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Five Key Digital Transformation Challenges

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Five Key Digital Transformation Challenges

GUEST POST from Howard Tiersky

Each year, I sit through dozens of hours of research sessions with consumers.

If there is one theme, I hear consistently it’s that consumers expect the brands they engage with to provide a flawless digital experience in their interactions. And though that’s a notion that is consistent across all age groups, it’s a theme we hear unanimously from millennials. It only takes a quick look around various industries to see that the companies that are delivering a strong, digitally-centric value proposition make up a substantial portion of the growth.

Meanwhile, we’ve recently witnessed that many legacy brands are shrinking (i.e., The Limited) or going out of business entirely (i.e., Sports Authority). The bottom line is that companies born before the digital age must substantially transform in order to remain relevant. As Jack Welch said in the year 2000 “If the rate of change on the outside exceeds the rate of change on the inside, the end is near.” Many great brands today are in just this situation.

It takes five miles for an aircraft carrier to turn itself around 180 degrees. If you are on that aircraft carrier while it’s engaging in that ‘quick turn,’ you better hold on to something solid because you’ll soon be tilting at a 30-degree angle. Many large companies are not comfortable with making the difficult and rapid hard left required to align themselves with how the world has changed.

Being in the business of helping companies through their digital transformations, I have observed that many of the companies that struggle digitally do employ super-sharp and visionary executives who see what needs to be done. However, those executives face massive challenges when it comes to enacting the kinds of changes that are necessary in order to make that digital leap. Most of the work I do involves partnering with heroic innovators trying to change large enterprises from within. As a result, I have an insider’s perspective on the biggest challenges these companies face when taking on transformation projects and, in fact, spend most of my time working to try to overcome them.

Based on first-hand experience, here are the top five challenges to digital transformation. If you are facing any of these challenges, the list below may, if nothing else, give you comfort that you are not alone.

1. Organizational Resistance to Change

My rough guesstimate is that perhaps 10-15% of people in the world love change. They are excited by constantly having new challenges to tackle and new things to learn. But for the other 85-90%, change equals pain. It means uncertainty, a challenge to their role or identity, and, worst-case scenario, possibly the loss of a job and their family’s security. After all, once you’ve got a good thing going, its natural not to want to see your apple cart overturned. Digital transformation, by its very nature, upsets a lot of apple carts.

However the truth is that in times of change, not changing is far more risky than taking the leap. It just doesn’t always feel that way.

The consequences of resistance to change manifest itself in a myriad of ways. Digital projects vital to a company’s future success can have trouble getting funded, resourced, or marketed. These projects may be modified so as not to threaten retail or partner brands. They are held back by concerns about cannibalizing other revenue sources. They are asked to justify ROI to an unreasonable level of certainty. They are sent through endless legal reviews.

Kodak invented the digital camera, but it was the internal resistance to change that led the company to bury it because it threatened the company’s legacy film business. Imagine what Kodak could have been had it done what Bell Atlantic did when it realized how bleak the future of landlines looked — it became Verizon, which is now a dominant figure in the broadband, wireless and cable television industries. Did mobile phones decimate the landline business? Yep. But Bell Atlantic “protected” itself by accepting that change was on the horizon, and transformed by making the difficult decisions required to adapt to that change.

The great architect and innovator Matt Taylor once said, “The future is rationale only in hindsight.” When Bell Atlantic was making those critical decisions that fundamentally transformed what it was as a company, the outcome was far from clear or free of risk.

2. Lack of a Clear Vision for a Digital Customer Journey

Companies that succeed in creating a digital customer value proposition don’t get there by accident. They develop a clear vision of how they will meet their customers’ digital needs, set objectives against that vision, and execute — often over the course of multiple years. Often times, companies that are not succeeding simply haven’t painted a clear picture of what they want — or need — to be when they digitally “grow up.” While clarifying this vision doesn’t get you there by itself, in fact its only one of many steps, not having a vision is like going on a road trip without a destination. It’s always possible you could stumble into something great, but probably not.

Companies still in the dark need to do four things:

  1. Take stock of your assets – your brand, your customers, your intellectual property, and the strengths and talents of your organization.
  2. Study your market to understand your customers’ unmet needs and what your competitors are doing.
  3. Be on top of technology trends, which includes keeping apprised of relevant emerging technology and shifts in consumer behavior as it pertains to technology.
  4. Establish processes designed to generate portfolios of potential ideas for the future state of the customer journey. These processes should allow your company to create business hypotheses and vet and test them via customer research. In turn, new ideas can be aligned to the vision for how the customer of the future should interact with the brand, iterating along the way as more learnings come in.

3. Ineffective Gathering and Leveraging of Customer Data

The root of digital success is customer data. There’s more to the tree than the root, to be sure, but whether it’s Facebook, Amazon, Netflix or Uber, digital success stories have the effective gathering, storing and leveraging of customer data at the core. Many organizations today have a myriad of siloed systems containing various scraps of data about customer interactions, but no clear way to pull them together. Others have petabytes of data centralized in an information warehouse that they may use for reporting. However, they haven’t figured out what to do with all that data in a manner that provides value to the customer.

Fixing this in the most efficient way often requires starting fresh, to a degree. Determine what are the ten to fifteen key attributes of a customer that would allow us to serve and sell to them more effectively. Of course, these attributes are different depending on the sector that a company operates in, but once they have been identified, the key is to figure out how to most effectively gather and store that data in a centralized place that can be easily accessed via any touch point.

When you take a simplistic approach to creating value at the outset, you are then in a good position to start looking at more complex pockets of customer data and considering how some of that data might enable you to enhance the experience further and how to link it in.

4. Inflexible Technology Stack and Development Processes

Successful digital experiences are achieved through iteration. Successful digital properties almost always iterate to success via the “test and learn” approach — where new features are being regularly added, measured, adjusted and pruned, based on user feedback and usage data. However, it is impossible to take this approach if your development process involves quarterly release cycles. Leveraging agile processes and technologies that support frequent, if not continuous, integration and product releases are critical behaviors that lead to effective digital results.

