Five Factors for Managing Productive Change

For virtually everyone change means hard work, risk, and the need to learn new ways for unproven benefits. Change is one of the most difficult things for humans to readily accept. Charles Darwin said, “It is not the strongest species that survive, nor the most intelligent, but the ones who are most responsive to change” which holds true for culture change.

Fortunately, there is a formula that provides insight into how to successfully facilitate change:

Where:

V = Vision: How you would like things to be in the future, this is the “True North” thinking.

S = Skills: Learn the skills necessary to facilitate the change. Find a change agent. Understand and disseminate the lean knowledge.

I = Incentive: Communicate the why and how of the vision to inspire people to want to try to achieve it. As you gain momentum you need to expand your scope. Apply strategy deployment (Hoshin Kanri) to facilitate horizontal and vertical alignment.

R = Resources: Change cannot occur unless the proper resources (like time and tools) are provided. Dedicate time and allocate budget necessary to focus on process improvement and implement suggestions for improvement. 

AP = Action Plan: Actions and strategies needed to move the organization toward the vision. It is important to begin as soon as possible with visible activity. Often, a great start is to identify and map your value streams.

All these elements are needed for a productive change. If an element is missing you won’t get change but rather something short of that as shown below:

When you lack the vision part of this five-factor model, you create confusion for people throughout the organization.

When you lack the skills part of this five-factor model, you create anxiety for people throughout the organization.

When you lack the incentives part of this five-factor model, you create resistance throughout the organization.

When you lack the resources part of this five-factor model, you create frustration throughout the organization.

If you lack the action plan part of this five-factor model, you create false starts throughout the organization.

To ensure a successful change it is necessary to use influence and strategic thinking in order to create vision and identify those crucial, early steps towards it. In addition, the organization must recognize and accept the dissatisfaction that exists by listening to the employee voice while sharing industry trends, leadership ideas, best practices and competitor analysis to identify the necessity for change.

There is no quick solution for creating a lean culture. You will only succeed if you have a clear vision, the necessary skills, motivated employees, vital resources, and a solid action plan.

8 Common Reasons Organizational Change Fails

It happens time and again. I’m sure you’ve either witnessed it or suffered through it — the failed attempt of a large change at an organization. Maybe it was with a new process or switching over to a new technology. Maybe it was a change to the structure or the metrics. Whatever it was, it was difficult and painful for everyone involved. The people who were impacted by it will not soon forget. If you were the one that was trying to implement the change, the tinge of failure is salt in the wound after all your hard work. All your dedication and efforts to try and make a great improvement — and for what?

If this has happened to you, it’s time to do some reflecting to ensure this doesn’t happen again. Allow yourself to be brutally honest and analytical. If you haven’t yet, ask for feedback. This is incredibly important because, with each failure, the inertia of change grows. People may be less willing to buy in as they lose trust in the ability to change. And while the result isn’t always so bleak, if you’re not learning from your failures, then you’re doing yourself (and those around you) a major disservice.

Here are some of the top reasons I’ve seen initiatives fail time and again.

1. Poor Planning for Change

Often, leaders are so focused on getting their results that they dive right into the solution phase of organizational change without adequately doing the upfront planning work required. This sets the effort up for failure right from the start. Instead, identify all the conditions and activities that must occur early to set the project up for success, like: 1) change roles, governance and decision-making, 2) stakeholder engagement strategy and communications, 3) timeline, resources and capacity, and 4) key initiatives and how to integrate them for maximum speed and efficiency. Without a well-designed change process plan, a likely outcome will be a false start, resistance, and/or eventual failure.

2. Inadequate Support from Leadership

Organizational change does not succeed without leadership support. And lip service is not enough. Leaders must champion and model the change for the rest of the organization, in both what they say and do. They must be active, consistently supporting the change teams as they design and implement changes. They must be out communicating the benefits of the change to stakeholders and listening to and responding to their concerns. If your leaders are not prepared to stay actively involved, perhaps it isn’t the right time for them to launch a major change effort. Unsuccessful change initiatives often have executives who describe the desired outcome of the change project but do not instruct managers on how to implement it.

