What Change is Everyone Talking About?
You don’t have to look long on social media or job postings to see the inquiry and needed resources around corporate change management. It’s everywhere. Why? What problem is being addressed?
At the root is the idea of creating a healthy organization while managing change. Well, what change is most effecting corporate America and teams today? Isolation. Lets take a look.
As we know, a healthy organizational structure allows its employees to focus on producing quality products and services. Effective organizations provide opportunities to its employees to develop new skills. This allows the staff to constantly improve business operations and ensures that the company maintains a competitive edge required to thrive in a dynamic global marketplace. Creating a healthy organizational structure begins by assessing your company’s needs. Maintaining the structure involves running events and programs to maintain a productive workplace. This should be done on going and may or may not be accomplished internally.
According to Gallup's 2014 State of the American Workplace survey, 70 percent of U.S. workers are not engaged at work. This disengagement costs the U.S. $450 to $550 billion in lost production each year because employees are emotionally disconnected from the workplace. Younger workers are less engaged.
Do we have a worker problem or a leadership problem?
According to Patrick Lencioni of The Table Group and author of many best-selling books, a healthy organization makes all the difference in success vs. failure. A healthy organization can help answer those questions. Lencioni says, organizational health is essentially about making a company function effectively by building a cohesive leadership team, establishing real clarity among those leaders, communicating that clarity to everyone within the organization, and putting in place just enough structure to reinforce that clarity going forward.
Simply put, an organization is healthy when it is whole, consistent and complete, when its management, operations and culture are unified. Healthy organizations outperform their counterparts, are free of politics and confusion and provide an environment where star performers never want to leave.
So evidence supports honest debate about what might be wrong in your organization can lead to "fixing" it before it becomes a problem. Are you looking for problems, even those not easily spotted? We know challenges ignored fester into bigger issues. Furthermore, evidence supports a healthy organization performs better than an organization that does not create a healthy culture. And finally, experience tells us that little things left undone, unsaid or unresolved can have a devastating impact on outcomes over time.
One of the most significant factors in not creating and maintaining a healthy organization is the lack of resources, perceived or real, specifically on change and change management.
Why is change the killer? American inventor Charles Kettering once said, "The world hates change, yet it is the only thing that has brought progress." As the insight of someone with over 300 patents, observing Mr. Kettering's advice may provide us, as well as our clients with productive ways to deal with responses to change. One new change is isolation. Today, loneliness has become an epidemic in the U.S., with 53% of American workers regularly reporting feeling isolated in their public lives — an immense problem given the toll loneliness takes on the both physical and mental health. Regularly feeling gratitude, compassion, and pride — because these emotions automatically make people behave in more communal and supportive ways — builds social connections.
According to Tara Duggan, a Project Management Professional (PMP) specializing in knowledge management and instructional design, leaders should consider these steps to begin to codify your healthy organization’s maintenance plan:
1. Analyze your policies and procedures. Structure your management framework to support efficient production. For example, to create an effective organization, arrange your personnel into functional groups, such as Finance, Purchasing, Marketing, Sales and Human Resources. Align each group’s performance goals with your company’s strategic objectives. Create or revise your organization’s mission, vision and goals. Account for social and economic changes.
2. Document your company’s hierarchical structure and publish it on your company’s website, through email or in print form. This allows everyone in your company to see the reporting structure, associated roles and responsibilities.
3. Use the resources provided by the Society of Human Resource Management website to learn about industry trends. For example, use the State and Local Resources website to get information about state law updates for your state. Ensure your business adheres to regulations, such as family leave laws or hours of rest required in your state. These contribute to maintaining a healthy organization.
4. Conduct an annual survey using online questionnaires. Invite employees to respond anonymously to your survey to gauge how well the environment supports employees. A comprehensive survey allows you to measure employee perceptions of company operations. By running your survey annually, you can compare results from year to year and determine the success of intervention programs you run.
5. Identify areas that need improvement to maintain a healthy and safe workplace. Using tools available from websites, such as the Mind Tools Problem Solving Techniques website, create cause and effect diagrams to isolate problems.
