Leading change is one of the most important and difficult responsibilities for managers. It involves guiding, inspiring and facilitating. For some, this is the essence of leadership.
The topic of leadership is widely explored in the ISO9001:2015 standard, but not many gets the underlying context and how it relates other standard clauses. We talk about leadership, planning, risk management, change management, competency and knowledge share. Focusing on change, let us explore what might be changing and how to plan for it.
The changing roles and attitudes
There are differences between the efforts to change attitudes and efforts to change roles. The attitude-centred change focuses on changing attitudes and values. The role-centred approach involves changing roles and workloads.
One way to implement those is to start conversations about changed behaviours and how cooperation is crucial. Some organisations introduce cross-functional teams with an assumption that people together will achieve a common goal.
Which approach is more effective? The one which was implemented correctly. The best approach may be to implement them both.
The changing technology
Many organisations attempt to improve performance with new technologies. Such programs often fail because the roles do not change, the attitudes do not change and often the skills do not change.
The changing strategy
Another type of change is the strategic competitiveness. This can include introduction of products or services, entering new markets, new forms of marketing or joint ventures. These changes also require consistent change in people, roles, attitudes, structure and technology.
The changing economics or changing people
Some businesses seek to improve the business financial performance through restructure, downsizing or changes in people's skills, commitments, learning and improvements in working conditions. Generally a large change in an organisation involves both economic and people changes.
The transformational change
There are also developmental changes connected to transitions and transformations. This will generally involve improving skills, processes, standards, training, procedures and programs.
The change process
There are distinct phrases in the change process. Lewin (1951) suggests that change happens through
(1) unfreezing,
(2) changing and
(3) refreezing.
In the first step - unfreezing people come to realise that the old ways no longer work.
In the second phrase - changing - people look for new ways of doing things.
In the refreezing phrase new approaches are being implemented and established. Problem solving is required in the changing step.
Lewin also suggests that increasing driving forces towards change ( incentives and power) and reducing restraining forces ( fear, opponents) will lead to successful change process.
There are also different reactions to change. The reaction has four stages:
(1) denial,
(2) anger,
(3) mourning, and
(4) adaptation.
Of course, the initial reaction is to deny that change is necessary and the next stage is to get angry and look for someone to blame. People stubbornly resist to give in to the change. Then people stop denying and start acknowledge that the change is necessary and finally accept and adapt. Some people, however, get stuck in the intermediate stage. Leaders here must be patient as many people will need to overcome the resistance, denial and have optimism about the new ways.
How a person reacts to change it depends on their level of confidence, risk-tolerance, openness and the internal locus of control. People may experience stress and frustration.
Accepting or rejecting change
One reason for changes failing is the type of the influence that leader has on the change. Commitment is more likely when the people trust their leader and if the leaders themselves believe that the change is necessary.
Some people will think that the proposed change is not necessary. They may think that there is no problem to be resolved. Others may believe that the proposed change is not feasible and it cannot be implemented successfully. Changes require new learnings and confidence in the change.
Some others may assume that the change is not effective or would cause personal losses. Changes often result in some costs or even loss of power and the change may seem unfair if they have little or no influence on the change.
Many changes may also be inconsistent with values. If it is views as illegal or unethical it is more likely to be resisted.
In other situations, people may simply not trust the leaders or some organisations may be cynical of any changes making any difference. If previous changes failed people will be less likely open to new changes.
Finally, some changes are the result of inflexibility or ignorance of people. People will want to protect their self-interest.
Implementing change
The outcome of implementing change will depend on what is changed, how and when.
Before initiating changes it is important to define clearly what needs to change. Leaders should be clear about the problem and the objectives on how to resolve it with changes. It is, therefore, important to accurately diagnose the issues. If not done properly, the changes make make the situations worse.
This will also require the deep understanding of the business system structure, relationships to anticipate the likely effects. The system dynamics will involve complex relationships, problems with multiple causes as change in one part of a system will affect changes in other parts.
Sometimes actions may appear to provide a quick relief but make things worse in a long run.
This is when quick solution may present quick benefits but delayed benefits in the long term. Therefore a leader who is impatient for quick results may keep repeating inappropriate remedies, rather then pursuing better remedies that require patience and short term sacrifice.
It is imperative to understand the complex interdependencies among the business processes and the implications on other parts. This is called the "system thinking". It is essential to understand how the different parts of an organisation are interrelated. Leaders need to consider the likely consequences of making decisions for one part on another part or division.
Sometimes, also, small changes turn into big changes which may not be desirable. There may be positive examples where one successful change in one part can encourages other to change as well.
