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Compilation of slides
May 2018
Pactify is a methodology that is grounded in the principles
of “positive psychology”
-2-
© 2017 Pactify Software. All rights reserved.
In collaboration with Prof. Mihaly Csikszentmihalyi
Founder of the “positive psychology” domain
= the science of engaged high performance of people
(“Flow” – individual autonomous high performance &
“Group Flow” – cooperative high performance)
The crucial (yet often neglected) link between
organisational logic and actual results
-3-
© 2017 Pactify Software. All rights reserved.
The “Organisational logic”
• The mission, vision, strategy
• The departments, roles, rules,
processes, systems, KPIs, …
The behaviour
(what people
do & how they
do it)
The actual results
(sales, profits, returns, …)
1 2 3
When you want more cooperation,
you MUST counter these 4 classical “tendencies”
-4-
© 2017 Pactify Software. All rights reserved.
• Too much governance at the top: making people “escalate” problems too quickly
• Too little “lateral” interaction, too little cross-functional problem solving
• No direct transparency from within structures, on goals/ progress/ individual contributions
– Different reporting at each layer, each time with less insight in the real progress
• Repeating the same old orders in the same old way, over and over again
– Getting less and less creativity, thinking, engagement and output in return …
1
2
3
Report #1
Report #2
Report #3
1
2
3
4
4
Our 4 steps to enable
“autonomy driven performance improvement”, IN the action
-5-
© 2017 Pactify Software. All rights reserved.
Give shared accountability to solve
the problem to a specific team,
i.e. to those that are:
• Directly impacted by the solution
• Required to cooperate to find&
implement that solution
(don’t give sole accountability to 1
appointed project manager, who’s not
even directly involved in the solution
afterwards))
Define
“a relevant business problem to
solve”
(instead of giving
“a solution already defined by you for
them”)
Set-up a dedicated process to
• Build focus on the problem in the team
- Recurring meetings w same team
• Define& give specific degree of
autonomy on the solution
- And allow people to accept it!
Learn people to be transparent on how
they (i) tackle the problem & (ii) use
their autonomy (“Transparency 2.0”)
• Real-time status and progress
• Insight in the real action/ contributions
• Directly from everyone’s pen
1 2
3 4
A common reason why projects fail …
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© 2017 Pactify Software. All rights reserved.
We give only sole
accountability
to 1 appointed project
manager …
… who is not directly
involved in the solution
afterwards
• Gets a
disproportionately
high challenge for
only 1 person
• May push for solution
that gets “decided”
(by the top), rather
than a solution that is
“aligned” with those
who will have to
execute and adopt it
Implications for …
… the project mgr … the rest of the team
• Know “who to blame
when we fail”
• May “care less”
• May see the project
manager as “not one
of us”
Personally not a fan of the “high performer” culture
(Trying to breed only a couple of “superstars” & then put all your hope on
them … won’t cut it in today’s complex environment)
REAL HIGH (COLLECTIVE) PERFORMANCE
only comes when you SHARE:
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© 2017 Pactify Software. All rights reserved.
… share goals
… share action
… share transparency
… share accountability
…
…
…
...
so you can aim for more
so you can help each other get better
so you get more feedback on how you progress
& can make individual contributions transparent
(so you all have a real reason to cooperate!)
so you cannot blame only 1 when you fail &
you energise the entire team for success
Back-up: “Transparency 2.0” is continuously trained “in the action” via an
embedded software platform to manage the transformation (I/II)
-8-
© 2017 Pactify Software. All rights reserved.
SCREENSHOTS
-9-
© 2017 Pactify Software. All rights reserved.
SCREENSHOTS
Back-up: “Transparency 2.0” is continuously trained “in the action” via an
embedded software platform to support the transformation (II/II)
The 2 “shells” of managing people and work
-10-
© 2017 Pactify Software. All rights reserved.
Rules
Systems
Communication
The people/ teams &
their real goals & actions
Roles
StructuresReporting
KPIs
Governance
(who can decide what?)
The framework
= the toolkit we deploy,
with which we believe that
“work will get done”
The REAL ACTION
= what people really do
and how, in order to
“get work done”
How people actually, in reality …
•Get into action … or wait to be told
•Help others … or avoid to do so
•Fight to get idea’s approved … or
complain that they won’t
•…
1
Basically: how people
behave to make work
“Flow” … or not
2
1
2
The problem today:
1. Managers spend too
much time on
• Changing, re-enforcing,
communicating on it …
2. Often without direct
positive effect on
3. It’s and only that
really impacts productivity
and engagement, not !
2
1
1
2
2
Vision, mission, strategy
Org
chart
The 2 “shells” of managing people& work: which side are you on?
-11-
© 2017 Pactify Software. All rights reserved.
= the toolkit we deploy,
with which we believe
that “work will get done”
= what people really do
and how, in order to
“get work done”
Disengaged
Slow
No goal focus
“Working Apart
Together”
Heavy
reporting
Layered
and siloed
org
chart
Complicated
systems, procedures,
orders, …
Plenty of
(strict) rules
Plenty of
KPIs
Detailed
governance
(who decides
what?)
The
framework
The
REAL action
Engaged
Agile, resilient
• “Flow”
Clear goal focus
Cooperation
• “Group Flow”
Autonomy
So collective
focus is more on
goals& making
progress ...
… than on
all the roles
& rules to get
the work
done
1
2
Bottom-up
transparency
On how
progress is
made by
whom …
… to allow
specific help to
continuously
get better
… eventually reaching
more “Flow” and
“Group Flow”
Top down
strategy
The beauty of cooperation.
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© 2017 Pactify Software. All rights reserved.
The daily habit to focus on making the whole bigger than
the sum of what the parts “logically” should deliver (e.g.
departments)
• By helping the others get better (across departments)
• By making tough choices together (often against agenda of 1 department)
• By going BEYOND (!) only “informing” each other (=“Working Apart Together”)
• Making cooperation THE most effective way to “build skills” at the same time!
- Because you create more interaction, thinking, action, challenges, stronger goal
focus, … AND you train/ do/ learn this as a “daily” habit
Cooperation =
The 4 shades of “autonomy in action” … only 1 shade is optimal
… and is a true competitive advantage for an organisation
-13-
© 2017 Pactify Software. All rights reserved.
How is the autonomy “given” to the team ?
Pushed down, not
accepted in the team
Not only given, but also
accepted in the team
They get into
action with it
(typically: tackle a
problem that
leadership wants
them to solve)
What does
the team do
with the
autonomy ? They avoid getting
into action with it
(passive/ reactive)
1
2
Team not ready/ willing/
able to handle autonomy
Need time/ coaching/
easier problems … or else
autonomy will be taken
back
Laziness in the team
Need to ask more
transparency and/ or give
more challenging
problems
SHARP TEAM !
(helping each other get
even sharper)
They solve problems the
organisation was unable
to solve prior to giving
the autonomy
Frustration in the team
Need to provide more
coaching (of their action)
and/ or lower the
challenge of the problem
you give them
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© 2017 Pactify Software. All rights reserved.
Actual
company
performance/
results
Introducing a simple behavioural model
Behaviour
(the real action: what
people do and how)
People’s
motivation
All things that
impact motivation
+ ability/ competence
+ triggers for action
Feelings/ mood
(engagement/ happiness vs
disengagement)
All things that impact
abilities and triggers
+ +
• Milestones
reached
– Turnaround
– ERP implemented
– …
• Productivity in
reaching those
milestones
• Financial results
– Growth/ profits
• Behaviour
– Passive/ active
– Goal focused
– Cooperation vs.
“working in the
silo”
• Extrinsic
– Carrot
– Stick
• Intrinsic
– Purpose
– Autonomy
– Mastery
•Strategy/ vision
•How work is
organised
– Structures, roles,
rules, processes,
KPIs, policies, …
•Management style
•For all 3: top down vs.
bottom up?
(determines motivation
type!)
•…
Cooperation = the engine that creates more
time/ energy/ intelligence at not extra cost
-15-
© 2017 Pactify Software. All rights reserved.
The mechanics
Cooperation
• Give people autonomy
• Ask them to use it to
solve a specific
problem for the
organisation
• Ask them to tell you
what they do with the
autonomy
(transparency)
• The right configuration: team composition in
function of the problem to solve
• A fixed process to develop focus on the problem
• Freely taken up ownership on parts of the problem
• People helping others get better
• Teams making decisions as 1
The fuel
• Engagement through people experiencing that their
autonomy produces progress
– Through self-decided ownership (in autonomy)
– Through own transparency on progress
The ignition
If your problem is: “I don’t have time”
Then start to cooperate more !
… because:
Cooperation creates time (& energy)
within the same 8 hours
we have in a day !
PS: You don’t really have another option, as refusing to cooperate is
going to make your problem even bigger
-16-
© 2017 Pactify Software. All rights reserved.
Cooperation is not a term that “just sounds nice”
It’s a modus operandi of a team
where their goals, plans, actions, interactions, decisions, …
are continuously optimised
to yield maximum collective output
from a fixed amount of resources
(people/ time/ intelligence)
Crucial condition: sufficient freedom (autonomy) for all team members (!)
• As they need it to (continuously) find their optimum contribution to cooperation.
Due to this condition: Output in cooperation >> Output in top down structures
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© 2017 Pactify Software. All rights reserved.
