Change is Constantly Happening: How to Manage It?
““There are no marketing problems, there are no finance problems, there are no accounting problems, there are only business problems.””
This quote from Peter Drucker certainly applies to organizational change. Whether adaptive or transformational, change management is something which takes place holistically in the business, regardless of departments and rigid structures in place.
But what is organizational change? To put it simply, organizational change is a paradigm shift in an enterprise way of being, or acting, or doing things. But organizational change does not just have one nature. It has, in fact, many degrees of intensity: it can take place at a surface level (fine-tuning processes and structures); it can be deep (as in changing the mission, vision, and values of the organization); or it can have a transformational effect and purpose (complete paradigm shift).
So, you can look at organizational change as a continuum, where the most disruptive type at the extreme of it is transformational change, which involves a complete reconstruction of the identity of the corporation.
No matter the nature and intensity of the change, there are two routes which can lead to it: external and internal evolving factors. The environment around us (and organizations) shifts incredibly quickly (particularly over the last decade and since technology has assumed such a large part of the economy and life). This means that organizational change can either come from within a company (this may happen in case of high level of conflict among people, or a change in leadership for instance), or it can be sort of forced upon the organizations due to external forces and a mutating external environment (external change may be induced by social, political, economic, technological factors, as well as more business-specific elements such as a rising competition or a changing consumer demand - see PESTLE analysis).
There are four main elements which can be the target of change in organizations: technology (i.e. how inputs are transformed into outputs), product or service (new, improved, or customized products offered), administration and management (including changes in mission, structure, SOPs), people (behaviors, attitudes, and skills of the people involved in the organization).
Regardless of all these pillars of organizational change, people are at the very centre of organizations, and they are, consequently, at the core of change. Not only their personality, but also their attitude towards change, the environment as they see it in the company, how many people support change happening, and how they are communicated change, are all factors playing out in a changing organization.
So, how can organizational change (especially when transformational) be managed in the most people-oriented and effective manner, despite all the resistance which often occurs? Let's try to dissect resistance to change and some ways it can be overcome in this post, with a beginner's mind, attempting to include all the must-know information needed to manage change in the most effective and optimal strategy, with a long-term vision and mindset, playing the infinite game.
The Role of Hard and Soft Skills in Organizational Change
Adaptation is probably a key quality to have in organizations. External factors such as economic circumstances and consumer trends are in constant flow, certainly to different degrees depending on industries and historical situations.
The first point to raise in the analysis of managing organizational change concerns the role of hard and soft skills. Very often do we emphasize how crucial soft skills (as in knowing how to interact with people involved and lead them to their highest level of performance) are when it comes to managing people and organizational change. While unarguably important, soft skills often overshadow the relevance of hard skills, whose role is not to be overlooked completely, due to the fact that you probably do not want to sacrifice practicality solely for people skills. Very likely, you cannot effectively and efficiently manage an organizational change project (especially if transformational) without a solid plan and clear roadmap laid out in front of everyone involved. As this article from Harvard Business Review underlines, projects which have a clear plan and are on a strict review schedule are more likely to yield great results compared to poorly planned and executed change projects, regardless of soft skills. The article from HBR presents a framework of reference for organizational change: DICE. This takes into account the hard elements of change management (as opposed to soft factors such as leadership and culture), and is an acronym which stands for duration, integrity, commitment and effort. The DICE framework can act as a reminder of the importance of staying on track on the project, and not overlook hard elements involved in change management, on top of leadership and behavioral management skills.
Obstacles to Organizational Change
You know the feeling of resistance to change. Whether in our personal or professional life, changing things tends to be perceived as an outright threat and obstacle, in the short term. This is particularly true if you score low in openness to experience and high in orderliness (Big Five). In organizational settings, there are not only individuals. There are also groups of individuals (the bigger the enterprise, the more likely there is space for friction and fragmentation). And both of those elements can be source of resistance to change.