The Responsibility for making change happen
Large-scale changes are unlikely to be successful without support from top management. Although these are not always initiated by the senior management. Major transformations in the business may also require the replacement of current management for new leaders in certain divisions.
The top management will generally formulate the vision, strategy and built supporters for the strategy to be implemented.
Complex processes often involve experimentation and learning because it is impossible to anticipate all the problems and prepare a detailed plan for every step. Sometimes instead of preparing a detailed plan it is better to encourage the middle- and lower-level managers to transform to be consistent with the new vision and strategy. Top management should provide encouragement, support the necessary resources to facilitate the change.
The 'silent killers'
Some research suggests to combat the main barriers of change. These are:
(1) unclear strategy, vision and priorities,
(2) ineffective senior team,
(3) autocratic and controlling leaders,
(4) poor coordination and communication across functions and the business divisions,
(5) inadequate leadership development and leadership resources,
(6) poor communication - down and up - lack of feedback.
These are often called the "silent killers" of a change efforts. These can cause severe damage to the organisation and often unrecognised by the top management.
If we are unsure of what kind of business we want to be the business will fall apart.
There are also certain strategies designed to combat the 'silent killers". These involve:
(1) one-day meeting of the senior team to develop the statement of the business direction,
(2) conduct interviews to gain feedback among employees of the business strengths and weaknesses as well as the barriers to the execution of the strategy,
(3) senior team diagnose the feedback and plan for change,
(4) senior management team presents the action plan to the representatives for redesign and realignment,
(5) the representatives meet to discuss the action plan and prospects for implementation
(6) the plans get revised and redesigned based on the assessment,
(7) the senior team diagnose, meets with the business and communicate what they have heard from the representatives and mobilise support
This structure facilitates the honest, safe, collective and public conversation about the business programmes and helps to ensure the the responsibility is planned and commitment secured.
The pace of change
Some research suggests a rapid introduction of change to prevent building resistance, where other scholars suggest more gradual implementation. Some evidence, however, favour the gradual approach. Major changes are more successful when implemented slowly and will high visible effects to make it clear that the change is serious and to be long-lasting. Sometimes delays are experienced to deal with stubborn opponents that are receptive to change. Sometimes there is an extra time needed to establish trust.
It seems beneficial to change independent subunits simultaneously so that the effects are mutually supporting. However, in larger organisations this type of change is not essential and it might not be feasible to implement change in all units at the same time.
One way to implement a successful strategy to implement in a small scale on an experimental basis. Implemented successfully can encourage successful changes in other places. Involving middle-managers in the overall strategy is also essential.
Successful change in an organisation will also require often changes in the organisational structure to make it consistent with the strategy. Structural changes are likely to be resisted, it might be easier to create an internal structure and postpone the strategy until people realise that they are needed.
Informal teams can be created to facilitate transition without expectation that this temporary structure will be permanent. However, it eventually transition to a permanent leadership with authority to plan and monitor the continuous improvements.
Guidelines for implementing change
A successful implementation of change in an organisation will require a wide range of leadership behaviours. Some of them involve political and administrative aspects. Others involve motivating, supporting and guiding people.
Even those who initiate change will need support to sustain the enthusiasm when setbacks occur. Major change is always stressful and painful for people. Especially when it involves adjustment or disruption.
1. Create the sense of urgency
When changes are gradual and no obvious crisis has occurred many people may recognise the emerging threat. The leader is to persuade people of the need for major changes, mobilise support and explain on why the change is necessary. Explaining that no changes will eventually be very costly and provide relevant information so people understand the reasons for change. It might be done through distributing a summary of customer complaints, prepare summary of costs associated with correcting current problems or prepare compared the organisational performance to the performance of the competitors.
2. Communicate a clear vision of benefits to be gained from change
A vision of what the change will do is very helpful to gaining commitment. More about building and communicating the in the further subchapters.
3. Identify likely supporters, opponents and reasons for resistance
The leader must understand the political process, the distribution of power and the identify of people who support the changes. It is a key to identify main supports as well as the opponents. Time should be spent to explore this. Who is likely to support the proposal? Who is going to resist? What would be necessary to overcome the resistance? How long will it take to gain approval from all?
4. Build coalition to support the change
Persuading people to change is not easy. It is certainly not a job for one person. It requires cooperative effort from those who have power. The first step is therefore to cooperation from people who have the power. The leadership team should also be prepared and competent to implement major change and it is a difficult task to undertake. The supporters do not need to be only from the senior management team, but also from middle- and lower-management teams. This may also be involving external consultants helping, as well as important clients, financial institutions or even governmental agencies.
