Managing Change
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Managing Change

Definition

Managing change means co-ordinating a number of activities and inter-relationships so that the organization can survive, and benefit from, the process of change. A major challenge is to achieve the right balance between the short-term pressure for change and longer-term corporate goals.

Change is inherent in contemporary organizational experience, and its management is not only critical to organizational success and survival but is also at the crux of the field of organization development.

Knowledge of the fundamental aspects of change is defined in terms of a person's understanding of individual responses to change and the general nature of change. Knowledge of the change process is determined by a person's understanding of three key processes: planning change, managing change (both the "people" side and the "organization" side) and evaluating change. It should be noted that each dimension builds on those below it; in other words, knowledge of the fundamental aspects of change is critical to the process of planning, managing and evaluating change.


The Issues

We live at a time when organizations are constantly changing and success is now determined by how well the changes are implemented and whether the desired gains can be achieved. This success is a direct result of knowing how to identify obstacles, assess resistance, plan for action, build commitment, and rapidly make adjustments. The skills for managing change are essential components in the organization’s survival kit.

The most pertinent issue found with companies attempting to transform philosophies or processes is the lack of substantial progress. Quite often companies will start new programs with zeal and enthusiasm, and find over time that not much is happening. Programs can be subjected to perpetual delays, excuses, distractions, loss of focus, loss of energy and loss of momentum.

There are three major reasons for why companies get bogged down or fail in implementing new programs. (1) Lack of Strategic Commitment, (2) Inadequate Resources, and (3) Resistance to Change.

First, the program must be part of the strategic plan to get the proper visibility. if top management does not provide strong and consistent support, most likely one of these three elements (money, resources, or leadership) will not be present over the life of the program, severely crippling chances for success. Top management in the "line" organization and "staff" organizations must partner or those accountable for business performance will "sabotage" or ignore the effort. Change in an organization rarely succeeds without top management support in the line organization.

Second, many companies will attempt to "save dollars" by doing everything themselves, whether or not there are adequate skills within the company. This approach can be a "kiss of death" for the program. Time and time again we run across this mistake in ERP implementations. People burn out after having put in extensive hours over a long period of time.

Third, the lack of a change management approach as part of the program can prevent a program from succeeding. Resistance to change is quite often caused by (1) A failure to build a case for change, (2) Lack of involvement by those responsible for working with changed processes (3) Inadequate communication (4) Lack of visible top management support and commitment, and (5) Arrogance.


Pragmatic Applications

Here are the elements we have found over the years to be characteristic of companies who have successfully managed the change process:

Strong Leadership

The CEO drives the change process, leading the company to greater heights. There is no substitute for a strong leader. He sets the direction, and the priorities.

Consensus At The Top

The CEO and first reports agree wholeheartedly on the need for dramatic change, and all work together in defining the vision and the resources required for success. Teamsmanship is real, not feigned. Contributions are sincere, not politicized.

A Shared Vision

A well articulated vision of where the company will be in three to five years, expressed in specific performance outcomes, cascades throughout the company. Every employee has personal objectives that tie to the vision. Each has a direct effect on the outcome, and a well-defined personal stake in achieving the vision.

The Right Attitude

Hidden personal agendas in top and middle management are cast aside to make room for a major collective effort. The theme is "get on board, or get out of the way." Those who block the effort are quickly disposed.

Commitment To See It Through

Plans do not get derailed at the signs of resistance or difficulty. Solutions to problems are found and implemented. If something doesn't work, something else is tried.

High Employee Involvement

All employees participate heavily in achieving team-based performance objectives. Individualism is not lost in the team environment, but reinforced. Problems are diagnosed and solved through teams that run their own operation. All participate in continuously improving personal, team, and organization performance. The focus is on quality, cost, delivery, and customer satisfaction.

Permanently Empowered Employees

Decisions are driven downward to the team level on a permanent basis, not a special project or temporary basis. Layers of management that get in the way of fast decisions are removed, and accountability rests with the team. Team leaders provide direction, priorities, and facilitation to the team. Teams evolve to self-management.

A Comprehensive and Systematic Approach

A comprehensive master plan is created that addresses key integrated leverage areas: culture, reward systems, strategy, process, structure, and staffing/skills. All leverage areas are linked and the plan is structured in manageable phases. The process is continuous.

Lots of Guts

A willingness to take risks and attack sacred cows to achieve substantial results is prevalent. The focus is longer term, replacing the monthly P&L as the driver for everyday operations. Problems are anticipated and directly addressed.

Continuous Catalytic Activity at The CEO Level

Executives realize they do not have the objectivity, skills and experience to enact radical change. External, objective, apolitical, and experienced catalysts and consultants are used to help navigate, find direction, and implement plans.

Trustworthy Communications Top Down/Bottom Up

The CEO and first reports continuously, repetitively, and consistently meet with all groups for two-way communications. The CEO is highly visible to all. Weekly or bi-weekly employee exchanges take place. Fears are addressed. Truth and honesty prevails.

Ownership Of Change By a Vast Majority of Employees

High employee involvement in problem solving, finding solutions, and implementing them creates authorship and ownership of the process. Peer pressure makes things happen. Employees are trained and learn new skills. Motivation is provided by the vision, strong leadership, team involvement, and reward systems that reflect achievement of the vision.

Financial Resources

Equipment and staffing is provided as part of the master plan. Substantial investments are made to reduce non-value added time on the shop floor and in the office. Cost/benefit analyses identify the results that will be achieved.

Extensive Education & Training at all Levels

Most employees, including upper and middle management, have been conditioned over the years to be individuals and stars. Our society teaches this. They simply don't know how to behave as team members should. Courses in dealing with personality differences, team building, stress management, conflict management, and many others can go a long way in getting people to work cohesively. In addition, courses in process mapping, set-up reductions, statistical process control, etc., can provide the techniques for re-engineering the processes.


Our Approach: Tools from a Toolchest

Rockford Consulting Group applies concepts and technologies as the situation warrants, that will result in the ultimate benefit to our clients. We treat strategies, technologies, and methodologies as tools in a toolchest, and use them when they offer practical solutions and achievable results. We believe that each client situation is unique, with its own unique set of solutions. Please see our organization culture change clinic(click here)


Why Us?

Rockford Consulting Group can provide long-term assistance to many companies in a variety of industries. The firm has a cadre of the best management consultants in the world today, providing high quality professionalism through the use of experience and innovation.

We subscribe to the Institute of Management Consultants Code of Professional Conduct. All consultants engaged on projects adhere to its principles. Whenever possible we will use consultants certified in their particular specialty area. Certification assures that consultants have substantial prior experience in their specialty, and their competencies have been tested by the IMC, and verified by a number of clients. This assures our clients that we are assigning the highest qualified consultants in the profession.

We provide technical expertise, team facilitation, leadership, and direction in deciding how you will meet the challenge. We refer you to our Qualification Statement for further details on our background, areas of specialization, concepts and technologies applied, staffing, operating policy, approach, companies and industries served, case studies and references. Equally as important, we train our clients to sustain new methods of manufacturing and the consequential benefits over time. Your company will benefit directly from this training.

We have achieved an efficiency in our approach to assignments that allows us to provide high quality technical and managerial advice in a much shorter amount of time than could be accomplished years ago. We are able to do this because of the extensive consulting experience that each of our specialists has.

©1999 Rockford Consulting Group, Ltd.

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