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The challenge of transformation 
© 2013 Pactify Software. All rights reserved.
Objective of this presentation 
•Share ideas, tips and guidelines on how to increase chances of success in transformation programs 
–The “hardware” side 
–The “software” side (but research based !) 
•And (hopefully) … give you an even bigger appetite to get to work 
-2- 
© 2013 Pactify Software. All rights reserved.
-3- 
© 2013 Pactify Software. All rights reserved. 
We have the odds against us …
Two angles to approach change/ transformation management 
• Vision and mission for change 
• Analyses, hypotheses to define change projects 
• Design of a change “program” (projects, plans, 
targets, teams, …) 
• Tracking& steering process for implementation 
• … 
-4- 
© 2013 Pactify Software. All rights reserved. 
“hardware” : logic, structure, process “software” : behavior, motivation, ... 
AS IS TO BE 
Change 
progress 
tracking 
1 2
Key elements of successful transformation programs 
1.Create 1 embedded platform to execute change 
2.Make goal based plans 
3. Flexibly re-forecast outcome along the way to 
allow timely and effective steering 
-5- 
© 2013 Pactify Software. All rights reserved. 
The “hardware” : logic, structure, process The “software” : behavior, motivation, ... 
1.As an individual, seek for intrinsic motivation 
in the challenge to get into “Flow” 
2. As a team, keep each other in “Flow” 
3.Optional : “Pactify” your project to enter a 
game-like challenge to help you achieve 1) and 
2) 
Change 
progress 
tracking 
AS IS TO BE
1. Establish an embedded platform to execute change 
-6- 
© 2013 Pactify Software. All rights reserved. 
1 platform 
Always there 
Enabling co-operation 
Progress 
& 
Forecast 
Project data 
•Objectives 
•Approach 
Milestones 
•Initial date 
•Forecast date 
•Status 
Actions 
•Initial date 
•Forecast date 
•Status 
Why? 
–Everyone, at any place can make a contribution 
•We cannot switch on and off the program 
–Progress & forecast is available in real-time (steering) 
–1 platform instead of different emails, meetings, … 
•Your program cannot exist only in emails/ meetings 
“Hardware”
2. Make goal based plans 
-7- 
© 2013 Pactify Software. All rights reserved. 
Two types of goals for projects 
•Stages : documented, justified, decided, implemented 
•Specific project milestones : specific interim results/ deliverables 
Goals are not actions 
•Goals = a result (e.g. not : hold a meeting with all GMs … but : reach a consensus decision with all GMs …) 
•Action = what needs to be done to get to the result (tasks, activities) 
Why goal based plans ? 
•If your mind is focused on a result … 
–It’s easier to define and plan the actions needed to get to it 
–You are more focused during the execution, look more ahead and foresee things better in advance 
“Hardware”
3. Flexibly re-forecast the outcome along the way to allow for timely and effective steering 
•Most project plans exist in only 1 version (the first one …) 
•While most plans are already off quite quickly 
•To help you cope with plans that don’t hold true entirely anymore : re-forecast your project plan (very frequently) 
–Plan additional actions to still make original planned milestones 
–Change course if needed (new milestones planned) 
•Re-forecasting frequently keeps you and your team alert on how to cope with uncertainties well in advance, 
–And flexibly plan alternative approaches while keeping the overall project objective in mind 
-8- 
© 2013 Pactify Software. All rights reserved. 
“Hardware”
Motivation, 2 kinds : intrinsic versus extrinsic 
•Comes from the outside 
•Carrot (reward) / Stick (avoid punishment) 
-9- 
© 2013 Pactify Software. All rights reserved. 
Extrinsic 
Intrinsic 
•Comes from the inside, you are motivated because you enjoy what you are doing 
“Software”
What type of motivation do we need for The Road Ahead ? (I/III) 
-10- 
© 2013 Pactify Software. All rights reserved. 
