Change Resiliency in Organizations

Transcripción

Change Resiliency in Organizations
Business Technology Strategies
Executive Update Vol. 17, No. 17
Change Resiliency
in Organizations
during the cool down period, someone totally out of
condition might have an elevated heart rate for a long
time after stopping an exercise.
by Sheila Q. Cox, Senior Consultant,
Cutter Consortium
When I was a first-line manager at IBM, I often interviewed college graduates for entry-level positions in
sales or systems engineering. I remember surprising my
boss when I rejected a young man with a stellar résumé.
He had great grades from a top-notch school. He was
a varsity athlete and head of the student council. In
fact, he seemed to excel at everything he attempted.
Surely this man would be an asset to IBM. My concern
was simple: I saw no evidence of stumbling, and no evidence of picking himself back up and rebounding from
disappointment. His first setback was going to come as
a big shock, and I didn’t want to be his manager when
it happened. I prefer to hire young people who already
demonstrate resiliency.
INDIVIDUAL RESILIENCY
Resilient individuals, like everyone else, experience
stress when confronted by an unexpected situation.
We can distinguish resilient individuals by:
Lower baseline stress (i.e., don’t exhibit stress
reactions in normal daily activity)
A smaller increase in stress when confronted
by change
Less time to return to baseline stress levels
In some ways, resiliency is like physical fitness.
Athletes have lower resting heart rates than sedentary
people. When athletes start running, their heat rates
increase, but not nearly as dramatically as someone
who is out of shape. Indeed, a couch potato might suffer a heart attack if he or she suddenly starts sprinting.
And while an athlete’s heart rate can return to normal
CUTTER CONSORTIUM
To carry the analogy further, athletes build their physical fitness by stressing their body consistently over
time. Likewise, individuals build resiliency in the face
of change by embracing and adapting to unexpected
circumstances in their workplace and personal life.
Put another way, individuals who have experienced
change and come away stronger are better prepared
to meet the next challenge.
ORGANIZATIONAL RESILIENCY
Organizations can build resiliency in their employees
by helping them successfully adapt to change. Resilient
organizations are not satisfied with the status quo and
continually seek opportunities for constructive change.
Most important, they:
1. Take small steps while implementing changes,
especially major ones.
2. Celebrate progress in a public way to encourage
all participants.
3. Learn from mistakes by using a formal, scheduled
review process to document difficulties and determine how to do things differently in the future.
Taking Small Steps
The quickest way to build organizational resiliency
with your next project is to break the change down into
bite-sized chunks with achievable milestones. Instead
of simply saying, “We’re going to double our revenues
over the next two years,” provide monthly milestones
that set reasonable expectations (see Figure 1). Instead
of launching a single two-year program designed to
boost revenues, break it down into manageable intermediate projects.
Celebrating Progress
Most leaders tend to look forward and focus on the ultimate goal and the distance yet traveled. Unfortunately,
this can demoralize their followers who need to be
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BUSINESS TECHNOLOGY STRATEGIES
Figure 1 — Revenue milestones.
reminded of the strides they have already made. To
celebrate progress, you’ll need to first measure progress.
I’m amazed by the number of change projects launched
every year without a clear, measurable goal in mind.
So before investing time and money in a large organizational change, be certain that the top leaders are in
agreement on the desired end result and exactly how
your organization will measure that result. Next, set
short-term milestones along the way. Milestones keep
people motivated and focused. When you achieve them,
be sure to celebrate. And if you miss them, be sure to
recalibrate so that the next milestone is achievable.
Learning from Mistakes
The most resilient organizations take risks. Of course,
not all risks pan out. By treating failures as opportunities for learning, they ensure that the organization will
be stronger and better prepared to take the next risk.
One way to understand your organizational resiliency
is to graph your past organizational changes (see Figure
2). This gives you a quick window into whether or not
you have been taking small steps. Table 1 provides an
example matrix of past organizational changes.
The following six questions will help you draw your
own graph:
1. What is the average tenure of your employees? This
becomes the length of the x-axis. So, for example, if
the average tenure is five years, your x-axis will be
five years from 2009 to 2014. If the average tenure is
six months, your x-axis will be from March 2014
through September 2014.
2. How many people does your organization employ
today? If you have employed more people in the
past, what’s the maximum number during the
period of interest? These two numbers determine
the scale you use for the y-axis. The top end is the
maximum number of employees.
3. How many major organizational changes have
been attempted or implemented during this
period? List them.