Additionally, part of the iteration process involves the need to adjust workflows, business rules, content presentation, and (potentially) leverage data in different ways than were originally envisioned when systems were built. Companies trying to build flexible and elegant digital experiences on top of out-dated technology stacks are tilting at windmills. You don’t necessarily have to discard the mainframe, but modern enterprises must make their data read/write accessible via robust and secure APIs, and provide access to their business logic in a way that’s independent of presentation layers. If your core systems were designed more than five years ago, they probably need major refactoring in order to support effective digital execution.

5. Married to Legacy Business Model

Lastly, real success in digital is rarely about providing the exact same products and services, just through a digital pipe. Netflix shifted from DVDs to streaming. Uber created the world’s largest car service without buying any vehicles or hiring any drivers, and similarly, eBay and Alibaba created the world’s biggest retail channels without buying any inventory.

Companies that successfully “cross the chasm” to digital effectiveness often discover they need to provide for free what they used to charge for, sell as a subscription what used to be “a la carte,” monetize via advertising things that used to be paid for in other ways, and re-think how they derive revenue from the value that they create. Those that do so flexibly can often find that the adoption of a digital strategy offers more scale, revenue and profit than the legacy approach, but it takes experimentation, an assumption of risk, and — to be blunt — some failure along the way. Whereas this approach is widely accepted among startups, it is one that the management and investors in mature companies generally fear. Yet, this is the gauntlet they must run in order to achieve digital success.

This article originally appeared on the Howard Tiersky blog

Image Credits: FreePik

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Innovation Mythbusters – Top 5

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Innovation Mythbusters - Top 5

GUEST POST from Janet Sernack

Amazingly Fabulous Tools is an award-winning, entrepreneurial market leader in the global machine engineering industry. The ambitious and proactive CEO Charlie Chaps invested in dispatching a Terrific Team of Enthusiastic Engineers to Silicon Valley to research, investigate, and report on how to capture and emulate the critical ingredients of its “secret innovative sauce.” Upon their return, the Terrific Team of Enthusiastic Engineers created and shared a beautiful, illustrated PowerPoint presentation with the board despite secretly knowing and passively avoiding saying that Amazingly Fabulous Tools could not replicate what they had discovered, primarily due to how the top five innovation myths clandestinely operated in the organization.

The Corporate Antibodies

This is due to their overt experience with the organization’s “innovation antibodies,” which cause an organization to resist change and protect the status quo. These antibodies consist of rigid people and inconsistent processes that extinguish a new idea as soon as it begins to course through the organization. In the Amazingly Fabulous Tool company, most people, especially the founders and the board, unconsciously and powerfully neutralized any forces that threatened to destabilize the company’s current state and stunt its growth by shutting down the fresh ideas and unconventional thinking their company badly needed.

Charlie Chaps built a fantastic, largely incomprehensible strategic plan with a BHAG, strategic goals, and sets of individual KPIs. This plan provided concrete evidence that reassured the board that the company was taking action to sustain its leadership position in the market and would take the business to the next level by growing its ROI. It also aimed to leverage the collective genius of its owners, Bob the Brave Builder and Eric the Energetic Entrepreneur, to ensure a legacy was left no matter who was at the helm.

The Innovation Culture Diagnostic Findings

A quantitative and qualitative cultural diagnostic revealed that people lacked permission, safety, and trust to speak up, rock the boat and challenge the status quo. It also showed that the organization lacked rigor in its process disciplines and a focus on developing its people’s capabilities.

It also revealed that Amazingly Fabulous Tools was secretly driven by its founders’ and sales directors’ self-interest and greed due to the highly competitive profit-share sales model. Not by an obligation and commitment to creating, inventing, designing, and delivering disciplined, innovative process improvements, products, and services that their customers purchased and did not appreciate and cherish.

This was a stark contradiction and barrier to the company’s ability to sustain its enviable global reputation. Finally, people believed that Charlie Chaps’ fantastic strategic plan, BHAG, goals, and KPIs were confusing and disconnected from the organization’s current reality and would not produce a collaborative and innovative organization.

So, they did not accept or apply the plan and kept safe by conducting business as usual.

The Top Five Innovation Myths

Because the corporate antibodies revealed that people unanimously believed each of the key myths, including:

Myth # 1: Innovation is a solo activity; people believe that ” only the owners can innovate.”
The Brutal Truth: Innovation is impossible without inclusion and collaboration, which are achieved through practical and disciplined teaming and networking.


Myth #2: Innovation is top-down; people believed they were not responsible or accountable for planning and were forced to be reactive. “The planning is difficult, that is for sure, because we are firefighting all the time, and that goes back to the frustration of not having enough time to do what needs to get done…and resources and …tools.”
The Brutal Truth: When people have the permission and safety to challenge the status quo, make mistakes, and are trusted to learn through experimentation, innovation can emerge anywhere in an organization, or team.


Myth #3: Innovation is about the newest thing; people believed that radical innovation was needed when agility was the problem; “The scary thing is our key competitor is getting more flexible (agile); we’re just getting more reliable (stable). It’s the stupid things that are so annoying. It’s the embarrassing things.”
The Brutal Truth: Innovation is guided by its strategic intent. It can be incremental, continuous, radical, breakthrough, disruptive, or differentiated, as there is no one best way of innovating.


Myth # 4: Innovation can’t be taught; people believed that they did not have to learn to improve or innovate when they encountered quality issues continuously; “A lot of times, it’s not because the customer wants the machine tomorrow but because we want to ship it tomorrow because we want to get it off the floor, we want to meet numbers, we want the cash. We usually drive the time frame and rush it out the door, creating many internal problems. It also creates problems externally with the customer when they think they’re getting a machine fully intact, but half its parts are missing….”
The Brutal Truth: Innovators are not born and are made. Anyone can learn to innovate,


Myth #5: You can’t force innovation; people were dis-empowered and did not take responsibility for influencing their environment to provide order and discipline; “It’s a traffic jam. That’s what we’ve got. It’s a traffic jam. Cars sitting bumper to bumper look like they are gridlocked. It represents the log jam of our activities. Where people are trying to push so many activities through two lanes of traffic when we’ve got six lanes worth of traffic.”
The Brutal Truth: Innovation can emerge when people have a sense of urgency, understand, and are motivated to engage in necessary, high-impact cultural and organizational change.