How to fix a lit candle on a wall in a way so the candle wax won't drip onto the table below ? 
“Software”
What type of motivation do we need for The Road Ahead ? (II/III) 
-11- 
© 2013 Pactify Software. All rights reserved. 
“Software” 
Test group with a reward underperform vs group without reward 
Rewards narrow our thinking ability, they are not good motivators for complex tasks that require thinking and creativity. 
Rewards mostly lead to worse performance for these type of tasks
What type of motivation do we need for The Road Ahead ? (III/III) 
-12- 
© 2013 Pactify Software. All rights reserved. 
In this setting, test group with a reward outperform vs group without reward 
Extrinsic rewards are good motivators for fairly standard, straightforward tasks 
“Software”
Monkeys [Video]
Intrinsic motivation is essential for complex, non trivial challenges (like your transformation program) 
•You transformation program = X candle problems 
–Lots of constraints at the start (resources, time, perceived complexity& feasibility, …) 
–Plenty of bad solutions, only 1 or a few elegant solutions (efficient/ effective – win/win / … 
–Frustration if the solution doesn’t come, proudness when you get it 
•You motivation has to come from the challenge itself, not from the outside 
–You have to grab the problem and find it interesting, explore it, dive into it … 
-14- 
© 2013 Pactify Software. All rights reserved. 
Only intrinsic engagement, interest will drive finding solutions (rewards/ punishments : the complete reverse!) Two main reasons why it’s imperative to find intrinsic motivation: 
•For company : the challenge will not be solved (we’ll be part of the 70%) 
•For you as an individual : choice between 12 months of engagement, fun, proudness instead of 12 months of frustration or boredom (making you want to change even less) 
“Software”
“BORED” 
How to find intrinsic motivation ? It happens when we are in “flow” 
•For unforced activities, intrinsic motivation occurs when we are in “FLOW” 
•Prof. Mihaly Csikszentmihalyi defined “flow” as “completely focused motivation”. A state in which we are fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process of the activity 
-15- 
© 2013 Pactify Software. All rights reserved. 
“How good are you at it ?” 
Perceived skill level 
“How difficult is it?” Perceived challenge 
“FRUSTRATED” 
“Software” 
Characteristics of FLOW ? 
•You are completely “into” the activity 
•No notion of time, highly concentrated 
•Experience happiness “IN” the activity 
•Very effective for new skill building 
What is required ? 
•Clear goals every step of the way 
•Immediate feedback on one’s actions 
•Understand balance between skill/ challenge for all tasks 
•Concentration 
•No fear of failure (focus on the task) 
10-12% 
“How are you feeling?”
How can you get back into flow / avoid going out of flow ? 
1) Getting activities into flow 
-16- 
© 2013 Pactify Software. All rights reserved. 
Perceived skill level 
Perceived challenge 
Perceived skill level 
2) How to avoid going out of flow ? 
Perceived challenge 
BOREDOM 
Natural tendency 
•Break down in more simpler – but still meaningful – achievable steps 
-Enjoy first step to go to next one easier 
-E.g. spend 5 good minutes to write good project description … instead of worrying about complexity and potential failure … 
•Build self-confidence (lower perception of challenge) 
•Ask for help, team-up to improve skills 
•Keep increasing the challenge level with the progress 
-Do it already in the plan, not only when you discover boredom occurring 
•As a team, trigger each other to prevent other from going into boredom 
FRUSTRATION 
“Software” 
Perceived skill level 
Perceived skill level
How do you keep the whole team in flow in a complex “candle” project ? -> Group flow (the holy grail actually) 
-17- 
© 2013 Pactify Software. All rights reserved. 
“Software” 
Perceived skill level 
Perceived complexity 
level 
BOREDOM 
FRUSTRATION 
GROUP FLOW 
Project stages 
Project milestone 
Actions / decisions 
Team member 1 
Team member 2 
Team member 3 
Team member 1 
All 
Team member 3 
Team member 3 
All 
Team member 1 
All 
? 
