July/August 2007
Death, Taxes, and…Change
Change is a certainty at every company that strives to grow. It might come in the form of new technology, new competition, or changing demographics. No matter what form it takes, the question is: how does your organization handle change? Do employees resist new initiatives and cling to the old ways, or do they see change as an exciting challenge with opportunities for growth? Their views depend largely on leadership’s approach and the company’s culture. How can leaders foster a culture that embraces change? Read on!
Setting the Stage
Not all change is planned. Some change emerges on its own as the natural result of people offering ideas for improvement. This type of change exists in a culture where people are comfortable and eager to share their ideas. Your buddy Trust E. Duck identifies these conditions that set the stage for creating a culture that accepts change and even thrives on it:
- Business-literate employees. Employees who understand their goals, customers, competitors, and industry trends are better able to see where change is needed. People with a global view of the business can make better decisions and identify needed change.
- Open communication. For employees to be business literate, leaders must share key information, such as strategic goals and information on customers and competitors. Information can be shared through casual conversations, customer comments or visits, group discussions, coaching, or presentations.
- Permission to act. Change takes place more efficiently if people have autonomy and don’t have to wait for approval to take action. Leaders can empower employees by helping them establish goals, communicating boundaries, and then allowing people to make decisions and act.
- Innovative solutions. People who feel their ideas are listened to and respected are more comfortable offering out-of-the-box solutions. When employees offer ideas that may run against the usual way of thinking, their fresh solutions can trigger innovative ideas from others and create a sense of ownership in the creative process.
Five Big Questions
When change initiatives fail, employees may lose their trust and leaders may lose some confidence. What must happen for leaders to achieve the desired results? They need to answer these questions, according to an associate professor at Brigham Young University:
- Where am I taking the business? Consider what you want to accomplish. Focus on the desired outcome before you focus on the change. Leaders who are unclear about their goals risk being seduced by the idea of change instead of what they want to accomplish.
- Am I willing to create a shared strategy? Many leaders keep strategy to themselves. But strategy requires the commitment of everyone, especially of those who do the daily work.
- Am I willing to change? Change is often seen as something leaders do to an organization. In reality, leaders need to examine their own behavior first and identify where change is needed before they can expect change from others.
- Am I willing to hold others and myself accountable? Rosy reports about progress aren’t enough to know what’s really going on. Leaders need to discuss issues and listen to concerns. They need to ask questions like: What roles will each person play? How will we measure success? What are the consequences of poor performance and the rewards of excellent performance?
- Am I willing to ask for help? Many leaders don’t seek help because they believe they should be independent and confident. But asking others for help draws them into the cause and makes them feel a part of the effort. Help can come from colleagues, consultants, coaches, peers, books, and seminars.
A Smooth Transition
When change occurs, the hardest part to handle is the transition. As business consultant William Bridges said, “It’s not the changes that do you in. It’s the transitions.” How can leaders make the transitions easier? Here are some tips:
- Identify what is and what isn’t over. Some things never change, like serving customers and producing products. Employees need to know that what changes is how they do things, not what they do.
- Respect the past. Do not criticize widely used practices. Accept them for what they are—methods that were right for their time.
- Keep the important stuff. Get employees involved in determining what is important to your organization. Is it service, ethics, or something else? Whatever it is, make sure employees know it’s not changing.
- Set goals. Change makes people aware of new opportunities. As you evolve, set, measure, and evaluate goals to help move toward a positive future.
- Be realistic. Don’t assume that today’s change will last forever. Or that your organization will be finished with change initiatives after your current transition. Change is a constant, and today’s solutions won’t work forever.
Find Your Fixed Point
When everything around you is changing, things can feel overwhelming. The best way to manage change is to find a fixed point—something solid that doesn’t change, writes Kim Cameron, professor at the University of Michigan. When things are in flux, there is the risk that people will lose sight of their principals, forgetting, for the time, that principals should not change.
That’s why in ever-changing environments, maintaining integrity is crucial. Integrity is all about living ethically. But Cameron says it’s only part of the equation. Virtuousness is just as important. He measured the level of virtuousness (compassion, integrity, forgiveness, trust, and optimism) at various organizations and discovered that organizations with high scores outperform those with lower scores in the areas of profitability, productivity, innovation, quality, customer retention, and employee loyalty. What’s more, virtuous firms make more money, recover faster from downsizing, retain customers and employees better, and are more innovative.
“In times of turbulent change,” writes Cameron, “virtuousness also serves both as a fixed point, a benchmark for making sense of ambiguity, and as a source of resilience.”
Timing Is Everything
Many change management proponents believe change must occur in large doses as quickly as possible. But that tactic can easily backfire, resulting in cynicism and burnout. Companies that have undergone massive change may do best to learn to slow down and let the changes be absorbed. A look at the management style of Lou Gerstner, former CEO of IBM and current chairman of the Carlyle Group, may shed some light on the issue.
At American Express Travel Related Services (TRS), RJR Nabisco, and eventually at IBM, Gerstner implemented “pure creative destruction” when he came on board, writes management expert Eric Abrahamson. In his first nine months at TRS, for example, Gerstner launched massive reorganization campaigns in two business units, including huge shifts in management. Immediately after that came numerous new product launchings. Those nine months were like “breaking the four-minute mile,” Gerstner later said.
But Gerstner had a good sense of timing. At the first signs of change fatigue, he stepped back and let the changes soak in. For the next 18 months, no new outside executives were hired and no new products were launched. During that time, Gerstner made minor, unthreatening changes; he tinkered with the structure, the compensation system, and the product offerings. This cool-down period better prepared the company to absorb the next wave of change.
How Do You Respond?
Not everyone responds in the same way to change. Most of us simply don’t like it and have to actively overcome our resistance. We are creatures of habit. Author Mary-Frances Winters describes six types of people and how they cope—or don’t cope—with change.
The foggies. These employees are in a fog, ignoring the change going on around them. To get through to them, leaders must communicate openly, maybe one-on-one, so the foggies get the message loud and clear.
The fakers. This group tries to convince themselves and others that they are with the program, even though they aren’t. Fakers typically want to change but aren’t sure how and may be afraid to admit it. This group needs to set small, incremental goals.
The faultless. This bunch may complain about change and see themselves as victims. They typically blame their leaders and expect them to “fix” the problem. To move beyond the blame game, this group needs to take personal responsibility.
The fearful. This group, worried about downsizing, mergers, acquisitions, and change in general, tends to be overly cautious and self-protective.
The fighters. These employees are typically long-term workers who fight for the status quo. “But we’ve always done it this way,” they might say. The fighters can be stubborn, and some decide to leave while others get pushed out. They want assurance from their bosses.
The futurists. This group is adaptable, experimental, and resilient. They believe they are in control of their destinies and are not fearful of change because they believe in themselves.
|
|
