Artful Transformation and John Kotter’s 8-Step Process for Leading Change

In Leading Change, John Kotter of Kotter International emphasizes:

30 years of research by leadership guru Dr. John Kotter have proven that 70% of all major change efforts in organizations fail. Why do they fail? Because organizations often do not take the holistic approach required to see the change through.

However, by following the 8 Step Process outlined by Professor Kotter, organizations can avoid failure and become adept at change. By improving their ability to change, organizations can increase their chances of success, both today and in the future. Without this ability to adapt continuously, organizations cannot thrive.

How does The 8-Step Process for Leading Change relate to Artful Transformation?

Step 1: Create/Establishing a Sense of Urgency

This step focuses on “helping others see the need for change and the importance of acting immediately”:

Examine market and competitive realities

Identify and discuss crises, potential crises or major opportunities

This step relates to Phase I of Artful Transformation, and specifically fostering awareness of the rationale justifying the transformation.

Kotter’s emphasis that “leaders who know what they are doing will ‘aim for the heart’” and “connect to the deepest values of their people and inspire them to greatness” is crucial.

Step 2: Creating the Guiding Coalition

This step focuses on “putting together a group with enough power to lead the change”:

Assemble a group with enough power to lead the change effort

Encourage the group to work as a team

This step relates to Phase I of Artful Transformation, and specifically establishing a transformation team.

Kotter’s emphasis that “the team should reflect: Position Power; Expertise; Credibility; and Leadership” is crucial.

Step 3: Developing a Change Vision

This step focuses on “clarifying how the future will be different from the past”:

Create a vision to help direct the change effort

Develop strategies for achieving that vision

This step relates to Phase I of Artful Transformation, and specifically deriving a framework. Kotter’s vision is similar to Artful Transformation’s framework and Kotter’s strategies is similar Artful Transformation’s roadmap.

Kotter’s emphasis that a “clear vision [framework] serves three important purposes: simplifies more detailed decisions; motivates people to take action; and helps to coordinate the actions” is crucial.

Kotter’s emphasis “effective visions [frameworks] have six key characteristics: Imaginable; Desirable; Feasible; Focused; Flexible; and Communicable” is crucial.

Step 4: Communicating the Vision for Buy-in

This step focuses on “ensuring that as many people as possible understand and accept the vision”:

Use every vehicle possible to communicate the new vision and strategies

Teach new behaviors by the example of the Guiding Coalition

This step relates to Phase I of Artful Transformation, and specifically socializing and refining the framework and roadmap.

Kotter’s emphasis on “communicating the vision” and “the vision should be: Simple; Vivid; Repeatable; Invitational” is crucial.

Step 5: Empowering Broad-based Action / Empowering People and Removing Barriers

This step focuses on “removing as many barriers as possible and unleashing people to do their best work”:

Remove obstacles to change

Change systems or structures that seriously undermine the vision

Encourage the risk-taking and nontraditional ideas, activities, and actions

This step relates to Phase II and III of Artful Transformation, and specifically enacting & elaborating (Phase II) and further enacting & evolving (Phase III) the framework as well as renewing value-creating capabilities (Phase II) and reviewing oversights capabilities (Phase III).

Step 6: Generating Short-term Wins

This step focuses on “creating some visible, unambiguous success as soon as possible”:

Plan for visible performance improvements

Create those improvements

Recognize and reward employees involved in the improvements

This step relates to Phase II and III of Artful Transformation, and specifically the successes and improvements at the early parts of the phases.

Step 7: Never Letting Up / Don’t Let Up!

This step focuses on “consolidating gains and producing more change”:

Use increased credibility to change systems, structures and policies that don’t fit the vision

Hire, promote, and develop employees who can implement the vision

Reinvigorate the process with new projects, themes, and change agents

This step relates to Phase II and III of Artful Transformation, and specifically the gains at the latter parts of the phases.

Step 8: Incorporating Changes into the Culture / Make it Stick

This step focuses on “anchoring new approaches in the culture”:

Articulate the connections between the new behaviors and organizational success

Develop the means to ensure leadership development and succession

This step relates to Phase II and III of Artful Transformation, and specifically the emergence of communities (Phase II) and fostering those communities (Phase III).

Artful Transformation and The 8 Steps

The 8-Step Process for Leading Change provides rich guidance that can be used with Artful Transformation to lead change.

Artful Transformation and the PRIMES

In The PRIMES: How Any Group Can Solve Any Problem, Chris McGoff (@ThePRIMESbook) of The Clearing with Dana Theus (@DanaTheus) of Magus Consulting describes a set of “simple, enduring, and universally applicable truths” that “unlock the power of a group” in “solving complex problems and driving transformational outcomes” (“direct change, facilitate transformation, and solve complex problems”).

How do the PRIMES relate to Artful Transformation?

The PRIMES

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The book introduces Universe Denters:

Michael Doyle [Chris McGoff’s colleague] and his team had a deep and practical understanding of the true nature of group work. They knew how to unlock the power of a group and catalyze the social construction of knowledge. I watched them accomplish “something big” over and over again. I called them “Universe Denters.”

The book then introduces the PRIMES:

In the process of scaling one organizational challenge or another, over a period of many years, realizations came to my partners and me one at a time — and often just in time. The PRIMES are these “eureka” insights. Usually, they occurred when we got stuck as a team. When something was wrong and we were in trouble, we talked it through. A realization would often surface that fit the exact circumstance and allowed us to move forward. As we refined and reused an insight successfully in other circumstances, we knew we had uncovered a PRIME. To qualify, the insight had to be universally applicable, effective in a wide variety of situations, and it had to be timeless and simple. One after another, we “met” the PRIMES.

This book then emphasizes distinguishing the PRIMES:

One of the most profound revelations in my life is that naming things is the act of creating the human experience and shaping the future. Naming is the core of what we do and what we cause. Naming is an essential first step toward achieving mastery over any aspect of life.

