Making the case for change

These days, a business that stagnates is a business in its rivals' cross-hairs. How do you keep your organization's operations on the cutting edge and get everyone to buy in to the concept of change?

By -- Logistics Management, 10/1/2000

You've got to be nimble to make it in today's Internet-speed business environment. Advances in technology, new business practices, and the dizzying rate of mergers and acquisitions can be overwhelming. The trick isn't just being able to handle the changes yourself. You've got to bring everyone else in your department-or even your entire company-along for the ride.

The term "change management" is part of the business lexicon, but one management consultant says a better term is "change leadership." In order to be effective, organizational change has to be led rather than managed, says Alexander Caillet, executive director of Boston-based Gunn Partners Consulting, a wholly owned subsidiary of Exult, a human resources management company based in Irvine, Calif.

"You've got to get in front of change and lead it, or you're going to be a victim of it," Caillet says. "Leadership, not management, makes change happen. Managers, by definition, are more concerned with implementation. The leader creates the basic blueprint; managers take that blueprint and turn it into reality. Leaders drive change; managers keep the process under control."

Leaders must convince others of the need for change, set goals that are achievable, and then lay out a path to those goals, according to Caillet. "Management is involved with keeping the machine running smoothly; leadership demands a whole new machine. Management defends the present;" he says, "leadership fights for the future."

What typically drives an organization to change its ways? Caillet cites the following:

• Competitors are stealing market share.

• Market forces-such as the growth of the Internet economy-require expansion or adaptation.

• The company is spending too much.

• Customers are complaining.

• Employees' dissatisfaction is becoming public, perhaps to recruiters.

• Productivity is down; operations are inefficient or ineffective.

The call for change may not emanate from the corporate suite, Caillet says; it can start with middle managers, who may be the first to see the need for change. But support for initiating change has to come from the top, he emphasizes. "You need to get support at the corporate level, from a CEO or COO, an executive vice president, or at least a senior vice president," he says. "You need them to be the top salesperson for the effort."

Next in line when you're lining up support are the vice presidents, who are going to be on the front line in implementing changes. "Vice presidents are the people who are about to be upset [by proposed organizational changes]. You want their buy-in," Caillet advises. "Because their world is going to be tampered with, you need their approval." Gaining the support of senior management helps eliminate organizational barriers that undermine change, he says. It's also important to set performance goals and a system of rewards that encourage cooperation and communication-vital components of any successful change effort.

Caillet also warns companies not to overlook the board of directors when introducing change. Board members are responsible for setting corporate strategies, which means they are make-or-break participants in the change process, he reports. "They're going to want to know if your goals have been aligned with the corporate strategy," he says. "The minute you say 'no,'you're done."

The Vision Thing

To lead a change effort successfully, Caillet says, companies must set attainable, measurable goals; develop a blueprint; and empower the organization for success, among other things. But to start, you need a sponsor, someone high up in the chain of command who will be what Caillet calls "the champion of change," a corporate-level cheerleader who will set the stage for what is to come.

The change leader espouses the vision behind the change, the rationale for the undertaking, Caillet says. A "vision statement" is required and it must be definitive and concise, he says, the kind of message to employees that everyone can immediately understand. Once the vision statement is crafted, it's time to develop strategic objectives tied to that vision, he says, adding that putting the objectives into words issues a challenge to employees and motivates them. For example, your company might want to improve customer service and gain the No. 1 spot in your industry, within the budget parameters already established by your board of directors.

Don't worry about the fine points of how the organization will achieve the goal described in the vision statement at this point; the task here is to state the objective and get everyone on board, he says. Leave the strategy development to the folks on the next level, the "guiding coalition" that creates the game plan for change, he advises. The group should consist of 75 percent leaders and 25 percent managers, Caillet says. "Successful completion of a major change effort requires a predominance of leadership. Most organizations claim to know this, but when it actually comes to building their change teams, they typically load the teams with managers instead of leaders."

