Great Change E-Book

Adam Bennett

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 506

Veröffentlichungsjahr: 2023

Beschreibung

Rethink what you know about THE WAY your business works: learn how to implement strategy and drive real, measurable change in your organisation Are you tired of developing strategies that aren't properly implemented? Do you want to overcome disruption and create positive change in your organisation? Great Change: The WAY to Get Big Strategy Done is the book that will show you how to turn your plans into reality. Author and experienced leader Adam Bennett shares a unique, engaging approach to organisational transformation that will kindle your motivation and ignite your ingenuity. Great Change combines the philosophy of the Tao Te Ching and Japanese martial arts with real-world stories to deliver a practical, 5-step process for success. You'll discover the mindset and the actions that will ensure your strategy creates real, measurable results. In all organisations, there is a WAY of doing things. These methods, approaches, and cultures combine in a manner that defines the very core of that organisation. Think about it: You know intuitively "the way" that your current organisation works, what it stands for, and why it exists. But just as there is a WAY of being, there is a WAY of changing. Great Change shares a 90-day blueprint that unpacks exactly how you can combine the right mentality and mechanics to build momentum and spark transformation. * Rethink what you know about THE WAY of being and doing in business * Uncover unique and inspiring leadership lessons from philosophy, world history, and big business * Develop a mindset for driving action, challenge your own way of thinking about change, and identify the corporate characters who resist it * Learn the tried-and-tested methods to accelerate your plans for organisational transformation * Discover how to build momentum in a new role -- and avoid the common mistakes leaders make in spearheading change In today's world of rapid evolution, uncertainty, and always-on media, organisations need to adapt quickly and effectively to stay competitive. They need to sense what is happening in the world and to strategise. But that is not enough. They need to know how to actually get that strategy done. Great Change reveals the tools, skills, and methodologies any leader, executive, or manager can use to deliver successful results, even in the most challenging times.

Leseprobe

Table of Contents

Cover

Title Page

Copyright

Dedication

Acknowledgements

About the author

Introduction

We've not yet reached peak change

Leading transformation is not new

What this book is about

Who this book is for

Three inspirations for this book

How you can use this book

It's always about the people

CHAPTER 1:

The WAY things get done

Elements of the WAY

The corporate WAY

Adaptation or extinction

CHAPTER 2:

Understanding transformation

So what exactly is transformation?

We've not yet reached peak change and disruption

Company-centric forces

Why

you

must care about transformation

Transformation has always been difficult

Three reasons transformation is so hard

Why it's important to understand the need for transformation

Notes

CHAPTER 3:

The mindset for great change

Curiosity: empty your cup

Sacred beliefs: recognise that you have deep biases

Shoshin

: maintain your intellectual humility

Ambition: remember that it's not only about you

Kokoro

: get to the heart of the matter

Kime

: it's all about focus

Renewal: know when to let go and try something else

Urgency: remember that the meter is running

Trust: don't lose it

Humour: it's a long day without a laugh

Resilience: find some, because you'll need it

Get over yourself: put things down by the side of the road

CHAPTER 4:

The mechanics of great change

1. Do the work: personal commitment of the leader

2. Make decisions: choose, own and communicate a clear strategy

3. Build the team: get the right people

4. Be thorough: follow a proven methodology and approach

5. Keep score: use KPIs to align and provide regular feedback

Notes

CHAPTER 5:

Creating your 90-day blueprint

Making an impact

Ridgway's first 90 days as commander

Your first 90 days

Mindset

Mechanics

Mistakes

Conclusion: I wish you luck with your choice

Bibliography

End User License Agreement

List of Tables

Chapter 4

Table 4.1 when strengths become weaknesses

Table 4.2 transformation temperament

Table 4.3 transformation skills

Table 4.4 first 90 days executive assessment sheet

Table 4.5 the do's and don'ts of firing someone

Table 4.6 example transformation blueprint

Table 4.7 complementary financial metrics

Guide

Cover

Title Page

Copyright

Dedication

Acknowledgements

About the author

Introduction

Table of Contents

Begin Reading

Conclusion: I wish you luck with your choice

Bibliography

End User License Agreement

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First published in 2023 by John Wiley & Sons Australia, LtdLevel 4, 600 Bourke St, Melbourne, Victoria 3000, Australia

© Adam John Bennett 2023

The moral rights of the author have been asserted

ISBN: 978-1-394-20372-7

All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.

Cover design by WileyCover and background image: © Andrii/Adobe Stock Photos

DisclaimerThe material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.

To my best friend, Belinda. Thank you. For everything.

Acknowledgements

I'd like to offer my most sincere thanks to all of the people who have helped me on my journey so far.

In corporate life, I'm a great believer that there are those who extend ladders and are committed to helping those around them develop and succeed; and those who close hatches and are determined that no-one else will follow their ascension path through the organisation. I've been incredibly lucky to have had many people extend ladders to me and genuinely help me develop and learn.

Thank you to Grace Chopard (former VP, Global Strategy & Transformation, IBM) for taking a chance on me as a trainee management consultant and getting me started at Price Waterhouse Urwick. Thank you also to Martin Green (former Partner, KPMG) for recommending me for my first meaningful project management role, and to Lawrence Owen, Sarah Cole and Carlos de Carvalho for your support over many years, and for giving me constant challenges that stretched me out of my comfort zone. You each provided valuable lessons and examples that provided me with an early solid foundation.

Thanks also to Gavin Slater (former Group Executive, NAB) for letting me get on with things and giving me lots of rope (and sometimes Red Bull) to try the ideas and approaches I outline in this book in a real-world environment. Thanks also for your trust, aircover and support.