Saying “our people have autonomy” is 1 thing …
Adopting, as a manager, the continuous habit to …
• … state explicitly what kind of autonomy you transfer on what
– “What freedom in which specific tasks/ goals / projects/ problems?”
• … give time and support so people can handle the autonomy
• … keep listening, and coaching them forward
• … signal that you trust they will be able to pull it off
• … prevent yourself from giving answers/ solutions yourself all the time
… is one hell of another thing!
BUT …
… pulling through long enough until you see& reap the results of it,
is one of the most powerful things in organisations !
-18-
© 2017 Pactify Software. All rights reserved.
#1 priority in any CEO agenda:
How to continuously train(1) the organisation …
… to make sure that when I give autonomy …
…that people USE that freedom to do something
spectacularly cool and performant with it.
(1) Training through doing what we do (meaning: from within the actual work), not through
one-off training sessions, that are often dis-connected from reality
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© 2017 Pactify Software. All rights reserved.
You can basically do 2 things with autonomy
(when your manager gives it):
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© 2017 Pactify Software. All rights reserved.
Use it …
… to perform like you
never performed before
(much stronger than when
you were controlled)
Abuse it …
… to hide, slow down,
find excuses, …
OR
To get this and not the abuse, you need:
• An important business problem to solve
- To create focus on what to use your autonomy for
- A problem that, when solved, makes the team& the organisation better of
• A process of repeated interactions (to take time, build focus& trust, …)
• Transparency from everyone on how they use the autonomy
- On goals and how you make progress
- So everyone can ask for/ get help to improve
The 2 very different types of top-down
managers, and why both don’t work
“The control freak”
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© 2017 Pactify Software. All rights reserved.
“The over-inspirer”
Top down
characteristics
The real
reason why
this doesn’t
work
• Sets goals himself
• Prescribes how to reach them
• Controls how progress is made
• Rewards/ punishes on results
• Sets his own inspirational goals
• Sees “execution” as a detail
• Disappointed/ surprised when
execution fails/ lags behind target
• When ordered too much, people
“decide” not to give their full
100%, so you’ll get less (and
eventually less& less)
• Focus too much on blame if
people fail rather than to help
them get better& succeed
• Inspiring idea’s often not matched to
the actual execution skill of the
organisation
• No attention/ knowhow on how to
growing that execution skill
• Without enough autonomy over
idea’s themselves, people “decide”
not to give their full 100%
1 2
A key question for any leader:
-22-
© 2017 Pactify Software. All rights reserved.
Have a great vision, be able to
communicate it very convincingly, …
Avoid too much top down, make sure
people get& accept autonomy, and
use it to grow their performance “in
cooperation”
“How do I go from
inspiring the minds” …
…. towards also:
inspiring the action?”
(Unfortunately NOT a
logical consequence any
more these days !)
MUCH MORE effective than
a 3% annual pay raise …
... is:
a 3% annual autonomy raise !
-23-
© 2017 Pactify Software. All rights reserved.
An opportunity for all of us:
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© 2017 Pactify Software. All rights reserved.
How can we structure, systemise,
“procedure-alise”, report, incentivise, …
everything people do ?
What do we need to do differently so
people show their full 100%, instead of
their 80-85%, which we seem to be
getting all the time ?
Instead of acting too
much as
“methodology freaks”
… we should all become
a bit more
“behaviour freaks”
-25-
© 2017 Pactify Software. All rights reserved.
The biggest
enemy of
A GOOD IDEA
The big pile of all other
small& big things to do, that’s
sitting on top of that good
idea
Being owned by “a believer” who
autonomously decides to defend/
enrich/ battle-test/ align … it into a
“decided initiative” with a
dedicated team
The biggest
blessing for
A GOOD IDEA
-26-© 2017 Pactify Software. All rights reserved.
The art of using KPI’s to manage your business
Ideally in a continuous process where you:
• Start from base question: “What are all
possible ways to improve KPI?”
• Give the question to specific teams
• Give the teams autonomy/ time/ help to:
– develop their answers
– align/ implement& steer their answers
Taking note
of the KPI
value
Spend 5%
of the time on:
Debating the
measurement
method
Spend 0%
of the time on:
Making sure the measured value
improves
Spend 95%
of the time on:
The
reality
often:
40%
of the time
40%
of the time
10%
of the time
Typically: getting to a list of actions in a
rush at end of a meeting, mostly top down
and only the superficial, obvious actions.
-27-© 2017 Pactify Software. All rights reserved.
Some definitions and 2 questions …
“Doing tomorrow what
you did yesterday”
“Business as usual”
activities
“Change”
activities
“Transformation”
activities
Definition
Question 1: in which of the 3 do we give most autonomy TODAY ?
Question 2: in which of the 3 do we need to give MORE autonomy to drive impact from it?
“Improving what you
did yesterday”
“Doing fundamentally
new things”
• Sell products
• Purchase raw materials
• Process invoices
• Do R&D to launch new
products
• …
• Do a lean program
• Implement a new ERP
• …
• Develop multi-channel
from an offline sales base
• Diversify into new
businesses
• …
Examples
-28-© 2017 Pactify Software. All rights reserved.
We should focus less
on creating:
strategy reports”
governance slides”
organisation charts”
KPI dashboards”
ERP systems”
meeting minutes”
…”
“Great looking
and focus much more
on creating:
“Great looking ACTION”
• Goal focused
• Self-driven
• In “Flow”
• Cooperative
- through layers and across silo’s
The type of action you’d almost
want to see the replay of!
-29-© 2017 Pactify Software. All rights reserved.
“GLA”:
“Great looking ACTION”
• Goal focused
• Self-driven
• In “Flow”
• Cooperative
- through layers and across silo’s
The type of action you’d almost
want to see the replay of!
KPI’s of only
second order (or higher)
importance:
ROCE
KPI of
first order
Importance:
-30-© 2017 Pactify Software. All rights reserved.
It’s important to have KPI’s and to measure them!
(No discussion and no doubt)
BUT: the things that really drive KPI improvement …
are “KBI’s” (Key Behaviour Indicators)
Examples of “Key Behaviour Indicators” (Non-exhaustive!):
-31-© 2017 Pactify Software. All rights reserved.
Autonomy
= Probably the most misinterpreted term in business today
(Managers fear that it will make people do whatever they like …)
The trick to make it “work” is to:
• Frame it within a specific piece of work
- e.g. a specific degree of freedom in a project or a problem to solve
• Ask transparency in return for it
And when it works …
… you’ll see performance you have never seen before
… coming from the same people!
-32-© 2017 Pactify Software. All rights reserved.
When you give people more freedom (autonomy)
to do what they do …
… and when you give it in “the right way”(1) …
…you WILL get higher performance in return.
(higher compared to before)
(1) In a way that it is (constructively) used to find “Flow” (individually or in cooperation)
It’s intuitive to do so in “business-as-usual” work …
But much less intuitive in “change/ transformation” work,
and yet it’s THERE that we need the higher performance
these days !!
Success in strategy execution
depends on:
-33-
© 2017 Pactify Software. All rights reserved.
What we tend to focus on
during strategy execution
5%
95%
“Having a good&
clear strategy”
“The actual
change in behaviour”
(through trying, learning, freedom
to test& fail, transparency, feedback,
action focus, cooperation, …) 5%
95%
Houston ??
We “just simply” put in
place “the right”
people, governance,
structures, reporting,
… and things will get
done … (right ?)
We analyse, justify,
align, communicate, …
over& over again
How to really drive KPIs upwards ?
-34-
© 2017 Pactify Software. All rights reserved.
NOT by focussing on:
The KPI dashboard itself
• The KPI data, trendlines,
forecasts, scenario’s, …
Trying to find some short
term actions to improve the
KPI
• Typically with a short term
focus: from week to week
Do this: (to really impact your KPI)
Before focussing on KPI, go back 3
steps:
1. To the root problems that causes the
KPI to perform badly
2. Then solve those problems in
cooperation
3. Then execute that solution (the fix)
Then and only then, looking at your
KPI dashboard
• And go back to 1. in case of issues
-35-
© 2017 Pactify Software. All rights reserved.
We should all go less to (external) trainings/
seminars/ …
… and learn ourselves more to solve
problems “IN THE ACTION”, meaning:
1.Where they arise
2.When they arise
3.With those that cause them
4.In cooperation
5.Persisting long enough …
(at least to avoid ordering the next external training again … ;-) )
The “new deal” between sponsors and i3 teams for “the last
reorganisation you’ll ever need”
-36-© 2017 Pactify Software. All rights reserved.
What we give you
(i.e. from “sponsors” to “i3 teams”)
What we expect from you
(i.e. from “i3 teams” to “sponsors”)
The time and autonomy (freedom) to
1. … identify/ solve a question that is relevant for you
2. … gradually build a solution for it in cooperation
3. … implement that solution
(1-2-3 described in a “the mandate”)
1
2 A continuous learning curve “in the action”, with
support
• Not 1 question, only once, no a continuous process
• Questions always slightly more difficult than current
capabilities in the group (Flow condition)
• Moderation support to coach you in the action to
close the difficulty gap
• “Transparency 2.0”
Participation (!)
• In “rumination” sessions (the building of the
solution)
• In i3 portfolio progress meetings (to follow-
up implementation)
1
3 Transparency 2.0
• Real-time insight in goals and progress, in 1
clear story, from everyone’s pen directly
2 Focus on the mandate
• Which is to build a solution and implement it
together
• First focus: HOW does an ideal the solution
looks like according to the group
• Second focus: WHO does what
A B
A B
“The sponsors” of the transformation
The different “i3 teams”
How to have a structured discussion on what autonomy to
give (and what not) ?