3. Lack of Resources

Lack of resources is one of the most common reasons why organizational change fails in most organizations. Adoption and sustainment of change are long term investments. They don’t occur just because an awesome solution was designed. It has to get implemented, and then tested, refined, and reinforced. This generally is a longer, and costlier endeavor than most change leaders realize. If you don’t plan and resource the latter phases of change, you’ll not realize the full benefits you set out to achieve.

4. Priority Focus on Systems vs. People

Leaders often focus more on the system changes than the people that have to make and live with them. Don’t forget that while you need to have systems in place, it’s the people who matter most. Too many transformation initiatives fail to focus on the development of the capabilities required for people to be successful in the new organization. This is a mistake for two reasons. First, organizational transformation always alters the nature of “the work” that must be done. Second, one of the biggest reasons people resist change is the fear that they won’t be able to be successful in the new organization, that “what got them here won’t get them there.” So, an upfront commitment to investing in helping people be successful reduces resistance.

Be sure that your leaders equally prioritize and attend to the system changes AND the people.

5. Inadequate Change Leadership Skills

One could easily argue that this is the #1 cause of failed organizational change. Why? Because every issue or problem within a given change initiative either gets prevented, solved, or caused by the skill of the change leaders in charge. And the truth is, we don’t adequately train our leaders to become competent change leaders. Leadership development is a part of virtually all large organizations but change leadership development is sorely missing. The net is that leaders tend to run change initiatives like they run their organizations, and the two are vastly different.

6. One Way Communication

Change leaders often make mistake by having one-way communication with employees and other stakeholders. They fail to engage their employees.

Change doesn’t happen when message is only coming from top. If organizational culture fails to exchange ideas and share experience, then it’s hard to implement transformative change. People learn by acquiring and applying the information and not just by absorbing it.

7. Lack of Effective Monitoring

It’s very crucial to check on progress being made on implementation of change. So an effective and efficient monitoring system is required to track progress on change. When organizations lack effective monitoring mechanisms, they actually put their change initiative at risk.

A good monitoring mechanism doesn’t mean identifying problems but taking corrective actions and finding solutions. Monitoring provides valuable information and insights about what is working and what is not. And many a times this kind of monitoring system is missing in change initiatives and organizations have to pay heavy price for this.

8. Ignoring the Human side of Change

Our brains are hardwired to resist change. With the mere suggestion of change a fear response is triggered in our brains. This is why most of us are resistant to even the idea of organizational transformation, we are resistant to our familiar world changing from what we know to the unknown. We need to embrace the human side of change to effectively manage resistance to change and we need to understand that, whilst all change is not bad, it is a natural human response to have a defensive reaction to the unknown. 

Avoiding these pitfalls doesn’t guarantee success, but it will vastly increase your likelihood. Winning starts with clearly defining the case for change and ends with an effective effort to build the new competencies the organization needs.

Business Lessons from the Fall Season to Embrace Change

Something magical happens in September. The air is crisper and clearer; the trees start to turn from pine green to an array of gold, copper, and bronze; and the sense of something new and exciting happening lingers around every corner.

The start of fall feels like a new beginning – a fresh start. The long and (possibly) hot summer has drawn to a close, making way for new ideas and fresh perspectives, in turn bolstering that drive to get motivated, get productive, and get things done. This is especially true for businesses. A study found that workers get most of their work done in the autumn months than at any other time of the year.

There is a strong sense of new beginnings that is so closely associated with fall. It’s the start of a new year at school or college; it’s harvest season; it’s cooler and fresher outside; it’s time to swap the sandals for jackets and boots. In other words, it’s out with the old and in with the new.

