CHANGE MANAGEMENT

Introduction

We must dramatically improve business results, now, and do it while earning the hearts and minds of our people. To make things still more difficult, “now” has no traditions, no precedents, no time-tested formula. Now has never been seen before.

Nothing is simple anymore. Nothing is stable. The business environment is changing before our eyes, rapidly, radically, perplexingly. Now, whatever we do is not enough. Incremental change is what we used to do: the kind we could manage gradually, with careful planning, broad consensus-building, and controlled execution. Now we must not only manage change, we must create change – big change – and fast. If we stop for a leisurely consideration of the issues, the situation will alter in front of our eyes and our careful judgments will not apply. 

Everything is in question. The old ways of managing no longer work. The organization charts, the compensation schemes, the hierarchies, the vertical organization, the whole tool kit of command-and-control management techniques no longer work. 

Everyone must change. The change will go deeper than technique. It touches not merely what managers do, but who they are. Not just their sense of the task, but their sense of themselves. Not just what they know, but how they think. Not just their way of seeing the world, but their way of living in the world. 

These are the realities of today’s business, and in particular, the telecommunications industry.

What We Must Let Go Of

·        We have to leave behind perfectionist organizational thinking, with its faith in an eternal, universally right way of doing things. Instead, our thinking must be radically experimental. The market place just won’t let us stand still.

·        We have to abandon the management credo, “Get it right, then keep it going” and embrace the credo “Get it right and make it better, and better, and better”, or even “Make it something else.” We must give up the comforting illusion that there is one conclusive solution to any business (or human) problem, and live with the fact that each problem changes virtually overnight, and no two problems are exactly the same, that many problems can only be coped with. 

·        We have to let go of any feelings of despair about people, the despair underlying the fantasy of the perfect organization. It’s easy to sometimes feel that we human beings are essentially unreliable and limited and therefore must be forced to do our duty by chains of command, compartments of function, and lines of authority. But instead we must hold fast to our faith in human beings; the knowledge and belief that we are all eager to learn, and capable of dedication, high spirits, and individual responsibility. 

·        We have to trade in the airy abstraction of ex officio authority for the messier reality of existential authority. We must wake up to the fact that authority is no longer vested in a place on the organizational chart, but in the ability to do a job better for the customer. In most call centers, too many controls and too much supervision stifle the people on the scene. They feel restricted, intimidated, and bored.

·        We have to get rid of the tyranny of numerical accountancy, with its insistence that value is in measurable things, and that money is the measure of all things. Certainly, everything we do must contribute to our business performance. But the best way to measure the value of those contributions is to submit them to the judgment of the consumer, with his many, often conflicting value-demands, not all of them reducible to money-values. Get rid of the practice of if you can’t cost justify it, you can’t do it.

·        We must keep our old adversarial/competitive strategy of managerial betterment, with its slogan, “May the Best Man (woman, product company, idea) Win!” But we must keep it in its proper place. We must also learn a supportive strategy, with its belief that things get better, too, when people are allowed to make mistakes, to learn from them, and to go on to their personal best.

·        We must broaden our age-old devotion to growth to include an equally old but only recently rediscovered devotion to service. In other words, “More is always better” must give way to “Better is always better – for the customer and us.” Reaching “better” can sometimes be measured in numbers, but at other times “better” will remain abstract. 

·        We must get rid of our monistic way of thinking and get used to pluralistic way of thinking. That is, we must see people (including ourselves) not as having a skill, but as being many-sided, as potentially multi-skilled. We must switch from thinking of one-function departments to thinking of transformational teams. In my experiences with call centers, I have recruited people with the right aptitudes from operations, training, IT, and workforce and molded them into human resource professionals. I was fortunate enough in my most recent call center assignment to find someone with training, operations, and human resource experience who was able to think multifunctionally and understood how to integrate separate strategies into a single, more effective one and lead others to the same understanding. 

·        We must abandon thoughts of corporate discipline, and focus on corporate spirit. That is, we must discard the fantasy of a corporate culture of kneejerk obedience and undertake the hard work of creating a culture of learned willingness and individual accountability. A culture with a preference to discipline rather than coach is an example of not only command-and-control but also one of fear as the main motivator. 