As noted in the book "Organizational Behavior" by Robbins and Judge, there are three main sources of resistance to change: the individual, groups, and the organization itself.
Individual resistance may come mostly from psychological factors such as fear of failure, peer pressure, the personality traits of the person, as well as a general climate of mistrust and insecurity which may also be caused by ineffective or partial communication.
The second level of resistance, arguably more powerful than individuals, is group resistance. Groups have the potential of disposing a compound effect of individual uncertainty and resistance to change. And because change can be perceived as a threat to the identity of the group, this level of resistance can turn out powerful and difficult to eradicate. At the very basis of all this, it seems to me, there is the inherently-pivotal role of clear, empathically-honest communication from the people in charge of the organizational change, together with the involvement of every "tier" of the organizational structure in the change process (valid in transformational change). A clear vision, purpose, and roadmap can be game-changing when it comes to dissolving friction from people and managing change effectively, one could argue.
The third type of friction, organizational resistance, is all about structural inertia in the corporation. This may be the case in very hierarchical, structured organizations, whose nature and built-in mechanisms foster stability, while (often involuntarily) preventing change from taking place. When confronted with change, this structural inertia may act as a counterbalance to sustain stability. In addition to this, also the culture and reward systems of the organizations can skew towards rigidity and punishment for failures, in which case these factors themselves would produce resistance toward change.
Possible Ways to Overcome Resistance to Change
Reality is quite difficult to face. And organizational change in real life is definitely more nuanced than how we look at it from a theoretical perspective. However, disposing of some clear and proven mental models for dealing with change and managing people in such circumstances can be a great source of help when it comes to overcoming resistance to change stemming from psychological and insecurity reasons from some people.
There are some foundational behavioral principles we want to keep in mind when managing change (and dealing with people for that matter). The first of these principles is communication and education. As also the DICE framework reminds us, duration and integrity are at the basis of effective change management. The more people are involved and properly informed about what is going on in the organization, on a regular basis and seriously transparently (e.g. sending periodic emails updating on the current situation and future steps), the more easily resistance can fade away, over time and with true commitment and honesty.
Another foundational principle resides in employee involvement and building solid relationships. Fostering an environment which does not perceive change as a threat begins in the day-to-day company interactions and genuine relationships among people. Having a positive climate towards change can be pivotal to involving people in the change efforts and have more chance of success. Negotiation and agreement can be an option too, when it comes to overcoming resistance to change, particularly if the resistance is very tough to eradicate and needs compromises.
Lewin's 3-Step Change Model
On a more hard-skills level, there are some very popular approaches and frameworks to managing organizational change. One of those is the DICE framework, as hinted earlier in the post. Another renowned approach to change management is Lewin's three-step change model. This is based on three main phases of organizational change: unfreezing, movement, refreezing. Lewin's model of change management has its foundation on the idea that people are at the source of all organizational changes, and that change will not occur unless motivation is truly present. Consequently, it lays out the three phases of change management listed above, where the first step of the process is all about unfreezing the status quo; increasing the driving forces which direct behavior away from it, while decreasing the restraining forces which hinder movement away from the status quo. This first stage acts as a sort of preparation for change to happen, setting up the most optimal environment for change, and laying out a detailed plan for implementing change.
Secondarily, movement takes place. This macro stage involves the actual implementation of change, with the adoption of new policies and practices, which, however, must be reinforced in the refreezing stage of Lewin's three-step model. Solid reward systems must be in place in order for change to stick and become part of the organization's culture.
As Drucker reminds us, "there are only business problems". And organizational change is certainly a business problem, especially when transformational. Effective change management and implementation requires human integrity, a behavioral approach to people, and crystal clear action plans and intentions, with the support of empathically-honest communication and involvement of people and their psyche, who are, let's not forget this, at the core of any change.
ADDITIONAL RESOURCES:
Forward Thinking | Roger Martin x Shane Parrish on The Knowledge Project
Organizational Change | Lumen
Joy with Marco Bizzarri | A Bit of Optimism Podcast
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