The State of Change

What we know about organisations

experiencing change and what it means for the

way we lead and manage them .

Colin Jones FCIPD

Director, Ashfield Consulting

July 10th 2013

www.ashfield-consulting.com

In a Nutshell

• Organisations operate in increasingly complex and uncertain

business environments in which the ability to manage change

has never been more crucial

• Most reported ‘change failures’ and delays are put down to

inadequate leadership and engagement rather than insufficient

resources or technical capability.

• The ‘rational’ case may fail to account for impact of politics,

pre- existing mindsets, and ‘emotional’ resistance on the plan

• Leaders therefore require political nous, emotional resilience

and preparedness to challenge existing ways of working, no

matter how successful or troubled the company is .

Organisations

• Are dynamic systems facing continuing challenges of external

adaptation and internal integration

• The more complex and uncertain the external environment, the more

decentralised and flexible the organisational structure and control

systems need to be.

• High Performing ones achieve a good internal alignment of strategy,

structure, business processes, reward systems, and talent

management.

• All are designed to create differentiated responsibilities , priorities and

perspectives and interests – so conflicting views and tensions will

always exist and need to be managed constructively

• Increasingly form part of networks or ‘business ecosystems’, reliant on

the capabilities and success of other organisations to deliver success

for themselves

Large Scale Change

• The building blocks of delivering large scale change are well

understood but 70 % programmes fail to achieve their objectives

• A ‘burning platform’ message creates the necessary urgency but can

be demotivating or destabilising if too negative.

• Successful change strategies therefore need to build on the existing

‘positive core’ as well as identifying and addressing challenges and

weaknesses.

• Communication typically fails when high level messages aren’t put in

a way which engages or motivates those affected by the change.

Ensuring relevance or encouraging local interpretation of the

message is therefore important

• Initiatives are most quickly discredited when senior managers fail to

role model the new behaviours or use the new processes required by

the change

Planned or Emergent change

• In complex change environments a rigid top down

structured plan is unlikely to be effective

• Local Experimentation, the use of Pilots and Adaptation of

Plans to changing circumstances will deliver better

performance

• Leadership of such change initiatives should focus on

building organizational and individual capabilities to

change, rather than providing detailed direction and strong

control

Marshak’s Hidden Dimensions of

Change • Politics : People act out of their own interest, most of the time also

believing this to be best for the organisation too. Mapping and

accounting for these interests in change planning is essential.

• Inspiration: Visions or Values which appeal to the heart or to peoples

better instincts, can unlock energy and commitment not accessed by

purely rational visions, strategies and analysis

• Mindsets : Change Strategies are frequently limited by perceptions of

what is possible or experiences of what has worked/ not worked in the

past – particularly in successful companies

• Emotions : People experience change at an emotional level –

understanding the motivations and processes at play can improve the

design and implementation

• Personality : Individual opposition to change may be a product of

deeper psychological issues. Having the skills and strategies to identify

and deal with such issues will strengthen the change programme

Motivation and Engagement

• Generally, difficult or ‘stretch’ goals do motivate more than easy or ‘do

your best’ goals – up to a point

• Beyond that point anxiety or stress will result in diminished

effectiveness as people ‘close down’. This tipping point differs for

different people and according to circumstances

• ‘Buy-in’ to change does not vary significantly with the degree of

involvement ; the real ‘engagement’ benefit is in the greater quality

and range of ideas generated

• Individuals can interpret the same event differently and consequently

behave or respond differently ; focusing purely on changing behaviour

without understanding the underlying beliefs may be ineffective

• Extrinsic Motivators – carrots and sticks – can reinforce desired short

term behaviour change but have an adverse impact on creativity and

innovation, since they narrow people’s focus

Resistance to Change

• Sometimes organsational inertia can stem from the working of current

systems and processes – changing these processes is the easiest

change to implement

• Personal resistance can often follow the ‘change cycle’ – denial –

anger- bargaining- acceptance, adaptation- an accepted framework

for describing people’s normal reactions on the receiving end of

change.

• Where people seem committed but don’t act, there may well be

unexpressed competing commitments – beliefs or priorities – also

known as’ secondary gains’ which prevent them from changing.

• Simlarly teams, department or organisations may commit to a new

approach, but without addressing underlying beliefs and ways of

working may be unable to achieve the desired change.

Change Capabilities

• Continuous Improvement : data analysis, process improvement, goal

setting, problem solving and risk assessment are ‘rational’ foundation

capabilities for maaging change

• Political acumen : Mapping differing stakeholders interests and

motivation, identifying sources of power and blockage, building

coalitions and alliances, and modifying proposals to get support may be

needed to get things done

• Inspiration: Leaders need followers : role modelling desired behaviour,

creating shared visions, challenging existing ways of working, enabling

others to contribute and act, will create the momentum and higher

performance

• Emotional Intelligence : Leading people through change requires self

awareness, self discipline, empathy and the ability to build relationships

and manage conflict