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Courtesy of Innovation & Excellence's José Pires below is a transcript of his speaking session on 'Global Disruption: How Great Leaders and Organizations Conquer Culture, Business, and Digital Transformations' to Build a Thriving Enterprise that took place at the Digital Workplace Transformation Live - A Virtual Conference.
Global Disruption: How Great Leaders and Organizations Conquer Culture, Business, and Digital Transformations
The key ingredients for enduring greatness are not what you see portrayed most often in the media. Great, enduring organizations implement practical principles and disciplined mechanisms to create and scale excellence, innovation, transformation, and value creation during and after market disruptions.
We will explore the benchmarks and practical insights from more than 1,000 award winning organizations on excellence, innovation, and cultural, business, and digital transformations for value creation. And how to blend disciplined innovation methods with elements of venture capitalism, crowdsourcing, and collaborative leadership to deliver rapid and sustainable business improvements and innovations in any industry.
Is global disruption, how great leaders and organizations conquer culture, business, and digital transformations.
And I will start by saying that the title of our conference is a bit of a misleading title, because I will posit that there is no such thing as a digital transformation.
Certainly there is no such thing as a successful digital transformation without a business and cultural transformation.
We have been digitizing things for a long time.
And it doesn't mean, however, that you're having a digital transformation, there is no digital transformation without business and cultural transformation, if, especially in times of uncertainty and rapid change and global disruptions like the ones we're living through, right now. So, I'm going to change hats here from conference host to presenter. So, hang with me here as I move to my new role.
And my new role is that of a connected worker, and how we are accelerating successfully, culture, business, and digital transformation.
But what I want to share with you is not my opinion about the subject, because my opinion doesn't matter.
What really matters are the observations and insights that we get from true practitioners and leaders who are implementing successful transformations in their organizations.
Successful transformations that create value for all in the organization, and customers, and society. What does that look like?
So, what we're going to be looking at are the lessons learned from more than one thousand award winning organizations on excellence, on innovation, on culture, business, and digital transformation.
Now, um, we have to be careful as we proceed here, because there are many organizations that, that do this, but not all of them are successful.
And what I want to share with you are the practical lessons for those that have succeeded in part, or in whole, in transforming their organizations digitally. So credit to more than 50,000 excellence, and innovation leaders across hundreds of organizations, that I have the privilege to training directly, but most important in learning and collaborating with, in this journey of transformation of successful transformation.
So as, again, none of those organizations are perfect one way or the other they have pockets of excellence, and they have pockets of mediocrity everywhere.
No organization has a hold on greatness. Greatness is hard to achieve.
It's even more difficult to maintain.
But I want to share the lessons of those who have been, who have achieved it.
And they have, at least, for a certain period of time, in certain parts of their organization, they have maintained it.
So what does that look like? So, this is a picture from the award Winners for Digital Transformation.
In 20 21 cross-industry award winners, we had a record number of submissions, and we met in Orlando for the Business Transformation Operational Excellence Road Summit late last year, and we honor and awarded, you know, multiple awards to these winners.
So, what this picture doesn't show, however, is that for every one of this winners on stage, you probably have 100 organizations or representatives, if you will.
There are not on that stage that couldn't make it. Because they're not so proud of their results, when it comes to digital transformation.
Because the majority of digital transformations will actually fail, let alone. You're going to be getting an award for anything. You have not. You have failed to deliver on the desired outcomes of your transformation worse yet, some organizations, you start with some sort of transformation, not even thinking about what the desired outcomes are. So there's a lot to be learned here in a very short period of time.
So let's see what's behind this organizations that succeed, and some of those who tried to succeed. But they get blocked in the process. So let's look for the main blockers for organization is speed, innovation, and growth that we have observed. And this is actually, supported by a very large study done by I Triple E of more than 5000 organizations. And the results are the same.
The practical results and the theoretical results from the surveys match very, very well.
So there are five top categories, are blockers for organization speed, innovation, growth, and digital transformation.
It's silos in organizations that do not code that do not work well together.
It's a lack of faith in the objectives of that organization.
It's the, it's no higher purpose.
That is really engages everyone in that organization, towards the higher purpose is a tremendous fear of failure that permeates most organizations today.
And and and prevents those organizations join from achieving greater speed innovation and growth And the fact that most professionals and leaders and organizations have a hard time dealing with uncertainty.
They want black and white answers. In a world that often gets very, very great.
So these are the major blockers, fine. But there's one common denominator that's behind all of this blockers. And that's the one that we want to get you.
And it has to do with the fact that culture permeates this blockers and the jaws of culture.
We'll lead up and spit out good intentions that you have in your organization, And those blockers that you see are typical symptoms of the jaws of culture in action.