People must be prepared for it, change-ready and receptive, and intentionally pulled towards a compelling and desired future within an equalized environment that balances chaos and creativity with rigidity and discipline through rigorous planning.

The real costs to the organization

People believed that “This business makes money despite itself. There is potential to be truly great”. This was the most significant innovation antibody because there was no sense of urgency or even a financial or growth necessity to innovate. The company was quite comfortable with the status quo and had no reason to shift its habitual and unconscious comfort zone in ways that people and organizations must do to innovate because it involves being ready and receptive to mega-changes.

The significant investment in sending the Terrific Team of Enthusiastic Engineers to Silicon Valley sadly remained in the mythical realm of Innovation Dreamland.

So, lacking focus, discipline and rigor, the group of seriously qualified and intelligent engineers knowingly consistently dispatched faulty million-dollar machines to highly valued, global customers.

The cost of rework and brand erosion were considerable.

These machines required considerable analysis, problem-solving, and rework upon their return. Their costs were not recorded as repairs, causing the engineering division to be consistently over budget. Charlie Chaps reacted by restricting its budget and inhibiting its investment in critical research and development, which is needed to create, invent, and innovate to repair and sustain its global reputation as an innovator.

Innovation Dreamland remained a mythical and magical fantasy in Amazingly Fabulous Tools.

Sadly, the organization failed to shift its focus from challenge to opportunity because it could not resolve the corporate antibodies (implicit killers), remove the roadblocks, break down the internal cultural barriers to innovation and develop the agility necessary to become both a people-centric and customer-centric organization.

It lost an opportunity to make innovation a daily habit for everyone by failing to embed it in its organization as a way of life. It needed to empower, enable, and equip its talented, experienced and motivated people with the emotional energy, change, cognitive, and innovation agility to expose, challenge and resolve the underlying corporate antibodies.

It did not prioritize customer satisfaction and keep its promises by creating, inventing, and innovating high-value, quality products and services that improve the quality of their lives that are appreciated and cherished.

Many transformations and change-led innovation initiatives designed as strategic interventions fail due to a lack of alignment between strategy, structure, processes, and human skills, resulting in unproductive actions and poor human behaviors.

This is a short section from Chapter One of our new book, “Conscious Innovation – Empowering People to Be, Think and Act Differently in a Constantly Changing World”, which will be published in 2025.

Find out more about our work at ImagineNation™.

Please find out about our collective learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack, it is a collaborative, intimate, and profoundly 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 program.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem-focused, human-centric approach and emergent structure (Theory U) to innovation. It will also up-skill people and teams and develop their future fitness within your unique innovation context. Please find out more about our products and tools.

Image Credit: Wikimedia Commons

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Change Leaders Must Anticipate and Overcome Resistance

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Change Leaders Must Anticipate and Overcome Resistance

GUEST POST from Greg Satell

When Barry Libenson arrived at Experian as Global CIO in 2015, he devoted his first few months to speaking with customers. Everywhere he went he heard the same thing: they wanted access to real-time data. On the surface, it was a straightforward business transformation, but Libenson knew that it was far more complicated than that

To switch from batch processed credit reports to real-time access would require a technology transformation—from an on-premise to a cloud architecture—and in order to develop cloud applications effectively, he would have to initiate a skills-based transformation—from waterfall to agile development.”

So what at first appeared to be a straightforward initiative was actually three separate transformations stacked on top of one another. To make things even more difficult, people had good reason to be hostile to each aspect. Still, by being strategic about overcoming resistance from the start, he achieved a full transformation in less than three years.

Understanding Cognitive Biases

One of the key concerns about Libenson’s program at Experian was that the company would lose control over its business model. The firm had prospered selling processed credit reports. Giving customers real-time access to data seemed to undercut a value proposition that had proven itself over decades, almost as if McDonald’s decided to stop selling hamburgers.

These were not casual criticisms. In fact, they reflected instinctual cognitive biases that are deeply rooted in our consciousness. The first, loss aversion, reflects our tendency to avoid losses rather than seek out new gains. The second, called the availability heuristic, reflects our preference for information that is easy to access and internalize, such as the decades of profits generated by credit reports rather than the vague promise of a new cloud-driven business model.

A similar dynamic is plays out between the Black Lives Matter movement and police unions. One could argue, with significant evidence, that the smart play for police unions would be to come to some accommodation with protesters’ concerns to avoid more draconian policies later on. Yet after meticulously building their power base for decades, they have shown little willingness to make concessions.

Libensen and his team were able to navigate these challenges with two key strategies. First, he started with internal API’s, rather than fully open applications, as a keystone change,. That helped bridge the gap between the initial and desired future state. Second, the program was opt-in at first. Those program managers who were excited about creating cloud-based products got significant support. Those who weren’t were left alone.

Navigating Asymmetrical Impacts

Another obstacle to overcome was the fact that some people were more affected than others. In the case of Experian’s skills-based transformation from waterfall to agile development, which was essential to making the business and technology transformations possible, the change hit more senior personnel harder than junior ones.

Many of the project managers at the company had been doing their jobs for years—even decades—and took great pride in their work. Now they were being told they needed to do their jobs very differently. For a junior employee with limited experience, that can be exciting. For those more invested in traditional methods, the transition can more difficult.

Here again, the opt-in strategy helped navigate some thorny issues. Because no one was being forced to switch to agile development, it was hard for anyone to muster much resistance. At the same time, Libenson established an “API Center of Excellence” to empower those who were enthusiastic about creating cloud-based products.

As the movement to the cloud gained steam and began to generate real business results, the ability to build cloud-based projects became a performance issue. Managers that lagged began to feel subtle pressure to get with the program and to achieve what their colleagues had been able to deliver.

Overcoming Switching Costs

Experian facilitates billions of transactions a month. At that scale, you can’t just turn the ship on a dime. Another factor that increased the risk is the very nature of the credit business itself, which makes cybersecurity a major concern. In fact, one of Experian’s direct competitors, Equifax, had one of the biggest data breaches of the decade.