?
“Group flow” characteristics 
•Studies show : 
–More difficult to obtain than individual flow 
–BUT more enjoyable than individual flow (!) 
•Csíkszentmihályi suggests several ways a group can work together so that each individual member achieves flow: 
–Creative spatial arrangements: Chairs, pin walls, charts, but no tables; thus work primarily standing and moving 
–Playground design: Charts for information inputs, flow graphs, project summary, craziness (here also craziness has a place), safe place (here all may say what is otherwise only thought), result wall, open topics 
–Increase in efficiency through visualization 
–Using differences among participants as an opportunity, rather than an obstacle 
•Example scientific study on flow in Basketball (Dubin), flow increases significantly with 
1.Winning 
2.Team chemistry 
3.# of passes given 
-18- 
© 2013 Pactify Software. All rights reserved. 
“Software”
You can apply all of this by “Pactifying” your project 
•If you and your team have made a project plan with : 
1.Enough and specific milestones to achieve your project goal 
2.Every planned milestone (or action) is balancing skill and complexity for its owner (flow) 
•… and you believe in achieving this plan … you have the option to express this in the system by “Pactifying” your project 
•This means you enter a game (in parallel with your execution) that: 
–Give you points (Pact Value) everytime you realise an action or milestone 
–Compares your points with a target : the points you would get if you follow initial plan exactly 
•Why ? It will allow intrinsic motivation from your project 
–Games are one of the most effective means to stick to something (get into the project …) and to progress (increase skills versus complexity) 
–The game involves the key criteria to stay in flow: 
•Clear goals every step of the way (your actions/ milestones) 
•Immediate feedback on actions and milestones 
•Having fun, being proud of your progress 
-19- 
© 2013 Pactify Software. All rights reserved. 
“Software”
Make a project plan within flow, Pactify the plan and use your daily “Pact Value” as feedback to stay in flow 
-20- 
© 2013 Pactify Software. All rights reserved. 
Skill level 
Complexity 
level 
BOREDOM 
FRUSTRATION 
PACT / FLOW 
Project stages 
Project milestone 
Actions / decisions 
“Software” 
Team member 1 
Team member 2 
Team member 3 
Team member 1 
All 
Team member 3 
Team member 3 
All 
Team member 1 
All 
Pact force 
Pact force
Pact Value : actual – forecast and target / bring the 2 flags together ! 
-21- 
© 2013 Pactify Software. All rights reserved. 
“Software”
Some conclusions (… or even paradoxes) 
1.If you do tasks because your boss wants it, because you fear to lose your job, … or you want to please him/ her, we will fail 
–Not the right mindset to tackle your candle problem 
1.“I didn’t have time to do it" is an incorrect statement, correct is : “I am frustrated (or bored)” 
–Because of you were in Flow, time is irrelevant 
–Saying that you are frustrated is much more actionable than saying you didn’t have time 
2.It is worse to “not ask for help” than not to perform 
‒"Blame is not for failure, it is for failing to help or ask for help.“ (CEO LEGO) 
3.You have to do all of this to do yourself a favor in the first place 
–And it’s deciding between 12+ months of engagement and proudness versus frustration or boredom 
4.Flow / intrinsic motivation not a fancy, high level concept … it’s manageable and it can be every “next 5 minutes” 
–Every moment is an opportunity to get into intrinsic motivation or to help someone else get into it 
-22- 
© 2013 Pactify Software. All rights reserved.
Some wishes at the start of implementation 
•That your specific candle problem(s) may provide you with as much flow as possible 
–If so, you’ll develop new skills much more easily, be more proud and have more fun 
•That you have a high intolerance against boredom and frustration 
–First trigger to get up and change how you look at tackling your challenges 
•Team courage to bring this theory into practice by Pactifying your projects 
-23- 
© 2013 Pactify Software. All rights reserved.