This almost subconscious feeling of turning over a new (autumnal) leaf is a powerful driver to do something different or make changes and improvements. It is particularly important to embrace change, as it can help facilitate fresh ideas to keep up with competitive markets. Here are some tips for your business to embrace change as we head into fall.

Get Comfortable Being Uncomfortable

Change can be scary. Whether you are a thrill seeker or a homebody, trying new things requires you to step out of your comfort zone. However, as businesses, customer expectations and technology are constantly evolving, change will eventually happen whether you are prepared for it or not. One key to embracing a positive outlook on change is being able to find comfort in the uncomfortable.

To find comfort in change, it is helpful to keep your focus on the long-term benefit of trying new things. In the moment, change can feel daunting simply because it is unchartered territory. Acknowledging change as a catalyst of long-term growth rather than a hindrance will allow you to find comfort in temporary road bumps.

By becoming comfortable with the uncomfortable, your business can enter new seasons easily, and your comfort zone may even expand to new heights.

Encourage New Ideas

Implementing new ideas is one of the most direct ways to embrace change as a business. Whether it is a product launch that plays on a timely trend, a reinvented media campaign, or even an innovative business rebrand, new concepts can catapult you into a spirit of growth.

New ideas are not only catalysts for change, but they are also necessary for business growth. Rather than being reactive in your implementation of innovative ideas, embrace a spirit of change to help your business be proactive and get ahead of the curve.

Develop a Growth Mindset

Part of embracing change is inviting a growth mindset to your business strategy. Whether you are a long-time journeyman or just getting started, you can embrace a growth mindset regardless of your position. The best leaders are always looking to uncover growth opportunities and consistently welcome new ideas to keep their businesses moving forward.

Teams that operate with a growth mindset have a much more malleable view of success. They do not view failure as a reflection of their ability but rather as a starting point for experimentation and testing of new ideas. They have a passion for learning and improving themselves and their team. They strive for continuous improvement and never give up.

As we officially head into the new season, this is a great time to embrace change and new opportunities. By finding comfort in the uncomfortable, leaning into new ideas and examining your leader mindset, you will be more equipped with a spirit of growth. For businesses, the changing leaves can be a great representation of what transformation can look like for your organization. As the autumn leaves turn and begin to fall from their trees, they are preparing to soar into their next adventure.

Fear is Poor Motivator for Business Transformation

Those of us who are familiar with Continuous Improvement programs all know the term “burning platform”, an expression used to describe a situation where a company or organization needs to take drastic action to survive. The concept has gained popularity as an effective way to motivate employees and stakeholders to make a real change.

In general, a necessity to change – the burning platform – will create higher stress levels which affect the attitude and behavior of employees towards the upcoming change. The more critical and urgent the need for change, the bigger the chances for stress levels. This triggers negative and defensive reactions like fight, flight or freeze.

Too often, we see high stress levels result in internal fights, pointing fingers, pushing problems to other teams and the best talents moving to other companies.

Maybe, these negative sentiments can be transformed into a more positive and bonding attitude within teams for a while, but not for long time.

My view, however, is different. Even though fear is a strong motivator, it only works for a limited time. And should never be applied on a personal level. Fear causes stress, decreasing performance levels and motivation in the long run. Typically, as soon as another option is available, people find ways to escape the unpleasant situation or environment.

To sustain a transformation journey, shifting from a burning platform to a burning ambition is absolutely critical. Leaders’ personal ambitions are surpassed by the lasting impact they wish to have on their organizations, their customers, their industries, and their communities. Burning ambitions provide far greater leverage than burning platforms to keep leaders on track. Clarity of personal and organizational ambition allows leaders to reorient their focus in spite of these competing pressures and allows them to accept short-term pain in the pursuit of longer-term gain.

Moving from a burning platform to a burning ambition is a necessary first step toward organizational transformation. Because this shift allows leaders to become calmer, more purposeful, and more responsive to the inevitable challenges they are going to face. Secondly, it is not only vital for a leader to articulate the organizational reasons for change, but they need to delve deeper and establish very compelling personal motivations for change. Finally, the fire or the ‘Big Why’ is a crucial part of how leaders transform.

