MANAGEMENT: Change Management in a Changing World

MANAGEMENT

Change Management in a Changing World

Implementing change in your personal life or in your organization is difficult. This article presents how good change management can make the implementation easier. It includes definitions of change management, reasons why change happens, looks at the change process and resistance to change, discusses problems and pitfalls, presents ways to determine desired results, and provides guidelines and suggestions for successful change implementation.

Change is hard for most of us. This includes both personal change and corporate change. It can take us out of our `comfort zone'. To succeed, both kinds of change require the same general process. Yes, there are differences between personal and organizational changes and those differences will affect how we approach change, but the general process is the same.
Both personal and organizational changes are normally made to improve something. At least that is the intent. As a manager you are going to have to implement changes at some time in your professional career. You may be trying to make changes that you want to see made or it may be changes that are directed by others. You may be making personal changes, such as changing your management style to better connect with or raise the productivity of your people. You may be implementing organizational changes such as a new internal structure or a change in the hiring policy. You need to know how to manage change in a way that will give you the best chance at success.
Change is going to happen whether people want it or not. It may come because of either internal or external forces. It is going to happen. Change is necessary to prevent stagnation or loss of competitive edge. It will happen even if people fight it. When the time for change comes, we need to analyze the changes needed (or happening), plan for them, and make them happen in the easiest way for people to accept. Before getting into the process though, there are some things to consider.

Definitions

There are two definitions of change management. Both refer to the task of managing change. First, there are changes implemented within the organization – making of changes in a planned or systematic fashion. The aim here is to more effectively implement new methods, processes, technology and systems in an organization or project. The changes to be managed lie within the control of the organization. A familiar and common instance of this type of change is a version update of a software development project. Another example would be a process change to improve productivity in some area. The second type are changes that occur (usually because of the outside environment) and must be reacted to _ response to changes over which the organization has little or no control (e.g., legislation, social and political changes, or a competitor's actions).
Both types of changes are common in business and both need managing or they can get out of control quickly. This article will provide some ideas and warnings that may help. This is only an introduction, as there are volumes written on change management.

Why Change?

There are almost as many reasons for change as there are ways to change. This section will take a quick look at personal change and then move on to organizational change. While the information in the rest of the article applies to both types of changes, the primary focus is on organizational change.

Personal Changes

When it comes to personal change, most of us change for one of three reasons: (1) We change to please ourselves, (2) We change to please others, or (3) We have to change because of some external (or internal, in the case of health) reason(s). None of the three lead to changes that are necessarily easy.
When I say that we change to please ourselves, there are a number of nuances to the statement. We may be changing to improve our lifestyle; the change may be to improve something, such as training to develop a new skill or improve an old one. It may be to lose a bad habit or correct a personality `flaw' that is getting in the way of success. It may be to develop or improve your own management style or technique. The change can have its genesis in any of a number of causes. Whatever the change is, it is a personal decision and is normally made to improve something about ourselves.
Changing to please someone else can be based on any of the same reasons as changing to please yourself, but it normally begins with a suggestion from someone else. That suggestion may be blatant or very subtle. All of us who have a spouse or a significant other have been through that scenario many times. The suggestion may also come from your boss, a co-worker or even a subordinate. It may be generated by a friend's comment. Whatever the basis, you make the decision to change so that you please another and/or correct some flaw that they point out. It also may please you, but the initial idea is to please someone else. Again, the change is made for some type of improvement.
Finally, you may change because you have to. It may be a new job, new duties, a change in corporate vision, mission or culture, or just a new boss who wants things done differently. It could be a new technology or a new process. It could be medically or stress-related. Again, there can be any number of reasons, but the bottom line is that you are changing because you have no choice. It is `forced' on you in some way. These can be the hardest changes to make because you do not necessarily accept the need for change. As a manager, this also may be the kind of change that you implement on others.