Three must-watch TED talks 
•Daniel Pink – The puzzle of motivation 
–http://www.ted.com/talks/dan_pink_on_motivation 
•Mihaly Csikszentmichalyi – Flow, the secret to happiness 
–http://www.ted.com/talks/mihaly_csikszentmihalyi_on_flow 
•Yves Morieux - As work gets more complex, 6 rules to simplify 
–http://www.ted.com/talks/yves_morieux_as_work_gets_more_complex_6_rules_to_simplify 
-24- 
© 2013 Pactify Software. All rights reserved.

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The challenge of transformation

  • 1. The challenge of transformation © 2013 Pactify Software. All rights reserved.
  • 2. Objective of this presentation •Share ideas, tips and guidelines on how to increase chances of success in transformation programs –The “hardware” side –The “software” side (but research based !) •And (hopefully) … give you an even bigger appetite to get to work -2- © 2013 Pactify Software. All rights reserved.
  • 3. -3- © 2013 Pactify Software. All rights reserved. We have the odds against us …
  • 4. Two angles to approach change/ transformation management • Vision and mission for change • Analyses, hypotheses to define change projects • Design of a change “program” (projects, plans, targets, teams, …) • Tracking& steering process for implementation • … -4- © 2013 Pactify Software. All rights reserved. “hardware” : logic, structure, process “software” : behavior, motivation, ... AS IS TO BE Change progress tracking 1 2
  • 5. Key elements of successful transformation programs 1.Create 1 embedded platform to execute change 2.Make goal based plans 3. Flexibly re-forecast outcome along the way to allow timely and effective steering -5- © 2013 Pactify Software. All rights reserved. The “hardware” : logic, structure, process The “software” : behavior, motivation, ... 1.As an individual, seek for intrinsic motivation in the challenge to get into “Flow” 2. As a team, keep each other in “Flow” 3.Optional : “Pactify” your project to enter a game-like challenge to help you achieve 1) and 2) Change progress tracking AS IS TO BE
  • 6. 1. Establish an embedded platform to execute change -6- © 2013 Pactify Software. All rights reserved. 1 platform Always there Enabling co-operation Progress & Forecast Project data •Objectives •Approach Milestones •Initial date •Forecast date •Status Actions •Initial date •Forecast date •Status Why? –Everyone, at any place can make a contribution •We cannot switch on and off the program –Progress & forecast is available in real-time (steering) –1 platform instead of different emails, meetings, … •Your program cannot exist only in emails/ meetings “Hardware”
  • 7. 2. Make goal based plans -7- © 2013 Pactify Software. All rights reserved. Two types of goals for projects •Stages : documented, justified, decided, implemented •Specific project milestones : specific interim results/ deliverables Goals are not actions •Goals = a result (e.g. not : hold a meeting with all GMs … but : reach a consensus decision with all GMs …) •Action = what needs to be done to get to the result (tasks, activities) Why goal based plans ? •If your mind is focused on a result … –It’s easier to define and plan the actions needed to get to it –You are more focused during the execution, look more ahead and foresee things better in advance “Hardware”
  • 8. 3. Flexibly re-forecast the outcome along the way to allow for timely and effective steering •Most project plans exist in only 1 version (the first one …) •While most plans are already off quite quickly •To help you cope with plans that don’t hold true entirely anymore : re-forecast your project plan (very frequently) –Plan additional actions to still make original planned milestones –Change course if needed (new milestones planned) •Re-forecasting frequently keeps you and your team alert on how to cope with uncertainties well in advance, –And flexibly plan alternative approaches while keeping the overall project objective in mind -8- © 2013 Pactify Software. All rights reserved. “Hardware”
  • 9. Motivation, 2 kinds : intrinsic versus extrinsic •Comes from the outside •Carrot (reward) / Stick (avoid punishment) -9- © 2013 Pactify Software. All rights reserved. Extrinsic Intrinsic •Comes from the inside, you are motivated because you enjoy what you are doing “Software”