·        Finally, and most difficult, we must embrace the great paradox of the human will: that most often, especially in moments of great danger or opportunity, the only way to gain control is to give it up. There is a way of showing that giving up power is actually having it. You do it first yourself.

Failure as a Guide

Failure provides valuable information so that others don’t make the same mistakes. Failure can teach what to avoid and what should be done differently so that the chances of success are far greater.

But still, even with the lessons learned from those that failed, there are well-intended but untrained managers that throw themselves and their teams into change without adequate preparation.

Models as Maps for Change

Several maps and models have been built on past failures and observations of what works during change efforts. Ignoring these models and the wisdom gleaned from them is pure insanity. Models of change are maps for the journey that have been prepared by others that have gone before us. They tell us about the direction we should take, how to prepare for each stage of the journey, and what to expect along the way.

My own personal experiences in change management include huge successes, as well as partial successes and failures. From each, I can confirm that there is a great deal to learn from what has and hasn’t worked.  

Some Lessons Learned

From benchmarking to personal experiences, there are certain lessons learned that any organization, and especially call centers, must be aware of.

1.     Employee performance is more likely to increase when the employees feel supported and understand the change process. Understanding the change model provides a structure that gives employees a sense that change is manageable. Change models forecast the process change will take and prepare people for this.

2.     No change effort should begin without an intended result and how this will be measured. Models of change require objectives to be set, schedules created and budgets to be negotiated. Once in place a change model provides baseline objectives against which actual experience can be measured. This provides reliable data against which to measure and create intervention.

Change models provide a good way to measure how individuals are managing change and what intervention may be most useful. A change model provides an opportunity to measure:

·        The rate at which people are adopting changes (anticipated or slower than anticipated?),

·        Professional efficacy (how effectively they have applied new knowledge and practices),

·        Effectiveness of current key performance indicators and metrics,

·        Budgets,

·        Time.

3.     A change management model describes and simplifies a process in a way everyone can understand. A model creates an intention for change that allows people to consider their role in the process and holds people accountable for their own transition. Not using a change model holds the risk of not achieving the intended change or only achieving it in part.

4.     Change models give people confidence to talk to others about change. Models of change help people make sense of times that feel chaotic and out of control.

5.     A change model helps to identify potential areas of resistance and implement strategies designed to reduce or eliminate resistance before the change process starts. An additional benefit is that a model of change helps to create an effective communication strategy.

6.     Following a structured change model ensures that investments into the project are not lost and that budgets are managed. Investments are not only financial but include people. A change model can assist in ensuring that employees and productivity are maintained.

7.     A change management model engages different professional roles and provides accountability for their role in the success of the change process. These roles include executives and top management, human resources, communication and public relations specialists, supervisors, and training professionals. A model of change provides clarity regarding their role and when they are required.

Key Professional Positions that must be actively involved in change:

·        Self-managers – people who may not think of themselves as managers because they answer only for the quality of their own work. This includes customer service representatives, lawyers, and accountants.

·        Process and people managers – those who answer for the work of others, usually individuals, a team, or group of teams working closely with customers or on a specific process. Examples include cable installers, sales persons, or developer of products.

·        Expertise managers – people whose responsibility is the care and development of a company’s intelligence. Examples include technology managers and managers of human resource development programs.

·        Enterprise managers – CEO’s, division heads, all those with profit and loss responsibility. 

What happens when change occurs, such as reengineering, and management doesn’t change:

·        The three vice presidents (sales, service, and order-fulfillment) at a major computer company were thrilled that reengineered work processes promised to cut product introduction time in half, raise customer retention rates by 20%, and slice 30% from administrative costs in their areas. They weren’t thrilled enough, however, to willingly give up control of their fiefdoms and collaborate. Result: the reengineering effort died a year after its inception.

·        A large pharmaceutical company saw its customers growing more and more annoyed at having to deal with each of its business units separately. The reengineering solution was to integrate the sales and distribution operations of all the units. The unit heads protested, arguing that they had to retain control of these functions. The CEO and chairman refused to act on the necessary changes, afraid of reform’s inevitable disruption. Business was good before the current recession, they argued, and would rebound when it was over. Results: For this company, recession goes on and on.

