5 Questions:  Liz Wiseman on Building Transformation Momentum from the Middle

5 Questions: Liz Wiseman on Building Transformation Momentum from the Middle

Conventional wisdom tells us that transformation flows from the C-suite down because real change requires executive mandates and company-wide rollouts. But what if our focus on building transformation momentum is exactly backward?

Ever since reading Multipliers, where Liz Wiseman revealed how the best leaders amplify their people rather than diminish them, I’ve wondered if, like innovation, organizational transformation and change also require us to do the opposite of our instincts.

I recently had the opportunity to dig deeper into this topic with her, and I couldn’t resist exploring how change really happens in large organizations.

What emerged wasn’t another framework—it was something more brilliant and subversive: how middle managers quietly become change agents, why sustainable transformation looks nothing like a launch event, and the liberating truth that leaders don’t need to be perfect.


 

Robyn Bolton: What’s the one piece of conventional wisdom about leading change that you believe organizations need to unlearn?

Lize Wiseman: I don’t believe that change needs to start, or even be sponsored, at the top of the organization.  I’ve seen so much change led from the middle management ranks.  When middle managers experiment with new mindsets and practices inside their organizations, they produce pockets of success—anomalies that catch the attention of senior executives and corporate staffers who are highly adept at detecting variances (both negative and positive). When senior executives notice positive outcomes, they are quick to elevate and endorse the new practices, in turn spreading the practices to other parts of the organization. In other words, most senior executives are adept at spotting a parade and getting in front of it! (Incidentally, this is one of several executive skills you won’t find documented on any official leadership competency model.)  If you don’t yet have the political capital to lead a company-wide initiative, run a pilot with a few rising middle managers. Shine a spotlight on their success and let the practices spread to their peers. Expose their good work to the executive team and make yourself available to turn the parade into a movement.

 

RB: In your research and work, what’s the most surprising pattern you’ve observed about successful organizational transformation?”

LW: As mentioned above, I believe the starting point for transformation is less important than how you will sustain the momentum you’ve generated. Unfortunately, most new initiatives—be they corporate change initiatives or personal improvement plans—begin with a bang but fizzle out in what I call “the failure to launch” cycle. Transformation that is sustained over time usually starts small and builds a series of successive wins. Each win provides the energy needed to carry the work into the next phase. These series of wins generate the energy and collective will needed to complete the cycle of success. As that cycle spins, nascent beliefs become more deeply entrenched and old survival strategies get supplanted by new methods to not just survive but thrive inside the organization.

Each little success requires careful support and an evidence-backed PR campaign to build awareness and broad support for the new direction. Nascent behavior and beliefs are fragile and will be overpowered by older assumptions until they are strengthened by supporting evidence. The supporting evidence forms a buttress around the budding mindset or practices, much like a brace around a sapling provides stability until the tree is strong enough to stand on its own.

 

RB: How has your thinking about what makes an effective leader evolved over the course of your career?

LW: When I began researching good leadership, most diminishing leaders appeared to be tyrannical, narcissistic bullies. But as I further studied the problem, I’ve come to see that the vast majority of the diminishing happening inside our workplaces is done with the best of intentions, by what I call the Accidental Diminisher—good people trying to be good managers. I’ve become less interested in knowing who is a Diminisher and much more interested in understanding what provokes the Diminisher tendencies that lurk inside each of us.

 


RB: When you consider all the organizations you’ve studied, what’s the most powerful lesson about driving meaningful change that most leaders overlook?

LW: One of the dangers of trying to lead change from the top is that most leaders have a hard time being a constant role model for the changes they advocate for.  Even the best leaders can’t always display the positive behaviors they espouse and ask their organizations to embody.  It’s human to slip up.  But when behavior change is led primarily from the top, these all-too-natural slip-ups can become major setbacks for the whole organization because they provide visible evidence that the new behavior isn’t required or feasible, and followers can easily give up.  Wise leaders understand this dynamic and build a hypocrisy factor into their change plans–meaning, they acknowledge upfront that they aspire to the new behavior but don’t always fully embody it, yet. They set the expectation that there will be setbacks and invite people to help them be better leaders as well.  They acknowledge that the route to new behavior typically looks like the acclimation process used by high-elevation climbers.  These climbers spend some of their days in ascent, but once they reach new elevations, often have to descend to lower camps to acclimate.  It’s the proverbial two-steps-forward, one-step-back process.  When leaders acknowledge their shortcomings and the likelihood of their future missteps, they not only minimize the chance that others give up when they see hypocrisy above them, but they create space for others to make and recover from their own mistakes.

