The success of
an organization depends more and more on how fast it can adjust to new
conditions and situations, to new and different demands. New technologies,
trends, regulations, changes in style, and fierce competition force companies
to make major changes in order to remain competitive.
The faster the
change, the more important employee participation becomes, as well as getting
the best use of people’s talent. In a less stable business climate, when
innovation is forced upon even the most conservative organizations, employee
participation – bringing fresh ideas and creative improvements in process or
work practices – is indispensable. Where
routine response does not exist, people cannot be replaced by machines.
Equally
important is the timing of major organizational changes. Timing reflects on the
vision of the leader. Oftentimes, a company makes changes too late - after the
company starts losing money and market position, when cash flow and funds for
the necessary investments are no longer available. A good leader begins change
when it is still sunny, and the first clouds are far away.
There
are seven considerations that can help make major organizational changes a
success.
- Planning
Careful planning saves time and money.
Chances for success improve with:
·
A
well prepared disclosure and good communication.
·
Careful
weighing of potential resistance and its consequences.
·
A
detailed timetable for execution.
- Motivation
Employee resistance is often in self-defense to
the fear of losing security, power, or status. To offset such resistance:
·
Discuss
potential new career paths within the company.
·
Discuss
the necessity and advantages of a different position.
·
Give
the reasons for the change.
·
Show
appreciation for loyalty.
Some employees who lack self-confidence
consider any change a threat. They are afraid to cope with new
responsibilities, another boss, or different colleagues. Patience is needed to
explain and convince. Teaching, training, and full support are good remedies.
- Communication
Good communication is vital. Reasons for the
change must be explained beforehand. Clear communication is the best
investment, since resistance is often due to misinterpretations, half-truths,
and rumors that recede the change. Easy to understand written and verbal
communication should reach all layers of the company.
- Involvement
Employee involvement prevents mistakes and
wrong assessments, as well as expensive consequences. Those affected by the
change can usually provide the best insight, but their objectivity must be
scrutinized.
The sooner people are involved in the plan,
the more involved they become. Employee involvement during the planning stage
has two advantages:
1.
Learning
from the experience of people on the job. Early employee involvement improves
the plan. Those who come aboard early support the plan and spread the word,
preventing rumors. And the build-up of resistance.
2.
When
people get seriously involved everything becomes easier. It is no longer an “Us
and Them” scenario. A well justified change becomes every body’s project, not
just management’s. The motto is “We, the company, will benefit from the
change.”
- Trust
Another great facilitator of change is trust.
Credibility of management, based on past experience plays a key role. Where
trust is lacking problems will multiply. The best remedy is honest information
and better communication; these are stepping stones in developing trust.
- Contingencies
In spite of your best efforts, some
resistance may remain. If the problem is wage loss, then negotiation is
necessary. In some situations, leaders of the resistance and their motivations
have to be identified. If direct communication does not resolve the problem,
negotiation and cooperation must be pursued.
- Execution
Once everything is prepared and in place,
execution should be fast. An implementation date must be set to introduce the
new organization. Even if there is a last minute problem, postponement is not
recommended.
Coherence
of management and trust in leadership eliminate opposition, and ease the way to
permanent ongoing renewal.
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