Roland Sullivan

WHOLE SYSTEM TRANSFORMATION ™
“Whole System Transformation fosters deep change. It requires personal change. It requires courage to take an organization
through this type of change. The capability for change in the organization and its impact are tremendous. The employee
engagement that results is an unbelievable thing to see. It’s worth it! It’s hard work! It's emotional! It's draining! And, yes, very
rewarding.
We spent 5 million US dollars on the effort but returned almost 20 times our investment. But more importantly, a customized
version of WST has transferred to other parts of the organization!!”
- Edited from a client who is one of the 70 most profitable US companies.
Systematic organization change is a great response to a changing world of globalization. Organizations,
especially in India, will need to continually address the need for positively changing systems, structures,
cultures and processes. Doing so will help them take advantage of the tremendous market opportunities.
Companies are looking far and wide to find new ways to innovate and change. And in this surprising and
chaotic process, they need help. This article describes the revolutionary practice of Whole System
Transformation (WST), its philosophy and methodology, its roots in the profession of Organization
Development (OD), and how it‘s applied behavioral art and science has resulted in organization-wide
paradigm shifts. It also shows how WST dramatically and dynamically increases transformative business
results.
What is Whole System Transformation?
WST is a specific best practice and theory that evolved from the profession of Organization Development.
OD uses applied behavioral science to facilitate a transformative leap to a desired vision where an
organization‘s strategies, environment, and systems align in the light of local culture. High-tech tools in virtual
communication support the consultation. It is in this light that WST takes flight.
Wholeness literally means, ―healing‖, ―healthy‖, ―unhurt‖. ―Whole‖ is more than ―all of something,‖ it is a
healthy balance, unity, and completeness. When the term ―wholeness‖ is applied to a system, we refer to the
interdependent parts as forming a unified whole, interacting according to the influence of related forces.
WST therefore is a methodology engaging all facets of an organization to accomplish faster, cheaper, and
sustainable positive change. Transforming a system into a unified whole is the process of shifting from one
configuration or expression into another. All parts of the system are modified. In order for true
transformation to take place, the organization must function as a ―whole.‖ If it hasn‘t achieved wholeness
first, it will separate into disconnected pieces and will be unable to realize its true nature in separation. Thus,
what is meant by the term ―whole system transformation‖ is more than simply a change that affects the entire
system but rather the entire system is involved in creating itself a new. This exciting focus then moves away
from imposing change management on an organization.
This type of transformation requires organizational and individual self-awareness. When the individuals in a
system are self-aware, they are able to understand what and who they are and what they need to be. There is
an appreciation of all of its diverse parts and how they relate to each other and to the outside environment or
customer needs. The result is a healthy system that knows what to do next and has the agility of acting quickly
and wisely using organization-wide intelligence.
Bob Waterman, author of In Search of Excellence and The Renewal Factor, illustrates the workings of Whole
System Transformation in a Japanese banking organization during a consultation by his company:
―I was part of a team working with the Sanwa Bank in Japan, now one of the largest banks in the
world. It‘s unusual for anyone from the outside, let alone a foreign consulting firm, to be working
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with a Japanese company. Fortunately, the problem—a substantial market share loss—was fairly easy
to solve intellectually.
But a couple of strange things were going on at Sanwa. At the beginning of the project we had
asked for a full-time Sanwa team to complement our own team. Joint consultant and client task
forces are more effective than solo consultant teams. After a long negotiation in which we thought
Sanwa management had agreed with us, we figured that two or three of their people would join
forces with us the next day. Twenty showed up.
‗What‘s this?‘ we wanted to know. ‗Your study team,‘ they explained. We protested that what we
had meant by a team were smaller—certainly not twenty people. They said we had done such a good
job of explaining the need for a client team that they thought they would do it right. But they were
paying the bills, so we lurched forward with our unwieldy gang of twenty.
After two months we presented our results. The team of twenty reacted with horror. They
explained that before we talked to the jomus we should discuss our findings with a fairly large group
of people around the bank. They started a list that grew to several hundred people. We told them
that would take a few months, and reminded them of the project‘s cost. Several months later we
finally made the presentation to the jomu-kai (the board leadership). It lasted only an hour and was
mainly ceremonial. By then all of the jomus were well acquainted with what we were going to say.
