The Superpowers of Change

Written by Barry Wacksman | Chairman and Co-Founder, Proto
February 13, 2023
15 min read


Intro

For the better part of the past 25 years, one of the most disruptive cycles in the history of business squarely hit our industry. Triggered by the rise of digital technology, businesses and brands spent countless amounts of time and money responding to its unprecedented challenges. A tsunami of first-of-their-kind technology brands entered our lives and became household names, while we watched our ourselves develop new technology habits on an almost daily basis (swiping, liking, pinning, tweeting, locating, downloading, autoplaying, lyfting, subscribing, TikToking, Lensaing, etc.). The pace of change put our clients (most of which are large, Fortune 500 organizations) on the defensive, dodging new competitors entering their categories while simultaneously trying to figure out which investments to make among a seemingly endless array of options to maximize growth: e-commerce, direct-to-consumer, apps, digital ecosystems, data platforms, adtech/martech and much more.

From the invention of the web in the early 1990s to the rise of e-commerce during the dot-com boom of the late 1990s to the creation of the first Web 2.0 services in the early 2000s through the rise of smartphones, social media and the app economy of the 2010s, businesses and brands continually needed to adapt to these seemingly unending disruptive forces. Unfortunately, the pace of technological change is not about to slow down. Looming on the horizon are a new swarm of potentially disruptive technologies now threatening another wave of adoption and adaptation: generative AI, blockchain, NFTs, the metaverse (whatever it turns out to be) and Web3 decentralization more broadly. If the lessons of Web 2.0 translate equally well into Web3, then business growth will require continuous adoption of new technologies and determining their appropriate role in the lives and habits of your customers.

Coping with technology disruption necessitates change. It requires anticipating, adopting and implementing “the new.” Therefore, if you are a growth leader at a company – that is, if your primary job is to drive top-line growth for a business – then, by definition, you are also a change leader.

One of your key roles now is to drive change, internally and externally, to thrive and win despite the endless tides of technology disruption affecting your company, categories and brands.

The Next Phase of Disruption

It wasn’t always this way. In the somewhat recent past, growth was a function of operational excellence. Television was the single greatest growth invention in history, and companies and brands that were reasonably good at developing creative brand ideas could leverage the reach and frequency afforded by television to drive predictable growth. And so growth was mostly a function of execution, with similarly crafted plans following year after year, only adapted for seasonality, new product introductions and new cultural trends.

But technology disruption annihilated those simpler times, including the primary cash cow of growth: ad-supported television. By 2022, live television viewing had fallen to its lowest level recorded, less than 7 hours per week for adults 18-34. Meanwhile, consumption of media on mobile devices had climbed to over 32 hours for this same segment.

In our consulting business, we started to see incumbents facing existential crises for the first time in their history. Companies that had dominated their respective categories for decades were suddenly worried about near-term survival. By reducing barriers to entry (e.g., the direct-to-consumer revolution), new disruptors entered mature categories in droves. Meanwhile, the largest technology companies sitting upon gold mines of first-party data (as well as unimaginable cash reserves) saw entry points into entirely new categories, like Amazon entering healthcare and financial services or Apple (maybe) making cars. Suddenly, everyone was competing with everyone, on a battlefield drawn around emerging technologies.

The tried and true old formulas for growth died with the digital revolution. Business as usual no longer works, and modern growth requires far more than just operational excellence at marketing and communications. To sustainably grow, most businesses must reimagine their categories and implement enterprise-level change.

Designing for Disruption

Despite the disruption and crises that have emerged as a result of the long-unfolding digital revolution, Clayton Christensen’s Innovator’s Dilemma still rules the roads of business investment. Written in 1997, The Innovator’s Dilemma posits that mature companies continually risk losing market leadership to “disruptive innovators” because they invest in the short-term value of what they are already good at (e.g., a new flavor, color, size or format), rather than investing in innovative, new technologies likely to drive longer-term value and growth. This phenomenon is doubly true of public companies, which must report their financial results on a quarterly basis and where long-term investing at the expense of short-term profit (unless your company is called Amazon or Tesla) is typically punished in the stock market.

