Courtesy of WNW's Martin Kunze, below is a transcript of his speaking session on '' to Build a Thriving Enterprise that took place at Process Mining Live Virtual Conference.
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And specifically of digital transformation, there is no digital transformation without business transformation and cultural transformation to achieve enduring greatness.
And I'm gonna, I'm gonna change hats because we're going to be talking about unleashing the power of great people and organizations and that we should do them.
We need to engage our organizations on multiple levels, and we need to find out who are the amplifiers of the initiatives that we care deeply about in our organizations. So the theme here changes a bit on my background, as you probably can see.
And I'm going to share my presentation with you.
And, and you should be seeing that coming through momentarily here.
There we go.
And we are on, alright, unleashing the power of great people and organizations. So this people who are behind me here, the people who are in your organization, now, all that I'm going to talk about is not some some book that I read or some theory that I think sounds really good. Everything that I'm going to share it with you is based on empirical evidence of over 30,000 excellence innovation leaders globally.
Does this represent over 100 organizations in more than 20 countries? This is empirical evidence. This is not theory. If there is theory, it hasn't been applied. It has been observed to work.
I'll tell you out of this group, if I look at the Great Enduring organizations and leaders in this group, they do not have the ability to predict the future. Although many of them are in the are called to be visionaries.
But they are not visionaries. They do not have the ability to predict the future. What they do is that they are highly empirical. They experiment constantly. They see what works. They see what doesn't work. And once they see something, that they try to understand, why it works, and wants to understand why it works, they scaled that with incredible levels of discipline.
But let's, let's go and take a look behind the scenes and see what those organizations and those leaders look like.
First of all, I'm going to be talking about greatness here, which is highly confusing, because if you look at a total distribution of the population, of people in organizations, greatness, by definition, is at the very tip of that distribution.
And this, this and the tip of the distribution has very specific behaviors that are different from the rest. And there is no way that you can maintain the position of greatness, by the way.
Bye, bye. Bye just exhibiting those behaviors over a short period of time. You have to be chronically consistent with those behaviors with a long, long period of time. So, keep this in mind because some of the things I'm going to talk about are made may seem counter-intuitive and confusing, because I'm describing a very narrow slice of the overall population, OK?
So, my, I have a question for you to get us started here, and the question is, In this journey of achieving greatness, through whatever transformation we have, whatever technologies that we have, what do you think that matters most? So, put on these submit questions, submit a question, and tell me, oh, you know what, I think, what matters most of my journey for digital transformation, are the ideas that we're going to come up with, on how we're going to create value for our organization? Through digital implementation. Oh, no, no, no, it's gonna be the methods, it's about the discipline framework, because we know that without the discipline framework, we can't get, you know, we can't get it right. I'll just say it's going to be about technology. Is the right explanation of technology, RPA, NLP, process mining, AI applied in the right context for value creation, so it's going to that, is it that's the biggest driver. Oh, no, no, no, it's going to be people. So what is your opinion? Go into the questions box right now and essentially submit your opinion. It's anonymous. Nobody else can see. I can see it, but nobody else can see what you're saying.
If you have to pick one out of this four items, or what matters most on your transformation to achieve, enduring greatness, what would you say? So is it ideas? Is it methods, and technologies?
Or is it people, submit your questions right there. I already see them coming through. Awesome. I'm keeping an eye on them. Ideas matters. Technologists are people. You have to pick one. Which one do you pick, and are you working on that? So pick one, keep voting as we talk through this, I'll give you the answer later on. There is a right answer to this question.
So the journey for transformation towards enduring greatness is not an easy one.
It's an arduous journey, and it's artists because it requires you to have vision and the and envision what that state looks like for your business, for your organization, for how you serve society. Then you have to think about how you're going to achieve that vision. And that requires a level of innovation in that journey.
And as you're doing that innovation towards that new vision, you are transforming the organization.
But, there is no digital transformation without business transformation, without cultural transformation. And cultural transformation requires personal transformation, because organizations are just like individuals there. They're there. They represent our collective. So, there is no culture, organizational transformation without individual personal transformation, And this is why it is so hard. And this is why you hear about all this great technologists failing left and right, 80% digital transformation failures. You know, billions of dollars on systems that are like put aside overtime, you know, and that you don't really, you don't really harvest the value creation quotation of those systems. Why is this so hard?
