1
Stuck in āA Stateā
When one door closes, another opens; but we often look so long and so regretfully upon the closed door that we do not see the one which has opened for us.
āALEXANDER GRAHAM BELL
A manufacturing company experienced too many injuries because plant employees didnāt follow posted safety protocols. As in any A State organization, managementās solution was to send those employees to a safety-procedure training program. That is the definition of an A State, after all: using past and current mind-sets and behaviors to try to make changes or improvements. But after putting in the time and effort to schedule the program, management discovered their plant employees had already completed the exact same program seven times. Theyād even earned certificates of completion.
Naturally,everyone was frustrated about the waste of time and resourcesāand obviously, another round of training would not solve the problem.
Does this circular trap sound familiar? How many times do we send people to training programs that do not produce any meaningful behavior changes or performance improvement? We think weāre doing something, when, in fact, weāre simply moving from being stuck in an A State to being stuck in an āA+ State,ā wherein we make one or more incremental improvements toward our goals but nothing really changes. Weāre still bogged downājust at a slightly higher, more educated level. We still havenāt addressed the real challenges blocking our success.
Figure 1: A to A+ Continuous Improvement
Thatās where transforming to a B State culture comes in. B Stateāshort for ābreakthroughā changeāencompasses a new mind-set and habits of behavior that rapidly produce and sustain a transformational future. B State is a paradigm shift in thinking and behavior that produces a dynamic forward launch.
Figure 2: A State to B State Transformation
A Different Perspective
Culture is how decisions are made, challenges are faced, and problems are handled.
When visiting any organization, the culture can be felt.
āSue Bingham, author of
Creating the High Performance Work Place
Tom, the CIO of āMilstun Corporation,ā a large multinational manufacturing company based in Germany, had been given three and a half years to reduce costs and duplication of effort, streamline processes, and improve internal customer satisfaction by centralizing his two thousandāperson information systems (IS) department.
Tom knew his leadership team had to assess all the systems that needed changing, develop a model to centralize the organization, and create a strategic plan to get the job done, so he brought in the most recognized, best-in-the-world consulting firms to help. For two years, the leadership team attended team-building programs, leadership-development workshops, change-management presentations, process-improvement seminars, and project-management training. After developing new skills for two years, all the leaders considered themselves a ābetter team.ā
But nothing actually changed. No real movement toward centralization could occur because the team members reneged on the commitments they made (in whatever the latest āoutsideā program theyād attended) just as soon as they got back to their respective divisions in Asia, the United States, and Europe.
All that training merely moved them from being stuck in A State to being stuck in an A+ State. After two years, they still equated ācentralizingā with āgiving up control,ā and no one was willing to do thatāyet. But Tom knew that if they didnāt centralize by the boardās deadline, his entire department would be outsourced, which meant a lot of his people would lose their jobs. As outrageous as that sounds, heād seen it happen before.
By the time he called me in, Tom felt like a failureāan exasperated, angry failure.
āIt may be too late for your help,ā he admitted when we first met. āIāve already wasted two years on too many failed change efforts. Now we only have a year and a half to completely restructure, change our technical processes across the entire organization, and create a new culture. I donāt think we have enough time left. I blew it.ā
āNo, you didnāt,ā I assured him. āWe can produce a centralized organization, complete with culture change, in eighteen months or less. We just have to create a clear āPicture of Success,ā focus on middle management instead of your senior team, and develop new āTeam Habits of Collective Execution.āā
āWait a minute,ā Tom protested. āEvery other consultant has said we have to change our senior management team first, not our middle managers.ā
āIām sure they did,ā I responded. āAnd theyāve taken up two years of your time trying to do that. Weāve discovered that middle managers are the true change agentsāif they operate as a unified team.ā
āReally? Okay, I guess that makes sense. And I have wasted so much time trying to change the senior managers without any progress. So itās great that we can put the focus on middle management to make this change.ā
āOh, there is one more thing.ā I said. āYouāll have to tell your people we only have a year to get it doneānot a year and a half.ā
āWhat! I canāt do that! Thereās no way we can make such a massive change in a year! Itās physically impossible!ā
āThen I wonāt do the project.ā
āAre you kidding me? Why not?ā
I smiled. āBecause people need a sense of urgency, or theyāll put off any kind of change to the last possible momentāespecially if that change is uncomfortable, disruptive, and increases their workload. Thatās just human nature. So we need your teamās ālast possible momentā to be right now! Plus, thereās a built-in sense of uncertainty in this kind of thing, especially since no one knows how to do this and everything else theyāve tried so far has failed. We need that sense of urgency to overcome all that.
āBesides,ā I added, āif we get off schedule, weāll still have six more months to make it work.ā
Tomās shoulders dropped. āOkay, okay, that makes sense. Not to mention youāre my last resort. Iāll tell you whatāif youāll commit to not try to change my senior management team and just focus on my middle managers, then Iāll commit to telling my people this needs to be accomplished in a year. I just donāt want the lack of change in my senior management team to become the excuse for you like it was for other consultants.ā
āAgreed.ā
āFine,ā he said. āWrite up the proposal. Weāve got a deal.ā
My proposal was completely different from anything else Tom had ever experienced. It didnāt include developing shared values, solving breakdowns, or implementing a traditional change-management process. Tom admitted he really didnāt understand our approach, but when I started to explain, he cut me off.
