Organizational Transformation Lead with Culture

Transformation is even harder than we thought
“Only 22% of companies successfully carry out transformation. The failure rate was 78%.”
“Often the business value of digital transformation is not realized. One of the most common causes is an abundance of technology projects, not a true business culture transformation”
- Phil Le-Brun, Enterprise Strategist, AWS

1. Organizational
Transformation:
Lead with Culture
Seta A. Wicaksana

2. Seta A. Wicaksana
0811 19 53 43
[email protected]
•Pendiri dan DirekturHumanikaConsulting dan hipotest.com
•Business Psychologist
•Certified of Assessor Talent Management
•Certified of Human Resources as a Business Partner
•Certified of Risk Professional
•Certified of HR Audit
•DosenTetapdan Penelitidi FakultasPsikologiUP
•PenulisBuku: SobatWay (2016), Industridan Organisasi: PendekatanIntegratifdalam
menghadapiPerubahan(2020), Human FaktorEngineering: IntegratifDesain Manusiadan Lingkungan
Kerja(2021), PsikologiIndustridan Organisasi(2021), PsikologiUmum(2021), Manajemen
PengembanganTalenta(2021), PIODiagnostik: PengukuranPsikologidi LingkunganKerja(2021),
TransformasiDigital: PerspektifOrganisasi, Talentadan BudayaOrganisasi(2021), PsikologiPelayanan
(2021) dan PsikologiKonsumen(2021).
•Dosen TidakTetapdi: Program PascaSarjanaEkonomidi Univ. Pancasila, STP
TRISAKTI, FakultasPsikologiUniversitas MercuBuana, STIKOM IMA
•Wakil KetuaAsosiasiPsikologiForensikIndonesia wilayah DKI
•Pembina Yayasan HumanikaEdukasiIndonesia
•IlmuEkonomidan Manajemen(MSDM) S3 Universitas Pancasila
•FakultasPsikologiS1 dan S2 Universitas Indonesia
•SekolahikatandinasAkademiSandi Negara

3. Transformation is even
harder than we thought
“Only 22% of companies successfully
carry out transformation. The failure
rate was 78%.”
Source: https://hbr.org/2021/09/the-secret-behind-successful-corporate-transformations

4. Purpose and Values in
Organizational Change
•2015 - Alphabet Inc. was prompted by a
desire to make the core Google business
"cleaner and more accountable“
•“Fundamentally, we believe this
allows us more management scale, as
we can run things independently that
aren’t very related. Alphabet is about
businesses prospering through strong
leaders and independence.” - Larry
Page

5. Models for Managing Complex Change
(adopted from Knoster, 1991)
Strategy Organization BehavioralAccelerateTransformed
X Structure Culture Resources People OperationalConfuse
Strategy X Culture Resources People OperationalChaos
StrategyStructure X Resources People OperationalResistance
StrategyStructure Culture X People OperationalFrustration
StrategyStructure Culture Resources X OperationalAnxiety
StrategyStructure Culture Resources People X Useless
StrategyStructure Culture Resources People OperationalGrowth and
Change

6. Purpose and Values in
Organizational Change
•moving from a software company to a
cloud-services company
•Microsoft banded together
•“Innovation was being replaced by
bureaucracy. Teamwork was being
replaced by internal politics. We were
falling behind… When I was named
Microsoft’s third CEO in February
2014, I told employees that renewing
our company’s culture would be my
highest priority.”Satya Nadella -CEO in
2014

7. Focus: Values,
and culture
•Putting our people at the heart of everything we do
•Focused on our four standards (“we know our business and perform,”
“we lead with clarity and integrity,” “we develop self and others,” and
“we shape the future”) to help drive engagement and understand what
these mean to them as leaders, Joel Casse, global head of leadership
development for Nokia

8. Values
•Growing together: We work together to align personal and professional growth with
the need to sustain Nokia’s business growth.
•Leading lights: Our leaders create a working environment in which people can be
open, fearless, and empowered, developing themselves and their teams.
•We belong: We have a sense of belonging at Nokia and feel personally connected to
our colleagues and our work.
•Experience is everything: Our daily experiences enable each of us to be ourselves,
free to focus, create and innovate.

