 So Brightlight is an initiative created by the Project Management Institute. For those who are not aware of Project Management Institute, Project Management Institute is the leading association for the Project Management Institute. So with around three million members and credential holders worldwide, DMI serves people doing administrative projects in more than 190 countries. Brightlight initiative was created in 2017 as a think tank to try to understand why there is a massive gap between ideas and results. So why we failed so much in transforming our idea into reality? So basically in 2017 we started doing the research and we published our first book together with a different team called Strategy Network, trying to understand what are the reasons behind this challenge. Last year we decided to go one step further into that area and we tried to understand the people influence on getting this done. So we published the people manifesto in a series of studies and research on the human master. Last year also we released our massive open online course with Forestero, where several of the colleagues here contributed to that. And in this past year we have 7700 students registered for this online free course that we released. And this year we started nailing down and saying we have a big problem of transformation. So there is a massive gap and a massive failure rate. Forestero last year put a deal of around 700 billion US dollars in failed transformation. So we said we need to act on that. And we need to act not on the benefit of increasing shareholder value, but increasing societal value. So this is why we work this year to find a way of how we can help organizations to transform themselves. And it's above and beyond digital transformation. We are talking about organizational transformation. So that, I went back to my time at the United Nations. I was the director for the human project implementation and infrastructure for almost 5 years. And in 2015 I did a course at Forestero about rapid transformation, where I met Professor Daniel DeGrasse. And we became friends and we have a very shared own interest in how we can put people at the center of transformation. How we can bring people on board of that. So we work in taking his experience of 25 years of research on this area at Forestero. And we did a work together and we published three weeks ago at our event in New York, that bright-eyed transformation called us. That is widely available for free and you have in your days. And the main aspect of this transformation is how we can combine individual, personal and employee transformation with the results of the organization. So, and this was the central topic of what we are trying to do today. How we can build a shared future and not a future for a few people. And this panel today is about master of transformation. So we decided with story that say how we can talk about transformation in a positive way and having different angles on that. So to do this I want to invite to this stage to discuss Rita McGrath from Columbia Business School, Professor Caroline Frankenberg from University of San Gale. Mary Keenan, CEO partner from the Austin Consulting Road and Professor Bernadette Marisi from Stafford Business School. I hope you will enjoy the panel. Thank you. And I thought I would introduce the panel. So, Travis has already said one of the things that I wanted to say, which was that the history of transformation is pretty visible. People are raised all the way with changing their organization. And I thought it would be interesting to spend a minute or two on this part. And then I'd like to introduce Ben and Calvin and Harry. And then we try to give you a short take on these matters. So the establishment of business is that they're all born in a specific place and time. And they're any bit of possible in your life. And so you learn how the world works according to the constraints that you are already living at that particular moment. So just to bring it to life, I'd like to begin right now. Men's Shaving. Men's Shaving. Various degrees of commitment to that. We know that Calvin McGrath and Men's Shaving decades and decades has been to that. And so that's why there's not always a person who invests a lot of data. That means there's a lot to have new products. Well, that you can charge across premium. We then use our armies of salespeople and street dealers to get that product into community health channels. And underlying the whole is no, it's the millions of dollars of masks on your health. So, the innovation comes out of a lot of data. Today it's on Wednesday. And they have their best advertisement for ever. And the first blade will pick the hair out from your face. Secondly, it will come along with the lights that are in the wall. And this advantage must be that you're nearly a decade old. Next big innovation. Yes, the Mach 3, this was awesome. And the advertisement for the Mach 3, amazing. Jeff, if you would be so kind as to purchase the Mach 3, you need to sit in the cockpit and find your chance to do that. That is how awesome the movie will be. And this is where the book is planned. And this is the opening of the book. For an academic, academic, strategy, a competitor, she comes to market with the world's first order of things. And the reason I think this is so interesting is what you do. When you even imagine a constitution, you're using unusual colloids, so you tie everybody up and pat the board for some of this. And then you rush to market with the world's first. So here's the thing. If you are excited, this is what we are worried about. We're worried about the shape you're worried about, but if you're worried about your distribution channels, you are not thinking about what's going on in the world. The two guys who decided to create a changing development, and they used YouTube to get the message out, they used Facebook to recruit brand