  • 10. What type of motivation do we need for The Road Ahead ? (I/III) -10- © 2013 Pactify Software. All rights reserved. How to fix a lit candle on a wall in a way so the candle wax won't drip onto the table below ? “Software”
  • 11. What type of motivation do we need for The Road Ahead ? (II/III) -11- © 2013 Pactify Software. All rights reserved. “Software” Test group with a reward underperform vs group without reward Rewards narrow our thinking ability, they are not good motivators for complex tasks that require thinking and creativity. Rewards mostly lead to worse performance for these type of tasks
  • 12. What type of motivation do we need for The Road Ahead ? (III/III) -12- © 2013 Pactify Software. All rights reserved. In this setting, test group with a reward outperform vs group without reward Extrinsic rewards are good motivators for fairly standard, straightforward tasks “Software”
  • 14. Intrinsic motivation is essential for complex, non trivial challenges (like your transformation program) •You transformation program = X candle problems –Lots of constraints at the start (resources, time, perceived complexity& feasibility, …) –Plenty of bad solutions, only 1 or a few elegant solutions (efficient/ effective – win/win / … –Frustration if the solution doesn’t come, proudness when you get it •You motivation has to come from the challenge itself, not from the outside –You have to grab the problem and find it interesting, explore it, dive into it … -14- © 2013 Pactify Software. All rights reserved. Only intrinsic engagement, interest will drive finding solutions (rewards/ punishments : the complete reverse!) Two main reasons why it’s imperative to find intrinsic motivation: •For company : the challenge will not be solved (we’ll be part of the 70%) •For you as an individual : choice between 12 months of engagement, fun, proudness instead of 12 months of frustration or boredom (making you want to change even less) “Software”
  • 15. “BORED” How to find intrinsic motivation ? It happens when we are in “flow” •For unforced activities, intrinsic motivation occurs when we are in “FLOW” •Prof. Mihaly Csikszentmihalyi defined “flow” as “completely focused motivation”. A state in which we are fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process of the activity -15- © 2013 Pactify Software. All rights reserved. “How good are you at it ?” Perceived skill level “How difficult is it?” Perceived challenge “FRUSTRATED” “Software” Characteristics of FLOW ? •You are completely “into” the activity •No notion of time, highly concentrated •Experience happiness “IN” the activity •Very effective for new skill building What is required ? •Clear goals every step of the way •Immediate feedback on one’s actions •Understand balance between skill/ challenge for all tasks •Concentration •No fear of failure (focus on the task) 10-12% “How are you feeling?”
  • 16. How can you get back into flow / avoid going out of flow ? 1) Getting activities into flow -16- © 2013 Pactify Software. All rights reserved. Perceived skill level Perceived challenge Perceived skill level 2) How to avoid going out of flow ? Perceived challenge BOREDOM Natural tendency •Break down in more simpler – but still meaningful – achievable steps -Enjoy first step to go to next one easier -E.g. spend 5 good minutes to write good project description … instead of worrying about complexity and potential failure … •Build self-confidence (lower perception of challenge) •Ask for help, team-up to improve skills •Keep increasing the challenge level with the progress -Do it already in the plan, not only when you discover boredom occurring •As a team, trigger each other to prevent other from going into boredom FRUSTRATION “Software” Perceived skill level Perceived skill level
  • 17. How do you keep the whole team in flow in a complex “candle” project ? -> Group flow (the holy grail actually) -17- © 2013 Pactify Software. All rights reserved. “Software” Perceived skill level Perceived complexity level BOREDOM FRUSTRATION GROUP FLOW Project stages Project milestone Actions / decisions Team member 1 Team member 2 Team member 3 Team member 1 All Team member 3 Team member 3 All Team member 1 All ? ?