Yes, change is hard. Change is risky.

Still, change has never been more essential. Change is also Proto’s business, the unique obsession of a large team of industry veterans and rising stars. Most of us have spent our entire careers helping complex organizations navigate change. Along the way, we have tried myriad approaches and ways of working to help facilitate change. We saw firsthand what works, what doesn’t work and what actually leads companies astray. With dozens of arrows in our back helping pioneer change, we are well equipped to offer sound advice as we sit on the cusp of the next wave of disruption.

What if there are ways to de-risk change, make it more manageable and minimize the likelihood of encountering the common failure points?

In other words, are there thoughtful ways to design for systematic change? There are! We call this approach Change Design, and it works by applying principles of design to the processes of change management to create new businesses, products, services, and brands. The intended outcome of Change Design is less painful and reactionary, and more sustainable growth. Today, we will focus on the unique principles of Change Design, what we call the 4 Superpowers of Change.


Our Principles

Change can be easier, more manageable, and less risky when it is Designed around tested and proven principles. The core principles of Change Design are to 1) frame questions, 2) simplify the plan, 3) align stakeholders, and 4) enable implementation.

Superpower #1:
Reframe the Challenge

Superpower #2:
Simplify the Plan

Superpower #3:
Align Stakeholders

Superpower #4:
Enable Implementation

Expand to read

  • The starting point for most change/innovation initiatives is a key question to be answered. However, if you do not start with the right question, the entire initiative is likely to fail.

    One of the most famous projects my team had the opportunity to work on was for a large retailer looking to better compete with Amazon. This particular company had physical stores and an e-commerce site that was not growing as fast as Amazon. The way the client originally framed the question was: how do we accelerate our e-commerce growth to catch up to Amazon’s?

    However, when we dug deeper into the data, it quickly became apparent that Amazon’s growth vs. the growth of our client’s entire business was so far out of whack that the company was facing an existential crisis: Amazon threatened to completely overwhelm this company within 5 years. So, instead of asking “how do we accelerate our e-commerce growth to catch up to Amazon’s e-commerce growth?”, the question was re-framed as “how do we more effectively compete against Amazon in order to survive?” As you can see, had we focused on the first question, our strategy might have been limited to investments in e-commerce capabilities and infrastructure, while answers to the second question enabled us to broadly consider a myriad of potential solutions, like figuring out a new role for the physical stores or leveraging merchandise categories where Amazon was still not strongly competitive. And these two areas turned out to be exactly right. Within 18 months, this particular client’s omni-channel business was actually growing faster than Amazon.

    Therefore, the 1st Superpower of Change is framing the right questions that sit at the heart of your key business challenges. So how do you know when you have framed the right questions to answer? The starting point is identifying the key business challenge, while avoiding the temptation of tying it to a potential solution. As you think about your business and its key challenges, try to frame questions in ways that are open-ended from the start, without making the leap to a particular solution. Casting the widest net yields the largest catch.

  • The dirty secret of consulting is that consultants make more money by increasing complexity. Also, many types of consulting firms are never on the hook to actually implement solutions, so the work they deliver tends to over-complicate problems rather than driving towards singular answers of what to do (or not do). A good (simple!) test of a consulting firm’s business model is whether it sells its services by the hour. If so, it is also likely that the firm’s approach will be to increase complexity so that it can sell follow-on work, to “solve” the problems its approach has created.

    A common misconception about consulting is that the work is only valuable if it is loaded with complex charts, graphics and frameworks. And indeed, the work of consulting – sifting through data and research and financials – is often riddled with complexity. But the value of consulting boils down to whether or not the advice can drive actionable, sustainable change. And in our experience, this is a function of making sure that the advice we deliver is widely legible and comprehensible. In other words, simple. A good test of simplicity is whether a broader set of stakeholders – including folks not previously involved in the project – could easily understand the advice we are providing. Could a “rank and file” employee understand?