The book is organized into three parts with seven chapters:

Part 1 (The Calling): We pay attention to our “calling” and our desire to make a significant, lasting contribution to organizations, communities, and society. The PRIMES in Part One will help us prepare to meet challenges and enroll others in our vision.

Part 2 (Outward Bound): As we set out on our adventure, specific PRIMES help sustain us as a group. We’ll discover PRIMES for beginning our journey and for dealing with inevitable dangers on the path. Other PRIMES will help us “see around the corner,” to predict specific threats to our goal, and help us manage risks.

Part 3: (Summiting): Our goal is near, but at this stage we encounter the greatest fatigue. Our best and worst behaviors begin to manifest themselves. We’ll uncover PRIMES to help us protect the integrity of the expedition.

Artful Transformation and the PRIMES

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While the PRIMES may generally apply across Phase I, II, and III of Artful Transformation, they also have a natural place across Phase I, II, and III where they may have the greatest impact and value.

The Wanderlust chapter of Part 1 (The Calling) establishes underpinning or foundational PRIMES, which are commonly leveraged across Phase I, II, and III of Artful Transformation.

The Enrollment chapter of Part 1 (The Calling) offers PRIMES commonly leveraged in Phase I (Context) of Artful Transformation.

The Outfitting, Stepping Off, and Here be Dragons chapters of Part 2 (Outward Bound) introduce PRIMES commonly leveraged in Phase II (Foundation) of Artful Transformation.

The Strategic Pause chapter of Part 3 (Summiting) introduces PRIMES commonly leveraged in Phase III (Evolution) of Artful Transformation.

The Declared Leadership chapter of Part 3 (Summiting) establishes overarching or leadership PRIMES, which are commonly leveraged across Phase I, II, and III of Artful Transformation.

Wanderlust

The Wanderlust chapter explores PRIMES that “help you clarify your purpose and prepare you to let the world know your vision.”

CHANGE VS. TRANSFORMATION: Change fixes the past. Transformation creates the future.

INTEGRITY: Change fixes the past. Transformation creates the future.

TRUST THE UNIVERSE: The Universe helps people who live boldly.

ENNOBLEMENT: A great vision elevates the people that hold it.

DYNAMIC INCOMPLETENESS: Co-creation causes co-ownership.

These PRIMES relate to fostering a Wholeness mindset (The Art of War – Wholeness) across Phase I, II, and III of Artful Transformation.

Enrollment

The Enrollment chapter explores PRIMES that “give us the ability to build our team and excite, focus, and commit everyone to do what it takes to achieve our clear vision for the future.”

CORE PRIME: Powerful groups forge five essential agreements.

PARITY: Balancing the As Is and the To Be.

FACTS, STORIES, AND BELIEFS: Beliefs shape the facts we listen to and the stories we tell about them.

STAKE: People have different motivations; inspire them all.

DECLARATION: Great leaders DECLARE what will be, by when.

These PRIMES relate to Phase I of Artful Transformation, and specifically establishing a transformation team and socializing & refining the framework. The CORE PRIME is quintessential in this phase.

Outfitting

The Outfitting chapter explores PRIMES that “prepare you to recognize and manage inevitable obstacles on whatever path you take.”

CULTURE: Every group divides the behaviors it will tolerate from those it will not.

GOSSIP: GOSSIP is pure, destructive energy. Tolerate it at your peril.

CONSENSUS: Everyone “agreeing with everything” is overrated.

VICTIM-LEADER: Empowering discussions focus on that which you can control.

BREACH: Acknowledging BREACH is an important step into INTEGRITY.

These PRIMES relate to Phase II of Artful Transformation, and specifically enacting the framework and renewing value-creation capabilities. The CULTURE PRIME is quintessential in this phase.

Stepping Off

The Stepping Off chapter explores PRIMES “to help fuel the group, and to focus and maintain its energy, as it attempts the extraordinary.”

MUDA: Stop non-value-added activity to make room for value.

REDPOINT: Focus on the fewest, most important, things to do now.

ISSUES FORWARD: Direct your focus to what you can affect.

COHESION: Knowing what you want increases your chances of getting it.

These PRIMES relate to Phase II of Artful Transformation, and specifically enacting the framework and renewing value-creation capabilities. The REDPOINT PRIME is quintessential in this phase.

Here be Dragons

The Here be Dragons chapter explores PRIMES that “clarify the importance of focusing and expanding energy efficiently.”

BIG HAT-LITTLE HAT: Everyone wears two hats. Know which one you wear at all times.

RIGHT VS. RIGHT: The most important arguments occur when rights collide.

RESOLUTION PRINCIPLES: Ethical dilemmas can’t be avoided, but they can be managed.

BLIND MEN AND THE ELEPHANT: Rationality is a function of the information at hand.

LEVELS OF PERSPECTIVE: Where you stand determines the problems and solutions you see.

These PRIMES relate to Phase II of Artful Transformation, and specifically enacting the framework and renewing value-creation capabilities.

Strategic Pause

The Strategic Pause chapter explores PRIMES that “help you locate the source of a group’s problem and help members resolve it quickly.”

FRAGMENTATION: Understanding the natural splintering of intentionality helps address it.

LAGGARDS: Ignore those who will never come along.

OPEN-CLOSE-DECIDE: Only one person, at one moment, makes a decision.

IN-ON: You are either working IN your business, or ON it.

These PRIMES relate to Phase III of Artful Transformation, and specifically renewing oversight capabilities.

Declared Leadership

The Declared Leadership chapter explores PRIMES that “are survival gear for truly great leaders.” “Outfitted with these principles, you will bypass obstacles, navigate the unexpected, and lead your teams through the rough patches every time they appear.”

LEADERSHIP SPECTRUM: Great leaders master multiple leadership styles.

SHAPE SHIFTING: Lead collaboratively or authoritatively, explicitly and intentionally.

CHASE-LOSE: Pursuit of meaningful outcomes inspires teamwork and leadership.

COMMITMENT VS. ATTACHMENT: Success is a state of being.

