the challenge of transformation

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The challenge of transformation © 2013 Pactify Software. All rights reserved.

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70% of significant change/ transformation efforts fail. This presentation shows some key points of attention, both from the hardware as well as (and especially) from the software side. Focus is on leveraging intrinsic motivation throughout the organisation during change, using concepts such as FLOW and gamification as enabler.

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Page 1: The challenge of transformation

The challenge of transformation

© 2013 Pactify Software. All rights reserved.

Page 2: The challenge of transformation

Objective of this presentation

• Share ideas, tips and guidelines on how to increase chances of success in

transformation programs

– The “hardware” side

– The “software” side (but research based !)

• And (hopefully) … give you an even bigger appetite to get to work

-2- © 2013 Pactify Software. All rights reserved.

Page 3: The challenge of transformation

-3- © 2013 Pactify Software. All rights reserved.

We have the odds against us …

Page 4: The challenge of transformation

Two angles to approach change/ transformation management

• Vision and mission for change

• Analyses, hypotheses to define change projects

• Design of a change “program” (projects, plans,

targets, teams, …)

• Tracking& steering process for implementation

• …

-4-

© 2013 Pactify Software. All rights reserved.

“hardware” : logic, structure, process “software” : behavior, motivation, ...

AS IS TO BE

Change

progress

tracking

1 2

Page 5: The challenge of transformation

Key elements of successful transformation programs

1. Create 1 embedded platform to execute change

2. Make goal based plans

3. Flexibly re-forecast outcome along the way to

allow timely and effective steering

-5- © 2013 Pactify Software. All rights reserved.

The “hardware” : logic, structure, process The “software” : behavior, motivation, ...

1. As an individual, seek for intrinsic motivation

in the challenge to get into “Flow”

2. As a team, keep each other in “Flow”

3. Optional : “Pactify” your project to enter a

game-like challenge to help you achieve 1) and

2)

Change

progress

tracking

AS IS TO BE

Page 6: The challenge of transformation

1. Establish an embedded platform to execute change

-6- © 2013 Pactify Software. All rights reserved.

1 platform

Always there

Enabling co-operation

Progress

&

Forecast

Project data

• Objectives

• Approach

Milestones

• Initial date

• Forecast date

• Status

Actions

• Initial date

• Forecast date

• Status

Why?

– Everyone, at any place can make a contribution

• We cannot switch on and off the program

– Progress & forecast is available in real-time (steering)

– 1 platform instead of different emails, meetings, …

• Your program cannot exist only in emails/ meetings

“Hardware”

Page 7: The challenge of transformation

2. Make goal based plans

-7- © 2013 Pactify Software. All rights reserved.

Two types of goals for projects

• Stages : documented, justified, decided, implemented

• Specific project milestones : specific interim results/ deliverables

Goals are not actions

• Goals = a result (e.g. not : hold a meeting with all GMs … but : reach a consensus decision with all GMs …)

• Action = what needs to be done to get to the result (tasks, activities)

Why goal based plans ?

• If your mind is focused on a result …

– It’s easier to define and plan the actions needed to get to it

– You are more focused during the execution, look more ahead and foresee things better in advance

“Hardware”

Page 8: The challenge of transformation

3. Flexibly re-forecast the outcome along the way to allow

for timely and effective steering

• Most project plans exist in only 1 version (the first one …)

• While most plans are already off quite quickly

• To help you cope with plans that don’t hold true entirely anymore : re-forecast your

project plan (very frequently)

– Plan additional actions to still make original planned milestones

– Change course if needed (new milestones planned)

• Re-forecasting frequently keeps you and your team alert on how to cope with

uncertainties well in advance,

– And flexibly plan alternative approaches while keeping the overall project objective

in mind

-8- © 2013 Pactify Software. All rights reserved.

“Hardware”

Page 9: The challenge of transformation

Motivation, 2 kinds : intrinsic versus extrinsic

• Comes from the outside

• Carrot (reward) / Stick (avoid punishment)

-9- © 2013 Pactify Software. All rights reserved.

Extrinsic Intrinsic

• Comes from the inside, you are

motivated because you enjoy what you

are doing

“Software”

Page 10: The challenge of transformation

What type of motivation do we need for The Road Ahead ?

(I/III)

-10- © 2013 Pactify Software. All rights reserved.