    In our work, after the proper framing of questions described above, the second most important state to achieve early in projects is the simplification of tasks, expressed in everyday language easily understood by the entire organization. The desire for simplification is perhaps one of the reasons why brand purpose has become a somewhat trendy approach (above and beyond data that demonstrates purpose-driven companies perform better). Brand purpose is a handy tool that simplifies the internal and external motivations and ambitions of an entire company to a single phrase (e.g. “Nike: to provide inspiration and innovation to every athlete in the world.”). Other tools in the simplification arsenal include value propositions, design targets, future value maps, experience foundations and ecosystem architectures. We will unpack what we believe to be the “Fab 5” of simplification – the five outputs we are asked most often to create for clients because they help simplify the tasks and move the change agenda forward – in a future article in this series.

    Ultimately, the goal of these simplification tools is to sift through a brand’s plethora of assets to uncover, and codify, which among them are most defensible – that is, a brand’s core strengths that are uniquely ownable to no one else but said brand. Value propositions articulate and clarify them, future value maps find new opportunities to build on them and ecosystems connect them to multiply their value. Understanding your greatest strength and employing tools that sharpen and codify them gives you a clear advantage over competitors by providing focus and enabling speed to market in a way that’s ownable for your business.

  • Now that you have framed your problem appropriately and used some of the tools above to figure out what to do, how do you actually begin the painful process of implementing change? What is the right starting point (assuming there are a multitude of tasks ahead that have been identified using the strategic outputs)? And how do you attain consensus so that the organization is bought in and invested in the plan?

    There are two powerful tools proven time and again to drive alignment, even among stakeholders with seemingly competing demands and interests: data and prototyping. And many projects that fail to gain alignment typically are lacking in one or both of these. Let’s start with data.

    Data

    Data is one of the key sources of fuel for the digitally-connected age, and many companies are swimming in more intimate, personal data about their customers than was ever believed to be possible to obtain. As consumers use digital products and services, they leave behind a trail of data that is truly insightful about their behaviors and habits as well as actionable in terms of activating future product or service development. Unfortunately, data is not equally distributed, and the world is divided between data haves and data have nots. New economy companies born of the digital revolution inherently have data, while classic Fortune 500 companies born prior to the invention of the Web typically lack it. At one time, market research served as a proxy for lack of data: we did research to try to find out by extrapolation the very insights that data reveals in real time. But now, data trumps research as the foundational source of strategic knowledge.

    Pertinent to the topic of alignment, data is the great equalizer and settler of disagreement. As Daniel Moynihan famously remarked, “You are entitled to your own opinions, but you are not entitled to your own facts.” As it relates to change and innovation, data is “the facts.” In our business, anytime there have been disagreements with clients or internally among their teams, it was often looking at data that ultimately yielded resolution. No change/innovation project can be successful if it is deprived of data – and any shortfalls in data ultimately rear their head at those exact moments when alignment is needed to move forward. Therefore, it is essential to have a data collection and interpretation strategy if one is going to drive a successful change/innovation initiative.

    Prototype

    The second key factor of alignment requires acknowledging a simple fact of human nature: most folks cannot get on board unless they can actually see where the boat is heading. Therefore, design and prototyping are critical for alignment and must be planned for from the very outset of a change/innovation project.

    In fact, this was always one of the Achilles Heels of management consulting: the inability to help clients envision change via design. All the charts and frameworks and spreadsheets in the world cannot help people imagine a new future for their company faster than a prototype for a new proposition. And design and prototyping are even more critical to gain alignment when moving beyond the working project team outward to other stakeholders and executive decision makers who have not been as intimately involved in the work. Like lack of data, the lack of design/prototyping are key barriers to ensuring everyone has the same understanding of where the company is trying to go. And prototyping does not have to be a heavy investment. For a recent engagement on the Future of Hydration, our strategists worked closely with creative technologists and experience designers to create mockups of future water systems in different contexts (made possible by AI) to make the vision tangible. It not only invited meaningful conversation in the boardroom, but also made it easier for the global leads to make the vision resonate with country leads and mobilize stakeholders. More on this topic in the next section.