Every change encounters switching costs and that can slow the pace of change. In one particularly glaring example, the main library at Princeton University took 120 years to switch to the Library of Congress classification system because of the time and expense involved. Clearly, that’s an extreme case, but every change effort needs to take inevitable frictions into account.

That’s why Libenson didn’t push for speed initially, but started small, allowing the cloud strategy to slowly prove itself over time. As win piled upon win, the process accelerated and the transformation became more ingrained in the organization. Within just a few years, those who opposed the move to the cloud were in the distinct minority.

As General Stanley McChrystal explained in Team of Teams, he experienced a similar dynamic revamping Special Operations in Iraq. By shifting his force’s focus from individual team goals to effective collaboration between teams, he may have slowed down individual units. However, as a collective, his forces increased their efficiency by a factor of seventeen, measured by the amount of raids they were able to execute.

In every transformation, there is an inherent efficiency paradox. In order to produce change for the long-term, you almost always lose a little bit of efficiency in the short-term. That’s why it’s important to start small and build momentum as you go.

Leveraging Resistance To Forge A New Vision

Any change, if it is important and potentially impactful, is going to encounter fierce resistance. As Saul Alinsky noted, every revolution inspires its own counter-revolution. That’s why three quarters of organizational transformations fail, because managers too often see it as a communication exercise, rather than a strategic effort to empower those who are already enthusiastic about change to influence everyone else.

In the case of Experian’s move to the cloud, the objections were not unfounded. Offering customers real-time access to data did have the potential to upend the traditional credit report business model. Switching to a new technology architecture does raise cybersecurity concerns. Many senior project managers really had served the company well for decades with traditional development methods.

As Global CIO, Libenson could have ignored these concerns. He could have held a “townhall” and launched a major communication effort to convince the skeptics. Yet he did neither of these things. Instead, he treated the resistance not as an obstacle, but as a design constraint. He identified people who were already enthusiastic about the shift and empowered them to make it work. Their success built momentum and paved the way for what became a major transformation .

In fact, Experian’s cloud architecture unlocked enormous value for the firm and its customers. The company’s API hub made good on Libenson’s initial promise of supporting real-time access to data and today processes over 100 million transactions a month. It has also enabled a completely new business, called Ascend, now one of the company’s most successful products.

The truth is that bringing about fundamental, transformational change takes more than clever slogans and happy talk. The status quo always has inertia on its side and never yields its power gracefully. You need to be clear-eyed and hard-nosed. You need to understand that for every significant change, there will be some who seek to undermine it in ways that are dishonest, underhanded and deceptive.

The difference between successful revolutionaries and mere dreamers is that those who succeed anticipate resistance and build a plan to overcome it.

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

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Top 10 Human-Centered Change & Innovation Articles of August 2024

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Top 10 Human-Centered Change & Innovation Articles of August 2024Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are August’s ten most popular innovation posts:

  1. SpaceX is a Masterclass in Innovation Simplification — by Pete Foley
  2. Secrets to Overcoming Resistance to Change — by David Burkus
  3. Five Things Most Managers Don’t Know About Innovation — by Greg Satell
  4. Are We Doing Social Innovation Wrong? — by Geoffrey A. Moore
  5. Only One Type of Innovation Will Win the Future — by Greg Satell
  6. What Your Website Reveals About Your Brand — by Howard Tiersky
  7. The Coming Leadership Confidence Crisis — by Robyn Bolton
  8. Adjacent Innovation is the Key to Growth and Risk — by Robyn Bolton
  9. Bringing Emotional Energy and Creative Thinking to AI — by Janet Sernack
  10. Delivering Customer Value is the Key to Success — by Mike Shipulski

BONUS – Here are five more strong articles published in July that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

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Secrets to Overcoming Resistance to Change

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Secrets to Overcoming Resistance To Change

GUEST POST from David Burkus

Employee resistance to change is one of the most perplexing and challenging issues that business executives encounter. Senior leaders have mapped out a change initiative and, in the process, gotten themselves excited about the future only to find the rest of the organization doesn’t share their enthusiasm.

This resistance manifests in various ways, such as decreased productivity, higher rates of employee turnover and transfer requests, attitudes, unauthorized strikes, or work slowdowns. And in trying to overcome resistance to change, leaders often make structured, logical arguments for why the change is needed.

Arguments that fail to persuade.

What’s often overlooked is that employee resistance to change is most likely due to the emotions behind the change, not the change itself. And in examining those emotions, the late Carl Frost offered four key questions that people ask themselves when they’re being asked to change. The answers to these questions determine their excitement, or resistance, to change.

In this article, we will explore how to overcome resistance to change by addressing the emotions behind it and we’ll offer advice on how leaders can answer those four questions.

Question 1: Do we know where we’re going?

A clear and compelling vision of the future is necessary to overcome resistance to change. It is important to paint a clear picture of what the future of the organization looks like and include the individual being asked to make the change in that vision. When employees can see themselves as a part of the future, they are more likely to embrace the change. Additionally, it is crucial to ensure that the vision is shared at every level of the organization. This helps create a sense of unity and purpose, making it easier for employees to align themselves with the change.

By providing a clear direction and involving employees in the vision, leaders can address the uncertainty and fear that often accompany change. When employees have a clear understanding of where the organization is heading, they are less likely to resist and more likely to actively participate in the change process.

Question 2: Do we know why we’re going there?

Communicating the reasons for the change effectively is essential in overcoming resistance. Employees need to understand the changes in regulation, competition, or the economy that necessitate the change. It is important to avoid nostalgia for the old times before the change, as this can hinder progress. Instead, leaders should focus on selling people on why the change is necessary and beneficial.

By clearly explaining the rationale behind the change, leaders can address any doubts or concerns employees may have. When employees understand the need for change and how it will positively impact the organization, they are more likely to embrace it and actively contribute to its success.

Question 3: Do we know we can get there?

