Note: This is the script for a speech at the
FESPA World Summit 2014 in Munich.
It was directed at top executives of the print industry – but due to the nature
of the subject, it will be interesting for other audiences as well.
For 20
years, I have been working for international advertising agencies like Ogilvy, Leo
Burnett, and McCann. About half of those 20 years, I was working in management
positions.
During
these years, I have seen lots of things change. When I started, there was no
internet. We were sitting in front of monochrome monitors, working with MS-DOS,
and none of the art directors had a Mac. They didn’t have any kind of computer.
Like I said
– really lots of changes. But what I have never actually witnessed in any of
these companies was something that could rightfully be called a change
initiative, or a change project. Not even in the most extreme cases.
Change Management?
We bought
other companies – no change management. We lost big clients and plenty of
people – no change management. Even when we successfully turned around pretty
big agency offices, it wasn’t actually treated like a proper change project.
It made me
think. Why is that? And I have come to the conclusion that there aren’t really
many people around that truly understand change, and how to deal with it. It’s
such a basic word, such a common thing, and we don’t need a definition of it,
we all know what it is. But do we really?
What Is Change?
It’s not
that easy. Yes, we know, if something is one way one day, and different another
day, something has changed. And we can all say smart things about it, like
change being the only constant in life, and things like that.
Most of
these expressions reflect how we look at change quite well. A change is gonna
come. Change is something that is inevitable. An outside force, something we
can’t control, almost like the weather.
And it’s true. It’s a force of nature, in a way. But that’s not all, of course. Because we know – we all can change the world. Or at least part of it. There is that feeling of self-efficacy. As much as we all are forced to live with change – we’re also very much capable of changing just about anything we want to change.
And it’s true. It’s a force of nature, in a way. But that’s not all, of course. Because we know – we all can change the world. Or at least part of it. There is that feeling of self-efficacy. As much as we all are forced to live with change – we’re also very much capable of changing just about anything we want to change.
Inside and outside
So there
are two kinds of change. The change that comes
and the change we bring about. We learned a lot of smart things in business
school, but one of the smartest was this: If the rate of change on the outside exceeds
the rate of change on the inside, the end is in sight.
Both forms
of change are related to each other, of course – but not necessarily in a way
that we need to react to the change coming from the outside with the change we
bring about on the inside. We need to be quicker than that – and actually
change on the inside before the change that comes from the outside actually
affects us. So if we manage change well, both kinds of change are good.
And if it’s not good?
Now – we
sometimes find ourselves in situations where change seems to be something
really bad. Like for example when a new technology is giving us a hard time,
maybe even threatening to put us out of business completely. Like for example
the digital revolution.
But if we
look at the subject closely and honestly, we will have to admit a few things. First
of all: This didn’t happen overnight. As quickly as the world may be changing –
the idea that the digital revolution might be changing the game for a lot of
industries has always been pretty obvious.
Secondly:
The digital revolution has opened up millions of business opportunities, and it
still does, for everyone, including advertising, including printing –
absolutely everyone can benefit from it.
So how come
the changes of the digital era have turned into a problem for some people?
We’ve heard it a moment ago. Because in those cases the rate of change on the
inside must have been slower than that on the outside.
What do we do?
The
question, obviously, is – well, how do we change? Sticking with the subject of
the digital revolution, and looking at positive examples it is quickly obvious
that some people have already taken advantage of it.
You will
find examples in every single industry. Automotive: The first car manufacturers
are teaming up with Google and Apple to get an advantage over competitors.
Advertising: Some agencies have started to change their organizations as much
as 15 years ago – and deliver a seamlessly integrated product today. And yes,
of course, there are people in the printing business who are taking advantage
of the new possibilities that have come up over the last decade or so.
What you really need: Honesty
There are
two things you can’t do without if you want to manage change. Number 1: Honesty.
Primarily regarding yourself and your company. It’s really hard. You’re proud
of what you are doing, proud of what you have achieved, and we all know how it
is – you like to see things in a positive light. We all do.
You can’t
change anything if you are not able to analyze your current position honestly
and objectively. Sometimes it’s very easy. On my last assignment, we had almost
no senior management left, the agency had no digital strategy whatsoever, and
no visible digital product, it had a structure that didn’t represent the size
of the organization and didn’t give it a chance to answer the needs of the
market. Sounds like a nightmare? Not if you have been sent in to change things.
It’s a lot
more tricky if the need for change isn’t as dramatically obvious. It’s up to
you to be honest to yourself, and to ask yourself: Do you have the right
people? Do we have the right structure? Are we investing in the right
technologies? Am I still the right guy to run this company? Are we still
producing the right products? Are we selling our product the right way? Don’t
paint it black, but don’t fool yourself either.
What need even more: Creativity
Crucial
point number 2: Creativity. I really don’t know any industry that hasn’t been
under intense pressure over the last two decades. Rounds and rounds of cost
cutting, endless restructuring processes, and plenty of efficiency initiatives
have been run. It is very exhausting. Today, we are working more and harder
than ever, and we have become incredibly efficient.