Well, transformations are hard because cultures resist what they most need to change as simple as that.
Because organizations are like people, they are not wired for change.
They weren't created for an original purpose, and then they were told to behave in certain ways to fulfill that purpose, and then you start changing things on them.
Know, everybody in the organization, once they're wired for safety and predictability, this business of change, and transformation, this, it sounds like consultant speak, because they make a living out of that. For me, I do not want, its change is fine, As long as you're not affect me, Transformation is even more radical, because now you want me to become something else.
So this is really, really hard, and it's easy to overlook, and just start thinking and focusing about one of these items. Oh, you know what, this is a bit overwhelming, so you know, I have control over this little span here. So, what I'm gonna do is that I'm gonna focus on ideas.
And ideas are very important, because we need to get all this input for from the organization. We need to have a broad view of the possibilities, so that we can prioritize and identify what creates the most value.
But ideas are everywhere.
What are uncommon in your organizations? Are people willing to put the reputation behind those ideas?
Why we are going to states methods, ... method. Because, yes, you said ideas are where we need methods. We need discipline framework to identify and prioritize the right things to do.
Well, sounds good, Bill. But I have been a Lean six Sigma, a certified Lean six Sigma Master Black Belt for three decades. And for most people, people, that sounds like a dangerous mental condition, doesn't help them.
Because if I if I'm just taking methods to transform a business, I'm going to find out very soon. The methods do not transform businesses.
All right. All right. Just forget about it. So I'm not going to talk about being a Lean six Sigma master Black Belt anymore. I'm going to focus on the exponential technologies. Are revolutionizing our world today.
Well, technologists are great. All of the exponential technologies that have been enabled by this acceleration of Moore's Law over decades now are are here with us, time of exponential change.
Technologies are awesome when they're enable your processes to deliver value to the client.
But remember, the technologist's can also make stupid happen at the speed of light.
And there's a lot of that going on today. That is just cool, neat. And we got to use it. You gotta figure out a way of using it. So you end up enabling, not the right things in your processes. So OK, OK. I got a tricky question, right? Well, it lets people, I had voted for people anyway, because I hear all the time that people are our most important asset.
Well, Caio, that sounds really good, but why is that? Those organizations that I work with, when we do margins and acquisitions, the first people to go are the people, but the assets stay there.
So there is a contradiction here about them being the most important asset. I am not talking about the nice things. I'm talking about. The reality of things I mentioned early on. There's an empirical journey. Not a theoretical journey in front empirical standpoint.
Obviously, from a human value perspective, all people matter.
But the reality is, that, in your organizations, there are people who matter disproportionally, and I'm going to tell you that those people are the ones that you have to identify the people who amplify the behavioral traits of the transformation that you are trying to implement in your organization.
Now, which one is most important?
None of the above, and all of the above. It is a tricky question. It's about the intelligent blending of ideas, methods, technologists, and people. And this can be confusing because the world of greatness is highly confusing. The world of greatness is filled with contradictions.
And people and organizations, they'll I like to live in this black or white world.
They were going to really struggle and that's one of the reasons that very few people and organizations will achieve it may and sustain greatness because just achieving greatness required, the intelligent blending of this force is the ball in very different directions. You requires the mastery of contradictions in the world of mediocrity.
People spent endless hours and days, choosing between option A or Option B in the world of greatness. They realize that most often, the best solution is the intelligent blanding of AMB.
It is not a balance.
It is an intelligent blend that is effective for your context.
So there's lots of contradictions. We're gonna be talking about the need for purpose and discipline. We're going to be talking about the need for explanation technologists.
And human values of trust, of collaborations, vulnerability.
So, and there is no greater contradiction, then, the contradiction between excellence and innovation to achieve greatness.
Because, if you look empirically and I asked you to do this.
We have done this research for over 30 years, not only from a theoretical standpoint, but from a practical standpoint.
But I asked her to examine your own experience that look back at the organizations and people who are enduringly, great, not only achieving greatness, because that's actually easy compared to sustaining greatness. So they achieve greatness and they're able to sustain that greatness. Look at that subset.
And now, and I will now share with you what we have learned.
And I bet that you have experienced something similar.
Those organizations, they are not the most excellent organizations in the world. By all means, they have high performance standards, and they meet and exceed those performance standards consistently.
