4 Critical Success Factors In Making Change Happen

Copyright © 2010 Ivan Nurick

Every leader is charged with the responsibility of keeping the business relevant to its customers. If you examine the top 20 companies listed on the stock exchange, how many of them appeared on the top 20 list 5 years ago? 10 years ago? 20 years ago? My guess is not more than 5-8 companies feature on the top 20 list consistently over the last 20 years. Why? Because their leaders failed to keep the organization relevant to continuously meet the needs of its customers over time. Do you want to learn how to lead sustainable change. Read on...

An organization's ability to change is critical to its long-term survival and growth. This is a strategic imperative that has been validated by the research of many eminent academics worldwide. Peter Senge, in his book The V Discipline suggests that companies have an average life expectancy of forty-three years - less than that of humans. When the results of Senge's research are applied to the work of Richard Pascale, who reviews the status of the 43 "excellent" companies highlighted by Peters and Waterman in their book In Search of Excellence (published in 1982), we find that of the 43 "excellent companies" only 14 were still considered "excellent" in 1987, only 5 years later. A total of 19 companies or 44% of the total were either in trouble or in a weakened position. Why, because they failed to adapt to changing market conditions.

The following 3 steps are essential in implementing effective change:

1. We examine why people resist change by looking at the phases of transition.

2. Then we present a 4 step framework to help you manage the change process.

3. Finally, we present a practical model for change that induces and creates sustainable change.

1. Phases of Transition

Because we don't readily accept that change is either necessary or inevitable, we generally go through various phases of transition. Each phase may occur over a relatively short or long time, depending on the prevailing circumstances.

Phase 1 - Denial

Initially, management may be unaware of an impending change or crisis. The signals may be seen, yet are overlooked. Management is complacent, possibly even arrogant. Management are in denial.

Phase 2 - Resistance

The signals grow stronger. Pressure mounts. Management still disregard the emerging trend, believing it to be a short-term environmental change, which is, after all, beyond their control! Alternatively, change is already in progress, and it is only a matter of time before performance will improve. Impending crisis is explained away in the belief that it will disappear and there is no need for action. Resistance to change is apparent. At this point, management still believes that their strategy and overall direction are correct.

Phase 3 - Exploration

In the third phase of transition, management are now acutely aware of a crisis. Some action is taken but it is not enough. The exploration phase, therefore only has the effect of slowing down the process, not arresting it. This is because we 'tinker at the edges' and address symptoms not causes. Past organizational behavioral practices continue. Management may even continue its optimistic rhetoric towards the future.

Phase 4 - Commitment

In the final phase, everyone realizes that change is urgently required. Leaders become more directive. Decision making teams become smaller. Time is of the essence. Commitment to change is absolute. Fundamental changes to the underlying assumptions, values and beliefs of the organization's culture are made. This causes a significant change to the strategic behavior within the business. The tension/crisis will either lead to recovery (which may or may not be sustainable) or to failure and ultimate bankruptcy.

The obvious question that this discussion raises is - "How does one recognize the symptoms of each of the phases of transition so that pre-emptive action can be taken to avoid a crisis?"

2. A Framework for Change

The following framework for change presents a model that is easily conceptualized and understood. It can also be related to the phases of transition described above.

For change to be successfully accomplished, there must be:

a. Pressure for change; and

b. A clear shared vision; and

c. Capacity for change; and

d. Actionable first steps All four change elements must be present and active simultaneously.

What if any element is missing?

There will be different organizational consequences that will emerge if any one of the four change variables is missing.

a. Pressure for Change

If there is insufficient pressure for change, people will be in denial. Change is considered a low priority and therefore placed at the bottom of the in tray.

b. Clear Shared Vision

Without a clear shared vision, resistance to change will occur. As we do not all see the need for change, it is driven by a few people. It starts rapidly and fades quickly.

c. Capacity for Change

Insufficient capacity for change will result in some exploration meaning that we do not go far enough. We are likely to treat symptoms and not the cause(s). Accordingly, people undergoing the change become anxious and frustrated. Management fail to meet expectations that they have created.

d. Actionable First Steps

Actionable first steps will probably elicit some commitment. However, unless all the other change variables are in place, it will result in haphazard efforts and false starts.

Now that we understand why change programs don't fully deliver expected results, we can examine how to make change happen to achieve positive and sustainable results?

3. Inducing Change in Organizations

Let us examine what is needs to be done to induce change in organizations. In order to make change happen, we need to do three thingd:

a. Create energy;

b. Focus this energy, and

c. Promote organizational learning.

a. Create Energy

The energy levels within an organization are raised and sustained with inspirational leadership and a vision that motivates and engages everyone. In addition, the use of scenario planning can assist management to prepare for and anticipate future uncertain operating environments.

b. Focus Energy

Keeping The Main Thing The Main Thing assists leaders to focus energy on the company's goals. An appropriate organisational structure with supportive systems and processes also assist to optimize resource allocation and effort. Managing Critical Issues and performance will also keep people on track.

c. Promote Organizational Learning

Ongoing training and mentoring together with effective communications (including regular feedback on performance) increases efficiency and effectiveness and reduces repetitive mistakes.

In addition, the organization's "state of mind" - the attitude of individuals and the manifest culture, must support and reinforce both change and new learning. Old organizational practices that are no longer relevant must be unlearned. Finally, a systemic, holistic and integrated approach is essential.

How effectively are you managing your change processes?

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Do you want to learn how to lead sustainable change? To assist you to more easily make change happen , we outline the following 3 steps:

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