  • 18. “Group flow” characteristics •Studies show : –More difficult to obtain than individual flow –BUT more enjoyable than individual flow (!) •Csíkszentmihályi suggests several ways a group can work together so that each individual member achieves flow: –Creative spatial arrangements: Chairs, pin walls, charts, but no tables; thus work primarily standing and moving –Playground design: Charts for information inputs, flow graphs, project summary, craziness (here also craziness has a place), safe place (here all may say what is otherwise only thought), result wall, open topics –Increase in efficiency through visualization –Using differences among participants as an opportunity, rather than an obstacle •Example scientific study on flow in Basketball (Dubin), flow increases significantly with 1.Winning 2.Team chemistry 3.# of passes given -18- © 2013 Pactify Software. All rights reserved. “Software”
  • 19. You can apply all of this by “Pactifying” your project •If you and your team have made a project plan with : 1.Enough and specific milestones to achieve your project goal 2.Every planned milestone (or action) is balancing skill and complexity for its owner (flow) •… and you believe in achieving this plan … you have the option to express this in the system by “Pactifying” your project •This means you enter a game (in parallel with your execution) that: –Give you points (Pact Value) everytime you realise an action or milestone –Compares your points with a target : the points you would get if you follow initial plan exactly •Why ? It will allow intrinsic motivation from your project –Games are one of the most effective means to stick to something (get into the project …) and to progress (increase skills versus complexity) –The game involves the key criteria to stay in flow: •Clear goals every step of the way (your actions/ milestones) •Immediate feedback on actions and milestones •Having fun, being proud of your progress -19- © 2013 Pactify Software. All rights reserved. “Software”
  • 20. Make a project plan within flow, Pactify the plan and use your daily “Pact Value” as feedback to stay in flow -20- © 2013 Pactify Software. All rights reserved. Skill level Complexity level BOREDOM FRUSTRATION PACT / FLOW Project stages Project milestone Actions / decisions “Software” Team member 1 Team member 2 Team member 3 Team member 1 All Team member 3 Team member 3 All Team member 1 All Pact force Pact force
  • 21. Pact Value : actual – forecast and target / bring the 2 flags together ! -21- © 2013 Pactify Software. All rights reserved. “Software”
  • 22. Some conclusions (… or even paradoxes) 1.If you do tasks because your boss wants it, because you fear to lose your job, … or you want to please him/ her, we will fail –Not the right mindset to tackle your candle problem 1.“I didn’t have time to do it" is an incorrect statement, correct is : “I am frustrated (or bored)” –Because of you were in Flow, time is irrelevant –Saying that you are frustrated is much more actionable than saying you didn’t have time 2.It is worse to “not ask for help” than not to perform ‒"Blame is not for failure, it is for failing to help or ask for help.“ (CEO LEGO) 3.You have to do all of this to do yourself a favor in the first place –And it’s deciding between 12+ months of engagement and proudness versus frustration or boredom 4.Flow / intrinsic motivation not a fancy, high level concept … it’s manageable and it can be every “next 5 minutes” –Every moment is an opportunity to get into intrinsic motivation or to help someone else get into it -22- © 2013 Pactify Software. All rights reserved.
  • 23. Some wishes at the start of implementation •That your specific candle problem(s) may provide you with as much flow as possible –If so, you’ll develop new skills much more easily, be more proud and have more fun •That you have a high intolerance against boredom and frustration –First trigger to get up and change how you look at tackling your challenges •Team courage to bring this theory into practice by Pactifying your projects -23- © 2013 Pactify Software. All rights reserved.
  • 24. Three must-watch TED talks •Daniel Pink – The puzzle of motivation –http://www.ted.com/talks/dan_pink_on_motivation •Mihaly Csikszentmichalyi – Flow, the secret to happiness –http://www.ted.com/talks/mihaly_csikszentmihalyi_on_flow •Yves Morieux - As work gets more complex, 6 rules to simplify –http://www.ted.com/talks/yves_morieux_as_work_gets_more_complex_6_rules_to_simplify -24- © 2013 Pactify Software. All rights reserved.