Confidence in the organization’s ability to achieve the vision is crucial for overcoming resistance to change. Leaders must build belief in the organization’s capacity to reach the new future. This can be done by addressing concerns about skills, resources, and capabilities. It is important to create a plan to acquire necessary skills and resources, ensuring that employees have the support and tools they need to succeed.

By addressing concerns and providing the necessary resources, leaders can instill confidence in employees and alleviate their fears about the change. When employees believe that the organization has the capability to achieve the vision, they are more likely to embrace the change and actively work towards its realization.

Question 4: Do we know that there is better than here?

Individuals need to believe that the change will benefit them personally in order to lessen their resistance. Leaders should paint a compelling picture of the change in their role and how it will be better. It is important to show how the change will result in personal growth and improvement. Additionally, leaders should address concerns about sacrifices, extra time, and learning new skills.

By addressing the personal benefits of the change and addressing personal concerns, leaders can help employees see the value in embracing the change. When employees understand how the change will positively impact their own lives, they are more likely to overcome resistance and actively engage in the change process.

Overcoming resistance to change is crucial for successful change initiatives. By addressing the emotions behind the change and answering the four questions, leaders can increase excitement, self-efficacy, and confidence in the change. That helps the organizational change itself find success and (hopefully) that success empowers every employee to do their best work ever.

Image credit: Pexels

Originally published on DavidBurkus.com on August 7, 2023

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Change the World With a Keystone Change

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Change the World With a Keystone Change

GUEST POST from Greg Satell

On December 31st, 1929, the Indian National Congress, the foremost nationalist group on the subcontinent, issued a Declaration of Purna Swaraj, or complete independence from British rule. It also announced a campaign of civil disobedience, but no one had any idea what form it should take. That task fell to Mohandas Gandhi.

The Mahatma returned to his ashram to contemplate next steps. After his efforts to organize against the Rowlatt Act a decade earlier ended in disaster, he struggled to find a way forward. As he told a friend at the time, “I am furiously thinking day and night and I do not see a way out of the darkness.”

Finally, he decided he would march for salt, which impressed almost no one. It seemed to be an incredibly inconsequential issue, especially considering what was at stake. Yet what few realized at the time was that he had identified a keystone change that would break the logjam and the British hold on power. Today the Salt March is known as Gandhi’s greatest triumph.

A Tangible And Achievable Goal

One of Gandhi’s biggest challenges was to connect the lofty goals and high-minded rhetoric of the elites who led the Indian National Congress with the concerns of everyday Indians. These destitute masses didn’t much care whether they were ruled by British elites or Indian elites and, to them, abstract concepts like “freedom” and “independence” meant little.

Salt, on the other hand, was something that was tangible for everyone, but especially for the poorest Indians and the British salt laws provided a clear and actionable target. All you had to do to defy them was to boil seawater to produce salt. What at first seemed trivial became a powerful call for mass action.

In my book, Cascades, I found that every successful movement for change, whether it was a corporate turnaround, a social initiative or a political uprising, began with a keystone change like Gandhi’s salt protests. To achieve a grand vision, you always have to start somewhere and the best place to begin is with a clear and achievable goal.

In some cases, as with voting rights in the women’s movement in the 19th century and, more recently, marriage equality for the LGBT movement, identifying a keystone change took decades. In other cases, such as improving worker safety in Paul O’Neil’s turnaround of Alcoa or a campaign to save 100,000 lives in Don Berwick’s quest to improve quality in medical care, the keystone change was part of the initial plan.

Involving Multiple Stakeholders

The concept of Indian independence raised a number of thorny issues, many of which have not been resolved to this day. Tensions between majority Hindus and minority Muslims created suspicions about how power would be structured after British rule. Similarly, coordinating action between caste Hindus and “untouchables” was riddled with difficulty. Christians and Sikhs had their own concerns.

Yet anger about the Salt Laws helped bring all of these disparate groups together. It was clear from the outset that everyone would benefit from a repeal. Also, because participating was easy—again, it was as simple as boiling sea water—little coordination was needed. Most of all, being involved in a collective effort helped to ease tensions somewhat.

Wyeth Pharmaceuticals took a similar approach to its quest to reduce costs by 25% through implementing lean manufacturing methods at its factories. Much like Gandhi, the executives understood that transforming the behaviors of 20,000 employees across 16 large facilities, most of whom were skeptical of the change, was no simple task.

So they started with one process — factory changeovers — and reduced the time it took to switch from producing one product to another in half. “That changed assumptions of what was possible,” an advisor that worked on the project told me. “It allowed us to implement metrics, improve collaboration and trained the supervisor to reimagine her perceived role from being a taskmaster that pushed people to work harder to a coach that enables improved performance.”

Breaking Through Higher Thresholds Of Resistance

By now most people are familiar with the diffusion of innovations theory developed by Everett Rogers. A new idea first gains traction among a small group of innovators and early adopters, then later spreads to the mainstream. Some have suggested that early adopters act as “influentials” or “opinion leaders” that spur an idea forward, but that is largely a myth.

What is much closer to the truth is that we all have different thresholds of resistance to a new idea and these thresholds are highly contextual. For example, as a Philadelphia native, I will enthusiastically try out a new cheesesteak place, but have kept the same hairstyle for 30 years. My wife, on the other hand, is much more adventurous with hairstyles than she is with cheesesteaks.

Yet we are all influenced by those around us. So if our friends and neighbors start raving about a cheesesteak, she might give it a try and may even tell people about it. Or, as network theory pioneer Duncan Watts explained to me, an idea propagates through “easily influenced people influencing other easily influenced people.”

That’s how transformative ideas gain momentum and it’s easy to see how a keystone change can help move the process along. By starting out with a tangible goal, such as protesting the salt tax or reducing changeover time at a single factory, you can focus your efforts on people who have lower thresholds of resistance and they, in turn, can help the idea spread to others who are more reticent.

Paving The Way For Future Change

Perhaps most importantly, a keystone change paves the way for larger changes later on. Gandhi’s Salt March showed that the British Raj could be defied. Voting rights for women and, later, blacks, allowed them to leverage their newfound power at the polls. Reducing changeover time showed how similar results could be achieved in other facets of manufacturing. The 100,000 lives campaign helped spur a a quality movement in healthcare.