So the jaws of culture permeate every organization and they destroy well intended initiatives that you have, including your digital transformations.
So, so let's talk a little bit about culture. And let's understand why digital transformations do not work if you do not address some cultural aspects off of your journey.
So, let's start with the basics here. So, what is culture?
Let's not make it super complicated and spend two semesters discussing culture, which we could, but ultimately, culture is simple. Culture is simply the habits and behaviors of individuals and teams in the organization.
What people say matters.
But what they do and how they behave is most important. So the habits and behaviors of individuals and teams in the organization is the culture that you have.
Now, the question then becomes, like, our previous presenter mention, if we want to be intentional about what we'd do?
If we want to be intentional about our culture, the question becomes, OK, if want to transform into something, what type of culture do we want to have?
And that, again, sounds like a very complex question, and that a lot of organizations avoid this questions because they feel so complex.
And that requires a high level of collaborations that most organizations and senior leadership teams are not ready for.
So, they avoid the question, but let's not avoid the question.
What is a good culture, and the only common denominator that we have found among this award winning organizations on transformation, the only common denominator has being that there are many different ways you can shape a successful culture. But a common denominator is that for you to have a successful culture, you must have a culture that is, that has a value creation behaviors.
So in summary, a good culture in this high performers is a culture that exemplifies value creation behaviors. Now, when I talk about value creation here, I'm certainly talking about financial value creation. But I am also talking about social value creation. So, these behaviors are financial, and, or social value creation behaviors.
They are the only common denominator among the successful, the enduring, great organizations that we have x-plore So that immigration behaviors are foundational for this. Keep that in mind.
Now, culture and business transformation is incredibly hard.
Because no matter what you try to do in your organization, it's likely that if you're trying to transform it, that transformation will be very hard, because the culture that you currently have will resist what he most needs to change.
So, you may say, Oh, yeah, we need to do, we need to dress form ourselves.
And, inevitably, you're going to run against a cultural resistance and that cultural resistance will be typically, what you most need to change is like, you know, try to stop smoking and download that just smoker. It's, it's, it's, it sounds good, but it's really hard to do, because there's something grain behaviors that make that transformation exceedingly hard.
Now, here's the first step on this journey, don't get self righteous about this.
You must develop high levels of empathy for organizations, and why they resist transformations, they resist transformations, because organizations are like you and I, they are like people.
We are not wired for change, let alone transformation. That sounds incredibly painful.
We are wired for safety and predictability, and there's nothing that's safe and predictable about transformation. So, transformation is scary. So, the reason, so the first thing that we need to do in this first step of our journey is to be empathetic about our current culture.
No, let's meet them where they're at, and let's try to understand why, why they resist.
And let's build value creation behaviors at the current state and my great overtime, So, this required a discipline up approach to your transformation.
Not all your digital transformation, digital transformation, business transformation, and cultural transformation must be tackled together for you to be successful.
So, how do we do this? We do this by understanding the components of successful culture and business transformation.
So this is going to look to you like, common sense. But I'll tell you, common sense is the least common of the census in large organizations.
So we don't do common sense things. And the larger the organization, the more difficult it becomes to do those common sense things. So what do you need for a successful culture and business transformation?
You need to start with a clear purpose.
What is the purpose of your organization? one of the main blockers that we discuss early on.
Now, that purpose must be clearly communicated and and rationalize to all in the organization.
It must be a purpose that the individuals in their organization can gather around and support, that they feel compelled to be part of, because it's a worthwhile purpose that is not an easy task. And it needs to be tackled by senior leaders in the organization early on.
Once you have that purpose, you need to define what are the values.
Core values and beliefs in this organization? That will be aligned with that purpose. So we need to have a strong set of core values that are strongly aligned with that purpose. And we need to then start creating mechanisms to live those values.
Now, that's not enough, You need to also tackle the moods and feelings in the organization.
Because the moods and feelings in the organizations are usually negative.
We want to bring them to be at least in the ultras state. And certainly one of them to be at the positive state.
But the reality is that moods and feelings in most organizations and the amount of disruption that we deal with are on the negative side. People are burnout, people are over tax. People are uncertain about the future, and the moods and feelings reflect that. So we must be intentional about, right. Raising the moods and feelings in our organization. Why is that important?
Because of the next item, we need to start shifting mindsets. To shift the mindset you have to open a window with more positive moods and feelings, because if I want to have a culture of innovation, for example.
And I want to have a mindset of innovation, I need to raise moods and feelings, so that then I can start developing a my, a better, a greater mindset of innovation.
So, as an example, but mindsets are not enough, because now you need to understand the principles associated with those mindsets. And this is really important.
These are not principles that come from some person who wrote a book, but actually never did it.
