Campbell Macpherson - The Change Strategist

Today's talk is about the inevitability of change. Change is inevitable; successful change isn't. The first thought I'd like you to take away is that your organizations will need to change. I don't mean that as an insult or criticism — it's just a statement of fact. It doesn't matter how successful your organization is, because the more successful an organization, the harder and more impactful the change will be when it comes. So first, your organizations will need to change. Second, it goes doubly for the organizations you invest in. The leaders of those organizations must be able to lead their teams through change. We've seen all morning, with Dr. Lee's fantastic presentation, the changes ahead. In ten years, we'll meet in a room half as big because 50% of us will be replaced by robots — possibly not as cool as Rachel, but still. Change is inevitable. The companies you invest in, if they don't know how to lead change properly and deliver the business case they set out to achieve, then your investment will be a waste of money. There are three types of changes you'll have to cope with: organizational, and the third is personal change. You are going to have to change personally, because the way we do things today just won't cut it in the future. Remember the story David told about the conference in Düsseldorf where everyone sat around talking at a high level, then quickly cut to the real concern: 'I'm really frightened about my job.' So change is personal. As change leaders, every one of you has to do all three things I've talked about, and most importantly, you have to lead your people to deliver the change your business requires. Only your people can deliver that change. Benjamin Disraeli said 150 years ago, 'Change is inevitable, change is constant.' What he meant is that change is always with us; what he didn't say is that the pace of change is accelerating. Globalization and the Internet are transforming the world. In the last 20 years, we've seen incredible changes: the internet, Netflix, Google Maps, the iPhone, 3D-printed houses, the Large Hadron Collider, Mars exploration, and the mapping of the human genome. Today, we see change happening at a frightening pace — globalization, the Internet disrupting entire industries, and a large Western underclass that is angry and votes, as we've seen with Brexit and Trump. We're also rapidly destroying our planet. The change in the next 20 years will blow our minds. We've talked about technology, AI, advanced robotics, healthcare, battery technology — all transforming how we live. We have global warming, plastic oceans, depleting fish stocks, bees, and insect populations. Over the next 20 years, China is already the most important country; its leader is the most powerful man. We may see a United States of Europe and a Little Britain imploding after leaving the EU. We see increasing isolationism. The Stone Age didn't end because we ran out of stones, and the Oil Age won't end because we ran out of oil — it will end because demand is no longer there. We're at the beginning of the end. Society and business are changing; non-Western attitudes will dominate. Change will come in societal, organizational, and personal forms. All change is personal — every organizational change is a combination of thousands of individual personal changes. I use a matrix in my Embracing Change workshops to help employees embrace change. The Kubler-Ross change curve shows we go through shock, denial, anger, fear, depression, then acceptance. Change leaders must help people through this, or we'll be among the 88% of change initiatives that fail. That's right — 88% fail to deliver the outcomes they set out to achieve. The top 10 reasons change fails: First, humans don't like change — we cling to the status quo due to fear of the unknown. Second, we don't know where we're going. You need a clear vision and a compelling 'why'. I once worked with a CEO who said his strategy was to double assets under management in five years; the real reason was to prepare the business for sale. The 'right reason' must be credible and something your people can get behind. Third, the implications aren't understood. Fourth, obsession with process over outcomes — don't let the tail wag the dog. Fifth, inertia — difficulty moving from talk to action, mid-term inertia where the change project becomes a runaway locomotive, and complacency. Sixth, the set-up-to-fail syndrome — bad governance, oversized committees, unclear decision-making. Seventh, poor communication — CEOs think a single speech is enough, but you need to engage person by person. Eighth, emotions trump logic every time. Emotional commitment is four times more powerful than logical commitment. Ninth, a change-averse culture where failure is punished instead of seen as a learning exercise. Tenth, leadership doesn't stay the course — they abandon the change once implementation begins. The essential ingredient for successful change is finding your change catalyst: a business person with high IQ and EQ who can sit between leaders and employees as a trusted confidant. You need both a project manager and a change catalyst — yin and yang. The leaders of organizations you invest in must be exemplary leaders of change. I'll leave you with a quote from Charles Darwin: It's not survival of the fittest; it's survival of those most adaptive to change. Thank you very much.