Change—How to Manage It (adapted from Hard Facts by Jeffrey Pfeffer and Robert Sutton)

“We’ve got to change.”  “It’s time to make a change.”  “The market has changed.”  “We have no choice—it’s change or die.”

Sound familiar?  And yet we’ve also been told “nobody likes change” and “change is risky.”  So what’s a CEO to do?  Refusing to change may sink the organization. But change itself (if improperly implemented) may also sink the company.

The authors suggest acting on what you know, realizing that you don’t “know it all.”  They also suggest several things to consider in order to diminish the risk (and pain) of the change process within your organization.

1. Ask yourself, “Is the change better than what you are doing right now?” 

Do some research.  Has the new practice succeeded elsewhere?  How difficult was their implementation?  Don’t assume that your company will do better “than anyone else.”  Try limiting your risk by using a pilot program first.  If all goes well, then you can roll out the change throughout your organization. 

2. Is the change really worth the time, money and disruption? 

Make sure that your time line and budget for implementation of the change are realistic (given what happens to other companies).  Also, make sure any third parties you are dealing with have not underestimated the costs and time required for implementation.  Also, watch out for overestimating the gains from the change.  Remember that things always seem to look better from a distance where “problems and blemishes are less visible.”

3. Do you have enough power to make the change happen? 

Support for an organizational change, even from the CEO, does not guarantee it will be implemented.  You must be aware (or become aware) of the power dynamics both within and outside your organization.  Which groups will likely support the change; which groups will oppose it?  Do you have enough internal support?  Do you have enough resources?  Are your current allies capable of helping you?  Whom do you have to win over for the change to work its way throughout the organization?  Forget about implementing the change until you can answer these questions in a positive fashion.

4. Are your people already overwhelmed by too many changes? 

Human beings have limited information-processing capacity.  Most people’s ability to focus and make choices is limited.  Give them too many choices and ---paralysis sets in.  Have you ever heard this being said around your office, “Well, this must be the new ‘flavor of the month’?  The boss has another idea, a new program, etc. to bless us with.”  First, people can’t handle the information overload and the twisting and turning from one new idea to the next.  Also, many employees don’t take the changes too seriously since they know another change is “just around the corner.”  Think about being the leader who pushes for fewer changes but who pushes for them harder.

5. Will you be able to pull the plug?

The authors warn that “a change poses lower risk if there is an option to discontinue if it becomes clear that the new idea, however well intentioned, was a mistake.”  Be careful that once the “die is cast” you don’t become enamored with the process of change.  “I know it will work if we just work harder.”  Be prepared to stop the change process and reflect on what went wrong—so you don’t repeat the same mistake the next time.

The authors also suggest what type of environment is ripe for change—an environment that underlies most successful change efforts.

* People are dissatisfied with the status quo. (If people are happy with the current state of affairs, they have no incentive to change)

* The direction you’re headed is understood by all and your people can stay focused on that direction. (Communicate what the change is, why it is necessary, and what people need to be doing right now—repeat this over and over again in what you say, write and role model)

* You and your people are very confident that the change will succeed. (Express zealous faith and season it with a dose of reality where people can express their doubts and uncertainties about the change)

* All involved accept the fact that change is a messy process involving some periods of confusion and anxiety. (Treat glitches as a normal part of the change process.  Focus on fixing problems, not fixing blame.)

One of the many blessings of being a Christian in the marketplace is that we can draw on heavenly wisdom as we anticipate and implement change in our organizations.  God, our Creator, has provided us with wonderful human resources (creativity and imagination) and a limitless supply of heavenly insight as we seek to serve Him and others in the marketplace.   Now, what do you think needs to be changed? 

Keith 

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