A special thanks to Cameron Clyne (former Group CEO, NAB) for his support and wise counsel throughout my consulting and banking careers, and for his continual example of inspirational and authentic leadership.

Thank you also to Andrew Dutton (Chairman, NSW Land Registry Services) and the board for placing their trust in me as the first CEO of the newly privatised company, and for the shared ambition to truly transform the organisation.

Thank you to Paul Starling (8th Dan, IKGA Oceania Vice President) for providing a pathway in traditional Karate-Do that ignited a lifelong passion in the philosophies and lessons associated with Japanese martial arts. Thanks also to Ray Beattie OAM and Trevor Lawler for the lessons and hard knocks along the way.

Thank you to Horden Wiltshire, CEO, former submariner and long-term Karate-Do sparring partner, for your friendship and the deep discussions over many years that have contributed ideas to this book.

For me, writing a book was a little uncertain: would anyone be interested in what I'd have to say? I'd therefore like to acknowledge the support, encouragement and constructive feedback provided by John O'Donnell, Tyrone O'Neill, Matt Englund, Mark Devitt, Melinda Smith, Nicole Mathias-Browne, Steve Barrow, Barbara McKee and Stephen White.

I'd like to thank the team at Wiley. Thank you to Lucy Raymond and Leigh McLennon for their initial enthusiasm for my book, and for guiding me on the publishing journey, and to Chris Shorten and Sandra Balonyi for their patience in working with me to fine-tune the manuscript that is now the book you're reading.

To my children, Jack and Renae, hopefully this book gives you some additional insights into what your dad was doing these many years … and Renae, contrary to your eight-year-old-self's observation, I'd like to think I did more than just ‘chat with people all day’.

Lastly, I'd like to thank my wife, Belinda Kerr, for her ongoing encouragement, chapter reviews and provocative challenges, and most critically, her down-to-earth bullshit meter, which has made such a positive contribution to this book.

Thank you all.

About the author

Adam Bennett is an experienced transformation leader with direct experience in leading and advising transformation programs across a diverse set of blue-chip companies and industries in Australia, and the Asia–Pacific.

His career spans three decades as a CEO, CIO, digital executive and management consultant. He's observed what works and what doesn't with a dry humour and is a keen observer of the many characters, good and bad, that inhabit corporate life. He is the Principal of Great Change Consulting, a specialist transformation advisory practice that helps CEOs and executives successfully implement their transformation programs.

Adam has a Bachelor of Business from the University of Technology, Sydney, where he is an Adjunct Professor (industry) and regular guest speaker on transformation. He's also a graduate of the Advanced Management Program at Harvard Business School. He has a long-term addiction to martial arts, holding a 3rd Dan black belt awarded by the International Karate-Do Gojukai Association, headquartered in Tokyo, Japan.

Introduction

Our world continues to change at an incredibly fast pace, and we've not reached ‘peak change’ just yet. How we frame this change — whether as a threat or an opportunity — is important. While the accelerated pace of change may be new, the challenges associated with transformation are not. In this book I'll unpack how to navigate these challenges, and how to leverage the lessons and examples provided by those who have come before us.

We've not yet reached peak change

The impact of technological change enabling new and innovative business models is threatening and disrupting established businesses and organisations around the world. This disruption will accelerate, so all leaders must be interested in managing change and successfully transforming their companies and organisations.

This is a book on how to do it. It defines and outlines a ‘way’ of transformation that can help leaders at all levels to adopt the right mindset and understand the very real pitfalls and challenges that make transformation difficult. It also examines how to pull the right corporate and operational levers to effect change and help a corporate transformation be successful.

It's worth noting that there are many techniques and approaches to transforming organisations, and many of their proponents approach transformation with fanatical zeal as though they're the first to deliver material change within an organisation. They may think that the challenges associated with the design and execution of large-scale transformation are different from those in the past because the objectives (build a platform business) or techniques (create automated processing interfaces) are somehow new or different from anything that's gone before. Or worse, in an environment in which no-one can be perceived to be disadvantaged, that they must pretend everyone working happily (or otherwise) within their company's status quo has the right to the same or a better role in the newly transformed organisation or company.

This makes no sense.

Leading transformation is not new

Leaders have been grappling with change since time immemorial. While there are new technologies (remember when ‘cloud’ used to just be something in the sky) and some new techniques, such as Agile, most of the transformation challenges we face today have been solved before, and many of the approaches used are just as relevant now as they once were. It's just that in many cases we never learned them, or we've forgotten them, or we've invented new words for old ideas.

There's a WAY of transformation — and by ‘way’, I mean a combination of science, proven practices, methodologies and historical examples — that can be used to help give a leader the best possible chance of successfully transforming their company.

Let's also agree that transformation and managing change is difficult.

Transformation is not impossible, but it's hard. It's empirically difficult and challenging. Many successful businesses over the past several decades — despite being full of clever, earnest and motivated people — have been unable to successfully change. I've observed the difficulty of transformation while consulting to and working in multiple blue-chip companies around the world over the past three decades.

I've set out to write a book that encapsulates what I've learned so far in a career involved directly, and almost exclusively, in the development of corporate and/or divisional strategy, and the implementation and execution of transformational change. Throughout this period, I’ve definitely tried to — in the words of Mickey Connolly, founder and CEO of Conversant — ‘reserve the right to get smarter.’

Being involved in the conception of corporate strategy and leading transformation is hugely exciting, satisfying and rewarding. Using tools to quickly get to grips with the essence of an industry and company — to really understand what the company needs to create value and make money, and to understand the strategic opportunities and threats it faces — is incredibly mentally stimulating.