You must be looking for real practitioners, practitioners like the ones we're having in this conference.
They are not just theorizing about it. They are doing it, and their lessons and principles are battle tested.
You need to look for battle tested principles. So, for example, on principles related to our mindset of innovation, you need to have the real principles of innovation. Not someone who says that, Oh, hackathons are really cool. Or exponential technologies are awesome. And I can, I can tell you all the different, you know variants of exponential technologies that exist today.
You want to deal with people who have implemented innovations that create value, and they have the real principles of innovation. They understand them deeply.
Now, even after you have that, it's not enough because principles alone, when you talk about them, they sound interesting but they become platitudes.
You must translate this transpose into actions.
So how do you translate principles into actions?
You'll have to develop mechanisms in your organization for that. What are the mechanisms in your organization that translate, for example, the principles of innovation, the principles of digital transformation into actions, but these actions cannot just be any actions?
They must be value, creation, actions, going back to the original point. Because value creation actions are now exemplified to the organization.
Those are the role play, demonstrate a behaviors of value creation behaviors that shape the culture that you want to have.
So you see, to shape culture, you have to do every one of these components, right? Most senior leaders and organizations, they don't even understand these concepts.
And I don't care if you're a Fortune, Dan organization, they don't understand that.
So, because I work with them right now, and I'm telling you, they don't understand. They will not say publicly, but In closed door meetings, they'll say, Wow, I was missing number, two and number three and number four here.
And then, once you've put it all together, it's, it's logical, but you have to be now intentional and disciplined about each one of those items, but keep in mind, ultimately, to build a great, enduring organization and leadership and culture, you must develop value creation behaviors.
Innovation by itself, as just one example, is not enough. If that innovation is not connected with value creation behaviors, whatever values, moods and feelings, mindsets, principles that you'll have, you want them to translating the and to value creation.
behaviors. Because now you're going to build a culture that is truly a new competitive advantage for you.
Now, this is all very interesting, but a bit theoretical is still, so I'm gonna move more into practice now, so I want you to first do some self evaluation based on your experience.
We have amazing, amazing practitioners and leaders of transformation in this sessions, So I want you to think, Look back at your own experience as a professional, as a leader, and tell me what you think matters most on organizations, and groups that successfully implement transformation.
Is that: Is it driven by ideas? Is it driven by methods? Is it driven by technologists, or is it driven by people?
So and choose what you think matters most.
And here's what I'm going to tell you, that we have learn from this great, enduring organizations.
Ideas are incredibly important. You need new ideas, you need new ways of creating value and ideas is a great way of coming, of coming up with new, new ways of creating value.
But ideas are also everywhere.
What are uncommon in your organization are people who are willing to put their reputation behind those ideas.
OK, OK, ... must be methods, right? Because methods we just saw would just hard, you know, agile strategy execution, and we can use, you know, Scrum, and we can use Lean, and six Sigma and Advanced BPM and a whole bunch of different methods.
And I'll tell you, the methods are indeed very important, because they provide a framework and a discipline approach for executing on this transformation.
But, methods alone do not transform businesses.
I have been a certified Lean six Sigma Master Black Belt for nearly three decades, but for most people that sounds like a dangerous mental condition. It doesn't help them.
So methods alone do not transform businesses.
People do. All right? So, I must be Technologists Righteously, because you're just talking about exponential technologies, artificial intelligence, robotics, process automation, natural language processing, block chain, and on and on, and on, and on and on.
And technologists by all means, they can be incredible enablers for transformation, for accelerating the values and creating value for their own good accelerating, the core values and behaviors of the organization that truly create value. So technologists can be great, But it has to be the right technology.
Because you also have to remember that the wrong technology can make stupid happen at the speed of light, and you don't want that.
So, it must be people, People shows that, because people are most important, asset.
That sounds really good.
But from a practical perspective, he's not so sound, because, first of all, stop looking at people as an asset.
They are not an asset. They are people.
And if you look at them as an asset, I don't think you treat them as your most important asset most of the time.
When I look at large transformations, when I look at mergers and acquisitions activity, I see people being the first one to be let go.
So that, that there is a cognitive dissonance with this thing about saying that people are our most important asset, and then getting rid of it as fast as possible.
I'm not here to judge what's right or wrong.
I'm here to share with you the actual practice that we see in those organizations, and what we see is that in great, enduring organizations, all people matter, deemed the visual, the professional matters, but the right people in the organization matter most.
And the right people are the people who are able to scale.
The value creation behaviors that you're trying to build in your transform organization and culture.
So, keep that in mind. While all people matter, we're looking for those who are going to accelerate, who are going to amplify the behaviors that you want to have in your culture.
