Since 2000, T-Systems International GmbH has become one of Europe’s leading digital service providers, offering expertise across a range of solutions, including IT and cloud services, cyber security, technology consulting, and industry-specific tech applications. In 2022, T-Systems employed over 27,000 individuals, operated in more than 20 countries and reached annual revenue of 4 billion euro. As a subsidiary of telecommunications giant Deutsche Telekom, T-Systems has prominent partnerships with other industry leaders, including Microsoft, Intel, Amazon, and Google Cloud.
Yet, in the years leading up to 2018, T-Systems faced substantial challenges threatening the organization’s profitability. T-Systems dramatically needed to change. The multi-national company had historically operated according to a strict hierarchy, following traditional organizational practices emphasizing chain-of-command decision-making and multiple levels of management. This dated approach to managing employees through stern command-and-control tactics gave rise to widespread skepticism regarding organizational change initiatives. Incoming CEO Adel Al-Saleh was tasked with restoring the company to profitability by overseeing a radical business transformation, including layoffs, reducing costs, changing operating models, repositioning product offerings, and more. However, Al-Saleh knew that success would require more than behavioral changes. In his words, “It became very evident that without changing the company culture and performance, it would be difficult to see noticeable results.” T-Systems recruited the Arbinger Institute because of its demonstrated track record of successfully promoting corporate culture transformation via an outward mindset.
CEO Adel Al-Saleh read Leadership and Self-Deception long before he took the helm at T-Systems. He described the book as having a “phenomenal impact” on his understanding of leadership and how self-justification inhibits success on both professional and personal levels. To help with T-System’s massive change initiatives, Al-Saleh recruited an Arbinger business transformation consultant to provide training for over 200 top leaders from across the organization in hopes of seeing the type of business transformation that he had seen Arbinger facilitate in so many companies. He felt that T-systems could be a turnaround strategy example to others. Not only would improving culture retain employees, but it would also be a culture change to increase profitability. For such a far-reaching change initiative to truly take root meaningfully, it would require sincere commitment from influential team members to listen to and apply what Arbinger’s business transformation consultant would share with T-Systems. They would need to see the value of an outward mindset approach, apply it individually, and then share with others to drive change throughout the organization.
An Arbinger business transformation consultant provided a 2-day workshop training for T-Systems leaders, establishing a shared framework and language for developing an outward mindset. Leaders were helped to deepen their self-awareness and increase their capacity to see others more clearly fostering a business process transformation. Additionally, they were supported in deeply rethinking their roles and responsibilities and expanding their job description to include their impact on others. The workshop provided the foundation necessary for a more results-centered approach that better accounted for the crucial human element so easily forgotten amidst the many stressors of a major business transformation. T-Systems also invested in training ten strategically selected leaders as internal Arbinger facilitators, incorporating a greater capacity to spread Arbinger tools and frameworks throughout the organization.
The impact of the business process transformation facilitated by Arbinger methodologies was felt immediately. Al-Saleh describes how T-Systems leaders were eagerly receptive to the principles of an outward mindset: “There was an immediate momentum around the concept. People were eager to take it to their teams.” Company culture and performance improved dramatically. The operating dynamics of leadership teams shifted as people started communicating with greater openness. Arbinger principles enabled issues to be resolved more quickly and with greater collaboration. The company culture transformation was palpable. T-Systems became a turnaround strategy example for other companies in its market. As leaders applied the Arbinger principles to their teams and daily work practices, Al Saleh repeatedly recalled reports of employees being “amazed” at how interactions were changing, even under the strain and difficulties of layoffs and other large-scale profitability endeavors.
Within a year, Arbinger training had impacted some 5,000 employees within T-Systems, with plans to more than double that number. The company’s reorganization efforts were beginning to show positive effects. Adel remarked, “It’s the first time in 5+ years that the company is not declining.” Arbinger also worked with T-Systems’ subsidiary organizations in Spain, Romania, and Hungary. As Al-Saleh reflected on the impact of Leadership and Self Deception and the Arbinger training for his organization, he noted that successfully applying the principles of an outward mindset requires sustained effort and follow-through. Positively changing a culture is not an overnight endeavor. It takes real time and effort but ultimately can affect every aspect of the company, including culture change, to improve profitability. Saleh believes that transforming an organization’s mindset and cultural aspects accounts for 75% or more of successful change initiatives and is, therefore, worth substantial time and energy. By investing in an outward mindset, T-System’s business process transformation helped promote the culture of agility, collaboration, and willingness to change that is indispensable for an industry leader in the rapidly shifting IT landscape.
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