-37-
© 2017 Pactify Software. All rights reserved.
Autonomy in
“the execution”
Autonomy in
“solution design”
Autonomy on “the how”
•Develop the approach
•Making& owning the plan for it
•Defining (new) roles/ rules to get it done
Autonomy on “the what”
I.e. on the actual solutions & execution
thereof, of the questions in the tree:
•Freedom in how the solution looks like ?
•Which key decisions?
•Which type of milestones?
Central question: how do we change the business, given the new Masterdata system?
My worry: companies focus too much on concepts like
“big data”, “knowledge management/ sharing”, …
And this can be a problem because:
-38-
© 2017 Pactify Software. All rights reserved.
• The fact that people actually move …
• … to solve the right problems, and help each other to build solutions …
• … solutions they implement in cooperation …
• … so that these solutions realise actual impact !
Sure you need data/ knowledge for this as well …
… but that’s only a really minor contributor to actual success
These concepts in itself DO NOT trigger the essential stuff:
Real cooperation can sometimes be counterintuitive
REAL
cooperation
IS NOT:
-39-
© 2017 Pactify Software. All rights reserved.
• Attending all meetings you’re invited for …
• … but not really contributing anything in those meetings
• “I go to meetings, so I cooperate”
REAL
cooperation
IS:
• Asking what’s expected from you in the meeting
• NOT attending the meeting when there is no expectation
• In the mean while: advancing on your work in parallel to the meeting
“1+1<2”
“1+1>2”
The root causeof disengagement ….
… is NOT :
-40-
© 2017 Pactify Software. All rights reserved.
Some people demotivating other people
• Boss twds workers, colleagues among each other, …
… BUT : How the work itself is managed/ organised/ done
• Example: too difficult/ too easy, not enough feedback, too volatile,
too many orders and too little thinking, …
Fixing engagement (structurally) should always start from
the work itself, not from people (& how they feel today) !
(The impact on people is a consequence, not something to try to
directly improve, without fixing the real root cause first)
How to create engagement from within the work
… and how NOT?
Potential things to do
-41-
© 2017 Pactify Software. All rights reserved.
Potential impact on
engagement
Ask an opinion from a team
• “Should we do A or B?”
Let teams generate new idea’s
• “Please come up with idea’s around XYZ”
Let teams solve a problem
• “Knowing that we want to achieve X, but that there are
bottlenecks Y and Z, how should we tackle this?”
Give an order to the team
• “I expect you to achieve this, by then, following this approach”
Ask an opinion from a team, but do something else afterwards
• Deciding to do C, when you asked “A or B?”
Let teams generate idea’s but then not implement any of them
1
2
3
4
5
6
Why is “giving a problem to solve for the organisation” the
single most engaging thing to do? 5 arguments
Potential things to do
-42-
© 2017 Pactify Software. All rights reserved.
Potential impact on
engagement
Ask an opinion
from a team
Let teams
generate new
idea’s
Let teams solve
a problem
Give an order
to the team
Ask an opinion from a team, but do something else afterwards
Let teams generate idea’s but then not implement any of them
1
2
3
4
5
6
1. A problem is a strong invitation to start thinking, esp. compared
to “a solution you have to implement”
2. You can give a serious piece of autonomy along with it (on how
solution can look like)
3. A problem with enough “flesh on the bone” quickly triggers
several actions/ alignment/ progress, so lots of “experience” of
autonomy& engagement
4. The specific choice of problem& team, allows to “design” more
(engaged) cooperation where you need it
5. When you take the time& coach this effort, you can SHOW that
you really mean it & that will be strongly appreciated and
returned with engagement
When you REALLY want to tackle both productivity and
engagement, in the action,
you first have to do something unconventional:
Learn teams to solve questions that
“normally” are solved 1 level higher up
-43-
© 2017 Pactify Software. All rights reserved.
… it changes everything ! : it will create a new context, interactions,
feedback, … TO ACTUALLY DO/EXPERIENCE AND LEARN concretely
how you can experience all these nice concepts:
• Goal focus
• Transparency on progress
• Trust building inside a team
• Lowering resistance and escalations
• Giving autonomy so it’s used for performance improvement and cooperation
• It avoids escalation delays and frustration
• …
The different grades of autonomy we introduce
1.You take the pen, no one else
– To formulate transparently: (i) the goal, (ii) the real-time progress and (iii) the status
2.You have some freedom in shaping the HOW
– The goal is fixed
– The actions / milestones to get there are in your autonomy
• Steerco is informed, is not “a standard” step to go through
3.You have some freedom in shaping the WHAT
– You are mandated to solve the question on “What to do ?” … leading to the goals
– Steerco is informed, is not “a standard” step to go through
– Different grades in this as well
• Within your direct responsibility
• Broader tactical, strategic levels of responsibility
-44-
© 2017 Pactify Software. All rights reserved.
So as an engineer in physics and management consultant,
I started out to try to understand “how people function”
-45-
© 2017 Pactify Software. All rights reserved.
Source: Mihaly Csikszentmihalyi
“Comfort/
pleasure”
“Flow”
“Meaning”
“Free” person
Controlled person
(happy/ unhappy)
“Unhappy”
& not driven
“Happy &
driven”
Types of personal drive
Safety, health, fun,
recognition, …
• Strong focus on an activity
(immersion)
• Individual or in group
(cooperation)
Feeling connected to
something bigger you
believe in
Characteristics of
organizations that trigger
these drives
Top down mgt culture
Focus on structure/ roles/
rules/ KPIs/ …
• Nice, friendly atmosphere
• Safety/ security
• Transparency from top
Cfr. “Re-inventing
organisation” – F.Laloux
-46-
© 2017 Pactify Software. All rights reserved.
On any given day …
… a leader has to worry about only 2 things:
1. Where should I give more autonomy (on what) ...
in order to unlock higher performance?
• Which teams to give which problems/ goals to tackle?
• … where the lack of autonomy (because too many (old)
rules/ structures/ conventional thinking/ …) is preventing
high performance today in these area’s …
2. How do I make sure they accept it?
• How to avoid that they escalate the autonomy back to me?
• How will they enjoy autonomy and use it to really cooperate?
The inconvenient truth about top-down change management
-47-
© 2017 Pactify Software. All rights reserved.
When you need to change …
… and you prevent people to think along …
… about how the change should look like …
…. you basically motivate them to resist it once it’s there.
-48-
© 2017 Pactify Software. All rights reserved.
The REAL reason for managers to give autonomy to
people to solve specific problems:
So people can use a sponge& pen to erase& re-write …
… the complicated book of rules/ roles (& decision rights) /
KPIs/ policies/ …
that prevents the organisation today to
get to performant solutions on those problems!
(Oh and by the way: it’s also extremely engaging)
A.
Send him/ her to a well reputed
training session on
“communication”
-49-
© 2017 Pactify Software. All rights reserved.
Suppose:
an employee scores a bit weak on
an assessment of his/ her “communication” skills
What’s the best remedy ?
What’s most effective ?
A.
Send him/ her to a well reputed
training session on
“communication”
B.
Give him/ her the lead in
defining and organising the next
office activity
-50-
© 2017 Pactify Software. All rights reserved.
No matter how hard you need high performance …
… you can NOT force people into high performance
And yet we tend to do this a bit too often and too much:
• By setting their goals, prescribing how they should work,
saying when they should be ready, how they should report, ….
High performance can& will only come in 2 steps:
1) Start by giving more freedom (autonomy)
2) Coach them so they “use” that freedom to continuously
seek ways to get better (= drive performance)
Universal management truth:
The beauty of Flow: 4 simple, powerful and train-able(!) conditions
to achieve it !
-51-
© 2017 Pactify Software. All rights reserved.
Perceived skill
Perceived
difficulty
Boredom
Frustration
You set clear and
actionable goals first, to
guide everything you do
You capture feedback
WHILE you act, and use
it to strengthen focus or
adjust course of action
You continuously (re-)design your
activity so that there is a continuous
balance between your perception of the
difficulty and skill for the activity
1
2
3
You have a minimum of autonomy to do the activity & define/ design how you do it
0
The change readiness curves … and the behaviors behind it
-52-
© 2017 Pactify Software. All rights reserved.
You deny/
ignore/ try
to hide from
the change
Your
behavior
twds the
change
You try to get a
basic
understanding
about what’s
going to
change
You
investigate,
ask questions
on it, more&
more detailed
ones
You actively
contribute to
the change
... when you
are asked to
do so
You actively
contribute to
the change
... based on
your OWN
motivation
(shape change
yourself)
The real
big jump is
here …
Your
motivation
to change
0
The 1 holy principle to start Flow in an organisation
Do NOT invent every solution (goals/ targets/ orders/ …) at the top!
In other words:
Give people enough room& support so they can contribute to the solutions for themselves
– Give the room: condition 0 for Flow
– Support them to learn to implement conditions 1 – 3 for Flow
So the 1 billion dollar question for any leader who wants this:
How to organise work so there is consistently
more thinking done below me than by me ?
– How do I open up/ push down/ keep the thinking there?
-53-
© 2017 Pactify Software. All rights reserved.
Classical misconception:
“We need to give people ownership so they will be engaged!”
-54-
© 2017 Pactify Software. All rights reserved.