Meeting and understanding a set of motivated people earnestly grappling with the challenges of industry change, trying their best to make sense of things, and worried for the future of their company and their own careers, has also been humbling and sobering.

To then craft reality-based strategies and initiatives to help a company adapt and thrive in the face of a changing landscape — and to actually lead their transformation efforts, to design and then pull different ‘levers’ to effect organisational change and take people on the journey — has been at once a privilege and massively energising.

What this book is about

As it says on the cover, this book is about Great Change. Great in that it is material, significant and worthwhile; and great in that it is also successful, fun and engaging. For the sake of clarity (and brevity), let me ensure that we're all on the same page right from the get-go by providing four definitions:

WAY

: I'll explain more on this concept later, but for now, this book is predominantly about the ‘how’ (i.e. the execution, or the ‘means’) of transformation, not the ‘what’ or ‘why’ of transformation (i.e. the strategy, or the ‘ends’). It's a blueprint and its objective, above all else, is to be useful to those who might use it.

Big

: although much of what I've learned is applicable to all kinds of change, this book is not about re-engineering your accounts payable department. It's about leveraging all the tools and levers necessary to ensure that a significant transformation is successful. And by significant, I mean a business division or, ideally, an entire corporate enterprise or government organisation.

Strategy

: while this book will inevitably help you develop cogent strategies, it broadly assumes that you know what you are looking to achieve, and that you've got a long-term objective for your organisation.

Done:

the transformation must be achievable and measurable, and something that you or anyone else can point to once implemented, and call ‘done’. Done doesn't mean ‘going to’, ‘nearly’ or ‘success is close — all we need is another $50 million’ and all the other garbage claims that many leaders of failed transformations make to feel better or to justify wastage of time and treasure. Done means done. The change or transformation must be objectively complete and deliver its original scope and benefits.

Let me also state right up front that I've observed that too many business books are dry and highbrow, so this book is a somewhat irreverent take on a serious topic. It tries not to take itself too seriously.

Who this book is for

This book is for anyone faced with understanding what's happening in the world, developing a strategy and ultimately changing their organisation. You might work for a private sector company, big or small, a government department, or some other kind of organisation. You might be the newly appointed chief executive officer, or you might be leading a large division or business unit, and you're out of your comfort zone of managing the business-as-usual operations and pushing your boat out into the uncharted waters of transformation. You might even have just been appointed as the leader of a transformation and you're seeking more tools and techniques to give your project a better chance of success.

Or you might be none of these things. You might be that young, emerging leader watching many disruptive forces play out and wondering how you'll affect the organisation that you work for. Or how you affect your career and how you might get involved in the management and leadership of transformation.

In all these cases, this book offers practical and pragmatic lessons for igniting, leading and implementing transformation, regardless of whether your team is measured in the hundreds or the thousands.

Three inspirations for this book

This book pulls together lessons from three areas I've practised closely and observed for more than 30 years:

the study of world history

the close practical study of traditional Japanese Gōjū-ryū Karate-Do

business transformation (as a long-term management consultant and hands-on executive).

Here's why I've woven these themes into the blueprint:

World history

: I've been actively reading books about history since I was about 12 years old, and after all these years, I'm one of those people who simply cannot walk past a brass plaque on a wall that explains some obscure fact from the past. Historical figures such as George Marshall, Barbara Jordan and Matthew Ridgway can still speak to us about how to tackle our very real contemporary challenges. Their leadership, psychology, and geo-political and strategic lessons have helped me throughout my career in leading transformation. Importantly, many of the concepts for thinking, developing and getting big strategy done were first developed and then honed by military leaders throughout history, so there's a strong relevance. However, let me state right up front that I'm not one of those armchair strategists who equates business with warfare. I've never been in the military, and I've never been in a war. As an avid reader of history, I know that business and organisation change is a lot easier. The stakes are not as high and, typically, every business leader goes home to their comfortable apartment, house or even mansion at the end of the day. When it comes to reading and applying military history, let's acknowledge the service of our citizens who've actually been in the military and put themselves in harm's way. Those who have had to make incredibly critical decisions. We must never kid ourselves that we are in some kind of narrow macho corporate battlefield, nor that our business jobs are as difficult. However, equally, let's also agree that we who've made our careers in business can still be incredibly competitive. We take our accountabilities and the commitments we make extremely seriously, and we are very focused on beating the competition, whoever that may be.

Gōjū-ryū Karate-Do

: Karate-Do translates as ‘the way of the empty hand’. I started studying Gōjū-ryū, one of the most traditional karate schools, in 1985. The word

Gōjū

translates as ‘hard/soft’ and I've found it's a great metaphor for navigating life. Gōjū recognises extremes while also encompassing contrast and acknowledging that each has its place. The underlying philosophy is that you remain courteous and humble at all times. You stay flexible and understand that you shouldn't rely on only one style of thinking or moving. Some situations require a hard response, some a soft response. Paradoxically, a hard situation may require a soft response, or vice versa. Martial arts training has given me a somewhat unusual (and relatively safe) way to develop my ways of thinking and has itself served as an entrée into interesting psychological mindsets and Eastern philosophies that are relevant for leading transformation.