Then something amazing happened. About two days after the presentation their market share
started to rise! We had never seen results that fast. (In fact, as anyone who has consulted will tell you,
getting results at all is sometimes a surprise.)
Involving twenty people on the team had nothing to do with innovative solution generation
‗efficiency.‘ Our talking to hundreds more after we had the ‗answer‘ to the market share problem had
nothing to do with crisp decision-making. Both processes had everything to do with getting
something done.
By the time we made the final presentation to the jomus, a significant part of the entire Sanwa
organization had already been involved in the project. They knew what the study team envisioned.
But most important, they had the chance to be engaged. Individual insight added up to collective
wisdom. They could, and did, vigorously express. They could, and did, contribute to the team‘s
thinking. There was deep wisdom in Sanwa‘s insistence that we conduct the project in a way that at
the time appeared to me to be inefficient, burdensome, and more than a little foolish.
When Andy Pearson was still president of PepsiCo, he said, ‗We have 120,000 employees stashed
in various places around the world, and I frankly have no idea what the hell they‘re doing.‘
Throughout the Sanwa project, with hundreds of people involved, we had no idea what they were all
doing. In any sense of the word control, the project seemed out of control. But in a broader sense
the project was under control. The market share went up. Give up control, in the narrow sense, to
get control, in a broader sense.” (1987, p. 88–90)
This story demonstrates the power and excitement of involving the organization as a ―whole‖ rather
than working with a small segment, as Waterman‘s consulting group had expected to do. Whole system
transformation occurs when there is a much broader involvement and ownership of issues and
responsibilities across an organization. The story represents the kind of whole system transformation
envisioned. And quite possibly, the principles of Whole System Transformation were operative in the
organization‘s transformation and successful resolution of its market share loss problem.
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Sustainable Whole System Transformation
How does Whole System Transformation work?
Figure 1: The Whole System Transformation Process
The process starts and proceeds with the following steps:
Step 1: Leadership Transformation
A traditional action research team development process is used. The outcome is an engaged
executive leadership team aligned both intellectually and emotionally with a renewed vision, strategy, and the
implementation plan. The team is moved forward with the vision of one future as they coalesce into a single
heart and mind. Only after the leadership is aligned can work begin in the larger organization.
Step 2: Transform Critical Mass
This is accomplished through the design and execution of a large-group interactive event where
employees participate to drive a significant shift for the organization. The key is , extensive design team
sessions representing the collectiveness of the enterprise.
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Step 3: Sustained Development
Edgar Schein says it is ineffective to change culture head on. What happens after a WST effort is that
a new, more participative, honest, trusting, and effective culture emerges. The simple process requires initial
sophisticated competence that is then transferred to an internal change agent. He/she becomes the
orchestra-like leader of an organization who begins to master the self- facilitation of perpetual change. Thus,
the new agile culture drives the sustainability of change. The phases leading to this point are repeated so the
members of the system become committed. Continued success keeps building momentum as resistance to
change melts.
Step 4: Change Foci
The change foci are the most important conversations that must now occur in the organization. The
journey maybe focused on a new strategy, customer service, profitability, a merger or acquisition, or aligning
the organization to take advantage of emerging opportunities.
Step 5: Communication
Throughout the transformation journey there needs to be a system wide communication process that
keeps the multi-directional information flow alive. Success stories and decisions are shared. New data
surfaces. Results are published.
Step 6: Thrill the Customer
It is not enough to meet or even exceed customer expectations. To obtain new and retain existing
customers, organizations must continuously discover new, innovative ways to thrill people purchasing products
or services. Increased customer joy becomes an expectation.
Step 7: Measured Results
Kathy Dannemiller, the founder of large (300 to 2,000 participants) group interactive events, often
said that if it is necessary to measure outcomes after a large-group interactive event, then the event has failed.
One does not need to measure if dramatic results are evident to all, even to the dissenters and the CEO.