Who are the likely candidates for membership on the guiding coalition? Staffers who have decision-making power, experience, credibility within the organization, and a commitment to implement the needed changes, Caillet says. But you can't have all chiefs and no Indians, he points out. Coalitions need some managers on the team. "Leaders can get too far 'out there,'" he says. "You need to have the kinds of folks [on the team] who can say, 'Hold on.'"

Once the team is in place, a project leader has to be chosen to guide the team in creating the change strategy. A good project leader needs to be a strong leader with a good track record within the organization, someone with decision-making authority, good communication skills, and who is a good motivator, Caillet says. "They are, fundamentally, fairly optimistic people and excellent project managers," he says, admitting it can be difficult to find such a paragon in an organization. "If you can't find the right person," he advises, "find two who can bring most of those qualities to the task."

Once chosen, the project leader-or leaders-will need all the support the sponsor can give, Caillet says, because it's a high-visibility post and a risky one. "Many project leaders go through hell," he says. "People smell danger [in making changes] and their resistance builds." Other members of the team can come under criticism and attack as well, because many people in an organization find change threatening, he notes. "The team itself has to become a safe container where team members can vent and steam."

The Human Element

The need for communicating with employees is never more critical than during a change, according to the consultant, who advises clients to do plenty of communicating, plenty often. "Always let employees know that the team is meeting and will be recommending some changes," he advises. And keep the communications consistent, he warns, or you risk derailing the team's efforts. Use the company's internal Web site, e-mail messages, newsletters, and in-person meetings to spread the word about what is being proposed, why, and how it fits into the original vision statement issued by the change sponsor, he says-and keep the message consistent. "The key is to have your electronic, paper, and face-to-face efforts the same," he says. "Centralize the message."

Now comes the hard part, getting people to comply. Actually, Caillet says, they never do. "In every organization, there's an ingrained resistance to change, and it runs from top to bottom," he says. "People never comply [with change]. Instead, people have a change in perception."

In studying how other organizations successfully managed to change, Caillet says he and his colleagues at Gunn Partners discovered that employee behavior was the best predictor of how well (or badly) changes were adopted. In order to guarantee that employee behavior would change in the appropriate way, Caillet and his colleagues first thought they needed to understand employees' emotions concerning proposed changes. But that wasn't the key, he admits, because employees' emotions are hard to manage.

"Then we found the Holy Grail," he says. "People think first, then they act. You need to know how and what people are thinking. It's the thinking that has to change." Easy to say, hard to do, he admits-but it can be done by training all the key players who are leading and managing the change process to become good listeners.

Caillet is aware that advising change leaders to become good listeners sounds simplistic. He emphasizes that being a good listener is a skill, because in times of change, employees need to express their misgivings about how the process is affecting them and their ability to do their jobs. "People need you to let them come into your office and have you listen to them," he says. The information you gather from employees by listening to their concerns will help fine-tune the change process and ensure its success, he notes. The ambiguity inherent in the change process can unnerve some employees, but it can also free up their creativity and result in their contributing valuable insights and fresh ideas to support the change effort, Caillet says. The ability to listen closely will help change leaders identify and address problems before those problems can erode morale.

Getting Through

The transition from designing the change to actually implementing it is a crucial one where resistance to change can undercut the effort, Caillet says. "At this point it is critical that leadership clear away remaining barriers and empower teams to do their jobs. Leaders can't afford to show too much patience with people who refuse to change their behavior, no matter how high their position in the organization," he says. "Failing to deal with them sends a signal that the leaders aren't serious [about change]."

Heading into the unknown is risky and people may understandably balk, according to Caillet. They may want answers to questions that don't have any yet. Don't dismiss their questions and don't offer guesses about what will occur, Caillet advises; tell them the truth. "How can we tell people 'We don't know?' Just tell them you don't know," he says. "You don't have to be Superman. Just be honest."

Change is a process that has no end, he says. Change one aspect of how an organization operates and you have to change another and then another. Eventually, you end up with a new organizational culture that accepts change as a permanent part of the landscape, says Caillet, who adds: "You might say that this stage is completed when people fully accept the idea of continuous change and see the proactive promotion of change as part of their everyday work-when, in a sense, they become 'champions of change.'"

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