āForget it. I canāt afford to keep using the same traditional approaches that havenāt worked for two years,ā he said, clearly exasperated. āIāll take a risk on you and . . . whatever your āB Stateā is.ā
We began our weeklong assessment by talking with various middle and a few senior managers. āI know you donāt want senior management to be part of this,ā I told Tom when he protested, ābut we need to include them to identify breakdowns and ensure appropriate linkage with middle managers. We need to find out if people really understand what it means to be centralized.ā
As it turned out, most of them didnāt. Only Tom and Frank, the brilliant but hot-blooded subject-matter expert (SME) who had created the model theyād been trying to implement for two years, had any sense of what a centralized organization looked like.
After completing all the other interviews, we visited Frank to make sure we understood his vision and model. It seemed pretty simple to us, but we werenāt technical experts in their industryāmaybe we were oversimplifying his concepts. But as we explained our understanding to him, he jumped up excitedly.
āYes! Thatās it! Finally! Someone gets this! Iām so frustrated and angry with all the other managers. How can they not understand it? Why do they keep trying to make it so much more complicated?ā
Itās human nature to make change more complicated than it needs to be, especially when we donāt really want to change, even if we know we have to. Thatās why people donāt go to doctors, leave bad positions or relationships, or move forward in their lives. They donāt want to leave their comfort zone.
We gathered about sixty senior and middle managers from three continents to a single meeting in Munich.We didnāt talk to them about centralizing the organization, or about creating a new leadership model, or about any of the other topics they expected. Instead, we introduced the B State concept and transformation process, and we talked about creating a clear Picture of Success for the fully operational and effective centralized IS department:
That picture will include not only your final result, but also new behaviors about cross-functional coordination, teamwork, and problem-solving that need to become new habits. Your role as leaders will naturally expand during the course of this process. Itās unavoidable. Youāre going to move from only controlling your own area to sharing leadership and ownership so you all mutually get to where you need to go.
While some of the managers were excited to hear about our different approach, most were admittedly skepticalābut they were all willing to participate because Tom and I presented the change as nonnegotiable.
āThere really is no choice here,ā I told them. āIf you donāt centralize, your department will be outsourced. Itās that simple.ā
When those sixty people left the working session after going through our B State transformation process, they not only understood Frankās model, but had aligned their expectations with it, formed task forces to implement the āTeam Habits of Collective Executionā necessary to create a B State culture, chosen the eight projects that would take priority during the change, and accepted a shared-ownership project-management processāif one of the eight project teams failed, they all failed. Plus, they created their own follow-up system to support and hold each other, and the group, accountable.
They did all that in only three days.
The major centralization shift was completed in nine monthsāthree months sooner than the āurgent deadlineā we gave them and nine months sooner than their real deadline. They completed the full transformation by month twelveāsix months ahead of the CIOās schedule.
Although we never addressed performance improvement, several side benefits of transitioning to the B State surfaced. The top-prioritized technical projects came in 100 percent on time/on budget for the first time. Overall project performance rose from 25 percent on time/on budget to 75 percent. Key performance indicators (KPIs) went up 50 percent. Operating expenses decreased and internal customer satisfaction increased, producing breakthrough results.
Best of all, fifteen relationship factorsāincluding trust, support, and conflict resolutionāimproved 35 percent throughout the entire management team.
For me, the icing on the cake came when one of the companyās primary vendors stood up at the meeting where all these statistics were revealed and said, āYou know what? Before we started this change effort, we considered you our worst customer. Now youāre our bestāthanks to the problem-solving and decision-making improvements in our partnership.ā
After the meeting broke up, Tom told me, āOur results have been so dramatic, Mark, theyāve blown everyone away. I mean, most of our managers were so skeptical when you first walked in the door, but now they understand the real meaning behind B State Collective Execution and how you can really take us to another level! They want to expand it to other areas of our department, but I was wondering about something elseāespecially in light of what our vendor just said.ā
āOkay. What do you need?ā
āWe operate in an us-versus-them customer-supplier environment with most of our vendors. Can you help us improve our partnerships with them?ā
āSure! But weād have to work with them first, by themselves, to improve their own execution. In other words, weād have to change their mind-set and habits of execution to prepare them to be better partners.ā
āLetās do it!ā Tom said. āAnd weāll pay for it.ā
Iād believed in the B State before, but this success was so enormous it made me realize B State transformations not only worked faster than I thought they would, but could cross every kind of barrier, be it language, distance, individual resistance, time zones, or even culture.
It was a life-changing moment for me.
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My B State Discovery Journey
The same thinking that has led you to where you are is not going to lead you to where you want to go.
āALBERT EINSTEIN
As a typical team-building facilitator back in 1983, I had just completed a program w...