Change Management Hmm Ib
Transcript of Change Management Hmm Ib
Harvard ManageMentor In Brief on Change Management
You can actively prepare for change and embrace the opportunities it provides. Or you can
passively resist change as long as possible — like an ostrich with its head in the sand. But the
longer you resist change, the fewer options you will have — and the greater the cost to your
company.
Any business executive will agree that change is constant and inevitable — yet all too many
companies are ill prepared for change. In theory, we accept the idea. In practice, we are
threatened by it. Change can be chaotic and stressful, and we like the comfort of the status quo.
But change also offers an opportunity — and organizations that handle change well can leap
ahead of their competition.
To be ready for change, you need a culture that welcomes, rather than resists, change. A
change-ready organization is nimble; it anticipates shifts in the marketplace. Whatever the
event — from a factory shutdown to implementing a new corporate strategy — a change-ready
organization is light on its toes and ready to move.
How would you respond if your CEO told you that your group had to make a critical change in
how it does business, and you had one week to figure out a solution? You couldn’t come up with
a solution on your own — nor would you want to. You would need to collaborate with your
employees, your boss, and your peers. You would need people in your group to be able to make
sound decisions on their own. And to move rapidly, you would need the processes and
technologies already in place for sharing information in real time and communicating clearly,
often across geographic and time zones.
Collaboration. Decentralized decision making. Information sharing. Clear communication
pathways. These are the signs of an organization prepared for change.
The test of a change-ready organization — and you, as a manager of change — is in how you
respond when the need for change occurs. Of the many change management strategies you
should consider, let’s look at three:
1. Mobilizing energy and commitment
2. Creating short-term wins, and
3. Institutionalizing success
First, mobilizing energy and commitment: Think about a time when change was necessary in
your organization. Your employees no doubt had many questions and, more than likely,
concerns. How did you respond? Responding to employee concerns provides you with an
opportunity to explain the need for change and to gain buy-in. Change initiatives occur in
response to a serious business problem, or set of problems. By carefully identifying the problem
at hand, you can create a sense of urgency and motivate your employees.
As your employees gradually understand the urgency of the problem, they will likely begin to
focus on what needs to be done. You want to harness and mobilize their energy. Help your
group begin to interpret the business problem in terms of their own work and then to identify
potential approaches and solutions. You win on every front by involving your team in the early
stages of a change effort. This strategy fosters commitment on their part and a shared vision of
what needs to be done.
The second strategy is creating short-term wins. If you and your group are facing a long period
of sustained change, you want to focus your team’s attention on short-term results and wins.
Generating short-term wins helps people feel that their hard work and sacrifices have a purpose
and are gradually making a difference.
Say you have a three-year change initiative. That could be a daunting prospect for your group.
The end goal is so distant that their sense of urgency could gradually dissipate. By setting
interim goals — say, for every six months or for each year — you focus the group on a
succession of short-term wins. Be sure you pick meaningful achievements and assign metrics to
these goals. For example: “Within the next 12 months we will reduce fuel costs by 15 percent.”
Metrics allow you — and everyone else — to know when you have achieved a goal.
With your group, monitor ongoing performance against the metrics. You want your group to
know the instant they hit a goal. Then stop and take time to celebrate! Be vocal and visible!
Recognize their hard work and do something special.
Every short-term win is also an occasion for reflection. What went right? What could have been
done better, and why? The more you learn along the way, the better prepared you are to
address the next milestone — and create another short-term win.
Once you’ve had a success, it is time to implement the third strategy: institutionalizing success.
Institutionalizing a success means you capture your hard-won knowledge and weave it into
improved processes, updated information systems, or new reporting structures that describe
how work should be done going forward. For example, through digital connectivity and new
supply-chain partners, a group successfully meets a short-term goal of reducing a process time
line — from order-taking to delivery — from seven weeks to less than two. Once the group
reaches its goal, it institutionalizes its gains through a performance measurement system that
keeps everyone’s focus on the new metrics. Some successes, such as a new set of standards, can
be implemented across an organization in many areas of the business — truly institutionalizing
success.
Is change stressful? Can it feel threatening? Absolutely. However, if you mobilize your team’s
commitment and energy, take the time to generate short-term wins, and institutionalize your
successes, you can transform the perceived threat into an opportunity to excel.
For a more in-depth look at leading people through change, see the Harvard ManageMentor
topic Change Management.