So, this is very important because it's about mining for gold, and the right people in your organization is what these great enduring organizations do.
Now, what you're going to hear from me throughout this presentation is a paradox, and this paradox sounds like a contradiction, because just that will say that ideas, methods, technologies, and people are real important.
And then, on the other hand, he says that every one of those does not really matter very much.
So this is one of the greatest findings, in my opinion, from Great Enduring Organizations, great enduring organizations and leaders, they are, they are masters off.
Come off of a complexity, and there are masters of contradictions of seemingly contradictions. Forces that pull in very different directions. And what they find, what they, what they show to us, is that when you have forces, are pulling very different directions.
The choice is not A or B, The best choice is often a blend of AMB.
But that's not obvious, because we like to take this binary choices.
And but greatness resides on this ability to interweave forces that pull in very different directions and make them create value for your organization and for your, for your customers and for society.
And there is no greater contradiction of forces pulling different directions than the forces of excellence. And the force of innovation in all organizations, Because what you typically see is organizations who either want to be the most excellent, at what they do, or the most innovative at, what they do.
And what the research.
And certainly most important, what the practice has shown to us, is that neither the most exxon's, nor the most innovative organizations, that become the great Enduring organizations over time.
It is indeed, those organizations who are able to blend the excellence and innovation in just the right approach.
Now, I could spend an hour just on this topic. I'll summarize for you. And what we have observed on great enduring organizations is that they have a strong foundation of excellence.
Which means that they have high, it's clear standards of performance.
And they work continuously to improve upon, and to meet and exceed those standards of performance, but if they only do that, eventually they become obsolete.
The other side, the most innovative organizations, they are constantly innovating and coming up with new ideas, and coming up with new ways of doing things, which is fantastic, but, D, nearly all of them will innovate themselves out of business overtime. And they'll become mediocre.
Because it's not about changing, or change, or even changing fast, is about changing chronically consistent with your purpose. There are plenty of organizations that innovate and change all the time, but, if you look at them, over a long period of time, it's, like a zig-zag on a flat line.
You do not want to have that.
What do you want to have is a clear purpose and innovations that are, that are being made, that move towards that clear purpose, on the, on an upward trend, hopefully, but you don't see that on the most innovative organizations.
On the gradient during your organizations, what you see is that they have a foundation of excellence.
Yet, they have the discipline to step away from that foundation of excellence, and say, there's gotta be a better way, And they come up with innovations, and better ways of doing things. Because, after all, you cannot design cars by squeezing efficiencies out of horses.
But here's the catch. Once they come up with the car, once they come up with the innovation, they don't get to be dominant by just continuously innovating on that.
They get to be dominant, bice scaling the innovations they create better than anybody else.
And do you know how they scale their innovations by applying the principles of excellence on the new innovations that have been created?
This sounds incredibly simple, but it's very hard because the cultures of excellence and innovation do not coexist peacefully.
There is a natural friction between those those cultures. And I would posit that what the common denominator for great Enduring Organizations is this bland of an excellence and innovation culture, and systems and mechanisms, and everything else behind it. But this is a very important concept, and something that you should be looking at at your own organization.
How much of it is that we have, is excellence. How much of it that we have is innovation? And what is the right blend for our organization between excellence and innovation, for us to be disciplined and chronically consistent with our purpose and growth and and value creation over time?
So this is all very interesting, and I want to get even more practical with you.
So this next five organizations are not some of the hundreds of organizations that I advise on.
These are organizations that I had to live of the consequence of my advice because I was the leader for excellence, innovation, and transformation for this organization.
So, without going too deep, what I want to get here is just a couple, 1 or 2 points for each one of those organizations that represent what great Enduring organizations have or do.
So, my background is in engineering and physics and investment banking. I was born in Brazil educated, United States. My first job was working for Sony electronics in California and Japan, designing new technologies.
So, very, very interesting stuff.
My first boss told me my first week at work, that I should identify 100 innovations among a super advanced manufacturing facility, and one of the most advanced technology research centers in the world, And he wanted me the new grad to identify 100 innovations in that system.
Now, I will short this discussion here for the sake of time.
But, it was one of the hardest things I've ever done in my life to this day.
How can someone new identify 100 innovations in a place that they don't know much about? I was hoping I was going to get some training.
But the lesson here is that In the mind of the expert, there is only one way in the mind of the novice. There are many ways the mind of the novice creates innovation.
So my boss, High Ash a son, his name was .... You wanted me to use the mind of the novice to come up with new ways. Now he knew that I did not have the ability to scale those innovations though, because you do need the mind of the export now to scale.
So you literally need to blend the mind of the novice of the mind of the export, but most important, he did not send me to go to go for training because action is more important than training.