None of these things happened all at once, but achieving a keystone change showed what was possible, attracted early adopters to the cause and helped give them a basis for convincing others that even more could be achieved. As one of Gandhi’s followers remarked, before the Salt March, the British “were all sahibs and we were obeying. No more after that.”

Another benefit of a keystone change is that it is much less likely to provoke a backlash than a wider, sweeping vision. One of the reasons that the Salt March was successful is that the British didn’t actually gain that much revenue from the tax on salt, so were slow to react to it. The 100,000 lives campaign involved only six relatively easy to implement procedures, rather than pushing hospitals to pursue wholesale change all at once.

So while it’s important to dream big and have lofty goals, the first step is always a keystone change. That’s how you first build a sense of shared purpose and provide a platform from which a movement for change can spread. Before the Salt March, Gandhi was considered by many to be a Hindu nationalist. It was only after that he truly became an inspiration to all Indian people and many others around the world.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credits: Pexels

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Derision Means You’re Doing It Right

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Derision Means You're Doing It Right

GUEST POST from Mike Shipulski

When you see good work, say so.

When you see exceptional work, say so in public.

When you’ve had good teachers, be thankful.

When you’ve had exceptional teachers, send them a text because texts are personal.

When you do great work and no one acknowledges it, take some time to feel the pain and get back to work.

When you do great work and no one acknowledges it, take more time to feel the pain and get back to work.

When you’ve done great work, tell your family.

When you’ve done exceptional work, tell them twice.

When you do the work no one is asking for, remember your time horizon is longer than theirs.

When you do the work that threatens the successful business model, despite the anguish it creates, keep going.

When they’re not telling you to stop, try harder.

When they’re telling you to stop it’s because your work threatens. Stomp on the accelerator.

When you can’t do a project because the ROI is insufficient, that’s fine.

When no one can calculate an ROI because no one can imagine a return, that’s better.

When you give a little ground on what worked, you can improve other dimensions of goodness.

When you outlaw what worked, you can create new market segments.

When everyone understands why you’re doing it, your work may lead to something good.

When no one understands why you’re doing it, your work may reinvent the industry.

When you do new work, don’t listen to the critics. Do it despite them.

When you do work that threatens, you will be misunderstood. That’s a sign you’re on to something.

When you want credit for the work, you can’t do amazing work.

When you don’t need credit for the work, it opens up design space where the amazing work lives.

When your work makes waves, that’s nice.

When your work creates a tsunami, that’s better.

When you’re willing to forget what got you here, you can create what could be.

When you’re willing to disrespect what got you here, you can create what couldn’t be.

When your work is ignored, at least you’re doing something different.

When you and your work are derided, you’re doing it right.

Image credit: Pexels

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Resistance to Innovation – What if electric cars came first?

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Resistance to Innovation - What if electric cars came first?

GUEST POST from Dennis Stauffer

In his acclaimed book the The Diffusion of Innovations—the most-cited work in all the social sciences—Everett Rogers explained how innovations frequently meet resistance. Resistance that isn’t always rational. How all-too-often we’re willing to accept the status quo despite its flaws and reject new options despite their benefits.

We’re seeing exactly this phenomenon with electric vehicles. Demand from what Rogers identified as the early adopters—wealthy buyers who can pay a premium for the newest technology—has largely been met. The challenge now is to reach a broader market of buyers with more practical concerns about cost, range, reliability, and safety. News articles and commentary are popping up noting those concerns and expressing doubts about just how useful electric cars really are. The lack of charging stations, the environmental impact of mining lithium, the danger of battery fires, and potential strains to the electrical grid. There are some legitimate concerns, but how much of that skepticism is grounded in the reality of electrification and how much is good old-fashioned resistance to change?

To answer that question, let’s turn the tables. What if electric cars came first, and we’re trying to introduce internal combustion engines? Here are some predictable—and quite similar—objections.

  • How can we possibly build all the gas stations we’re going to need, and should we? (If electrification is the entrenched technology, we’d have plenty of charging stations everywhere.)
  • Do you really want trucks carrying 10,000 gallons of highly explosive gasoline driving down the highway next to you? Accidents happen! Do you want 20 gallons of it parked in your garage, waiting for just one spark to set it off—taking your house with it?
  • You can charge your electric car at home while you sleep, or at a charging station while at work. You can’t do that with a gasoline engine. You must go somewhere to buy gas, take time to get there, and then stand next to a hose pumping one of the most flammable liquids we know of.
  • We’re going to need a lot of that gasoline. Where will we find it, and at what environmental cost? Are we going to start drilling everywhere? Even in the ocean, the arctic, and in fragile ecosystems?  Are we going to have massive tankers crisscrossing the oceans? What if there’s a leak or a spill?
  • How are we going to build all the refining capacity we’ll need to process and transport all that gas? That’s a massive investment. Who’s going to pay for it?
  • What if we need to get that gas from countries that don’t like us? Will they refuse to sell to us or charge exorbitant prices? Will we make our enemies rich?
  • Gasoline is more expensive per mile driven than electricity, and because it’s a commodity, its price fluctuates—sometimes a lot. You never know what you may have to pay.
  • Gasoline engines are a lot more expensive than electric motors. They’re much more complex and since we’re building them in smaller numbers at first, carmakers don’t have the same economies of scale.
  • Internal combustion engines are more complex to repair. How often will your car need to be fixed? Will your mechanic know how?
  • What about air pollution? Just one internal combustion car emits 4.6 metric tons of carbon dioxide each year. Multiply that by all the cars on the road!
  • Would you like a car that’s slower? The most powerful—and most expensive—internal combustion cars on the road have less torque than a typical electric vehicle. That means less acceleration when you need to pass someone.

Some of these concerns are a bit overblown — just like some of the concerns about electric cars. But others are entirely valid. Yet too often we shrug them off because we’ve already accepted those costs, inconveniences, and dangers.