But, if they only do that, they will eventually become obsolete. So, the greatest, enduring organizations of our time, they are not just the most excellent organizations.
Now, you may say that, oh, OK. God is just say, I know you love patients must be about innovation, right?
The great, enduring organizations of the last of the last, not always century, but historically speaking, they are not the most innovative organizations. Oh, that sounds contradictory. Now, they are not the most innovative organizations. They do great innovations, but they often fall in love with innovation or technology.
And then they lose sight of their purpose, and they scatter.
The most innovative organizations at it are not the great, enduring organizations of our time.
So the gradient doing organizations are a time are the organizations that have a intelligent blinding of excellence and innovation. Now, this sounds simple, but it's incredibly difficult, because excellence and innovation pull in very different directions, and require behavior traits.
There are contradictory in building a culture that has contradiction, as as a, as an inherent element of that culture that has strong weight on excellence, but also innovation. Now, if you're on the horse, business, by all means, you have to squeeze efficiencies out of those horses. You have to make them faster, cheaper, stronger.
But, remember, so this is the world of exos, the world of innovation, and Sydney over here, and say, Wow, listen, I don't get your design cars by squeezing efficiencies out of horses. So it almost has a disdain for that other world. And then the reality, what do you find a great enduring organizations? Is that what they have is both. They have high levels of excellence in their existing business and core.
And the Jason says, yet, they have the capability to step away from the excellence, Look at it from a distance, and say, there's gotta be a better way, not a five or 10% better way, a 5 or 10 fold better way that we can take a completely different perspective of this problem. And that's the innovation piece. But this is the most important portion. When you have that innovation piece, you do not become dominant by just continuously innovating on that piece.
You become dominant by scaling the innovation you have created better than anybody else. Do you know how you scale innovation consistently with your purpose?
You scale innovation consistently with your purpose, by applying the principles of excellence to the innovation that you created.
So, although Exxon's in innovation, dislike each other, they are fundamental in a partnership for achieving and sustaining greatness.
So with that background, I mentioned before, this is not based on what I think about the world. It's not even mining sites. Is that these are the insights of over 100 cross industry organizations in more than 20 countries, and then five organizations that I spend considerable time with, because I was not advising them on anything. I was leading excellence and innovation for them, and I had to live with the consequences of the of the advice that I had for the organization. So, I wanna go very quickly through each one of those organizations, because there is 1 or 2 lessons from this organizations that I want to summarize for you. And I want you to think about these lessons. And I want you to consider about how do we apply these lessons in my organization, in our context. Alright, so I was born in Brazil. I grew up in Brazil. And when I got to college age, I came to the United States.
My background academic background is in engineering, physics, electrical engineering, mechanical engineering, and then grad school in investment, banking, and entrepreneurship. Wonderful, highly educated.
My first job was working for a Japanese giant Sony electronics operations in Rancho Bernardo, California. And in Japan of course now this was like a dream job for me.
And this is my journey of Excellence and innovation where it all has started. And that the lesson from Sony is very simple when I joined Sony.
My mentor and leader at Sony and Boss is his name is ... Son. And I'll give you a short version of my interaction of Ayesha son, but in my first week there, he asked me to identify 100 innovations.
And I was like, Whoa, hold on, I'm the new guy.
I don't have background on this amazing technologies that are going on around here, and he says you must do.
So he put me to work on things that I knew very little about, and he expected me to innovate on those things. I thought I was going to get fired by the end of the week.
And I was, I was, I was totally unprepared for that. I didn't even know what innovation was. I came up 100 innovations by the end of the first week and then on the second week, he said that, I need to do 200.
And I won't go through the details of that, but I'm going to tell you what the lessons were from me.
First of all, it's a mix of fear and excitement because I felt and Napped, I felt that I needed more training.
I wanted to, I needed more knowledge so that I could do certain things, but the lesson from hash is sun is one of the greatest lessons of innovation in my life. When it comes to great innovation.
It doesn't matter where your gender, race, ethnicity, is. It doesn't matter how many certificates you have hanging on the I love myself wall.
When it comes to real innovation.
You, you, you are looking for people in your organization who have some very specific traits, behavioral traits.
And those behavioral traits, they are only they are only determined by the test of innovation execution.
