Avoid the 10 deadly sins that bedevil business
change
Stephen Asbury
Politically, South Africans are sometimes hailed as world champions of change.
Unfortunately, local experience of business change has been much more variable.
Empowerment, new technology, competitive pressure, commercialisation and privatisation create the need for business transformation without necessarily creating a knack for it.
The frustration for the business change specialist is that so many of the slips
in slipshod transformation are predictable and avoidable.
For instance, we can itemise at least 10 deadly sins of business
transformation.
Those in the business of change have known about them for years. Yet these
mistakes not only occur, but repeatedly reoccur - sometimes being perpetrated
by the same organisation at three- or four-year intervals.
For business strategists who wish to sin no more, here is the list:
-
The absence of a compelling and urgent reason for change. Once you take the
plunge, change can be tough going. Strong motivation is needed to see it
through. If there's "a burning platform", you jump from it eagerly enough and
do what it takes to succeed.
Without this sense of urgency, resolve can falter and processes can stall. Sometimes compulsion exists, but some role-players won't admit it. Perhaps senior managers, incentivised by a rising share price, don't want to shake market confidence just yet. In such situations, independent analysts and non-executive directors have a key function as whistle-blowers for change.
-
Lack of a shared, inspiring vision of the future. Unless leaders formulate and
communicate an inspirational vision, there is little chance of building
organisation-wide commitment. Two elements are vital in any persuasive vision -
truth and merit. Tell the truth and emphasise the merits of the case.
-
Leadership group divided on change. Progress can be thwarted when a pro-change
lobby is blocked by a no-change lobby. Change necessitated by non-performance
can be halted by those whose contribution will almost certainly be questioned
in any searching review. Without a powerful force pushing the process, nothing
will be done.
-
Insufficient capability and capacity to lead and manage change. Few executives
have experience of successful transformation. They lack the skills for the job
and can be too close to the problems for an objective perspective. An outside
specialist can develop an appropriate structure and methodology, and help
maintain the discipline required.
-
No road map for transformation. A robust plan, with deadlines and key
deliverables, is necessary. You can still be flexible while working to a plan,
but everyone needs to know the route.
-
Failure to mobilise and win organisation-wide participation. Cynicism and
resistance set in unless you involve the broad mass of the organisation.
Critics of change often make telling points. Engage them. The converted critic
becomes a change champion.
Successful projects are often characterised by the courage of leaders who can take the flak, acknowledge when it's justified and win support for a new beginning.
-
Late engagement of the unions. You can't inform the unions early enough. The
temptation is to wait until a plan has been formulated. Do that and union
representatives will complain that you are presenting a fait accompli. They
suspect bad faith if they are not consulted early enough to influence the
process.
When unions have early access to the same unsanitised information as management, they might not like what they see, but they have to acknowledge its validity.
-
Failure to manage change's emotional, political and rational aspects. Turf
issues and the emotions linked to perceived threats are difficult to deal with.
Soothing emotions through half-truths and omissions is not the answer. Tell the
same facts in the same way to all stakeholders. You can't tailor the message to
the audience. When it comes to the truth, practise consistency rather than
economy.
-
No business case for change. Without a business case with tangible benefits why
are you engaging in change? The financial benefits at the end of the road must
be apparent and strongly articulated.
Explaining a "top-down" business case to the financial director's team is easy; putting it to every department at every level is the tough part. The reason for economies or new investment must be clear. It is also important that all team members know how they contribute and see what is in it for them when the business benefits are realised.
- No measurement and communication of progress. Credible measurement of progress (or lack thereof) is crucial. Successes and failures have to be reported promptly. Set targets that are readily understood and permit objective measurement. Celebrate success and explain what more needs to be done.
Change can be difficult at the best of times, but the real hell of botched transformation can be avoided by guarding against these obvious sins.
Stephen Asbury is the chief executive of Sandton-based Gemini Consulting, a South African associate of the global Capgemini management, consulting and technology group.