WEBVTT 00:00:00.825 --> 00:00:03.176 Have you ever noticed when you ask someone to talk 00:00:03.200 --> 00:00:06.536 about a change they're making for the better in their personal lives, 00:00:06.560 --> 00:00:08.520 they're often really energetic? 00:00:09.015 --> 00:00:11.496 Whether it's training for a marathon, 00:00:11.520 --> 00:00:12.776 picking up an old hobby, 00:00:12.800 --> 00:00:14.656 or learning a new skill, 00:00:14.680 --> 00:00:15.936 for most people, 00:00:15.960 --> 00:00:21.200 self-transformation projects occupy a very positive emotional space. NOTE Paragraph 00:00:21.720 --> 00:00:24.176 Self-transformation is empowering, 00:00:24.200 --> 00:00:26.536 energizing, even exhilarating. 00:00:26.560 --> 00:00:30.336 I mean just take a look at some of the titles of self-help books: 00:00:30.360 --> 00:00:33.056 "Awaken the Giant Within," 00:00:33.080 --> 00:00:35.576 "Practicing the Power of Now," 00:00:35.600 --> 00:00:38.056 or here's a great one we can all relate to, 00:00:38.080 --> 00:00:40.296 "You are a Badass: 00:00:40.320 --> 00:00:45.416 How to Stop Doubting Your Greatness and Start Living an Awesome Life." NOTE Paragraph 00:00:45.440 --> 00:00:46.640 (Laughter) NOTE Paragraph 00:00:48.040 --> 00:00:50.560 When it comes to self-transformation, 00:00:51.240 --> 00:00:54.800 you can't help but get a sense of the excitement. 00:00:56.840 --> 00:01:00.016 But there's another type of transformation 00:01:00.040 --> 00:01:03.120 that occupies a very different emotional space. 00:01:04.080 --> 00:01:06.680 The transformation of organizations. 00:01:07.880 --> 00:01:09.216 If you're like most people, 00:01:09.240 --> 00:01:13.616 when you hear the words "Our organization is going to start a transformation," 00:01:13.640 --> 00:01:15.040 you're thinking, "Uh-oh." NOTE Paragraph 00:01:15.426 --> 00:01:16.576 (Laughter) NOTE Paragraph 00:01:16.600 --> 00:01:17.800 "Layoffs." 00:01:18.800 --> 00:01:20.736 The blood drains from your face, 00:01:20.760 --> 00:01:23.616 your mind goes into overdrive, 00:01:23.640 --> 00:01:26.880 frantically searching for some place to run and hide. NOTE Paragraph 00:01:28.120 --> 00:01:29.616 Well, you can run, 00:01:29.640 --> 00:01:30.920 but you really can't hide. 00:01:32.040 --> 00:01:35.016 Most of us spend the majority of our waking hours 00:01:35.040 --> 00:01:36.560 involved in organizations. 00:01:37.040 --> 00:01:40.136 And due to changes in globalization, 00:01:40.160 --> 00:01:42.696 changes due to advances in technology 00:01:42.720 --> 00:01:44.536 and other factors, 00:01:44.560 --> 00:01:49.480 the reality is our organizations are constantly having to adapt. 00:01:50.360 --> 00:01:51.576 In fact, 00:01:51.600 --> 00:01:55.480 I call this the era of "always-on" transformation. NOTE Paragraph 00:01:57.400 --> 00:01:59.656 When I shared this idea with my wife Nicola, 00:01:59.680 --> 00:02:02.816 she said, "Always-on transformation? 00:02:02.840 --> 00:02:04.920 That sounds exhausting." 00:02:05.640 --> 00:02:07.936 And that may be exactly what you're thinking -- 00:02:07.960 --> 00:02:09.536 and you would be right. 00:02:09.560 --> 00:02:14.696 Particularly if we continue to approach the transformation of organizations 00:02:14.720 --> 00:02:16.080 the way we always have been. NOTE Paragraph 00:02:16.920 --> 00:02:19.336 But because we can't hide, 00:02:19.360 --> 00:02:21.056 we need to sort out two things. 00:02:21.080 --> 00:02:22.296 First, 00:02:22.320 --> 00:02:25.056 why is transformation so exhausting? 