There's no profile or resume revealed that will give me that. I have to create a meritocracy of ideas with clear execution mechanisms. Empower people to go do it. Even if they feel they are not ready for it, they will never be ready to innovate, because you're going into uncharted territory.
So there is no amount of knowledge and training to get them ready. They have to find their way.
But the traits that are exposed by this meritocracy of ideas with clear execution mechanisms are they have a strong sense of purpose.
That includes their personal purpose, purpose, and value, aligned with their professional purpose, and organizational purpose and values, Number one.
That's followed up by tremendous levels of passion, for what they do, whatever that is, And then is followed up by incredible discipline and incredible resilience. So, what you're looking for are people with purpose, passion, discipline, and resilience. Remember that?
Also, you're looking for people who are not experts, because in the mind of the experts, there is only one way.
You're looking for people who are not just novices' either because in the mind of the novice, there are many ways.
What are you looking for are people who can flex their mind from expertise to novice?
You start with the mind of the novice there, you know, where there are many ways of attacking a problem, but then you do need some expertise, mindset, shui scale, the mind of the novice. So again, it's not about one or the other. It's about intelligent blend of this contradictions of expertise. And novice.
When I left Sony, I joined a startup company that changed the world Simer ASM. Now, I was incredibly lucky to join a company that transform Moore's Law in the semiconductor industry.
The organization. I design new laser systems that allow the shrinkage of semiconductor devices to follow Moore's law to this day, we, we emerge circuits with this laser systems.
And this company went from nothing. I have an idea. I have no background in this industry to disrupting the industry and having over 90% market share in a period of five years.
So, the lessons there are twofold: Disruption comes from anywhere.
Just bringing the smartest people in the world, in your company, and having, and and telling them to go innovate and make things better is not going to work.
You need to have a clear, common purpose, and you need to develop capabilities in your organization off, what do we call, collaborative leadership?
Collaborative leadership is not consensus, Building collaborative leadership is the ability to take a group towards a common purpose, even though members of that group may disagree on a whole host of things.
Now, when I left, so remember that lesson. Develop collaborative leadership capabilities in your organization.
When I, when I joined Nastily, their innovation leader, now, we are an ecosystem with 350,000 employees, 585 business units. Where do you start? I don't know.
It's incredibly difficult.
So, lesson on a large organization, this is applicable to any organization, but especially very large organizations. Culture doesn't come in just one flavor. You have multiple layers of culture, but he is the takeaway.
You must have deep empathy for the culture of the organization that you're with. You'll need to meet them where they're at. Because if culture eats strategy for breakfast, excellence, and innovation, and digital transformation, are just side dishes. In the jaws of culture, they're gonna get chewed up and spit out. So meet people in organizations where they're at, have tremendous empathy for their culture, before you have the audacity to try to change their culture.
Now, next, I spent 12 years with an organization that is over 100 years old, developing some of the greatest infrastructure projects around the world, more than 12,000 pure, pure energy infrastructure engineers.
Interdisciplinary, mechanical, electrical, civil structural, chemical, petrochemical.
All sorts of incredibly smart people have been doing things right for over 100 years.
So, we're asked to accelerate excellence and innovation and transform the culture, culture, transformation, business transformation, digital transformation. So how do we do that?
So I'll give you a snapshot here.
For six years, we had a links, a world-class Lean six Sigma Program, and this organization, nothing wrong with that. Lean six Sigma is awesome as a discipline approach to identify, prioritize any, and innovate on, on the, on what creates the most value for the organization.
But there is a problem. If you look at improvement and innovation programs, cross industry, and there's plenty of research on this that you can tap on. You're going to find out that people start and programs, all of them. improvement and innovation program is very excited. The 50% of them are dead by year three.
And 99% of them are gone by year five. Or they start something new.
There is no consistency with their purpose, because they do not create the value that's expected.
Now, in this organization, we had gotten to ear six. So, I was like, Yeah, we're part of the 1% club, right?
And we said, no, know, Yeah, we're moving along here. We're creating value, but how can we create exponential value? How can we derive exponential engagement?
So we stop focusing on just on the ideas, and the methods, and the selected field that we think have the answers.