What we’re seeing with electric cars is the same progression we saw with early automobiles, airplanes, hybrid crops, personal computers, and many other now widely popular innovations. We’ll get there, but not without some pushback.

Image Credit: Pixabay

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How to Defeat Corporate Antibodies

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A Guide to Beating Resistance

How to Defeat Corporate Antibodies

GUEST POST from Stefan Lindegaard

Imagine yourself as the CEO of a mid-sized organization that’s struggling to grow and adapt to the ever-changing business landscape. You decide that it’s time for a significant transformation, which will involve new partnerships, revamped processes, and a shift in the company’s culture.

Despite the potential benefits, the proposed changes are met with strong resistance from within the organization. Corporate antibodies, individuals who fight against innovation and maintain the status quo, are now the biggest challenge to overcome.

In this guide, we’ll walk you through a story that illustrates the impact of corporate antibodies on organizational development and explores the role of organizational culture, leadership, and employee engagement in fostering a supportive environment for change.

A Tale of Two Teams

In our fictional organization, there are two departments that perfectly illustrate the impact of corporate antibodies on organizational development: the marketing team, led by an open-minded and forward-thinking manager named Susan, and the finance department, led by a risk-averse and conservative manager named Mark.

Susan’s marketing team is known for embracing new ideas and encouraging collaboration. She has created a culture where employees are motivated to share ideas, challenge assumptions, and learn from failures. On the other hand, Mark’s finance team resists any proposed changes and defends the status quo. Mark is wary of any initiatives that could disrupt the stability of his department and is often skeptical of suggestions coming from outside his team.

The Power of Culture

One day, during a company-wide meeting, the CEO announces a new partnership with a cutting-edge technology company to streamline processes, reduce costs, and drive innovation across the organization.

Susan’s marketing team quickly embraces the idea, eager to explore the opportunities this partnership could bring. They begin brainstorming ways to integrate the new technology into their work and share their ideas with other teams.

In contrast, Mark’s finance team reacts with apprehension and skepticism. They question the need for such a drastic change and raise concerns about potential disruptions to their well-established processes. Mark himself is hesitant to support the initiative, fearing that it might expose weaknesses within his department and lead to a loss of control.

Detecting Corporate Antibodies

The stark difference between the two teams becomes apparent during meetings and discussions about the upcoming transformation. The finance team, led by Mark, expresses their resistance through statements like:

  • “We already tried something similar, and it didn’t work.”
  • “Our current process has worked fine for years; there’s no need to change.”
  • “If that were a good idea, we’d already have thought of it.”

Some individuals in the finance team genuinely believe they’re looking out for the company’s best interests, while others prioritize their personal interests or fear the potential consequences of change.

The Battle Begins

As the transformation moves into the incubation phase, the tensions between the two teams escalate. Susan’s marketing team starts working closely with the new technology partner, sharing their progress and achievements with the rest of the organization. They demonstrate the positive impact of the change initiative and inspire other departments to get on board.

Meanwhile, Mark’s finance team continues to resist the change, erecting roadblocks and questioning every decision made by the marketing team and the technology partner. Their relentless negativity creates a tense atmosphere and slows down the progress of the transformation.

The Turning Point

As the organization enters the Acceleration stage, the CEO recognizes the need to address the corporate antibodies that are hindering the company’s growth. She decides to implement the following strategies to manage resistance and foster a more supportive environment for change:

  1. Engage potential blockers: The CEO invites Mark and key members of his finance team to participate in decision-making processes, ensuring they feel valued and included. By involving them in shaping the transformation, she gradually turns some of the blockers into backers.
  2. Encourage open communication: The CEO fosters a culture where employees can voice their concerns and suggestions without fear of backlash. This allows the organization to identify and address potential issues early on, reducing the likelihood of resistance emerging later in the process.
  3. Provide support and resources: The CEO allocates resources to offer training and support to employees who need help navigating the change process. This alleviates anxieties and creates a more positive attitude towards the change initiatives.
  4. Celebrate successes: The CEO acknowledges the achievements of Susan’s marketing team and other departments that have embraced the change. Recognizing progress and milestones helps maintain morale and motivation while demonstrating the benefits of the transformation.
  5. Foster collaboration across departments: The CEO organizes cross-functional workshops and team-building activities that encourage employees from different departments to work together. This helps break down silos and promotes a greater understanding of the benefits of the change initiative across the organization.
  6. Appoint change champions: The CEO identifies key influencers within the organization who can help advocate for the change and address concerns from their peers. These change champions play a critical role in maintaining momentum and enthusiasm for the transformation.
  7. Establish a feedback loop: The CEO implements a system for collecting regular feedback from employees about the progress of the transformation. This allows the leadership team to monitor the effectiveness of their strategies, make necessary adjustments, and address any emerging concerns promptly.

With these additional strategies in place, the organization begins to witness significant progress in its transformation journey. The impact of the corporate antibodies is gradually diminished, and a culture of innovation and adaptability starts to flourish.

Monitoring Progress and Ensuring Long-term Success

The CEO understands the importance of monitoring progress and adjusting strategies as needed to ensure the long-term success of the transformation. To do this, she establishes a set of key performance indicators (KPIs) that help track the progress of the change initiatives and their impact on the organization. These KPIs may include employee engagement, cross-functional collaboration, efficiency gains, and financial performance.

Additionally, the CEO remains vigilant for signs of lingering resistance or the re-emergence of corporate antibodies. By maintaining open lines of communication and actively soliciting feedback from employees, she can quickly identify and address any issues that might hinder the organization’s development.

The conclusion is that identifying and tackling corporate antibodies is essential for successful organizational growth and transformation. By understanding the reasons behind their emergence and applying effective strategies to manage them, organizations can build a positive environment for change and promote long-lasting progress.

Emphasizing a strong organizational culture, good leadership, and employee engagement can help ensure your organization’s development efforts succeed, leading to a more resilient and adaptable business in a constantly changing world.