4. For each change, how many people were impacted
in a significant way? How many would consider
this a major disruption to their day-to-day activities?
Note this on your list.
5. For each change, when was it announced?
6. For each change, has it been completed or
abandoned? If so, note the date.
Finally, plot each change as a rectangular shape on your
graph. The height shows the number of people affected
and the length shows the duration.
Now that you have your graph, let’s examine what
it means for organizational resiliency. Here are some
sample organizations to use for comparison purposes.
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Vol. 17, No. 17
©2014 Cutter Consortium
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EXECUTIVE UPDATE
Figure 2 — Past organizational changes.
Table 1 — Example Matrix of Past Organizational Change
Organizational
Change
Employees
Affected
Fully
Implemented
Merger
7,500
Jan 2007
Mar 2009
HQ Relocation
1,850
Jan 2009
June 2010
Major New
Product Line
4,000
Sept 2010
Jan 2013
New ERP System
10,000
Oct 2013
Ongoing
UNDERESTIMATING THE COST OF CHANGE
Figure 3 shows two changes of long duration and high
impact, which were ultimately abandoned.
Organization A has low resiliency. “We tried that once”
can be heard around the water cooler. Major organizational changes in Organization A are announced with
great fanfare. People and budgets are assigned, posters
printed, and presentations made. Unfortunately, most
of the energy expended occurs at the beginning.
Leaders at this organization underestimate the human
challenges of organizational change and are not prepared to address them. Some projects are abruptly cancelled. Other projects simply fizzle, never to be spoken
of again. Employees here have learned that their leaders
are willing to spend a lot of money on organizational
changes, but do not have the determination to persist
when things get tough. And nobody wants to participate in large-scale change projects, fearing that their
career might be negatively affected.
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Announced
Any new change will be viewed with cynicism. The
best course of action is to learn from the past. Current
leaders need to take ownership of the current situation.
Without blaming individuals, leaders can examine
prior projects to determine what went wrong and
how the organization can implement future changes
differently. Until personnel can acknowledge and
openly discuss mistakes and problems, prospects
for progress are poor.
IMPATIENCE WITH THE PACE OF CHANGE
Figure 4 shows a set of overlapping changes with
medium durations.
Organization B never has time to catch its breath. The
leaders are drawn to the latest and greatest ideas and
don’t seem to gain full benefits from the changes
they’ve already implemented.
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BUSINESS TECHNOLOGY STRATEGIES
Figure 3 — Organization A sample graph.
Figure 4 — Organization B sample graph.
While Organization A suffers by underestimating
the costs of change, Organization B suffers by underestimating the time required to fully implement a
major organizational change. Once Organization B
experiences the first wave of benefits, the next course
of change commences.
resiliency; they are building higher and higher levels
of stress. Eventually, they will be unable to adapt to a
new change.
Instead of trying something new, this organization
could benefit by asking questions about the changes
already implemented. Have they reached their full
potential? If not, what minimal investments can they
make to harvest all the benefits? If so, what did the
organization do right, and how could it leverage that
success?
Figure 5 shows frequent, small changes with space
in between.
By not spending time to institutionalize changes that
have been made, Organization B runs the risk that
the changes will be undone over time as priorities and
personnel shift. Further, employees are not building
Vol. 17, No. 17
PATIENCE AND EFFECTIVE PLANNING
Organization C is building resiliency. By implementing
frequent, small changes, the organization is learning to
be flexible and adaptable. Organization C has learned
to be patient with the process of change and to recognize that people adapt more rapidly to smaller-scale
changes. The leaders of Organization C are willing to
take small steps, pause, learn, and repeat. Over time,
employees will consider continual change as the norm
and will not be alarmed by major changes.
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EXECUTIVE UPDATE
Figure 5 — Organization C sample graph.
Figure 6 — Organization D sample graph.
AVOIDING MAJOR ORGANIZATIONAL CHANGE
WHAT TO DO WITH YOUR GRAPH
Figure 6 is the most scary of all. Organization D hasn’t
attempted a significant change in years. No organization
can avoid change forever. Inevitably, change will come
— whether initiated internally or externally. And when
change comes, no one will be ready. Organizations, like
people, do not build resiliency for change simply by
resting.
No matter what you discover in your graph, you’re on
the road to discovering the current level of resiliency in
your organization. No matter the shape of your graph,
every organization can begin to build resiliency by celebrating success and learning from failure. The single
largest stumbling block to resiliency is fear of failure.
Organization D can begin to build capacity for implementing change by tackling something relatively small.
