Why Transforming an Organization is Difficult: Resources, Processes, Values and the Migration of Skills

Why do organizations find it difficult to change when facing a disruption? The question is not new but it continues to puzzle researchers and managers alike. Part of the answer lies in the observation that over time, what an organization knows migrates: its capability initially lies in its resources (especially human), then it evolves to processes and finally to values. It is at this last stage that change is the most difficult.

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Transformation: No, you do not have an execution problem

It is a story repeated many times: “Our transformation strategy is perfectly clear. But we have a big execution problem” as the member of the executive committee of a large multinational was telling me a few weeks ago. He added: “Now, disruptions are coming from everywhere, we spend millions on transformation plans, we put ‘digital’ and ‘startup’ everywhere, and nothing – nothing! – happens.” Implicitly, of course, and soon very explicitly, the explanation fuses: it is down below that people are incapable! Managers ‘down below’ are not ‘aligned’, so goes the explanation. They do not know how to execute. Or worse: they are resisting change. We must identify the culprits, the traitors! The plan must be executed!

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Managers: You’ve got more power than you think

We live in an age which idealizes managers, yet never have these managers felt so powerless. Whatever their level in the hierarchy, they are confronted with increasing pressure in terms of control, reporting, senseless procedures, all resulting in a loss of autonomy which is immensely frustrating. As one of them was telling me recently “I have a superb company car, a personal assistant, a huge office in a very nice location in a great city, I am paid handsomely, feeling like Zeus on the tope of the Olympus, and yet when I want to buy a copier I need to ask the head office, and it’s not getting better. I am losing autonomy as time passes. All I’m doing more and more is filling Excel sheets.”

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Innovation: How Silence is Killing Your Organization

Memo to the CEO:

You tell me that you want your business to be more innovative. That it is necessary to free the energies of your collaborators, to transform your organization into an enterprise 2.0 or 3.0, to adopt a startup spirit, and what not. You seem to be enjoying the stories of Google, 3M, Apple of course, just like you liked to hear childhood’s tales. Again and again. Fascinating and moving. You say innovation is a strategic pillar. It is in the foreword of your annual report, illustrated with nice pictures with children. For children are the future. You organize creativity seminars, you set up ideas boxes, you also set up an innovation cell, hosted in a loft with designer furniture, and of course you open a Lab. You assure me that innovation is a priority. At least that’s what your managers are telling me. But this is not true.

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The Creosote, this High-Performing Manager Who Destroys Your Organization

One of the important factors of organization decline is the type of managers it recruits and promotes. Among them is what I call the ‘Creosote manager’, the one who kills life all around him to flourish. Creosote people populate just about every organization that I encounter and that have so much trouble innovating. Would there not then be a causal link?

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