00:02:25.080 --> 00:02:26.840 And second, how do we fix it? NOTE Paragraph 00:02:29.200 --> 00:02:30.416 First of all, 00:02:30.440 --> 00:02:33.576 let's acknowledge that change is hard. 00:02:33.600 --> 00:02:35.616 People naturally resist change, 00:02:35.640 --> 00:02:38.280 especially when it's imposed on them. 00:02:39.200 --> 00:02:43.776 But there are things that organizations do that make change even harder 00:02:43.800 --> 00:02:46.640 and more exhausting for people than it needs to be. 00:02:47.720 --> 00:02:48.936 First of all, 00:02:48.960 --> 00:02:52.400 leaders often wait too long to act. 00:02:53.040 --> 00:02:54.256 As a result, 00:02:54.280 --> 00:02:56.720 everything is happening in crisis mode. 00:02:58.320 --> 00:03:00.338 Which, of course, tends to be exhausting. 00:03:01.360 --> 00:03:04.456 Or, given the urgency, 00:03:04.480 --> 00:03:08.400 what they'll do is they'll just focus on the short-term results, 00:03:09.320 --> 00:03:11.480 but that doesn't give any hope for the future. 00:03:12.560 --> 00:03:16.280 Or they'll just take a superficial, one-off approach, 00:03:17.040 --> 00:03:21.136 hoping that they can return back to business as usual 00:03:21.160 --> 00:03:23.760 as soon as the crisis is over. NOTE Paragraph 00:03:25.600 --> 00:03:26.816 This kind of approach 00:03:26.840 --> 00:03:32.920 is kind of the way some students approach preparing for standardized tests. 00:03:34.280 --> 00:03:37.736 In order to get test scores to go up, 00:03:37.760 --> 00:03:40.360 teachers will end up teaching to the test. 00:03:41.160 --> 00:03:42.536 Now, that approach can work; 00:03:42.560 --> 00:03:44.496 test results often do go up. 00:03:44.520 --> 00:03:48.296 But it fails the fundamental goal of education: 00:03:48.320 --> 00:03:52.440 to prepare students to succeed over the long term. NOTE Paragraph 00:03:54.680 --> 00:03:57.200 So given these obstacles, 00:03:58.160 --> 00:03:59.976 what can we do 00:04:00.000 --> 00:04:03.456 to transform the way we transform organizations 00:04:03.480 --> 00:04:05.440 so rather than being exhausting, 00:04:06.200 --> 00:04:09.040 it's actually empowering and energizing? 00:04:10.160 --> 00:04:15.176 To do that, we need to focus on five strategic imperatives, 00:04:15.200 --> 00:04:17.935 all of which have one thing in common: 00:04:17.959 --> 00:04:20.240 putting people first. NOTE Paragraph 00:04:21.079 --> 00:04:23.736 The first imperative for putting people first 00:04:23.760 --> 00:04:25.520 is to inspire through purpose. 00:04:26.120 --> 00:04:29.816 Most transformations have financial and operational goals. 00:04:29.840 --> 00:04:34.096 These are important and they can be energizing to leaders, 00:04:34.120 --> 00:04:37.680 but they tend not to be very motivating to most people in the organization. 00:04:38.480 --> 00:04:40.256 To motivate more broadly, 00:04:40.280 --> 00:04:44.680 the transformation needs to connect with a deeper sense of purpose. NOTE Paragraph 00:04:45.720 --> 00:04:46.920 Take LEGO. 00:04:47.640 --> 00:04:51.880 The LEGO Group has become an extraordinary global company. 00:04:52.520 --> 00:04:54.256 Under their very capable leadership, 00:04:54.280 --> 00:04:57.120 they've actually undergone a series of transformations. 00:04:57.800 --> 00:05:01.016 While each of these has had a very specific focus, 00:05:01.040 --> 00:05:02.336 the North Star, 00:05:02.360 --> 00:05:04.176 linking and guiding all of them, 00:05:04.200 --> 00:05:06.640 has been Lego's powerful purpose: 00:05:07.480 --> 00:05:11.240 inspire and develop the builders of tomorrow. 