However, cost-effective measurement methodologies are needed to compare intended with actual results.
Measurement data provides clues about what to work on next.
Step 8: Action Research
Throughout the journey, a simplified action research process of repeating scan, plan, act, and re-act is
applied. Scanning is the assessment of what is going on. Planning without assessment is not effective. Planning
requires convening the right people to review the data and collaboratively develop action plans and
commitments. Acting is the implementation of planned change. Re-acting means repeating the entire journey
measuring what has happened.
Measurement provides clues as to what the change focus should be as the process begins to self-sustain. Reevaluation is necessary during the process of plan implementation, and re-actions are required to respond to
new realities and unanticipated obstacles.
Several action elements are critical in the entire methodology of WST. Data should be gathered about the
system‘s culture and functionality of its operations and processes. These data should be shared with the
senior leader. It is best to keep the core executive deeply engaged in the work. Never before in the history of
the world has strong leadership been more required. WST gives leadership a systematic process to excel like
never before. The leadership, as they continue to change, individually and as a team, also become more
authentically influential. The WST process leads to an alignment of the senior leadership group so they
collectively and powerfully hold a vision of their desired future, a vision that they become obsessed with and
dedicated toward. Often leaders may support or resist the change. In any successful change process, the
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feelings and thoughts of leadership are vital to the intervention itself. Once aligned, the next step is involving
the critical mass in a minimum of 2.5 day in max-mix gatherings to deeply engage the organization. This
empowerment of people – through a WST Conference — produces profound personal ownership of the
transformation, producing plans and ideas to convert them into action. It is critical then to connect and apply
these ideas in day-to-day work while soliciting feedback continuously from the system relative to these
actions.
The Formula for Transformation: Collectively Creating a Paradigm Shift
WST leads not just to change, but to transformation. Characteristics of organization transformation by definition
suggest radical changes in how organizational members perceive, think, behave, and manage themselves
(Cumming & Worley, 2000.) WST creates a deep paradigm shift – a breakthrough. This breakthrough means
a personal transformation for individuals and a collective shift in mindset across the division or organization.
One way of breaking through is utilization of the classic Beckhard transformation DVF Formula—a theory
on creating a collective paradigm shift (Dannemiller, 2000). Beckhard‘s original work was:
Dissatisfactions (D) x Vision (V) x First Actions (FA) > Resistance to Change.
We have revised the formula to become:
Discovering what is best or dissatisfactions (D) x Aspirations (A) x First Actions (FA) x Belief (B) x Engage
(E) = Transformational Breakthrough (TB)
This formula describes the conditions necessary for a collective paradigm shift:
“D” means allowing participants to voice dissatisfactions with the current state. Contrary to
traditional OD approaches, this equation pulls from Gestalt theory of resistance, based on the paradoxical
theory of change created in 1970 by Beisser, then adapted by Fritz Perle‘s Gestalt approach to change. It is
based on the belief that change rests on the full acceptance of status quo and assumes that resistance i s
expected, healthy, and must be supported in the process. ―D‖ in the Appreciative Inquiry world stands for
―discovering what is best‖.
“A” stands for engaging with aspired future. The word vision was changed to aspiration to fit the
organization‘s desire to ―thrill the customer‖ and be dramatically different.
―FA‖ stands for first steps and long-term actions. Actions are focused on getting the commitment
and momentum to make the difference.
“B” stands for belief. It represents the transformative belief to collectively being dramatically
different.
“E” stands for including and engaging others, which reinforces the inclusive culture created.
This formula suggests that a collective paradigm shift occurs greater than any change resistance applied.
Research suggests it is impossible for an organization to return to its old ways of being once it has achieved
breakthrough (Dannemiller, 2000). Once the shift happens, organization members see themselves and the
company differently for the first time, with new mindsets both individually and collectively. This
breakthrough gives the organization the ability to shift behaviors to align with the vision instead of repeating
patterns of the past.
Principles and Elements Underlying the Work
Profound principles are used in WST. These guiding principles aid consultants and even the organization
members in conducting the intervention. WST work is about moving people from passivity to activity – the
activity of mind, of action, of faith, of trust, of engagement of people with each other and their work.