These PRIMES relate to fostering a Leadership mindset (The Art of War – Leadership) across Phase I, II, and III of Artful Transformation.

Artful Transformation and the PRIMES

The PRIMES provide a rich set of principles that can be used with Artful Transformation “to create the future, produce extraordinary results, and make a dent in the Universe.”

Artful Transformation

Artful Transformation is an experientially derived and proven approach to transformation resulting from over three decades of major transformation work.

Artful Transformation is not a traditional change management approach or a new change management approach. Artful Transformation is not a theoretical or speculative approach to transformation.

Artful Transformation has been described & distilled and supported with a “public” case study (who, why, how, and the results).

Transformation involves fundamental change that fosters organizational health (performance and well-being).

Enterprise transformation involves the fundamental change of an enterprise, not merely causing the enterprise to change its structure or processes, but causing the enterprise to change its culture (expressed through language, relationships, and behaviors), which may in turn cause the enterprise to change its structure and processes. Organizational health involves a high performing enterprise that thrives within its context.

Transition is a practice-based change that primarily focuses on surface level behavior while a transformation is a value/principle-based change that focuses on the DNA of an enterprise.

Anecdotal evidence suggests that Artful Transformation offers a 3 to 5 times improvement in organizational health (performance and well-being)! See the recommendations for more information!

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Phase I: Context

Phase I is described & distilled and supported with a “public” case study.

Phase I involves establishing a transformation team, deriving a “minimal” framework, and socializing and refining the framework for adoption, which ensures awareness of the aspects of the enterprise.

Phase II: Foundation

Phase II is described & distilled and supported with a “public” case study.

Phase II involves enacting and elaborating the framework, and renewing value-creation capabilities for adoption and scale, which ensures the dynamics within the enterprise.

Phase III: Evolution

Phase III is described & distilled and supported with a “public” case study.

Phase III involves enacting and evolving the framework, renewing oversight capabilities, and fostering communities for scale and sustainability, which ensures the wholeness of the enterprise.

Cars.com’s Agility Transformation Journey

On July 13th, 2011, Clay Johnson (@edeviant), Jacque Harper (@ChicagoBassEns), Jim Sanders, John Manganaro, Jonathan Yenkin, Len Lagestee (@lagestee), Mahi Inampudi, and Nick Hummer shared Cars.com‘s Agility Transformation Journey (as a Ryma Technology Solutions hosted webinar).

Cars.com, a division of Classified Ventures LLC, which launched in June 1998 is the leading destination for online car shoppers, visited by more than 10 million car shoppers each month. To further fuel its success in putting car buyers in control of their shopping process with the information they need to make confident buying decisions, Cars.com ventured into an enterprise transformation focused on greater organizational health (performance and well-being) and Agility.

The enterprise transformation (approximately 9 calendar months involving approximately 6 effort months) involved Product Management, Project Management, Product Engineering, User Experience, Enterprise Architecture, Operations/Infrastructure, Governance/Oversight, etc. The webinar showcased the transformation experience from all of these perspectives directly from the core participants while the coaches — Mark Ferraro (@mark4ro), Larry Schoeneman, and Si Alhir (@SAlhir) with Redpoint Technologies and Judith E. Glaser (@CreatingWE and @JudithEGlaser) with Benchmark Communications — contributed to the conversation.

— The whole webinar hosted by Ryma Technology Solutions is available here or you can view snippets below. —

Who is Cars.com?

The core participants introduce Cars.com…

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(audio – 1 min)

Why Agility?

The core participants describe Cars.com’s motivations…

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(audio – 2 min)

The Journey

The coaches describe the transformation approach…

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(audio – 2.5 min)

The coaches emphasize that the approach is well described in Transformation Distilled: A Journey and a Way of Being and Transformation further Distilled. Furthermore, the coaches emphasize the three underlying pillars of the approach:

• The approach emphasizes a Natural perspective in that it is rooted in Sociality & Human Nature and relies on Human Leadership, including:
• Tribal Leadership and its appreciation of natural groups.
• WE-Centric Leadership and its appreciation of vital instincts.
• The Art of War (“the coaching manual” as Taking Whole and The Sage Commander) and its appreciation of the nature of conflict.
• And other bodies of knowledge based on the context of the enterprise.
• The approach emphasizes an Essential perspective in that it starts with something (framework) “minimal” & “holistic” and evolves it in the context of the enterprise.
• The approach emphasizes a Real perspective in that it considers people and results in the context of the enterprise, that is, it balances the “soft stuff” (people) and the “hard stuff” (business results).

The approach is Natural, Essential, and Real!

The Journey: Energize

The coaches describe the first phase of the approach…

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(audio – 1 min)

The coaches emphasize the importance of appreciating the enterprise, energizing the enterprise, starting with a “blank sheet”, formulating a “minimal vision”, and socializing the “framework”.

See here and here for more information on phase I.

The core participants share their experiences and recommendations concerning the first phase…

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(audio – 5.5 min)

Encourage you to listen to the audio and leave your comments regarding what “emerges” for you.

The Journey: Experience

The coaches describe the second phase of the approach…

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(audio – 1 min)

The coaches emphasize the importance of experiencing the dynamics of the framework (not merely socializing the framework) and growing the framework, discovering the “shift”, and renewing “how we create value”. Generally, it is about heightening awareness, fostering behavior, and producing results.

See here and here for more information on phase II.

The core participants share their experiences and recommendations concerning the second phase…

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(audio – 11 min)

Encourage you to listen to the audio and leave your comments regarding what “emerges” for you.

The Journey: Embody

The coaches describe the third phase of the approach…

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(audio – 1 min)

The coaches emphasize the importance of embodying the “shift” in the enterprise, renewing “oversight”, and ensuring the “goodness” is embodied within the communities of people who constitute the enterprise. Generally, it is about heightening awareness, fostering behavior, and producing results.

See here and here for more information on phase III.