Organizational Changes

One could summarize the answer to `Why change?' for organizations or companies by saying that with changing technology, a different kind of workforce (older workers retiring and being replaced by younger workers with a different mindset), uncertain funding, competition, and everything going on in the world today (wars, economics, politics, etc.) we have to change. But there is more to it than that. We also need to change for increased productivity, efficiency and profitability _ better management, improved processes, more automation, contracting changes, revised requirements and so on.
Planning, implementing and managing change in a fast-changing environment is the situation in which most managers must now work. At the same time the corporate culture may be highly structured and resistant to change. Dynamic environments require dynamic processes, people, systems and culture. At the same time, if that culture is hierarchal, structured and change adverse, it can be difficult to institute meaningful changes. This is especially true for effectively managing change to successfully respond to opportunities and threats. If we do not change, we run the risk of growing stagnant and unproductive in the way that we run our organizations and companies (and there is too much of that, already). In other words, we fall behind _ and in today's fast paced and competitive environment, organizations and companies cannot afford that. For simplicity, from this point on, the term `organization' is used for all types of groups working toward a single purpose, whether it is a company, political group, non-profit organization or any other group.

Goals, Objectives and Standards

Too many organizations go for activity-centered changes when they should be looking at other changes. Management is convinced that if they carry out enough of the `right' change or improvement activities, actual performance results will automatically flow. Some of these `right' improvement activities include: collaboration, empowerment (managerial and employee), process benchmarking, customer satisfaction surveys, and other similar techniques. Do not get me wrong, I am a supporter of all of these activities, but without setting specific goals, objectives and standards, there may not be measurable results or any performance results at all, for that matter. Determine the results needed, then look at what changes will help make those results or goals possible. While activity-centered changes are good for the organization in many ways, their results frequently are intangible.
The goals and objectives that you set as part of the change process must be achievable, quantifiable, and measurable. They have to be specific. They cannot be too broad. There should not be too many goals at once. In the beginning of organizational change, go for the `low hanging fruit'. These are the successes that are easiest to achieve. Success breeds success. If people can see that a change has made a difference; now something is easier, better, or more profitable, they are more willing to make other changes. They have seen how a change can have something in it for them.
If goals are too broad or there are too many of them, people can get discouraged and give up before achieving anything. That is why the results need to be specific and narrowly defined.
Standards describe the minimum level of performance and quality that you are prepared to accept. It is important to understand the difference between a goal and a standard. Goals and objectives are what you aspire toward; they are targets. Sometimes, however, the change that you implement may just be in the standard that you set. Raising the standard, or minimum level of acceptance for something means that you, as the manager, and them, as the employees, will simply not tolerate anything less.
When you make a change, especially in standards, you may have to change your limiting beliefs and those of your people. If you raise your standards, but people do not really believe the new standards can be met, the chance of success has already been sabotaged. Beliefs are like unquestioned commands telling us how things are. Our beliefs tell us what is possible and what is not possible, what we can and cannot do. They set the boundaries that we are willing to accept. They shape every action, every thought and every feeling that we experience. This means that changing the belief systems is central to making any real and lasting change. That requires work and communication. Again, the `what is in it for me' can help set or change those limiting beliefs.

Resistance to Change

Most of us are about as eager to be changed as we were to be born, and go through our changes in a similar state of shock.

-- James Baldwin

Strong resistance to change is often rooted in deeply conditioned or historically reinforced feelings. Patience and tolerance (and sometimes creativity) are required to help people in these situations to see things differently. Certain types of people—the reliable/dependable/steady/habitual/process-oriented types—often find change very unsettling. There are exceptions, of course, but many changes are met with the attitude of "Something will happen and I really won't have to change." Resistance to change is aggravated because many people have seen changes for intended improvement come and go with little to show for it. They have also seen changes that do not make sense or make their jobs more difficult.
A frequent reaction is "we've always done it that way and it's worked. So why change it?" Another common comment is "If it ain't broke, don't mess with it." When people are confronted with the need or opportunity to change, especially when it's forced on them with little or no explanation or what is in it for them, they become emotional and recalcitrant. They resist the change, either actively or passively and aggressively. The managers who are required to manage the change sometime fall into that mindset, too.
Some of that may be changing. Today's workforce is adding more young people – and they want to see change. More work is being outsourced and contractors (from a profit motive, if nothing else) are implementing changes. Because of changing technology, some organizations have had no choice but to change the way that they do business. Successful change requires that people buy into it. That is your job as a manager – ensuring the buy in. Luckily, in some fields (IT is a good example) people are more used to change and sometimes are less resistant. Because of rapidly changing technology, some organizations have had no choice but to change the way that they do business or watch profits fall. Workers know that if profits fall, they may lose their jobs.