How to fix a lit candle on a wall in a way so the candle wax won't drip onto the

table below ?

“Software”

Page 11: The challenge of transformation

What type of motivation do we need for The Road Ahead ?

(II/III)

-11- © 2013 Pactify Software. All rights reserved.

“Software”

Test group with a reward

underperform vs group without

reward

Rewards narrow our thinking ability,

they are not good motivators for

complex tasks that require thinking and

creativity.

Rewards mostly lead to worse

performance for these type of tasks

Page 12: The challenge of transformation

What type of motivation do we need for The Road Ahead ?

(III/III)

-12- © 2013 Pactify Software. All rights reserved.

In this setting, test group with a

reward outperform vs group

without reward

Extrinsic rewards are good

motivators for fairly standard,

straightforward tasks

“Software”

Page 13: The challenge of transformation

Monkeys [Video]

Page 14: The challenge of transformation

Intrinsic motivation is essential for complex, non trivial

challenges (like your transformation program)

• You transformation program = X candle problems

– Lots of constraints at the start (resources, time, perceived complexity& feasibility, …)

– Plenty of bad solutions, only 1 or a few elegant solutions (efficient/ effective – win/win / …

– Frustration if the solution doesn’t come, proudness when you get it

• You motivation has to come from the challenge itself, not from the outside

– You have to grab the problem and find it interesting, explore it, dive into it …

-14- © 2013 Pactify Software. All rights reserved.

Only intrinsic engagement, interest will drive finding solutions (rewards/ punishments : the

complete reverse!)

Two main reasons why it’s imperative to find intrinsic motivation:

• For company : the challenge will not be solved (we’ll be part of the 70%)

• For you as an individual : choice between 12 months of engagement, fun, proudness instead

of 12 months of frustration or boredom (making you want to change even less)

“Software”

Page 15: The challenge of transformation

“BORED”

How to find intrinsic motivation ? It happens when we are in

“flow” • For unforced activities, intrinsic motivation occurs when we are in “FLOW”

• Prof. Mihaly Csikszentmihalyi defined “flow” as “completely focused motivation”. A state in

which we are fully immersed in a feeling of energized focus, full involvement, and enjoyment in

the process of the activity

-15- © 2013 Pactify Software. All rights reserved.

“How good are you at it ?”

Perceived skill level

“How

difficult is

it?”

Perceived

challenge

“FRUSTRATED”

“Software”

Characteristics of FLOW ?

• You are completely “into” the activity

• No notion of time, highly concentrated

• Experience happiness “IN” the activity

• Very effective for new skill building

What is required ?

• Clear goals every step of the way

• Immediate feedback on one’s actions

• Understand balance between skill/

challenge for all tasks

• Concentration

• No fear of failure (focus on the task)

10-12% “How are you feeling?”

Page 16: The challenge of transformation

How can you get back into flow / avoid going out of flow ?

1) Getting activities into flow

-16- © 2013 Pactify Software. All rights reserved.

Perceived skill level

Perceived

challenge

Perceived skill level

2) How to avoid going out of flow ?

Perceived

challenge

BOREDOM

Natural

tendency

• Break down in more simpler – but still

meaningful – achievable steps

- Enjoy first step to go to next one easier

- E.g. spend 5 good minutes to write

good project description … instead of

worrying about complexity and potential

failure …

• Build self-confidence (lower perception

of challenge)

• Ask for help, team-up to improve skills

• Keep increasing the challenge level

with the progress

- Do it already in the plan, not only when

you discover boredom occurring

• As a team, trigger each other to

prevent other from going into boredom

FRUSTRATION

“Software”

Perceived skill level Perceived skill level

Page 17: The challenge of transformation

How do you keep the whole team in flow in a complex

“candle” project ? -> Group flow (the holy grail actually)

-17- © 2013 Pactify Software. All rights reserved.

“Software”

Perceived

skill level

Perceived

complexity

level

BOREDOM

FRUSTRATION GROUP FLOW

Project stages

Project milestone

Actions / decisions

Team

member

1

Team

member

2

Team

member

3

Team

member

1

All

Team

member

3

Team

member

3

All

Team

member

1

All

?

?

Page 18: The challenge of transformation

“Group flow” characteristics

• Studies show :

– More difficult to obtain than individual flow

– BUT more enjoyable than individual flow (!)

