0:00:01.000,0:00:02.062
Have you ever noticed

0:00:02.062,0:00:04.804
when you ask someone to talk[br]about a change they're making

0:00:04.804,0:00:06.710
for the better in their personal lives,

0:00:06.710,0:00:08.952
they're often really energetic?

0:00:09.233,0:00:11.796
Whether it's training for a marathon,

0:00:11.796,0:00:13.188
picking up an old hobby,

0:00:13.188,0:00:15.019
or learning a new skill,

0:00:15.019,0:00:16.192
for most people,

0:00:16.192,0:00:21.459
self-transformation projects occupy[br]a very positive emotional space.

0:00:21.951,0:00:24.364
Self-transformation is empowering,

0:00:24.364,0:00:25.412
energizing,

0:00:25.412,0:00:26.863
even exhilirating.

0:00:26.863,0:00:30.691
I mean just take a look at some[br]of the titles of self-help books:

0:00:30.691,0:00:33.326
"Awaken the Giant Within,"

0:00:33.326,0:00:35.856
"Practicing the Power of Now,"

0:00:35.856,0:00:38.402
or here's a great one[br]we can all relate to,

0:00:38.402,0:00:40.661
"You are a Badass:

0:00:40.661,0:00:45.583
How to Stop Doubting Your Greatness[br]and Start Living an Awesome Life."

0:00:45.583,0:00:46.578
(Laughter)

0:00:48.293,0:00:51.571
When it comes to self-transformation,

0:00:51.571,0:00:55.545
you can't help but get[br]a sense of the excitement.

0:00:56.554,0:01:00.303
But there's another type of transformation

0:01:00.471,0:01:03.708
that occupies a very[br]different emotional space.

0:01:04.288,0:01:06.408
The transformation of organizations.

0:01:07.873,0:01:09.126
If you're like most people,

0:01:09.411,0:01:13.894
when you hear the words "Our organization[br]is going to start a transformation,"

0:01:14.061,0:01:16.886
you're thinking, "Uh oh."

0:01:17.060,0:01:17.770
(Laughter)

0:01:17.964,0:01:19.237
"Lay offs."

0:01:19.529,0:01:21.026
The blood drains from your face,

0:01:21.181,0:01:23.877
you mind goes into overdrive,

0:01:24.071,0:01:28.226
frantically searching for some place[br]to run and hide.

0:01:28.397,0:01:29.910
Well you can run,

0:01:30.100,0:01:31.761
but you really can't hide.

0:01:32.355,0:01:37.015
Most of us spend the majority of our[br]waking hours involved in organizations.

0:01:37.329,0:01:40.460
And due to changes in globalization,

0:01:40.660,0:01:42.995
changes due to advances in technology

0:01:43.171,0:01:44.911
and other factors,

0:01:45.102,0:01:46.145
the reality is

0:01:46.304,0:01:50.295
is our organizations[br]are constantly having to adapt.

0:01:50.686,0:01:55.914
In fact, I call this the era[br]of "always-on" transformation.

0:01:57.229,0:02:00.001
When I shared this I idea[br]with my wife Nicola,

0:02:00.181,0:02:02.995
she said, "Always-on transformation?

0:02:03.186,0:02:05.063
That sounds exhausting."

0:02:05.937,0:02:08.213
And that may be[br]exactly what you're thinking --

0:02:08.381,0:02:09.761
and you would be right.

0:02:09.986,0:02:14.905
Particularly if we continue to approach[br]the transformation of organizations

0:02:15.097,0:02:16.881
the way we always have been.

0:02:17.198,0:02:19.547
But because we can't hide,

0:02:19.765,0:02:21.361
we need to sort out two things.

0:02:21.563,0:02:22.302
First,

0:02:22.492,0:02:25.165
why is transformation so exhausting?

0:02:25.382,0:02:26.366
And second,

0:02:26.532,0:02:27.741
how do we fix it?

0:02:29.164,0:02:30.394
First of all,

0:02:30.583,0:02:33.568
let's acknowledge that change is hard.

0:02:33.816,0:02:35.563
People naturally resist change,

0:02:35.800,0:02:39.246
especially when it's imposed on them.

0:02:39.483,0:02:43.824
But there are things that organizations do[br]that make change even harder

0:02:44.069,0:02:47.231
and more exhausting[br]for people than it needs to be.

0:02:48.007,0:02:49.198
First of all,

0:02:49.400,0:02:52.672
leaders often wait too long to act.

0:02:53.374,0:02:54.417
As a result,

0:02:54.607,0:02:57.216
everything is happening in crisis mode.

0:02:58.617,0:03:00.417
Which of course tends to be exhausting.