 

RB: Looking ahead, what do you believe is the most important capability leaders need to develop to help their organizations thrive?

LW: Leading in uncertainty, specifically the ability to lead people to destinations that they themselves have never been.


I love that Liz’s insights flip the script, calling on people outside the C-Suite to stop waiting for permission and start running quiet experiments, building proof points, and letting success do the selling.

The next time you want a change or have change thrust upon you, don’t look for a parade to lead. Look for one person willing to try something different and get to work.

Why Business Transformation Fails (and What Data Centers Can Teach Us About Getting It Right)

Why Business Transformation Fails (and What Data Centers Can Teach Us About Getting It Right)

On May 6, Nvidia CEO Jensen Huang and ServiceNow CEO Bill McDermott joined CNBC’s “Power Lunch” to discuss the companies’ partnership.  But something that Huang said about large-scale cloud service providers (i.e., hyperscalers) at the end of the interview stopped me in my tracks:

It’s not a data center that stores information. It’s a factory that produces intelligence. And these intelligence tokens could be reformulated into music, images, words, avatars, recommendations of music, movies, or, you know, supply chain optimization techniques.

What struck me wasn’t the claim about what data centers and AI could create—we’ve seen evidence of that already. It was the reframing of data centers from storage solutions to “intelligence factories.”

When leaders fail to lead, or even recognize that the business they’re in is different, even the best efforts at business transformation are doomed.

Because reframing is how Disruption begins.

 

Data Centers Are No Longer in the Data Business

Repositioning your company to serve a new job requires rethinking, redesigning, and rebuilding everything.

Consider the old adage that railroads failed because they thought they were in the railroad business. By defining themselves by their offering (railroad transportation) rather than the Jobs to be Done they solve (move people and cargo from A to B), railroads struggled to adapt as automobiles became common and infrastructure investments shifted from railroads to highways.

Data centers have similarly defined themselves by their offering (data storage). However, Huang’s reframing signals a critical shift in thinking about the Jobs that data centers solve: “provide intelligence when I need it” and “create X using this intelligence.”

 

Intelligence Factories Require a New Business Model

This shift—from providing infrastructure for storing data to producing intelligence, strategic analysis, and creative output—will impact business models dramatically.

Current pricing models based on power consumption or physical space will fail to capture the full value created. Capabilities mustexpand beyond building infrastructure to include machine learning and AI partnerships.

 

But Intelligence Factories are Just the Beginning

While Intelligence Factories will require data centers to rethink their business models and may even introduce a new basis of competition (a requirement for Disruption), they’re only a stepping-stone to something far more disruptive: Dream Factories.

While the term “Dream Factory” was coined to describe movie studios during  Golden Era, the phrase is starting to be used to describe the next iteration of data centers and AI. Today’s AI is limited to existing data and machine learning capabilities, but we’re approaching the day when it can create wholly new music, images, words, avatars, recommendations, and optimization techniques.

 

This Is Happening to Your Business, Too

This progression will transform industries far beyond technology. Here’s what the evolution from data storage to Intelligence Factory to Dream Factory could look like for you:

  • Healthcare: From storing medical records to diagnosing conditions to creating novel treatments
  • Financial Services: From tracking transactions to predicting market movements to designing new financial instruments
  • Manufacturing: From inventory management to process optimization to inventing new materials
  • Retail: From cataloging products to personalizing recommendations to generating products that don’t yet exist

 

How to prepare for your Dream Factory Era

Ask yourself and your team these 3 questions:

  1. Is my company defining itself by what it produces today or by the evolving needs it serves?
  2. What is our industry’s version of the shift from data storage to dream factory?
  3. What happens to our competitive advantage if someone else creates our industry’s dream factory before we do?

If you’re serious about transformation, take a cue from the data centers: redefine what business you’re in—before someone else does.

After all, the key to success isn’t trying to stay a data center. It’s recognizing you’ve become an intelligence factory, and your long-term success depends on becoming a dream factory.

How to Go from Dinosaur to Disruptor in 3 Quotes

How to Go from Dinosaur to Disruptor in 3 Quotes

If you’re leading a legacy business through uncertainty, pay attention. When The Cut asked, “Can Simon & Schuster Become the A24 of Books?” I expected puff-piece PR. What I read was a quiet masterclass in business transformation—delivered in three deceptively casual quotes from Sean Manning, Simon & Schuster’s new CEO. He’s trying to transform a dinosaur into a disruptor and lays out a leadership playbook worth stealing.

