CHANGE Reza Razavi, a long-time in-house consultant at BMW, summarizes his experiences in organizational development as follows: "Change optimizes, transformation creates something new!" Out of inner conviction, he pleads for real transformations and explains them using the example of a caterpillar and a butterfly.
When Reza Razavi talks about the topic of "transformation," his personal story always plays a role. Born as the son of a doctor in Iran, he came to Germany at the age of 14 with his older sister (but without parents). After attending a one-year language school, he was able to participate in German school lessons and graduated from high school at the age of 19. During his studies in mathematics and philosophy, he opened a restaurant in Hanover, which soon became a popular spot. Besides, he also studied business administration and data and information management.
His proactive, creative, and innovative way of thinking made an impression
After eleven successful years as an entrepreneur, Razavi switched to become a consultant at the Management Center St. Gallen and later joined BMW Group in Munich as an in-house consultant. He vigorously advocated for cultural change within the corporation and promoted a proactive, creative, and innovative mindset among the employees. His efforts were impressive, and with the words, "Your life is transformation. Who could take on the task better than you?" his department head promoted him in 2016 to "Senior Expert Culture and Transformation Management."
Subsequently, Razavi became a co-founder and driving force behind the "Connected Culture Club" (CCC), a cross-departmental bottom-up movement for the cultural transformation of BMW. Today, he is an independent consultant and conference speaker on the topic of "transformation of the economy and society." He aims to make profound change palpable and often describes the development from a caterpillar to a butterfly.
From egg to caterpillar to pupa and finally to butterfly
Once the caterpillar spins itself into a cocoon, the metamorphosis begins. Stimulated by special enzymes, the previous cell structure of the caterpillar dissolves. The caterpillar digests itself and begins to partially break down its cells. Its tissue is shredded and transformed into a kind of protein soup, from which new cells ("imago cells") form. These cells are "imaginative" in the sense that they are not yet butterfly cells, but merely carry the "vision of the future butterfly" within them. The caterpillar's immune system manages to eliminate this first generation of imago cells. But they do not give up and persist. In this process, there comes a point where every fought cell is replaced by thousands of new cells.
The new cells are capable of learning, and they communicate with each other. They connect and over time form clusters that engage in intensive information exchange. After some time, the caterpillar's immune system is overwhelmed and can no longer destroy the different cells quickly enough. During its metamorphosis, the caterpillar is systematically disassembled and reassembled until the final transformation. A nearly complete physical transformation takes place: there is no body part that the butterfly has inherited from its caterpillar phase. The issue with the caterpillar is that it is sexless and cannot reproduce from itself. "The metamorphosis is its salvation and at the same time its downfall."
Beauty is not the purpose of metamorphosis, but survival
As fascinating as the transformation process of the butterfly is, the actual purpose and meaning of metamorphosis are also essential. The caterpillar does not perish so that a beautiful butterfly emerges. Razavi: "Without the transformation, there can be no future life. It is about understanding that further development ensures survival. And this applies to the transformation of organizations as well." According to Razavi, the process of metamorphosis provides valuable insights into what and how one must act to shape transformation within a company. Many companies are beginning to realize that something must change in today's world. However, upon closer inspection, their change turns out to be rather clumsy and superficial.
They focus on the mechanics of change in terms of cause and effect or they try to transform their organization by radically imposing methods from the latest change management trends. What they often overlook is the deeper significance of transformation. To stay within the metaphor of metamorphosis: it is not a good idea to simply attach colorful butterfly wings to the caterpillar, as these wing imitations are neither a newly developed body part of the organism nor functional. The caterpillar cannot make use of such simulated attachments; they may even hinder it. And a butterfly will never emerge from the caterpillar in this way.
How transformation can work in organizations
According to Razavi, many change projects in companies, set up to address new challenges, function in a similar way: the change does not come from within but is rather cosmetic in nature. For newly implemented structures to work, the actors – as per the top-down directive – must change their behavior. In contrast, transformation is not a directive, but the result of a process, namely sustained, company-wide motivation and commitment to a common goal.
People
The book argues that we can learn a lot from the metamorphosis of the butterfly and that it is useful to apply what we have learned to companies, society, and organizations. Here, too, a transformation begins with the emergence of imaginative individuals who are perceived as spinners or outsiders because they challenge the existing order. They are usually connected by a common concern, even if it is vague at the beginning. The immune system of the old society tries to get rid of these visionaries. Over time, clusters of like-minded individuals form, exchanging ideas and forming communities. Soon, the new visions can flourish and eventually make themselves felt throughout the organization.
Razavi emphasizes: "The key to successful mobilization in a company lies in creating a grassroots movement, supported by middle management and prominent advocates. The base must learn that it is worthwhile to go beyond daily selfishness to become part of a larger dynamic." The new eventually reaches the hearts and becomes contagious and inspiring. Transformation is thus an act of consciousness development. A change in mentality and identity is needed to create a world that is clearly distinct from the existing world. Emerging mental energy drives the transformation process, loosens the psychological ground of the company, and enriches it with nutrients. A cultural environment is created in which the new vision can flourish.
A transformation is by no means a meticulously planned project, but rather a journey guided by increasing certainty, with a initially vague goal.
Fundamental distinction from "Change"
With this understanding of transformation, the difference to the term "Change" becomes clear, which describes a change within an existing paradigm. Change occurs when there is no paradigm shift. The fundamental worldviews, logics, and inner images of a system remain unchanged. It is the same game being played, just with new rules to further develop what exists and align the actions of the involved actors. A change management process implies that some things change while much remains the same.
Change is always treated like a project with a defined start and endpoint, making it time-bound. The goal is known and may be fine-tuned during implementation. "Change" means a change with a clear goal that all participants always have in mind.
Organizations and societies are typically sluggish systems. Change does not happen at the push of a button. The new does not directly replace the old. There is no clear-cut model with defined boundaries. A caterpillar does not turn into a butterfly in the next step. Instead, the phase of the pupal stage begins; so-called transitional phases are experienced. A transitional phase starts, where much changes and is in motion – a phase full of contradictions and parallel processes. On one hand, old structures undergo a gradual dissolution process, while on the other, something new and different slowly evolves.
Transformation is more profound than Change
Transformations not only permeate all areas of an organization but also challenge fundamental beliefs and overarching goals. Organizations pose new questions and aim for long-term goals. Ultimately, a completely different way of thinking and working is intended to replace the traditional, familiar world. Razavi describes transformation as the emergence of new logics that challenge and replace the outdated.
Speakers
