How to manage organisational change effectively

 

Managers must decide when and how the transformation will be effected and how success will be judged. PHOTO | FILE 

By ODINDI WERE

In Summary

• Transformation involving strategy shift will require revision of mission and core values.

We have to change the way we do things” is a common statement by corporate managers. Often though, this implies a desired flow or is a proclamation not backed by serious and in-depth thought as to what is necessary for the change process to succeed.

If an organisation decides to embark on a change programme, managers must decide when and how the transformation will be effected and how success will be judged.

They need to recognise that change is a continuous process with several events taking place and sometimes overlapping.

Organisations need to create a felt need among participants for them to be ready for change. People in the firm need to be dissatisfied enough with the current situation for them to feel the need for alternatives.

One of the ways of creating this need is by giving employees full information in a way that they understand. Employees need to be informed on the current performance of the company, the reasons for such performance and where improvements are necessary.

The communication about change need to be positive so that employees see the benefits for doing things differently. The expectations about the outcome of change need to be realistic and achievable.

Depending on the company culture and tradition, it may be crucial to involve employees in the change process to gain desired support. Ensuring employee participation will depend on the level of trust and frankness.

Misgivings about some elements of change, especially the ones put across by employees, should openly be discussed.

Whether change can be driven more successfully by insiders or external or new managers is debatable. Ordinarily, serious change will be carried out by new executives.

They come to a company with a new mission and energy to overcome any prevailing inertia. They constantly challenge conventional wisdom and stimulate the dynamic exchange of ideas.

They come with fresh ideas, enhanced skills, personal drives and new perspectives. Also, they are not tied to company’s emotions from the past.

Any transformational change involving strategy shift will require revision of a firm’s mission and core values. The vision may stay the same.

A mission statement lays out the core values and the guiding principles that the company will use in the conduct of its business. Core values dictate how a firm competes and what it considers important in its business relationship.

Power struggles

Any change process will be met by some degree of resistance. Principally, managers and employees view change differently.

Top managers see change as an opportunity to strengthen the business by aligning operations with strategy. Employees and some middle level managers, however, see change as disruptive and intrusive.

This emanates from fear of potential losses – of friends and important contacts, pride and satisfaction, good working conditions, security, authority and influence.

Introducing change will bring power struggles. There will be non-conformists who will refuse to participate in the change and try as much as possible undermine the leader.

The champion of change should build coalitions by assembling backers of the new proposals. He should also think about the power holders and the stake holders.

Power holders have access to information, resources and influence. They include the board of directors and management. No matter how beneficial the change proposals are, they still need the blessing and authority of the board.

Stakeholders are many and varied. The more organised they are as a group, the more influence they have. A trade union is an example of organised stakeholder group.

During the change process for example, consult the union leadership with a view to anticipating the level of resistance.

If strong resistance from trade unions is anticipated, the company may decide to use a bottom-up approach to manage change. This involves delegating responsibility for change to line managers since often times they will be in direct contact with the union officials and leadership.

During the period of change an organisation’s life goes on. There will be no break and managers must find ways of handling the transition.

New structures and activities need to be introduced. The firm must identify specific activities and events that must occur for a smooth transition. Also, specific key people should be identified to help drive enthusiasm and commitment to the process.

Enthusiasm will be ensured by providing time and opportunity for employees to express their fears and ideas, providing sufficient resources needed, providing emotional support for those in charge and supporting staff so that they are able to cope with new working practices.

A major issue is to assign accountability and responsibilities. There must be guided structures as to who is in charge of what.

The role of managing change is likely to be given to a team. A senior executive or a team of senior executives will manage the process.

A project champion will support the senior executive team and inform them of progress. The project champion will be part of the steering committee, which will be made of people with varying professional backgrounds, but sometimes simply representatives of stakeholders.

A steering committee allows you to tap multiple sources of ideas, knowledge and varied experiences. The committee allocates activities to task forces.

Whatever structure is adopted, the reporting channels and extent of responsibility should be clear.

Also, determine whether the desired change should be radical or incremental. Changes that are incremental require less management because employees are asked to make smaller jumps.

Radical changes require more because the status quo and the comfort that come with it are left far behind.

These two types of change require different levels and kinds of support, training and communication plans. They also meet different strengths of resistance hence require different resistance management approaches.

Since change management is a continuous process, companies need to identify what has been achieved and what has been learned. An after-action review is necessary to correct deviations with a view to extracting maximum benefit from the change programme.

Mr Were is a consultant with Anchorage Ltd, a financial and business advisory firm. E-mail: odindiwere@anchorage.co.ke