea. Something that can pass the bar, but that lacks common sense is powerful, it could even get elected, but don’t automatically trust everything it says!

Image credits: Pexels

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Las Vegas Formula One

Successful Innovation, Learning Experience or Total Disaster?

GUEST POST from Pete Foley

In Las Vegas, we are now clearing up after the Formula 1 Grand Prix on the Strip.  This extremely complex event required a great deal of executional innovation, and one that I think as innovators, we can learn quite a lot from. 

It was certainly a bumpy ride, both for the multi-million dollar Ferrari that hit an errant drain cover during practice, but also with respect to broader preparation, logistics, pricing and projections of consumer behavior.  Despite this, race itself was exciting and largely issue free, and even won over some of the most skeptical drivers.  In terms of Kahneman’s peak-end effects, there were both memorable lows, but also a triumphant end result.   So did this ultimately amount to success?

Success?:   For now, I think it very much depends upon your perspective and who you talk to.  Perhaps it’s a sign of the times, but in Las Vegas, the race was extremely polarizing, with often heated debates between pro- and anti- F1-ers that were often as competitive as the race.

The reality is that it will be months, or more likely years before the dust settles, and we know the answer.  And I strongly suspect that even then, those who are for and against it will all likely be able to claim support for their point of view.  One insight I think innovators can take from this is that success can be quite subjective in of itself, and greatly depends upon what factors you measure, what period of time you measure over, and often your ingoing biases.  And the bigger and more complex the innovation, often the harder it is to define and measure success.  

Compromise Effects:  When you launch a new product, it is often simpler and cheaper to measure its success narrowly in terms of specific dollar contribution to your business. But this often misses its holistic impact.   Premium products can elevate an entire category or brand, while poorly executed innovations can do the opposite.  For example, the compromise effect from Behavioral Economics suggests that a premium addition to a brand line up can shift the ‘Good, Better, Best’ spectrum of a category upwards.  This can boost dollar sales across a line up, even if the new premium product itself has only moderate sales.   For example, the addition of high priced wines to a menu can often increase the average dollars per bottle spent by diners, even if the expensive wine itself doesn’t sell.  The expensive wines shift the ‘safe middle’ of the consideration set upwards, and thus increase revenue, and hopefully profit.      

Money, Scope and Intangibles:  In the case of F1, how far can and should we cast the net when trying to measure success?  Can we look just at the bottom line?  Did this specific weekend bring in more than the same weekend the previous year in sports betting, rooms and entertainment?  Did that difference exceed the investments? 

Or is that too narrow?  What about the $$ impact on the weeks surrounding the event?  We know that some people stayed away because of the construction and congestion in the lead up to the race.  That should probably be added into, or subtracted from the equation. 

And then there’s the ‘who won and who lost question’? The benefits and losses were certainly not homogeneous across stakeholders.  The big casinos benefited disproportionately in comparison to the smaller restaurants that lost business due to construction, some to a degree that almost rivaled Covid.  Gig workers also fared differently. I have friends who gained business from the event, and friends who lost.  Many Uber drivers simply gave up and stopped working. But those who stayed, or the high-end limo drivers likely had bumper weekends.   Entertainers working shows that were disrupted by F1 lost out, but the plethora of special events that came with F1 also provided a major uptick in business for many performers and entertainers.

There is also substantial public investment to consider.  Somewhat bizarrely, the contribution of public funds was not agreed prior to the race, and the public-private cost sharing of tens of millions is still being negotiated.  But even facing that moving target, did increased (or decreased) tax income before, during and after the race offset those still to be determined costs?

Intangibles:  And then there’s the intangibles.  While Vegas is not exactly an unknown entity, F1 certainly upped its exposure, or in marketing terms, it’s mental availability.   It brought Vegas into the news, but was that in a positive or negative light?  Or is all publicity good publicity in this context? News coverage was mixed, with a lot of negative focus on the logistic issues, but also global coverage of what was generally regarded as an exciting race.   And of course, that media coverage also by definition marketed other businesses, including the spectacular Sphere. 