00:05:12.360 --> 00:05:13.560 Expanding globally? 00:05:14.160 --> 00:05:16.576 It's not about increasing sales, 00:05:16.600 --> 00:05:21.240 but about giving millions of additional children access to LEGO building bricks. 00:05:21.960 --> 00:05:23.360 Investment and innovation? 00:05:23.960 --> 00:05:25.818 It's not about developing new products, 00:05:26.360 --> 00:05:28.656 but about enabling more children 00:05:28.680 --> 00:05:32.200 to experience the joy of learning through play. 00:05:33.440 --> 00:05:34.976 Not surprisingly, 00:05:35.000 --> 00:05:40.080 that deep sense of purpose tends to be highly motivating to LEGO's people. NOTE Paragraph 00:05:42.120 --> 00:05:45.056 The second imperative for putting people first 00:05:45.080 --> 00:05:46.800 is to go all in. 00:05:48.080 --> 00:05:49.776 Too many transformations 00:05:49.800 --> 00:05:53.536 are nothing more than head-count cutting exercises; 00:05:53.560 --> 00:05:57.040 layoffs under the guise of transformation. 00:05:57.960 --> 00:06:00.016 In the face of relentless competition, 00:06:00.040 --> 00:06:03.976 it may well be that you will have to take the painful decision 00:06:04.000 --> 00:06:06.856 to downsize the organization, 00:06:06.880 --> 00:06:10.560 just as you may have to lose some weight in order to run a marathon. 00:06:12.000 --> 00:06:13.216 But losing weight alone 00:06:13.240 --> 00:06:16.080 will not get you across the finish line with a winning time. 00:06:16.560 --> 00:06:17.760 To win 00:06:18.160 --> 00:06:19.640 you need to go all in. 00:06:20.880 --> 00:06:23.920 You need to go all in. 00:06:25.160 --> 00:06:27.000 Rather than just cutting costs, 00:06:27.640 --> 00:06:30.176 you need to think about initiatives 00:06:30.200 --> 00:06:32.896 that will enable you to win in the medium term, 00:06:32.920 --> 00:06:34.896 initiatives to drive growth, 00:06:34.920 --> 00:06:38.976 actions that will fundamentally change the way the company operates, 00:06:39.000 --> 00:06:40.536 and very importantly, 00:06:40.560 --> 00:06:44.200 investments to develop the leadership and the talent. NOTE Paragraph 00:06:46.680 --> 00:06:50.456 The third imperative for putting people first 00:06:50.480 --> 00:06:53.176 is to enable people with the capabilities 00:06:53.200 --> 00:06:58.040 that they need to succeed during the transformation and beyond. 00:07:00.280 --> 00:07:03.520 Over the years I've competed in a number of triathlons. 00:07:04.280 --> 00:07:06.456 You know, frankly, I'm not that good, 00:07:06.480 --> 00:07:10.496 but I do have one distinct capability; 00:07:10.520 --> 00:07:14.200 I am remarkably fast at finding my bike. NOTE Paragraph 00:07:14.640 --> 00:07:16.536 (Laughter) NOTE Paragraph 00:07:16.560 --> 00:07:18.376 By the time I finish the swim, 00:07:18.400 --> 00:07:20.256 almost all the bikes are already gone. NOTE Paragraph 00:07:20.280 --> 00:07:22.760 (Laughter) NOTE Paragraph 00:07:24.160 --> 00:07:28.216 Real triathletes know that each leg -- 00:07:28.240 --> 00:07:29.976 the swim, the bike, the run -- 00:07:30.000 --> 00:07:32.496 really requires different capabilities, 00:07:32.520 --> 00:07:33.736 different tools, 00:07:33.760 --> 00:07:36.416 different skills, different techniques. 