How this way usually starts:
“You are now the owner of initiative/
project ABC ...”
“... please make a plan we can approve
& report in the steering committee so
we can validate your progress”
ONLY engaging when ownership is
also accepted, in autonomy
Ownership that often
disengages
If accepted, very engaging
ownership
NOT engaging when it’s
“forced ownership”
How this way can start:
“We face this problem/ challenge, how
would you tackle it?”
“Take your time to find it out, but
show us every 2 weeks how you move
forward, so we can help if needed”
Transparency, but a very specific one, is a key driver for
engagement
-55-
© 2017 Pactify Software. All rights reserved.
“Transparency 2.0”
All information in 1 place, accessible to many
• The goals (overall goals and work stream related)
• The actual progress towards these goals (milestones, key actions)
• The status (issues to solve, decisions to take)
Structure so it’s readable to many
• Not a sharepoint where all files are put but no one reads yours except you
• Not a document with a laundry list of small and big items
Real-time updates, not only the day before a steering committee
Directly from everyone’s pen
• Not written (and thus interpreted) by an outside consultant or high level PMO
Hard in the beginning !
• Fear of transparency
You have to learn/ coach
people into this
But eventually a very strong
source of engagement
The reason why “classical” organisational logic doesn’t work
-56-© 2017 Pactify Software. All rights reserved.
The mission
The vision
The strategy
The “structural items” we set
up to get the above done
• Departments (entities) with
their own processes,
systems, KPIs, meetings, …
…
Here we try to seek
cooperation across
departments
(by aligning on high
level statements)
Here we tend not to
cooperate across
departments
(due to differences in
processes, ways of
working, KPIs, …)
The 2 things we didn’t succeed in changing in the last 30 years
-57-
© 2017 Pactify Software. All rights reserved.
The things
that
continuously
drove
change in
businesses,
over the last
30 years
• The internet
The way we manage work (& specifically change):
1.We invent and decide the change at the top
2.We makes clear rules for work& people, to control execution
•Non-flexible rules
•A set of rules for everything people do
- often conflicting across groups of people (departments)
•Rules giving increasing power/ freedom twds the top
• Business process re-engineering,
ERP/ CRM systems
• E-commerce, mobile technology,
digitalization, IOT, robotics
• Laptops, email
• Office software (spreadsheets, …)
• Open source software
• Globalisation
• Social media
• Six sigma, Lean, Agile
• Online cooperation tools
• …
• …
• …
However, we didn’t succeed in changing/ improving these 2 things:
Our success rate in change
•Over the last 30 years, a
constant, poor, success rate
of 30% across all change
programs
This may be linked?!
• …
Despite all the technological/ business innovations in the last 30 years …
• Software development (email, ERP/ CRM, open source, …), the internet, mobile technology, e-
commerce, digitalisation, …
• Business process re-engineering, lean/ agile methodologies, …
… we didn’t really advance on the art/ science of “organising work”:
• It has always been around “making rules” (on who should do/ decide what), to get work done (as
effectively as possible)
Yet it is probably time to innovate there as well, because these rules have 3 big flaws:
1.They always increase the power vertically to the top, leading to:
– A growing bottleneck at the top when work gets complex (as it does!)
– Growing disengagement below as you implicitly signal them: “you are not here to think, the top
does that for you” (signal is intense: in all aspects of how you work, every day in and out)
2.We try to make a rule for every situation in every different entity, leading to:
– Complexity inside
– Conflicting rules across entities, not promoting behavior that is best for the entire organization
– De-motivation to “think& solve situations” yourself … so you don’t need a rule to do that for you
3.They assume that people are 100% rational and 100% incentive driven, 100% of the time
-58-
© 2017 Pactify Software. All rights reserved.
We’ve seen plenty of change in business, except in 1 key area …
“Flow” = the ONLY path from your comfort zone to “the magic”
-59-© 2017 Pactify Software. All rights reserved.
Perceived skill
Perceived
difficulty
Your comfort
zone
Where the
real magic
happens!
Your day-
to-day job
BOREDOM ZONE
FRUSTRATION
ZONE
Take the time to start to think, about possible ways that
could get you to the goal
Ask different people’s thoughts, multiple times
Come up with first, concrete idea’s& logic
Try something/evaluate how it went/ go on
Making it even more difficult when you focus
on (i) own excuses, complaints, confusion, …
& (ii) your boss’ reminders (as nothing moves)
?
A new goal to achieve,
ordered by your boss
!
Goal presented as invitation to solve
something, plus autonomy given to find
yourself how you can get into action
Any manager needs to re-invent his/ her
organisation when …
-60-
© 2017 Pactify Software. All rights reserved.
The behaviour you want
(i.e. the one you expect as a result
of your decisions, rules, structures,
systems, processes …)
The behaviour you “get”
I.e. the real drive, focus, goal
orientation, rigor, compliance …
“in the (heat of the) action”
1) … there is a growing gap between:
(or thinks it can only be closed by
even more decisions, rules, structures, …)
2) … he/ she cannot really explain this gap any more
How every goal can lead to focused cooperation
-61-
© 2017 Pactify Software. All rights reserved
Individual
/
Co-create the goal together
• Solve a shared problem so that
shared solution becomes your goal
OR: Define the goal together
• 1 pen per team member to get to 1
definition of what you aim for
• The richer, the better the inside
feedback for the team
Document/ Justify/ Decide launch
For every step of progress:
1. Cut higher goal up into tracks (milestones )
2. Imagine every single track (milestone) to run together
• Write a sharp, rich track plan
- Where to get to next and how: in milestones& actions
- Transparent how everyone contributes
- The richer, the better the inside feedback for the team
3. Run the track (actually do/ decide)
4. Evaluate each track
• Describe sharply how track plan turned out
• Re-formulate how milestones& actions actually turned out
- The richer, the better the inside feedback for the team
5. Go back to 2. for the next track (milestone)
The
initiative
goal
Today Today
Where we
aim to be
(milestone)
How& by whom
we want to get
there (actions)
How we
actually did it
(done actions)
Where we
actually ended
up (milestone)
2 4
1
2
3
4
5
Team
-62-
© 2017 Pactify Software. All rights reserved.
Goals
With their rationale,
business case …
Governance
The right man in the right place
The roles, responsibilities, rules, ..
&
New school thinking:
Old school thinking (invented 30+ (!) years ago):
… and then “things will get done” Doesn’t work
anymore when
work gets complex!
Goals
Through cooperative
problem solving, not
only top down
Governance BUT with
minimum of autonomy
NOT describing every
possible situation& its impact
on who decides what.
& &
Direct transparency on
HOW progress is made
So we think more together,
learn and get better,
continuously.
All we need is:
What we really need is:
-63-
© 2017 Pactify Software. All rights reserved.
“… please do what I tell you to do”
The only way to coach for real engagement and
performance:
“Dear employee, …”
1
“… look and see how I do it”2
“… it should really come from you !”3
1) Doesn’t work
and 2) & 3) are
in essence a
variation on 1)
“… I give you the time and support so I can
hear from you how you would do it”
4
The only credible way of making your employees experience that the bottom-up part is
REAL (as you go beyond only convincing them: you actually let them DO it, which is
much harder for them to downplay as “top down in disguise”)
Regardless of governance, rules, policies, roles, … there are 3 essential
things to focus on for more engagement and cooperation:
-64-
© 2017 Pactify Software. All rights reserved.
The goals
The progress
The individual
contributions
(to progress)
1
2
3
• Are they clear ?
• Do we cover everything we want to achieve with them?
• Would team members/ stakeholders all formulate them in the same way ?
• Can everyone consult them at any time?
• Are they still relevant (at any point in time) ?
The key questions that determine the team/ group behaviour
• Is it clear, can it be consulted by anyone involved?
• Is it written from within the team or from the outside (from a distance)?
• Does it accurately reflect how the team is doing?
• Does it serve as a powerful confirmation/ confrontation to the team?
• Does it drive the team motivation?
• Is transparent how everyone adds (or avoids to add) to progress?
• Is it authentic? I.e. the real contributions and how they took place?
• Was the contribution made using own autonomy or was it controlled?
• How confident are people to become transparent on them?
• How does this transparency fuel individual motivation to cooperate?
Does everyone on your team recognise these
3 principles for Flow, at any time ?
-65-
© 2017 Pactify Software. All rights reserved.
“OUR GOALS are clear and shared”
“We experience OUR PROGRESS: we see clearly that we get closer to the goals”
“I experience that MY CONTRIBUTIONS really add to that progress”
1
2
3
A common statement of teams:
-66-
© 2017 Pactify Software. All rights reserved.
Know each other well (our hobbies, etc.)
Be nice to each other
Know what the others do on the project
Usual definition of
“working well together”
A more profound way
of cooperating
Help others, so they get better at what they do
Sacrifice individual goals to “take one for the team”
1 language/1 voice/ 1 truth for their goals& progress
• Same, sharp version when asked separately
• Real-time transparency on goals, progress& how
everyone contributes to progress
“Yes yes we work really well together!”
… but what do they really mean ?
Why “push down the thinking” in your organisation ?
•Thinking is the only good way to start any engaged, goal focused ACTION
– At least when given a minimum of time and autonomy to do so
•Given the increasing complexity of business …
– … more and more of the key answers lie somewhere down into the organisation
– … it’s REALLY no option to face that complexity with a group that doesn’t have the habit to think!
