Managing change through structure, team formation and mindset
BONUS ARTICLE // DANISH PROJECT MANAGEMENT magazine #1/2021
A strong focus on team formation has been crucial to succeeding quickly with the transition to new Product Category Teams (PCT) at the VELUX Group. We are well on the way to building cross-functional teams across the old silos.
Top management dedicates a team to making the new structure work
Following a major organisational change project by the VELUX Group, "Simplify", it was decided that new cross-organizational teams should be established around our product categories.
Figure 1. Organizing principle for the new teams
In practice, we were to build 4 PCT teams with representatives from 4 different departments across Products (product management and development) and Supply organizations. A matrix structure to increase business impact, reduce silo thinking and complexity – and not least move decisions further down the organization.
Until now, the responsibility and associated KPIs for e.g. the development of new products, quality and cost improvements of the products were separated across the functional areas. Now the cross-functional teams would have full business responsibility for the product category – and ensure both top and bottom line.
The structure was decided on the basis of good analyses and consideration, and we were asked – prior to the launch – to make a plan for how this should be done in practice. The decision also included an organisational 'design document' describing roles, processes and meeting structure in overall terms.
Already at this point, the management team created a good foundation for success:
Thorough preparation was done to design a setup with a clear ambition
Allocated 2 experienced, neutral, full-time transition leads – to represent Supply and Products, respectively
Delegated decision mandate to a cross-functional management team, a Transition board
A realistic ambition with a clear division of objectives and means
In order to make a good plan, it is an advantage to focus on the objectives that the plan must produce – and so we did. We decided to make an objectives hierarchy because it helps to...
Sharpen the ambition – what will we achieve and what is different when we are done?
Break down ambition into focus areas and project deliverables – with both structures and teams
Ensure alignment with the transition board and sponsors – on objectives and means of getting there, throughout the transition
There was an unexplicit expectation that we would implement the new team's processes, structures, etc. But here we insisted on a more realistic ambition level for a 6 month transition period. The purpose had to be to 'establish' and not 'implement' the setup.
Figure 2. Objectives hierarchy for the transition project
Our experience argued that real implementation – i.e. making the new setup work – would take longer – no matter how much effort would be put into the 6 months. Fortunately, management backed that up. So instead of measuring the impact of transition on business KPIs, success criteria were more qualitative, focusing on having progress on teams and new processes and structures, ensuring common understanding and, not the least, a shared belief that we can make it work.
We knew that we would need a design phase with workshops where the members of the new teams could help unfold the role and processes. Such a process can contribute to at least two things:
To build teams through involvement - and that at the same time feel safe with each other and responsible for the task
Sharpen content and make it workable in practice
Physical design workshops with a strong focus on team before task details
The time horizon and a defined milestone in the 'big VELUX Simplify project' gave us the outer frames for the design phase. We knew we wanted our two sponsors – the Senior Vice President of Products respectively Supply (management level N-1) – to join during the start and end of the process – to signal importance and support. This defined the dates of the first and last workshop day 😊.
We also knew that we needed a strong team focus from the start – even before we got too much into the detail of processes and tasks. We were challenged a bit by our surroundings, who were very eager to get started and into the solutions quickly. Here, we held on to our focus - despite their eagerness - because we knew that team formation was critical to their success in collaborating and building something together.
This was further supported by the fact that our sponsors insisted on holding physical workshops, despite the Corona situation. Of course, in a setting that met all safety requirements. On the other hand, only the most critical people – namely the members of the new PCT teams – were physically present with ourselves as facilitators. Managers, sponsors and stakeholders participated virtually through Teams.
The figure illustrates how we approached it over the 4 workshops – starting with a lot of focus on them as individuals and teams. We were very keen to meet the teams wherever they were all the time – both in terms of knowledge and mood.
Figure 3. Workshop approach
We were inspired by the ADKAR model (Awareness, Desire, Knowledge, Ability, Reinforcement) for change. Thus, the ambition of the first workshop was primarily to create Awareness – i.e. a basic understanding of the task, and Desire – to create passion for the task. And slowly and along the way to build knowledge.
In practice, the 4 functional managers (management level N-2) helped to set the framework and introduce the role at a very general level. They then discussed it further in the new teams, so that together they put into words how they understood the task – and not least what was still unclear. The managers were also present when the groups presented to each other and at the workshop closure. In particular, we had two reasons for this:
Managers could set the frames and signal importance
They could follow progress as well as motivate and ensure empowerment
At the following workshops, we delved more specifically into processes, project lists and governance. And we invited key stakeholders in for feedback and input. At the last workshop we became very concrete – so they left the design phase with meeting agreements in the calendar and agreements on communication and how they should actually get started with the task.