The core participants share their experiences and recommendations concerning the third phase…

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(audio – 5 min)

Encourage you to listen to the audio and leave your comments regarding what “emerges” for you.

The Journey in Summary

The core participants share their overall experiences and recommendations…

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(audio – 6.5 min)

Encourage you to listen to the audio and leave your comments regarding what “emerges” for you.

Overall Impressions

Judith E. Glaser emphasizes the organic nature of the transformation experiences (audio – 1.5 min) while the core participants (and coaches) share their “code word” (audio – 1 min) for that sensation (being connected, energetic, and committed) and the host shares his impressions (audio – 1.5 min).

Encourage you to listen to the audio and leave your comments regarding your impressions.

Key Questions

The core participants (and coaches) explore

• the liberating power of starting with an agnostic perspective (audio – 1 min),
• the importance of a cross-functional core participant team (audio – 2 min),
• the liberating power of starting with an essential framework and the wisdom of listening and conversing (audio – 2 min),
• the overall potency of the core participant team and being “alive” (audio – 2 min), and
• sponsorship and the courage & leadership of the management team (audio – 1.5 min).

Encourage you to listen to the audio and leave your questions.

Conclusion

Judith E. Glaser emphasizes the do-ability of transformation (audio – 0.5 min) and the nature of being human and thriving together (audio – 0.5 min).

Please share your thoughts.

Transformation further Distilled

Thriving and high performing organizations are founded on strong cultures, which involve shared values, strategy alignment, and interconnection. Such organizations achieve 4 times higher revenue, 7 times more expanded work force, 12 times higher stock prices, and 756% higher net income. However, approximately 70% of all change initiatives focused on improving performance fail!

With an acute focus on business results, this unique transformation approach offers an efficient and effective alternative to more “traditional” approaches to change. This approach includes three sequential phases: Context, Foundation, and Evolution.

Context: Transformation Team and Framework

The first phase involves establishing a transformation team; sufficiently understanding the organization’s structure, processes, and culture; and considering how to improve people’s well-being and the organization’s performance. Appreciation of the whole and parts is essential!

Transformation Team

Establish a transformation team.

The transformation team is composed of people from across the organization. The team must be representative of all the groups (of people) involved in the transformation. The team is responsible for coaching, consulting, and training interventions and generally supporting people and the organization.

Framework

The transformation team derives a “minimal” framework.

A framework is a social construct, a social object that fosters a group’s social construction of reality. For example, a framework may be an expression or description of

• Values or what gives a group “meaning”,
• Cause or what gives a group “purpose”,
• Guiding Principles,
• Roles & Tasks & Work Products,
• Behaviors & Relationships & Language, or
• Anything that foster’s the group’s shared understanding of its reality.

The framework essentially expresses a “way of being” that considers people’s well-being and the organization’s performance. It should be “minimal” and integrate people’s human needs and the organization’s business needs. The transformation team is vital in understanding the organization’s structure, processes, and culture while external coaches are vital in contributing various bodies of knowledge (content) and practice (experience) to the framework and throughout the transformation.

The transformation team socializes and refines the framework.

The transformation team shares the framework with all the people who are represented by the team, and the transformation team refines the framework based on any feedback. Naturally, there will be disagreements among people and groups! However, the framework is merely a starting point for the transformation, it is not the destination. As the transformation progresses, the framework will be “tested” against reality and “improved” to ensure people’s well-being and the organization’s performance.

Foundation: Value Creation, Enactment & Elaboration, and Renewal

The second phase involves improving people’s well-being and the organization’s performance by improving the organization’s structure, processes, and culture.

Throughout this phase, the transformation team ensures people experience healthy dynamics in how they work together as reflected in people’s behaviors, relationships, and language.

Enact & Elaborate

The transformation team works with people in enacting the framework (on real work).

The transformation team must live the framework and work with people to also start living the framework. For examples, the transformation team coaches people to live the Values in alignment with the Cause expressed in the framework or coaches people to live the Roles, perform the Tasks, and produce & consume Work Products expressed in the framework. As other people outside the transformation team start living the framework, those people with whom the framework resonates will in turn progressively (and ultimately virally) work with other people to start living the framework. This fosters progressive adoption of the framework.

The transformation team works with people in elaborating the framework.

As people begin to live the framework, the transformation team works with them to change what is not working well (that is, not improving people’s well-being or not improving the organization’s performance) and elaborate (beyond what was “minimal”) what is working well (that is, improving people’s well-being or not improving the organization’s performance). This fosters progressive adaptation of the framework based on the natural group of people who constitute the organization and the demands of the marketplace on the business organization.

Renew Value Creation

The transformation team works with the organization to renew its value-creation capabilities.

As the transformation team, people, and organization begin to recognize what is working well and what is not working well, the enterprise can further organize around how to best foster people’s well-being and the organization’s performance. For example, people may be reorganized as teams, departments may be reorganized across the organization, etc. around how to best create value to meet business objectives.

Evolution: Oversight, Communities, Enactment & Evolution, and Renewal

The third phase involves ensuring the improvements are enduring by ensuring the durability of the organization’s structure, processes, and culture.

Throughout this phase, the transformation team ensures people experience healthy dynamics in how they work together as reflected in people’s behaviors, relationships, and language.

Enact & Evolve

The transformation team works with people in further enacting the framework (on real work).

The transformation team must continue to live the framework and work with people to also continue to living the framework. For examples, the transformation team coaches people to continue to live the Values in alignment with the Cause expressed in the framework or coaches people to continue to live the Roles, perform the Tasks, and produce & consume Work Products expressed in the framework. As other people outside the transformation team continue to live the framework, those people with whom the framework resonates will in turn progressively (and ultimately virally) work with other people to continue to live the framework. This fosters progressive adoption of the framework.

The transformation team works with people in evolving the framework.

As people continue to live the framework, the transformation team works with them to change what is not working well (that is, not improving people’s well-being or not improving the organization’s performance) and evolve (beyond what was “minimal”) what is working well (that is, improving people’s well-being or not improving the organization’s performance). This fosters progressive adaptation of the framework based on the natural group of people who constitute the organization and the demands of the marketplace on the business organization.

