The success of an organization depends increasingly on its ability to adjust quickly to new situations. New trends, regulations, and fierce competition force companies to make major organizational changes in order to remain competitive. The cost in management time and money is significant. Often, an even higher price is paid in employee morale and failures. Thus companies have successful change leadership.
Too often, the company makes the change too late – after they start losing money, market, and cash flow, and funds for the necessary investment are no longer available. A good leader starts the change when it’s still sunny and the first clouds are far away. Good reasons and timing for change cannot guarantee immunity from pitfalls, such as employee resistance, confusion, and excessive cost.
There are seven aspects of leading change that should be considered if you want success:
Careful Planning
Careful planning saves time and money. Chances for success improve with a well-prepared disclosure and good communication; with careful weighing of potential resistance and its consequences; with a detailed timetable for execution.
Motivation
Employee resistance is often self-defense, and fear of losing security, power, or status. To offset such fears discuss potential new career paths, the necessity and advantages of different positions, the reason for the change; and show appreciation for loyalty. Some employee lack self-confidence and consider and change a threat. 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 id often due to mis-interpretation, half-information, and rumors that precede the change. Easy-to-understand written and verbal communication should reach all levels of the organization.
Involvement
When employees get seriously involved, the situation becomes easier. It’s not “us” and “them” (management). The sooner people are involved in the plan, the more they become involved. Those on board early are supportive and spread the word. This prevents rumors and the build-up of resistance.
Trust
Credibility of management, based on past experience plays a key role. Where trust is lacking, problems multiply. The best remedy is honest information and better communication. These are stepping stones to future trust.
Contingencies
In spite of the best efforts, some resistance may remain. It's far better to anticipate objections than to spend your time putting out fires, and knowing how to overcome resistance to change is a vital part of any change management plan.
Execution
Once everything is prepared and in place, execution should be fast. A D-day must be set to introduce the new organization. Postponement is not recommended, even if there is a last-minute problem.
Over 100 years ago, Benjamin Disraeli, former British Prime Minister, said: “Change is inevitable. In a progressive country change is constant.” The same can be said for business.
Organizational change must be well thought out beforehand. Success depends on communication, motivation, education, and involvement.
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