Business transformation

: I was extremely lucky to join Price Waterhouse Urwick as a junior management consultant in 1994, which allowed me to consult to a diverse set of companies across a range of industries around the world. While I often worked on the development of corporate strategy, my passion and area of focus was on the implementation and transformation of the client's operations and company. I was never interested in the development of a strategy for its own sake, or in writing a strategy report that then stood on the client's shelf gathering dust. After 13 years as a hands-on consultant, leading the delivery of projects and client engagements, I then worked as an executive in the National Australia Bank. Over the next dozen years, I worked in a variety of roles including as chief information officer and leading digital teams. This was followed by being the first post-privatisation chief executive officer for NSW Land Registry Services as it transitioned from a former government department to its current incarnation as a highly profitable digital infrastructure business. All of these experiences have been formative and provided a huge set of lessons that I've now brought together in a cohesive whole. It's been quite the ride so far, and I've loved (nearly — let's be honest) every minute of it.

Okay, now I've got all of that off my chest, let me explain how I've laid out this book. My goal is to share some of the observations and lessons learned along the way and to be constructively provocative to challenge and complement some of the perspectives you'll already have.

How you can use this book

To be successful, any ‘way’ of transformation must acknowledge and address the difficulties associated with change. It must help an organisation make sense of the world, develop its response and most importantly (and the main subject of this book) help drive transformation and results.

Once you understand why an objective is difficult, it's easier to design actions to overcome these difficulties and achieve your goal.

This book has five key chapters intended to help you understand why change is difficult and to navigate your way forward to achieve real and meaningful — or in other words ‘great’ — change.

Each chapter lays out ideas, illustrative stories and examples, and finishes with a summary of the key points raised.

Let me briefly introduce the five chapters of the book.

1. The WAY things get done

The WAY can be defined as the very essence of how things get done in every human endeavour. In all organisations, there's a ‘way’ of doing things, and these methods, approaches and cultures combine in a manner that defines the very core of the organisation. Whether a branch of the military, a company, a school, a university, or, as I'll explain later, a martial art, all organisations evolve a distinct ‘way’ that permeates right to the very core of how its people perceive the world, think, operate, change (or not) and manage the many interactions they have internally and externally with the outside world. If you've ever been part of an organisation — and that's all of us — then you know intuitively the ‘way’ that your organisation works, what it stands for and why it exists.

2. Understanding transformation

When I use the term ‘transformation’ I'm talking about three elements, all of which are needed for success:

the identification of disruptive forces

the crafting of strategy

the successful implementation of change.

Transformation is inherently difficult because all organisations have an existing way of being that creates its own inertia, and the status quo never has to argue its case. Introducing change collides and grinds against this status quo and the well-entrenched way of being that so deeply defines the organisation seeking to change. The transformation is also likely to be resisted or sabotaged by the culture and interactions of the personalities and corporate characters that inhabit every organisation.

3. The mindset for great change

Leading and managing a transformation effort is different from managing the business-as-usual operations of an organisation, so you may need to think a bit differently. Different doesn't mean better or worse. This chapter describes some of the timeless and positive ways of thinking that can help you unlock opportunities and an organisation's potential, and personally lead a transformation effort.

4. The mechanics of great change

Just as there's a WAY of being, there's also a WAY of changing. Management consulting firms, companies and academics have long studied how to change organisations. As a result, there are different proven and time-honoured techniques and methods — or mechanics — that can help you accelerate your transformation and set it up for success. The mechanics detailed in this book are a pragmatic, commercial and practical guide for leaders of all levels that will help you take action and deliver transformation outcomes. Given the inherent complexity and difficulty of transformation, there are no silver bullets to guarantee your success. However, following a clear framework will definitely help you to give it a red-hot go.

5. Creating your 90-day blueprint

There's very little time to make a good first impression. It's something I quickly realised as a junior management consultant when I had to maximise planning time before starting a consulting engagement, and quickly build momentum at the client site to start adding value. Time is money and the meter is always running. Executive life is no different, so this chapter covers how to quickly build momentum in your new role and a ‘how to’ for building your own transformation blueprint. The world is moving fast, and expectations of you in your new role will be high, so there's no time to waste. Get at it. This chapter therefore provides you with ideas and approaches that you can put into immediate practice to build momentum.

停

A caveat: these mindsets and mechanics are not intended to be locked in stone. At the very heart of the approach is continual improvement. Use or discard some or all of these at your own discretion. You may also have techniques that you already use that are better. Great. This book is intended to promote your thinking, so you can develop and refine your own templates and transformation style.

It's always about the people

Transformation is an endeavour ultimately dependent on the scale of ambition of its leaders, and the power and patience of its resisters. Above all, it's the competition of ideas, views, biases, hopes and aspirations of an organisation's leaders and employees, with no guarantee that any particular idea or view will win. Whether an organisation successfully senses the disruptive forces that might put it at existential risk, is able to craft a compelling strategy, and then, most critically, can implement the changes required is not pre-ordained. Success will always depend upon the people involved.

To be successful, a transformation leader must assess the people around them to balance the degree to which they will promote or prevent change. Understanding people and their very human motivations, and then being willing to take action — whether that means promotion or demotion — based on that understanding, is one of the most important skills a transformation leader can develop.

It's always the people — and the very rich set of attributes, good and bad, that people exhibit in their everyday interactions — that makes corporate life so interesting. And when these people are thrust into the Petri dish of transformational change, where their very deepest assumptions are challenged, their greatest fears come true, their personal ambitions are laid bare and they face the greatest opportunity for personal development, then everything becomes absolutely fascinating.

Along the way I'll therefore share some observations of the corporate characters I've come across. I've been incredibly fortunate to have had some great role models, bosses, mentors and colleagues, and awesome people working beside me in my own executive teams. All of these people have invested in me, been patient, inspiring and tough in equal measure, and I carry something from all of them in how I approach transformation.

