Posts Tagged “Strategic Change”

In today’s business world, no competency is more crucial for a manager than the ability to spearhead change effectively and expeditiously – and in a way that fully engages all stakeholders.

As we’ve already established, change management is a systematic and coordinated approach that can be implemented on an organizational, operational or even personal level to create, lead and manage change. However, to successfully lead any change, one needs to follow a series of six comprehensive steps. These steps are manifested by The Brookside Group’s ASPIRE Change Leadership Model^TM:
 
For the successful implementation of any large project, and especially a change initiative, it is important to perform project steps in the correct order. Thus, the ASPIRE model begins at the top of the circle, with Assess the As-Is.

The Assess the As-Is gives you with some critical components to launch your change initiative:

• The awareness and understanding to explain why change is needed based on current business issues.
• A clear picture of your current state. You might have an idea of how your organization is performing, but thoroughly investigating the as-is state ensures you have the facts and not just guess work.

All this results in a platform for change that helps you establish the sense of urgency – one of John Kotter’s key reasons for failure (see posting Why Transformation Efforts Fail) – to rally support. Support is critical because for change to happen, according to Harvard Business School, 75% of managers must believe that maintaining the status quo is more dangerous than making a change.

In future posts, we’ll discuss the other steps in detail. But one final comment for now: You’ll notice, that The Brookside Group’s ASPIRE model is a closed loop. That’s because it needs to be a repeatable and sustainable process of continuous improvement that brings about meaningful change and continues to drive your organization ever closer to optimal performance. This is an important point to remember as we discuss the other steps.

It is safe to say that companies are constantly changing their ways of working to find better ways of going to market. Strategies are changing, processes and technology are being upgraded, functions are being reorganized all while quality improvement and cost reduction programs abound. Change has become the status quo.

It also is safe to say relatively few employees are actively engaged in their work. Recent surveys from Gallup place the level of active engagement at 26% and Blessing & White place the figure at 29%.

The disconnect between strategic actions and employee engagement, particularly at the middle management level, is of significant worry to CEOs. In PriceWaterhouseCoopers’ 2008 CEO Survey, 50% of CEOs stated a lack of engagement or motivation of middle managers to drive change represented a critical barrier to effective change. It isn’t too hard to imagine the CEO turning the helm of a battleship wondering, “When is this thing going to move?”

So what can be done to move the battleship? In our work, we have found five strategies to be helpful:

1. Awareness - Put simply, communicate, communicate, communicate. Nobody has ever over-communicated during periods of change.
2. Understanding - One-way communication can generate understanding on simple topics. “Submit your forms by Tuesday,” doesn’t need a conversation to ensure understanding. More substantive change - such as changing a job’s responsibilities - does. Unfortunately, change sends most managers in the opposite direction of conversation. They do not want to confront change’s unpleasant aspects, and wind up having less dialogue with their teams than they would during “normal” times. Working around this tendency comes in strategies 3-5.
3. Participation - Employees who shape their own future will have a vested interest in the success of that future. Draw people into the could-be vision, enable project teams to design their own future state, provide education and training. Do anything and everything to get people involved. What they build will usually far exceed what the leader would design. Sometimes, however, what they build will fall short of the leader’s potential design. Shortcomings in design will be more than made up for in execution. They own it, and they will make it work.
4. Measurement - There is a concept in quantum mechanics saying it is impossible to measure something without affecting its attributes. (Explaining quantum mechanics is for another blog, however!) Measurement calls out performance - both the good and the bad. How measurements should be used depends on the organization’s culture.
5. Leverage - When in doubt, use a lever. Why spend three hours explaining a concept to five managers? Spend two hours explaining the concept to one director. Let the director drive the concept with the managers. People want to hear about change from their supervisors - not a project team. Invest heavily in the top of the organization chart and the battleship will move much faster.

If you are accountable for your organization’s change program, there are five steps you need to take to ensure success.

1. Fully understand why your organization needs to change. The reasons behind your organization’s need to change will drive many of your decisions. What are the events placing new demands on your organization? Are these events internally - low employee engagement - or externally - downward shifting economic trends - driving the change?
2. Establish what must be done. At this stage you need to:
   • set a vision for the change project
   • define your guiding principles and imperatives to ensure each decision made or step taken on your path to change is the right one
   • set measurable objectives and goals and determine how you’ll measure your progress
3. Plan how the change will roll out:
   • identify the major actions and timing necessary to achieve your objectives.
   • establish the strategies necessary to reach your vision and objectives
   • identify and obtain the resources you need to achieve the objectives.
4. Align senior managers. Granted, the change was likely their idea, but the execution is all yours. You must have them aligned on the how and when of your program. Do this so they walk the talk.
5. Initiate a measurement program to track your progress and adjust plans as necessary. Provide feedback processes to gather information about your progress, and rewards to engage employees.

Plain Jane change builds on existing skills, work practices and behavioral norms.  It involves going from A to B to C.  Transformational change is different - it goes from A to C without stopping at B.  It’s disruptive and creates ambiguity, confusion and turmoil. 

Here is the test:  Simple change is something you can manage, and you might have to tell your boss.  If it is transformational change, your boss’s boss is involved.    Transformational change stretches beyond the boundaries of what you and your boss can manage and control.  It is transformational change when:

• A CEO has to tell not only the Board of Directors, but set expectations with the shareholders as well.
• A group reorganizes / changes business processes / implements new systems that impact not only the group’s members, but creates significant disruption in other groups as well.
• The way forward has myriad obstacles to success.