The Science and Art of Business and Leadership Transformation DR Peter Fuda
The Science and Art of Business and Leadership Transformation DR Peter Fuda
The Science and Art of Business and Leadership Transformation DR Peter Fuda
For more information on our management consultancy practice please visit www.tap.net.au
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The copyright of this work belongs to Dr. Peter Fuda and The Alignment Partnership, 2011.
CONTENTS 2
If you would like more information on our approach to business transformation, you can read our two white
papers titled 'WHY CHANGE EFFORTS FAIL' and 'ORGANISATIONAL TRANSFORMATION: CREATING
ALIGNMENT FROM THE OUTSIDE IN' (both available for free download at www.tap.net.au).
If you would like more information on our approach to leadership transformation, you can read our white
paper titled 'LEADERSHIP TRANSFORMATION: CREATING ALIGNMENT FROM THE INSIDE OUT' (available
for free download at www.tap.net.au), or you may read our Harvard Business Review article titled 'FIRE,
SNOWBALL, MASK, MOVIE: HOW LEADERS SPARK AND SUSTAIN CHANGE' (available for purchase
quoting reprint code R1111L).
THE SCIENCE & ART OF BUSINESS & LEADERSHIP TRANSFORMATION 3
PART 1 - WHY CHANGE EFFORTS FAIL learn to adapt their recipes and cook with greater flair over time. We
SECTION 1 - BREAKING THE CODE OF TRANSFORMATION
expand on the art in the next section ‘the attributes of transformational
change agents’.
Transformation can be won or lost before the race begins SECTION 2 - UNDERSTANDING THE TRANSFORMATIONAL CHANGE AGENT
There are a set of preconditions present in every case study of successful
transformation we have been involved in. There is a convergence of factors If we accept the critical role of change agents (internal and external)
creating a ‘big why’; the CEO client can articulate a burning platform and in successful transformation, then the question becomes what makes
a burning ambition for the organisation, its leaders, and personally, as a transformational change agent? In our own practice, as well as in our
represented in the four dimensional FIRE matrixTM below (Figure A). observation of others, we have identified several attributes that the best
change agents appear to share. These are classified as BEING (personal Traditionally,
ORGANISATIONAL
characteristics and qualities), SEEING (the ability to change agents have
make sense of, and reshape perceptions of ‘reality’)
QUADRANT1 QUADRANT 4 and DOING (the specific skills and methods for focussed primarily
creating change).
Organisation Organisational
DOING on 'DOING', as
Traditionally, change agents have focused
Burning Platform Burning Ambition
primarily on ‘DOING’. Transformational SEEING opposed to 'SEEING'
BURNING
PLATFORM
BURNING
AMBITION
change agents, however, understand that and 'BEING'.
the most effective ‘DOING’ is preceded
QUADRANT 2 QUADRANT 3 by ‘SEEING, which, in turn, is preceded BEING
by ‘BEING’ (as depicted in Figure B).
Personal Personal
Figure B: BEING-SEEING-DOING model
Burning Platform Burning Ambition
BEING
They are a role model first and a preacher second: The ability of change
PERSONAL agents to affect positive change is directly related to their congruence
with their message; as Gandhi put it, “be the change you wish to see in
TM
Figure A: The four quadrants of motivation, or FIRE the world”. It is our experience that transformational change agents have
higher standards for themselves than anybody else has for them. They
are a living, breathing representation of their message.
There is a ‘big yes’; the CEO is ‘the client’ and the transformation effort
is his/her highest priority. The CEO and Executive Team are engaged They are optimistic; they inspire hope not fear: Contrary to popular
and open to learning and expert diagnosis. Internal change agents belief, hope is not an emotion; it is a process. According to Professor C.R.
are partners and collaborators rather than competitors, and have the Snyder, it can be represented as Hope = Goals + Pathways x Agency
credibility and capability to advance the change effort behind the scenes. (the belief that my effort makes a difference). Transformational change
Everyone understands the journey could be difficult and painful, and agents operate primarily from a ‘burning ambition’, rather than a ‘burning
signs up with no illusions. platform’. They are able to counteract anxiety (the most contagious
emotion) with calm (the second most contagious emotion).
The CEO has enough respect, autonomy and longevity in the up-line
environment to create the time and space required for success. And there They are courageous and selfless: A great deal of courage and selflessness
is an alignment of ‘values’ and ‘value’ between TAP and the client such is required to escalate a situation to one that is more authentic and
that high trust and true partnership are possible from day one. In short, needed, no matter how personally risky. This means transformational
all parties are focused on exactly the same goal – to create a successful change agents will push leaders to the absolute edge of their patience,
case study of transformation. tolerance and comfort levels in order to accelerate the desired change.