Let's apply the principles that I mentioned to you, that it's not about ideas. Methods are technologists, It's not even about people. It is about finding the right people in your organization, people, are, purpose passion, disciplinary resilience, open, that up, let them come in and see why you have, OK, and how can they contributed, make a voluntary click? Create a meritocracy of ideas with clear execution mechanisms for them, and tell them you have to do nothing.
Yes, you heard it right. It's completely voluntary.
You have. We only want people here who believe that they can collaborative lead, and execute on innovation for us. Now, when I presented that, you aren't my CEO, he thought, you're crazy. This thing is going to blow up. It's not going to go anywhere. People are going to hide.
Now, you have to inspire self motivated individuals to join, and then you have to create a system that's transparent and clear on how they are going to be part of it.
And we did this, and what I'm showing you here is not the theory, is the actual results.
Over a 10 year period, what we saw was not a degradation of performance by doing that shift.
What we saw was an exponential increase in engagement and in value creation, over 800% improvement in engagement over tenfold improvement. Involuntary engagement worldwide with more than 5500 professionals, collaborative leading improvements, and innovations that create a value for the organization. And, now, again, the message here is this shift from ideas and methods and NPL and AI.
And this technology, too, the real entrepreneurs, the real innovation accelerators, the real value creation leaders in your organization, that can be anywhere in the organization. You need to allow them to emerge in your organization.
Now, the last stage of my corporate career, I was the global vice-president for a very large Fortune 100 energy company. But this company had the head the theme of going for extraordinary. But they were anything but extraordinary. When this journey of transformation is started with them is 2010 and 2010, they were a $2 billion enters your organization at that time. They had been pounded by the 2008 financial crisis. And they were really struggling to come out of that. They have been around for a few decades and they really had kind of hit that mediocrity threshold.
Because they there had a $2 billion market valuation which was less than there.
Book value of their assets at that time.
So, what's going on at this company? There comes a new CEO, and then you'll see, Oh, says, You know what?
We're going to build a culture here that's going to have excellence as a foundational and entrepreneurship, as foundational in an organization that it's, you know, in a, in an industry that is very, very traditional.
So, there is no doubt, there was a culture that was that was that SCO support should do it. For me, it was like the greatest playground ever, because all these concepts of excellence and innovation that I mentioned to you, we could implement right away with strong leadership support. So what do we do when to implement a meritocracy of ideas with glue your execution mechanisms? We develop collaborative leadership widely in your organization, accessible to all. We made a volunteer for Lee emerging senior leaders to get engaged, and drive the most value for the organization. And they did that. And by 2017, there are delivering over 2000 innovations for ear, greater than one billion dollars in financially validated additional EBA for the company. And this $2 billion company in an eight year period, became a $35 billion enterprise.
They had no specific comparative advantage other than their culture.
Widely disseminated, collaborative leadership, and innovation execution skills. Show, let me pause here occasions at what does it take away from me?
Develop collaborative leadership and innovation execution skills in your organization Should they create a meritocracy of ideas with clear execution mechanisms to unleash the power of your people to go for extraordinary. If you are able to zoom mean in this picture, you'd see myself with 14,000 people.
Innovation is a full contact sport, OK, you have to be where people are at. You've got to meet them where they're at, where their culture is app. And you bring them along with a meritocracy of ideas and clear execution mechanisms. and they will, they will come along. You have to inspire them, and provide them the clear mechanisms to translate the principles into action.
So, think about, are you doing this for your organization right now? Or you're just too concerned about how you're going to implement process mining in this one area.
Nothing wrong with that, but you're not going to be able to scale your organization by just doing this, this tactical one point things. You need to think about how you're gonna create a system in your organization to scale the power of your people to go for extraordinary.
Now, this is all very good. What is the background for all this stuff?
The background there is that in 10 years, 40% of the Fortune 500 companies no longer exist. That sounds terrible. But it's the reality. As a matter of fact, it's not even a future prediction, it's a past prediction that was wrong. This was predicted in 20 11. I had gone to conferences like this and I'm telling you in 10 years, we're going to be 40% of Fortune 500 no longer exist. People will say, I wish I was like come on, That's fear mongering.
Well, Bill guess what happened in 20 19 before the pandemic so that you don't think that the pandemic distorted this data.
More than 50% of the Fortune 500 companies roll or no longer existed. So yes, this prediction was wrong. It was greater than 40%.