Seventy-four percent of corporate transformations fail, according to BCG. So why should we believe this one might be different? Because every now and then, someone in a legacy industry goes beyond memorable soundbites and actually makes moves. Manning’s early actions—and the thinking behind them—hint that this is a transformation worth paying attention to.

 

“A lot of what the publishing industry does is just speaking to the converted.”

When Manning says this, he’s not just throwing shade—he’s naming a common and systemic failure. While publishing execs bemoan declining readership, they keep targeting the same demographic that’s been buying hardcovers for decades.

Sound familiar?

Every legacy industry does this. It’s easier—and more immediately profitable—to sell to those who already believe. The ROI is better. The risk is lower. And that’s precisely how disruption takes root.

As Clayton Christensen warned in The Innovator’s Dilemma, established players obsess over their best customers and ignore emerging ones—until it’s too late. They fear that reaching the unconverted dilutes focus or stretches resources. But that thinking is wrong.  Even in a world of finite resources, you can’t afford to pick one or the other.  Transformation, heck, even survival, requires both.

 

“We’re essentially an entertainment company with books at the center.”

Be still my heart. A CEO who defines his company by the Job(to be Done) it performs in people’s lives? Swoon.

This is another key to avoiding disruption – don’t define yourself by your product or industry. Define yourself by the value you create for customers.

Executives love repeating that “railroads went out of business because they thought their business was railroads.” But ask those same executives what business they’re in, and they’ll immediately box themselves into a list of products or industry classifications or some vague platitude about being in the “people business” that gets conveniently shelved when business gets bumpy.

When you define yourself by the Job you do for your customers, you quickly discover more growth opportunities you could pursue. New channels. New products. New partnerships. You’re out of the box —and ready to grow.

 

“The worry is that we can’t afford to fail. But if we don’t try to do something, we’re really screwed.”

It’s easy to calculate the cost of trying and failing. You have the literal receipts. It’s nearly impossible to calculate the cost of not trying. That’s why large organizations sit on the sidelines and let startups take the risks.

But there IS a cost to waiting. You see it in the market share lost to new entrants and the skyrocketing valuations of successful startups. The problem? That information comes too late to do anything about it.

Transformation isn’t just about ideas. It’s about choosing action over analysis. Or, as Manning put it, “Let’s try this and see what happens.”

Walking the Talk

Quotable leadership is cute. Transformation leadership is concrete. Manning’s doing more than talking—he’s breaking industry norms.

Less than six months into his tenure as CEO, he announced that Simon & Schuster would no longer require blurbs—those back-of-jacket endorsements that favor the well-connected. He greenlit a web series, Bookstore Blitz, and showed up at tapings. And he’s reframing what publishing can be, not just what it’s always been.

The journey from dinosaur to disruptor is long, messy, and uncertain. But less than a year into the job, Manning is walking in the right direction.

Are you?

I Thought I Knew Strategy Development – Then ChatGPT Blew My Mind

I Thought I Knew Strategy Development – Then ChatGPT Blew My Mind

It’s easy to get complacent about your strategy skills.  After all, our yearly “strategic planning” processes result in quarterly “strategic priorities” that require daily “strategic decisions.” So, it’s reasonable to assume that we know what we’re doing when it comes to strategy development.

I’ll admit I did. After all, I’ve written strategic plans for major brands, developed strategies for billion-dollar businesses, and teach strategy in a Masters program.

I thought I knew what I was doing.

Then ChatGPT proved me wrong.

 

How it Began

My student’s Midterm assignment for this semester is to develop, recommend, and support a strategy for the companies they’ve studied for the past seven weeks. Each week, we apply a different framework – Strategy Kernel, SWOT, Business Model Canvas, Porter’s 5 Forces, PESTLE, Value Chain – to a case study. Then, for homework, they apply the framework to the company they are analyzing.

Now, it’s time to roll up all that analysis and turn it into strategic insights and a recommended strategy.

Naturally, they asked me for examples.

I don’t have a whole lot of examples, and I have precisely none that I can share with them.

I quickly fed The LEGO Group’s Annual Report, Sustainability Report, and Modern Slavery and Transparency Statements into ChatGPT and went to work.

Two hours later, I had everything needed to make a solid case that LEGO needs to change its strategy due to risks with consumers, partners, and retailers. Not only that, the strategy was concise and memorable, with only 34 carefully chosen words waiting to be brought to life through the execution of seven initiatives.