investors, they used Amazon for services to create all of their balance. And within five short years, they take lead from the 70% of all trade-offs in 50 years. And I guess that's the stage for one of the wooden panels we've addressed into this. We're worried about the two brands, in that world, when you have to transform to do something that you think you're going to be able to do, then how do you do that? So the first one I'm going to introduce to you, Anna, is going to give us some of these perspectives that have happened, and I'm going to tell you what you're going to be able to do. I won't be telling you. Yes, thank you, Steve, for the kind invitation, Bright Line and PMI, Sunil, Ricardo, Adelaide, Tyro, actually, and the entire Dream Team that I had a chance to work with on the Bright Line Compass. In the 1990s, when I just received the prestigious ASQ Award, from outside my life, it looked really perfect, but I had an existential crisis and had a spiritual breakdown. I didn't realize up until then my life was all about me being me and accomplishments, and that wasn't really fulfilling for me. So I made this goal that I want to transform 100 million people before I die, and since then I've been working seven days a week, and this is, I believe, the most exciting area to be working on. I believe that working with Bright Line and partnering with them in Africa is a little bit closer to fulfilling our dreams. What I'd like to share with you is the team that I've worked with have more than 100 years of experience in transformation from leading organizations such as United Nations and also McKinsey and Company. I have data on about 1,038 transformations in the past 25, and the privilege of coaching over 100 organizations in their transformation, and since my dream, I've written five books on transformation, but the two particular ones is regarding the talk about, which is rapidly transformation. It's about the fact that there is no way you can have, you can speed up your transformation. On this you'll have a completely different structure and process, which we call a new operating system outside of the regular hierarchy, and really have this flat environment, agile environment, and be able to really move the transformation forward with cross-structural team, cross boundary team, and so on. This was written in 2007, in 2014, Professor John Potter of Harvard also confirmed that this is really the only way you can actually speed up transformation in his book Accelerating Change. What the recent one, which I'm really proud of, is what I found working on transformation is that the biggest obstacle to change is really the personal transformation. What goes on in people's head and the mindset and transforming mindset. So, writing this book by research or 200 therapists, that their work is really to change people and to get people to think differently, I also had the privilege of being coached by the coaches coach, Bill Campbell, who's known in Silicon Valley as the $300 coach because he coached people like Steve Jobs, Jeff Bezos, and Aaron Gage. So, I've learned a lot from the coach and I've learned a lot about transformation and individual transformation from this exercise, if you will. We talked about why transformation failed and the numbers that are pretty staggering. This is really not good for organization. It's also not good for humanity. But the real reason for it is the lack of engagement of people. Just about every great transformation that we've seen, there's a large engagement with people in the organization and there is an alignment between people's aspiration and the North Star. And that armies of outsiders leading the transformation will be seen in successive transformation is people inside, armies of inside is actually leading the transformation. The detail of it, the book in front of you, is like a cookbook, step by step, if you will. How do I get started? What do I do next? We want to really, as part of the set, our values is about transforming the world and putting the templates in front of people in the organization to transform their organization and empowering them to transform their organization. But at the core of it is inside our transformation. It's about personal transformation. And what you have is being able to create structures outside of the organization, a new operating system, how to recruit armies of insiders to be able to transform the organization and how to bring the outside in with the inside out. How to bring the changes in the ecosystem, changes in the customer behaviors into the organization and the alignment inside out with it. So it's about putting people first and it's about building a movement that aligns the outside in with the inside out. The question that we need to ask is why is it that people are willing to work for money but die for a cost? How do we unleash the untapped potential of people in organizations? How do we remove barriers so that people boldly step into greatness? One organization that did this is based in finance it's an Asian organization so very hierarchical if you will very seniority based conflict avoidance in the culture in this organization. K-Bank is one of the largest organizations in the banking industry the president of Pachara we had a conversation with him a few years back and he was extremely frustrated about transforming this organization even the challenges of the banking and so forth. One of the things that we talked was that unless he goes through his own personal transformation there is no way the organization would change. We're saying we have we always see the spirit of someone else's faith but we don't see it in our own team and this is really the thing about leaders oftentimes leaders want to transform organizations but they don't want to transform themselves he was courageous enough to take on this path what he found is that when he was younger he was sent to