The better option is what leading and dynamic manufacturers do very well: they rally their employees, their clients and their partners with a strong and compelling purpose, which makes continuous innovations and change the natural, logical and compelling thing to do.

In essence, if there are compelling reasons and not too many obstacles, people will change and drive innovation to improve. They do not need a crisis or burning platform to change. After all, that is the only reason the world is changing so rapidly.

However, too many organizations do a bad job in providing compelling reasons and a good job in creating obstacles. That is the reason organizations struggle to keep up the high pace of the changing world.

The 10 Rules of Continuous Improvement

The most successful companies are never satisfied with the status quo. They constantly have their eye on the next innovation, the next level of performance. They know the importance of continuous improvement in all areas of the business.

Even if things are going really well, people at successful organizations are looking at what could be improved upon so that they can perform better. They are finding ways to work smarter, not harder, in order to be more efficient and profitable. The most successful companies are always innovating and developing new ways to deliver top-notch quality to their customers.

But this kind of behavior doesn’t just happen. Sure, some people have a natural drive to keep improving their skills and the results they produce at work. But many people prefer to stay in their comfort zones, never questioning the way things are done.

Continuous improvement is an ongoing process of identifying, analyzing, and making incremental improvements to systems, processes, products, or services. Its purpose is to drive efficiency, improve quality, and value delivery while minimizing waste, variation, and defects. The continual improvement process is driven by ongoing feedback, collaboration, and data.

Let’s look at 10 rules for effective continuous improvement:

1. Be Open Minded

An open mind leads to new possibilities. New possibilities lead to new thoughts and experiences. To have an open mind means being flexible and adaptive to new experiences and ideas.  Having an open mind doesn’t mean accepting everything as truth, but rather being open to new possibilities. New thoughts and experiences lead to growth.

2. Start with the 3 “Actual” Rule

Continuous improvement starts with the three “Actual” Rule.

        Go to the actual place where the process is performed.

        Talk to the actual people involved in the process and get the real facts.

        Observe and chart the actual process.

All too often, attempts are made to solve problems without knowing anything about or are not being familiar with a particular area or process -- resulting in a misdiagnosis or failed solution. Answers come from the floor, from the Gemba, where the condition occurs. You need to go to the real place and experience these conditions for yourself before being able to take the next steps.

3. Focus on Process Over People

The most successful organizations understand that the problem is not people failing to deliver, but that their organizational processes or systems need to be improved. If an organization really wants a continuous improvement effort focused on improving its business, it must celebrate the mistakes and errors that result from inadequate processes or systems so they can be analyzed and corrected. Enlightened organizations don’t look for someone to blame; they identify the problems that inevitably arise and encourage their people to expose these issues, rather than cover them up.

4. Don’t Seek Perfection, Try-storm

Don’t spend too much time talking about a solution, try it!! Try-storming encourages the rapid development and test of an idea rather than merely thinking about the possible solutions. It allows people to visualize, touch and further improve on an initial idea. It also models action rather than talk. Often in our desire to design the perfect Future State we forget that the best way to build a process that works is through the iterative process of trying, adjusting/correcting, and trying again.

The process is built on three basic principles:

• It is not important to create perfect solutions.
• Be action-oriented.
• Keep solutions simple.

5. Creativity Before Capital

Don’t substitute money for thinking. In other words, before spending money on a typical solution (buying equipment, hiring staff, working overtime), try using existing equipment and employees.

In reality, even creative solutions may require some investment. Yet, often that investment is quite small in comparison to more traditional approaches. As Lean practitioners, it is our job to minimize waste in all that we do – and that includes the cost associated with solutions.