What happens when management does change:

·        An energy company won the most prestigious award in its industry. However, the CEO knew that past victories would not help the company buffet a new surge of changes sweeping through the utilities industry. This included competition from independent power producers (IPP’s); the introduction of “wheeling” which mandates a utility company with transmission lines in place to allow competitors, including IPPs and other electric utilities, to use its lines; increasing regulatory oversight of rates; and, cogeneration which means a utility’s fixed costs have to be recovered from a smaller customer base. The company faced two main challenges: maintaining sufficient production capacity to service a rapidly expanding customer base, and obtaining adequate rate increases to offset rising operating costs. Unless the company made major organizational changes – and did so quickly – it would need to seek a staggering 36% rate increase to recoup projected costs. The company’s response was as follows:

o  Realizing that the predominant management style was control oriented, and the company’s culture reinforced employee assumptions of job stability and “employment for life”, the company conducted benchmarking studies of other similar utilities. These studies suggested the company was grossly overstaffed. A major reduction in force would be the best way to reduce costs quickly. The company offered early retirement, but those who accepted far exceeded projections, adding unexpected costs. In reality, the survivors were expected to do more with less. Culturally, there was no real change, and the morale plummeted. It became clear that a major restructuring was required.

o  The CEO established job review committees to evaluate every existing position in the company. The committees assessed each position’s value to the overall organization and the qualifications required to perform each job effectively. They rewrote job descriptions to include not only technical skills and competencies, but also personal characteristics, such as flexibility and adaptability. Top management used the output to develop a new organizational structure that reflected 1,150 fewer positions. The CEO then chose a high-risk implementation tactic. He fired everyone, then required all employees (including himself) to reapply for the redefined jobs.  Although the CEO saw the outcomes as positive, he realized the changes had still not penetrated to the root of the problem. Employees were still “doing what it had always done”, operating as a rate-driven monopoly, only with fewer people.

o  As the CEO looked into the future, he developed a vision of the kind of organization the company would need to become. His picture included increased cooperation among the departments and increased understanding among employees regarding the nature of the changing environment. The company set about the task of planning strategy, building a new culture, and developing a clear mission statement. Cross-functional teams of employees experienced week-long marathon simulations designed to increase their awareness of what it meant to operate strategically in a more competitive environment. Each team proposed new projects and each project had to be anchored in frame-breaking strategic thinking. Not only were employees challenged to improve the company, but also to assume ownership of their projects, present their proposals directly to the top management team, and receive immediate feedback.

o  The results included a new set of goals that would require far more radical and encompassing changes than anything the organization had attempted before. Top management decided to use a two-pronged plan of attack to address this challenge. First, the company would need to prepare employees psychologically and emotionally to cope with the coming changes. Second, the company would need to redesign work processes throughout the organization, from the bottom up. Reengineering would discard the current structure and start all over again. 

o  Two separate reengineering teams pioneered the redesign effort focusing on the most complex structure and one with a higher probability of producing cost savings. The teams started with a blank sheet of paper and totally recreated the workflow in their areas, with the goal of simplifying work processes. They mapped out current work processes, then developed plans for a totally new flow of work. This worked so well that the teams were expanded to address every functional area.  Additionally, the major unions (Teamsters, IBEW, AFL-CIO, CWA, AFSCME) brought into the change and worked with management to make it successful (although this required considerable open and honest communication).

Among other lessons learned was that reengineering prescribes actions, not words, and difficult, long-term actions at that, not just one-shot expedients like downsizing or outsourcing. 

8.     A change model provides a focus for all change management activities and helps to align resources within the call center (and entire organization).