And it didn't take 10 years. It was within 8 to 9 years when that happened. Now, this change, because of macroeconomic forces and the exponential pace of technology that we have today that is unprecedented in the history of mankind.
Because of this forces, this space of change continues to increase. So we're not gonna wait another 10 years to see a repeat of this. We're gonna see that in the next five years.
Now, the question is, whoa, now I'm totally overwhelmed. How can I predict the future in the world that's changing so fast?
Well, I'll tell you, you cannot, 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.
You cannot predict the future. When it's non-linear and exponential.
It's, it's not going to work. You're going to miss it.
So, all that you can do is to develop some capabilities personally and organizationally so that you can do better in whatever future happens.
Now, here's what organizations still tried to do today.
They get around this big tables, steering committees, and, and the board of director meetings, and big meetings, and they tried to predict the future, And the, and they fail because they cannot, But, they still spend millions of dollars on experts and forecasting and scenario planning, which cannot predict the future, but make them feel better, because someone told them, with some expertise that that's going to happen.
Nobody can predict the future. I'm not saying this things are not useful at all. They are not useful for predicting the future.
And they can only provide you a very best rough directional guidance, and that's it. And I'm not saying you don't do any of these things.
What I'm saying is that you have to understand the limitation of these methods, because there is no, no, there is no method like that, that's going to predict the future. The best way to predict the future, the only way to predict the future is to create it, and this is not new, it has been around for centuries.
You know, setting the stage for innovation in organizations in society is not something new.
Now, it's very misunderstood because there are so many platitudes talking about this thing. So I want to dismiss, defy and talk a little bit more about the mechanisms to accelerate innovation for value creation.
So first step, please have a definition of innovation in your organization that it's accessible to all and that people can do something about it, OK? So if you want to have extraordinary innovation, you must define it in ordinary terms.
Accessible to all that means that I don't have the time to go for the FOI illustration, but I'll summarize by telling you that, know, the word innovation means the root word in the means new idea. So it is about a new idea but new ideas as it was discussed before are everywhere.
What you're missing are people willing to put their reputations behind those new ideas.
The other problems that new ideas, most of them, they are, they are like, not good, and most of them, they create no value.
So it's not about just new ideas. And you say, OK, I got it, because I need new ideas that create value.
Yes, Bill, you're getting close, but new ideas that create value is not it either. Because if I go into your organization, you have a cemetery of new ideas that great value.
So, what is missing? What is missing is implementation. So for you, to have a full definition of extraordinary innovation in ordinary times, you just have to say it's the implementation of new ideas that create value. That's it.
Now, but this is incredibly difficult, because this implementation is incredibly difficult. It's not about coming up with ideas, it's not about coming up with ideas, that create value, is about implementing and realizing the value that makes it so difficult. And, then, there are different levels of innovation, not everything that we do, is, is, is, is just, you know, disruptive innovation, which is what you see, 100% of the media, the coverage is covering, what I would term, disruptive innovation. There are very interesting, but by no means is one, but the most innovative organizations do, the most innovative organizations will have a portfolio of innovations at the core and adjacent seas, and at disruptive with very specific and distinct innovation mechanisms.
So, I'm going to touch on this briefly, but remember this, your employees look at what Google, Facebook, and Tesla do on TV. And they start thinking that, that's what innovation is.
That is the wrong definition of innovation. Because, if you work directly with those companies, you're going to see that their portfolio of innovations is much closer to this ratio that you see here.
But the immediate only covers, they'll did last 10%, and you also have to have the mechanisms in these organizations for through which this, this takes place.
So, to summarize for you here on how some of this key concepts and mechanisms work together, there is an innovation value creation maturity level in every organization that's doing well.
They typically started with a very bright startup leader or organizational leader, individual brilliance. That person has passion, discipline, resilience, and they create a multi-million dollar business.
There will never be a multi billion dollar business, unless they develop the next level capabilities.
The next level capabilities are systems and mechanisms for innovation, They include clear governance for innovation, a clear structure with roles and responsibilities for innovation. And I clearly identifiable growth and technology accelerator as part of your organization as well. That gets you to be a multi billion dollar organization. And this is what really, most of the organizations are striving for today.
Now, then, there's a very, very small group that has achieved enduring greatness when it comes to innovation, and what those, what that very small and select group has builds on all of this things with collaborative leadership and innovation, acceleration skills, development, widely done across the organization.
