Leveraging the Dialogic Change Approach to Drive Organizational Transformation

Dialogic Change: A Collaborative Approach to Accelerate Transformation

The dialogic change approach is an open-source, collaborative model empowering employees to co-create and execute change by encouraging participation, fostering dialogue, and shifting ownership to those closest to the change. This approach moves away from the conventional top-down change management framework, encouraging open communication and shifting away from traditional hierarchical processes.

This executive brief summarizes insights from top change and transformation leaders on how organizations can leverage dialogic change to accelerate transformation initiatives. Identify key principles, challenges, and strategies necessary to integrate this approach effectively.

Roundtable date: October 28th, 2024

Roundtable Participants

Led by Nellie Wartoft, CEO of Tigerhall and Chair of the ECLC

• Allison Drobniak, SVP, Chief of Staff Office of the COO

• Andranik Ziyalyan, Executive Director, Finance Transformation, Sony Pictures Entertainment

• Chandra Vadamodula, Vice President, Enterprise Technology Solutions, Rite Aid

• David Stein, SVP, Performance Marketing Operations, VML

• Hiren Dalal, SVP, Transformation, LPL Financial

• Jeremy Lane, Corporate VP, Change Management & Strategic Transformation, TTI, Inc.

• Kristina Muller, SVP, Delivery Operations & PMO, VML

• Laureen Knudsen, Chief Transformation Officer, Broadcom

• Marjorie Etter, Global Training, Knowledge & Change Management Leader, Meta

• Nadine Hammer, Director Organizational Design & Change, Genentech

• Nicholas Mudd, Global Service Transformation Director, Cummins

• Paul Papoutsis, Senior Regional Director, Radial

• Rahul Trivedi, VP, Business Transformation, Transunion

• Stacey Taylor, VP, Implementation & Change, Visa

• Sundeep Thusoo, Director Business Transformation, Philips

Experimenting with Dialogic Change: Shifting Command to Collaboration

Case Study 1: GenAI Implementation

• Teams empowered to explore technology’s potential independently.

• Local groups engaged via coffee chats, social media, monthly town halls before resource allocation.

• Encouraged decentralized decision-making driving engagement and faster adoption.

• Top-down role retained for defining WIIFM and ensuring delivery.

"Crowdsourcing change helps since employees are more eager to explore and refine change when they are more involved in decision-making and feel a sense of ownership."

Stacey Taylor, VP, Implementation & Change, Visa

"Resource constraints may push organizations toward open-source change as a necessity rather than strategic choice."

Nadine Hammer, Director Organizational Design & Change, Genentech

Case Study 2: ERG-Led Transformations

• Volunteer Employee Resource Groups (ERGs) identified opportunities to improve hiring practices for veterans.

• Bottom-up initiative redefined job requirements and tapped overlooked talent pools.

"There’s an ironic parallel between open-source change and insurgency; the right knowledge and people in the right place and time matter."

Nicholas Mudd, Global Service Transformation Director, Cummins

Case Study 3: Network of Change Champions

• Network of departmental change champions acted as liaisons between leadership and employees.

• Facilitated inclusive transformation that scaled organically.

"The ‘what’ and ‘why’ are non-negotiable and dictated by senior leaders, but the ‘how’ and ‘when’ can be co-created with change champions."

Hiren Dalal, SVP, Transformation, LPL Financial

Navigating Open-Source Change: Tactics, Learnings, and Challenges

1. Identify Ownership & Responsibilities

Leadership Role & Commitments

• Balance leadership’s directive role with employee autonomy.

• Leaders must align time and interests to support bottom-up efforts.

"If change from the bottom up is going to work, alignment with leadership’s time and interests is required."

Nicholas Mudd, Cummins

"Organizational change isn’t always a democracy. Good leadership involves honesty and communication but not necessarily universal decision rights."

David Stein, VML

Clear Ownership & Accountability

• Prevent accountability gaps by assigning specific roles.

• Accountability is essential to maintain momentum.

"Everyone’s job becomes no one’s job. Accountability must lie with specific individuals or groups."

Rahul Trivedi, Transunion

"When people feel proud and accountable, they engage more."

Kristina Muller, VML

Select the Right Change-Makers

• Identify participants with the right mindset, passion, and skills.