6. Help your employees adapt to change by communicating regularly with your staff. For example, publish a monthly e-letter that describes upcoming events, changes in personnel and new company directions. Ensure that all employees respect and support the people around them by facilitating sessions in valuing cultural diversity, handling workplace conflict and time management. Professional development enables employees to act appropriately in today’s often-turbulent world/ market place. Invest in your people’s personal development.
7. Encourage employees to share their skills and knowledge using social media. In addition to providing meaningful connections to people who may not work in the same location, online communication documents knowledge attained, such as troubleshooting procedures and solutions.
8. Provide opportunities for personnel to receive coaching and mentoring to further their careers. A healthy organization recognizes the value of individual achievements. By providing feedback and advice, executive leaders can groom new personnel to take on additional responsibilities. This helps the company’s bottom line as well.
9. Implement performance-based management. Evaluating employees on their ability to achieve their own goals establishes personal accountability. By retaining and developing motivated employees, your company can maintain its competitive edge.
10. Establish professional skills development programs to help all employees at every level do their jobs better. Encourage employees to take and pass exams associated with professional credentials, such as the Project Management Professional, Microsoft Certified Professional or other certifications associated with your industry.
So much of the healthy organization stems from the change management process.
In a world that is increasingly fast paced and ever changing, the change management process is an integral part of any organization and manager.
Whether planning a large fundamental change or a smaller incremental one, Lee Candy, creator of Educational Business Articles, a service to help students, leaders and business owners learn and apply some of the tools and techniques in business to grow their teams and skills, suggests change must be planned and executed correctly and the following change management process will give direction in terms of content needed for successful transformation.
Casualties along the way
For a number of reasons, not everyone will eventually change anyway, but the focus must go on at the planning phase to understand those affected and to also gauge how change ready people are. A simple and unscientific rule, but still a good measure to use, is the 20:60:20 model.
- Try and find the 20% of those affected that seem to be ready for change. These people will help lead and drive the changes necessary.
- Next, focus on finding the 60% – those that will sit on the fence and will follow either the concrete heads (those that don’t want to change) but equally, given the right exposure, will follow the 20% who are the converted.
- You are then left with a model of attack, whereby you have highlighted roughly 80% of the potential business that you believe will change, given the right environment. – Now you can make real progress!
Lets dig deeper. The change management process focuses on four stages:
This model will allow the practitioner to understand what generic steps to take along the change management process. The primary remit is to plan, plan, plan!
Plan for the transition and plan for change!
Change is about People
People are dynamic. They are the hardest things to change – after all, we all have our own systems, beliefs and values. We all change at different speeds and we will only change if we believe in the vision. Changing people means that we have to use our leadership skills to enable the vision to be successful and that change to be embedded: this means nurturing people through the change effectively.
This part of the change management process involves identifying issues, environmental factors that are causing the need to change and any other accompanying data. There should be a lot of searching and identifying exactly what the real root cause to the problems being faced.
It must be clearly understood what is going on, and more importantly what is going wrong. Only then, once you have found these factors, you can work forward to create a vision with which will hopefully solve the current crisis.
The outputs from this phase are:
· A Baseline of current state.
· Root Causes to the current problems.
· A Vision of what the ideal state should look like.
The Design phase of the change management process is about adding the meat to the bones. It involves designing the way forward – planning the right path, using the correct change model and creating a robust process that leaves no stone unturned.
The design phase looks at the vision and works backwards to understand the steps needed to make the change process happen. It also focuses on the softer side – how will the transition happen? How will the cultural change happen, over how long and what needs to be put in place to allow people to change naturally?
By understanding as much information as possible, it is easier to manage the transformation through the course of the change management process. Moreover, you can address the issues in a clear and concise way.
Factors to understand and address at this phase:
Understand Change Readiness – Here, you can start applying the 20:60:20 model to identify the 80% that you can plan fundamental change with.