When you're doing innovation, because when you're doing innovation, you're what, What matters Most are the people, but the right people and the right. People will have certain character traits.
There are only made visible to the organization once you have a clear execution mechanism for innovation your organization.
So, what my boss then asked him introduced to come up with 100 innovations.
He wanted to know, really, if I had those traits, and here's what we have, Lauren, around that practice. Is that great innovators?
Um, and great innovation, as a matter of fact, doesn't doesn't rely on your gender, race, ethnicity, or how many certificates you have hanging on the I love myself wall.
When it comes to real innovation, there are four traits and behavioral characteristics that separate the right people from the others.
The real innovators from the others in this straits are they have purpose, alignment. The purpose of the professional individual, aligns with the purpose of the organization or activity they are involved in. So there is a level of purpose, alignment.
And then, these are more personal characteristics. Now, they have a tremendous level of passion for what they do.
They have discipline, and they have resilience.
Now, again, I could spend eight hours discussing purpose, passion, discipline, and resilience. Here are the key takeaways. I want you to remember: those people, purpose, they have purpose alignment between their purpose, and the purpose of the organization, or function, that they have in the organization.
The next one, passion: passion is not following the law. It's a lot more like an Arranged marriage people who work really hard in certain areas, develop a certain level of expertise.
And over time, the thing that they didn't even like, they develop an affinity for it. That's the type of fashion. That really translates in value creation innovations. But that passion alone is not enough, They must have discipline. And discipline here is not following arrangement, a set of rules.
Discipline is consistency, with purpose.
And then, they also must have resilience in regina's is not being stubborn and haven't given up.
Resilience is about understanding that you're going to have obstacles, and you need to engage with those obstacles collaboratively. Collaborative leadership is very important. And if unable to overcome those obstacles, you're gonna pivot and go the longer road towards your purpose.
And the reason you do that is because their resilience comes from the fact that that purpose is worthwhile for you as an individual and as a professional.
So purpose, passion, disciplinary resilience, are the traits that separate, real innovators. If you don't remember anything that I'm going to say today, remember this.
These are the traits that you're looking for the right people in your organization, that is the ultimate accelerator for excellence. For innovation, for transformation in your culture.
And you'll find those people by setting a meritocracy of ideas with clear execution mechanisms and not by training them only. You certainly have to equip them with new ways of thinking. But the most important component is the action they need should drive, value creation actions for innovation, your organization. And your job is to set up a system to allow them to identify, prioritize, and execute on what creates the most value in the shortest time and simplest means for your organization and its customers.
So that's the lesson from Sony ..., you probably never heard of this company. This was one of the most successful startups in the semiconductor industry. I was very privileged to be part of that startup in California, and we took this company from nothing to a multi-billion dollar company today's part of cyber ASM Now. We develop laser technologists. There are used for imaging the most advanced semiconductor circuits in the world today.
So, what is the lesson from this company? The lesson from this company is that we had the best technology in the world.
We had the best scientists in the world, yet, we could not grow.
We could not grow, because when you get all of the smart people in the room, they spend too much time trying to prove that they are the smartest person in the room.
And we didn't really move towards that common purpose in a disciplined fashion.
So what is the lesson? The lesson is that it's not enough for you to just get the smart people in the room.
You need to find ways for them to collaborate effectively.
And the biggest lesson there is that you need to understand what collaborative leadership is and how to do it effectively.
Because we are only able to grow and become one of the most successful startups in the semiconductor industry history, Bye, enabling collaborative leadership, and practicing collaborative leadership across the company.
I don't have time to going through all the details, but the essence of collaborative leadership is the ability for you to surround yourself with people with very different perspectives And those people are willing to voice those different perspectives without fear of retaliation, and that's the essence of collaborative leadership. Now, as I left there, I became an innovation leader for Nestle.
Now, you'll go from a startup to a company of 350,000 employees, and more than 580 business units around the world.
How do you accelerate innovation? A system like that.
So, the lesson from Nestle, I want to share with you, is that no matter the size, certainly in the bigger companies, even more challenging, but no matter the size of your organization.
Culture eats strategy for breakfast, and I don't care what initiative you have going on.
If it's a digital transformation initiative, if it is, if it is a safety initiative, invidious, whatever initiative you have, If you don't have empathy, and align that initiative with the culture that currently exists, the jaws of culture are going to chew it up and spit it out.
So, make sure that you are empathetic to the culture that exists.
Show respect for it.
Don't just try to change it saying you don't like it.
You have to be empathetic, show respect for it. Meet people where they're at right now.
And then join them MB and create the most value in the shortest time and simplest means for them by showcasing the behaviors that you want to have in the new culture.