9. The Challenge of
Transformation is More
Cultural Than Technical
•Requires: resilient and adaptable.
•Need culture—the invisible enabler that allows a
broad set of changes
•Leaders don’t act as judges but as allies in removing
obstacles. Being coach teams and treating mistakes
as learning experiences, → feel confident and secure
in their decision-making.
•Culture as an effective guardrails to support teams
in their new-found autonomy, rather than restricting or
frustrating them in their efforts.
•Culture change begins when leaders model the
behavior they want the organization to emulate.

10. Commitment to Change
•Share Common goals and Values
(Microsoft: Unifying Employees around an
Inclusive Vision) → Affective Commitment to
change
•Common focus on initiatives that
prioritized employees, such as DE&I
programs and support for women managers’
careers, (Hershey: Leading Through DEI) →
Normative Commitment to change
•Competitive pay and access to health
care. (PayPal: Strengthening Employee
Financial Wellness) → continuance
commitment to change

11. Build a learning program that addresses key
change resistance factors.
•Selectively Processing Information
— How do I seek solutions beyond
what I know and not focus on
problems?
•Habit Enforcement — How can break
them and establish new ones?
•Being Fearful of the Unknown— How
do I get over that feeling of losing
power or control?
•Feeling Insecure— How do I feel
comfortable that change will still keep
me in a job?
•Not Valuing the Change— How do I
build an understanding for the
rationale of the change?

12. People Are the Catalysts of Successful Transformation
Setting a business change strategy means setting a people change strategy.
The firms that listened with intention to their employees and matched their company engagement accordingly
achieved transformational success.
To help people to adopt new behaviors that can translate into an organization’s business goals, we need to first
set an important cultural value within the organization—we must embrace a learning and growth culture
Corporate values when developed into activities
Leadership can play a huge part in being role models for change, to inspire their people to think and act
differently.
process change and behavioral change go hand-in-hand

13. “Often the business value of digital
transformation is not realized. One of the
most common causes is an abundance
of technology projects, not a true
business culture transformation”
- Phil Le-Brun, Enterprise Strategist, AWS

14. References and Suggested Reading
•Ed Burgoyne, SHRM-SCP, 2022, The Link Between Mindsets, Behavior & Organizational Transformation,
https://www.linkedin.com/pulse/link-between-mindsets-behavior-organizational-ed-burgoyne-shrm-scp/
•Paul A. Argenti, Jenifer Berman, Ryan Calsbeek, and Andrew Whitehouse, 2021, The Secret Behind Successful Corporate
Transformations, https://hbr.org/2021/09/the-secret-behind-successful-corporate-transformations
•Ferne Eliz King, 2022, Organisational Transformation Success Stories, https://www.linkedin.com/pulse/organisational-
transformation-success-stories-ferne-eliz-king/
•Joel Casse, 2023, Nokia’s 7-step approach for turning its managers into real leaders, https://www.insidehr.com.au/nokias-
managers-real-leaders/
•Stephanie Werner-Dietz, 2022, A New People Strategy for a Dynamic New Era,
https://www.csrwire.com/press_releases/737346-new-people-strategy-dynamic-new-era
•Luna Corbetta and Margo Stokum, 2022, Culture: Transformation’s invisible enabler, https://www.strategy-
business.com/article/Culture-Transformations-invisible-enabler
•Phil Le-Brun, 2023, Digital transformation: Lead with culture, enable with technology, https://aws.amazon.com/id/executive-
insights/content/digital-transformation-lead-with-culture-enable-with-technology/

15. Learning and Giving for
Better Indonesia
www.humanikaconsulting.com