I’ve often wondered if one of the reasons transformations fail to meet
expectations, is because so many organizations misuse the word
“transformation.”
Let’s start with a couple of simple definitions.
trans·for·ma·tion
/ˌtran(t)sfərˈmāSH(ə)n/
noun
- a thorough or dramatic change in form or appearance.
trans·form
/tran(t)sˈfôrm/
verb
- make a thorough or dramatic change in the form, appearance,
or character of.
By
these definitions, one would assume that any organization is going through a
really fundamental change. Something that will impact even the character
of the organization. That sounds like a BIG DEAL!
If you
were to look under the covers of what most organizations call
“transformations,” I suspect you’ll find something somewhat
different. You see, when an organization claims to transform, the change
is often limited to the addition of some new tools, or a migration to a
different process or framework (way of working.) Of course, these changes
can be valuable, and provide some additional efficiency, but the utility of
these changes are limited still by organizational structure, beliefs, value and
culture of the organization. I would argue these types of changes are not
really a “transformation” but rather something else.
Introducing
the “Hierarchy of Transformation”
In
order to bring clarity and alignment, I propose the following language to help organizations
orient around the type of changes they are undertaking. The Hierarchy of
Transformation is intended to help provide clarity, not just around what an
organization is attempting to undertake, but also to reinforce a discussion on
the types of returns an organization can expect from that change!
Retooling
The
tip of the hierarchy is called “retooling.” This is the
addition or replacement of tools or processes that a team or organization may
use to complete its work. Retooling may also involve a change in practice
or “framework” that the team employs to move work through the organization.
Retooling is arguably the easiest (minimal effort) when one thinks about the
changes an organization can make. It’s also the most limited when it
comes to improving the effectiveness and efficiency of an organization.
Deploying new tools, processes or frameworks without an accompanying change to
organizational structure, principles and values may provide some additional
transparency, but they rarely remove impediments that are causing
inefficiencies or negatively impacting the effectiveness of your people.
Reorganizing
Reorganizing
is the second tier of the Hierarchy of Transformation. This layer
includes addressing the structure of the organization, as well as the behaviors
of individual leaders and team members. Reorganizing can be a powerful
change because it is used to organize the right people in a way that emphasizes
solving problems or creating value quickly and efficiently. Reorganizing
is disruptive, and is often perceived as a “loss of power or
influence” by the legacy organizational structure, however this type of
change will most often result in a much bigger “bang for the buck”
when compared to Retooling. Spoiler alert – reorganization WHILE
retooling has a much higher level of success, and can more effectively deliver
on the goals driving the change in the first place.
Transformation
The
last layer on the Hierarchy of Transformation is called (you guessed it)
transformation. Transformation actually tackles shifting the mindset
(purpose, values and principles) that guide the very way your organization
thinks about serving their customers. Creating alignment around purpose,
being clear (and reinforcing) what the company values, and how those values are
brought to life will, in all likelihood, lead to rethinking how
teams are organized, what frameworks they use to create value, and what tools
they use to communicate and facilitate work. A transformation starts, and
is driven by, a relentless belief that the organization can, and should continuously
improve the way it serves its customers, and creates valuable solutions for the
people who count on it. While the effort to truly transform is high, the
return on the investment in terms of improved effectiveness and efficiency, not
to mention engagement of your teams far outweigh the cost to change.
Words
matter, and calling something a “transformation” when it’s really
something else really creates mismatched expectations, and can set an
organization up for disappointment. Be thoughtful about the kind of
change you’re making, and be transparent with what it is (and the why) that
you’re trying to accomplish. Retooling and Reorganizing aren’t bad, and
can lead to improvements for an organization, but call it what it is… you’ll
be happier with the results and set the right expectations.
We all
win together.