9:59:59.000,9:59:59.000
Or, given the urgency,

9:59:59.000,9:59:59.000
what they'll do is they'll just focus[br]on the short-term results,

9:59:59.000,9:59:59.000
but that doesn't give[br]any hope for the future.

9:59:59.000,9:59:59.000
Or they'll just take[br]a superficial, one-off approach,

9:59:59.000,9:59:59.000
hoping that they can return back[br]to business as usual

9:59:59.000,9:59:59.000
as soon as the crisis is over.

9:59:59.000,9:59:59.000
This kind of approach

9:59:59.000,9:59:59.000
is kind of the way some students[br]approach preparing for standardized tests.

9:59:59.000,9:59:59.000
In order to get test scores to go up,

9:59:59.000,9:59:59.000
teachers will end up teaching to the test.

9:59:59.000,9:59:59.000
Now that approach can work.

9:59:59.000,9:59:59.000
Test results often do go up,

9:59:59.000,9:59:59.000
but it fails the fundamental[br]goal of education:

9:59:59.000,9:59:59.000
to prepare students to succeed[br]over the long-term.

9:59:59.000,9:59:59.000
So given these obstacles,

9:59:59.000,9:59:59.000
what can we do

9:59:59.000,9:59:59.000
to transform the way[br]we transform organizations

9:59:59.000,9:59:59.000
ro rather than being exhausting[br]it's actually empowering and energizing?

9:59:59.000,9:59:59.000
To do that,

9:59:59.000,9:59:59.000
we need to focus on five[br]strategic imperatives,

9:59:59.000,9:59:59.000
all of which have one thing in common:

9:59:59.000,9:59:59.000
putting people first.

9:59:59.000,9:59:59.000
The first imperative[br]for putting people first

9:59:59.000,9:59:59.000
is to inspire through purpose.

9:59:59.000,9:59:59.000
Most transformations have[br]financial and operational goals.

9:59:59.000,9:59:59.000
These are important[br]and they can be energizing ...

9:59:59.000,9:59:59.000
to leaders.

9:59:59.000,9:59:59.000
But they tend not to be very motivating[br]to most people in the organization.

9:59:59.000,9:59:59.000
To motivate more broadly,

9:59:59.000,9:59:59.000
the transformation needs to connect[br]with a deeper sense of purpose.

9:59:59.000,9:59:59.000
Take Lego.

9:59:59.000,9:59:59.000
The Lego Group has become[br]an extraordinary global company.

9:59:59.000,9:59:59.000
Under their very capable leadership,

9:59:59.000,9:59:59.000
they've actually undergone[br]a series of transformations.

9:59:59.000,9:59:59.000
While each of these has had[br]a very specific focus,

9:59:59.000,9:59:59.000
the north star,

9:59:59.000,9:59:59.000
linking and guiding all of them,

9:59:59.000,9:59:59.000
has been Lego's powerful purpose:

9:59:59.000,9:59:59.000
inspire and develop[br]the builders of tomorrow.

9:59:59.000,9:59:59.000
Expanding globally?

9:59:59.000,9:59:59.000
It's not about increasing sales,

9:59:59.000,9:59:59.000
but about giving millions of additional[br]children access to Lego building bricks.

9:59:59.000,9:59:59.000
Investment and innovation?

9:59:59.000,9:59:59.000
It's not about developing new products,

9:59:59.000,9:59:59.000
but about enabling more children

9:59:59.000,9:59:59.000
to experience the joy[br]of learning through play.

9:59:59.000,9:59:59.000
Not surprisingly,

9:59:59.000,9:59:59.000
that deep sense of purpose tends[br]to be highly motivating to Lego's people.

9:59:59.000,9:59:59.000
The second imperative[br]for putting people first

9:59:59.000,9:59:59.000
is to go all in.

9:59:59.000,9:59:59.000
Too many transformations

9:59:59.000,9:59:59.000
are nothing more than[br]head-count cutting exercises;

9:59:59.000,9:59:59.000
lay-offs under the guise[br]of transformation.

9:59:59.000,9:59:59.000
In the face of relentless competition,

9:59:59.000,9:59:59.000
it may well be

9:59:59.000,9:59:59.000
that you will have to take the painful[br]decision to downsize the organization,

9:59:59.000,9:59:59.000
Just as you may have to lose some weight[br]in order to run a marathon.

9:59:59.000,9:59:59.000
But losing weight alone

9:59:59.000,9:59:59.000
will not get you across[br]the finish line with a winning time.

9:59:59.000,9:59:59.000
To win, you need to go all in.

9:59:59.000,9:59:59.000
You need to all in.