Image Credit: Stefan Lindegaard

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Kickstart Change with Reclaimed Focus and Attention

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Kickstart Change with Reclaimed Focus and Attention

GUEST POST from Janet Sernack

In 2019 we experienced the shock and the pain that resulted from the globally disruptive global Covid 19 pandemic. To both survive and thrive in the new decade of uncertainty, many people still need help and guidance to connect to, understand and manage their anxieties, fears, inertia, and confusion about the future to effectively ride the waves of disruptive change. Yet, according to Johann Hari, in his best-selling book – Stolen Focus, all over the world, our focus and attention have been stolen, and our ability to pay attention is collapsing, and we need to be intentional in reclaiming it.

He describes the wide range of consequences this has on our lives, which are further impacted by pervasive and addicting technology we are being forced to use in our virtual world, exasperated by the pandemic and the need to work virtually, from home. He reveals how our dwindling attention spans predate the internet, and how its decline is accelerating at an alarming rate.

He suggests that if we want to get back our ability to focus, stop multitasking and practice paying attention. Also, if we want to kickstart change and help people feel confident in their readiness, competence, and capacity to change and innovate in a world of unknowns, it all starts with improving our ability to pay deep attention to what is really going on.

Yet, in the thesaurus there are 286 synonyms, antonyms, and words related to paying attention, such as: listen, and giving heed, so what might be the key first steps to take in reclaiming your focus and attention?

Power of focus and attention

  • Energy flows where attention goes

Placing our focus and attention activates our energy, and our energy flows where our attention goes.

So, if you have been feeling tired and lethargic, or overwhelmed and burned out, then take a moment to consider how you might score yourself on an attentive-distractive continuum and consider how similar, or different you are to US college students who can now focus on one task for only 65 seconds, and where office workers on average manage only three minutes?

  • Being intentional

Involves getting clear upfront about what you want to achieve, by setting an intention to achieve a specific outcome or result in the future that is important to you.  In a world of unknowns, paying deep attention and being intentional are the key foundations for recovery, rebalance, and transformation.

Limiting ways of seeing, being, and acting in the world  

Many people are still experiencing unconscious intrinsic, or reactive responses to their pandemic-induced work situations and are suffering from stress overload, overwhelm, and burnout.

This is because our autonomic nervous systems, which control our cardiovascular, respiratory, digestive, urinary, and reproductive functions, and responses to stress, operate outside of our conscious control in two different and co-dependent and often competing systems.

  • Parasympathetic fight or flight system

Put very simply, our sympathetic nervous systems get overloaded by heightened stress levels, which ignite our protective fight or flight system, which normally allows our bodies to function under stress and danger, and, as a result, impacts significantly on our levels of tiredness, exhaustion, and burnt-out emotional, mental and physical states.  This exasperates our inherent, unconscious needs to self-preserve (gut), feelings of isolation and loneliness (heat), and having the limited presence of mind (head) and reverts many of us into survival mode, and shift out of alignment, where we become physiologically incoherent (out of balance).

Which is not conducive to knowing and activating what we can truly, really, and actually influence and control in our lives, which requires us to effectively balance chaos with order.

  • Reduced capacity

When operating in survival mode, we are unable (like the US College students) to take the sacred pauses we need to make the space to attend and observe, through retreat, and reflection.

We are no longer able to access our inner knowing, play in the space of possibility, create a normalized state of equilibrium and calm, and be coherent and congruent in our daily lives.

Our overall capacity to set clear goals, make smart decisions, creatively solve problems, courageously take the right actions, harness our intuition, compassionately cultivate understanding and perception, develop good relationships, learn and develop, and finally, our health and well-being, are significantly reduced.

Initiate reclaiming focus and attention

Because we don’t know if companies will ever return to their pre-pandemic-like worlds, and become future-fit, people need to be reskilled in how to focus, how to observe, how to deeply focus and attend, and how to be intentional.

Developing daily habits to be focused and productive

  1. Being intentional about breathing

 To help balance and initiate harmonizing our autonomic nervous systems, develop physiological coherence, to respond optimally to the world, starts with developing focus and attention on your breath.

Doing this helps your neurology to relax, reduce stress and anxiety, increase calmness, and reconnect to the self.

Sounds simple, yet in my global coaching practice, clients would often turn up feeling overwhelmed and incoherent, so we would begin the session with a “box breathing” exercise. This involves breathing while you slowly count to four for a total of four times – four counts of breathing in, four counts of holding your breath, four counts of exhaling, and four more counts of holding after your exhale. We could both be grounded, and coherent, to partner and connect in high-impact and productive sessions.

  1. Being intentional in stepping away from your screens

According to one 2019 survey of 1,057 U.S. office workers, 87 percent of professionals spend most of their workday staring at screens: an average of seven hours a day. Closing your laptop and taking a quick walk outside, in nature allows your brain to recharge for your next task, and enables your autonomic nervous system to take a well-deserved break and calm down.

Sounds simple, yet in my global coaching practice, clients found this very difficult to do, this might involve no TV screens in bedrooms, leaving phones outside bedrooms, turning phones off at 8.00 pm, buying an alarm clock, setting and sticking to a dedicated start and finish work times, taking regular lunch breaks outside in nature and coffee breaks with friends. Be playful and allow your mind to enjoy wandering into wondering.

  1. Working in focused intervals

A recent article in Inc stated that –  “In addition to the seven or eight hours of adequate sleep that so many entrepreneurs and CEOs neglect, taking smart breaks during your workday, and having longer periods of downtime are keys to being more productive”.

Sounds simple, again in my global coaching practice I had to negotiate with clients to be intentionally disciplined and methodical in planning their days, weeks, and months. This involved scheduling time to initiate or sustain a mindfulness or meditation practice, engage in a regular exercise program, go shopping to buy and eat healthy foods (eliminating desk-side snacks), being clear on key deliverables and breaking down key tasks into bite-size bits, and saying no to meetings that don’t contribute towards achieving these.

When we change the way we attend, a different world can come forth, for ourselves, others we are interacting with, and the environment we are operating within. When we know how to really, truly, and deeply attend, and observe, we can go to our place of deeper knowing, rethink and then act swiftly and inflow to effect the transformational breakthroughs that change the world as we know it.

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, which can be customized as a bespoke corporate learning program.

Image Credit: Pixabay

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