Renew Oversight

The transformation team works with the organization to renew its oversight capabilities.

As the transformation team, people, and organization begin to recognize what is working well and what is not working well, the enterprise can further organize around how to best sustain people’s well-being and the organization’s performance. For example, how are cross-team conflicts and cross-department conflicts resolved, etc. in how to best oversight value creation.

Communities

The transformation team fosters communities who take ownership of the framework.

Throughout the journey, ownership of the framework progressively (and ultimately virally) permeates every person beyond the transformation team. The enterprise, as an overall community, owns the framework while the transformation team fosters various sub-communities to take ownership for evolving different aspects of the framework. As the enterprise’s journey is never-ending, the evolution of the framework in continuously improving people’s well-being and the organization’s performance is never-ending.

How is this Different? Why does it Work?

This transformation approach is different from more “traditional” approaches to change in that it very organically and simultaneously focuses on people’s well-being and the organization’s performance.

• From a business perspective, the approach transforms how people and the organization discover and deliver value to clients and customers in the form of products, services, and experiences.
• From an organizational perspective, the approach transforms the organizational structure and processes to more efficiently and effectively achieve business results.
• From a cultural perspective, the approach transforms people’s behaviors, relationships, and language to ensure their well-being in achieving business results.
• Most notably, the approach is completely agnostic of business domain and may be combined with almost any Strategy, Leadership, Execution, Cultural, etc. model or approach (for example, [1], [2], [3], [4], etc.).

Integrating these different perspectives is the foundation for a complete and holistic transformation approach.

Transformation Distilled: A Journey and a Way of Being

This is not a traditional change management approach or a new change management approach.

This is not a theoretical or speculative approach to transformation.

This is an experientially derived and proven approach to transformation.

Enterprise

An enterprise is a meaningfully-purposeful collective of individuals who form an ecosystem.

They share an organizational structure, organizational processes, and culture.

They express themselves through their language, relationships, and behaviors.

Value Discovery and Delivery

The enterprise (organization) is focused on value (results) via ongoing value discovery and delivery efforts.

A value discovery project (effort) is focused on discovering valued products/services/experiences (results).

A value delivery project (effort) is focused on delivering valued products/services/experiences (results).

Transformation

Transformation involves fundamental change that fosters organizational health (performance and well-being).

Enterprise transformation involves the fundamental change of an enterprise, not merely causing the enterprise to change its structure or processes, but causing the enterprise to change its culture (expressed through language, relationships, and behaviors), which may in turn cause the enterprise to change its structure and processes.

Organizational health involves a high performing enterprise that thrives within its context.

A Journey and a Way of Being

Transformation coaches are catalysts who foster (via intervention) the enterprise’s journey towards a more healthy way of being.

Transformation Distilled

Transformation is enacted across three phases (Context, Foundation, and Evolution) and involves three core or essential elements (Nucleus, Dynamics, and Communities).

The phases are not merely sequential but general overlap (within a 3 to 6+ month timeframe for all three phases, which is further adapted to the needs/context of the enterprise).

Phase I: Context

(click figure to enlarge)

The first phase involves engaging and energizing the enterprise.

This phase focuses on sufficiently appreciating the enterprise to foster the creation of a “minimal” value discovery and delivery framework and transformation roadmap.

The framework expresses a value-centric way of being. The framework may leverage almost any Strategy, Leadership, Execution, Cultural, etc. model or approach (for example, [1], [2], [3], [4], etc.). The roadmap expresses a transformation journey.

• Sufficiently understand (gain awareness of) the enterprise.
• Establish a nucleus based on the constituencies of stakeholders.
  A nucleus is a group of people who are the initial agents of transformation.
• Engage the nucleus and leverage the understanding of the enterprise, various bodies of knowledge (content), and various bodies of practice (experiences) to derive a “minimal” value discovery and delivery framework (initial draft).
• Engage the nucleus to socialize (with the constituencies of stakeholders) and refine the “minimal” value discovery and delivery framework (metaphorically, a “skeleton”).
• Introspection, reflection, appreciation, and greater awareness are essential!
• Ensure the wholeness of the nucleus and enterprise. This is essential!

Phase II: Foundation

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The second phase involves fostering the enterprise experiencing and elaborating its new way of being.

This phase focuses on value discovery and delivery efforts progressively experiencing and elaborating the emerging framework.

• Engage the nucleus to enact value discovery and delivery efforts to experience and elaborate the framework. Ensure people experience vital natural & instinctual human dynamics.
• The nucleus must live the framework and practice & exhibit the language, relationships, and behaviors.
• The nucleus must coach other people and engage & invite other people to live the framework.
• Those engaged, invited, and impacted will in turn live the framework and coach other people, etc.
• Introspection, reflection, appreciation, and greater awareness are essential!
• From enactment, a more healthy framework (metaphorically, a “skeleton with muscles”) will emerge.
• Ensure the enterprise recognizes the journey and way of being. (Commonly referred to as “the shift“).
• Engage the nucleus to renew the enterprise’s value discovery and delivery capabilities (means, ends, and means-ends). Ensure people experience vital natural & instinctual human dynamics. Renewal is essential!

Phase III: Evolution

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The third phase involves fostering the enterprise evolving and embodying its new way of being.

This phase focuses on value discovery and delivery efforts progressively evolving and embodying the emerging framework.

• Engage the nucleus to further enact value discovery and delivery efforts to evolve and embody the framework. Ensure people experience vital natural & instinctual human dynamics.
• The nucleus must live the framework and practice & exhibit the language, relationships, and behaviors.
• The nucleus must coach other people and engage & invite other people to live the framework.
• Those engaged, invited, and impacted will in turn live the framework and coach other people, etc.
• Introspection, reflection, appreciation, and greater awareness are essential!
• From further enactment, a more healthy framework (metaphorically, a “skeleton with muscles”) will emerge.
• Engage the nucleus to renew the enterprise’s oversight capability. Ensure people experience vital natural & instinctual human dynamics. Renewal is essential!
• Engage the nucleus to foster communities of commitment around the value discovery and delivery framework (metaphorically, a “skeleton with muscles and skin”).
• Ensure the wholeness of the communities of commitment and enterprise. This is essential!

