Market pressures, increasing regulation, decreasing revenues, reputational erosion and other internal and external forces often stimulate the requirement for organisational change. In response, organisations may embark on structural, strategic or operational changes to move them to a higher plane in their development.
With the most rigorous strategy in place, driven by a fully engaged executive team, the road from A to B for organisations undergoing change is most often challenging. It can be more difficult if the people piece and connection with the EVP and employer brand is either overlooked or not given the priority and visibility it requires to support change success.
The broad definition of change management is around an approach to shifting/transitioning individuals, teams and organisations from a current state to a desired future state. It is an organisational process aimed at helping change stakeholders to accept and embrace changes in their business environment. You’ll notice the huge people-piece here, be it around individuals, teams or entire organizations.
In a recent staff guide for a leading Australian University, one of the goals of change management is stated as ‘the alignment of people and culture with strategic shifts in the organisation, to overcome resistance to change in order to increase engagement and the achievement of the organisation’s goal for effective transformation.’ Corporate Leadership Council research indicates that 60% -70% of significant and complex change management programs experience issues with inertia and stop as they fail to produce the planned outcome. This is generally because of poor project planning and change management.
From my own professional experience, organisations face varying levels of resistance to change. Staff dislike the unknown and what it may mean for them personally. Many think things are just right the way they are and see no need for changing at all.
Generally, executive management is supported with the tools to help manage processes and resources more efficiently. But change requires much more than because in reality, you are managing people with anxiety about change, confusion over what it means to them and the fear of uncertainty. On the flip side, you are sometimes managing their excitement and willingness to be involved. For example, appropriately managing the emotions of staff whose roles may be under review due to organisational change is difficult for most managers. But successfully managing the change process and giving voice and support to the emotions staff may feel during any transition is fundamental to the program’s success.
Whether your organisation has a strong, well-managed EVP and employer brand or not, people are inherently cynical about change. However in times of stress, organisational upheaval and change, the absence of a platform on which to build messaging from the most senior level, internal communications and the ‘what’s in it for me in the changed organisation’, makes engaging staff more challenging, particularly if the culture already requires work or has been neglected over time.
There may be conflicting goals within the organisation, for example, increasing resources to accomplish goals yet cutting costs to retain revenue. Hiring consultants to deliver key projects aligned to the change strategy whilst other roles are reviewed and rationalised. In the absence of a robust EVP and employer brand and channels through which to effectively communicate, staff will talk, worry, make things up, build negativity, create factions; they may even take action. There needs to be a voice of reason, explanation, understanding and context-building. Best practice indicates this is most effective when coming from the CEO or MD of the organisation.
In well-established organisations with deep community connections and long-serving staff, change often goes against the values held dear by them. The change may challenge how they believe things should be done. I’ve lost count of the number of times I’ve heard people say ‘well that’s just how we do things around here’. Therefore the natural defence for people threatened with potential loss is resistance, disengagement or both.
Unless otherwise managed and given the opportunity for discussion and understanding, the reasons people resist or disengage are personal and completely valid. They might include perceived loss of working conditions, money, pride, security, satisfaction, responsibility, authority or status. They may feel a lack of respect, have received personal criticism or not been able to provide any input. Or it could be just bad timing personally.
Having worked with or consulted to many organisations that have either entered into or been through significant change, the people/culture alignment with strategy and outcome has always been the number one priority. Yet some organisations are unable to work this crucial success driver into the change program, or cannot dedicate the required resource to manage the potential fall-out, or in the most extreme cases, the culture piece is not even on the table at the C level.
If people are an organisation’s greatest asset, then business genuinely needs to support them through periods of change. Every organisation has a sense of its EVP buried somewhere in its DNA, some tendril that connects its people to the people brand. If it’s there and unmanaged, don’t wait for a change program to be underway and feel the inertia get the better of the program. Engage at the highest level of business from the outset. Ask the difficult questions. Make the hard decisions. Harness what’s there and put some rigour around it. When people feel anxious, they need something to hold onto. And business leaders have a responsibility to ensure their people have something meaningful to hold onto in times of change.
Someone very wise once said to me ‘Marketing, HR and Strategy folk can develop the fanciest programs for change. But if the CEO and MD don’t, or won’t, get it and there’s disconnection between them and the front line staff, there’s not much point and you’re likely to fail.’
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Tags: CEO, employee engagement, employer brand, executive team, organisational change, social media