the boarding school in Kansas being the lone Asian he was fully as a result he did not have access to full expression when he decided that this is his path he could start a completely new future he said that he might want to have one team, 12,000 people all working at one team regardless of hierarchy he shared that with his people he shared that with the chairman of the organization he shared that with his family truly a breakthrough not only he went through this transformation but the entire organization went through this inside out of it and there were people who were going to retire in their 15's or 60's they decided to stay longer and it impacted their entire life results have been amazing the typical slogan that you usually see in sales of banking has reversed some majors are doing extremely well customer satisfaction has gone up and also employee satisfaction has gone up huge, huge frontline type of focus if you will and people gave us a 1% chance to success this organization was able to turn it around if you think well, it's a 12,000 company the fact is Microsoft actually applied a pipeline compass and was able to transform the organization lots of inside out effect lots of being able to bring the outside in and so on I will write you a case about this besides inside out another critical part of this is creating a structure what you have is outside of the organization and how you create cross functional teams of other recruit artists of insiders having their people to really reach their full potential and so forth so the key is what we talk about in this booklet is recruiting people people who are just not happy with the organization putting them part of the solution if you will rather than having outsiders going to leave this having the people an organization that did this was very signed a public company they had sales of $300 million in two years they were able to achieve $1 million what they did is outside of the organization create this flat structure of 15 cross functional teams 400-500 people involved a light senior management team very agile, very Silicon Valley very entrepreneurial completely changing culture in this environment and collapsing back to the hierarchy of the organization and it truly made a huge transformation and led to great results by the way this type of work also makes sure that transformation is perpetual because one of the problems with transformation is one type of the thing if you get people engaged if you do the outside out do the outside out is perpetual and it lasts a long time and one of the things I love about this type of brighter compass is the talent and potential of people within the organization and nothing makes me happier than seeing people promoted within the organization as a result of working on this and many, many people got promoted because they work on this project and every product project that I discuss so far we talked about for-profit organization what about non-profit Silicon Valley is this Silicon Valley who's who and the wealthy live in fact we had a huge challenge with vulnerable population and the hospital that applied this bright line compass they brought it outside they spent 20 million dollars nothing happened in 13 months people were not engaged so they applied the bright line compass they decided out the real heroes of Silicon Valley are the doctors who work in this hospital tough tough job and they oftentimes make less money than some of my software engineer students that just graduated and so forth this is Dr. Sanjay Karani-Cliffin their job was to be able to increase the capacity of this hospital because of the Affordable Care Act and because of the cuts in the medical field and so forth with the new leadership in Washington they had to increase the capacity by about 30 percent so they created this logistics center within the hospital all IT driven where they could see where each patient is kind of like air traffic controller they looked at the hospital industry and they found out how quickly we could actually clean the room so that the next patient could come in they transferred the entire organization using the bright line compass and they were extremely successful these doctors talking about this transformation and I want them to look at if he started out transformation Santa Clara Valley Medical Center is the safety net hospital of Silicon Valley of all of Santa Clara County and what was happening is the hospital was getting overcrowded and when the hospital gets overcrowded the ER gets overcrowded we can't just move these patients out while they're still sick and try to get them out and as we did a deeper dive in why we're overcrowded is there were a lot of patients that we had that were simply non-acute sitting in the hospital often times those patients can be in the hospital and not have an acute medical need to be there but they can't be safely discharged to the streets one of the hospitalists over here one of our mentors told us that the most dangerous thing you could do for a patient is to discharge them and with good reason but once you discharge them you have no idea what happened a significant number of them unfortunately are homeless they have very complex medical conditions so we had to come up with our own bold solution on how to care for these patients we thought what would be what would be the ideal transitions model for these patients and so a number of them ideally what they would need is a whole multidisciplinary team to help them with medications to help them with mental health issues we just kind of flew by the seat of our pants and adapted and learned and changed as we as we saw fit it goes back out to going beyond the walls breaking down the silos talking to individuals that I would have never talked to it involves case managers social workers, psychiatrists it involves so many different departments they don't have the physical or the