Does it Work? What are the Results?

This is an experientially derived and proven approach to transformation.

Does it work? It works! But, it (adopting, scaling, and sustaining the change) is constrained by the readiness of the enterprise to transform, the potency of the nucleus involved, and the potency of the coaches involved.

What are the results? Anecdotal evidence suggests a 3 to 5 times improvement in organizational health (performance and well-being)! See the recommendations for more information or contact me directly.

Artful Agility

What is AIR?

Intention without action is useless.
— Caroline Myss

Action, Intention, and Result

Without Action, there is Nothing!
Without Intention to orient Action, there may be Nothing!
A Result is the outcome of Intention and Action!

Human nature and every human endeavor can generally be explored as a Meaningfully-Purposeful Enterprise relative to two dimensions, a system dimension and a socio-cultural dimension that form an ecosystem, with hundreds if not thousands of perspectives/paradigms, models, bodies of knowledge, etc.

Throughout our transformation practice in working with clients to achieve greater health (performance and well-being), we consistently return to a quintessential model or way of being which we call AIR — Artful Agile (that is, Agility)

AIR Distilled

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AIR involves Actions, Intentions, and Results:

• What is there without Action? Nothing! Action and Acts/Actions express How.
• What is there without Intention? Possibly Nothing! Intention and Intents/Intentions express What.
• Result express Why.

AIR involves Owners:

• An Action Owner expresses Who commits (an individual or collective) and is accountable for the Actions (which may be estimated and measured) concerning Results. The Action Owner pulls from the Intention Owner.
• An Intention Owner expresses Who commits (an individual or collective) and is accountable for the Intentions (which may be prioritized, sized or estimated, and measured) concerning Results. The Intention Owner pulls from the Action Owner.
• A Flow Owner (or Dynamics Owner) expresses Who commits (an individual or collective) and is accountable for Flow & Pull concerning Harmonization. The Flow Owner facilitates flow.

AIR involves Flow and Pull:

• Actions & Intentions and Action Owners & Intention Owners are in an intertwining dance of engagement where Flow & Pull express When & Where.
• Communication focuses on interchanging content to foster Collaboration and Co-creation.
• Cooperation focuses on operating in parallel to foster Collaboration and Co-creation.
• Coordination focuses on regular/rhythmic and irregular/intermittent points in time for synchronization (coordinating operating in parallel and interchanging content), which may be radiated as appropriate.
• Collaboration fosters Owners working together toward a Result.
• Co-creation fosters Owners creating together a Result that is the outcome of Intentions and Actions.
• Collaboration and Co-creation focus on meaningfully purposeful contribution and confirmation using flow & pull. Contribution involves “investing” content (as in return-on-investment) based on another collaborator’s pull for content. Confirmation involves oversight and attaining a “return” on content (as in return-on-investment) based on one’s pull for content. Collaborators pull content from one another as needed, but don’t push content unnecessarily. Collaborators foster the flow of content as needed, but don’t batch content unnecessarily. Notice the paradigm shift from batch-and-push to flow-and-pull. Furthermore, collaborators are meaningfully purposeful toward a result.

AIR is real:

• Community is about Love — Intimacy (awareness and connectedness), Passion (energy and drive), and Commitment (decisions).
• Time is the universal currency — timeboxing and cadence are essential! Time cycles establish the context for collaboration and co-creation.
• Harmonization focuses on adoptable, scalable, and sustainable Collaboration and Co-creation as everything emerges and reality unfolds.

AIR in Practice (and Social Business Design)

Consider the Dachis Group’s Social Business Design — “the intentional creation of dynamic and socially calibrated systems, process, and culture” — a framework of four mutually exclusive, collectively exhaustive archetypes: Ecosystem, Hivemind, Dynamic Signal, and Metafilter.

How does the Dachis Group’s Social Business Design relate to AIR:

• “Intentional” relates to AIR’s Intentions.
• “Creation” relates to AIR’s Actions and Co-creation.
• “Dynamic” relates to AIR’s Flow & Pull of Collaboration and Co-creation.
• “Socially” relates to AIR’s Owners and Collaboration.
• “Calibrated” relates to AIR’s Harmonization.

Likewise, AIR is congruent with Agile — an umbrella term for Scrum, Extreme Programming, Lean Development, Kanban, etc. whose roots are in Agility or the “ability to be agile”.

Why AIR?

We consistently return to a quintessential model or way of being that is agnostic and does not force any particular system dimension or socio-cultural dimension on our clients — but — it empowers our clients to embrace their contextual nuances & adornments and transform & achieve greater health (performance and well-being).

Furthermore, AIR compliments and may be complemented by almost any Strategy, Leadership, Execution, Cultural, etc. model or approach — where the whole is greater than the sum of its parts! Any organization (enterprise) focused on value (result) generally includes Business, Technology, Governance, Operations, Program/Project Management, and Enterprise Architecture functions. While all organizations are unique, this merely serves as a general description — wherein AIR may be introduced…

• Business areas generally include Marketing, Sales, Support, and Products/Services.
• Technology areas generally include Engineering and Quality, Architecture, and Infrastructure.
• Program/Project Management focuses on the human means to deliver value.
• Enterprise Architecture focuses on the technology means to deliver value.
• Governance focuses on oversight in the delivery of value.
• Operations focuses on supporting the delivery of value.

Comparatively (considering other approaches), we are often told that such an approach is “a breath of fresh air“!

What’s Mine Is Yours: The Rise of Collaborative Consumption

I received an advance copy of Rachel Botsman’s (@rachelbotsman) and Roo Rogers’ What’s Mine Is Yours: The Rise of Collaborative Consumption book (Amazon) through the advance copy program for bloggers.