THE SCIENCE & ART OF BUSINESS & LEADERSHIP TRANSFORMATION 5
They are trusted, and leverage it: Trust is a prerequisite for They see a ‘higher self’: This effectively means expanding a leader’s
transformation. In the words of Stephen Covey “trust is the one thing view of what’s possible and what they are personally capable of. It also
that changes everything”. Trust comprises three elements; credibility, presumes a belief in the human spirit; that people want to step up and
reliability and intent. Credibility is the resume. Reliability is built over time that they want to do the right thing.
by delivering on promises. Intent, the most important part of the ‘trust
triangle’, is built through transparency of motivation, and a strong focus DOING
on contribution.
They create a setting for success, without needing to control the process: The goal is to shift the
They are in service, not subservience: Transformational change agents There is an understanding that change is necessarily unpredictable so
energy from 'what', to
live to serve. This does not mean they take orders or react to the client’s attempts to control it are futile. The focus is on clear outcomes, agreed
ever changing agenda; quite the opposite. It means drawing on a deep standards of behaviour, and trusting people to constructively fill the 'so what' and 'now
space. There is also an understanding that people will tolerate the
reservoir of self-belief, and the strength of their convictions to positively
shape and lead the transformation agenda. conclusions of others but only act on their own conclusions, so creating what'.
a setting allows people to own their outcomes.
SEEING They artfully apply frameworks, models and tools: Just like chefs learn
to cook with more flair over time, so too transformational change agents
They see a different ‘normal’: Clients can get stuck on false notions
employ their tools with increasing flair – particularly as they approach
of what is ‘normal’ in a transformation effort. Transformational change
what Malcolm Gladwell terms the ‘10,000 hour rule’ of perfecting one’s
agents draw on rich experiences to challenge what is normal, and reframe
craft. No matter how good the tools, they are never perceived as an
barriers for the client in a way that allows them to move forward.
end in themselves; they are employed only as a pathway to business
They see the distinction between fact and truth: Facts are objectively outcomes.
agreeable points of data (e.g. revenue is up 8%) while truth is the They provide correction to senior executives without causing resentment:
subjective interpretation of how and why that fact has occurred (e.g. our This is done in two primary ways; the first is by substituting a focus on
new marketing campaign). In order to promote insight, effective decision right and wrong (condescending and judgemental) to whether a leader
making and collaboration, transformational change agents force leaders is aligned or misaligned with their articulated aspirations. The second
to distinguish between the two. They also focus on creating a shared is to ‘soften the audience, not the message’. Rather than soften direct
truth that empowers the organisation. feedback (kind of, sort of, sometimes), the change agent reminds the
They see leaders in a sympathetic light: Change efforts are necessarily client of their aspirations and their desire for direct feedback, and then
messy and can encourage people to negatively interpret the actions and delivers the message with precision.
intentions of others; particularly their leaders. Transformational change They appeal to the heart (emotion) and then the head (logic): Under
agents challenge these negative assumptions at every turn. They ask pressure for business cases, data and statistics, we can forget that people
questions and provide alternative meanings that create empathy, force make decisions emotionally and then justify that decision with logic.
people to suspend judgement, and encourage ‘benefit of the doubt’. Transformational change agents create an emotionally engaging story
They see all interventions in a strategic context: Transformational change for change, and then back it up with good data.
agents see how each intervention fits within the strategic agenda. They They make a call to action: Rich conversations and noble intentions
can then articulate why it is so critical to others in a way that garners are translated into immediate and purposeful actions. The focus is on
collective energy and commitment. For example, measuring a leader’s achieving accountability and commitment to the next two or three things
impact is done to accelerate business performance rather than just to that can or must be done. The goal is to shift the energy from ‘what’, to
provide a development opportunity (though of course, it does both). ‘so what’ and ‘now what’.
THE SCIENCE & ART OF BUSINESS & LEADERSHIP TRANSFORMATION 6
Assumptions Aspirations
3. Actual State; how well the organisation understood or embraced by the organisation. essential relationships
understands its current state.
Having worked closely with each CEO and their organisations for many Leaders able to view themselves from other’s
years, we were able to access the ‘warts and all’ accounts of how they perspectives. Start as ‘actors in a movie’ (often a bad
MOVIE one), then move into the ‘editing suite’ to reflect on
significantly transformed their outcomes, and then document their
action, before ultimately moving into the ‘director’s
stories in narrative form. The common themes in the CEOs journeys chair’ with the capacity to reflect in action.
surfaced in dramatic fashion as seven metaphors; Fire, Snowball, Master
Chef, Coach, Mask, Movie and Russian Dolls. These may sound familiar,
RUSSIAN A complimentary set of journeys that interact with a
but they contain useful insights about how leaders can become more DOLLS leader’s personal journey of transformation.
effective. Their familiarity means you can recall them easily—which is
helpful when trying to change entrenched behavior—and talk about Figure I: Definitions of the 7 Metaphors for Leadership Transformation
THE SCIENCE & ART OF BUSINESS & LEADERSHIP TRANSFORMATION 9
SECTION 6 - LEADERSHIP TRANSFORMATION OCCURS IN A CONTEXT OF TYPICAL LEADERSHIP DEVELOPMENT PROGRAM A LEADERSHIP TRANSFORMATION PROCESS
ORGANISATIONAL TRANSFORMATION