5. Use task forces to guide implementation of changes
When changes involve modifications to the business structure and relationships temporary task forces could be useful to guide the implementation. These involve development of action plans, designing procedures, setting new rewards systems to be more aligned with the new strategy. The task forces should include people from appropriate functions to take responsibilities. The leader from each task should be someone who beliefs and supports the new vision. They should also have relevant skills to conduct meetings, manage conflicts and involve people to resolve problems.
6. Fill key positions with competent change agents
The commitment from people implementing the change is imperative. These should be people who are committed to the vision and able to communicate it clearly. Those people who do not believe in the change from the top should be replaced as they may use political tactics to block the change. Acting quickly to remove opponents should be exercised.
7. Empower competent people to plan and implement the change
If the senior management tries to dictate the details of a change it is less likely to be successful. The authority to make decisions should be delegated to individuals or team responsible for implementing the change. Instead of telling them in detail of what do do, they are to be empowered. It might mean removing bureaucratic constraints and providing resources to implement the change successfully.
8. Make dramatic and symbolic changes that affect the work
If possible, make dramatic changes that affect the everyday life of the employees in significant way. As they are affected they will know that change is really meant to happen. This could relate, for example, to changing work patterns or authorities but also introduction of new symbols and rituals.
9. Prepare people to change by explaining on how it will affect them
Change will require difficult adjustments by people. If they are unable to handle the stress, they will become resistant and depressed. Some of them rebellious. Ambiguity about the progress may only increase the frustration. It is therefore, better to explain to people the adjustments and prepare them for it. It is essential to be enthusiastic and positive about it. Cynicism will only decrease the confidence in the change and the commitment. It might be worth to prepare a list of typical problems and how to deal with them. Social networks could be created to help people to get advice and support.
10. Help people to deal with stress and difficulties of major change
The trauma of change affects people. Leaders may encourage people to take part in training preparing for the change, but also training on how to manage stress, anxiety and depression. Meetings to encourage talk about change may also be helpful to discuss the culture and the employee satisfaction during the period of change.
11. Provide opportunities for early success to build confidence
If people are experiencing progress in the early stages of the major change the confidence is likely to increase. Breaking larger tasks into smaller steps and short them goals would certainly help. When people experience success, they are more confident. They may be even to invest in larger undertakings.
12. Monitor the progress of change and make necessary adjustments
When planning change it is impossible to predict every step and issues that may be encountered. Therefore, monitoring is essential for learning. Feedback about the performance should be collected and analysed. Timely information are important for people and the change success.
13. Keep people informed about the progress
If the change doesn't bring visible results at the beginning of it, people may believe that it is not going very well. They will become more positive if they know the progress. It is helpful to communicate what is being initiated, what steps have been completed and what improvements have occurred in the performance indicators. It is also important to celebrate the special milestones completed and praise for achievements. Recognising individual accomplishments is also very helpful. Even if obstacles are experienced, its wise to explain what they mean.
14. Demonstrate continuous commitment to the change
The leader of the change must continue to provide the attention and signal commitments to the change. Change should be viewed as important continuously. The leader to consistently support the vision, reject easy solutions to deal with problems, invest time, invest effort and resources to remove issues and participate in the change activities.
The Vision
The success of the change will depend on how well the leader will explain the reasons for the change. A vision of better future need to be attractive to justify the hardship and work invested. The vision also helps to guide the decisions and actions of all involved.
A vision should be simple and idealistic. Not a complex plan with detailed action plans. It should be challenging and realistic. It needs to relate to the business environment, focused to guide decisions and generate creative ideas. If communicated within 5 minutes or less it might be just enough.
The core of the vision is the change mission. The vision tells us not only what we do but also why it is important to do it. It needs to affect the emotions and stimulate minds of people.
The vision conveys the picture of what can be achieved, why and how it will be done.
A value statement is key for developing a successful vision. Slogans can only be one useful part of a good vision. The focus on vision should be more ideological and not the economic outcomes of a project or business.
Transformational leaders are more likely to develop visions. It plays a key role in the field of idea generation, but few organisations have well-developed visions. Visions cannot be generated as part of a mathematical formulas. To develop a good visions we need to have a solid understanding of the organisation, its culture, needs and values of the people.
Below are some helpful guidelines to develop a successful and effective vision:
Involve key stakeholders - one leader cannot develop a vision on its own. Not a successful one. Key stakeholders should be involved. Starting from senior management, but also through understanding the values and expectations of the people of the organisation.