As Umair Haque (@umairh) distinguishes between 20th century “dumb” growth and 21st century “smart” growth in The Smart Growth Manifesto and The Generation M Manifesto, Botsman and Rogers distinguish between 20th century hyper-consumption and 21st century Collaborative Consumption.

Haque elaborates that

• Dumb growth is “unsustainable, unfair, and brittle” and
• Smart growth is “sustainable, equitable, and resilient.”

See The Smart Growth Manifesto: Creative People Collaborating to Create Value and The Generation M Manifesto: Movement & Meaningful Stuff that Matters the Most for more!

Similarly, Botsman and Rogers elaborate that

• Hyper-consumption is about “the endless acquisition of more stuff in ever greater amounts” and
• Collaborative Consumption is about “traditional sharing, bartering, lending, trading, renting, fighting, and swapping, redefined through technology and peer communities.”

Collaborative Consumption is an “emerging socioeconomic groundswell” where “the old stigmatized C’s associated with coming together and ‘sharing’ — cooperatives, collectives, and communes — are being refreshed and reinvented into appealing and valuable forms of collaboration and community,” which is cultivating a culture and fostering an economy of “what’s mine is yours.”

The Book

The book, which is very rich in breadth and depth, elegantly organizes its concepts in an Introduction and three parts: Part 1, Context (for the groundswell); Part 2, Groundswell; and Part 3, Implications (of the groundswell). It offers many examples of Collaborative Consumption organized into three systems (product service systems, redistribution markets, and collaborative lifestyles) that share similar underlying principles (critical mass, idling capacity, belief in the commons, and trust between strangers).

After much consideration on how best to introduce what the book is really all about, I decided to share a few impactful points.

Introduction: What’s Mine is Yours

Collaborative Consumption fosters a “healthy” system between individuals and collectives that does not prescribe rigid dogma, but it blends aspects of the socialist ideology and capitalist ideology without itself being an ideology.

From Generation Me to Generation We

Collaborative Consumption reminds us that self-interest is not necessarily greed and emphasizes socioeconomic aspects faithful to Adam Smith’s intent and the natural synergy between self-interest and the collective good. This interdependence between self-interest and the collective good is fostering a shift in mind-set from Generation Me (“what’s in it for me”) to Generation We (“what’s in it for us”).

The Rise of Collaborative Consumption

Over the past few years, collaboration has become a driving force in our cultural, political, and economic systems. Collaborative Consumption highlights the “revolution of collaboration” and emphasizes the sociocultural aspects of collaboration among peers. In particular, people participate in Collaborative Consumption as “peer providers” who provide assets (products or services) or “peer users” who consume assets.

The Evolution of Collaborative Consumption

Consumption is now much more dynamic and involves giving and collaborating to get what you want, which is fostering the emergence of a more sustainable system focused on “basic human needs — in particular, the needs for community, individual identity, recognition, and meaningful activity”. Thus, Collaborative Consumption offers a world view that unifies the socioeconomic and sociocultural aspects of community, individual identity, recognition, and meaningful activity through a collaborative and sharing culture.

In Conclusion

Botsman’s and Rogers’ What’s Mine Is Yours intertwines with Haque’s smart growth around socioeconomic and sociocultural aspects.

Visit the online hub for Collaborative Consumption for more information.

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Excerpt from What’s Mine Is Yours by Rachel Botsman and Roo Rogers. Copyright © 2010 by Rachel Botsman and Roo Rogers. Posted with permission of HarperCollins Publishers. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.

Zappos’ Tony Hseih’s Delivering Happiness

I received an advance copy of Tony Hsieh’s Delivering Happiness: A path to Profits, Passion, and Purpose book (Amazon) through the advance copy giveaway program for bloggers.

The Book

The book offers Zappos’ philosophies & vision and shares highlights of Tony Hseih’s path toward discovering how to find happiness in business and in life.

After much consideration on how best to introduce what Delivering Happiness is really all about, I decided to share my journey though the book using passages from the book itself.

Competitive Advantage

Looking back, a big reason we hit our goal early was that we decided to invest our time, money, and resources into three key areas: customer service (which would build our brand and drive word of mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team).

Even today, our belief is that our Brand, our Culture, and our Pipeline (which we internally refer to as “BCP”) are the only competitive advantages that we will have in the long run.

Everything else can and will eventually be copied.

Competency, capability, capacity, efficiency, effectiveness, etc. are emergent properties of culture, the source of competitive advantage!

Brand, Culture, and Core Values

Over time, as we focused more and more on our culture, we ultimately came to the realization that a company’s culture and a company’s brand are really just two sides of the same coin. The brand is just a lagging indicator of a company’s culture.

Brand, which is ultimately external identity, lags culture, which is fundamentally internal identity!

The fundamental problem is that you can’t possibly anticipate every possible touch point that could influence the perception of your company’s brand.

Our believe is that if you get the culture right, most of the other stuff — like great customer service, or building a great long-term brand, or passionate employees and customers — will happen naturally on its own.

Culture is “the source”!

We’ve formally defined the Zappos culture in terms of 10 core values.

It’s really important to come up with core values that you can commit to. And by commit, we mean that you’re willing to hire and fire based on them.

Without commitment, what’s the value of culture / core values!

At the end of the day, just remember that if you get the culture right, most of the other stuff — including building a great brand — will fall into place on its own.

It was necessary to come up with core values — essentially, a formalized definition of our culture — in order for us to continue to scale and grow.

Core values (formalized definition of culture) are essential for scale and growth!

Our philosophy at Zappos is that we’re willing to make short-term sacrifices (including lost revenue or profits) if we believe that the long-term benefits are worth it. Protecting the company culture and sticking to core values is a long-term benefit.

Don’t confuse short-term benefits for long-term sacrifices!