Transition management through a strong team, willing to ‘play each other good’
The design phase was both uplifting and demanding – it took 2 months, and then they started living out their new role. It was fantastic to experience these talented and committed middle managers (N-3) going into the task and our workshop design with relatively open minds. It was also a task that required a great deal from us as transition leads.
In retrospect, conducting 4 two-day workshops in 8 weeks was extremely demanding for us as transition leads, but on the other hand we really got far with the team establishment. We only succeeded because we had the necessary experience and belief that our approach would work. And not least, we had a mutual respect and trust in each other, and thus a strong will to play each other good and bring our different skills into play. It would never have worked if we hadn't had that mindset.
Focus on mindset and behaviour – first with managers
Change is often difficult to navigate in, and no one wants to 'be changed'. Therefore, it is important to have dialogue and expectations management – and to choose the right mindset. We addressed upfront how this role would include both privileges and obligations. A decision mandate is delegated to PCT teams. The obligation is then to ensure involvement and support for their decisions.
We also talked about the fact that there are many perspectives on every situation – and how important it is to understand and respect this. We have to believe that the vast majority of people get up every day and want to do a good job. When we are frustrated with each other, it is often because we are not trying to understand the good intentions that lie behind any behavior. It's a choice you can make.
Matrix management includes an interesting mind-setting, where you can choose to be a 'manager' or 'victim' of the matrix form. By definition, there is less clarity and more interfaces in a matrix. On the other hand, there is increased flexibility ("the matrix trades clarity for flexibility"). So the choice – to be a manager or a victim – is for the individual to decide.
We went live with a '60% solution' on processes and meeting structure. We did this because it is a good way to combine pace (a quick solution) with flexibility and the ability to adapt the 'theoretical solution' to the real world (test, learn, adapt). But in a very thorough culture, it can be anxiety-provoking 'only' to be 60% finished. That's why the leaders' communication and appeal was to...
make it clear that we are getting started but are not finished, and therefore need help to make it work
specify what behaviour we believe is critical from all parties to best support this
Figure 4. Behaviors required to succeed
The figure shows how we specifically tried to manage expectations for behaviors that could help implementation well on the way. A balance between giving and taking – as in any good collaboration.
Despite some skepticism from the start - about the high team focus and slowly increasing task and process content - the feedback after the last workshop was overwhelming. The participants greatly appreciated that there had been plenty of time to work their way down into the processes – but also to discuss the many new conditions together. In this way, they got to know each other and the task better. And they created a safe environment in which to exchange opinions and perspectives. After the design phase, they felt ready to go. They knew enough to get off to a start and had a belief that they would find the answers that were missing. Also, our sponsors were happy with the progression. So, first part of mission was accomplished!
Structures to support transition and ensure anchoring
When we launched the new teams on a '60% solution' of both processes and systems, we knew we had to follow them closely to ensure gathering of learnings and solving the challenges that they would naturally encounter. The focal point of their work is a monthly meeting managing the product portfolios so that they can realize the ambitious business KPIs.
To support the transition, we have the following structures in play:
Joint learning meetings: share good practice for mutual inspiration - as well as challenges
Sponsor meetings: the 2 sponsors are briefed by each team on decisions and challenges so they can motivate and help ensuring momentum
Transition board: ensure sparring and focus in the transition and be ambassadors to make the new setup work
We believe that these structures contribute to the last elements of the ADKAR change model. Ability – the fact that the new teams can actually perform the task in practice and Reinforcement in terms of support and focus from management. Although still many details are not yet in place – we have come a long way in 6 months. Both from PCT teams and management, the experience is that we have actually 'empowered' the teams.
They find that they have the mandate and take it on. The decisions are easier to make because they have easy access to each other – just as they have dashboards and a meeting agenda that supports the business focus. And we are starting to work on the implementation plan for the rest of 2021 – full of confidence that it will work and create value for VELUX with the new PCT teams.
What we've learned...
We have been asked several times how we managed to get this far in such a short time. In addition to the highlighted points, our learnings and advice to others who will lead a transition are:
Respect the context – invest time in understanding the reality in which you need to navigate
Take the mandate – trust your experience and gut feeling and build trust in you and your approach
Remember to get the steering group to take their share of the responsibility, you are not alone in this
Balance to display confidence and vulnerability/courage to ask for help
Balance focus on ensuring progress on the plan and adjusting the plan when reality dictates it
Remember your own 'energy hygiene' – balance discharge with charging – lead your passion so you can keep the tab high and stay calm
Stay in the eye of the hurricane, even when the waves go high
Remind your management team to show trust and patience…//
Written by Tine Kragh Nielsen, April 2021