Logistics:  Traffic has been a nightmare with many who work on the strip facing unprecedented delays in their commutes for many weeks, with many commutes going from minutes to hours.   This reached a point where casinos were raffling substantial prizes, including a Tesla, just to persuade people to not call in sick.  Longer term, it’s hard to determine the impact on employee morale and retention, but its hard to imagine that it will be zero, and that brings costs of its own that go well beyond a raffled Tesla

Measuring Success?  In conclusion, this was a huge operation, and its impact by definition is going to be multidimensional.  The outcome was, not surprisingly, a mixed bag.  It could have been a lot better, or a lot worse. And even as the dust settles, it’s likely that different groups will be able to cherry pick data to support their current opinions and biases. 

Innovation Insights:  So what are some of the more generalized innovation insights we can draw?

(a) Innovation is rarely a one and done process.   We rarely get it right first time, and the bigger and more complex an innovation is, the more we usually have to learn.  F1 is the poster child for this, and the organization is going to have an enormous amount of data to plough through. The value of this will greatly depend on F1’s internal innovation culture.  Is it a learning organization?  In a situation like this, where billions of dollars, and careers are on the line, will it be open or defensive?  Great innovation organizations mostly put defensiveness aside, actively learn from mistakes, and adopt Devils Advocate approaches to learn from hard earned data. But culture is deeply embedded, and difficult to change, so much depends on the current culture of the organizations involved.  

(b) Going Fast versus Going Slow:  This project moved very, very quickly.  Turning a city like Las Vegas from scratch into a top of the line race track in less than a year was a massive challenge.  The upside is that if you go fast, you learn fast.  And the complexity of the task meant much of the insight could pragmatically only be achieved ‘on the ground’.  But conversely, better scenario planning might have helped anticipate some of the biggest issues, especially around traffic disruption, loss of business to smaller organizations, commuting issues and community outreach.  And things like not finalizing public-private contracts prior to execution will likely end up prolonging the agony.  Whatever our innovation is, big or small, hitting that sweet spot between winging it and over-thinking is key. 

(c) Understanding Real Consumer Behavior.  The casinos got pricing horribly wrong.  When the race was announced, hotel prices and race packages for the F1 weekend went through the roof.  But in the final run up to the race, prices for both rooms and the race itself plummeted.  One news article reported a hotel room on the strip as low as $18!  Tickets for the race that the previous month had cost $1600 had dropped to $800 or less on race day.  Visitors who had earlier paid top dollar for rooms were reported to be cancelling and rebooking, while those locked into rates were frustrated.  There is even a major lawsuit in progress around a cancelled practice.  I don’t know any details around how pricing was researched, and predicting the market for a new product or innovation is always a challenge.  In addition, the bigger the innovation, the more challenging the prediction game is, as there are less relevant anchors for consumers or the business to work from.   But I think the generalizable lesson for all innovators is to be humble.  Assume you don’t know, that your models are approximate, do as much research as you can in contexts that are a close to realistic as possible, don’t squeeze margins based on unrealistic expectations for the accuracy of business models, and build as much agility into innovation launches as possible.  Easier said than done I know, but one of the most consistent reasons for new product failure is over confidence in understanding real consumer response when the rubber hits the road (pun intended), and how it can differ from articulated consumer response derived in unrealistic contexts. Focus groups and on-line surveys can be quite misleading when it comes down to the reality of handing over hard cash, opportunity cost, or how we value ur precious time short versus long-term term.

Conclusion: Full disclosure, I’ve personally gone through the full spectrum with Formula One in Vegas.  I loved the idea when it was announced, but 6 months of construction, disruption, and the prospect of another two months of tear down have severely dented my enthusiasm.  Ultimately I went from coveting tickets to avoiding the event altogether.  People I know range from ecstatic to furious, and everything in between.  Did I mention it was polarizing? 

The reality is that this is an ongoing innovation process.   There is a 3-year contract with options to extend to 10 years.  How successful it ultimately is will likely be very dependent upon how good a learning and innovation culture Formula One and its partners are, or can become.  It’s a steep and expensive learning curve, and how it moves forward is going to be interesting if nothing else.  And being Vegas, we have both CES and the Super Bowl to distract us in the next few months, before we start preparing again for next year. 

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