social supports that a lot of us take for granted essentially that was our compass was what can we do to take care of the patient overall from a holistic standpoint it's been an incredible success for us every hospital private or public encounters this problem that's why we want to develop something that can hopefully be replicated by others we want to share the secret it's incredibly fulfilling gratifying as a provider to be able to affect someone on such a deep and personal level and to see the outcomes that we can achieve I must say this work has a special place in my heart because my family came as immigrants to the US we had absolutely no money from my dad and I hope my dad is looking down and happy about the work that we've done thank you so much with respect to how we solved the implementation challenge presentation I'm very much into the topic I do a lot of research on transformation and just over the last year I did do more than 100 interviews with CEOs, chief transformation officers, chief digital officers all you want to call it from different big and small organizations around the world and things I learned and the insights I got I want to share with you right now a huge dilemma only 30% are successful and if you look at digital it's even lower so only 16% of all transformations are successful although companies invest a lot of money and they see the number one risk for this year and for next year so why are we not winning so transformation transformation in general and this is something that really interested me and that we need to understand why are some companies successful with it and why are other ones not successful with it and for me this is a dilemma to maintain and continue success in the core business while in parallel developing a regularly new business model which could be a platform-based business model or a subscription-based business model or whatever but often it is channelized in the core business and therefore this is a dilemma for the incumbent organizations and you can nicely display that as the S-curve model that we are also familiar with but it really fits quite nicely for this dilemma that you see in the transformation process I'm illustrating here so it's really the double S-curve that's for me after doing this research I figured out that this is the biggest challenge all incumbent organizations face because they were good in their core for the record and of their today's business model they were successful with it they know how to do that they know how to succeed with this margins are going down that the revenue is going down that the growth is not the same as it used to be so now they need to transform and we see this phenomenon on all different industries say the automotive industry say the media industry is the machinery industry so you see this phenomenon across all industries and what all we say is that they need to understand is that they need to optimize their core which they need to do anyways so they need to digitize their processes digitize their products etc but in parallel they need to build a fundamentally new business that is totally different than the core business that has done in the past and that's for me the green curve and you need to start to gather the green curve in order to stay successful for the next years but this is a transformation that doesn't mean just digitization of processes or products it's a fundamental transformation meaning a fundamental different business model that they need to come up with and the important thing here is what I figured out there are a lot of folks on the page what do you need to do to rise on the green curve you need to do lean start-up thinking etc but the key challenge and executives are not really familiar with that is how can you make sure that you thrive still in your core business and in parallel to that thrive and develop and create a new business and targeting this dilemma and handling this dilemma is a key challenge for executives and only if you know how to how to it's about leadership format which in some cases still makes a lot of sense but then on the green curve it's often early leadership it's about how to make an even return on investment on the green curve you don't have those numbers it doesn't make sense to come up with some events for a business that's platform based but you don't know how this will end up so it's about moonshots it's about scalability it's about a number of people still don't get that they still ask their team can you come up with a business plan and show us what's going to be years from now but that's so difficult it's more about the vision, the story the number of uses that you need to think about the first curve is about customer retention management the second curve is about customer charity and user experience and all those things on the first curve we think about sustainable innovation we have to innovate as well about sustainable incremental innovation and on the other side it's about on the one hand it's about 5% it's a market share and on the other side the winner takes it all so you see it's really dilemma both and both is important it's not that you should only do the right hand side this is the right hand side the right hand side we should also still care about the left hand side combining those two worlds it's so difficult and after having done those hundred interviews I have to admit I'm only very few seen level people that are able to do that in an authentic way that's also important not pretending but in an authentic way that everybody in their team and in their organization sees it and understands it the other one is about no failure and the other one is about partnership, ecosystems and four points that you need to think about why do you need to transform why do you need to do the transformation or transformation channel or ecosystem or whatever and in this case you need to get that in order