9:59:59.000,9:59:59.000
Rather than just cutting costs,

9:59:59.000,9:59:59.000
you need to think about initiatives

9:59:59.000,9:59:59.000
that will enable you to win[br]in the medium term.

9:59:59.000,9:59:59.000
Initiatives to drive growth,

9:59:59.000,9:59:59.000
actions that will fundamentally change[br]the way the company operates

9:59:59.000,9:59:59.000
and very importantly,

9:59:59.000,9:59:59.000
investments to develop[br]the leadership and the talent.

9:59:59.000,9:59:59.000
The third imperative[br]for putting people first

9:59:59.000,9:59:59.000
is to enable people with the capabilities

9:59:59.000,9:59:59.000
that they need to succeed during[br]the transformation and beyond.

9:59:59.000,9:59:59.000
Over the years I've competed[br]in a numer of triathalons.

9:59:59.000,9:59:59.000
You know, frankly, I'm not that good,

9:59:59.000,9:59:59.000
but I do have one distinct capability;

9:59:59.000,9:59:59.000
I am remarkably fast at finding my bike.

9:59:59.000,9:59:59.000
(Laughter)

9:59:59.000,9:59:59.000
By the time I finish the swim,

9:59:59.000,9:59:59.000
almost all the bikes are already gone.

9:59:59.000,9:59:59.000
(Laughter)

9:59:59.000,9:59:59.000
Real triathletes know that each leg --

9:59:59.000,9:59:59.000
the swim, the bike, the run --

9:59:59.000,9:59:59.000
really requires different capabilities,

9:59:59.000,9:59:59.000
different tools,

9:59:59.000,9:59:59.000
different skills,

9:59:59.000,9:59:59.000
different techniques.

9:59:59.000,9:59:59.000
Likewise when we transform organizations,

9:59:59.000,9:59:59.000
we need to be sure[br]that we're giving our people

9:59:59.000,9:59:59.000
the skills and the tools[br]they need along the way.

9:59:59.000,9:59:59.000
[Cronas],

9:59:59.000,9:59:59.000
a global software company,

9:59:59.000,9:59:59.000
recognized the need to transfer[br]from building products --

9:59:59.000,9:59:59.000
software products --

9:59:59.000,9:59:59.000
to building software as a service.

9:59:59.000,9:59:59.000
To enable its people[br]to take that transformation,

9:59:59.000,9:59:59.000
first of all they invested in new tools

9:59:59.000,9:59:59.000
that would enable their employees[br]to monitor the usage of the features

9:59:59.000,9:59:59.000
as well as customer satisfaction[br]with the new service.

9:59:59.000,9:59:59.000
They also invested in skill development,

9:59:59.000,9:59:59.000
so that their employees would be able

9:59:59.000,9:59:59.000
to resolve customer service[br]problems on the spot.

9:59:59.000,9:59:59.000
And very importantly,

9:59:59.000,9:59:59.000
they also reinforced the collaborative[br]behaviors that would be required

9:59:59.000,9:59:59.000
to deliver an end-to-end seamless[br]customer experience.

9:59:59.000,9:59:59.000
Because of these investments,

9:59:59.000,9:59:59.000
rather than feeling overwhelmed[br]by the transformation,

9:59:59.000,9:59:59.000
[Chronas] employees[br]actually felt energized

9:59:59.000,9:59:59.000
and empowered in their new roles.

9:59:59.000,9:59:59.000
In the era of "always-on" transformation,

9:59:59.000,9:59:59.000
change is a constant.

9:59:59.000,9:59:59.000
My fourth imperative therefore

9:59:59.000,9:59:59.000
is to instill a culture[br]of continuous learning.

9:59:59.000,9:59:59.000
When Satya Nadella became[br]the CEO of Microsoft

9:59:59.000,9:59:59.000
in February 2014,

9:59:59.000,9:59:59.000
he embarked on an ambitious[br]tranformation journey

9:59:59.000,9:59:59.000
to prepare the company to compete[br]in a mobile-first, cloud-first world.

9:59:59.000,9:59:59.000
This included changes to strategy,

9:59:59.000,9:59:59.000
the organization

9:59:59.000,9:59:59.000
and very importantly,

9:59:59.000,9:59:59.000
the culture.

9:59:59.000,9:59:59.000
Microsoft's culture at the time was one[br]of [silos] and internal competition --

9:59:59.000,9:59:59.000
not exactly conducive to learning.

9:59:59.000,9:59:59.000
Nadella took this head on.

9:59:59.000,9:59:59.000
He rallied his leadership[br]around his vision

9:59:59.000,9:59:59.000
for a living, learning culture;

9:59:59.000,9:59:59.000
shifting from a fixed mindset,

9:59:59.000,9:59:59.000
where your role was to show up[br]as the smartest person in the room,

9:59:59.000,9:59:59.000
to a growth mindset,

9:59:59.000,9:59:59.000
where your role was to listen, to learn[br]and to bring out the best in people.