  • The journey from thinking to making essential to all change/innovation initiatives was historically disconnected given the number of external partners and internal teams who kept the tasks separated. For instance, the management consultants who were often tasked with the strategic thinking were never on the hook for the making or the implementation, so their recommendations were often disjointed from the people and process realities required to actually bring ideas to market. Conversely, external partners and teams whose main job was execution were often disconnected from the commercial thinking and financial realities of what it takes to create a sustainable business idea.

    It is in this disconnect between strategy and implementation that most change/innovation projects go to die. Handoffs between partners and/or internal teams often lead to tricky missteps and falls. In our decades of experience helping drive change and innovation within large, complex and matrix organizations, this is by far the most common failure point (after getting started in the first place, see Innovator’s Dilemma above). So how do you mitigate failure, and how do you smooth the rocky path from pure strategic thought to actual, real-world launch of new product, service, business or brand?

    The short answer: always be implementing (the innovator’s corollary to the salesperson’s “always be closing.”) As long as we think of implementation as a set of discrete tasks at the end that are separate from “the thinking,” we set ourselves up for the missteps and falls. The way to do this is to think of change/transformation/innovation as a fluid process that requires interdisciplinary thinking from the outset and where design processes start almost immediately at the beginning, always with an eye towards actually bringing ideas to market.

    A Change Design team is composed of a mix of disciplines: commercial thinkers, innovation strategists, brand thinkers and designers, experience thinkers and designers and technologists, with some data expertise thrown in to boot. The processes of Change Design are based on iterative loops, but where every discrete task and output is designed to help guide downstream decision making and implementation. As described in the prior section, we strongly believe that design is one of the key drivers of alignment, so “making” (in the form of prototypes of various degrees of fidelity) starts at the beginning of projects, rather than a singular output that lives at the very end.

    If process and bringing design and prototyping early are key drivers of enabling implementation, there are also tools that come closer to the end that are equally valuable: playbooks. We used to think of brand guidelines or experience rules as constraints that needed to be followed, and because they never helped anyone do their job better, they were easily ignored. Change Design moves beyond rigid rules in favor of playbooks that inspire creativity and implementation. A brand or experience playbook (often one and the same, as modern brands are defined not just by how they appear and what they say, but also how they act and behave) is a set of tools – delivered digitally, by definition – that inspire teams to apply brand and experience thinking.

    Modern playbooks can even go beyond describing how to creatively apply brand and experience. Using platforms like Figma and Canva, they can even provide tools that generate applications of design. We call these “generative tools,” and they can help enable internal teams to actually take the brand (and experience) and run with it, without needing extra designers, writers or coders. Planning around who will actually be on the hook to steer implementation and ensuring those folks have tools appropriate to their budgets and resources is another essential way in which Change Design enables implementation.

Concluding Thoughts

There is no doubt that our world will continue to be disrupted by technology, and new revolutions looming on the horizon are likely to affect every single category of business. Despite the fact that the digital age has been going full steam for more than two decades, we are continually surprised by how few mature companies are able to embrace change and take advantage of the opportunities afforded by new technologies, while also fending off the threats. Chalk part of this up to the Innovator’s Dilemma, but the other part is a historical lack of proven paths that de-risk investments in change and make the entire process less scary and overwhelming.

If you have followed along so far, then hopefully you have a basic understanding of Change Design and its key principles of framing, simplifying, aligning and enabling as the Superpowers of Change. Download the companion workbook to start applying these principles to your own company’s current change/innovation projects, and let us know if you find them helpful on your journey.


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Barry Wacksman | Chairman and Co-Founder

​​Barry Wacksman is the Chairman and co-founder of Proto and co-author of Connected by Design (2014, Jossey-Bass/Wiley and Sons). Prior to founding Proto in 2021, he spent 21 years at R/GA, where he led corporate strategy and growth, most recently as Vice Chairman. In his spare time, he’s a mediocre photographer but a mean barista.

Check out Barry’s full bio here.