to be successful so that's the first step build your own double S curve and explain that to your team then the second one is about the wants so you need to come up with a strategy a novel strategy in order to make sure how you tackle this transformation and for me it's about a dual strategy so the first strategy is about how can I optimize my core business how can I use digitalization AI and technologies to optimize my core business but then in addition to that how can I use those technologies to come up with fundamentally new business models that as said might mainly disrupt my core business in the long run so you need to think about those two dual strategy and then two business models that you can use in order to try on both curves and then third and this is the most important challenge and then you said it's about the how dimensions and implementation it's also a strategy to deal with as well but implementation is much more important so deciding for transformation the first one which is the right technology that you want to use and that you can use for your business the third one information manual that you have for your own and then the fourth one is needing transformation do you have the right leadership people in your organization to make sure that you can succeed with your transformation transformation means you have the right people and the right skills and you have the right culture and before I go to the next one I want to just share two or three examples transformation was very important that you need to separate it so transformation is fundamentally different business models will not be able to do it in your core organization so you need to take it out you need to separate it and I got to know a lot of nice examples where the core organization was somewhere in the middle of the country and then for the fundamentally new business they hired start-up talent and together with the start-up guys they came up with this fundamentally new business model separated from the core organization they were allowed to use different IT processes they had different contracts and people in the core organization and they even located in different cities in Silicon Valley or a girl in my district there was a lot of start-up hotspots so you can make sure that you can build it up for your own organization but then it's important that you have the linkings in between as well so they called it in the interviews the portal hotspots so that you have people that are able to understand the core business but also to understand the new start-up god and to make sure that they can translate in those two worlds and one company even kind of was also nice they had those internships in the core organization the possibility to work for two months in the start-up and also the other way around so that the start-up people had the possibility to work three months in the core organization to make sure that you transfer this knowledge so that's also very important and then just speaking other ones leading and having the right people that need this translation and make sure that the employees, the possibilities to come up with ideas, to pitch the ideas to the C-level people and to make sure that those ideas are heard and that these ideas are also implemented just last week I had a workshop with the CEO and we did it together with this top 20 people and then as the first exercise I asked them to come up with a future date that the organization wouldn't be there anymore and then the CEO found a lot of reasons why this organization will die in the next three years and then the CEO stood up and then he gave a funeral speech to this old top management team and that was so powerful because when everybody saw he sees the threat that you have and he really supports us in doing something else you need to be part of this too and just to finish up with and then at the end you also need to measure the results so if you don't measure it nothing gets done and you have to think about different measurements of the new sector which is not the traditional KPI that more do they have a vision do they have some customer charity etc. and then also track it it's not successful it's also important to stop those projects so if you think about those four dimensions that's what I learned in those 100 interviews then you can be successful and master it based on research but also just based on really working alongside some big organizations I believe very strongly that if we were all to come back through 6 to 7 years from now and have a day's care talking about transformation the conversations that we have the presentations we give will be very different from what we're going to see here and talk about today and the reason for that is that transformation itself is going through a period of major transformation I also smile something that's probably something that a number of you have experienced if you think back to the dialogue and experiences you had 3 or 4 years ago what we're living now feels different and we're all smart people we look at the sequence of the rising and it's going to get even more there's a range of economic, competitive technological factors that are going to impact also growth rates are going to be higher but of course we're seeing massive of these things the organizations the advertising circles that have grown up to be seen entirely in a digital mindset we're seeing increasing investor activism and the price and winning is raising again I mean if you look at profitability for example you look at profitability the top quarter hours bottom quarter hours say back in the 1990s there was something like that there was a gap now it's around a full percentage point of gap however it's harder than ever to hang on to that so your profitability will seep back to the average faster lead which faces into a state that many of you are starting to experience a state of like always long