-67-
© 2017 Pactify Software. All rights reserved.
It’s NOT true that “top down doesn’t work”.
BUT, when people collectively perceive that
“everything is top-down here” …
… then, and only then, it’s true that it will not work.
As a leader, it’s key to authentically convince that
there is always a (growing!) share of the work that
cannot, should not, and never will be top-down …
-68-
© 2017 Pactify Software. All rights reserved.
Learn while doing implies change “from the inside of the teams”,
different from traditional change where you “work around them”
-69-
© 2017 Pactify Software. All rights reserved.
“Force change from the outside”: Hope for
change by influencing from the “periphery”
(Indirect, lot of effort and risk, unclear payoff)
“Learn while doing, but with outside help”:
Lay the momentum (“physically”) in the group
(Directly from within the action of teams)
Governance
processes
The people/
teams & their
real goals &
actions
Leadership
Communication
Productivity
tools
Team
building
events
Consultants
Top
down
decisions
Vision
Culture
Workplace
The “pen & floor”
within the teams
• Transparent
• Around goals & actions
• With guidance and help
The people/ teams &
their real goals & actions
The people/ teams &
their real goals & actions

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Compilation of Pactify 1 sliders - May 2018

  • 2. Pactify is a methodology that is grounded in the principles of “positive psychology” -2- © 2017 Pactify Software. All rights reserved. In collaboration with Prof. Mihaly Csikszentmihalyi Founder of the “positive psychology” domain = the science of engaged high performance of people (“Flow” – individual autonomous high performance & “Group Flow” – cooperative high performance)
  • 3. The crucial (yet often neglected) link between organisational logic and actual results -3- © 2017 Pactify Software. All rights reserved. The “Organisational logic” • The mission, vision, strategy • The departments, roles, rules, processes, systems, KPIs, … The behaviour (what people do & how they do it) The actual results (sales, profits, returns, …) 1 2 3
  • 4. When you want more cooperation, you MUST counter these 4 classical “tendencies” -4- © 2017 Pactify Software. All rights reserved. • Too much governance at the top: making people “escalate” problems too quickly • Too little “lateral” interaction, too little cross-functional problem solving • No direct transparency from within structures, on goals/ progress/ individual contributions – Different reporting at each layer, each time with less insight in the real progress • Repeating the same old orders in the same old way, over and over again – Getting less and less creativity, thinking, engagement and output in return … 1 2 3 Report #1 Report #2 Report #3 1 2 3 4 4
  • 5. Our 4 steps to enable “autonomy driven performance improvement”, IN the action -5- © 2017 Pactify Software. All rights reserved. Give shared accountability to solve the problem to a specific team, i.e. to those that are: • Directly impacted by the solution • Required to cooperate to find& implement that solution (don’t give sole accountability to 1 appointed project manager, who’s not even directly involved in the solution afterwards)) Define “a relevant business problem to solve” (instead of giving “a solution already defined by you for them”) Set-up a dedicated process to • Build focus on the problem in the team - Recurring meetings w same team • Define& give specific degree of autonomy on the solution - And allow people to accept it! Learn people to be transparent on how they (i) tackle the problem & (ii) use their autonomy (“Transparency 2.0”) • Real-time status and progress • Insight in the real action/ contributions • Directly from everyone’s pen 1 2 3 4
  • 6. A common reason why projects fail … -6- © 2017 Pactify Software. All rights reserved. We give only sole accountability to 1 appointed project manager … … who is not directly involved in the solution afterwards • Gets a disproportionately high challenge for only 1 person • May push for solution that gets “decided” (by the top), rather than a solution that is “aligned” with those who will have to execute and adopt it Implications for … … the project mgr … the rest of the team • Know “who to blame when we fail” • May “care less” • May see the project manager as “not one of us”
  • 7. Personally not a fan of the “high performer” culture (Trying to breed only a couple of “superstars” & then put all your hope on them … won’t cut it in today’s complex environment) REAL HIGH (COLLECTIVE) PERFORMANCE only comes when you SHARE: -7- © 2017 Pactify Software. All rights reserved. … share goals … share action … share transparency … share accountability … … … ... so you can aim for more so you can help each other get better so you get more feedback on how you progress & can make individual contributions transparent (so you all have a real reason to cooperate!) so you cannot blame only 1 when you fail & you energise the entire team for success
  • 8. Back-up: “Transparency 2.0” is continuously trained “in the action” via an embedded software platform to manage the transformation (I/II) -8- © 2017 Pactify Software. All rights reserved. SCREENSHOTS
  • 9. -9- © 2017 Pactify Software. All rights reserved. SCREENSHOTS Back-up: “Transparency 2.0” is continuously trained “in the action” via an embedded software platform to support the transformation (II/II)
  • 10. The 2 “shells” of managing people and work -10- © 2017 Pactify Software. All rights reserved. Rules Systems Communication The people/ teams & their real goals & actions Roles StructuresReporting KPIs Governance (who can decide what?) The framework = the toolkit we deploy, with which we believe that “work will get done” The REAL ACTION = what people really do and how, in order to “get work done” How people actually, in reality … •Get into action … or wait to be told •Help others … or avoid to do so •Fight to get idea’s approved … or complain that they won’t •… 1 Basically: how people behave to make work “Flow” … or not 2 1 2 The problem today: 1. Managers spend too much time on • Changing, re-enforcing, communicating on it … 2. Often without direct positive effect on 3. It’s and only that really impacts productivity and engagement, not ! 2 1 1 2 2 Vision, mission, strategy Org chart
  • 11. The 2 “shells” of managing people& work: which side are you on? -11- © 2017 Pactify Software. All rights reserved. = the toolkit we deploy, with which we believe that “work will get done” = what people really do and how, in order to “get work done” Disengaged Slow No goal focus “Working Apart Together” Heavy reporting Layered and siloed org chart Complicated systems, procedures, orders, … Plenty of (strict) rules Plenty of KPIs Detailed governance (who decides what?) The framework The REAL action Engaged Agile, resilient • “Flow” Clear goal focus Cooperation • “Group Flow” Autonomy So collective focus is more on goals& making progress ... … than on all the roles & rules to get the work done 1 2 Bottom-up transparency On how progress is made by whom … … to allow specific help to continuously get better … eventually reaching more “Flow” and “Group Flow” Top down strategy
  • 12. The beauty of cooperation. -12- © 2017 Pactify Software. All rights reserved. The daily habit to focus on making the whole bigger than the sum of what the parts “logically” should deliver (e.g. departments) • By helping the others get better (across departments) • By making tough choices together (often against agenda of 1 department) • By going BEYOND (!) only “informing” each other (=“Working Apart Together”) • Making cooperation THE most effective way to “build skills” at the same time! - Because you create more interaction, thinking, action, challenges, stronger goal focus, … AND you train/ do/ learn this as a “daily” habit Cooperation =
  • 13. The 4 shades of “autonomy in action” … only 1 shade is optimal … and is a true competitive advantage for an organisation -13- © 2017 Pactify Software. All rights reserved. How is the autonomy “given” to the team ? Pushed down, not accepted in the team Not only given, but also accepted in the team They get into action with it (typically: tackle a problem that leadership wants them to solve) What does the team do with the autonomy ? They avoid getting into action with it (passive/ reactive) 1 2 Team not ready/ willing/ able to handle autonomy Need time/ coaching/ easier problems … or else autonomy will be taken back Laziness in the team Need to ask more transparency and/ or give more challenging problems SHARP TEAM ! (helping each other get even sharper) They solve problems the organisation was unable to solve prior to giving the autonomy Frustration in the team Need to provide more coaching (of their action) and/ or lower the challenge of the problem you give them
  • 14. -14- © 2017 Pactify Software. All rights reserved. Actual company performance/ results Introducing a simple behavioural model Behaviour (the real action: what people do and how) People’s motivation All things that impact motivation + ability/ competence + triggers for action Feelings/ mood (engagement/ happiness vs disengagement) All things that impact abilities and triggers + + • Milestones reached – Turnaround – ERP implemented – … • Productivity in reaching those milestones • Financial results – Growth/ profits • Behaviour – Passive/ active – Goal focused – Cooperation vs. “working in the silo” • Extrinsic – Carrot – Stick • Intrinsic – Purpose – Autonomy – Mastery •Strategy/ vision •How work is organised – Structures, roles, rules, processes, KPIs, policies, … •Management style •For all 3: top down vs. bottom up? (determines motivation type!) •…
  • 15. Cooperation = the engine that creates more time/ energy/ intelligence at not extra cost -15- © 2017 Pactify Software. All rights reserved. The mechanics Cooperation • Give people autonomy • Ask them to use it to solve a specific problem for the organisation • Ask them to tell you what they do with the autonomy (transparency) • The right configuration: team composition in function of the problem to solve • A fixed process to develop focus on the problem • Freely taken up ownership on parts of the problem • People helping others get better • Teams making decisions as 1 The fuel • Engagement through people experiencing that their autonomy produces progress – Through self-decided ownership (in autonomy) – Through own transparency on progress The ignition
  • 16. If your problem is: “I don’t have time” Then start to cooperate more ! … because: Cooperation creates time (& energy) within the same 8 hours we have in a day ! PS: You don’t really have another option, as refusing to cooperate is going to make your problem even bigger -16- © 2017 Pactify Software. All rights reserved.