• Csíkszentmihályi suggests several ways a group can work together so that each

individual member achieves flow:

– Creative spatial arrangements: Chairs, pin walls, charts, but no tables; thus work

primarily standing and moving

– Playground design: Charts for information inputs, flow graphs, project summary,

craziness (here also craziness has a place), safe place (here all may say what is

otherwise only thought), result wall, open topics

– Increase in efficiency through visualization

– Using differences among participants as an opportunity, rather than an obstacle

• Example scientific study on flow in Basketball (Dubin), flow increases significantly with

1. Winning

2. Team chemistry

3. # of passes given

-18- © 2013 Pactify Software. All rights reserved.

“Software”

Page 19: The challenge of transformation

You can apply all of this by “Pactifying” your project

• If you and your team have made a project plan with :

1. Enough and specific milestones to achieve your project goal

2. Every planned milestone (or action) is balancing skill and complexity for its owner (flow)

• … and you believe in achieving this plan … you have the option to express this in the

system by “Pactifying” your project

• This means you enter a game (in parallel with your execution) that:

– Give you points (Pact Value) everytime you realise an action or milestone

– Compares your points with a target : the points you would get if you follow initial plan

exactly

• Why ? It will allow intrinsic motivation from your project

– Games are one of the most effective means to stick to something (get into the project …)

and to progress (increase skills versus complexity)

– The game involves the key criteria to stay in flow:

• Clear goals every step of the way (your actions/ milestones)

• Immediate feedback on actions and milestones

• Having fun, being proud of your progress

-19- © 2013 Pactify Software. All rights reserved.

“Software”

Page 20: The challenge of transformation

Make a project plan within flow, Pactify the plan and use

your daily “Pact Value” as feedback to stay in flow

-20- © 2013 Pactify Software. All rights reserved.

Skill level

Complexity

level

BOREDOM

FRUSTRATION PACT / FLOW

Project stages

Project milestone

Actions / decisions

“Software”

Team

member

1

Team

member

2

Team

member

3

Team

member

1

All

Team

member

3

Team

member

3

All

Team

member

1

All

Pact

force

Pact

force

Page 21: The challenge of transformation

Pact Value : actual – forecast and target / bring the 2 flags

together !

-21- © 2013 Pactify Software. All rights reserved.

“Software”

Page 22: The challenge of transformation

Some conclusions (… or even paradoxes)

1. If you do tasks because your boss wants it, because you fear to lose your job, … or you want to

please him/ her, we will fail

– Not the right mindset to tackle your candle problem

1. “I didn’t have time to do it" is an incorrect statement, correct is : “I am frustrated (or bored)”

– Because of you were in Flow, time is irrelevant

– Saying that you are frustrated is much more actionable than saying you didn’t have time

2. It is worse to “not ask for help” than not to perform

‒ "Blame is not for failure, it is for failing to help or ask for help.“ (CEO LEGO)

3. You have to do all of this to do yourself a favor in the first place

– And it’s deciding between 12+ months of engagement and proudness versus frustration or

boredom

4. Flow / intrinsic motivation not a fancy, high level concept … it’s manageable and it can be every

“next 5 minutes”

– Every moment is an opportunity to get into intrinsic motivation or to help someone else get

into it

-22- © 2013 Pactify Software. All rights reserved.

Page 23: The challenge of transformation

Some wishes at the start of implementation

• That your specific candle problem(s) may provide you with as much flow as possible

– If so, you’ll develop new skills much more easily, be more proud and have more fun

• That you have a high intolerance against boredom and frustration

– First trigger to get up and change how you look at tackling your challenges

• Team courage to bring this theory into practice by Pactifying your projects

-23- © 2013 Pactify Software. All rights reserved.

Page 24: The challenge of transformation

Three must-watch TED talks

• Daniel Pink – The puzzle of motivation

– http://www.ted.com/talks/dan_pink_on_motivation

• Mihaly Csikszentmichalyi – Flow, the secret to happiness

– http://www.ted.com/talks/mihaly_csikszentmihalyi_on_flow

• Yves Morieux - As work gets more complex, 6 rules to simplify

– http://www.ted.com/talks/yves_morieux_as_work_gets_more_complex_6_rules_to_s

implify

-24- © 2013 Pactify Software. All rights reserved.