There was an article published in the Harvard Business Review Blog Network about six months ago titled Change Management Needs to Change. Lately everybody seems to have a new concept of change management, but most are only changing the name to “transformation†or calling it modification or alteration. This article hits the nail on the head: The problem is not with change management, it is with the managers of change. After 50 years and countless books on tools, training and processes “… most studies show a 60-70% failure rate for organizational change projects.†I can still hear a former mentor and organizational development expert discussing the organizational problems with a group that was badly managed and out of control. “The only way to fix it is to blow it up and start over!†He was right about that organization and added another dimension to my understanding of how change works.
Change management is only effective when there is an end point that defines success that is not a dead end going nowhere.
- Organizational Change – When the strategic direction of a company shifts, the stakeholders need to see the organization’s structure and goals match their interests. Most organizational change involves some change in the basic structure of how functions are wired together to accomplish the mission. There must be a common framework shared between units and quite frankly almost any of the tools will work if there is leadership and accountability for the results. The infrastructure must be designed to be complimentary and cooperative.
- Procedural Change – The processes, procedures, and rules of engagement operating within the established structure may be at fault if accomplishing routine tasks becomes a complex and troublesome affair. Automation of certain processes or setting up virtual workplaces can solve problems and help to keep employees productive and engaged. Antiquated systems may need to be replaced and off-the-shelf packages are usually not a good one-size-fits all solution for any company. Tweaking processes requires knowledgeable management and executive sponsorship.
- People Changes – When processes are people-centered they require training and feedback to succeed. Change requires expertise and where no experts exist they must be created. Measures of effectiveness must be communicated to the entire organization from top to bottom. Incentives to provide pride in accomplishment and pride in the organization usually are generated at the top and filter down through the ranks, but cultures that recognize the value of ideas from the rank-and-file will see better results.
- Radical Change – The “blow it up and start over†paradigm is a last resort in most cases, but wasting resources to fix the unfixable results in frustrated management and probably an overall unit failure. If the organizational framework, the systems and procedures, and the workforce are all wrong, drastic measures may have to be taken to accomplish the intended goals. If piecework change is not possible, rebuilding may be the only answer. When Band-Aids used to patch the enterprise are not effective, major surgery may be the only answer.
A necessary quality of leadership is to be able to recognize the elements of change, the degree of required change, the ability to execute the change, and the knowledge of when it can’t be changed.
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