Shifting Systems: How HR becomes the driver of change

In the ever-evolving landscape of business, the role of People and Culture (P&C) professionals becomes increasingly pivotal. They are not just the guardians of HR practices but can be the architects of change, driving organisations towards a future where collaboration, purpose, and adaptability are the cornerstones of success.

I recently had the pleasure of sitting down with Margarita Yonova-Popova, the Group P&C Lead at Nortal and former Transformation Lead at Erste Group Bank HR. Where we worked together during their change journey towards – ‘One HR.’

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Our conversation felt like a trip down memory lane. We delved into the critical role of P&C in shaping the future of work, the challenges faced, and the transformative journey within her previous organisation.

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Today I like to share with you the highlights of the WHY and HOW they made the shift from a classical approach to putting people and purpose first.

?Prefer to listen? Find the replay here: People & Culture as drivers of change.

?Extraordinary times call for extraordinary methods. Acknowledging that requires deep reflection on who we are today, what value we want to bring in the future, and how to act on that.

Understanding the Urgency

In a world marked by constant change, organisations grapple with the need to stay relevant, meaningful, and adaptable. While business leaders expect a return to growth and expansion, disruption continues to come from multiple directions – including supply chain, talent, inflation, and new developments in the pandemic. Crisis after crisis brings psychological stress and economic instability. Digitalisation creates opportunities while increasing competition.

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Shifting the Mindset: People over Models

The initial approach in the transformation was a classical one. A PowerPoint presentation on the visible aspects of change, such as implementing a new operating model. However, there was no answer to the question: how is this going to help you achieve your goal, what is the purpose of this model?

A realization soon dawned that true value is delivered by people united by a common purpose, empowered to contribute, and inspired to learn and grow. This led to a pivot in the approach, focusing on building a purpose-driven environment with strong leadership. (link to case)

Leaders are often impatient to see tangible results and to be “done with this project”. We push, rather than engage.?

Starting with Leadership?

Every change management list state that you should start change initiatives with leadership. Instead, they decided to take a different approach by first setting up a dedicated change/transformation team. This team, should have cross-functional perspectives, be capable of functioning as a real team, and possess change management capabilities. By establishing a clear purpose, identifying key stakeholders, and formulating a transformation plan, this team becomes the catalyst for change.

From that moment onwards they were able to support the leadership team in gaining understanding of, and be clear on the organisation’s direction, how to align company-wide and what their role as a leadership team should be during the transformation and beyond.

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Activating Change: The People Journey

Throughout the entire journey it was a top priority to align the people in the organisation with its purpose. Therefore, the transformation team supported working sessions, strategic discussions, and ongoing employee engagement. This collaborative approach was very powerful in bringing about change from bottom-up and involving employees in co-creating the transformation journey. Think of sessions in which they crafted:

• The future; using imagination and writing a future linkedIn post of their organisation
• The story; using the pixar pitch from Daniel Pink based on Walt Disney
• Personas; which they used to create the employee experience

The importance of visualization, storytelling, and creating a persona for the future organisation was highlighted as critical elements in building awareness and understanding.

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The Power of Obeya

During the transition the leaders and some teams started to experiment with the concept of Obeya. Not as a mere tool but as a philosophy that emphasizes communication, dialogues, reflection, and continuous improvement. The Obeya helps visualize the purpose, strategic pillars, priorities, and measures for an organisation, fostering collaboration, transparency, and alignment. The iterative meeting rhythm within Obeya ensures steady communication and empowers teams to work together on what truly matters.

Read further on how the Obeya supported the transformation here.

Scaling Change in Any Organisation

Addressing the misconception that transformation in larger organisations differs significantly from smaller ones, Margarita highlighted that the fundamental questions and steps remain the same. Whether large or small, organisations need a clear understanding of their purpose, current state, and future goals. In her view, the key lies in involving people at every level, leveraging their collective wisdom and ambition.

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HR as the Vanguard of Change

Margarita firmly believes that HR should be at the forefront of change initiatives. She sees HR as a strategic partner to the business, playing a crucial role in anticipating strategic needs, fostering a culture of collaboration, and enabling the growth of individuals. In her experience, involving HR from the beginning ensures alignment with the organisational goals and helps in cultivating capabilities necessary for successful transformations.

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Learnings and Future Endeavors

Reflecting on the entire experience,lListening, observing, and a deep understanding of the current state, whether in P&C or any other domain, is essential to embark on such a change journey. Moreover, a co-creative approach with retrospectives and feedback loops are key components for learning and becoming adaptive from the very beginning. And when you make a classic 'mistake' of just wanting to replace the model? It is never too late to opt for a different approach.

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Parting Words and a Call to Action

As we wrapped up our conversation, Margarita shared a final piece of advice for organisations undergoing or about to embark on a change journey. She urged organisations to treat their employees as customers, leveraging communication strategies and engagement approaches similar to those employed with external customers.

In a world where change is inevitable, the above insights serve as a compass, guiding organisations towards a future where people, purpose, and collaboration are not just buzzwords but the driving force behind lasting success.

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If you like to dive into the transformation journey in greater detail then find the case study here!

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So, how are you initiating change in your organisation? What steps are you taking to ensure your workforce is not just ready for the future but actively shaping it? Share your thoughts and experiences in the comments below.??

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Thanks for reading this blog and looking forward to your response!

If you think this is of value to others, then please share it with your network. I would highly appreciate that.

I hope to meet you soon, AND feel free to add me to your network ;-)

Every day is a great day to transform the way you change. Together we achieve more.

Learn. Transform. Thrive.

Have a great day!

Alize Hofmeester

About Alize Hofmeester

It's my purpose to spark the human X-factor and create purpose driven spaces, where everybody is able to thrive.

Passionated about living by purpose. Founder of Twinxter / TwinxterAcademy. Author of Purpose Driven People, creating business agility & sustainable growth. Co-author of Agile People Principles, Transformational Leadership in the fitness and physical activity sector, Emergence. Creator of the People Journey Circle. Keynote Speaker, ICAgile facilitator, Obeya Coach.

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