Did that
ease the pressure? Did that help us be more relaxed regarding our competitors?
Of course not. It’s like the race between the rabbit and the hedgehog. Can’t be
won. And for a lot of companies this has led to a situation where motivation is
low and sinking, workload high and rising – with negative effects on corporate
culture.
My answer,
clearly, is to start getting creative about solving business challenges. You
don’t want to run the efficiency race, the cost cutting race, the price
slashing race – it’s a killer. To a certain extent you will probably have to,
but you need to do more. Get creative. Open your mind. Creativity isn’t just
something that goes into your products, it should be something that is part of
every aspect of your business.
Look around
You can
find inspiration everywhere – new ways of doing things, of looking at things,
of managing things. Simply because everyone is basically facing the same
challenges you are. One of the most interesting definitions of creativity, or
of an idea, is “making
connections between or among concepts that the thinker previously saw as
separate and unrelated.”
So look,
learn, and apply. Other industries are doing things differently – and often in
ways that can help you at least take a critical look at how things are done in
your company.
Example #1: Think about structure
Example #1: Think about structure
Look at how
the most creative companies in the world are structured, how they are organized.
You will see that they look at structure in a very different way, and I bet
there is something in there that can help improve how you work. Most companies
that struggle with change have very rigid and hierarchical structures. There is
a good chance that less formal structures could help, and that project based
teams can solve problems better than fixed teams.
Example #2: Think about workflow
Take a
really good look at how projects are managed in your company – and how other
industries handle it. It’s really hard to get people to learn and apply a new
way of organizing workflows, and it needs training, but it can make a huge
difference. Look at Agile Project Management as an alternative. Yes, it’s a
method that is applied in design agencies and in software development, but it
is clearly not limited to it. People who work with Agile almost always say that
they achieve better results in a more structured way and with much better use
of the time that is available.
Example #3: Think about innovation
Almost
every company is convinced that they are innovators, but the least of them are.
Again, be honest about it. Understand that it takes more than just the will to
innovate. You can’t just tell your employees to start inventing things.
Innovation needs to be understood, and people need to know methods of
innovation. Yes, do create an innovation spirit, but support it with innovation
knowledge. Choose your most creative minds, teach them, create a skunkworks.
Example #4: Think about workspace
Even in
industries that are centered around creativity, the workspace rarely is
designed to inspire and to interact. Most of the time, even the meeting zones
are terribly uninspiring, and they usually can’t be accessed for group work.
You don’t even have to look at Google or Facebook to understand how companies
enable creativity, new ideas, group dynamics. At Bloomberg for example, there
are dozens of social zones where people meet, have a free snack, enjoy a free
soda or juice, and talk about projects. It’s not a small investment, but it
clearly pays off for them. Interaction creates opportunities.
Example #5: Think about technology
Even if you
are working in a high tech industry like large format printing, it pays to try
and find new ways of looking at it. Sure, it pays to invest in machines and
systems that are designed to save time, money, resources, that are designed to
give you the chance to produce something that others can’t deliver. But it
doesn’t help so much if everybody else buys them too. Develop your own opinion
and path regarding technology. Sometimes even looking back helps. If everybody
is going digital, it might pay off to look the other way. Try to find a good
letter press printer in Germany,
for example. Difficult.
Example #6: Think about finance
Example #6: Think about finance
Yes, finance
and creativity. Not creative accounting, no – but it might pay off to look at
finance critically and analyze if the way you are handling finance is actually
helping your business – or if it is creating obstacles. Apple for example – it
is fair to say that one of the reasons why they are creating better products
than other companies is because they just have one bottom line, and not a
dozen. No silos. No conflicting interests. If your company consists of several
corporate entities, chances are that this is keeping you from getting better
results.
Example #7: Human resources
Actually
most of the six previous points automatically lead to changes in and around
human resources. Which obviously is only possible if HR is a valuable part of
your organization – and in a lot of companies it simply isn’t. A lot of
companies rely on employees suggesting newhires – leading to organizations that
are made up of homogenous circles of friends. This may result in a good
atmosphere to work in, but usually not in a work force that is able to tackle a
wide variety of challenges. Nothing is as dangerous as homogeneity in your work
force. Your business is complex, no matter what your business may be – and you
need a good variety of talents and characters to handle it.
What else?
And
strategy? My advice would be to not get too complicated about it. Stick to the
simple equation of defining where you are now, defining where you want to be in
two, three years, and defining what it takes to get there. But do it
thoroughly, with a good deal of research, analysis, and honesty.
And be sure
to understand change management. If you don’t know John Kotter’s eight step
change process yet, make sure you and your most important managers do. There
are a million things you can do wrong in change projects, and most of your
competitors will. It’s a big opportunity.
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