Strategy. Innovation. Brand.
Change Management: The Sponsorship Cascade
We’re cascading the message to you.
Remember the ice cream theory of communication? (Click here). It’s a cascade of information flowing step-by-step to the target you want to influence. Say that you want to influence the trade press. You know that reporters will want to know what analysts think, so you brief analysts before you talk to reporters. Analysts will want to now what customers think, so you brief customers before analysts. And so on.
The ice cream theory also works with internal communications — especially when big changes are afoot. When an organization needs to launch big changes, it often puts the CEO on a video broadcast to all employees. Everybody hears it at the same time. What’s wrong with that? Well, frankly … nobody trusts the CEO. It’s not that the CEO is a bad person; it’s just that most employees don’t know him or her. Without a personal relationship, it’s hard to know whom to trust. It’s like sending a press release to a reporter without first preparing the rest of the ice cream cone. The reporter needs further confirmation. So do your employees.
Bain & Company develops this concept in two parts: 1) the sponsorship spine; 2) the communication cascade. The sponsorship spine is very similar to the ice cream cone. Ask yourself two questions: Who are we trying to influence? Whom do they trust? Let’s say you’re trying to influence Department Z. Whom do they trust? Well … it’s Mary, a long-term employee who is widely respected for her experience and wisdom. Mary may or may not be Department Z’s manager. Then ask another question: whom does Mary trust? Let’s say it’s Inga. Then, whom does Inga trust? Let’s say it’s Grover. Keep asking the whom-do-they-trust question until you’ve reached the executive suites. You’ve now established the sponsorship spine.
Once you’ve identified the spine, you can start the cascade. The key ideas are to start from the top, speak to people who know you and trust you, speak to them personally in face-to-face settings, and always invite feedback (and listen carefully to it). If you need to make adjustments based on the feedback, then do so. Then ask the people you’ve spoken with to cascade the message down one level. Repeat the process throughout the organization. Ultimately, everybody in the organization hears the message personally from someone they trust.
And what about the CEO? He or she can still play a role. My advice is that the CEO should speak after the cascade is complete. The CEO confirms and reinforces the message, but doesn’t introduce it. People hear the message from a trusted source and then have it verified by someone in authority. That reinforces the sponsor’s trustworthiness and speaks to both our emotional and our logical sides. That, in turn, helps the message sink in and prepares us for action.
You can find the full article from Bain & Company by clicking here.
Innovation: Message Sponsors
You want to convince your organization of the need for change. So, you create a killer speech and deliver it convincingly. The job’s done, right? Wrong.
Even if you deliver a great speech to your entire organization, you still have a lot more work to do. It’s just possible that some people in your organization will oppose your changes. They may react to your message with fear rather than trust. They may believe that the change you propose will create more problems rather than more solutions.
Who sponsors your message?
What to do? Recruit other leaders within your organization to sponsor the message. Recruit your thought leaders and opinion leaders — not just your senior managers. Your opinion leaders will come from all levels of your organization. You may well know who they are already. If you don’t, just ask around — people will tell you whom they trust. To recruit trusted opinion leaders to your side, just sit down with each of them and ask for their help. Explain why the change is necessary and why you need their help. Then explain the key elements of the message that you would like them to sponsor.
If you ask for support early in the change process, you’re likely to get it. On the other hand, if you give your killer speech first and then ask for support, it may be harder to get. Opinions have already formed and positions have started to solidify. Like voting in Chicago, you need to recruit sponsors early and often. Learn more in the video.
Innovation: Free Port Rules
Nice place to develop an idea.
An employee has generated a good idea. Your company’s Idea First Responders have accepted the idea, stabilized it, and started to transport it to the next phase of your innovation process. And where should they take it? One good place is the Free Port.
Free Ports of old accepted ships of all nations and gave them safe harbor. That’s a good model for harboring and developing new business ideas. An Idea Free Port may be as simple as a department manager’s “good idea” file. Or it may be a prestigious, cross-departmental committee tasked with the development and implementation of good ideas. Your Free Port should adopt rules that conform to your company culture. Here are some guidelines:
- (Almost) all ideas are welcome — in general, ideas enter the Free Port via Idea First Responders (IFR). In other words, IFRs do some vetting. You can set the vetting guidelines to your company’s needs — from very stringent to very loose. All IFRs have to understand the rules in the same way. If an IFR says the idea meets the guidelines, then it enters the Free Port.
- Free Port Registry — if you encourage creativity in your company, you’ll get a lot of good ideas. You can’t implement all of them — at least, not all at once. So, one function of the Free Port is to keep track of ideas lest you forget them.
- Compare & Evaluate — since you’ll have more ideas than you can handle, the Free Port committee will need to compare ideas and decide which ones should move forward ahead of others. These are tough, often emotional decisions. A Free Port committee needs a transparent and widely accepted set of questions to evaluate ideas.. Your questions will vary depending on your needs. My favorite question is: which idea will deliver the greatest good to the greatest number of customers? Other useful questions may include: Which ideas will bring us new customers either by offering more or less than our current products offer? Which ideas would our competitors never dare to try?
- Fear of failure causes failure — business plans are based on the past. A truly innovative idea has no past — so you can’t write detailed plans for it. You have to try it out and see if it works. Sometimes it will, sometimes it won’t. The Free Port committee needs a mechanism allowing it to experiment without fear of failure. You can do this at an individual level by offering “get out of jail free” cards. At the department level (or higher), you may need a special “it may fail but let’s try it” fund.
- Free Port Reports — it will take time to organize, sort, and develop the many ideas that will enter the Free Port. Your employees will wonder what’s going on. After a while, they may even wonder if this is another cynical management ploy. The Free Port has to keep employees informed. A simple method is to publish meeting minutes. From time to time however, Free Port leaders should report to employees in person, with ample time for a robust Q&A. (You’ll develop a lot of new ideas in these sessions).
Free Ports can get bogged down in bureaucratic red tape. To avoid this, keep meetings brief and keep measurements rough. (New ideas are notoriously hard to measure. Don’t overdo it.) Also, keep the CEO involved. She can resolve disputes quickly and make the many judgment calls that need to be made. Her presence will also remind people of how important the Free Port really is.
Culture Eats Strategy for Breakfast
A new CEO sweeps into your company and announces a new strategy. Your company hasn’t been doing too well so you think it just might be time for a new strategy — the old one wasn’t working, maybe a new one will. Unfortunately, the new strategy doesn’t fit well with your existing culture, which focuses on quality. The new CEO wants to focus on speed — “Let’s get to market before our competitors do — the first mover has the advantage”. Yet your fellow employees think, “There’s always a market for quality. Quality wins in the long run.”
When strategy and culture are at odds with each other, which one wins? Culture wins every time. In fact, Peter Drucker said that “culture eats strategy for breakfast.” Changing strategy is fairly easy — it’s just an announcement. But if the new strategy doesn’t fit the culture, it’s simply an announcement of prospective failure. First, you have to change the culture.
Watch the video for more information on culture versus strategy.
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