To assure success, only the highest performers in the
organization should be assigned to lead and participate
in the project. Project success is measured and monitored on a frequent basis, with top-leader performance
reviews tied to success.
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Here are two more questions to ask:
1. When was the last time you celebrated a success?
Describe it. Most managers rely on formal recognition to celebrate success and forget the power of
personal acknowledgment. The biggest impact
you can have on people is personally thanking
them and describing how they made a difference.
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BUSINESS TECHNOLOGY STRATEGIES
2. When was the last time you helped others learn
from a failure in a constructive way? Describe it.
Sadly, very few managers have a good role model in
this area. Too many people have observed managers
who get angry, attack individuals, and assign blame.
This behavior ultimately crushes risk-taking.
The first time I try something and fail, it’s a learning
process. If I do the same thing the same way a second
time — with the same poor result — it’s a mistake.
Resilient managers know how to distinguish between
the two.
CONCLUSION
Organizations that adapt to change successfully are
more resilient than organizations that struggle with
change. In summary, resilient organizations:
Experience less stress.
Have a smaller increase in stress when confronted
by change.
Take less time to recover and return to baseline
stress levels.
Resiliency builds over time by the way an organization
responds to change. Avoiding change does not build
resiliency; in fact, avoiding change reduces resiliency.
The most resilient organizations seek out small ways
to continue to improve. When implementing organizational change, they:
Vol. 17, No. 17
Take small steps.
Celebrate progress.
Learn from mistakes.
Whatever your history, and whatever the size of
your organization, you can build resiliency.
ABOUT THE AUTHOR
Sheila Q. Cox is a Senior Consultant with Cutter Consortium’s
Business Technology Strategies practice. She helps organizations
build their only sustainable competitive advantage — their leaders and their culture. Ms. Cox is highly valued for her expertise in
guiding organizational change that crosses functional, national,
and cultural boundaries. She combines a strong focus on business
objectives with a light hand in facilitating executive teams. Clients
appreciate her tenacity and humor and often comment that her
coaching has helped them achieve exceptional results. Ms. Cox’s
consulting approach begins with the common vision and goals
that capture the imagination and mobilize the spirit. These goals
are realized through integrated plans with achievable milestones
that simultaneously transform people and processes.
Ms. Cox has over 30 years’ business experience in management
consulting, leadership training, and executive coaching. She
is the founder of Performance Horizons. Previously, Ms. Cox
was a Senior Manager at Nolan, Norton & Co., an IT firm of
KPMG Peat Marwick (now Bearing Point), where she assisted
Fortune 500 executives in developing and implementing
strategies for performance improvement. Ms. Cox’s work there
included business process reengineering and organizational
change management. She has also chaired two Vistage CEO
peer advisory boards in the greater Baltimore area. She can be
reached at [email protected].
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Up Mission, Hewlett Packard, Intelsat, Lucent
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ACERCA DE SHEILA COX
Sheila Cox es Consultor Senior de Cutter Consortium
para la práctica de Tecnología de Negocios y Estrategias
de Transformación Digital. Sheila se especializa en
ayudar a las organizaciones a construir la única ventaja
competitiva sostenible: sus líderes y su cultura. Sheila
Cox es ampliamente valorada por su experiencia
guiando el cambio organizacional que atraviesa límites
funcionales, nacionales y culturales. Ella combia un
fuerte enfoque en los objetivos de negocio con una
gran habilidad para facilitar equipos ejecutivos. Sus
clientes aprecian su tenacidad y sentido del humor y a
menudo comentan que el coaching que Sheila les
ofrece les ha ayudado en el logro de resultados
excepcionales. El enfoque en el coaching de Sheila Cox
comienza con una visión común y las metas que captan
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cumplidas gracias a la integración de planes con logros
medibles que simultáneamente transforman a las
personas y el proceso.
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Sheila Cox tiene más de 30 años de experiencia en
consultoría de management, entrenamiento para el
liderazgo y coaching ejecutivo. Es fundadora de
Performance Horizons. Anteriormente se desempeñó
como Gerente Senior en Nolan, Norton & Co., firma de
TI de KPMG Peat Marwick (Hoy Bearing Point) donde
brindó su ayuda a ejecutivos de algunas de las Fortune
500 en el desarrollo e implementación de estrategias
para el mejoramiento del desempeño. Su trabajo
abarca la reingeniería de procesos de negocio y
administración del cambio organizacional. También ha
presidido en dos ocasiones el consejo de asesores del
CEO de Vistage, en el área de Baltimore.
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