Moments of Insight Designing for sustainable transformation - EDITION 2: Transform for Value
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Table of contents Editorial................................................................................................................................ 3 Your input and thoughts on sustainable transformation.........................4 The 4 main topics arising from the research....................................................6 Transformation design...............................................................................................10 2
Hello and welcome to the second edition of Moments of Insight As we move out of the COVID pandemic and into an even more interconnected world and workplace, the need for adaptability, resilience and sustainable change is becoming more and more pressing. My hands-on experience of operational change and its associated behaviours keeps me on my quest to continually remain curious and constantly question myself and others on human reactions to change, and to move the needle on transforming organisational culture. Creating deliberately developmental practice in organisations and understanding the dynamics of human systems are key to creating powerful communities and driving change, albeit identifying constraints and challenges along the way. As ever with Moments of Insight, I am researching topics with a view to gathering input from diverse and engaged leaders across the globe, to obtain different perspectives as well as a collective understanding of how to change the way we view and manage these subjects. I launched this second subject to engage in dialogue on digital transformation and what elements are required for it to be sustainable. With such a vast topic, you cannot claim to have really bottomed it out in only six weeks, but in keeping with agile practice, the data we have collected will serve as a starting point for further iteration, understanding and to evolve good practice. Today, change is the constant, and we need to continuously question ourselves to create a more adapted, inclusive and agile workplace. Thanks again for your input and interest. Enjoy! Suzie Lewis 3
1 Your input and thoughts on sustainable transformation The word cloud below summarises your answers to my Moments of Insight question: what would be the three main points that would need to be addressed to create sustainable transformation in your organisation today? 4
Digital transformation is clearly a phrase everyone uses, but what does transformation actually mean and how do leaders and organisations go about it? How do you create an understanding of the different skills, ways of working and culture that you need to move forward and how do you anchor these changes in the DNA of your organisation ? We can see from your contributions that change is never easy, it is multi-layered, and that transformation is essentially about people not processes or technology. We are currently defining the future workplace where we need to rebalance our habits, our operating models and our approach to the employee experience. It is interesting to hear the different perspectives on how to go about this in a way that creates the momentum for changing the environment we live and work in, and the main challenges facing organisations and leaders today when trying to create sustainable transformation. 5
2 The 4 main topics arising from the research Vision & purpose COVID has shown, we can be adaptable whilst still resisting change. “It’s only when companies are clear about their We are currently looking for more agile and purpose, have clearly communicated it, and it sustainable ways of working which in turn demand is understood by the team, that companies can more empowerment, accountability, autonomy achieve both unity of effort and distributed decision and trust. Leaders are having to change their making.” – Marc Koehler current paradigms of the older more traditional models, understand the new needs and landscape, One of the biggest challenges companies face and be open to taking their people on a journey currently is the move from ego to eco. Moving away of growth to get to where the organisation needs from an individual bias to a more collective focus, to go. This starts with cultivating and driving a or from silo-ed to more networked structures vision and purpose that motivates employees and in the workplace, is shifting the boundaries of provides a north star. We need something that is organisations, changing the way we work and bigger than us to keep us motivated, engaged and requiring different leadership skills. The COVID give us a sense of belonging, particularly when the pandemic compounded this and brought with it going gets tough: something we can constantly. opportunities and challenges, but irrespective of We can constantly translate back into our daily this, it catapulted organisations, leaders and society activities wherever we sit in the organisation and into a more digitally yet less humanly connected use to understand our contribution and the value environment. Digital already brought with it lots of we bring. paradoxes: more connected but less certain, more data and insight but more unknown opportunities, Collective purpose is the most important element more speed but less time for adapting to change. of all because it is the north star but also provides In fact, change has become the constant, and the glue that holds teams and peers together. In humans are not wired for change. Indeed we framing collective purpose, you create the space are far more wired for certainty and safety, and to collect multiple perspectives and different ideas feeling that we have some sense of control, but as 6
