Rethinking Organizational Transformation (part 1)

# Rethinking Organizational Transformation: A Complexity Science Approach Welcome to *Rethinking Organizational Transformation*, a serialized article exploring complex change in organizations. This is the first section of the journey, where I delve into the intricacies of transforming organizations in today's fast-paced environment. At the conclusion of this series, the entire article will be made available for a comprehensive read. This article is part of Randall Benson's Digital Garden, _ChangeQuest_, where we explore insights, strategies, and best practices for navigating complex change in organizations. Let’s dive into today’s topic. ## A Powerful Approach to a Complex Problem ![[DALL·E 2024-09-17 16.19.59 - A visual metaphor for complex change_ an intricate puzzle being assembled in mid-air. The pieces of the puzzle are varied in shape and size, with some.webp | 600]] Instead of starting with facts and frameworks, I want to begin with a story about a hospital emergency department in a major city. I’ve changed the identifying details to protect the hospital and its staff, but I hope this story will put a human face on the concept of complex organizational change. ## From Crisis to Breakthrough: The ED That Transformed Patient Care (part 1) On an unremarkable morning, Sarah, a normally vivacious 14-year-old, reported feeling ill, a complaint that seemed minor until it took a dire turn. Cathy, her mother, watched with increasing alarm as Sarah's discomfort grew into undeniable agony. Cathy decided to rush Sarah to the hospital emergency room, only to be met with a cold and unwelcoming scene. The harsh winter air outside the hospital did little to prepare Cathy for the chaos that lay within. The emergency room was besieged by suffering people, including people waiting outside in the harsh winter cold. Forced to leave Sarah at the entrance due to a lack of parking, Cathy's heart sank as she maneuvered through the crowded lot, her mind racing with worry. ![[DALL·E 2024-10-16 14.00.49 - A photorealistic exterior close-up image of the doors of an urban hospital emergency department during winter. The ground is icy and snowy, with an ov copy.png | 400]] Upon reuniting, they faced the overwhelming crush of the waiting area, a battlefield of sick and injured people. Their fight to reach the reception was met by a non-clinical receptionist, though not uncaring, was simply a gatekeeper to the care Sarah desperately needed. While promised help as soon as possible, the reality of their situation was that Sarah was just one more face in a sea of need. As the hours drew on, Sarah's vitality waned under the sterile lights of the overcrowded and dirty waiting room. Cathy, gripped by fear, found herself in a relentless vigil by her daughter's side. Despite her efforts to comfort Sarah, the grim reality of her situation became increasingly hard to ignore. Sara was getting worse and she was not receiving the care she needed. The continuous influx of new patients only served to deepen the sense of despair that pervaded the waiting room. In the end, Sarah's quiet struggle came to a heartbreaking conclusion. In the impersonal congestion of the emergency room, she slipped away, her life ending before she could receive the care that might have saved her. Cathy, left to grapple with an immeasurable loss, was stricken with grief—a grief that was echoed in the faces of the hospital staff who had become all too familiar with such tragedies. This story, recounted to me on my initial day as a management consultant to the ER, was a sad reminder of the profound failures within our system of emergency care. The staff, weighed down by the burden of preventable losses, were in despair. Sarah's story, though unique in its details, was not an isolated incident. It was tragic confirmation of a deep problem. The urgent need to transform their ER was clear, and the heartbreaking memory of Sarah underscored the critical importance of transforming the ER at once. Read on to discover how this story became a powerful demonstration of unleashing complex change to create breakthrough transformation. %%[[Digital Garden Lead In (rev E-1)#The ED That Changed Medicine: A Healthcare Transformation Story (part 5)]]%% --- ## Welcome to My Digital Garden About Transformation and Complex Change ![[DALL·E 2024-09-19 14.39.32 - A detailed and serene digital garden that combines nature with advanced technology. The scene features a lush grassy area dotted with glowing flowers .webp | 400]] This article is part of my digital garden, my personal website. A digital garden operates somewhat like a public notebook or a personal wiki. It's characterized by its non-linear structure, ongoing changes, and (hopefully) the growth of ideas over time. My digital garden explores the connections between organizational transformation, complex change, and the quest to achieve the change. As with all digital gardens, it's a work in process. This article is a bit different in that it's intended as the backbone article for my digital garden. I hope it conveys a summary of the most important ideas led me to create my digital garden. I invite you to read and interact with this and other articles in the garden. >[!Important] >This digital garden explores the ongoing journey of organizational transformation and complex change. It is, and always will be, a work in progress. > --- ## Transformation: Not What You Think! ![[DALL·E 2024-10-16 15.14.11 - A realistic visual metaphor for organizational transformation frequently being misunderstood. The scene features men and women working on a large, inc.webp | 400]] >[!Success] Big Idea >Transformation is not just a difference of degree, it's a fundamental difference of kind. Here’s a refined version of the paragraph to enhance clarity and flow: This article stems from my decades of experience in management consulting, specifically in organizational change. Among the different types of change, transformation stands out as the most challenging. When I speak of transformation, I’m referring to deep, fundamental shifts that organizations undergo. This isn’t about incremental improvements; it’s about making significant, systemic changes that mark a clear break from the past. Transformation is not part of the everyday, normal change. It differs not only in scope and scale but, more critically, in its nature. It’s not just a more complicated version of change, where all the pieces of the puzzle need to fit. Transformation is a fundamentally different kind of change, characterized by its complexity rather than its complication. > [! Info ] The traditional thinking about organizational transformation. > | Topic | Traditional Thinking | > | -------------- | -------------- | > | Complexity | Transformational change is complex and challenging. It requires substantial time, resources and commitment to achieve the desired outcomes. | > | Impact | Transformational change impacts the entire organization at a fundamental level. It's not confined to a single department, process, or function. | >| Strategic Redirection | Transformation is about redefining the purpose and direction of the organization. | >| Culture Change | A hallmark of transformational change is a profound shift in organizational culture.