Identifying shared values and ideas - the vision depends on the ideological content in the context of the organisation. Discovery of shared values often requires a solid amount of effort. We may ask people what the best future would look like and describing it in a specific time in the future. We may want to define the gaps between what we have now and what we have in the future and work on achieving it.
Identify relevant elements of the old ideology - some elements of old ideologies may be still worth preservation. We need to look for values that will continue to be relevant.
Link the vision to core competencies and prior achievements - a successful vision is to be credible. It needs to be both challenging and believable. We may, therefore link its ability to solve current problems.
Continually assess and revise the vision - vision is likely to evolve over time. New possibilities may be discovered or some objectives unrealistic. We need to look for ways to make the vision more credible and appealing. Ideas for new vision may be created when things around us are changing.
Collective Learning
To succeed in these turbulent environments, organisations need to have people who are oriented towards learning and innovation. It involves acquiring and using new knowledge to improve the organisation.
Many organisations have divisions dedicated to research and development and some have units dedicated to improving processes. These parts are important for generating knowledge, innovation and improvements. To ensure these ideas are not lost, it is important to continuously assessing them and assess their potential value.
External acquisition of knowledge also exists in organisations. These include publications, books, best practices etc. Consultants and benchmarking activities are rather helpful for acquiring new knowledge and learning.
There is a difference between the exploration and exploitation. Exploration involves finding new innovative products, services, processes, technology whereas exploration is about finding ways of improving existing products, services and processes.
Successful firms are able to develop new products and processes but at the same time deliver the existing ones in an efficient ways. However, too much stress on exploration may result in excessive costs but too much focus on exploitation reduces flexibility and discourage development of new products. Effective leaders will balance the trade-offs.
Knowledge is of little value unless it is distributed to people. Secrecy is the enemy of learning.
One way is to ensure writing procedures is encouraged. These formal doctrines can be very useful. Special-purpose conferences are also often organised. Best practice workshops can help others to learn as well. Some organisations transferring people between units so that they can learn and utilise the knowledge later elsewhere.
Some organisations also learn better then others. Some learn quickly and apply new knowledge very effectively. In those organisations the value of learning and innovation is embedded within the culture. But most organisations fall short on this idea. Top management can help to overcome this obstacle and lead the learning culture among all people. New information systems and communication systems to be implemented to allow knowledge and learning to occur.
Some guidelines for creating conditions for learning and innovation are listed below:
Recruit talented, innovative people and empower them to innovate - leaders can recruit people who have skills and enthusiasm to develop new ideas.
Encourage appreciation for flexibility and innovation - if people have capacity to adapt and learn changes are easier to implement. This can be done through viewing each practice as temporary and evaluate practices periodically to see what can be improved or eliminated. We can encourage people to question assumptions, apply creative ideas and support relevant learning practices.
Encourage and facilitate learning by individuals and teams - with a strong cultural values of learning and development more individuals will learn. Leaders should keep subordinates informed about relevant learning opportunities, available education and training. Tangible rewards can be implemented to acquire new knowledge.
Help people improve their mental models - leaders can influence people's mental models about the ways things are done in the organisation as well the reasons for success and failure. One way of collective learning is to analyse feedback on prior performance. To develop better understanding of performance often requires system thinking.
Evaluate new ideas with small scale experiments - small-scale experiments provide opportunity to try out new ideas without the risks of major change programs. Even a simple experiment can provide useful information.
Encourage learning from surprises and failures - some of the important scientific discoveries resulted from investigating accidents and anomalies. We can use unexpected failures as an opportunity to learn about strategy or process, rather then looking for someone to blame for them.
Encourage and facilitate sharing of knowledge and ideas - this can be encouraged through attending meetings form different units of the organisation and encourage people to share knowledge with others. Often inviting experts or consultants can be helpful.
Preserve past learning and ensure continued use for knowledge - it is important for leaders to ensure that useful knowledge is preserved and relevant practices continue to be used.
Set innovation goals - leaders should encourage employees find time to pursue their ideas for new or improved products and services. A special meeting can be scheduled on a monthly or quarterly basis to discuss ideas and review progress. Goals can also be set for the application of ideas, for example asking for development of new products or ideas.
Reward entrepreneurial behaviour - the employees who develop creative and innovative ideas should be recognised.
Summary
Change often involves a number of different objectives, roles, technology, strategy, resources and people. People generally move through a stages of from denial to acceptance. Understanding these different steps and processes help leaders to guide change to be successful.
Adequate diagnosis of a problem needs to be completed and it should include system thinking, evaluation of relationships and consequences.
When planning change it is important to consider likely denial and resistance as people are more likely to support a radical change if they have a vision of a better future.
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