  • 17. Cooperation is not a term that “just sounds nice” It’s a modus operandi of a team where their goals, plans, actions, interactions, decisions, … are continuously optimised to yield maximum collective output from a fixed amount of resources (people/ time/ intelligence) Crucial condition: sufficient freedom (autonomy) for all team members (!) • As they need it to (continuously) find their optimum contribution to cooperation. Due to this condition: Output in cooperation >> Output in top down structures -17- © 2017 Pactify Software. All rights reserved.
  • 18. Saying “our people have autonomy” is 1 thing … Adopting, as a manager, the continuous habit to … • … state explicitly what kind of autonomy you transfer on what – “What freedom in which specific tasks/ goals / projects/ problems?” • … give time and support so people can handle the autonomy • … keep listening, and coaching them forward • … signal that you trust they will be able to pull it off • … prevent yourself from giving answers/ solutions yourself all the time … is one hell of another thing! BUT … … pulling through long enough until you see& reap the results of it, is one of the most powerful things in organisations ! -18- © 2017 Pactify Software. All rights reserved.
  • 19. #1 priority in any CEO agenda: How to continuously train(1) the organisation … … to make sure that when I give autonomy … …that people USE that freedom to do something spectacularly cool and performant with it. (1) Training through doing what we do (meaning: from within the actual work), not through one-off training sessions, that are often dis-connected from reality -19- © 2017 Pactify Software. All rights reserved.
  • 20. You can basically do 2 things with autonomy (when your manager gives it): -20- © 2017 Pactify Software. All rights reserved. Use it … … to perform like you never performed before (much stronger than when you were controlled) Abuse it … … to hide, slow down, find excuses, … OR To get this and not the abuse, you need: • An important business problem to solve - To create focus on what to use your autonomy for - A problem that, when solved, makes the team& the organisation better of • A process of repeated interactions (to take time, build focus& trust, …) • Transparency from everyone on how they use the autonomy - On goals and how you make progress - So everyone can ask for/ get help to improve
  • 21. The 2 very different types of top-down managers, and why both don’t work “The control freak” -21- © 2017 Pactify Software. All rights reserved. “The over-inspirer” Top down characteristics The real reason why this doesn’t work • Sets goals himself • Prescribes how to reach them • Controls how progress is made • Rewards/ punishes on results • Sets his own inspirational goals • Sees “execution” as a detail • Disappointed/ surprised when execution fails/ lags behind target • When ordered too much, people “decide” not to give their full 100%, so you’ll get less (and eventually less& less) • Focus too much on blame if people fail rather than to help them get better& succeed • Inspiring idea’s often not matched to the actual execution skill of the organisation • No attention/ knowhow on how to growing that execution skill • Without enough autonomy over idea’s themselves, people “decide” not to give their full 100% 1 2
  • 22. A key question for any leader: -22- © 2017 Pactify Software. All rights reserved. Have a great vision, be able to communicate it very convincingly, … Avoid too much top down, make sure people get& accept autonomy, and use it to grow their performance “in cooperation” “How do I go from inspiring the minds” … …. towards also: inspiring the action?” (Unfortunately NOT a logical consequence any more these days !)
  • 23. MUCH MORE effective than a 3% annual pay raise … ... is: a 3% annual autonomy raise ! -23- © 2017 Pactify Software. All rights reserved.
  • 24. An opportunity for all of us: -24- © 2017 Pactify Software. All rights reserved. How can we structure, systemise, “procedure-alise”, report, incentivise, … everything people do ? What do we need to do differently so people show their full 100%, instead of their 80-85%, which we seem to be getting all the time ? Instead of acting too much as “methodology freaks” … we should all become a bit more “behaviour freaks”
  • 25. -25- © 2017 Pactify Software. All rights reserved. The biggest enemy of A GOOD IDEA The big pile of all other small& big things to do, that’s sitting on top of that good idea Being owned by “a believer” who autonomously decides to defend/ enrich/ battle-test/ align … it into a “decided initiative” with a dedicated team The biggest blessing for A GOOD IDEA
  • 26. -26-© 2017 Pactify Software. All rights reserved. The art of using KPI’s to manage your business Ideally in a continuous process where you: • Start from base question: “What are all possible ways to improve KPI?” • Give the question to specific teams • Give the teams autonomy/ time/ help to: – develop their answers – align/ implement& steer their answers Taking note of the KPI value Spend 5% of the time on: Debating the measurement method Spend 0% of the time on: Making sure the measured value improves Spend 95% of the time on: The reality often: 40% of the time 40% of the time 10% of the time Typically: getting to a list of actions in a rush at end of a meeting, mostly top down and only the superficial, obvious actions.
  • 27. -27-© 2017 Pactify Software. All rights reserved. Some definitions and 2 questions … “Doing tomorrow what you did yesterday” “Business as usual” activities “Change” activities “Transformation” activities Definition Question 1: in which of the 3 do we give most autonomy TODAY ? Question 2: in which of the 3 do we need to give MORE autonomy to drive impact from it? “Improving what you did yesterday” “Doing fundamentally new things” • Sell products • Purchase raw materials • Process invoices • Do R&D to launch new products • … • Do a lean program • Implement a new ERP • … • Develop multi-channel from an offline sales base • Diversify into new businesses • … Examples
  • 28. -28-© 2017 Pactify Software. All rights reserved. We should focus less on creating: strategy reports” governance slides” organisation charts” KPI dashboards” ERP systems” meeting minutes” …” “Great looking and focus much more on creating: “Great looking ACTION” • Goal focused • Self-driven • In “Flow” • Cooperative - through layers and across silo’s The type of action you’d almost want to see the replay of!
  • 29. -29-© 2017 Pactify Software. All rights reserved. “GLA”: “Great looking ACTION” • Goal focused • Self-driven • In “Flow” • Cooperative - through layers and across silo’s The type of action you’d almost want to see the replay of! KPI’s of only second order (or higher) importance: ROCE KPI of first order Importance:
  • 30. -30-© 2017 Pactify Software. All rights reserved. It’s important to have KPI’s and to measure them! (No discussion and no doubt) BUT: the things that really drive KPI improvement … are “KBI’s” (Key Behaviour Indicators) Examples of “Key Behaviour Indicators” (Non-exhaustive!):
  • 31. -31-© 2017 Pactify Software. All rights reserved. Autonomy = Probably the most misinterpreted term in business today (Managers fear that it will make people do whatever they like …) The trick to make it “work” is to: • Frame it within a specific piece of work - e.g. a specific degree of freedom in a project or a problem to solve • Ask transparency in return for it And when it works … … you’ll see performance you have never seen before … coming from the same people!
  • 32. -32-© 2017 Pactify Software. All rights reserved. When you give people more freedom (autonomy) to do what they do … … and when you give it in “the right way”(1) … …you WILL get higher performance in return. (higher compared to before) (1) In a way that it is (constructively) used to find “Flow” (individually or in cooperation) It’s intuitive to do so in “business-as-usual” work … But much less intuitive in “change/ transformation” work, and yet it’s THERE that we need the higher performance these days !!
  • 33. Success in strategy execution depends on: -33- © 2017 Pactify Software. All rights reserved. What we tend to focus on during strategy execution 5% 95% “Having a good& clear strategy” “The actual change in behaviour” (through trying, learning, freedom to test& fail, transparency, feedback, action focus, cooperation, …) 5% 95% Houston ?? We “just simply” put in place “the right” people, governance, structures, reporting, … and things will get done … (right ?) We analyse, justify, align, communicate, … over& over again
  • 34. How to really drive KPIs upwards ? -34- © 2017 Pactify Software. All rights reserved. NOT by focussing on: The KPI dashboard itself • The KPI data, trendlines, forecasts, scenario’s, … Trying to find some short term actions to improve the KPI • Typically with a short term focus: from week to week Do this: (to really impact your KPI) Before focussing on KPI, go back 3 steps: 1. To the root problems that causes the KPI to perform badly 2. Then solve those problems in cooperation 3. Then execute that solution (the fix) Then and only then, looking at your KPI dashboard • And go back to 1. in case of issues
  • 35. -35- © 2017 Pactify Software. All rights reserved. We should all go less to (external) trainings/ seminars/ … … and learn ourselves more to solve problems “IN THE ACTION”, meaning: 1.Where they arise 2.When they arise 3.With those that cause them 4.In cooperation 5.Persisting long enough … (at least to avoid ordering the next external training again … ;-) )
  • 36. The “new deal” between sponsors and i3 teams for “the last reorganisation you’ll ever need” -36-© 2017 Pactify Software. All rights reserved. What we give you (i.e. from “sponsors” to “i3 teams”) What we expect from you (i.e. from “i3 teams” to “sponsors”) The time and autonomy (freedom) to 1. … identify/ solve a question that is relevant for you 2. … gradually build a solution for it in cooperation 3. … implement that solution (1-2-3 described in a “the mandate”) 1 2 A continuous learning curve “in the action”, with support • Not 1 question, only once, no a continuous process • Questions always slightly more difficult than current capabilities in the group (Flow condition) • Moderation support to coach you in the action to close the difficulty gap • “Transparency 2.0” Participation (!) • In “rumination” sessions (the building of the solution) • In i3 portfolio progress meetings (to follow- up implementation) 1 3 Transparency 2.0 • Real-time insight in goals and progress, in 1 clear story, from everyone’s pen directly 2 Focus on the mandate • Which is to build a solution and implement it together • First focus: HOW does an ideal the solution looks like according to the group • Second focus: WHO does what A B A B “The sponsors” of the transformation The different “i3 teams”
  • 37. How to have a structured discussion on what autonomy to give (and what not) ? -37- © 2017 Pactify Software. All rights reserved. Autonomy in “the execution” Autonomy in “solution design” Autonomy on “the how” •Develop the approach •Making& owning the plan for it •Defining (new) roles/ rules to get it done Autonomy on “the what” I.e. on the actual solutions & execution thereof, of the questions in the tree: •Freedom in how the solution looks like ? •Which key decisions? •Which type of milestones? Central question: how do we change the business, given the new Masterdata system?