Two hours after that, all of my genius strategic analysis had been poured into a beautifully designed and perfectly LEGO-branded presentation that, in a mere six slides, laid out the entire case for change (which was, of course, supported by a 10-page appendix).

 

The Moment

As I gazed lovingly at my work, I felt pretty proud of myself. I even toyed with the idea of dropping a copy off at LEGO’s Back Bay headquarters in case they needed some help.

I chuckled at my little daydream, knowing no one would look at it because no one asked for it, and no implementers were involved in creating it.

That’s when it hit me.

All the reasons my daydream would never become a reality also applied to every strategy effort I’ve ever been part of.

  • No one looks at your strategy because it’s just a box to check to get next year’s budget.
  • No one asks for it because they’re already working hard to maintain the status quo. They don’t have the time or energy to imagine a better future when they’re just trying to get through today.
  • No one responsible for implementing it was involved in creating it because strategy is created at high levels of the organization or outsourced to consultants.

What the strategy is doesn’t matter.*

What matters is how the strategy was created.

Conversation is the only way to create a successful, actionable, and impactful strategy.

Conversation with the people responsible for implementing it, they people on the ground and the front lines, the people dealing with the ripple effects of all those “strategic” decisions.

 

How It’s Going

Today, I’m challenging myself—and you—to make strategy a dialogue, not a monologue. To value participation over presentation. Because strategy without conversation isn’t strategy at all—it’s just a beautiful document waiting to be forgotten.

Who are you inviting into your next strategy conversation that isn’t usually there but should be? Share in the comments below.

Strategic Planning: You’re Doing It Wrong (According to Seth Godin)

Strategic Planning: You’re Doing It Wrong (According to Seth Godin)

It’s that time of year again – the annual ritual of strategic planning. But as Seth Godin points out in “How to Avoid Strategy Myopia,” we often mistake annual budgets and operational efficiency plans for true strategy. Strategies are not plans or guarantees; they’re informed choices to pursue possibilities that may or may not work.

Godin’s insights, while often associated with innovation, are fundamentally about strategy in its purest form. They challenge us to look beyond next quarter’s earnings and focus on transformative potential just beyond our current vision.

The Myth of “Strategic Planning”

Consider for a moment the last strategic planning session you attended. Was it dominated by discussions of cost-cutting measures, market share percentages, and incremental improvements? If so, you’re not alone. Many organizations focus on optimizing their current operations, behavior that is reinforced by the processes, templates, and forms required to secure next year’s funding.

However, as Godin warns, “When the boss demands a strategy that comes with certainty and proof, we’re likely to settle for a collection of chores, tasks, and tactics, which is not the same as an elegant, resilient strategy. To do strategy right, we need to lean into possibility.”

The Realities We Must Confront

Godin challenges us to confront several uncomfortable truths:

Today’s data doesn’t predict tomorrow: Executives rely heavily on easily measurable metrics based on false proxies when they make decisions. While these metrics provide a sense of control and comfort, they close our eyes to emerging opportunities and threats.  When AT&T’s executives considered exiting the cell phone market in the 1980s, they turned to McKinsey to find data to inform their decision.  Estimating that the total worldwide market for cell phones was 900,000, AT&T executives were comfortable exiting.   It’s unknown if that comfort was worth the $11.5 billion AT&T spent to acquire McCaw Cellular in 1995.

Serving everyone serves no one: “Strategy myopia occurs when we fail to identify who we seek to serve and focus on what we seek to produce instead.”  AMEN!  True strategy begins with a deep understanding of our customers’ evolving needs, not just their current preferences. This requires empathy, foresight, and a willingness to challenge our assumptions.  It also requires us to listen and act on what we hear from customers and not just from our bosses.

“All of the Above” is not an option: Strategy requires that we make choices and is as much about what we choose not to do as what we commit to doing. It requires the courage to say no to good opportunities in service of great ones.  It requires facing your FOMO (Fear of Missing Out), loss aversion bias, and finding the courage to keep going.

5 Practical Steps You Can Take

If any of these sound familiar, it’s because they’re also innovation best practices. 