6. Problems are Opportunities

The workplace is full of problems and we are expected to solve them. Problems often stir up the emotions of everyone involved. When a problem occurs, instead of first exploring how to get the problem to go away, first stop and ask yourself: What is the opportunity here? This is the key to innovative problem solving. It’s understanding that the problems you face are opportunities — no matter how frustrating they appear to be at first. Innovative thinking on how to solve a difficult problem begins when you view problems as opportunities — when you break the barriers of limited thinking that we all have.

7. Focus on the Root Cause, Not the Symptoms

It’s very easy to get caught up in the symptoms of the problem and most problems are incorrectly attempted by suppressing these symptoms. We should resist this temptation! When we encounter a symptom, it should serve as a prompt to dig deeper to get at the real root causes for an issue. There are a number of methods of root cause analysis, including failure mode analysis, fault tree analysis, and fishbone diagrams. For diagnosing performance issues, one of the simplest and most effective methods is the "5 Whys," which is attributed to Taiichi Ohno and his Toyota Production System. This technique simply requires us to ask why repeatedly until root causes are uncovered.

8. Rely on Data, Not Opinions

As the legendary engineer W. Edwards Deming put it, “Without data, you’re just another person with an opinion.” Without insight into data, people make decisions based on instinct, speculation, or prevalent theory. People are at risk of acting on biases or false assumptions. Now, data driven decision making involves collecting data, performing analysis, and basing decisions on insights derived from that analysis. This provides for accountability and transparency. Basing decisions on data allows the logic behind determinations to be transparent and provides stronger evidence to support those decisions. Data provides context and knowledge.

9. Practice Respect

Show respect” is perhaps the most valuable rule, as people are the goal, not simply the means to an end. Improvements are accomplished by people, not processes. Processes ought to be designed to support people in their accomplishment of specific objectives. Ultimately this means developing people to be who they can be. One tremendous side effect of that development is greatly increased capability in fulfilling their roles, which leads to greater efficiency in accomplishing improvement.

10. There is no destination on the road to improvement

Continuous improvement is a journey that never ends. There will always be a gap between where you are (current state) and where you would like to be (True North). Since there will always be a gap, there will always be an opportunity to improve. The road to continual improvement can be a rocky one with many ups and downs. Failure will occur. It’s ok, the purpose is learning, and we learn through experimentation. Trying new approaches, exploring new methods and testing new ideas for improving the various processes is exercise for the mind.

Adopting a culture of continuous improvement can benefit both you, your team and your business. Finding a suitable way to begin your never-ending quest toward it doesn’t need to keep you awake at night. Why don’t you start by implementing these 10 rules in order to set yourself up for all the benefits that come hand in hand with improving continuously!

Reasons Why Every Company Needs Business Process Management

Photo by Mikael Blomkvist on pexels

In today's dynamic and fast-paced business landscape, organizations actively seek ways to enhance efficiency, streamline operations, and provide exceptional customer experiences. In response to these objectives, Business Process Management (BPM) has emerged as a powerful approach.

What Is Business Process Management?

Business process management (BPM) is an organized method for planning, putting into practice, and continually enhancing organizational business processes. By optimizing workflows, identifying inefficiencies, and enhancing operational performance, BPM contributes to the overall efficiency and effectiveness of the organization. It employs a range of methodologies, tools, and techniques to streamline processes, automate tasks, and ensure alignment with strategic goals. 

Role of Software in Business Process Management

Contract management software is crucial in supporting Business Process Management (BPM) in companies. It offers comprehensive, advanced tools and features that streamline and automate contract-related processes.

With contract templates, clause libraries, and approval workflows, the software simplifies and standardizes contract creation and negotiation, ensuring efficiency and consistency. Centralized storage, retrieval, and management of contracts enable easy access and enhanced visibility throughout the entire contract lifecycle. 

By automating notifications and reminders, the software assists in tracking critical dates, renewals, and compliance obligations, reducing manual efforts and mitigating risks. Integration with other systems promotes seamless data exchange, improving process efficiency and accuracy. 