to healthily challenge how to achieve said purpose, and personal agency within the organisation is and how to adapt and collaborate differently to key to creating sustainable change. Creating do so. This creates a space for collective learning an environment where there is permission and and contributions to the bigger picture. freedom to act and experiment also allows people to start changing their perception of ‘failure’ The theme of learning, unlearning and relearning and to see it as part of the process of learning – is key here as we look at the second point about deliberately designing for change and iterating for understanding the need for collective learning as impact. well as how to build a culture that allows this. Digital has revolutionised the learning landscape as well as the skills landscape, and understanding Learning: connecting the new skills you need is pivotal to sustainable people and ideas transformation. These skills are not just digital (cloud, robotics, etc.) or data-driven (data analytics, “Success is not final, failure is not fatal: it is the data science, etc.), they are also managerial, courage to continue that counts.” interpersonal and intercultural. This is a huge topic, Winston Churchill but again, using the holistic overview to understand how you can break it down into smaller, more Keeping pace with the changing face of learning manageable blocks allows you to connect people is one of the biggest levers for transformation. with ideas, go from idea to proof of concept Learning how to learn, unlearn and relearn is and experiment with new skills whilst creating pivotal to aligning approaches and behaviours. We momentum in the organisation. This is not about must consciously build a more human-centred scaling the solution, but about understanding system. Transformation is all about continuous the needs and problems so that you can test learning and taking people on that learning assumptions and approaches to reach an eventual journey. It is not a technical project, or an IT solution. This learning is a continual iterative loop roadmap, although clearly you need a roadmap, and full of challenges and opportunities for your but is much more a mindset of continuous people and culture. learning. It is a way of being that is built on an understanding of the need to constantly learn, A simple example of this would be looking at one unlearn and relearn (in general) as well as the fundamental skill, data science for example, or need to put learning on the strategic business empathy, and analysing how big the skills gap is. agenda as a lever for innovation and sustainable You can then look at how to manage the upskilling change. Here, as we have seen in the purpose process. Do you need to recruit new talent? Build part, always dream big but don’t start big – a centre of competence in-house? Look in your start small. Connecting people and ideas and existing employee population to see what ‘hidden’ celebrating achievements to build credibility skills and potential lie within your organisation? 7
This can be full of learning, surprises, motivation projects’ is not taken to the systems level of driving and engagement. It also offers levers for it through the different structures and processes culture change and proactively coaching the of the organisation, be it a reward process, talent organisation to a different level of maturity on this management process, strategic objective setting particular skill and the opportunities this offers for process or governance. This brings with it a need different ways of working. to look at how information is shared across departments and teams, how power is perceived This brings us to the topic of structure and process and experienced and how governance allows or and the more technical side of the transformation. inhibits more collaborative, networked ways of working. Structure & process: setting the organisation Collective intelligence is talked about a lot and is incredibly powerful. Digital enables collaboration up for success on a massive scale, driven by purpose across boundaries, silos, locations and organisations. But “To change something, build a new model that tools alone, however powerful, do not bring human makes the existing model obsolete.” collaboration. Culture, though, can create this R. Buckminster Fuller enabling environment. The results of my research during COVID tell us that 85% of the senior leaders surveyed were only Culture: coaching ‘moderately confident’ about their organisation’s the organisation to a capacity to take on board the lessons learnt from different level of maturity the lockdown period of remote working. “Culture eats strategy for breakfast.“ Understanding the outcomes of how people Peter Drucker experienced this unprecedented transformation will allow organisations to make those changes This is a well-known saying that still rings true, sustainable. So what changes are we talking about? even more so in today’s environment, where The ones that they have defined as ‘their model’ – leaders and organisations are undergoing massive the way they want to think, act and interact within transformation and we can never underestimate their organisation but also the way they want to the lever that culture represents here. This is design their organisation in terms of structures about coaching the organisation to a different and processes moving forward. level of maturity and moving beyond the visible elements to a deeper understanding of what the A lot of change initiatives fail because the changes, organisational culture is driving and rewarding in engagement and momentum generated by ‘change terms of assumptions, bias and expectations. 8