00:07:36.440 --> 00:07:38.896 Likewise when we transform organizations, 00:07:38.920 --> 00:07:41.776 we need to be sure that we're giving our people 00:07:41.800 --> 00:07:44.600 the skills and the tools they need along the way. NOTE Paragraph 00:07:46.160 --> 00:07:47.376 Chronos, 00:07:47.400 --> 00:07:49.376 a global software company, 00:07:49.400 --> 00:07:54.336 recognized the need to transfer from building products -- 00:07:54.360 --> 00:07:56.016 software products -- 00:07:56.040 --> 00:07:58.800 to building software as a service. 00:07:59.800 --> 00:08:03.016 To enable its people to take that transformation, 00:08:03.040 --> 00:08:05.736 first of all they invested in new tools 00:08:05.760 --> 00:08:10.816 that would enable their employees to monitor the usage of the features 00:08:10.840 --> 00:08:13.600 as well as customer satisfaction with the new service. 00:08:14.280 --> 00:08:17.976 They also invested in skill development, 00:08:18.000 --> 00:08:19.816 so that their employees would be able 00:08:19.840 --> 00:08:22.320 to resolve customer service problems on the spot. 00:08:22.960 --> 00:08:24.176 And very importantly, 00:08:24.200 --> 00:08:27.576 they also reinforced the collaborative behaviors that would be required 00:08:27.600 --> 00:08:31.640 to deliver an end-to-end seamless customer experience. 00:08:32.679 --> 00:08:34.256 Because of these investments, 00:08:34.280 --> 00:08:37.616 rather than feeling overwhelmed by the transformation, 00:08:37.640 --> 00:08:40.895 Chronos employees actually felt energized 00:08:40.919 --> 00:08:43.000 and empowered in their new roles. NOTE Paragraph 00:08:44.200 --> 00:08:46.416 In the era of "always-on" transformation, 00:08:46.440 --> 00:08:47.936 change is a constant. 00:08:47.960 --> 00:08:49.896 My fourth imperative therefore 00:08:49.920 --> 00:08:53.720 is to instill a culture of continuous learning. 00:08:54.800 --> 00:08:57.816 When Satya Nadella became the CEO of Microsoft 00:08:57.840 --> 00:08:59.776 in February 2014, 00:08:59.800 --> 00:09:02.696 he embarked on an ambitious transformation journey 00:09:02.720 --> 00:09:06.920 to prepare the company to compete in a mobile-first, cloud-first world. 00:09:07.640 --> 00:09:09.936 This included changes to strategy, 00:09:09.960 --> 00:09:11.176 the organization 00:09:11.200 --> 00:09:12.880 and very importantly, the culture. 00:09:14.280 --> 00:09:18.600 Microsoft's culture at the time was one of silos and internal competition -- 00:09:19.320 --> 00:09:21.520 not exactly conducive to learning. 00:09:22.480 --> 00:09:24.320 Nadella took this head-on. 00:09:25.560 --> 00:09:28.976 He rallied his leadership around his vision 00:09:29.000 --> 00:09:31.520 for a living, learning culture, 00:09:32.240 --> 00:09:34.576 shifting from a fixed mindset, 00:09:34.600 --> 00:09:37.976 where your role was to show up as the smartest person in the room, 00:09:38.000 --> 00:09:39.816 to a growth mindset, 00:09:39.840 --> 00:09:45.320 where your role was to listen, to learn and to bring out the best in people. 00:09:46.720 --> 00:09:47.976 Well, early days, 00:09:48.000 --> 00:09:51.120 Microsoft employees already noticed this shift in the culture -- 00:09:52.080 --> 00:09:55.480 clear evidence of Microsoft putting people first. NOTE Paragraph 00:09:56.560 --> 00:10:00.120 My fifth and final imperative is specifically for leaders. 00:10:01.200 --> 00:10:02.856 In a transformation, 00:10:02.880 --> 00:10:04.440 a leader needs to have a vision, 00:10:05.160 --> 00:10:07.800 a clear road map with milestones, 00:10:08.600 --> 00:10:13.056 and then you need to hold people accountable for results. 00:10:13.080 --> 00:10:15.033 In other words, you need to be directive. 