Here we come to the last in the series of The Change Management discussion. It is important to realise that while leading organisational change, transformation efforts may also fail. Identifying and taking precaution is of prime significance for a leader while treading the path. Businesses hoping to survive over the long term will have to remake or reinvent themselves into better competitors, once a while. These efforts may be either to do with total quality management, reengineering, rightsizing, restructuring, cultural change, or business turnarounds, et al.
In 1995, John P. Kotter, the Konosuke Matsushita Professor of Leadership, Emeritus at Harvard Business Schoolcompleted a ten-year study of more than 100 companies that attempted organisational transformation. He shared the results of his observations outlining the eight largest errors that can doom these efforts and explained the general lessons that encourage success. He explained that the change process goes through a series of phases that in total usually require a considerable length of time. Skipping steps creates only the illusion of speed and never produces a satisfying result. Critical mistakes in any of the phases can have a devastating impact, slowing momentum and negating hard won gains. Perhaps because we have relatively little experience in renewing organisations, even very capable people often make at least one big error.I reiterate here the errors as Kotter ably crystallised. As ‘Change’ usually takes long time following his lessons may help improve chances of success:
ERROR #1
Not establishing a great enough sense of urgency: A close analytical watch is a must for all organisations most of the times. Most successful change efforts begin when some individuals or a group looks hard at company’s market position, competitive scenario, technological trends, market -competitive realities, potential crises or major opportunities and its financial performance. Timeliness and communication is very important aspect here. As a first step, it is essential as just getting a transformation program started requires aggressive cooperation and motivation of many individuals. ‘Change’ by definition, requires creating a new system. Phase one in a renewal process typically goes nowhere until enough real leaders are promoted or hired into senior-level jobs.
ERROR #2
Not creating a powerful enough guiding coalition: It is important that a leader manages to assemble a group with enough power to lead the change effort and encourage the group to work together as a team. As per the scale of business and size of operations the starting team can vary from 2 to 15 or more, but in most successful cases the coalition is necessarily powerful always, in bigger companies the figure may go from 20 to 50. Senior managers are the core of the group but board members, a customer representative or even a union leader may be a part of this group, not forming a typical organisational hierarchy. It may be awkward but necessary to get desired results of transformation by stretching boundaries and doing things out of routine or protocols. Efforts that do not have a powerful guiding coalition may sooner or later be overpowered by the opposition and stop the change, hence the second phase cannot be ignored or underestimated or left to functional heads like Human Resource, should ideally be lead by a key line manager.
ERROR #3
Lacking a vision: A well drafted vision helps clarify the direction in which an organisation needs to move. It will direct the change effort when strategies are developed to achieve milestones as per the vision. The first draft usually comes from an individual, bit blurry initially, but after the coalition works on it for a year or so, something better emerges through thorough analytical thinking. Without a sensible vision, a transformation effort can easily dissolve into a list of confusing and incompatible projects that can take the organization in the wrong direction or nowhere at all. In failed transformation you often find plenty of plans, directives and programs but no vision. A useful rule of thumb: lf one cannot communicate the vision to someone in five minutes or less and get a reaction that signifies both understanding and interest, this phase of the transformation process is not yet done with.
ERROR #4
Under communicating the vision by a factor of ten: Simply put, it means to use every possible vehicle to communicate the new vision and strategies, teaching new behaviours by the examples of the guiding coalition. Transformation needs hundreds or thousands of people who are willing to help, even offer short term sacrifices to help change the status quo. This needs a strong believe in the new system and without credible and enormous amount of communication, hearts and minds of the troops are never captured. In more successful transformation efforts, executives use all existing communication channels to broadcast the vision. They replace company’s generic management education with courses that focus on business problems and the new vision. Most of the executives in successful cases of major change are known to have learnt to “walk the talk. They consciously attempt to become a living symbol of the new corporate culture.
PERSUASION IS CRITICAL. IT IS IMPORTANT TO COMMUNICATE VISION, PROCESS TO CHANGE AND DESIRED RESULTS IN EVERY POSSIBLE PHASE OF THE CHANGE. IT IS VERY IMPORTANT THAT WHILE CONNECTIONS TAKE PLACE EMOTIONALLY BUT RATIONALE MUST NEVER BE COMPROMISED.
ERROR#5
Not removing obstacles to the new vision, not empowering others: The more people involved, the better the outcome. A guiding coalition empowers others to take action simply by successfully communicating the new direction. But communication is never sufficient by itself. Renewal also requires the removal of obstacles. Getting rid or eliminating obstacles would mean any system or framework that undermine the vision or do not allow the new change to come in be replaced or altered. It also means empowering or encouraging not just the coalition group but as many towards risk taking, non-traditional ideas, activities and actions. Progress may halt if there are mental or real blockers. Behaviour change is another important aspect, flexibility allows changing and it must be across all departments and functions to make it seamless. A blockage or hindrance to one area may stall the entire chain process.
ERROR#6
Not systematically planning for, and creating short term win: Planning for visible performance improvements, creating those improvements, recognizing and rewarding employees involved in the improvements is the crux of this phase. Real transformation takes time, short term goal setting and celebrating those milestones is important to keep the momentum of the renewal efforts going. Even the fire will spread; people who had resisted change will note the celebrated wins. Overall quality and unambiguous performance will go up notches. When it becomes clear to people that major change will take a long time urgency levels may drop. Commitments to produce short term wins help keep those urgency levels up and force detailed analytical thinking that can help clarify further or revise visions.
ERROR#7
Declaring victory too soon: Using increased credibility to change systems, structures and policies that don’t fit the vision, hiring, promotions and developing employees, reinvigorating process with new project themes or change agents is the focus of this phase. After a few years of hard work, managers may be tempted to declare victory with the first clear performance improvement. While celebrating a win is fine, declaring the war won can be catastrophic. Until changes sink deeply into a company’s culture, a process can take five to ten years to be adopted completely. New approaches are fragile and subject to regression. Ironically, it is often a combination of change initiators and change resistors that creates the premature victory celebration, in their enthusiasm over a clear sign of progress the initiators go overboard. They are then joined by resistors who are quick to spot any opportunity to stop change.
ERROR#8
Not anchoring changes in the corporate culture: Articulating the connections between the new behaviours and corporate success, developing the means to ensure leadership development and succession is the essence of this very important phase. Until new behaviours are rooted in social norms and shared values they are subject to degradation as soon as the pressure for change is removed. Sufficient time from the management makes sure that the next generation of top management really does personify the new approach. For a change in culture to sink in, rules and policies must be the first priority for goal-setting and to measuring milestones against achievements. An enabling physical environment and organisation structure is the core of an enduring corporate culture.
Not all success stories are error free. A clear vision is needed to guide people through a big change. A fewer error rate however is what corporates must strive for to stay away from tilting towards failure in their transformation efforts. Persuasion is critical. It is important to communicate vision, process to change and desired results in every possible phase of the change. It is very important that while connections take place emotionally but rationale must never be compromised. Credibility about the merits of the change takes time to be built, hence wider explanations in regard to social – cultural context, short term and long term gains must be spelt out to employees time and again. Goals must be framed after detailed discussion of processes and outcomes. It is a long journey and together it must be taken.