Leading and Managing Change by Colin Coulson-Thomas
Professor Colin Coulson-Thomas has been the Process Vision Holder of major transformation projects, advised over 100 boards on improving board and/or corporate performance, reviewed the business development processes and practices of over 100 companies, and spoken at over 200 national, international and corporate conferences in some 30 countries. He is the author of over 30 books and reports and can be contacted via www.coulson-thomas.com — December, 2006
“In many companies changes seem to occur for change's sake, and ‘the management of change’ has become a lucrative area of practice for many consultants. Yet whether or not particular changes prove helpful or harmful generally depends upon what is being changed, by whom and for what purpose. Far too many of the changes sought by senior management are ill conceived, badly communicated and counter-productive.
“When considering business development strategies and options for improving performance, boards need to achieve a balance between change and continuity, and focus upon areas of greatest opportunity. As situations alter and circumstances change, capabilities, processes and working practices may need to be reviewed. For many people, change is an inevitable consequence of their roles and responsibilities. It may be both necessary and desirable.
“Certain changes are more welcome than others, and some people are much better at managing them than their peers. In some companies managers may be assessed and rewarded according to the amount of change they bring about. However, directors, boards and senior managers should tread warily as change can be disruptive of valued relationships and costly. It can distract people from more important priorities.
“When mismanaged, change can be stressful and destructive. Few changes affect everyone in the same way, and the impacts of certain changes may not be immediately apparent. There might be hidden and longer term consequences. Board members may be divided between those who are for or against particular changes. People who are indifferent or ambivalent may simply ‘go with the flow’. Despite much rhetoric about ‘change management’ and nimble, responsive and flexible organizations, many business leaders periodically downsize, regularly restructure and inexorably destroy shareholder wealth.
“Why are some people so much more effective than others who undertake similar tasks in equivalent circumstances? What do the high performers do differently in relation to change management and other key corporate activities? The ‘Winning Companies: Winning People’ research programme examines how people operate in important areas such as building relationships, competitive bidding, pricing and purchasing, corporate learning, and creating and exploiting know-how.
“Over 4,000 organizations from smaller firms to major corporations have participated in the continuing investigation. Some 2,000 companies and 500 professional firms have contributed to studies to identify critical success factors for key business development activities. The findings are remarkably consistent across sectors, professions and different sizes of organization.
“Areas examined range from visioning and providing strategic direction to communicating and managing performance. Because most critical success factors are attitudinal and behavioural, investigating teams can distinguish the approaches of high performers or winners from the practices of low achieving losers. The results are summarized for the first time in ‘Winning Companies: Winning People’, which provides a compendium of the differing approaches of winners and losers for those with ambitions to build successful businesses and achieve their full potential.
“Many corporate programmes and consulting interventions entrench loser behaviours. Significant resources are devoted to activities that do not relate to critical success factors and encourage loser behaviours. Many directors and managers have lost the plot and fail to get the basics right. Critical success factors for key activities and winning approaches are neither understood nor put in place.
“Frustration is the inevitable consequence of how many people set about activities such as managing change. Smart boards make adaptation and change a way of life. They read the road ahead and try to anticipate changes that may be required. They identify and approach those whose help they might need. They are proactive rather than reactive, and retain control. They introduce required changes when there is the greatest chance of success.
“Much will depend upon the purposes of change and the capacity of the people involved to adapt. Directors should question the rationale for proposed changes, and ask whether an impact analysis has been undertaken of their likely implications. Are the potential consequences for employees, customers, suppliers, business partners and investors adequately assessed? In particular, how will they benefit?
“When deciding what to change, don't confuse operational and strategic issues, or your personal interests with those of the organization. Build an effective board of competent directors who understand the distinction between direction and management. Surround yourself with open-minded, pragmatic and competent contributors who will consider proposals for change dispassionately and objectively.
“Particular attention should be paid to the interests of customers. When new offerings are introduced will the spare parts needed for earlier products still be available? Introducing changes without considering their costs or consequences can do great harm to reputations and relationships. Customers sometimes seem to have more regard for a company's offerings than its managers.