00:10:16.240 --> 00:10:19.376 But in order to capture the hearts and minds of people, 00:10:19.400 --> 00:10:21.800 you also need to be inclusive. 00:10:22.680 --> 00:10:26.440 Inclusive leadership is critical to putting people first. NOTE Paragraph 00:10:27.920 --> 00:10:29.720 I live in the San Francisco Bay area. 00:10:30.680 --> 00:10:31.896 And right now, 00:10:31.920 --> 00:10:34.400 our basketball team is the best in the league. 00:10:34.960 --> 00:10:37.616 We won the 2015 championship, 00:10:37.640 --> 00:10:39.880 and we're favored to win again this year. 00:10:40.600 --> 00:10:42.656 There are many explanations for this. 00:10:42.680 --> 00:10:44.400 They have some fabulous players, 00:10:45.120 --> 00:10:46.896 but one of the key reasons 00:10:46.920 --> 00:10:52.360 is their head coach, Steve Kerr, is an inclusive leader. 00:10:53.360 --> 00:10:55.976 When Kerr came to the Warriors in 2014, 00:10:56.000 --> 00:10:58.680 the Warriors were looking for a major transformation. 00:10:59.480 --> 00:11:03.960 They hadn't won a national championship since 1975. NOTE Paragraph 00:11:05.640 --> 00:11:08.816 Kerr came in, and he had a clear vision, 00:11:08.840 --> 00:11:11.240 and he immediately got to work. 00:11:12.480 --> 00:11:13.816 From the outset, 00:11:13.840 --> 00:11:17.936 he reached out and engaged the players and the staff. 00:11:17.960 --> 00:11:22.240 He created an environment of open debate and solicited suggestions. 00:11:23.360 --> 00:11:25.056 During games he would often ask, 00:11:25.080 --> 00:11:26.960 "What are you seeing that I'm missing?" NOTE Paragraph 00:11:28.000 --> 00:11:33.760 One the best examples of this came in game four of the 2015 finals. 00:11:34.600 --> 00:11:36.720 The Warriors were down two games to one 00:11:37.880 --> 00:11:42.040 when Kerr made the decision to change the starting lineup; 00:11:42.600 --> 00:11:46.000 a bold move by any measure. 00:11:47.360 --> 00:11:50.280 The Warriors won the game and went on to win the championship. 00:11:50.960 --> 00:11:52.216 And it is widely viewed 00:11:52.240 --> 00:11:55.920 that that move was the pivotal move in their victory. NOTE Paragraph 00:11:57.440 --> 00:12:01.120 Interestingly, it wasn't actually Kerr's idea. 00:12:02.560 --> 00:12:06.160 It was the idea of his 28-year-old assistant, Nick U'Ren. 00:12:07.160 --> 00:12:09.336 Because of Kerr's leadership style, 00:12:09.360 --> 00:12:12.200 U'Ren felt comfortable bringing the idea forward. 00:12:13.240 --> 00:12:15.216 And Kerr not only listened, 00:12:15.240 --> 00:12:16.800 but he implemented the idea 00:12:17.520 --> 00:12:19.176 and then afterwards, 00:12:19.200 --> 00:12:21.160 gave U'Ren all the credit -- 00:12:22.520 --> 00:12:28.040 actions all consistent with Kerr's highly inclusive approach to leadership. NOTE Paragraph 00:12:29.280 --> 00:12:31.936 In the era of "always-on" transformation, 00:12:31.960 --> 00:12:35.640 organizations are always going to be transforming. 00:12:37.200 --> 00:12:40.440 But doing so does not have to be exhausting. 00:12:42.080 --> 00:12:44.256 We owe it to ourselves, 00:12:44.280 --> 00:12:46.256 to our organizations 00:12:46.280 --> 00:12:48.000 and to society more broadly 00:12:49.000 --> 00:12:52.840 to boldly transform our approach to transformation. 00:12:53.920 --> 00:12:55.576 To do that, 00:12:55.600 --> 00:12:59.080 we need to start putting people first. NOTE Paragraph 00:12:59.800 --> 00:13:01.016 Thank you. NOTE Paragraph 00:13:01.040 --> 00:13:07.992 (Applause)