  • 38. My worry: companies focus too much on concepts like “big data”, “knowledge management/ sharing”, … And this can be a problem because: -38- © 2017 Pactify Software. All rights reserved. • The fact that people actually move … • … to solve the right problems, and help each other to build solutions … • … solutions they implement in cooperation … • … so that these solutions realise actual impact ! Sure you need data/ knowledge for this as well … … but that’s only a really minor contributor to actual success These concepts in itself DO NOT trigger the essential stuff:
  • 39. Real cooperation can sometimes be counterintuitive REAL cooperation IS NOT: -39- © 2017 Pactify Software. All rights reserved. • Attending all meetings you’re invited for … • … but not really contributing anything in those meetings • “I go to meetings, so I cooperate” REAL cooperation IS: • Asking what’s expected from you in the meeting • NOT attending the meeting when there is no expectation • In the mean while: advancing on your work in parallel to the meeting “1+1<2” “1+1>2”
  • 40. The root causeof disengagement …. … is NOT : -40- © 2017 Pactify Software. All rights reserved. Some people demotivating other people • Boss twds workers, colleagues among each other, … … BUT : How the work itself is managed/ organised/ done • Example: too difficult/ too easy, not enough feedback, too volatile, too many orders and too little thinking, … Fixing engagement (structurally) should always start from the work itself, not from people (& how they feel today) ! (The impact on people is a consequence, not something to try to directly improve, without fixing the real root cause first)
  • 41. How to create engagement from within the work … and how NOT? Potential things to do -41- © 2017 Pactify Software. All rights reserved. Potential impact on engagement Ask an opinion from a team • “Should we do A or B?” Let teams generate new idea’s • “Please come up with idea’s around XYZ” Let teams solve a problem • “Knowing that we want to achieve X, but that there are bottlenecks Y and Z, how should we tackle this?” Give an order to the team • “I expect you to achieve this, by then, following this approach” Ask an opinion from a team, but do something else afterwards • Deciding to do C, when you asked “A or B?” Let teams generate idea’s but then not implement any of them 1 2 3 4 5 6
  • 42. Why is “giving a problem to solve for the organisation” the single most engaging thing to do? 5 arguments Potential things to do -42- © 2017 Pactify Software. All rights reserved. Potential impact on engagement Ask an opinion from a team Let teams generate new idea’s Let teams solve a problem Give an order to the team Ask an opinion from a team, but do something else afterwards Let teams generate idea’s but then not implement any of them 1 2 3 4 5 6 1. A problem is a strong invitation to start thinking, esp. compared to “a solution you have to implement” 2. You can give a serious piece of autonomy along with it (on how solution can look like) 3. A problem with enough “flesh on the bone” quickly triggers several actions/ alignment/ progress, so lots of “experience” of autonomy& engagement 4. The specific choice of problem& team, allows to “design” more (engaged) cooperation where you need it 5. When you take the time& coach this effort, you can SHOW that you really mean it & that will be strongly appreciated and returned with engagement
  • 43. When you REALLY want to tackle both productivity and engagement, in the action, you first have to do something unconventional: Learn teams to solve questions that “normally” are solved 1 level higher up -43- © 2017 Pactify Software. All rights reserved. … it changes everything ! : it will create a new context, interactions, feedback, … TO ACTUALLY DO/EXPERIENCE AND LEARN concretely how you can experience all these nice concepts: • Goal focus • Transparency on progress • Trust building inside a team • Lowering resistance and escalations • Giving autonomy so it’s used for performance improvement and cooperation • It avoids escalation delays and frustration • …
  • 44. The different grades of autonomy we introduce 1.You take the pen, no one else – To formulate transparently: (i) the goal, (ii) the real-time progress and (iii) the status 2.You have some freedom in shaping the HOW – The goal is fixed – The actions / milestones to get there are in your autonomy • Steerco is informed, is not “a standard” step to go through 3.You have some freedom in shaping the WHAT – You are mandated to solve the question on “What to do ?” … leading to the goals – Steerco is informed, is not “a standard” step to go through – Different grades in this as well • Within your direct responsibility • Broader tactical, strategic levels of responsibility -44- © 2017 Pactify Software. All rights reserved.
  • 45. So as an engineer in physics and management consultant, I started out to try to understand “how people function” -45- © 2017 Pactify Software. All rights reserved. Source: Mihaly Csikszentmihalyi “Comfort/ pleasure” “Flow” “Meaning” “Free” person Controlled person (happy/ unhappy) “Unhappy” & not driven “Happy & driven” Types of personal drive Safety, health, fun, recognition, … • Strong focus on an activity (immersion) • Individual or in group (cooperation) Feeling connected to something bigger you believe in Characteristics of organizations that trigger these drives Top down mgt culture Focus on structure/ roles/ rules/ KPIs/ … • Nice, friendly atmosphere • Safety/ security • Transparency from top Cfr. “Re-inventing organisation” – F.Laloux
  • 46. -46- © 2017 Pactify Software. All rights reserved. On any given day … … a leader has to worry about only 2 things: 1. Where should I give more autonomy (on what) ... in order to unlock higher performance? • Which teams to give which problems/ goals to tackle? • … where the lack of autonomy (because too many (old) rules/ structures/ conventional thinking/ …) is preventing high performance today in these area’s … 2. How do I make sure they accept it? • How to avoid that they escalate the autonomy back to me? • How will they enjoy autonomy and use it to really cooperate?
  • 47. The inconvenient truth about top-down change management -47- © 2017 Pactify Software. All rights reserved. When you need to change … … and you prevent people to think along … … about how the change should look like … …. you basically motivate them to resist it once it’s there.
  • 48. -48- © 2017 Pactify Software. All rights reserved. The REAL reason for managers to give autonomy to people to solve specific problems: So people can use a sponge& pen to erase& re-write … … the complicated book of rules/ roles (& decision rights) / KPIs/ policies/ … that prevents the organisation today to get to performant solutions on those problems! (Oh and by the way: it’s also extremely engaging)
  • 49. A. Send him/ her to a well reputed training session on “communication” -49- © 2017 Pactify Software. All rights reserved. Suppose: an employee scores a bit weak on an assessment of his/ her “communication” skills What’s the best remedy ? What’s most effective ? A. Send him/ her to a well reputed training session on “communication” B. Give him/ her the lead in defining and organising the next office activity
  • 50. -50- © 2017 Pactify Software. All rights reserved. No matter how hard you need high performance … … you can NOT force people into high performance And yet we tend to do this a bit too often and too much: • By setting their goals, prescribing how they should work, saying when they should be ready, how they should report, …. High performance can& will only come in 2 steps: 1) Start by giving more freedom (autonomy) 2) Coach them so they “use” that freedom to continuously seek ways to get better (= drive performance) Universal management truth:
  • 51. The beauty of Flow: 4 simple, powerful and train-able(!) conditions to achieve it ! -51- © 2017 Pactify Software. All rights reserved. Perceived skill Perceived difficulty Boredom Frustration You set clear and actionable goals first, to guide everything you do You capture feedback WHILE you act, and use it to strengthen focus or adjust course of action You continuously (re-)design your activity so that there is a continuous balance between your perception of the difficulty and skill for the activity 1 2 3 You have a minimum of autonomy to do the activity & define/ design how you do it 0
  • 52. The change readiness curves … and the behaviors behind it -52- © 2017 Pactify Software. All rights reserved. You deny/ ignore/ try to hide from the change Your behavior twds the change You try to get a basic understanding about what’s going to change You investigate, ask questions on it, more& more detailed ones You actively contribute to the change ... when you are asked to do so You actively contribute to the change ... based on your OWN motivation (shape change yourself) The real big jump is here … Your motivation to change 0
  • 53. The 1 holy principle to start Flow in an organisation Do NOT invent every solution (goals/ targets/ orders/ …) at the top! In other words: Give people enough room& support so they can contribute to the solutions for themselves – Give the room: condition 0 for Flow – Support them to learn to implement conditions 1 – 3 for Flow So the 1 billion dollar question for any leader who wants this: How to organise work so there is consistently more thinking done below me than by me ? – How do I open up/ push down/ keep the thinking there? -53- © 2017 Pactify Software. All rights reserved.