transformation now further doing that environmental and geopolitical factors that are all very very well climate change climate change is really raising the states of government and it's going to raise the states of business business is going to have to respond the society pressures are going to be enormous AI those investments are going to pay off many of them and it's going to be the challenge of how does AI interface with humans a lot of conversations about AI replacing jobs that will happen and that is a very big issue in and of itself but maybe the bigger issue or definitely the bigger issue and the bigger opportunity potentially is how AI and humans are going to interface and what the transformation consequences of that are going to be so transformation is not going to get easy I think the challenge is just at the same time I don't want to sound negative about it because by my nature glass is usually always half full but I think in this case I do believe glass is at least half full and now I think because at the end of the day I still have great faith in things and transformation is going to be and it is now still all about but let me make a few points about the big cookie cover solution I wish it was we're going to do great frameworks today and frameworks can be very powerful they can give us guidance tools also can be very powerful particularly in the hands of teams tasks and initiatives to have it deliverable and the hands of frontline leaders because it can give them leverage and strategy strategy can still matter great making the choices of how you're going to win even though that cycle is going to be less than ever but they're also the delivery very critical but what's really going to be about success frankly it's going to be practice it's going to be taking from other sources of frameworks and tools your own history and your experience set and in the most minimally sufficient and effective way that it takes ideally leveraging your own accountability from past transformation to succeed and what are some of the elements of that it's going to be understanding the context that you're in where you're at where you need to go what are the factors that might be an evidence to that and then building a real sense of goodness and then mobilizing people around that going after the opportunities and attacking the challenges so unleashing the power of people is going to be critical and there's a lot of conversation out there we hear about agility agility is going to be very important we've talked about AI combining with human beings and what does that mean we're going to see new structures we're going to see a shift in traditional silo structures but leadership leadership is going to be as important as it has ever been and that's what people seem to lose sight of they talk a great deal about unleashing the power of people and tears but leaders are going to have a very critical role to playing this as well not on a traditional command and control sense but much more around enabling people and teams to succeed so let's talk a little bit about that this is a framework sorry about introducing the framework but it's a way to think about a lot of the things which leaders do all the time and it's a combination of those on the one hand reinforcing accountability and on the other energizing people and if you look under the head it's under reinforcing accountability or energizing people in the non-voluntary I don't think you're going to see anything much there that you wouldn't already recognize something very poor for leaders but I think the interesting thing for the future is that the intersection because I think here here is where leaders are going to face the biggest challenges and where there is the greatest opportunity it's also where media leaders are going to have to confront their own challenges how they see their roles and whether they're prepared to do this some won't be but many will so what is it about it's about role modeling it's about grabbing a hold of the intended purpose and being highly visible getting out of your office and being part of teams actively trying to remove road cocks it's about front line leadership things that are very important to get into the teams part of what you role model part of what you're talking about part of what you're going out of your way to remove obstacles around agility digital instilling a culture of failing past and learning past but at the same time making sure that when you are facing critical and complex problems that you truly do understand what's going on that the right root cause analysis is done failing past and learning past is good in many circumstances not all leaders play a great role in terms of making sure the right approach is taken to the complex problems there's a lot of conversation around these days the big A agile sometimes it's at the expense of water for delivery the reality is both are very powerful delivery mechanisms the bigger problem is that neither is frequent neither is effectively applied pick the right delivery mechanism to make sure it's properly applied leaders have a role in making sure that that happens when you're right supports in place and the teams make the right judgments actively supporting diversity in the appointments that are made in the organisation in how teams are formed and in how ideas are generated leaders have a role model of that as well celebrating successes but also there will be tough decisions leaders will have to take those but make sure that people understand why and that they are taken fairly finally, ensuring that teams are set up for success recognising that your resources are finite and you're going to have to do that on a portfolio basis sometimes marginalising some teams that's real with that, I'll thank you all for your time with what lies ahead I'm counting the dilemmas of transformation and I think that brings us to quick things