Equally, and let me rip the band-aid off quickly, there have also been some narcissists and psychopaths. In this book, I'll share elements of both the positive and negative personalities. Though, if I'm honest, it's far more interesting and (hopefully for you) entertaining to joke about the narcissists and psychopaths and to describe the crazier and less self-aware characters that inhabit corporate Australia and the business world more generally.

It's also worth noting that unless you understand these corporate characters and how some of them can, and no doubt will, obstruct your transformation efforts, it's impossible to design and execute a logical and thorough change program that can overcome their resistance and enable a successful transformation. In the case of corporate psychopaths, narcissists and authoritarian disbelievers, forewarned is truly forearmed.

Finally, I've made a metric shit-ton of errors and mistakes over the past 30 years. I've taken a balanced approach to these errors and professional regrets, there being things I should've done and didn't, and things I did do and shouldn't have. Let me confess that some of the lessons and recommendations in the coming pages are definitely things of which I should've taken note. Sometimes it's not until you make a mistake and feel its impact and implications that you realise that there was a better way of doing things. Hopefully you can avoid some of the mistakes I've made. Let no-one think I got everything right!

So, without further ado, let me introduce the first corporate character: the ‘self-righteous’, that special breed of executive who simply can't believe they have anything to learn. The one who could not possibly show any of the traits that I'm going to describe, and is, therefore, by definition, without an existing fault (or future potential). If this sounds like you, stop now, send me an email, and I'll refund your money because this book is definitely not for you. Otherwise, read on.

CHAPTER 1The WAY things get done

Game of Thrones is an American fantasy drama series created by HBO based on the stories in A Song of Ice and Fire by George R R Martin. Since it debuted in 2011, each of its 73 episodes has been watched by more than 44.2 million people, according to Fiction Horizon (fictionhorizon.com). It's a huge epic, shot on location across Europe and North America, involving a massively talented cast, amazing production values and a political web of intrigue across the storylines. Its combination of drama, sex and romance, and action scenes involving sword fights, pitched battles and dragons, saw it win 59 Primetime Emmy Awards, the most by a drama series.

The sword fights are amazing and play a central role in the storyline to punctuate the drama with violence. From the choreography to the way that it's portrayed, the producers have done a great job of capturing the techniques and strategies associated with the long-lost art of sword fighting. Of course, no-one really knows what it was like for two European knights to go at it with their swords because this knowledge has dimmed and disappeared over the past 500 to 600 years. Although there are some medieval swords gathering dust in some cathedrals or museums, the actual way of applying the physical sword techniques, the ways of thinking and the approach to strategy and combat are long gone. These ways, which were so critically important to the social, political and military fabric of Europe for so many centuries, haven't made it across time to be available to us now, and so the producers of Game of Thrones have had to make it all up.

Imagine if this was not the case.

Imagine that, within a taxi ride from Heathrow Airport, in the green fields outside London, you could still learn such things. For example, the traditional techniques, strategies and philosophies of wielding a European long sword, mace and halberd, and for jousting on horseback against an opponent in full plate armour, taught just as they were back in the day.

This is exactly what you can do in Japan.

Within Chiba Prefecture, near Tokyo's Narita International Airport, there's a special place. It's the Tenshin Shōden Katori Shintō-ryū, a classical sword school founded in 1447. At the school, you can learn how to use a samurai sword to fight a man wearing medieval armour and wielding a sword, halberd, spear, or long and short swords. The school's aims have remained the same since they were laid down by its founder, Iizasa Chōisai Ienao, more than 575 years ago: to produce swordsmen versed in every aspect of the art of war, from weapons skills to tactical, logistical and medical knowledge.

At the time of writing, the headmaster of the school is Iizasa Shūri-no-Suke Yasusada, the 20th generation in line from the founder. The teachings of the ryū were designated an intangible cultural asset of Japan in 1960. The curriculum incorporates a comprehensive set of actual combat techniques, organised into different ‘kata’, or groups, of pre-arranged techniques for the katana (samurai sword), naginata (halberd), rokushakubo (six-foot staff), yari (spear), shuriken (blade throwing), kumi-uchi (unarmed grappling and striking), strategies, philosophies and teaching methods. The interactions of the headmaster, teachers (sensei) and senior students — passed down verbally, in written teaching scrolls and via certain protocols over the centuries — form a distinct culture.

The curriculum, the physical location or dojo (literally, the way/place), the history, ethos and culture, combined across all of its forms and elements, comprises a martial ‘way’ (known as budo in Japan) that contains all of the physical and mental components necessary for success in sword combat.

In Japan, the concept of the way (pronounced as ‘dough’ in Japanese and written as 道 in kanji) can be loosely translated as the ‘path’ or ‘road’. The concept of the way is deeply ingrained in Japanese culture and philosophy, and has its roots in the Tao Te Ching, written by Lao Zi, a Chinese philosopher, around the 4th century BCE. At its heart is a conceptual idea that there's a way of doing things. There's a way of being a farmer, priest, soldier or merchant, and each of these pursuits has definite characteristics underpinning what they do and how they do it.

Hence, in Japan, the now international Olympic wrestling sport of judo translates to ‘the way of softness’. The striking and kicking art of Karate-Do translates to the empty (kara) hand (te) way (do). In my personal experience, Gōjū-ryū, a traditional school of Karate-Do, has its own ‘way’, which is a combination of closed and open hand striking techniques, throwing and joint locking, predominantly low-level kicking techniques, and short and stable stances. Its philosophies and strategies combine these technical aspects with distancing and timing strategies that best suit close quarter self-defence. In any case, each style has its own way that's distinctive. Watching an exponent of one of these martial arts, you can tell which art it is by the techniques they use and how they use them.