9:59:59.000,9:59:59.000
[In early days,]

9:59:59.000,9:59:59.000
Microsoft employees already know[br]to shift in the culture.

9:59:59.000,9:59:59.000
Clear evidence of Microsoft[br]putting people first.

9:59:59.000,9:59:59.000
My fifth and final imperative[br]is specifically for leaders.

9:59:59.000,9:59:59.000
In a transformation,

9:59:59.000,9:59:59.000
a leader needs to have a vision,

9:59:59.000,9:59:59.000
a clear road map with milestones

9:59:59.000,9:59:59.000
and then you need to hold people[br]accountable for results.

9:59:59.000,9:59:59.000
In other words,

9:59:59.000,9:59:59.000
you need to be directive.

9:59:59.000,9:59:59.000
But in order to capture the hearts[br]and minds of people,

9:59:59.000,9:59:59.000
you also need to be inclusive.

9:59:59.000,9:59:59.000
Inclusive leadership is critical[br]to putting people first.

9:59:59.000,9:59:59.000
I live in the San Francisco Bay area.

9:59:59.000,9:59:59.000
And right now,

9:59:59.000,9:59:59.000
our basketball team[br]is the best in the league.

9:59:59.000,9:59:59.000
We won the 2015 championship

9:59:59.000,9:59:59.000
and we're favored to win again this year.

9:59:59.000,9:59:59.000
There are many explanations for this.

9:59:59.000,9:59:59.000
They have some fabulous players,

9:59:59.000,9:59:59.000
but one of the key reasons

9:59:59.000,9:59:59.000
is their head coach, Steve Kerr,[br]is an inclusive leader.

9:59:59.000,9:59:59.000
When Kerr came to the Warriors in 2014,

9:59:59.000,9:59:59.000
the Warriors were looking[br]for a major transformation.

9:59:59.000,9:59:59.000
They hadn't won a national[br]championship since 1975.

9:59:59.000,9:59:59.000
Kerr came in and he had a clear vision,

9:59:59.000,9:59:59.000
and he immediately got to work.

9:59:59.000,9:59:59.000
From the outset,

9:59:59.000,9:59:59.000
he reached out and engaged[br]the players and the staff.

9:59:59.000,9:59:59.000
He created an environment of open debate[br]and solicited suggestions.

9:59:59.000,9:59:59.000
During games he would often ask,

9:59:59.000,9:59:59.000
"What are you seeing that I'm missing?"

9:59:59.000,9:59:59.000
One the best examples of this came[br]in game four of the 2015 finals.

9:59:59.000,9:59:59.000
The Warriors are down two games to one

9:59:59.000,9:59:59.000
when Kerr made the decision[br]to change the starting lineup;

9:59:59.000,9:59:59.000
a bold move by any measure.

9:59:59.000,9:59:59.000
The Warriors won the game[br]and went on to win the championship.

9:59:59.000,9:59:59.000
And it is widely viewed

9:59:59.000,9:59:59.000
that that move is the pivotal[br]move in their victory.

9:59:59.000,9:59:59.000
Interestingly, it wasn't[br]actually Kerr's idea.

9:59:59.000,9:59:59.000
It was the idea of his 28-year-old[br]assistant, Nick U'Ren.

9:59:59.000,9:59:59.000
Because of Kerr's leadership style,

9:59:59.000,9:59:59.000
U'Ren felt comfortable bringing[br]the idea forward,

9:59:59.000,9:59:59.000
and Kerr not only listened,

9:59:59.000,9:59:59.000
but he implemented the idea

9:59:59.000,9:59:59.000
and then afterwards,

9:59:59.000,9:59:59.000
gave U'Ren all the credit.

9:59:59.000,9:59:59.000
Actions all consistent with Kerr's highly[br]inclusive approach to leadership.

9:59:59.000,9:59:59.000
In the era of "always-on" transformation,

9:59:59.000,9:59:59.000
organizations are always[br]going to be transforming.

9:59:59.000,9:59:59.000
But doing so does not[br]have to be exhausting.

9:59:59.000,9:59:59.000
We owe it to ourselves,

9:59:59.000,9:59:59.000
to our organizations

9:59:59.000,9:59:59.000
and to society more broadly

9:59:59.000,9:59:59.000
to boldly transform our[br]approach to transformation.

9:59:59.000,9:59:59.000
To do that ...

9:59:59.000,9:59:59.000
we need to start putting people first.

9:59:59.000,9:59:59.000
Thank you.

9:59:59.000,9:59:59.000
(Applause)