It is built on an organization of a clear purpose, with a culture that's aligned with that purpose and a strong set of core values. There are a line of that culture.
And then they have mechanisms that translate the values and principles into value creation action.
So, with that, building, a culture of collaboration, innovation, and value creation, is the ultimate competitive advantage for any organization.
The devil's in the details on how you build that, and you have to build that by exhibiting the behaviors that are aligned with your purpose. They're aligned or fair culture. Aligned with your core values, align with value creation, because innovation and value creation are inextricably linked.
If you, if you cut the link, you'll no longer innovating So, very well.
So, let's reveal what matters most: ideas, methods, technologists, or people.
While we discuss this, people, all of them matter. It's intelligent blending of all of these things, and you need all of those things.
But you, the matters, most, if I have to pick one, is not just the people with the right people, the people who are going to amplify, the cultural behaviors that you want to have emulate in your organization.
So what does this people have jobs that? What did these people have? They have four traits. There are only revealed by the test of execution. You're mining for gold in your organization. You're looking for this balloon behind me here, OK? So this, people have four traits. They have purpose alignment. They have a high level of passion. I don't have time to go deep on this, but I want to just say that passion here is not like romantic love.
Passion here is like an arranged marriage, people who work their face off on something, and they develop the skill and the passion for it.
Then discipline, which is not just falling a regimented set of rules, it is about being chronically consistent with your purpose.
The signature of mediocrity is not an unwillingness to change. The signature of mediocrity is chronic inconsistency at the personal level and at the organizational level.
And lastly, Resilience, which is the ability to overcome challenges collaboratively, that's why collaborative leadership skills are so critical.
Now with them, I'm going to spend the next few minutes here showing you what the mechanism looks like, and I'm gonna play a little bit. So I'm a little bit of elaborating on this. But this is the truth. In most organizations, there are even, I'm gonna look at organizations are actually doing well, OK. It is organizations are doing well.
If you look at these organizations and if you look at the senior in the emerging leaders and those organizations, 9 you 80 to 90% of them are kind of sour faced. I mean, what's going on here? This people make good money, and they were kind of like, they're not happy with what they're doing. There is not a very good alignment between their personal purpose and their professional purpose. Although, they make good money.
No, I can't, don't have time to go deep on that research, But it's out there. You can go look at it between zero and $150,000 in the United States.
When you increase your income level, you become happier beyond $150,000 to billions of dollars. There is no correlation. It's a flat line.
And there's people who are leading those organizations are typically doing pretty well. But there they don't have that purpose alignment. So what can we do here? If we're going to be great, not just good.
What we need to do is to create a meritocracy of ideas with clear execution mechanisms. We need to inspire self motivated individuals. Just say that, hey, we have a mechanism here that allows you to drive value creation and the strategy execution through improvements and innovations.
You do not force anybody to go through that. You just inspire them. Let them volunteer in.
And then you create this clear mechanism with very disciplined framework on how you're going to identify, prioritize, and execute on what creates the most value in the shortest time. And simplest, means aligned with your purpose, align with your culture, a line of your strategies.
What you'll find out on the other end of this is that you those who have the passion, the discipline, the resilience, they will get it done. You'll be hard, but they will get it done once they get it done.
You promote them to the rest of the organization along with their teams. You are democratizing innovation. Your organization.
Others now can look at it and say, Hey, no, if if, if David can do it, I can do it, too. And the, and by the way, I was sitting on the sidelines, because I was waiting for this, for this plane to crash, and burn, but it did it. Actually, these people are delivering a lot of value, and so maybe I can do it, too. And they started getting engage on this, a clear execution mechanisms, again, for engaging them, and the driving, the right, the right initiatives in your organization.
They're aligned a strategy, and, or value creation.
Now, if you do this chronically consistent with your purpose, you're gonna start exhibiting those behaviors that you want to be part of your in your culture, the Neil Behaviors. I kneeled transformation that takes place and over time. And this is again where the very few organizations in the world ever achieved this level.
You're going to have full alignment of everybody who is in their organization or at least most of the people who are in the organization. And those who are outside one are coming because they see a way of using that organization as a way of aligning their purpose personal and professional purpose.
There is no life balance that is a hoax, various work life, bland. That makes sense for every individual in that organization, a certain period of time.