Many physical and spiritual pursuits in Japanese culture recognise this connection to a distinct way of doing things. For example, there's a way of preparing tea (cha-no-yu, the tea ceremony), a way of arranging flowers (ikebana) and a way of ink painting (sumi-e). The way permeates and defines how people in a range of activities understand, think about and perform their jobs, hobbies and sports. Critically, the way is not to be confused with what's often defined in our modern corporate context as culture. Throughout this book I use the term ‘way’ in a far broader sense than culture.

Elements of the WAY

The concept of a way is, therefore, an all-encompassing method for collecting the techniques, philosophies and modes of thinking required to undertake, and succeed in, a certain task or goal.

In traditional Japanese martial arts, these philosophies, strategies and techniques were formulated into ‘kata’, comprising long sequences of defensive and attacking moves. These individual kata, starting with sets of beginner techniques and progressing up to sets including more sophisticated techniques, can be likened to the chapters of a book, and form the curriculum of the martial arts school. Their pattern and practice are jealously guarded to ensure that they remain unchanged.

In a modern business, these philosophies, strategies and techniques would be expressed as policies, procedures, business processes and cultural expectations. Combined, they define ‘how we do things around here’ for an organisation.

In essence, then, a ‘way’ can be distilled down to its two consistent elements: mindset and mechanics.

Mindset means how people think and perceive the world. It encompasses the ways of looking at what's occurring in its context, whether that be a 15th-century sword fight, a 21st-century sports competition or a multinational business. Something happens as stimulus, you perceive it happening and then your mindset — or ways of thinking — will determine how you respond. Stimulus, perception, thinking, then response (hopefully in that order).

Putting aside sword fighting, let's think about the business world. When something happens, such as the emergence of a new competitor, the launch of a new regulation or problems with a loyal customer, your prevailing mindset will determine how you respond. The culture of your company, its approach to customer service and competition, and its procedures and training will all influence how you perceive what's happening and how you'll intellectually and emotionally respond.

These personal and professional experiences, beliefs and the culture of your company will all influence you very deeply. Perhaps more deeply than you think. All of these experiences will have laid down what are sometimes referred to as ‘sacred beliefs’ that are very powerful, difficult to challenge and fundamentally drive your behaviours. In essence, according to Changing Minds (www.changingminds.org), sacred beliefs are ‘those that people hold to be unquestionably true’.

Mechanics means how people actually respond, based on events and their mindset. The mechanics relate to the actions you take and the techniques you apply to respond to the stimulus. Depending on your mindset, you might take the following responses:

The emergence of a new competitor

:

you immediately commission a study to find out what's happening, or

you immediately cut your prices, or

you wait to see what happens.

The launch of a new regulation

:

you start researching what your company needs to do, or

you assess whether the regulation is actually in effect, or

you seek an immediate clarification meeting with your regulator.

Problems with a loyal customer

:

you tell them to suck it up, or

you immediately call them to find out what's happening, or

you remain silent and see what happens.

The range of potential responses — the mechanics — is dependent on your mindset.

While we do not use the term ‘do’ or ‘way’ in Western societies, we certainly would recognise the distinct methods of playing our familiar sports (everyone can tell the difference between batting techniques in cricket and baseball), learning musical instruments or cooking certain international cuisines. Just because we don't name it as such doesn't mean we don't actually study and use certain approaches.

Think about something that you do regularly and well: it could be a sport, a hobby, managing a meeting, closing a sale or coaching a colleague. If you do these well, I suspect that you've learned, practised and honed your skills over many years, and that you typically approach different circumstances and people with a somewhat standard set of principles because you've applied them over and over, and you know that they're likely to work. And again, I suspect that if you were asked to teach this special personal skill to someone else, you would be able to talk at length, and with passion, about what you do, how you do it, what typically leads to success, and the mistakes and pitfalls to avoid.

If you were to reflect on what makes you successful in your sport, hobby or business context, I can almost guarantee that it would probably be based on the mental methods that you use to make sense of what's happening (i.e. your mindset) and then the manner in which you respond (i.e. the actions, or mechanics, that you apply). Without knowing the terminology of what the Japanese call a ‘do’, what you've inadvertently done over these many years is develop your own ‘way’ of doing things.

The corporate WAY

Companies and other large organisations are no different. They develop their own way of being and doing things. We are sometimes tempted to think about this as culture, being the beliefs, behaviours, symbols and style of the people within these companies. This definition is too narrow. A ‘way’ is far more and all encompassing.

Just like the Tenshin Shōden Katori Shintō-ryū, with its weapons, techniques, strategies, philosophies and teaching methods — in essence, its way — passed down from generation to generation unchanged through time, so the modern company also has its own way.

This will encompass its products, patents and proprietary ways of design and manufacture (think Apple), the business processes it follows, its enabling technologies (think Amazon), the methods it uses to recruit staff and familiarise them with the company, how it inculcates the culture into new recruits through scorecard setting, and performance appraisals and rewards (think Goldman Sachs). It will also extend to the corporate stories told, perhaps about the original founders (think Bill Gates and Paul Allen at Microsoft), or in written statements (think Johnson & Johnson's customer credo), or reinvention over the course of generational technological change (think IBM). The people within each of these organisations may never acknowledge the existence of a way, but regardless, that's exactly what they're working within, and contributing to, each day they go to work. It's the collection and organisation of all the elements within the company that constitutes a way, and it's what makes a company like Apple the remarkable success it is.

