Transformation is not driven by data, processes and technology roll-outs, it is driven by people. I have read countless articles about the realities of transformation; and each one underplays the role of the human element.
A few days ago, I shared a quote from a McKinsey article that promised to unveil the truth about transformation. In it, the authors shared six questions that executives should be asking themselves when driving change. They touched on the flow of value; the huge leadership challenge ahead and the importance of setting high aspirations. All of this, I agree on.
Asking the right questions
However, one question stood out for me: “What’s it going to take to get the organisation to take the change seriously?” This should be the first question. It is where strategy lives or dies, because this is where human reality collides with ambition. However, it also needs rewording. Let me explain.
In May, Deloitte published an interview with Patrick Jany, the CFO of Maersk, a venerable shipping giant, which has embarked on an ambitious digital transformation to become a “global logistics integrator”. In it, Jany spoke about how one of the key learnings has been that it is essential to thoroughly understand business processes before you start building systems to manage workflows. This quote crystallises my argument. Jany says: “It is easy to build a nice system, but if it is based only on theory and not grounded in reality, people will quickly stop using it after rollout.”
“It is easy to build a nice system, but if it is based only on theory and not grounded in reality, people will quickly stop using it after rollout.”
He adds that he has seen first-hand the impact of the resultant ‘unhappy flow’ and saw that “80-90% of users end up focusing on problem-solving and making exceptions to the intended workflow”. This resulted in reduced productivity and bad service delivery; but, I would add, possibly also led to confused employees who felt that the transformation had been foisted upon them without any understanding of how they actually work.
Observation and agency
Jany says that the company’s ELT have ensured that this doesn’t happen by observing operations first hand to see what challenges their employees are facing and to ask for constant feedback. This then, he says, “…guide[s] decisions and set priorities”. Maersk’s team has given the employees agency in the transformation.
“We often frame business transformation in terms of ‘people, process, technology’. We put ‘people’ first for a reason.”
It is so important for leaders to design transformations with this in mind because change is hard. As John Chambers from the Japanese multinational imaging and electronics company, Ricoh, wrote: “We often frame business transformation in terms of ‘people, process, technology’. We put ‘people’ first for a reason.” He continues: “It starts with a mindset shift – a shift away from what has always been done and towards what could be. And when employees feel like they are actively involved in the change process (as opposed to it being done to them), this could even help to embed the changes quicker and bring about lasting change.”
There it is – sustainable change or a true transformation can only happen if people are at the heart of it. This is where EQ comes in and is the key tool in a leader’s pocket to negotiate a time of upheaval. So coming back to the question posed by McKinsey, it may be directionally right but it feels transactional. It implies effort and not belief. What we really need to be getting at is: “What must be true for our people to feel safe enough, motivated enough, and confident enough to truly change?”