What are those behaviors, collaborative, value, creation, innovation, behaviors?
So, go show them without pausing, go show them what those behaviors look like and make them feel that those behaviors create value.
And that's how you start migrating our culture. Certainly, there are other things to be done, but that's a key component that you must work on.
That you must work on demonstrating value creation behaviors to the people. And you cannot. You have to show respect and empathy for the culture as it is.
All right, So left, Nestle and the mission there.
And lastly, to join on yet, another mission on that company that was over 100 years old, with 12,000 of the brightest infrastructure development engineers in the world, operating more than 130 countries, building energy or water telecommunications infrastructure for countries.
And this one, I want to show you some data.
Because for a number of years, you had a bunch of very left brain mode engineers who just want to get to know, what should the action that, what is that we need to do.
And for those ears, for six years, I was empathetic to the culture.
And, what they wanted to focus on was on ideas, was their own methods and technologies.
So, we implemented our traditional Lean six Sigma approach, with a focus on ideas and technologists to help them accelerate innovation and transformation that organization.
Now, notice this, we spent six years doing this, show respect for the culture, as it is, because that's what they wanted.
So we created the value with what they wanted, at first, and we got 3 or 6, which is a big accomplishment to create value, got engagement of people across the organization, and get injury, or six is a big deal. Because 50% of all transformation programs that you hear about, they die by year three.
And 99% of them die by year five.
So when you get your Year six, you've done some, a few things, right?
Certainly, you have built trust, and you have built confidence in your approaches of this organization, enough trust and confidence, and empathy for the existing culture to then say that, you know what, we have shown you that we can systematically create value for innovation. And we're a transformative organization, but how can we accelerate this transformation?
Now that I have show my worth to you, give me a chance to do something radically different instead of focus on ideas, matters and technologists, please let me focus on finding the right people in this organization.
Oh, how are we going to do that? We're going to do that by setting a meritocracy of ideas with clear execution mechanisms, and allowing everyone in the organization to have access to that.
So that we did, and what we did then, is we said, you know, from now on, we're not going to be focused on Lean and six Sigma.
We're going to be focused on collaborative leadership and innovation value creation.
And we're going to retrain our professionals to think differently. We're going to retrain them on the disciplines of innovation and we need to get this right for them and we create a meritocracy of ideas. If clear execution mechanisms now, we're scared, because this could not work.
But you must have courage and discipline to lead transformation, and remember, this courage and discipline are still required.
So we implemented, on the year seven, a change to a program that was considered to be very successful.
And we're not sure because we made this 100% voluntary. Nobody had to do anything.
And I feel people engage on year seven and on neonates. They realize, wow, anybody can be part of this. Yes, on your nine more people join by your 10 on a voluntary basis.
We had an 800 improvement in value creation and we have over 10 fold improvement in voluntary engagement around the world.
Company went on to want to in multiple awards, for global excellence, for global innovation, for business transformation, for being ranked as the number one US private company for leaders in law and collaborative leadership development.
Now, again, how does this done?
We went from focusing on just ideas, metals and technologists. We still have that as a background. But we focus on find the right people.
The people with purpose, passion, discipline and resilience, who are going to identify, prioritize and execute on what creates the most value for the organization, for customers, for society.
And then so that we don't so that we don't know this is a fluke. Let's recreate this, but let's recreate this now, another organization.
There is a Fortune 100 energy organization that has, has nothing but mediocrity in the history of this organization.
But now decided that wants to go for extraordinary, how can you go for extraordinary when you are successful, almost despite in spite of herself, and, but now you think that you can go for extraordinary. So let's look at the story here, as my last example for you on how these principles are applied.
So endeavor co-operation in 2010 was not in Denver co-operation. It was a company called ... Corporation.
It's a public company with about a $2 billion market value and that comment at that point was the signature of mediocrity.
This is annoying gas company, focused on the western side of the United States, and basically had logistics operations and refining operations and distribution operations across the country, but mostly focused on the Western United States.
And this $2 billion company was, that was the market value for this company, but the book value of the assets of this company was greater than that.
Which means that the market thought that this company was worth less than the value of its assets.
That's a pretty sad situation.
That's a pretty good market valuation that you are less than mediocre at that point.
But then, what happened in 2010?
We have a new seal that comes into the company, looks at what we have available in terms of comparative advantage. And what we have learned is that we don't really have a major competitive advantage anywhere.
So, what he decided to do is to build that culture as its main competitive advantage.
And how do you do that?
Well, he hire the right people for his senior leadership team, people with different perspectives and experts, cross industry experts that could bring different perspectives into this organization and start a real transformation for value creation over time. It wasn't a digital transformation.
