Radical renewal in industrial companies is in search in Nando Malmelin’s interesting new book Radikaali uudistuminen – Miten johtaa murroksessa (Radical renewal – How to lead a transition). Many companies focus on the challenges of the present and the skills of the past instead of striving to create the future, Malmelin states. Especially in industries saturated with strong traditions, change is difficult to manage and slow to implement.
The book is based on interviews with leaders of industrial companies and a good amount of literature. While leaders view the ability to innovate as moderately good, Malmelin identifies a number of challenges with the past of the organization, with the current pressures, and with the vague prospects for the future.
Malmelin writes that old-fashioned thinking models plague large companies in particular. Satisfaction with current operations and the success already achieved are keeping the renewals small. I see the same thing in the field of data, the size of the reform is often very modest. Also, it seems to be very easy to regress from the progress back to old ways of thinking and ways of measuring when there’s some headwind. That’s why it’s always refreshing to read about renewal and long-term prospects, to keep oneself on the right track.
Technological development is often the factor of change that causes great upheavals, but it won’t become an innovation on its own, says Malmelin. Technologies will only change the world when skilled people are able to apply and exploit them collaboratively. In my eyes, it’s all about the people.
Malmelin also raises the importance of data and analysis methods for industrial companies. “We need diverse expertise and a proactive view of customers’ wishes, needs, and behavior.” All this is needed more holistically and more broadly. “Digital experimentation and development cannot remain a separate part of an organization.” I couldn’t agree more.
Progress from product and production orientation to customer orientation has often been slow, says Malmelin. Customer value does not guide operations and business. There is a need to prioritize customer goals over the other goals, and this is not self-evident in many organizations.
Malmelin also points out conservative customers as an obstacle to renewal. I’ve also seen this in the media sector, the voices of conservative masses are easy to bend to, and renewal regresses. Ritva Leino also talks about this in her book Median valtaajat.
Nine leadership principles of renewal are stated in three categories. Renewal related to 1. The growth mindset: questioning, autonomy, and empathy, 2. Ambidextrous leadership: explorations, innovation, and co-development, and 3. Strategic foresight: future literacy, visionary, and thought leadership. Malmelin opens each principle in depth.
My favorite three principles of the nine are first that renewal is based on questioning and experimentation, not on applying familiar and tested approaches. Second, that holistic understanding and creativity are supported by the diversity of skills from experts of different ages, gender, and backgrounds. And third that autonomy and a mandate to act are needed to accelerate the change. Customer point of view must guide in all the layers of renewal.
Malmelin writes that the greatest value of experimentation is often learning, and I couldn’t agree more. It is important to analyze and learn about each experiment in a way that will change the way we work in the future. The book refers to agile development and the creative effects of different practices but does not go into concrete models or examples, although I would have liked to have read about them.
Renewable organizations need people who can listen to each other and empathetically adjust their operations. Leaders are often those who are fast extroverts, how to take advantage of it and at the same time give the most weight to the voices of introvert/extrovert experts? Companies are also increasingly recognizing the importance of partner networks, the best ideas or experts for all problems are rarely in your own team or organization, but can be found in network collaboration.
Renewal is accelerated by systematic and interactive strategic foresight, writes Malmelin. It’s not just about understanding change from a wider area than your own industry, but also about engaging people to make the change. Radical renewal requires identifying and exploiting unexpected opportunities and tolerating unfinishedness and uncertainty on the way to something new.
Nando Malmelin: Radikaali uudistuminen – Miten johtaa murroksessa (Radical renewal – How to lead a transition).
Can be bought in Finnish in KauppakamariKauppa
Small experiments and inspiration 