Total System Change Intervention: The Need for Inclusion

Organizations interested in total system change often over-focus efforts on new policies and procedures, as if transformation can be accomplished solely by rewriting the rule book. When we talk about organizational culture and total system we are talking about the collective mindsets and behaviors of the people within an organization: how they interact with and treat each other; how they partner and work as teams; how they recognize a team's performance as key to organizational success; how each person brings their ideas, perspectives, and experience to work; and how the workforce joins leaders and leaders join the workforce. Mindsets drive behavior, behavior drives performance, and consistent performance leads to sustainability. Focusing on mindsets and behaviors is critical if you want to drive higher operational performance.

One of the first steps toward total system change is moving toward a culture of inclusion that values and leverages diversity. This sets the stage for more open communication, a broader palette of ideas, more comprehensive problem solving, and other benefits that directly impact organizational performance. When all people are engaged as partners and can do their best work, an organization unleashes an untapped resource that has power to achieve nearly any operational goal. In such an environment people are more willing to bring their primary and discretionary energy to their work; the workplace becomes an environment of engagement and trust where people are willing to raise issues and solve problems that impact performance.

Build a solid platform for change

Engage the workforce in a compelling imperative for transformational change

The work begins with the development of a clear organizational imperative that makes explicit the need for transformational change, especially in organizations where previous change efforts have been seen as short-lived. People need to see a clear connection between new mindsets and behaviors and the organization's operational performance, and they need to understand what is in it for them to join the change effort.

Some organizations find this a challenge when it comes to creating a culture of inclusion. Too often inclusion is defined as a nicety rather than necessity. The organization needs to establish clearly that accessing multiple points of view, leveraging people's full range of talents, and creating stronger teams and partnerships lead directly to higher operational performance and greater achievement of the organizational mission and financial success.

Keep the goal in sight

The imperative for a transformational change effort must be strong and directly connected to an organization's vision, mission, and performance objectives. The next step is to diagnose and clearly understand the current state of the organization--the mindsets, behaviors, expectations, actions, and approaches that currently define how people partner, work in teams, and work across the organization. Then develop a clear picture of what these elements would look like in the desired state once total system change has been achieved. These two snapshots become the basis for a From To culture map that will help guide the change effort.

Make leadership strong and accountable

Total system change cannot be achieved without senior leaders who champion the effort, dedicate resources to it, model the new mindsets and behaviors, and stay the course through the inevitable turbulence. Leaders must be held accountable for the success of the effort; the change work must be a critical job responsibility for all leaders and team members, with appropriate measures and metrics to demonstrate improved operational outcomes.

In addition to senior-level leadership, the effort needs to involve formal and informal leaders, including front-line people and individual contributors whose standing among their peers makes them influential focal points. Finding ways to enroll these thought leaders at all levels is essential to reaching the critical mass necessary for transformation.

Develop specific actions

With a From state defined and a To state envisioned, the organization next needs to develop specific strategies and actions that will close the gap. These strategies and actions need to be focused at the individual level: what are the specific mindsets and behaviors each person needs to exhibit in order to drive greater performance? There must also be consideration for the teamwork needed and the cross-organization partnership: new policies, management emphasis, and institutional practices that create an environment in which new mindsets, behaviors, ways of doing work, and partnering can flourish.

Build momentum for change

Identify new competencies

The old skill set reinforced the old ways of being and operating. To transform an organization, new competencies have to be identified and promoted. For example, one new competency required to build inclusion is to accept working through conflict as a positive contributor for organizational success, and to understand conflict as the inevitable consequence of a diverse group bringing thoughts and perspectives forward. In the past, conflict may have been seen as negative and counterproductive.

Once new competencies are identified, they need to be incorporated in all areas of the operation, including hiring and promotion decisions, accountabilities, and training. The organization needs to invest in leaders to develop their skill sets through education and real-time coaching.

Restructure teams and the organization to support new mindsets, behaviors, and actions

In many organizations seeking total system change, the traditional organizational structure reinforces silos, an unstructured approach to problem solving, and a lack of root cause analysis and teamwork. Restructuring teams to include maximum diversity and create cross-functional groups to bridge the gaps that diminish partnership is necessary to creating the means for greater inclusion. Once these revised structures are in place, there will be a need for skill development to support people in partnering more effectively.

Update policies and practices

Every aspect of operations should be reassessed to ensure that an organization is building a culture of inclusion and leveraging its diversity.

A comprehensive pipeline strategy--from branding to exit--needs to be developed to support greater inclusion and recognize and value teamwork and the new competencies. For example, managers and leaders would need to demonstrate their ability to hire, coach, and develop diverse and inclusive individuals and teams. Reconsidering operations from an inclusion perspective needs to encompass not only how people are valued and recognized, but also the impact on product development and customer strategies.

Create model cells

In order to demonstrate the operational and performance improvements, it is best to implement the initial change effort in one or two carefully selected cells or pockets of readiness. Within the model cell it is important to have individuals who are willing to join the effort, and demonstrate new mindsets and a new way of working.

Establishing accountability is key for success

Accountability is a three-step process:

First, clarify and set expectations. Identify the specific mindsets and behaviors each person needs to demonstrate that will enable the new actions to thrive. Examples include: soliciting team member input, partnering more effectively across the organization and increasing leadership visibility. Establish the direct link to performance; e.g., by increasing input we can make better decisions and decrease cycle time or increase product innovations.

Next, monitor progress. Develop metrics to assess the impact of the initiative in key areas (decrease in sick days and time to identify and solve problems; increase in new customer opportunities and customer satisfaction). Conduct regular pulse surveys to track progress.

Lastly, compare performance to expectations and performance goals. Hold individuals, teams, and functional areas responsible for their performance in these metric areas. Reward achievements and address failings so that consequences follow based on performance.

Total system change begins by engaging people as partners in new mindsets, behaviors, and actions that will lead to higher operational performance. By building a platform that engages all people, creates momentum, requires new competencies, creates structures that support inclusion and partnering, and then reinforces new behaviors with accountability measures, organizations can truly achieve the higher operational performance that is a requirement of firms that want to compete in the 21st century.

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