All these elements form the way that the company works. They are the reason that new recruits (regardless of their level in the hierarchy) take a while to settle in and get their footing: because they're learning how everything works, who and what's important, who are the most profitable or influential customers, what the key processes and systems are, what's celebrated and sanctioned, what's tightly or loosely believed, and the cadence of meetings, processes and decision making. It's also why not all new starters fit in, regardless of the rigour of the process that recruited them, the depth of psychological testing they endured, or the number of interviews they sat through, smiled, and repeated their schtick in.

These elements define how the company works and its essence, or way of being. They have typically built up over a long time for long-established companies, or reflect the strongly held sacred beliefs of the founders of younger companies. In both cases, the power of longevity and traditionally held beliefs, or the power of the founder's personality and biases, make these elements deeply ingrained, and materially powerful in driving how people think and respond to various stimuli. Above all, the accrued power of time or connection to the current senior boss makes them very hard to change.

Adaptation or extinction

Wars are no longer fought with swords, halberds and staffs. The world has moved on, and the armed forces of all countries are now equipped with the most modern weapons available. The bladed weapons of medieval Japan have been replaced by guns and tanks and aircraft.

The Tenshin Shōden Katori Shintō-ryū has therefore itself evolved from the cutting edge (pun intended) of military science, martial thought and physical sword technique, to become, in the face of changing circumstances 575 years later, an intangible cultural asset. The very traits that made it relevant and effective in the 15th century now consign it to be like a living museum. Its strategies, philosophies and techniques are no less valuable. It's just that now, instead of being valued for their efficacy in self-defence when confronted by someone with a three-foot razor blade, they're valued for their fierce beauty, discipline and cultural connection to historical Japan.

Companies too need to confront the harsh reality that their own way of doing things, while relevant today, will inevitably be pressured by changing circumstances, new competitors and more innovative methods. Without focus, attention and maintenance (or even reinvention), the existing way of doing things will eventually become tired, irrelevant or, worst of all, it will become a Harvard Business Review case study that warns prospective executives of what not to do. The equivalent of a ‘corporate’ museum piece.

This can be hard to take, especially by those who founded the company, or designed and implemented the ways of doing things that may now be under threat. Challenging the business practices that someone has implemented can be like telling them that their baby is ugly. It creates a visceral defensive response. Such a response makes it even more likely that the company won't change and address the very forces that are threatening it.

Every human organisation has an established way of doing things: every sports team, private company, publicly listed corporation, high-tech startup, government agency, martial art and religious organisation. There's not a single organisation of like-minded human beings organised to achieve a collective goal that doesn't establish and develop its own way of doing things. It permeates all of human endeavours and fundamentally defines how we, as people, get stuff done.

And that represents the threat and the opportunity. The established way of doing things in your organisation, and whether it's capable of itself changing in the face of changing circumstances, will be the most important element in whether the organisation continues to successfully navigate a changing world.

As Charles Darwin is reputed to have stated, ‘It's not the strongest of the species that survives, nor the most intelligent, it's the one most adaptable to change.’

Key points from chapter 1

All organisations develop a way of being, and all people in these organisations develop a way of performing their roles. Both of these forces are very strong and naturally resist change.

When disruptive forces emerge in an organisation's environment and then collide with the existing, deeply held ways of being that characterise the company and the people within it, things become interesting. This collision is real and it plays out in how the company and its leaders perceive the threats and opportunities created by the disruption (mindset) and how its people then respond to this disruption via the tactics and techniques they pursue (mechanics).

Just as there are many different martial arts, and many different corporate ‘ways’, there are also undoubtedly many different ‘ways’ of leading and managing transformation.

The various consulting firms have all invested significantly in the creation of different methodologies, approaches and philosophies based on their experiences, all designed to ensure the success of their transformation offerings to clients. Many large companies have drawn on these firms and their alumni to develop their own ‘in-house’ methods for transformation and change.

When the new way of transformation collides with the existing way the company is being run and operated, things truly get fascinating. It's then that you have existing mindsets challenged, wars of ideas and influence and new ways of doing things introduced that throw all of the traditional mechanics up in the air, to fall back down in hopefully more effective and efficient patterns.

Let's face facts: 575 years from now, no-one will be hanging out in a small hall on the quiet green outskirts of a major city practising the strategies, philosophies and techniques we use each day in our companies. Insensitive to a changing world, unchanged and static, our companies will go broke and simply cease to exist. Unlike the Tenshin Shōden Katori Shintō-ryū, I guarantee that none of them will become intangible cultural treasures.

CHAPTER 2Understanding transformation

Before proceeding too far into a book on transformation we'd best be on the same page with regards its definition, what is typically driving it, and why it’s hard.

If you're a leader, or you aspire to be one, then you must care about transformation.

You should understand the elements of transformation and what’s involved because there’s not a single industry that’s not undergoing significant change. Strong forces such as technology and innovation, industry forces, societal forces and even internally generated forces unique to each company, are continually placing pressure on the business models of many organisations. There's no sign of this abating, so we've not reached peak change in society or business yet, and it's inevitable that you'll be faced with transformation.

If you're seeking to embrace transformation, you should also acknowledge that transformation is difficult. Leaders have long grappled with transformation in different societal, military and business contexts. Leading transformation has not become inherently easier.

Acknowledging that transformation is difficult, it's important to understand why it's difficult. Transformation is difficult because the status quo never has to argue its own case. There are many deeply ingrained and hard-wired ways of being within every organisation that actively resists change, and many organisations are also filled with executive personalities who actively resist change.

A successful transformation program must be designed and executed to directly acknowledge and address the inherent difficulties associated with change, and ready for the resistant personalities that it will inevitably uncover. If you don't know what creates these difficulties, then it's hard to design a transformation program that addresses and overcomes them.

So what exactly is transformation?

