Transformation at PGB Pension Services: toward customer-centric and agile, part 2
Dialogue for Change and Short Cyclical Steering
Ronald Heijn, Harold Clijsen and Monique Schut in conversation with Adriaan Vermeulen about the transformation of PGB Pension Services getting ready for the new pension world.
In four parts, I would like to take you through the extraordinary change journey of the past 3 years, which PGB Pension Services has gone through together with Noviter to become more customer-centric and agile. Today part 2:
Time for open dialogue on change
With Harold and Ronald's words, the tone was set. "But it also immediately raised all kinds of questions from people," admits Monique Schut, former People manager and member of the management team. "And let's face it, not everyone was immediately enthusiastic. Customer-oriented! Why, isn't that what we are? And, agile, what do you mean by that?". Management knew that this ambition would not be achieved by itself. Monique: "Change was needed, and in very different areas. Starting with our own behavior as management, and our management and result orientation. But our culture of loyalty to each other and social connectedness also had a downside. As a result, we avoided the "exciting" conversations in which issues were resolved at a deeper level. In addition, our process focus was primarily on eliminating waste increasing efficiency and control. It left little time for people to think about whether our participants and employers were truly satisfied with the outcome." This is about we, but shouldn't this be a different perspective?
Adaptivity as an infinite quality
"Not to mention the changes needed in our products and services to remain competitive in the future," Harold adds. "Or how we will serve employers and social partners and the composition and collaboration of our client teams in doing so." In terms of data and IT, the challenges were no less. "Meanwhile, we had started building a new IT platform, new portals, and started experiments in different places to work more data-driven. Moreover, we expected that this would also bring changes in the organizational structure ", Harold continued. "Our conclusion was, we need help with this, but we are going to do it ourselves." In addition to several experienced IT change managers, Adriaan Vermeulen of Noviter was appointed as program manager to shape this transformation together with the management.
An agile way of working
Adriaan: "One of the first things to do was to gain insight and overview of the multitude of changes and who was working on them. These were visualized and it soon became clear that it was impossible, but also undesirable, to manage this as a traditional program. The change needed was everywhere and was both incremental and fundamental. In the processes, products, IT, structure, controls, people and culture."
During a management meeting in early 2021, Adriaan recalls that these strategic images were being discussed and someone shouted "we need to priotirize!" CFRO Leon van Schaik replied, "We have done that. This is all urgent and important and we need to get on with it. Which does not mean we have to finish everything at once, nor does it mean there is no room for learning and discovery. It is up to each team to weigh up each quarter what contribution to the strategic goals fits best."
Leon was referring to a new way of working that the organization's development coaches had introduced with Noviter: Short Cycle Steering (KCS). This is a steering methodology that helps teams focus on their weekly (run and change) activities. Adriaan: "Each team determines at the beginning of the quarter very concrete goals, (goal states in jargon), and discusses progress weekly in a meeting of up to half an hour according to a fixed, tight agenda." The KCS methodology rests on a number of (Lean and Agile) principles such as visual management where goals and progress are visible to everyone on (digital) boards. But also the "performance dialogue" that arises in the team follows a number of ground rules in which openness, getting to the heart of the matter, naming obstacles and celebrating successes are important ingredients.
As an organizational development coach, Noreen Tulner was closely involved in the implementation of KCS: "When in Corona times we all worked from home and managers no longer had a physical view of their people, this methodology also proved to work extremely well. The reason was that KCS requires managers to make outcome agreements and possibly facilitate in resolving obstacles. For the rest, it's making sure you 'don't get in the way of the professional' so they can do their thing." Noreen continues: "Corona has also accelerated the digitization of all our 'KCS boards'. By now every team within PGB PD has its own digital KCS board on which they manage their goal achievement. And these boards are also transparent to other teams. This transparency took some getting used to, but now it is the most normal thing in the world to look at each other's boards and agree on the goals for the coming quarter."
The solution
Adriaan: "With so much change going on at once, a traditional, centrally driven, top-down project approach was out of the question. It would give the illusion of control and above all slow down the employees in the teams. With KCS as the basis for the new way of working, we chose a change approach in which we immediately put into practice what the result had to be: becoming agile. Instead of seeing change as something separate and what you plan as a (serial) process, we saw change as an integral part of the work and each team set to work (in parallel) with short cyclical steering on what they saw as the most important and urgent for a particular quarter. That's bound to lead to chaos, you might think. Well, a little maybe, but most of all it gives teams ownership and the means to very decisively focus their energy on the (for their customers, their environment and their own) most important goals."
3 main conditions were completed. First, the board and management set an example by adopting this way of working. 2nd, each quarter is preceded by an organization-wide leadership goal setting session, in which the previous quarter is reviewed, 4 to 5 quarters are looked ahead, and organizational goals for next quarter are prioritized and aligned. 3rd, the skill of "naming opportunities and obstacles early, vulnerably and openly and then resolving them with stakeholders," receives constant attention and is applied at all levels.