Representative participants must be engaged in the planning and logistics process to move them from
passivity to activity, to not just accepting the change but embracing it fully.
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It is important to create a relationship based or contact-full environment. Contact-fullness is built into the
heart of WST. Regardless whether they are leaders, members, or management teams, they should be able to
articulate what they believe. Consultants therefore should facilitate points of contact among different views.
These transparent interactions must be based on a perspective of multiple realities, where the environment
makes people realize that they bring their own truth; that when dealing with each person‘s own truth, there is
no right or wrong way.
Listening is essential in this activity. A neutral, non-judgmental kind of listening is important. Members of the
organization must take in and reflect on what others have said, making them aware how each of them hears
the message differently. This reinforces the awareness of multiple realities. It also enables people to begin to
become aware of how their own filters, perspectives, or defensiveness impacts the message. In raising their
awareness, people attain some degree of neutrality regarding other peoples‘ truths, allowing them to see the
world through each others‘ eyes.
When in a large group, total system dialogue is created. Conversations are created among small groups,
among teams and sub-groups, and between consultants and the client. Reflecting over their own answers
allow participants to attune to themselves. This empowers individuals to bring their voice out into the room.
The environment should allow anyone to ask questions. This fosters willingness and a feeling of safety to
speak out, where mini-‗moments of truth‘ are created. In fact, leaders must be pushed to answer tough
questions.
Everything in the WST, in the change work of the organization, as well as its future operation derives from
the vision and values. This is the core of the process. The leader sets out his/her vision for the organization,
the members take that in and enhance it with their own. The organization and consultant should always tune
into this and keep going back to it as the core of all current and future work. Having a common picture of
where the organization wants to be and uniting around a strategic direction becomes an important guide.
Data, which participants will use to help them in the process, must be brought into the room from a variety
of sources and modes, e.g., customers, views of competitors, benchmarking ideas from other redesign sites
through the consultants and research team. Hearing from competitors and best practices from site visits
enable participants to assess what their own organization needs and could apply in moving to a desired future
state. The implicit question continually asked is: ―From all this information, what is the most important thing
that stands out for us that the organization could learn from?‖ This helps to understand the organizational
field. This field continues to be enhanced through discussions in different groups. Out of each of these
groups emerge key questions, which have the virtue of having the support or awareness of that group behind
them, enabling creative thinking. The answers, as well as the questions then move into the organization field
from which new key questions, ideas, awareness‘ arise on a large organizational level. Creating this larger and
collective field is facilitated through the ―Open Forum‖ which expressly looks at what people heard, what
reactions and what questions of understanding they have.
Sometimes a management leader can be brought in by sharing a very personal vision, and personal anecdotes
of how she got from where she was at the start of the work, and how she moved to new places during the
work. At times, a union leader may set out her high level of commitment and on what the union is willing to
do in the context of personal stories about herself. Members of the organization may tell their stories
indicating success. Added to this, members take an affirmative action to bring themselves more fully into the
process – their volition married with their actions.
As for the consultants, they should constantly demonstrate and model that they are willing to be themselves
and help the community gain some insight about this new way of being. They must be open to live their
commitment to the client: engaging the heart, intuition, intellect, spirit, values, personal vision, and
enthusiasm. All must be fostered in close working relationship based on trust. At the same time the
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consultant must recognize that the client should take responsibility for their individual change and for leading
the organizational change.
The work should end with specific, realistic and supported action plans with commitments made to take
action on them. This enables moving from the desired future and supporting values – to intentionality and
volition – and then to concrete behaviors. This is crucial in order to dispel the memories of past failures, to
build credibility, and to enable this work to have full operational value.
There is an undeniable power in having the whole organization in the room. It enables the organization to
change in real time, both incrementally and in major paradigm shifts.
This work is about tradition – a knowing, deep, and abiding commitment to the roots of Organization
Development as a democratic practice, which supports the empowerment of people in achieving their full
potential as individuals and groups to live in a humane way.