The Psychological Contract – Understand the change in the eyes of those affected – what will they feel they will lose? What impact will it have? What negatives will they see? Someone once wrote: A manager will spend 95% of the time explaining the impact of change to the organization and only 5% about the impact affecting the individual. That person will go home and spend 95% of the time discussing the impact on them and only 5% of the time about the impact on the organization! – Seeing in the eyes of the individual will give a greater return.
Create a plan to overcome resistance – Using such tools as Lewin’s Force Field Analysis, you can start to address possible barriers to successful change and then create a deployment plan to address those negative issues, closing out all the tasks when completed during the project.
Create the correct change path – understanding all of the above, now is the time to create the best change path. The change path is sometimes referred to as a Transition plan. It deals with real change, meaning the cultural transition. Typical models to deal with this are as follows, and will be your main driving tool through out the whole transformation covering Design, Execute and Sustain phases:
The outputs from this phase are:
· Establish a clear project plan.
· Understand cultural barriers and create a transition plan to allow progressive cultural change to happen. Also, a clear understanding established of the correct change path model to use.
· Create a Change management plan to allow the process tasks of the project to be monitored and actioned.
· A Deployment Plan created, linking all the above in one change project plan.
The preparation has been completed? it is now time to execute the plan using an agreed change path from the Design phase. Once this is in place, the next task is to communicate, communicate and communicate!
You can never over communicate and it is essential that regular feedback and coaching is conducted, tackling issues and the barriers that may have been preconceived at the design phase.
Here, Management must lead fundamental change, setting the bar, envisioning and encouraging.
The deployment plan comes into its own here: Tasks referring to the process of change must be implemented and also the change model must be thoroughly used and reviewed regularly to ensure effective execution.
The outputs from this phase are:
· Reinforcement mechanisms – To allow regular feedback and also regular communication about the plan and vision. The more channels of communication the better.
· Corrective action plans – Answering some questions like: What is working well and what needs addressing? What barriers are there? How is the transition plan working?
· Use and close out of the deployment plan.
Remember, Humans are creatures of habit – If new ways and systems are not encouraged and constantly driven, then it is natural for people to resort to the old way of working.
Sustaining, then, is all about maintaining the vision, supporting and leading the correct practices and behaviors. That means giving encouragement, but also really driving change through the business, using the workforce as real change agents.
The most important thing here is to stick with your change path model ensuring that you are spending enough time and giving enough attention to each of the softer, cultural requirements during the Transition. Omitting this will result in failure with the whole project.
The important thing to note is that although the change management process is linear in its approach, dealing with culture is not as simple as that. At times, there may be a need to return to the previous phases to address some issues, adjust the plan etc. This is fine, but ensure that change is being embedded through successful Leadership and positive focus in the change path model that you choose.
The outputs from this phase are:
· Compliance audit reports
· Corrective action plans
· Deployment plan reviews
· Celebrate successes
· Individual and group recognition approaches
· After action reviews
Those that Don’t Want to Change?
There should be a time when the 20% that do not want to change are given a choice – Go or stay. Change should never be enforced on people as there is no ownership in these instances in the longer term, which means that the business will be damaged, however there are times when coercion may be needed in times of urgency and only then! We can engage with the change or we can leave. As organizational development (OD) professionals, we need to recognize this as a legitimate strategy. We cannot and should not force change on people, our role should be to enable change and to encourage people to make a choice or decision during the change management process.
Feedback, and Communication
Remember to keep reinforcing the vision, whilst working through the deployment plan in your change management process – Regular reviews will ensure progress over a longer term. Asking questions along the way, like “What lessons did we learn, how could it be done better?” are always good questions to ask. No one ever gets things perfect, so understanding the weak points in the change management process and why change often fails will enable a more improved change process next time.
Tara Duggan (smallbusiness.chron.com/create-maintain-healthy-organizational-structure); EBA (www.educational-business-articles.com/psychological-contract/); The Table Group Consulting (https://www.tablegroup.com/consulting); Harvard Business Review (HRB.org); Gallop Research; Cannon Clay Consulting (cannonclay.com); Third Quarter Advisers (3qadvisers.com).