The Culture Book

The original idea was simple. We would ask employees to write in a few paragraphs, the answer to the question: What does Zappos culture mean to you? Except for correcting typos, we would leave it unedited and publish everything in a book.

Approach culture informally …

In an age of transparency, when Twitter can contribute to a company’s success or its downfall, is there anything more compelling than exposing your company’s DNA to the world.

If you’ve thought about it too, here are a few things worth considering:

1. The Culture Book is not about the book … it’s about the culture. … Without a separation of work and life, it’s remarkable how values can be exactly the same.
2. It’s a short-term expense, long-term investment. … Once you have a culture — invest in it.
3. Make it available to everyone.
4. Give your evangelists a voice.
5. A word is a word, and a picture is worth a thousand … but a brand is worth a million. … By sharing a common belief system, Zappos employees become the unified brand to the world.
6. Not all cultures are the same.
7. Evolve.

The Core Values Document

As we grow as a company, it has become more and more important to explicitly define the Zappos core values from which we develop our culture, our brand, and our business strategies.

… and approach core values more formally in proportion with growth!

While there are many subcomponents to each value, we’ve distilled the most important themes into the following 10 core values.

1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and A Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships with Communication
7. Build a Positive Team and Family Spirit
8. Do More With Less
9. Be Passionate and Determined
10. Be Humble

We want all 10 core values to be reflected in everything we do, including how we interact with each other, how we interact with our customers, and how we interact with our vendors and business partners.

Reflect core values in all interactions!

As we grow, our processes and strategies may change, but we want our values to always remain the same. Our core values should always be the framework from which we make all of our decisions.

Reflect core values in all decisions!

Each of the core values becomes a natural part of employees’ everyday language and way of thinking. Committable core values that are truly integrated into a company’s operations can align an entire organization and serve as a guide for employees to make their own decisions.

Committable core values (not merely core values) can become a guide and compass for making decisions, and are a guide and compass when truly operationalized!

Core values are essentially a formalized definition of a company’s culture.

It doesn’t actually matter what your company’s core values are. What matters is that you have them and that you commit to them. What’s important is the alignment that you get from them when they become the default way of thinking for the entire organization.

Core values integrate and align, and are reflected in language and thought!

Your personal core values define who you are, and a company’s core values ultimately define the company’s character and brand.

Core values are the essence of identity, internal and external!

For individuals, character is destiny. For organizations, culture is destiny.

Individual character and collective culture determine destiny!

Rather than focusing on individuals as assets, we instead focus on building as our asset a pipeline of people in every single department with varying levels of skills and experience, ranging from entry level all the way up through senior management and leadership positions. Our vision is for almost all of our hires to be entry level, but for the company to provide all the training and mentorship necessary so that any employee has the opportunity to become a senior leader within the company within five to seven years. For us, this is still a work in progress, but we’re really excited about its future.

Not merely talent, but an incubator of talent, is key!

Happiness

“What is your goal in life?”

If you keep asking yourself “Why?” enough times, you’ll find yourself arriving at the same answer that most people do when they repeatedly ask themselves why they are doing what they are doing: They believe that whatever they are pursuing in life will ultimately make them happier.

The Pleasure Principal!

In 2009, we expanded our vision and purpose to a simple statement: Zappos is about delivering happiness to the world. … the evolution of the Zappos brand promise over the years: Customer Service (2003), Culture and Core Values as Our Platform (2005), Personal Emotional Connection (2007), and Delivering Happiness (2009).

From Service to Culture / Core Values Platform to Connection to Happiness!

From my perspective, it seemed to make sense to try to learn more about the science of happiness so that the knowledge could be applied to running our business.

Happiness is really just about four things: perceived control, perceived progress, connectedness (number and depth of your relationship), and vision/meaning (being part of something bigger than yourself).

Control, Progress, Connectedness, and Vision are the essence of Happiness!

Three Types of Happiness: Pleasure (chasing the next high), Passion (flow, where peak performance meets peak engagement, and time flies by), and Higher Purpose (being part of something bigger than yourself that has meaning to you).

Happiness through Pleasure, Passion, and Purpose!

I think the parallels between what the research has found makes people happy (pleasure, passion, purpose) and what the research has found makes for great long-term companies (profits, passion, purpose) makes for one of the most interesting fractals I’ve ever come across.

While People seek Pleasure and Companies seek Profit, they both seek Passion and Purpose!

Setting out to create a great long-term company may seem to be an overwhelmingly daunting task at first, but using happiness as an organizing principle can help guide you along the way.

While Happiness is a viable organizing principle, …

When you walk with purpose, you collide with destiny. (Bertice Berry)

… Purpose ultimately orients us toward our destiny!

In Conclusion

As a guiding principle in life for anything I do, I try to ask myself, What would happen if everyone in the world acted in the same way? What would the world look life? What would the net effect be on the overall happiness in the world?

No matter what your past has been, you have a spotless future. (Author Unknown)

Thousands of candles can be lit from a single candle, and the life of the candle will not be shortened. Happiness never decreases by being shared. (Buddha)

If you want to understand the “Zappos Experience” — how Zappos has achieved greatness — read and reflect on Delivering Happiness.

Additionally, Delivering Happiness readily references the influences of two other books — Good to Great and Tribal Leadership.

Degrees of Connectedness: Communication, Conversation, and Collaboration

Inspired by a conversation with Venessa Miemis (@VenessaMiemis) of “emergent by design”…

Life is a journey through space and time. Each individual is on their own life trajectory across this space-time continuum. Each trajectory encounters other trajectories with varying degree of proximity. Connectedness (connection) involves the degree of proximity among trajectories on this space-time continuum.

From life’s experiences emerges at least three degrees of connected.

• The first degree of connectedness, Communication, involves individuals informing one another.
• The second degree of connectedness, Conversation, involves individuals conversing or dialoging with one another.
• The third degree of connectedness, Collaboration, involves individuals co-creating together.

Reflect upon your day, consider your encounters, and consider your degree of connected…

(Please note that this blog post will be further elaborated)