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To survive and prosper, organizations must continually change.
What might need changing? Well, everything: processes and systems, priorities, people, culture, and so on.
Getting
organizations to change, however, is easier said than done. As for why, there are too many possible reasons to list here. And besides, I am not convinced that understanding the “why” will make change any more likely. Instead,
today’s newsletter takes a look at organizational changes I have experienced and what made them happen.
Start at the Top
That may be obvious, but it is not simple. Some essentials…
-
Having a process in place that
periodically reviews a company’s competitive setting
and that senior leadership, by its actions, demonstrates is important. This can surface changes needed to address threats and opportunities.
-
Getting out of the corner office
. Listen to employees and customers; monitor competitors. This is not about surveys and polls — it means
physically meeting customers and employees
. Remember, the larger the organization, the more filters and processes in place to screen information, particularly regarding the need to change. So
listen to the noise
.
-
If leadership seems numb to the need for change,
than ownership — the Board — must change leadership. Of course, this requires that the Board sees the need to change in the first place. When ownership and senior leadership are one and the same, little can be done unless things get so bad that outsiders enforce contractual rights.
Ensure That Change is Really Needed
Validate the perception that there is a
need for change
. Then…
Get buy-in from employees:
- Involve them in designing the fix.
- Explain why the change is needed.
- Remove those in positions to fight the change who don’t buy in.
Then lead.
As I have written
before
, leadership is getting people to move in a particular direction.
There are three critical steps:
- Communicate a clear vision of where you are going. It is much easier for people to stay on track when they understand what they are working towards.
- Make sure people know what they must get done in order for everyone to reach the goal.
-
Get out in front —
and stay there
— visibly.
Empower Necessary Employees
As discussed in an
earlier newsletter
,
this requires that a number of things are in place:
-
There is a mutual understanding
of the desired goal, objective, or outcome with the person charged with getting something done.
-
The charged person has the
time
to do it.
-
The charged person has or has
access to the resources needed.
-
The organization understands that the charged person has the
authority
to do what they are charged to do.
-
The charged person knows what they can't do without proper
permission or approvals.
Institutionalize the Change
Develop "desktop procedures."
These are the step-by-step details for executing a given process. Think of these as how you would explain the process to somebody who was covering for an employee on vacation. Have the employees who actually execute the process detail, in their own words, how the work is done.
Without desktop procedures, new employees and fill-ins will make
inadvertent, minor changes that can be significant when accumulated over time.
For processes related to repetitive transactions, consider standardizing these desktop procedures across a company or operating group.
Train, train, train.
This can be as simple as having a covering person sit with someone before going on vacation, all the way up to formal training with dedicated staff, programs, and facilities. However it's accomplished, don't shortchange this critical step. After all,
without training, how will employees
really
know how to follow a process or procedure?
Make sure to train future employees, not just the employees at the time of the change.
Training can be about more than just
how
to do something;
it can include how to think and analyze as well.
Many years ago, the first time Kraft Foods was an independent company, all employees in analysis or leadership roles went through training on how to think about, analyze, and communicate solutions to problems. All subsequent new hire and promoted employees went through this training too.
Follow up.
Ensure that policies and procedures are periodically inspected and fine-tuned.
A Real World Example…
Years ago,
I was brought on to consolidate finance and accounting on the East Coast into one central office.
The first week on the job, I learned that my arrival and mission had been announced 18 months earlier. The second week, not surprisingly, I learned that the accounting centers had been losing staff since the announcement. They were crumbling;
I needed to consolidate before the functions collapsed entirely.
There was no time for detailed analysis or planning.
First, I was consistently clear that these operations would be consolidated (the details were a work in progress). I quickly chose the heads of the key consolidated functions and told them to consolidate now, including what to consolidate and what not to. They had carte blanche to hire, travel, and set priorities.
I spent most of my time, not in the new, consolidated office, but on the road
with the general managers and staff whose accounting functions I took over. I listened and learned and flushed out the consolidation plan on the fly. This is not my preferred method of operating, but nine months later, everything was consolidated and working (albeit, not yet smoothly).
And yes,
there was resistance from time to time — I quickly quashed it.
My team showed up at the soon-to-be-extinct New York accounting offices to pick up the files and records. Local staff refused to unlock the storage room. My answer: go buy a drill and drill out the lock. When my team showed up with the drill, out came the keys.
Final Thoughts
Significant organizational change is never easy and the need is rarely obvious.
Often, it is accompanied by confusion, resistance, and backsliding, at least in the short term.
Regardless, change is a constant in all thriving organizations. By applying these concepts to your own circumstances, you will greatly increase your likelihood of success.
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