Back to overview 12 principles for transformation Manfred Höfler Partner Contact Manfred Google shows 3.5 million entries for the term “change management”. On Amazon, you will find 50,000 books dealing with the management of change. A considerable amount of knowledge about models, tools, case studies, and innumerable tips for managers. And yet, two-thirds of all change initiatives fail. We have tried to condense the essence of successful change initiatives into 12 principles. Why don’t you check which principles were relevant in your project and where no attention was paid to. We are looking forward to your feedback. Awakening emotional energy for change Getting relevant transformations off the ground needs strong change energy. This is generated by a positive emotional involvement of important key persons – driven by a certain “fear” of not being able to keep up with certain developments or by a longing for new solutions for upcoming challenges of the VUCA world. Emotional involvement and energy for change arise primarily through open communication – for example, direct dialog with customers, users, partners, and open exchange with employees across company hierarchies. Working “inside and outside the skin” right from the start Successful change processes require attention both to what is visible, such as structures, processes, systems, etc. – we call this “outside the skin” – and to things that are not immediately visible, such as behavior, beliefs, assumptions, etc. – this is what we call “inside the skin”. Inside and outside processes must run simultaneously in a well-timed manner so that progress in content and psychosocial developments enrich each other in a good rhythm and reinforce each other positively. Making new things quickly tangible Short-term experiences of success are the fuel for sustainable developments and are important for three reasons: As soon as we have achieved something in a manageable period of time, our brain releases dopamine. Also, learning only happens through trial and error and evaluation of the experience gained. Thirdly, short-term, business-relevant success stories provide all change skeptics and wait-and-see or indifferent employees with proof of confidence that the changes are meaningful and feasible. These tangible successes can come via agile sprints, rapid results or prototyping of new concepts. However, caution is advised against so-called quick wins if they are only superficial symptom treatments. Creating meaning and inspiring belief in the future People want to be part of an attractive future. In this endeavor, many are guided by the shared Purpose, that is, the meaning behind the company, organizational unit or project. Therefore, powerful change initiatives need activities that involve key people working toward a shared, meaningful Purpose and an attractive Vision. Knowing fully well that in a VUCA world, the future always looks different from what is expected, we all need credible and appealing images of the future to be positively energized to embrace the new and abandon the comfort of past patterns of success. Helping people transition For most people, the brain is programmed for the tried and true and the familiar – enthusiastic adventurers and wild innovators are in the minority. Results of brain research show that threats from uncertainty about the future, more external determination, changes in familiar surroundings or social status lead to an emotional overreaction in the limbic system (“Fight or Flight”). Therefore, effective change management must consciously help to lead people from the old to the new. Good communication processes, leadership, and support in letting go of old patterns and learning are highly relevant measures for bringing people along in a change project. Thus, resistance can also be a resource to be used well. Strengthening the sense of community Thousands of years ago, people organized themselves into “tribes” and sought safety and protection in the community. If the human brain perceives positive community in an organizational environment, the happiness hormone oxytocin is released. Therefore, in change, as in sports, situations must be created in which community can be experienced. Only in this way can high performance be achieved, challenges overcome and positive energies awakened. Team events in projects, team retreats with executives and moving, involving major events with all those affected give the feeling of being part of a community. This is why separation processes or restructuring of organizational units, which are often necessary in change, should always be designed with the greatest possible transparency and sensitivity. Initiating movement of volunteers with positive energy Movements are created through guiding ideas and people who succeed in awakening aspirations, acting as role models and, above all, winning over contributors. Right from the start, change initiatives need intrinsically motivated pioneers who are committed to a cause even against the currently dominant opinion. Furthermore, volunteers are needed who work on concrete projects without thinking of a career boost or rewards, and who are also willing to go the “extra mile”. Colorful and diverse change teams composed of volunteers are the foundation for movements. At the same time, for these to work in the organizational environment, there needs to be a positive mobilization of the traditional leadership structure in a top-down process and initiatives that operate according to the principles of grassroots movements. Support and challenge these grassroots, so that they do not become a sect with “tunnel vision”. Removing blockades Change also means letting go and removing blockages. In order for new behavior to become established, it is often necessary to release existing boundaries. Especially popular management systems (MbO, planning and controlling, career system, etc.) and existing structures (silos with high division of labor, committees and meetings, complex matrix, etc.) strongly hinder meaningful renewal. Change therefore also means creating new framework conditions for sustainable behavior, clearing the organization of rules and regulations, and sometimes also initiating radical structural renewals. Ensuring stable elements Without stable elements, change only creates chaos. The art of effective transformation is to bring about movement and at the same time create security through stable elements. These are necessary so that people and organizations can embark on the path of renewal. Examples of stabilizing elements in change are: Principles and values, an attractive vision, authentically acting leaders, communication events, temporary structures, stable team compositions or a few central rules of the game. A well-designed interplay between stability and change requires ongoing reflection processes and the willingness of leadership to see change as a personal and organizational learning process. Consistent leadership Leaders take on central roles in transformations: Top executives themselves must have clarity about the vision of change, consistently represent the future direction, and provide the necessary freedom and framework. Middle management and top executives must also be prepared to learn themselves, to develop their mindset and behavior, and to take on new roles for an effective change. Effective change management almost always also requires consistent leadership development and the coaching of individual development among key people, because leaders at all levels are seen as the yardstick for the seriousness of the change. They are thus fully in the spotlight and at the same time personally affected by the change. Operating in learning loops Social systems cannot be redesigned or changed through precise project planning. Therefore, it is necessary to act in learning loops: Interventions are to be set intentionally and the results of measures are subsequently evaluated consistently to set new interventions based on them. Change initiatives need meaningful ambitions and a rough roadmap to orient shorter steps and to continuously evaluate concrete actions via reviews and retrospectives. A change roadmap is therefore not a project plan, but rather an outline of plans that can be flexibly adapted. Building on existing resources Development requires strengths and resources that can be built upon. Every social system has special qualities as to why it has been viable in the environment up to now. These and the resources of key people must be made conscious of in a change process and used as a source for meaningful change. At the same time, it is necessary to keep a sharp eye on the resources needed to master the challenges of the future, so that these can be quickly built up to the necessary extent or brought into the organization. If you want to learn more about the principles, sign up for the free webinar “12 Principles for Successful Change”. Would you like to know more? Contact