• Avoid assigning change roles based on availability alone.

"The right talent can have significant impact even without seniority."

Nicholas Mudd, Cummins

2. Identify Potential Roadblocks

Managing Bandwidth and Resources

• Resource constraints limit the scope of involvement.

• Need strategic prioritization and oversight.

"A larger group means more resources but needs critical central perspective."

Paul Papoutsis, Radial

Dealing with Disengagement & Resistance

• Transparency and early engagement reduce resistance.

• Foster collaboration between newer and tenured employees.

"Employees need to see progress and impact to stay committed."

Stacey Taylor, Visa

3. Leverage Available Tools & Tactics

• Employee Resource Groups (ERGs): Drive innovation via employee passion and knowledge.

• Hypothesis-Driven Approach: Set objectives, experiment, learn, and adapt.

"Set objectives, then try and share what works and doesn’t."

Laureen Knudsen, Broadcom

"Organizations are complex adaptive systems; hypothesis-driven approaches help."

Sundeep Thusoo, Philips

• Top-Down + Bottom-Up: Combine leadership direction with employee-led execution.

"A balanced approach works best for complex organizations."

Marjorie Etter, Meta

Unlocking Success: Which Dialogic Change Approaches Drive Successful Transformation?

Transformation Goals & Scope of Change

• Open-source works best for additive, low-risk changes.

• High-risk or large-scale changes may require more control.

"Open-source is good for introducing new tools but not for retrenchment or outsourcing."

Andranik Ziyalyan, Sony Pictures Entertainment

Organization Size & Structure

• Smaller, flatter organizations can adopt dialogic change more easily.

• Larger organizations need structured oversight alongside empowerment.

"Large organizations require risk management and alignment with corporate goals."

Laureen Knudsen, Broadcom

"Flexible cultures that blend structure with empowerment foster collaboration."

Marjorie Etter, Meta

Identifying Ideal Context & Cultural Environments

Assess Cultural Readiness

• Success depends on a culture of trust, collaboration, and empowerment.

"Open-source change only works in cultures that empower people."

Hiren Dalal, LPL Financial

"Building trust is critical for employee engagement."

Kristina Muller, VML

"Authentic employee stories build trust better than top-down updates."

— Nadine Hammer, Genentech

"Highly collaborative, innovative cultures are best suited for dialogic change."

— Stacey Taylor, Visa

Start Small, Scale Gradually

• Begin with smaller changes, expand iteratively.

"Moving from command-and-control to open-source is an exponential challenge."

Hiren Dalal, LPL Financial

"Open-source change takes longer in large organizations."

Sundeep Thusoo, Philips

Key Challenges in Implementing Dialogic Change

Lack of Accountability & Flexibility

• Need to adapt to context with clear ownership despite decentralization.

"It’s hard for employees to take full accountability due to workloads."

Nadine Hammer, Genentech

"Clear leadership roles remain essential even in dialogic change."

Rahul Trivedi, Transunion

"Top-down sets boundaries; open-source delivers intelligence and diverse feedback."

Kristina Muller, VML

Fragmentation & Chaos

• Align dialogic efforts with strategic goals to avoid fragmentation.

"Proper listening helps evolve the program to meet employee needs."

Stacey Taylor, Visa

"Without guardrails, dialogic change risks elitism and divisiveness."

Sundeep Thusoo, Philips

Demonization of Change

• Overcome fear and suspicion by building trust and psychological safety.

"People often equate change with layoffs; trust reduces fear."

Marjorie Etter, Meta

Poor Change Mindset

• Mindset embracing learning and adaptation is crucial.

"Poor change mindsets resist even small shifts."

Andranik Ziyalyan, Sony Pictures Entertainment

Conclusion

Dialogic change fosters collaboration, transparency, and employee ownership. While powerful, it often requires blending with other change models for complex transformations. Organizations tailoring their approach to culture, structure, and goals will find dialogic change helps deliver sustainable and impactful transformation.

About The Executive Council for Leading Change (ECLC)

The ECLC connects executives to redefine organizational change and transformation leadership. It fosters collaboration and practical solutions for leading large-scale change initiatives in a dynamic business world.