There was a lot of feedback on the importance We come back here to the idea of actively of culture, community and communication in understanding the different cultural assumptions enabling sustainable transformation. and layers of ‘how things are done’. Looking at what is rewarded, what is ‘accepted’ and what is inhibiting • It can be led through the momentum created by more open communication and a safer space for connecting like-minded people people to express themselves and form powerful communities. You cannot ask for innovation and • It can be leaders actively empowering their transformation and then squash it when it gets to people through clear communication and the top. The former points of collective purpose, permission to experiment learning and designing the system actively for sustainable change, build the confidence of the • It can be listening more intently to understand people and the system to dare to act differently; the fears and assumptions of the collective system to try out new things and challenge the status to normalise this discussion quo; to engage in the journey of change, however daunting; and to call out things that are inhibiting • It can be developing and aligning on the same this change to create exciting opportunities. “language” so that everyone understands the Unless we involve people, understand their drivers and impacts of the transformation assumptions and fears, and as leaders, actively role model the behaviours needed to create • Digital transformation is not ego-driven or sustainable change at all levels of the organisation individualistic and the culture needs to reflect – which is not a ‘one size fits all’ affair - we will this paradigm shift constantly come up against the same resistance and essentially the same obstacle to growing • Meet your organisation, leaders and employees potential and maintaining competitive “where they are” in terms of maturity advantage. • Communicate, communicate, communicate, even when you don’t have anything new to say – keep people informed and involved 9
3 Transformation design Marco Van Hout We have heard about some of the key subjects needed to intentionally design to transform organisational culture and how to make this behavoural change sustainable. Find out more about the Digital Society School’s Transformation Design approach below: What is Transformation Design? Transformation design seeks to create desirable create new problems, and that we cannot ever truly and sustainable changes in behavior and form understand the people we design for: because we – of individuals, systems and organizations. It is a are not them, and they in turn, are not us. multi-stage, iterative process of applying design principles to large and complex systems. This is why transformation design draws from a variety of disciplines. Ultimately transformation However, design is not perfect and is not a one- design aims to apply design skills in non-traditional size fits all process-driven recipe for solutions. territories, and its beauty is that often results in The paradoxes with design are that solutions also non-traditional outputs. That, is transformational. 10
In what way is it different but organised in a fixed order in a system and can be solved. Complex problems are highly from normal ‘design unpredictable, follow no rules and should be thinking’ solutions? managed instead of just ‘solved’. An example: the used clothing app ‘Vinted’. A solution for quite a In what is considered ‘normal design thinking’, you clear problem: the clothing industry is one of the will find the above-mentioned focus on solutions, world’s largest polluters and we should not be which in turn also create new problems. Most of buying new clothes all the time, so best to buy the times, design thinking is used to think outside used or vintage. However, it is a solution for a of the box, but still... think in solutions that fit the complicated problem.... and the overconsumption box. This focus can block creatives from treating of clothes in our day and age is definitely not that, ‘problems’ as multi-faceted, interconnected, it is highly complex. And you can tell by having a systemic challenges that most of the times need closer look at Vinted: it is a huge success and the more than ‘design thinking’ to be transformed/ app and following is growing fast. You might say: solved. fantastic! More people buy second hand clothing, Two road-blocks that I can highlight to illustrate and less new clothes have to be produced. Fact this: of the matter is, that users of Vinted are not just buying used clothes... they are buying much MORE As designers, we are usually involved in ‘fixing’ used clothes than they need, and from all over things, in looking at the past and adjusting the the world. Searching for a bargain, finding that future accordingly, and in seeing how we can best one cool t-shirt from France. Consequences are: have our solution being adopted by our targeted more consumption, more packages sent around audience/ environment. These characteristics the world and no change in mindset whatsoever. typically define a focus on ‘change’. However, if It is still about owning, using and a luxury feeling. we are aiming to focus on real transformation, we This problem needs to be treated with all of its probably would need a focus on ‘creating’ a more complex components in consumer behavior, attractive future, by asking ourselves ‘what if...’ societal values, global vs local mindset, etc. instead of ‘what’s wrong...’ and by focusing on what Again, clear examples why need more interventions mean for our lives, the earth, our transformation design and less design thinking. society instead of seeking adoption of something we came up with. A similar tension can be found in the way design thinking often treats problems/ challenges as if they were complicated, instead of appreciating the complexity and systemic dynamics involved. Complicated problems are hard to understand, 11
What does should embrace the complexity of our challenges and focus more on creating attractive futures than Transformation design on fixing the past. This is a vital aspect for success, aim to do exactly and just as you noticed with my example about Vinted, what are the major good intentions are not always enough. concepts? 4. Experimentation. Learning is experimentation Transformation design aims to have impact on and experimentation is learning, they are a way three different levels: personal, organisational to bring to life what could be and allow others and societal/planetary. I will highlight the to engage with us in co-creating those common, organizational level here. For an organization to attractive futures. It is a continuous process implement transformation design, 4 areas of action and highly co-creative instead of reactive. This are important: requires a culture shift in many organisations, towards a culture of experimentation. 1. Re-Adaptive Learning. Nowadays, not all answers and not all solutions are provided by One of the biggest digital tools. Digital is the context, not the means challenges in sustainable for transformation. All problems are primarily transformation is scaling human problems. Therefore, the key learnable skill to design for transformation is the power to learn the change effectively. and relearn as we evolve and adapt. What is the “trending to ending” model? 2. Sustainability and Diversity/Inclusion. JJames Carse wrote that “There are at least two kinds of The trending to ending model we use within games: finite and infinite. A finite game is played Digital Society School is very much related to for the purpose of winning, an infinite game for our vision on transformation design: the work the purpose of continuing the play.” Obviously, we is never done and growth does not happen want our game to last, so we need to know how to without movement. Therefore, do we not only sustain it. To start this is through shared Sustainable focus on certain technological, transformational Development Goals (SDGs) and by harnessing trends for a limited period of time, we also the power of Diversity, Equity and Inclusion. believe people should be with us for a limited 3. Transformation. As mentioned in the above, we time. The ripple effect of our learning journeys 12
would not work without the ‘migration’ of people. Actually, this is basically how the ‘world learned’ for thousands of years: knowledge was only ‘diffused’ around the planet through the migration of people and hence was the learning society dependent on this dynamic. As DSS we envision to grow a similar global learning society around transformational goals and concepts :) Your final thoughts on Transformation design and its place in creating a digital and inclusive society? Transformation design is not human-centred, it is not humanity-centred and it is certainly not solution centred. It is life- and planet-centred. This goes even beyond our societal level, let alone the digital society, but fact of the matter is that we are part of nature and so is our (digital) society. Therefore we will never reach planet/life-level transformations if we do not transform the way we see our society and ourselves in it and, in turn, in nature. When we see everyone being part of our society, we might also learn how to see ourselves as part of the planet... not as owners and solvers. Listen to our full podcast discussion here http://bit.ly/DSStransformation 13
Tips for creating sustainable transformation in your organisation Build a collective purpose: Ask people how they feel and Deliberately design dream big (but start small) onboard them transformation together Don’t try and solve mindset Create psychological Understand human problems with technical safety reactions to change solutions Meet your organisation Define your own model Constantly bridge the gap “where it is at” in terms of and build incrementally between digital and human as maturity an iterative process 14
Never underestimate the power of belonging and peer coaching: if you want to go fast go alone, if you want to go further go together… 15
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