It was a culture of transformation, that one day would get your digital. But first, we need to get into some elements of our culture. So how, how did, how did we actually do this? Well, we establish a meritocracy of ideas with clear execution mechanisms.
We instituted collaborative leadership development across the entire organization with the innovation principles, and innovation execution provider creation being a big component of that collaborative leadership development.
And then, if you do that chronically consistent for many years by 2018, just eight years later, we our professionals were identifying, prioritizing, and executing more than 2000 innovations per year.
In this, innovation has provided additional IBA for the company in the order of greater than one billion dollars in additional EBA da.
And this $2 billion company in 2010, by 2018, was a $35 billion enterprise without any other comparative advantage other than its culture.
So I want to wrap up and do a takeaway here for you.
The way to go for extraordinary in your organization is to impact your culture.
And to impact your culture. You have to do all those things that I discussed before. Clear purpose, moods and feelings of a strong set of core values, moods and feelings, mindsets, principles, mechanisms that translate principles into actions. Actions. There are value creation actions that showed the behaviors that you're building in this culture of excellence and innovation.
But you need, sure, unleash the power of your people to go for extraordinary, you have to equip them with new ways of thinking. And you need to establish meritocracy of ideas.
Merits a meritocracy of ideas with clear execution mechanisms that they have access.
So keep this in mind, that it's very important, that they are able to access this, this mechanism.
So in summary, I'm going to summarize here for you. Let me go directly to this page.
So, when we discuss what matters most is that ideas, methods, technologists, or people, I want you to remember, all of those things matter.
But none of them matter in isolation.
They are all forces that pull in different directions. You have to find the right blend for your organization, of ideas, methods, technologies, and people. But by all means, the most important component are the people and why we must respect and engage all people. You must identify who are the right people in your organization and the right people in your organization.
They will have great that you want to identify in the straits And is behavioral characteristics. Are I strong sense of purpose alignment between them between themselves and the organization, and their tasks and functions?
Passion, which, again, is more like an arranged marriage.
They have discipline, which is, again, not just falling out of regiment, a set of rules is consistent with their purpose. They have resilience, which is not being stubborn.
It is about having the ability to collaborate effectively to overcome challenges, any fun able to do so, to have the resilience to go the longer road because you, that purpose is worthwhile for them.
So how do find this purpose, passion, discipline, their resilience group in your professionals?
Your job as a leader is to set up a meritocracy of ideas with clear execution mechanisms. Because this real innovators for value creation, they don't work for other companies.
They work for you right now, But they are suffocated, because they cannot, they do not have a mechanism to chew it to translate their potential into value creation for your innovations that create value for the organization. So they work for you. Your job is to find them.
Your job is just set a meritocracy of ideas that have clear execution mechanisms and tell them anyone this organization can do this. Become a collaborative leader for innovation, for value creation.
And as you as as you inspire self motivated individuals just step forward, you're going to equip them with the ability to have a disciplined approach to innovation.
They're because the essence of innovation is just the ability to take a different perspective at problems.
The cat and the kid have a different perspective of the fish.
You need to find these people and equip them with different perspectives and discipline approaches for developing those different perspectives and innovations and most important discipline approaches for innovation execution, which is more than 90% of the battle.
So, with that, you're still going to demand them courage and discipline.
Because it's still going to be scary, because you're doing something new And when you do something new, even if you manage the risks appropriately, you're still going to be a little scared.
So, you're going to have to reduce the fear of failure in your organization. You need to engage them in a system that's for which risks are well managed. And you say, Listen. We have manage the risks appropriately, but we still must have courage and discipline, and we must have the courage and discipline to lead collaborative, collaboratively.
And ultimately, remember, your job as a leader is to create an environment in your organization where these great people and their great ideas, can connect.
Because that's the ultimate accelerator of excellence and innovation and value creation.
Create an environment where great people and great ideas can connect.
Now, there are only two types of people who predict the future, those who don't know, and those who don't know that they don't know.
So if you want to predict the future to be a great enduring organization, the only way you'll have for that is to create the future. And you create the future by developing organizational and professional capabilities around innovation for value creation.
And it is only then, that you start transform your business.
Because the ultimate competitive advantage for any organization, regardless of any, whatever industry you're in, is to build the culture of excellence and innovation as an ultimate comparative advantage.
Now, ladies and gentlemen, I have had the privilege of leading some of the greatest organizations in the world.
Today I'm an advisor and keynote speaker on this topic across all industries in all parts of the world Anda. And this is something that, for me, is a mission, and I'm going to be doing that until the day I pass.
So, the reason I do this is because I have seen the benefits of value creation from culture, business. and then meaningful digital transformations that create value for professionals, for organizations, for society.