“An ‘end-to-end’ perspective is required. People need to think through the likely consequences of changes for colleagues and business partners. Altering a task at one point in a process, or introducing a new activity, may cause problems for those operating elsewhere, either within the same process or in a related or dependent one.
“Allies and opponents need to be identified. Some champion change. Others undermine it. Change can disorientate and disrupt, even when it is beneficial. People may also only be able to take so much of it. Organizational leaders need to think carefully about how much change particular individuals and groups can handle before negative consequences wipe out desired gains.
“Unnecessary and excessive change should be avoided. A degree of continuity may be required. Smart organizations build upon an existing reputation, sustain vital relationships and safeguard core values. Steps may need to be taken to protect what is important and prevent the compromise of cherished beliefs. What are the anchor points of the business? What is the cement that holds its people and networks together?
“There are other questions to consider. Might changes result in the loss of strategically important knowledge and understanding? Is sufficient effort devoted to building longer-term relationships with customers, suppliers, investors and business partners? How easy is it for people to speak up against change?
“Directors should distinguish between goals, values, objectives, policies and activities that need to be changed and those that should be continued. Too many people passively ‘follow the herd’. Once a clear majority appears to favour a particular course of action they climb aboard the prevailing bandwagon.
“Think also about longer term and strategic impacts. Imitating and copying others can be dangerous. People can sometimes be naïf or mistaken regarding their best long-term interests. Preferences and priorities can change. Nothing is more frustrating than finding certain options have been lost because a decision cannot be reversed.
“Boards sometimes attempt to change too much. Is there sufficient continuity for people to have a sense of identity, belonging, direction and purpose? Are conscious efforts made to provide enough continuity for people not to feel threatened and insecure?
“Present a compelling case for change. People should only be expected to make demanding changes for good reason. The visions and rationales offered by many boards are excessively general. Inspire and motivate with a distinctive vision, compelling purpose and clear objectives. Accentuate the positive. Sell the benefits, but avoid blather and hype.
“Think through ‘what's in it’ for those involved. People should be encouraged and enabled to work and learn in whatever ways best enable them to harness their full potential and give of their best. Individuals differ in how they react to certain situations and opportunities. Thus working from home may not be suitable for those who are not inwardly directed or self-motivated.
“People need to be motivated, prepared, and equipped to achieve the changes they are expected to bring about. Bespoke initiatives and specific tools to help individuals bring about particular and desirable changes are more effective than general ‘change’ programmes. Effort should be concentrated where it can help achieve key corporate objectives and deliver greater customer and shareholder value.
“In many companies potential high achievers are held back by corporate procedures and processes that do not incorporate critical success factors and winning approaches. Company wide programmes often force people to adopt corporate practices that are less successful than their own approaches.
“Do not underestimate the potential of your colleagues. People readily adopt changes that make it easier for them to do their jobs and excel. Be prepared to trust them and, when it is reasonable to do so, take calculated risks.
“Many changes in the marketplace represent challenges and opportunities. Boards should consider who are likely to be ‘gainers’ and ‘losers’ and assess whether new or alternative offerings would mitigate undesirable impacts or enable people to take fuller advantage of emerging possibilities. Those affected might represent a lucrative potential market for products and services tailored to their particular interests.
“Directors may be unable to become directly involved in the many and varied activities that more bespoke and imaginative responses to a greater variety of requirements demand. Teams should be enabled to bring about whatever changes are required to enable them to achieve their objectives and deliver value to their customers.
“Those who endeavour to bring about ambitious, complex and fundamental changes should expect some setbacks. Persist. Be confident, determined, pragmatic and positive. Value constructive criticism and invite feedback. Don't rationalize disappointment. Learn from it. Achieving transformational change is often easier and usually more satisfying than rationalizing, managing and suffering the consequences of failure.
“Encouragingly, winning ways identified by the ‘Winning Companies: Winning People’ research programme can be quickly adopted. Average performers can adopt the approaches of super stars and emulate their achievements. Every participant in every study of the research programme could boost performance by embracing additional critical success factors and adopting more winning approaches. Dramatic improvements can be quickly achieved.”
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