Tactics, Strategies and Suggestions

Organizations are first and foremost social systems made up of individuals and groups. Without people, organizations cannot exist. Ignore people and how they react, and any changes are guaranteed to fail. Organizations are intensely political at all levels. As an anonymous person once said, "the lower the stakes, the more intense the politics." That describes change at the project level. People's turf is being tread upon. Change agents have to understand this. Plan and communicate. Let people know about the change, why it is happening and why it is good. In other words, what's in it for the workers. Show them the positives, the benefits.
Participative involvement from others at all levels is a big help for each step in organizational change. Without that participation and involvement, there will be more resistance to the change. Having people from all levels involved, brings in multiple perspectives, identifies unexpected problems, and can generate innovative ideas and solutions. It also creates some of the buy in that is necessary to overcome resistance and make changes succeed. The participants become the seeds of the change movement in their level of the organization. One useful framework to think about the change process is to consider it as a problem-solving process. Managing change can be seen as moving from one state to another; specifically, from the problem state to the solved state. Diagnosis or problem analysis is essential. Figure out what is wrong and how it should be. Discuss with others how to approach it. Set goals. Plan carefully and obtain buy-in, support and commitment at all levels. This is the communication that is always necessary. Then move forward. The net effect is a transition from one state to another in a planned, orderly fashion.
Here are four types of strategies as identified by Fred Nickols, a noted expert in change management, in his article "Change Management 101: A Primer". They are in, what I consider descending order of probability of success. However, any or all will work depending on the circumstances.
Empirical-Rational: People are rational and will follow their self-interest _ once it is revealed to them. Change is based on the communication of information and the proffering of incentives.
Normative-Re-educative: People are social beings and will adhere to cultural norms and values. Change is based on redefining and reinterpreting existing norms and values, and developing commitments to new ones.
Power-Coercive: People are basically compliant and will generally do what they are told or can be made to do. Change is based on the exercise of authority and the imposition of sanctions.
Environmental-Adaptive: People oppose loss and disruption but they adapt readily to new circumstances. Change is based on building a new organization and gradually transferring people from the old one to the new one.
He goes on to talk about how to select the right strategy. Which of the strategies to use is a decision affected by a number of factors. Some of the more important ones follow.
• Degree of Resistance: Strong resistance argues for a coupling of power-coercive and environmental-adaptive strategies. Weak resistance or concurrence argues for a combination of empirical-rational and normative-re-educative strategies.
• Target Population: Large populations argue for a mix of all four strategies, something for everyone so to speak.
• The Stakes: High stakes argue for a mix of all four strategies. When the stakes are high, nothing can be left to chance.
• The Time Frame: Short time frames argue for a power-coercive strategy. Longer time frames argue for a mix of empirical-rational, normative-re-educative, and environmental-adaptive strategies.
• Expertise: Having available adequate expertise at making change argues for some mix of the strategies outlined above. Not having it available argues for reliance on the power-coercive strategy.
• Dependency: This is a classic double-edged sword. If the organization is dependent on its people, management's ability to command or demand is limited. Conversely, if people are dependent upon the organization, their ability to oppose or resist is limited. (Mutual dependency almost always signals a requirement for some level of negotiation.)
For those in search of a checklist for change management, there is no one best way to implement change. We can learn from the experiences of others, though. A change expert, Todd Jick provides a tentative list of suggestions that includes the following steps (adapted and expanded by yours truly, though):
• Analyze the organization and its need for change: Look at the organization's, department's, office's, or project's history of changes (successes and failures) and patterns of resistance. Analyze the forces for and against change. What will help and what will hurt.
• Create a shared vision and common direction: This should reflect the values of the organization and incorporate those from the top management down to the individual level. The vision should include the rationale, the benefits, and personal ramifications (the `what's in it for me' mentioned earlier).
• Develop a Non-threatening and Preferably Participative Implementation Process: Present the plans to those involved and make information readily available. Try to have people from all levels involved. Explain the benefits for end users. Start small and simple if the changes are large and significant; go for quick wins (the `low hanging fruit'). Publicize the successes.
• Separate from the Past: Create a sense of urgency.
• Support a Strong Leader Role: The change advocate role is critical to create a vision, motivate people to embrace that vision and craft a structure to recognize those who strive toward realization of the vision. Usually, this falls on the manager, but hopefully he will bring in others to help.
• Line Up Political Sponsorship: Broad-based support is important (both formal and informal support). Identify and target individuals and groups whose support is needed. This includes those in upper management and the formal and informal leaders at all levels. Define the critical mass of support needed and identify where each key player is on the continuum (use such descriptors as `no commitment', `may let it happen', `help it happen', `make it happen'). Work to get them all on the side of the change.
• Craft an Implementation Plan: This plan maps out the effort. It identifies what is changing and how. It does not have to be a formal document, but it helps top lay it out in writing.
• Develop Enabling Structures: Examples might include pilot tests of the change, off-site workshops, training programs, or even symbolic changes like redesigned workspaces. Do whatever might help. Sometimes, especially for minor changes, just an explanation of the new process (or whatever the change) will be all that is needed.
• Communicate: Involve people and be honest with them. Not every change effort calls for full involvement, communication and disclosure, but most do. Where possible there should be meaningful dialogue that gives people a stake in the change. This is possibly the most important step for success.
• Ownership: Try to develop a sense of ownership in those involved. If they feel like they have some ownership, they will strive to make the change a success. It is a part of communication.
• Reinforce and Institutionalize the Change: It is important to reinforce the change. Reward or recognize those who take risks and incorporate the new behavior. Do not allow people to slip back into the old ways. Acknowledge their hard work and thank them for their support.