Contract management software significantly enhances BPM by streamlining workflows, improving control and compliance, reducing administrative burdens, and facilitating efficient contract management.

Reasons for Business Process Management

In the current business landscape characterized by rapid changes and intense competition, organizations continually strive to achieve superior outcomes. Business Process Management (BPM) emerges as a critical approach that facilitates the systematic management and optimization of an organization's processes. By focusing on performance enhancement, cost reduction, and driving innovation, BPM empowers companies to thrive in the dynamic marketplace. Let's explore why embracing BPM is imperative for every company's success.

1. Enhanced Efficiency and Productivity

Business Process Management (BPM) strongly emphasizes analyzing, documenting, and enhancing existing processes to eliminate redundancies, bottlenecks, and inefficiencies. Through streamlining workflows, automation of repetitive tasks, and optimized allocation of resources, BPM empowers companies to operate with enhanced efficiency and achieve heightened levels of productivity. It enables employees to dedicate their time and energy to value-added activities, resulting in improved output and heightened customer satisfaction.

2. Agility and Adaptability

Business Process Management (BPM) plays a pivotal role in fostering organizational agility by enhancing the flexibility and adaptability of processes in response to evolving market dynamics. With BPM, companies can easily modify and optimize processes to meet emerging trends, customer demands, or regulatory requirements. By nurturing continuous improvement and innovation, BPM empowers organizations to proactively stay ahead of the competition and swiftly adapt to new business challenges. Through implementing BPM, companies can embrace change and seize opportunities for growth and success in an ever-changing business landscape.

3. Risk Management and Compliance

Effective risk management and compliance are fundamental for every company, regardless of size or industry. Businesses can identify, evaluate, and reduce risks related to their business processes using a systematic framework provided by business process management (BPM). By integrating robust risk management and compliance measures into the process design, companies can ensure regulatory adherence, minimize operational risks, and safeguard their reputation. BPM empowers companies to proactively address potential risks, establish internal controls, and implement monitoring mechanisms to ensure compliance. By embracing BPM, organizations can enhance risk management practices and maintain a secure and trustworthy operational environment.

4. Data-Driven Decision Making

In today's era of big data, companies have unprecedented access to extensive amounts of information that can yield valuable insights for effective decision-making. Business Process Management (BPM) is pivotal in enabling organizations to collect, analyze, and visualize process-related data, empowering them to make well-informed decisions based on accurate and timely information. By harnessing the power of data analytics, companies can identify process bottlenecks, performance gaps, and areas for improvement, thereby driving data-driven decision-making and strategic planning. Using BPM, organizations can unlock the potential of data to optimize processes, enhance performance, and achieve their strategic objectives.

5. Collaboration and Communication

Business Process Management (BPM) actively fosters collaboration and communication among diverse organizational departments and stakeholders. By providing a clear and shared understanding of processes, roles, and responsibilities, BPM effectively dismantles silos and encourages cross-functional collaboration. It creates an environment where employees can collaborate towards common goals, share knowledge, and exchange best practices, ultimately enhancing teamwork and fostering organizational alignment. Through implementing BPM, organizations can leverage their workforce's collective expertise and insights, leading to improved collaboration, enhanced productivity, and a cohesive working environment.

Conclusion

Business Process Management is a strategic imperative for every company aiming to thrive in today's competitive business landscape. By focusing on the above reasons, BPM empowers organizations to achieve operational excellence, drive innovation, and maintain a competitive edge. Embracing BPM as a core organizational discipline is essential for companies seeking sustainable growth in the dynamic business world.

Author Bio: Qurat-ul-Ain Ghazali, aka Annie, is the growth manager at Contractbook and looks after all the organic channels. She has been with tech startups and scaleups for a couple of years with a B2B focus. You can find her socializing, traveling, indulging in extreme sports, and enjoying the local desserts when she is not working.