Transformation postcards #6: Inside out OR Outside in approach?

Transforming the way we do things is very difficult for us as an individual. Transforming a Multi National Organisation is almost impossible.

One of the key experiences I have come to value is the fact that transformation is hard, very hard. The head of the cardiology department in Singapore once shared a staggering fact with me: "Do you know how many patients return to their bad habits after a successful treatment of a heart disease? 9 out of 10!"

"If 90 % of patients are NOT willing to change their life threatening habits after facing a life or death decision, how many employees & managers would change because their leadership announces a corporate transformation program?"

On top of this, we often try to transform from the inside to the outside. A widely experienced example is the never ending quest for a customer centric organisation with the punchline "Customer First! or "One [add your company name here]". Driven from the inside of the organisation, we spent much effort to train & develop a culture change program with the customer on top of mind. But until we brought in the customer inside the organisation and gave him a voice - for good and often for bad - our success rate could be measured in the low percentages. Despite the best consultants, coaches and facilitators, changing behaviours of our employees and managers must go much deeper than training and stickers like "Transform now!".

Never call a transformation a TRANSFORMATION. If change is what we worry about most, you should use reverse psychology. You wouldn't call it a "Fat diet" when losing weight either - you dislike both: Fat and diet. How motivational is this for you to get started? "Be at my best" might get you better results.

The Outside In approach seems more radical and hence is promising more success in my experience of the past 20 years.

Nothing beats facing the true worries and concerns of a real customer. Face to face. Gloves off. Data & Emotions.

The moment we brought in the voice of our customers at Mercedes-Benz and Rolls-Royce, the key stakeholders in our organisation started to see the MASSIVE NEED FOR TRANSFORMATION: Top management realised that they had to put their heart in the mission. And middle management had to accept to use their brains and muscle - in order to stick with this metaphor of a human system in an organisation.

Unless you accept your shortcomings as an organisation you will fail. Unless you feel the pain yourself you will escape.

At Airbus our communications department has chosen a similar Outside In approach: In order to wake up our internal folks to recognize the underestimated power of social media and digital marketing communications in this old fashioned duopoly aero industry, they brought in a social media guru from India who rocked the house. Unsurprisingly some colleagues found it difficult to embrace such a diametrically opposite way of engaging with our target audiences. That was part of the plan. The majority however found themselves dancing to an Airbus song specially composed for this event.

Rocking the house

The clue for forming a successful movement however is the fact that Wilbur continues in his way to push Airbus through his social media channels:

Wilbur & Airbus

Summary: Inside Out vs. Outside In Transformation

1. Inside Out Transformation alone will almost ensure your transformation will fail. You must define you MASSIVE & URGENT TRANSFORMATIONAL NEED FROM OUTSIDE.
2. Inside Out is only successful when complemented with an Outside In transformative approach. Bring the POWER OF CHANGE INSIDE.
3. Only when your management and employees FEEL this MASSIVE & URGENT NEED FOR CHANGE, there is a chance of truly changing your organisational culture. This is a life or death moment of your company. Lean start ups know how to do this.
4. Incremental changes, like cost cutting measures, are not transformational. They are part of short term operational excellence programs. Don't confuse your company by mixing them up. WHAT THREATENS YOU IN FUTURE?
5. Bring in a powerful driver from Outside, who stays outside. Create a tension gap between your reality inside your organisation, i.e. lack of creating modern customer journeys, and the outside customer, media and bloggers, etc. who don't follow your internal rules. Use their power to start your internal MOVEMENT.

I also recommend:

Exponential Organisation

Markus L. Keiper is Head of Group Marketing @ Airbus and a Transformational Leadership Coach @ the Global Leadership Foundry.