Sunday, January 30, 2011

No Transformation Leader, No Radical Change Achieved (#2)

In my last entry, I suggested to Jack that he hire a full-time transformation leader to ensure “Operation Transform” is executed with excellence.   I should correct that – it’s not a suggestion – it’s an emphatic MUST!  Making radical change starts with a compelling vision and a smart plan.  Since the desired change in outcomes is, well, radical, then sharing the plan with employees, vendors, creditors and customers is not enough.  That’s leaving success up to chance.  Jack’s leadership team must assign “Operation Transform” to an individual who has already proven he or she is capable of leading a complicated, long-term, mission-critical, large-scale project…SUCCESSFULLY!
Radical change is serious business.  It’s costly and it’s painful, because it requires a great deal of planning, perseverance, and focus.  It’s akin to executing a u-turn in an aircraft carrier traveling at full speed, in high seas.  The ship’s leadership and crew must be aligned to achieve the desired outcome – reverse the course efficiently and effectively, by minimizing stress on the ship’s engines and ensuring that nobody and nothing ends up in the drink. 
Assuming Jack cannot spend 100% of his time making the transformation happen – he and his leadership team must assign the job to a qualified individual who can and will.   My preference is to pick someone who, if they achieve the desired outcomes, will be promoted to the senior leadership team.  That’s how important this transformation leader position is to the future of the enterprise.
Think about this example:  In the mid-1980s, following severe losses in market share, customer satisfaction and profit, Xerox Corporation’s executive team concluded that foreign competitors were not “dumping” copiers in North America, they were outplaying Xerox in the design studio, the factory and the marketplace. Few US based companies had any idea that a large number of Japanese manufacturers, who had been applying the statistical control techniques taught by Deming since the 1950s, were yielding unheard-of improvements in quality and productivity. The improved quality combined with reduced costs created wild demand for Xerox’s competitors’ products. 
How do you undo 30 years of competitive progress?  The Xerox Board agreed with CEO David Kearns’ recommendation to radically reinvent the entire company.  A new vision.  A new strategy. A new organization structure.  And, most significantly, new design, manufacturing, sales, and operating processes. The proposed change initiative required that entire corporate organization structure be turned upside down.  Overnight. Yes, nearly 100,000 employees would be affected on the same day.
Given the magnitude of the transformation required to resuscitate the company, David Kearns knew it would take an accomplished leader to radically change Xerox’s culture, which had evolved since its founding as Haloid Photographic Corporation in 1906. Kearns selected a brilliant engineer, a star among executives who, as a leader in Xerox’s Business Products and Systems group, was known for his ability to get things done. 
For a full year, the transformation leader and his team worked tirelessly to redesign, redevelop and rejuvenate the Xerox Corporation; and for several years, that same team executed and monitored the plan with military precision.  The design and execution transformation team earned Xerox The Malcolm Baldrige National Quality Award in 1989 and, more importantly, new respect among competitors, customers and Wall Street.  Without a spirited, empowered change agent as transformation leader, the Kearns’ initiated radical reinvention of 80+ year old Xerox would never have materialized. 
“Radical change requires a great plan”, I continued with Jack, “and even better execution. You’re at the precipice of this transformation. Don’t stop once you’ve developed the strategic plan. To achieve your desired outcomes, you MUST invest in and empower one among your best and brightest, which will improve the odds that Radical Change will be achieved….”


You Say Monumental, You Behave Incremental (#1)