And when you find that, working for your organization, you're going to see that you're going to become an incredible engine of excellence, of innovation, of value creation, and then you know that you are in a transformation that's worthwhile.
So, we're going to wrap up the presentation now. If you want to follow the journey that I have across all industries, on accelerating excellence, innovation, and transformation, you can follow me on LinkedIn. You can see, you can check out our site and direct connection, and I hope to see you on this continuous journey. Now, let me wrap up the day here, by setting up what we are going to have tomorrow.
So, let me stop my screen sharing and go back and change my hats back two.
To the, to the conference facilitator for you here, and the, oh, this is my innovation background. This is my digital transformation leader background. So, I hope you had a good day today. I hope that the sessions added value to, to your respect and new ways of thinking for your own organization and how you tackle the challenges of digital transformation.
And then I want to set up what's coming up tomorrow because tomorrow, we have a fantastic lineup, again, of cross industry leaders and practitioners on transformation. We're going to start the day with Rodolfo ...
Rivera who is the Chief International Council for Fidelity National Financial and he's just going to have a discussion with you about leading culture of business and digital transformations in the financial industry.
Now, that will be followed by a fantastic presentation from one of the most successful culture business and digital transformation programs they're happening right now, And this is Mars Corporation, Not the Country. I'm talking about the com, not another country, not the planet, Mars, I'm talking about the company here.
Mars is leading an incredible, successful, digital workplace stress formation, and we're going to have one of them.
Most fantastic Leaders Lead ..., who is the Global e-commerce, e-commerce, Enterprise, Architect, and Innovation Strategist for Mars. And he is going to be taking the time to share with you what's happening on Mars.
Today, the name of the session is to Learn How Enterprise Architecture Leadership Delivers value based Strategic innovation. I challenge you for tomorrow during the March presentation. Listen carefully. Joy, He's saying. Remember, while we have just discussed, because our posit that while Mars is doing is exactly the application of the concepts that we just discussed. So wonderful example for our fantastic leader on transformation.
Then we're going to have two additional have you Waits with us?
We're going to have the Director of Digital Workplace Services from Campbell's Soup Company Campbell's Soup is incredibly successful. Their transformation journey has been fantastic.
And we're going to have James Craig with us who is the director at Campbell's Soup discussing the journey to superior customer experience.
And then, we're going to wrap up the mode the day tomorrow.
We have another fantastic presenter, a fellow Brazilian who was born in Brazil, and the Soul was this gentlemen. His name is Markus ... and he's going to be calling use if broadcasting, if I'm not mistaken, from his headquarters in Switzerland.
He is the global leader for operational transformation at Johnson and Johnson and Marcus is going to be sharing with you with very great detail the digital operational transformation that Johnson and Johnson is going through. It's a fantastic presentation.
You do not want to miss it, so I hope that you can connect with us back again and that's just, they chew, and then we're going to have day three. In the meantime, do have questions. You want to thank our sponsors, need, text, and work board for allowing you to access all of this content with no or no cost.
Please go to LinkedIn, under my name is Joseph Paris. Make a comment there, Say thank you to the speakers for sharing their time and expertise with us. Say thank you to our sponsors. Ask questions if you have questions. That's just another way of youth for you to engage between today and tomorrow.
Thanks, everyone, for our great questions, and engagement throughout the sessions today, and, and I hope that we can continue this discussion, and I hope that you can continue asking this wonderful questions.
And, and engaging on this discussion meaningfully, because all of you are playing a role in the transformation of your organizations. And, we have incredibly experienced leaders among us here, and we learn and share a quarterly. And, though we all, we all create the future, when we learn and share at this level that we're doing here. So, let's remember, the only way to predict the future is to create it. And this is why we're doing here. Have a great rest of your day, wherever you are in the world, and I'll see you back tomorrow at this channel.
Innovation & Excellence.
José Pires serves as the Global Excellence & Innovation (E&I) Leader for Andeavor Corporation, where he oversees the global identification, prioritization, and execution of mission-critical business improvements and innovations that add value to the company, business partners, and external clients in multiple markets.
Prior to his current role, Pires held Excellence and Innovation leadership positions in large, global companies in electronics (Sony), semiconductors (Cymer-ASML), food (Nestlé) and infrastructure (Black & Veatch) industries. Throughout his career, Pires developed and refined E&I as an award-winning program for innovation, leadership development, strategy execution and value creation globally.
Pires is an advisory board leader and keynote speaker for several global conferences on innovation, operational excellence, leadership development, strategy execution, business transformation, customer engagement and growth acceleration.
He holds a Bachelor in Engineering Physics from the University of Kansas and a Master in Business Administration focused in Investment Banking and Entrepreneurship from the University of San Diego.
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