Setting Out On a Transformation Journey
Navigate by Taking the Essential Steps
by Andras Karacsonyi, Franz Schwarenthorer
Crafting Successful Transformation: Key Questions to Ask
Setting up a complex transformation process is certainly a skillful art. This essentially involves developing hypotheses about how an organization can be successfully propelled out of its current "dynamic" state of equilibrium and motivated to evolve. This raises a number of questions, such as: Who perceives the necessity for change? How can the whole team successfully acknowledge the need for change? How can we mobilize the organization and inspire people to embrace and commit to change? How do we ensure that the change will be sustainably established?
Our experience has shown that it is highly beneficial to set out on an entire transformation journey by consciously planning certain phases and processes.
By doing so, we draw a roadmap of the entire transformation, providing us with a high-quality plan and direction, as well as a reference point for making necessary adjustments and adaptations along the way. In this article, we will outline the key processes and phases that can help guide you along your transformation journey.
Basic processes as a guideline:
When planning a transformation journey, it is useful to define four basic processes for each phase:
- Steering the change: leading and managing the overall process, making pertinent decisions, ensuring buy-in
- Design and implement the change: analyze, design, and implement solutions
- Learning: focus on individual, team, and organizational learning throughout the change
- Communicating the change: informing, mobilizing, and engaging in meaningful dialogue
The intensity and scope of these processes may vary in each phase, but they are integral throughout the transformation.
Phases of the transformation journey
We distinguish among these key phases of transformation:
1. Initiating
To begin the transformation journey, it's crucial to establish a clear understanding of the initiators' ambitions. This involves working out the 'why' of the transformation and seeking out first pioneers who can contribute to the process. Creating a draft of a shared vision or identifying possible solutions and translating them into business and transformation objectives is another important step. Once an attractive vision has been developed it is crucial to assess the feasibility of the change, the availability of the resources and the possibility of barriers and obstacles. At the end of this phase, the transformation has been officially launched, and communication efforts can begin.
In this phase, it is essential to build a shared picture of the current situation by involving key stakeholders such as managers, employees, and works council members. This involves analyzing existing data and conducting exploration workshops. Gathering feedback from internal and external customers in customer conferences can raise awareness for the need for change. To encourage stakeholders to look forward, it can be helpful to draw inspiration from external sources, such as by conducting internet research, performing learning journeys, or exchanging information with speakers from innovative organizations. Once a shared, compelling vision has been created, the focus shifts to building momentum and harnessing the positive energy of the stakeholders.
At the end of this phase, pilots and experiments are planned to gain valuable experience and insights.
2. Awareness and direction
3. Prototyping
Experimentation, trial and error, and success provide valuable experiences that can shape the direction and process of transformation. Therefore, it is crucial to create appropriate frameworks to mobilize, encourage, and reward those who are willing to try new ways of doing things.
Learning through experimentation can nourish the competencies of all involved, the individuals, the team members, and the organization as a whole. The intentional approach toward experimentation allows for greater participation and valuable learning and reflection.
Once successful patterns have emerged based on prototyping, it is time to scale up what is new and integrate it into the organization's structures, roles, systems, and regular processes.
Here, guidance from change agents and facilitators, as well as reflection processes, are critical for supporting learning progress and realignment. By acting out controversies and removing obstacles, engagement with the new situation can be supported.
In this phase, what is new is more broadly implemented in the organization. This requires mobilizing the organization around what is new, aligning performance indicators to the desired state, and introducing employees to their new roles.
4. Scaling
5. Anchoring
After scaling, the new structures, processes, and roles have now been established. However, this does not necessarily mean that the implementation is complete. Frequently, "reset effects" appear at this point (i.e., people try to repeat old habits or at least run parallel processes or systems (old-new) in familiar ways). Therefore, it is necessary to remain consistent. On the one hand, clear leadership is particularly needed, both to provide a role model and to serve as a corrective measure. On the other hand, it is important to keep a close eye on team performance and collaboration and thus to anchor the new culture (mindset and behavior).
In these five phases two elements are particularly important:
Leading and steering
Steering means setting the direction, keeping an eye on change, supporting this change through decision-making mechanisms, removing obstacles, and generally creating a second operating system that supports change.
Leaders serve as role models in times of change, guiding people in the transition, and dealing with uncertainty and resistance. They also draw attention to successes and enable people to learn from their mistakes. Leadership teams as learning communities can contribute significantly to the overall success of the transformation.
Communicating
Conscious communication is important in all phases to create a culture of openness and energy that supports change. Information and participation through dialogue-oriented communication formats are the keys to success. Co-creating a change story and communicating key questions to all stakeholders, such as “Why do we need to change?”, “Where are we going?”, and “How will the process work?”, creates a good understanding of the background and direction of the change. Consistency and authenticity are also key. Addressing difficult issues and celebrating successes energizes people, promotes openness, and increases their participation.
Transformation roadmap – a case study
Combining all of the steps described above could lead to the creation of a transformation roadmap which might look something like this:
“Plans are worthless but planning is everything.” (Eisenhower)
Now the question arises: How can you plan in such detail when the actual course of a transformation is not really predictable? To quote Eisenhower "Plans are worthless but planning is everything..
In essence, it's all about planning the process from different angles and perspectives. Even if things turn out differently, the plan always serves as a basis for adjustments.
Wishing you all the best as you continue to transform!