Now, to summarize all of this, ladies and gentlemen, wrap up our session today.
For you to accelerate excellence and innovation and your transformations, you don't have to go hire experts and technologists from other places.
You need to look at your organization and you need to create a meritocracy of ideas with clear execution mechanisms.
And you need to inspire self motivated individuals in your organization to join your journey, because it's a worthwhile journey.
Most people will not join you, but they feel who will, you are obligated, to equip them with collaborative leadership and innovation execution skills. You're going to teach them how to take different perspectives at problems.
You're going to teach them how to develop the courage, to take on risk, manage the risk of quarterly, so that you can have this proportion of success, And you're going to create an environment for everyone, where this great ideas and this great people can connect.
Because if you look at innovation for value creation, historically, across cultures, that happens when we create environments on purpose or by accident where great people and great ideas can connect.
And you'll have to create that environment in your organization.
Now, you and I are no better at predicting what's going to happen in the future.
I would posit that based on empirical evidence over centuries, nobody can predict the future.
But, we can create the future. And we can create whatever future makes sense to your organization. By building your cultural culture of, with strong excellence and innovation. Contradictory, Remember, forces that do not like each other. You have to build them in your culture so that you can effectively create the future, where you can add value to our stakeholders. So, building a culture of excellence and innovation as a strong component in your culture, is your ultimate competitive advantage.
This takes chronic consistency over a long period of time, But if it's, but it's a journey, that's very rewarding and worthwhile. If you do it right, because you're going to multiply your leadership, You're going to support the growth of collaborative leadership skills, and innovation execution skills in your organization. And you're going to see personal, professional, and organizational development happen in front of you in a very tangible way, in a very measurable way.
So, you all know me already, I just want to wrap this up, that, you know, I retired a few years ago, and between now and the day that I die, this is what I'm going to be doing.
And because this is the way that I serve society, the way that I see my own little mind on the way that I use my craft to serve society. So find what you are meant to do.
and then commit to the ardor of pursuing that with excellence.
And I hope you'll never retire, because there are only two stages in life.
You're either growing or you're dying, and you have to decide which ramp you're on.
So keep growing. Keep growing, until you can no longer grow.
So with them, the journey is every with us here at the conferences. But also, you can contact me and specific on LinkedIn, you can see the journey that we have on a week to week basis. So thank you for your time. I see some of your questions. I will reveal them are immersed on them, take them to LinkedIn, contact me directly, and we carry on the conversation. Now, let me change hats here again. I'm going to stop sharing my presentation to you.
And I'm going to go back to the, I'm going back to my ... background.
There we go, and let's talk about what's coming up next, and, and what's coming up next here is a presentation from the Group Systems and processes leader at the engineering contracting company. And this is a BPM journey in a construction company, which is part of the SEC group, with highlights on process and task mining, automation, and digital transformation. We're going to have directly from Dubai, and the beautiful United Arab Emirates Omar moorad with us and Omar is going to guide us through this journey of transformation that he is that he is leading at the SEC group. So, again, we have a few more examples here of that journey towards and during greatness, with some of our speakers who are going to share their expertise with you. Hope the session was useful for you, and I'll take a break now, and I'll see you back at the top of the hour.
Head of Process Excellence - the Process Mining and Digital Twin Factory,
After his diploma in business engineering in 2003, Martin Kunze started at KPMG in the Post-Merger Integration Division for big clients all over Europe and the USA to consult in IFRS, US GAAP, and HGB.
In 2008, he joined Süd Chemie AG as global manager for corporate business services to prepare their SAP Finance and BI Systems (HGB/IFRS) for the envisioned MBO from One Equity Partners.
By 2010, Martin moved to The Linde Group (DAX30) as a global process owner for AP/AR and cash management. In his 10 years within Linde, he implemented a global card and alternative payment solution, helped to roll out the group-wide used banking interface, and supported several vendor payment and customer cash allocation platform installations.
In 2017 Martin was appointed to Head of Process Excellence, taking care of process excellence in all operational finance areas (RTR, AR, AP, CO, AA) and led the establishment of Linde Group’s robotics process automation initiative with his IFRS, US-GAAP, and HGB know-how.
His current responsibility is the setup of a “Process Mining Factory” for the Linde PLC, to support the decision-making and synergy gain process in the post-merger situation.
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