Managing Change Successfully
We all know that if you continue to do the same things in the same way, you will generally get the same results. According to the CBI, UK productivity is 17% below the G7 average. So, to be competitive, we must change, and then keep changing.
There are a number of best practice methodologies, such as Lean Management, which can help to provide a structured roadmap for change. Ingraining such philosophies and tools within an organisation can profoundly improve the prospects of business and employees alike, but this represents a long term commitment; however, for many companies, the biggest hurdle to overcome is just getting started.
For many businesses, and not only the smaller SMEs with limited resources to call upon, the prospect of transformational change can be somewhat daunting. So, in plain language, what do we need to look out for?
Step 1 – Are you sure you want to do this?
It almost goes without saying, but a sanity check as to whether the proposed change represents sound strategy can be the most valuable step of all. This is clearly a larger subject, but here are a few thoughts:
- Is capacity constraining growth? – If the resource in question is not core to the business, consider outsourcing (e.g. subcontractors, shared services providers or third party logistics providers)
- Is an exit on the horizon? – will a new owner value the new investment being considered (e.g. a trade acquirer may be more interested in your products or customer base than a new ERP system)
- Are you looking at larger scale organisational change? – consider setting up a pilot as a feasibility test and training platform
- Invest some time in discussing ideas with peers or advisors
Step 2 – Plan and Prepare
The successful outcome of a programme of change can largely be determined by how well you prepare. You may have seen the classic “change curve” which charts the various phases of morale (or performance) during a period of significant change:
Kubler-Ross Change Curve
Pretty pessimistic stuff, I would say. In fact, rather than the trauma and despair shown here, progressive change can be an uplifting experience if managed well and if those affected are meaningfully involved: if you create a vision that generates energy and excitement, celebrate achievements and tackle potential obstacles proactively, the battle may not be a battle at all.
While morale need not suffer, at least in the main, it is generally true to say that performance levels will go down before they go up. Also, change does not happen by itself (at least not in the right direction), so it is almost always true to say that there will be a “spike” in effort, including management workload, to overcome. The business must ensure that sufficient and appropriate resource and management attention is paid to the project to ensure its success while simultaneously ensuring the day-to-day running of the business is not jeopardised. Easier said than done but possible with the right preparation – here are a few “golden rules” and elements of best practice which can help navigate these waters:
- Be realistic in your estimates of time, resourcing and budgeting: aim for the best scenario but plan more conservatively
- Assign the right team and leader and make accountability clear
- Use external support where necessary to overcome transient gaps in skills or management capacity
- Create a clear vision, sell the outcome to everyone and generate energy
- Know and measure, as objectively as possible, what you need your project to deliver for the business
- Provide training as interactively as possible: telling people may not be enough; showing people is better but having people experience the future will engage them. Simulation games can be easy to set up and very effective
- involved everyone affected; communicate, communicate, communicate!
Step 3 – Execute!
If the planning is perfect, then execution might be perfectly smooth; however, in case perfection alludes us, let us look at some further wisdom…
- Support from the top – “I approved the budget, didn’t I?” is not enough from leadership: if there is insufficient support (and understanding) at the top, you will see resources being dragged off the project, cross-functional meetings not being attended and, at best, delays and erosion of the envisaged benefits
- Continue to communicate!
- Continue to sell the vision: turn engagement into enthusiasm where you can
- Continue to train; hands-on training where possible. Allow people to try new things, without fear, and grow their confidence
Step 4 – Follow up
The date of “go-live” or “delivery” is never the end:
- If the envisaged improvements have not been delivered, identify the “gap”, the root causes, the countermeasures to close the gap, establish a team and deliver; repeat
- If targets are being achieved, raise the bar and repeat the process!
- Formalise and communicate: improved processes become the new standard
Implementing change is difficult the first time around, but as we experience the benefits to our work content, we may be motivated to press on and embed on-going improvement into our culture. Excellence, as the saying goes, is a habit.
Applying established best practice methods such as Lean Management need not be difficult, at least in the technical sense, and avoids having to reinvent the wheel. Applying it is an act of will.
To contact Mark Chapple directly, and book a free introductory consultation, email mark.chapple@emcltd.co.uk or call 01273 945984.
Read more in this series on operational management…