| >|Vision|Transformations are often driven by strong leadership with a clear vision for the future of the organization.| >|Disruption|Transformation involves a level of disruption to existing ways of working.| >|Innovation|Transformation is not continuous improvement, but is often based on innovative leaps and breakthroughs.| >|Long-term Focus|Transformation aims for long-term changes rather that short-term improvements.| >|Visibility|Transformations can often been seen and felt by a broad range of people including employees at all levels, customers, partners, funding sources, and possibly even regulators.| This traditional perspective creates an unstable foundation, making organizational transformation extremely risky. Before exploring a different approach to transformation, it’s important to first examine the nature of this risk. --- ## Why Is Transformation So Perilous? ![[DALL·E 2024-09-19 14.58.37 - A person successfully navigating a perilous crossing over a rickety bridge suspended high above a deep canyon. The bridge sways with the wind, its pla.webp | 400]] We've been told that transformation, in spite of its fundamental differences, is amenable to traditional (normal) change-management approaches. If this were true, then we could expect the outcomes of transformation initiatives to be similar to those of normal change efforts. However, the failure rate for transformation is much higher than for normal change. McKinsey estimates that 70% of transformation efforts fail to achieve their goals [reference]. Others sources essentially concur. As a result, the risk of transformation is extreme and the consequences are arrested organizational development. >[!Danger] Hazard! >70% of transformation efforts fail. - McKenzie & Company It's should not be surprising that many leaders report their biggest worry, the one that keeps them up at night, is that their transformation will fail. They have good reason to worry, given the very real probability of failure. Considering the risk, leaders may find it hard to support a transformation initiative, even when it seems necessary. So, what have we been told by experts about reducing the risk of failure? Let's explore this question in the next installment. --- ## From Crisis to Breakthrough: The ED That Transformed Patient Care (continued) The ED staff felt strongly that Sarah's tragic death could not be the end of her story. Her loss had to carry a deeper meaning. In response, the team, led by their director, made a firm commitment to transform their department, ensuring that such a tragedy would never happen again. Unfortunately, their initial efforts were plagued by challenges and disappointment. #### Struggling to Transform: A History of Setbacks Shortly after visiting the ER, I learned about the hospital's efforts to transform in the wake of Sarah's death. Connie, the director, had contracted with three highly-regarded consulting firms at different times, seeking expert guidance to reduce ER overcrowding, improve responsiveness, and prevent another tragedy like Sarah's. ![[DALL·E 2024-10-18 14.37.14 - A consulting report titled 'ER Improvement Plan,' bound with a 3-ring binder, lying flat on a desk. The report has a smaller red 'FAILED' stamp across.webp | 400]] When I first met Connie, the ER director, she was polite but not optimistic. Referred to her by executive management, I wasn’t her choice. When I expressed my interest in helping transform the ER, her response was essentially, "Good luck!" Seeing my surprise, she quickly added, "It's not you, but we've already had three consulting firms look at our ER, and yet nothing much has changed." Connie shared that the previous consultants made reasonable and well-informed recommendations. However, implementing those recommendations brought very little improvement. The ER still faced the same severe problems. If the experts couldn't help, she wondered who could. Connie questioned how I thought I could succeed where others had failed. I couldn't give her a definitive answer. However, I asked to borrow the previous consulting reports to review over the weekend. I promised to do my best to address her question the following Monday. If I couldn't help, I would inform the hospital executives of my conclusion. Connie reluctantly agreed, her attitude driven more by a sense of "what do I have to lose" than by any real optimism or expectation. --- ## Coming Up In the next part of this article, we’ll dive deeper into: - What sets the complexity approach apart from traditional methods - How the ER in my story successfully applied this approach - The common misconceptions around managing risk These topics aim to offer practical insights for navigating complex transformations. For those eager to explore more on organizational change, feel free to return to my _ChangeQuest_ Digital Garden at www.changequest.net I also encourage you to share your questions and thoughts at [email protected]—your feedback is essential to this ongoing journey. Let’s continue exploring this path together. --- ## Resources ### Information | Topic | Details | | ---------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Article maturity | ![[Digital Garden Sapling 01 small.png]] Sapling - this article is still developing and needs to be nurtured before it's mature. | | Author note | This article was last updated on October 18, 2024. As I continue my journey, I'll be adding more insights here. I would love to hear from you. Feel free to email me at [email](mailto:[email protected]) | | Social media | If you found this article helpful, share it with your network! | | Useful Links | | | | ------------------------------------------ | ------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | [Email Me](mailto:[email protected]) | [Quest Effect Website](www.questeffect.com) | [My Book - The Quest Effect](https://www.amazon.com/Quest-Effect-Mastering-Breakthrough-Organization/dp/0967545331/ref=sr_1_1?crid=XIMAD1W2YFBB&dib=eyJ2IjoiMSJ9.kdRdPPDqpm_VomZu3b_YlQM_wQXI2AzuSbAu966GwwPGjHj071QN20LucGBJIEps.zBB0GSA-MVQz_-J1M-Q-XZpAEXBVeFCmNnUcgGTOAg8&dib_tag=se&keywords=%22the+quest+effect%22&qid=1729191943&s=books&sprefix=the+quest+effect+%2Cstripbooks%2C162&sr=1-1) | | | | | --- © 2024 by Randall Benson. 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