Problems and Pitfalls

Let us look now at the dark side of change management. Even in the fields where change is relatively accepted, it may not be easy to implement any significant change. Organizations just are not prepared for major changes or even minor ones in some cases. If you do not understand and plan for the difficulties, the change implementation may fail.

Warning

No matter how much thought has gone into the effort, there may be unforeseen impacts. One of those may be unintended consequences _ those results that were not planned for. Keep that in mind and try to look at the immediate and long-term consequences, good and bad. Do not blind yourself to risks just because the positives are so strong.
This is not meant to scare people away from trying to institute changes. It is just a warning that it will not always be easy. You normally cannot just say the magic words and the change is in place with the wonderful results that were expected, although sometimes it is just that easy because people see the need and the benefits.
One recent study identified the problems that a majority of organizations experienced when they were implementing major changes.
• More time than allocated or expected.
• Unforeseen problems surfaced.
• Coordination was ineffective.
• Competing crises distracted attention.
• Insufficient capabilities and skills of those involved in the implementation.
• Inadequate training was given.
• Uncontrollable external factors had a major adverse impact.
• Inadequate support for change.
• Failure to define expectations and goals clearly.
• Failure to involve all those who will be affected by change.
Most can be avoided though, by using the suggestions and guidelines above.
Conclusion
This article does not intend to say that successful change is impossible. It is very possible. It just takes work and planning. Change is hard on everyone – but it is going to happen. In many cases it has to happen to prevent stagnation being passed by competitors, inefficiency and low productivity. It is best approached through thorough analysis, good planning, large doses of communication and conscientious implementation. Also, you must expect the unexpected. So, figure out what changes are needed and move forward with them.

-- Wayne Turk
Independent Management
and Project Management Consultant,
Suss Consulting, Pennsylvania, US.
The author can be reached at rwturk@aol.com