The Merriam Webster dictionary definition of transformation is ‘Transformation (noun) — a complete or major change in someone's or something's appearance, form, etc.’

If we're going to be focused on transformation throughout this book, it's a good idea that we all get on the same page and work with the same understanding of the term. Putting aside the dictionary definition, transformation in a business or corporate sense can best be described as:

understanding and making sense of what's happening and changing in the world (i.e.

disruption

)

developing a planned and purposeful response to this change (i.e. a

strategy

)

taking action to make changes to the various components of the business to address the identified disruptions (i.e.

execution

).

The net result of this three-step process is transformation, whereby the new or current organisation is significantly and measurably different from its previous form. Its financial health and trajectory, as evidenced by its balance sheet, profit and loss and free cash flows, must also be objectively better. It's no use claiming success in a transformation initiative that has delighted customers, simplified the organisation and energised the employees, but has left the company financially weak or depleted. Or in other words, claim that the operation was a success but unfortunately the patient died!

Transformation is then, by definition, significant or material. As stated in the introduction, transformation is not re-engineering the accounts payable department.

Equally, transformation is not something that should be measured in weeks or months. A transformation program measured in weeks or months is most likely lacking in ambition and scale, even if undertaken in a small organisation. True transformation takes time, but it shouldn't take too long. The longer a transformation program goes without delivering its objectives or measurable benefits, the less support and resources it will attract as it proceeds.

Transformation in the context of this book covers:

whole of business (of any size)

whole of operating division or business unit (i.e. a product line business; or sales, manufacturing etc.)

whole of business function (i.e. finance, human resources, technology, and the like).

An easy rule of thumb should be that the organisation unit that's subject to the transformation should be at least several hundred people and can then obviously range up to thousands or tens of thousands of people for large organisations.

With more people involved comes new challenges. An exponential increase in the number of personal relationships and interactions increases complexity and complication. There are more opinions, contexts, excuses, aspirations and ambitions, all of which must be considered.

This doesn't mean you have to tailor a plan to address every individual's needs and concerns. It just means that you'll have to take the time to understand the typical views and ambitions — for or against the transformation — and develop plans to get large groups of people behind the transformation and its goals. And strangely, it seems that in modern organisations, if you put 10 people in a room, you typically get 11 opinions.

We've not yet reached peak change and disruption

We live in an incredible time of disruption, change and opportunity. Jack Welch, the former, and now increasingly somewhat controversial, CEO of General Electric, observed that ‘If the rate of change on the outside exceeds the rate of change on the inside, then the end is near.’ The management of change and transformation has been a clear feature of the last decade, and every year business and social commentators seem to claim that everything is moving and changing so fast. We are yet to see the news headline, ‘Change finally slowing down’.

Well, we've not reached peak change yet, and the combined effect of pressure from several different trends and forces means that this disruption is likely to keep accelerating. In his book Principles for dealing with the changing world order, Ray Dalio, the legendary founder and co-chief investment officer for Bridgewater Associates, states that ‘it seems obvious that the rate of invention and improvement in most areas will accelerate at an even faster pace, rapidly raising productivity and living standards’.

The biggest impact of these accelerating and colliding forces is that they put your organisation's existing business model, and the corporate ‘way’ by which you already do things, under constant pressure. This means that the period over which your business model and its established way of doing things continues to be appropriately calibrated to the external environment is becoming shorter. Which means you have to work harder just to keep up, let alone get ahead.

Quite simply, being open to transformation, being alert to disruption, developing appropriate strategic responses and then implementing these responses is becoming more and more important. In some respects, the cultivation of appropriate transformation skills and approaches is becoming ever more necessary and will eventually represent a business-as-usual skillset for all people leading companies, and certainly many of the rest of the wider employee group.

The large-scale shifts likely to impact your organisation include geo-political forces such as the rising ambitions of China, impacts from the Russian invasion of Ukraine, industry forces unique to your company, growing regulation and societal trends such as consumer activism, skills shortages due to COVID-19, and economic factors such as high inflation and volatile interest rates.

This chapter is not intended as a deep summary of each shift your business is likely to face, but there are three shifts worth considering for the potential impact they may have on you and your company:

the climate crisis

population growth

technology and innovation.

Climate crisis

The Earth is warming and the human-induced concentration of greenhouse gases in our atmosphere is increasing, and these two things are related.

In his book How to avoid a climate disaster, Bill Gates describes this process as greenhouse gases trapping heat, raising the Earth's surface temperature. He explains that

the more gases there are, the more the temperature rises. And once greenhouse gases are in the atmosphere, they stay there for a very long time; something like one-fifth of the carbon dioxide emitted today will still be there in 10 000 years.

In the book, Gates references five questions, all of which will affect customers, businesses and suppliers involved in providing goods and services. These questions are significant and the answers we develop to address them over time will fundamentally impact how we live our lives as individuals, how our communities work, and the absolute and relative wealth our countries can create and retain. Gates’ macro questions address:

how we plug in

 — or, in other words, the generation and distribution of electricity from renewable sources such as solar, hydro and tidal, and the share that remains based on traditional fossil fuels

how we make things

 — including the design, manufacture and assembly of capital assets such as infrastructure, buildings and roads, through to consumer items that we use in our everyday lives

how we grow things

 — recognising that the manner in which we grow a range of grains, fruit and vegetable crops, together with raising livestock such as cattle, chickens, pigs and sheep for human consumption

how we get around

 — meaning the transport modes we use each day, such as cars, trains, ships and aircraft, the materials that make up these products, together with the manner in which they are manufactured

how we keep cool and stay warm

 — covering the quantum and type of fuel sources required to heat and cool our homes and places of work.