  1. Dedicate One Day per Month for Strategic Thinking: Set aside one full day each month for long-term strategic questions, free from the “Tyranny of Now.”
  2. Cultivate Diverse Perspectives: Invite and listen to voices from different backgrounds, disciplines, and levels within the organization.
  3. Embrace Small-Scale Experimentation: Run a series of small, low-cost, low-profile experiments instead of betting everything on a single initiative.
  4. Redefine Success Metrics: Move beyond traditional financial metrics to include indicators of future potential, such as customer lifetime value and adaptability to change.
  5. Foster a Culture of Questioning: Channel your inner two-year-old and ask “why” with genuine curiosity. Encourage your team to challenge assumptions because the most transformative strategies often emerge from questioning the status quo.

As we continue through this season of strategic planning, let’s challenge ourselves to think beyond the annual budget. Let’s envision the future we want to create and chart a course to get there. After all, in the words of Godin himself, “It doesn’t matter how fast you’re going if you’re headed in the wrong direction.”

Leaked MrBeast Document: A Shining Example of Leadership

Leaked MrBeast Document: A Shining Example of Leadership

In the often murky world of corporate communication, a leaked MrBeast document has emerged as a beacon of clarity. Far from being your typical vague, jargon-filled memo, this onboarding document is a crystal-clear recipe for success that’s as refreshing as it is rare.

But first, let’s address the elephant in the room. MrBeast’s empire isn’t without its share of controversy. Reports of toxic work environments, unsafe conditions for contestants, and allegations of rigged games cast a shadow over his content creation machine and his leadership capabilities. These are serious issues that merit investigation and discussion. As a result, this post isn’t an endorsement of MrBeast as a leader, it’s an endorsement of an onboarding document that he wrote.

The Secret Sauce: Clarity Meets Innovation

What sets this document apart is its razor-sharp clarity and relentless focus on creativity. Unlike the vague platitudes that plague many corporate communications, job descriptions, and performance matrixes, this document clearly outlines expectations, success metrics, and the strategies and tactics to fuel continuous innovation.

This clarity is transformative for people and organizations. When team members understand both the guardrails and the goals, they channel their creative energy into groundbreaking ideas rather than second-guessing their approach and worrying about repercussions.

Expectations: Always Be Learning

The first principle is a clear directive: always be learning. In MrBeast’s world, this isn’t just about personal growth—it’s about staying ahead in a rapidly changing digital landscape. This commitment to continuous learning fuels innovation by ensuring the team is constantly exploring new technologies, trends, and creative techniques.

While some see the definition of A, B, and C-players as evidence of a toxic workplace, the fact is that it’s the reality in most workplaces.  It’s the absence of clarity, usually disguised by claims of family-like cultures that value diversity, that makes workplaces toxic. 

Metrics: The Start of a Feedback Loop

The focus on specific success metrics like Click-Through Rate and Average View Duration isn’t just about measurement—it’s about creating a feedback loop for innovation. Clear benchmarks developed over time allow teams to quickly assess the impact of new ideas and iterate accordingly.  It also removes the temptation and ability to “move the goalposts” to create the appearance of success.

Strategy: Structure Meets Creativity

After describing what success looks like for employees and how they’ll be measured, the document outlines a structured content formula akin to an innovation strategy. It provides a clear framework of priorities, goals, and boundaries while encouraging creative experimentation within those boundaries.

Starting with a step-by-step guide to making videos with a “wow” factor, the document also emphasizes the criticality of focusing on “critical components” and managing dependencies and

Far from the usual corporate claims that direction and “how to’s” constrain creativity and disempower employees, this approach creates a safety net that allows employees to be successful while still pushing the envelope of what’s possible in content creation.

How to Become Your Version of (a non-controversial) Mr. Beast

You don’t have to be a content creator, social media savant, or company founder to follow MrBeast’s lead.  You have to do something much more difficult – communicate clearly and consistently.

  1. Clearly define what success looks like (and doesn’t) for your employees and projects.
  2. Establish frameworks that encourage bold ideas while maintaining focus.
  3. Define objective success metrics and consistently measure, track, and use them.

This leaked MrBeast document offers more than just a glimpse into a YouTube empire; it’s a masterclass in leadership in the era of hybrid workplaces, geographically dispersed teams, and emerging cultures and norms. 

The document’s approach shows that innovation doesn’t have to be chaotic. By providing clear expectations and frameworks, leaders can create an environment where creativity thrives, and groundbreaking ideas can be rapidly developed and implemented.

When viewed in the bigger context of the MrBeast organization, however, the document is also a reminder that no matter how clear you think your communication is, you must be vigilant for those who claim that bad behavior is just a “misunderstanding.” Leaders know that no amount of views, clicks, or revenue is worth sacrificing the well-being of their teams.