This is also about freeing up the flow of valid information, supporting that flow, and helping people develop
and fully use the skills enabling them to fully make use of the information. It also is about sharing the wealth
with the faith that those who receive will do the same thus creating an ongoing, positive force for change.
Conclusion
Whole System Transformation is an evolving vibrant methodology, which focuses on here and now. In
contrast to traditional methods of Organizational Development, WST addresses what is needed by
organizations by not merely changing parts of organization but transforming the ―whole‖ system. Involving
all leaders and all members of the organization is paramount.
The process is rooted in yearnings of each individual, in the data from which they will work from, and in the
collective awareness and acceptance of all members of the organization. Leaders have a very essential role in
WST. From leadership starts the desired state where the organization should be. The members then sharpen
and align with seeded direction and take on as their own. From the onset of the WST process, leaders guide
the way on how the organization will improve and how the changes will be implemented and sustained. Thus,
the leadership imperative for WST is vital for its success.
REFERENCES
Beisser, A.R. (1970). ―The Paradoxical Theory of Change.‖ In Gestalt Therapy Now, edited by Fagen, J. &
Lee, I. (Eds.) Gestalt Therapy Now (pp. 77-80). Shepard. Palo Alto, CA: Science and Behavior Books.
Camson, Barry. A personal letter to Kathie Dannemiller. Cambridge, MA. 1995.
Cummings, T.G., & Worley, C.G. (2005). Organization Development and Change (8th Ed). Cincinnati, OH: SouthWestern.
Dannemiller, K. & Cady, S. (2005). Whole System Transformation™: Five Truths of Change. In W.
Rothwell, J. Stavos, A. Sullivan & R. Sullivan, (Eds.) Practicing Organization Development (pp. 440-455). New
York: Wiley.
Dannemiller, K. & Levi, R. (2003). Collective Resonance in Whole Systems Transformation™. The Resonance
Project. Retrieved December 15, 2011 fromhttp://resonanceproject.
Parker, J., Todd, J., https://www.onlinefilefolder.com/2fyW5gU5tgllTW and Sullivan, A. (2010). Whole
System Transformaton™: Becoming Dramatically Different. In Rothwell, W., Stavos, J., Sullivan, A., &
Sullivan, R. (Eds.) Practicing Organization Development, 3rd Edition. New York: Wiley.
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Formatted: Superscript
Peters, T.J., & Waterman, R.H. (1982). In Search of Excellence: Lessons from America‘s Best-run
Companies. New York: Warner Books.
Schein, E. (1988). Process Consultation: Its Role in Organization Development, Volume 1 (2nd Edition). AddisonWesley OD Series.
Scherer, J., Lavery, G., Sullivan, R., Whitson, G., & Vales, E. (2010 ). Whole System TransformationTM: The
Consultant‘s Role in Creating Sustainable Results In Rothwell, W., Stavos, J., Sullivan, A., & Sullivan, R.
(Eds.) Practicing Organization Development, 3rd Edition. New York: Wiley.
Sullivan, R., Gopalkrishna, S., & Rothwell, W. (2011). “Organization Development (OD): Now and Beyond:
” In Ramnarayan, S., & Rao, T.V. Organization Development: Accelerating Learning and Transformation. New Delhi:
Sage Response Books.:
Free published downloadable resources on WST
https://www.onlinefilefolder.com/2fyW5gU5tgllTW
Roland L. Sullivan has been an OD consultant with over 1,000
organizations in 30 plus countries. He is a friend of late Dr. Udai
Pareek since 1962. Dr. Pareek brought OD and ―feedback‖ to Asia
from NTL in the USA. Currently, Roland is working with his daughter
on the 4th Edition of Practicing OD.
Mary Jane B. Balasi is finishing her Masters Degree in Applied Social
Psychology from Ateneo de Manila University. Her experience and
involvement in changing or transforming systems in the different
sectors like youth, women, faith-based organizations, schools,
government organizations (GOs), non-government organizations
(NGOs) and global businesses for more than 10 years facilitatesmakes
her beliefieve in the power of WST.
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