  • 54. Classical misconception: “We need to give people ownership so they will be engaged!” -54- © 2017 Pactify Software. All rights reserved. How this way usually starts: “You are now the owner of initiative/ project ABC ...” “... please make a plan we can approve & report in the steering committee so we can validate your progress” ONLY engaging when ownership is also accepted, in autonomy Ownership that often disengages If accepted, very engaging ownership NOT engaging when it’s “forced ownership” How this way can start: “We face this problem/ challenge, how would you tackle it?” “Take your time to find it out, but show us every 2 weeks how you move forward, so we can help if needed”
  • 55. Transparency, but a very specific one, is a key driver for engagement -55- © 2017 Pactify Software. All rights reserved. “Transparency 2.0” All information in 1 place, accessible to many • The goals (overall goals and work stream related) • The actual progress towards these goals (milestones, key actions) • The status (issues to solve, decisions to take) Structure so it’s readable to many • Not a sharepoint where all files are put but no one reads yours except you • Not a document with a laundry list of small and big items Real-time updates, not only the day before a steering committee Directly from everyone’s pen • Not written (and thus interpreted) by an outside consultant or high level PMO Hard in the beginning ! • Fear of transparency You have to learn/ coach people into this But eventually a very strong source of engagement
  • 56. The reason why “classical” organisational logic doesn’t work -56-© 2017 Pactify Software. All rights reserved. The mission The vision The strategy The “structural items” we set up to get the above done • Departments (entities) with their own processes, systems, KPIs, meetings, … … Here we try to seek cooperation across departments (by aligning on high level statements) Here we tend not to cooperate across departments (due to differences in processes, ways of working, KPIs, …)
  • 57. The 2 things we didn’t succeed in changing in the last 30 years -57- © 2017 Pactify Software. All rights reserved. The things that continuously drove change in businesses, over the last 30 years • The internet The way we manage work (& specifically change): 1.We invent and decide the change at the top 2.We makes clear rules for work& people, to control execution •Non-flexible rules •A set of rules for everything people do - often conflicting across groups of people (departments) •Rules giving increasing power/ freedom twds the top • Business process re-engineering, ERP/ CRM systems • E-commerce, mobile technology, digitalization, IOT, robotics • Laptops, email • Office software (spreadsheets, …) • Open source software • Globalisation • Social media • Six sigma, Lean, Agile • Online cooperation tools • … • … • … However, we didn’t succeed in changing/ improving these 2 things: Our success rate in change •Over the last 30 years, a constant, poor, success rate of 30% across all change programs This may be linked?! • …
  • 58. Despite all the technological/ business innovations in the last 30 years … • Software development (email, ERP/ CRM, open source, …), the internet, mobile technology, e- commerce, digitalisation, … • Business process re-engineering, lean/ agile methodologies, … … we didn’t really advance on the art/ science of “organising work”: • It has always been around “making rules” (on who should do/ decide what), to get work done (as effectively as possible) Yet it is probably time to innovate there as well, because these rules have 3 big flaws: 1.They always increase the power vertically to the top, leading to: – A growing bottleneck at the top when work gets complex (as it does!) – Growing disengagement below as you implicitly signal them: “you are not here to think, the top does that for you” (signal is intense: in all aspects of how you work, every day in and out) 2.We try to make a rule for every situation in every different entity, leading to: – Complexity inside – Conflicting rules across entities, not promoting behavior that is best for the entire organization – De-motivation to “think& solve situations” yourself … so you don’t need a rule to do that for you 3.They assume that people are 100% rational and 100% incentive driven, 100% of the time -58- © 2017 Pactify Software. All rights reserved. We’ve seen plenty of change in business, except in 1 key area …
  • 59. “Flow” = the ONLY path from your comfort zone to “the magic” -59-© 2017 Pactify Software. All rights reserved. Perceived skill Perceived difficulty Your comfort zone Where the real magic happens! Your day- to-day job BOREDOM ZONE FRUSTRATION ZONE Take the time to start to think, about possible ways that could get you to the goal Ask different people’s thoughts, multiple times Come up with first, concrete idea’s& logic Try something/evaluate how it went/ go on Making it even more difficult when you focus on (i) own excuses, complaints, confusion, … & (ii) your boss’ reminders (as nothing moves) ? A new goal to achieve, ordered by your boss ! Goal presented as invitation to solve something, plus autonomy given to find yourself how you can get into action
  • 60. Any manager needs to re-invent his/ her organisation when … -60- © 2017 Pactify Software. All rights reserved. The behaviour you want (i.e. the one you expect as a result of your decisions, rules, structures, systems, processes …) The behaviour you “get” I.e. the real drive, focus, goal orientation, rigor, compliance … “in the (heat of the) action” 1) … there is a growing gap between: (or thinks it can only be closed by even more decisions, rules, structures, …) 2) … he/ she cannot really explain this gap any more
  • 61. How every goal can lead to focused cooperation -61- © 2017 Pactify Software. All rights reserved Individual / Co-create the goal together • Solve a shared problem so that shared solution becomes your goal OR: Define the goal together • 1 pen per team member to get to 1 definition of what you aim for • The richer, the better the inside feedback for the team Document/ Justify/ Decide launch For every step of progress: 1. Cut higher goal up into tracks (milestones ) 2. Imagine every single track (milestone) to run together • Write a sharp, rich track plan - Where to get to next and how: in milestones& actions - Transparent how everyone contributes - The richer, the better the inside feedback for the team 3. Run the track (actually do/ decide) 4. Evaluate each track • Describe sharply how track plan turned out • Re-formulate how milestones& actions actually turned out - The richer, the better the inside feedback for the team 5. Go back to 2. for the next track (milestone) The initiative goal Today Today Where we aim to be (milestone) How& by whom we want to get there (actions) How we actually did it (done actions) Where we actually ended up (milestone) 2 4 1 2 3 4 5 Team
  • 62. -62- © 2017 Pactify Software. All rights reserved. Goals With their rationale, business case … Governance The right man in the right place The roles, responsibilities, rules, .. & New school thinking: Old school thinking (invented 30+ (!) years ago): … and then “things will get done” Doesn’t work anymore when work gets complex! Goals Through cooperative problem solving, not only top down Governance BUT with minimum of autonomy NOT describing every possible situation& its impact on who decides what. & & Direct transparency on HOW progress is made So we think more together, learn and get better, continuously. All we need is: What we really need is:
  • 63. -63- © 2017 Pactify Software. All rights reserved. “… please do what I tell you to do” The only way to coach for real engagement and performance: “Dear employee, …” 1 “… look and see how I do it”2 “… it should really come from you !”3 1) Doesn’t work and 2) & 3) are in essence a variation on 1) “… I give you the time and support so I can hear from you how you would do it” 4 The only credible way of making your employees experience that the bottom-up part is REAL (as you go beyond only convincing them: you actually let them DO it, which is much harder for them to downplay as “top down in disguise”)
  • 64. Regardless of governance, rules, policies, roles, … there are 3 essential things to focus on for more engagement and cooperation: -64- © 2017 Pactify Software. All rights reserved. The goals The progress The individual contributions (to progress) 1 2 3 • Are they clear ? • Do we cover everything we want to achieve with them? • Would team members/ stakeholders all formulate them in the same way ? • Can everyone consult them at any time? • Are they still relevant (at any point in time) ? The key questions that determine the team/ group behaviour • Is it clear, can it be consulted by anyone involved? • Is it written from within the team or from the outside (from a distance)? • Does it accurately reflect how the team is doing? • Does it serve as a powerful confirmation/ confrontation to the team? • Does it drive the team motivation? • Is transparent how everyone adds (or avoids to add) to progress? • Is it authentic? I.e. the real contributions and how they took place? • Was the contribution made using own autonomy or was it controlled? • How confident are people to become transparent on them? • How does this transparency fuel individual motivation to cooperate?
  • 65. Does everyone on your team recognise these 3 principles for Flow, at any time ? -65- © 2017 Pactify Software. All rights reserved. “OUR GOALS are clear and shared” “We experience OUR PROGRESS: we see clearly that we get closer to the goals” “I experience that MY CONTRIBUTIONS really add to that progress” 1 2 3
  • 66. A common statement of teams: -66- © 2017 Pactify Software. All rights reserved. Know each other well (our hobbies, etc.) Be nice to each other Know what the others do on the project Usual definition of “working well together” A more profound way of cooperating Help others, so they get better at what they do Sacrifice individual goals to “take one for the team” 1 language/1 voice/ 1 truth for their goals& progress • Same, sharp version when asked separately • Real-time transparency on goals, progress& how everyone contributes to progress “Yes yes we work really well together!” … but what do they really mean ?
  • 67. Why “push down the thinking” in your organisation ? •Thinking is the only good way to start any engaged, goal focused ACTION – At least when given a minimum of time and autonomy to do so •Given the increasing complexity of business … – … more and more of the key answers lie somewhere down into the organisation – … it’s REALLY no option to face that complexity with a group that doesn’t have the habit to think! -67- © 2017 Pactify Software. All rights reserved.
  • 68. It’s NOT true that “top down doesn’t work”. BUT, when people collectively perceive that “everything is top-down here” … … then, and only then, it’s true that it will not work. As a leader, it’s key to authentically convince that there is always a (growing!) share of the work that cannot, should not, and never will be top-down … -68- © 2017 Pactify Software. All rights reserved.
  • 69. Learn while doing implies change “from the inside of the teams”, different from traditional change where you “work around them” -69- © 2017 Pactify Software. All rights reserved. “Force change from the outside”: Hope for change by influencing from the “periphery” (Indirect, lot of effort and risk, unclear payoff) “Learn while doing, but with outside help”: Lay the momentum (“physically”) in the group (Directly from within the action of teams) Governance processes The people/ teams & their real goals & actions Leadership Communication Productivity tools Team building events Consultants Top down decisions Vision Culture Workplace The “pen & floor” within the teams • Transparent • Around goals & actions • With guidance and help The people/ teams & their real goals & actions The people/ teams & their real goals & actions