9.     There are four broad issues that change, especially integrating and reengineering efforts, must address and find answers to:

a.      Issues of Purpose: a company must ask questions such as, “What for?”, “What is it that we’re in business for?”, “What is this process for, this product, this task, this team, this job?”, “What are we doing here, anyway?”

b.     Issues of Culture: If successful reengineering requires a change in a company’s whole culture, as seems to be the case in many instances, how is it to be accomplished by the same management that did so well in the old culture? If it is true (and it is) that reengineering is unlikely to succeed where the corporate atmosphere is charged with fear (and its twin, mistrust), how do we generate another, better environment – one of willingness and mutual confidence?

c.      Issues of Process and Performance – How do we get the kind of processes we want? How do we get the performance we need from our people? How do we set norms and standards, or measure results – for employee performance, management performance, and the performance of the whole company? Reengineering usually demands radical objectives, leadership, and political skills to realize. But how do we know we have the stuff? What does it take to be a good manager today?

d.     Issues of People – Who do we want to work with? How can we find them from both inside and outside the company? How do we get them to want to work with us? How do we know whether they’re the kind of people we want?

Essential Steps in the Change Process

Step # 1 – Create Controlled Chaos

Before the organization can change, people must change. In order for people to change, they first have to realize what needs to change and why. This first part of the change process can be the most difficult and stressful. When you start cutting down the “way things have always been done”, you put everyone and everything off balance. This evokes strong reactions in people, but that’s exactly what needs to be done.

To prepare people successfully, you need to start at the core of the organization; you need to challenge the beliefs, values, attitudes, and behaviors that currently define the workplace. By forcing the organization to re-examine its core, you create a controlled crisis, which builds strong motivation to find a new equilibrium. Without this motivation, you won’t get the buy-in and the participation necessary to affect any meaningful change.

Key to this step is a strong, compelling message showing why the existing way of doing things cannot continue. This can be done by pointing to the fact that although the company currently holds a recognized and favorable position in the market, the amount and level of competition is increasing and the only way to maintain the top position is to consistently improve and excel in customer satisfaction. And even though over the years the company has invested billions of dollars in infrastructure development and delivers superior, reliable, and consistent services, the organization, through its people, must now keep pace with the technological changes and prepare to outperform the competition. 

Step # 2 – Personal Change

The transition from now to new, changed organization does not happen overnight. People take time to embrace the new direction. In order to accept the change and contribute to making change successful, people need to understand how the changes will benefit them. Not everyone will fall in line just because the change is necessary and will benefit the company. If the people who are doubtful express their views in an attempt to solicit support to stop the change, the change effort can be in real trouble. If such a threat to change appears, there are options to work around the threat. 

·        As part of the integration and reengineering effort, job descriptions are written that best reflect the skill, knowledge, and abilities necessary to perform the job as it is redesigned. This includes the attributes necessary to implement the mission and vision of the company. Using these new job descriptions, all employees are terminated but can reapply for the reengineered job. It is critical that timely, open communications with respect to which jobs had been filled and which remain open. This action will filter those employees who are qualified by skills and knowledge, as well as possess the aptitudes necessary to make the change happen. 

·        As part of the integration and reengineering effort, a measure can be obtained of the gap between the new qualifications and the employee’s current level of qualifications. As an investment in employee development, skill and aptitude development programs can be initiated to assist employees in “catching up” to the new standards. However, employees should understand that they have a defined period of time in which they must meet the new standards, or be terminated.

 “Put the right people, in the right jobs, working the right way”

Unfortunately, some people will be harmed by the change, particularly those who benefit strongly from the status quo. Some people may take a long time to recognize the benefits that change brings. Such situations must be managed effectively to avoid jeopardizing the change effort. 

Time and communication are the two keys to success for the change to occur. People need time to understand the changes and the also need to feel highly connected to the company throughout the transition period. When dealing with the management of change, the process can require a great deal of time and effort and hands-on management is the best approach. Executives and top management must meet with employees, send emails, and consistently keep the reasons for change and new vision in front of the employees. Also, open and honest conversations should be the norm and employees should experience the sincerity, honesty, and commitment of all members of management.  

Step # 3 – Let the Changes Sick In

Do not let employees to be caught in a transition trap where they aren’t sure how things will be done, so nothing ever gets done to full capacity. In the absence of a new way of thinking and doing things, it is very difficult to tackle the next change initiative effectively. How do you go about convincing people that something needs changing if you haven’t allowed the most recent changes to sink in? Change will be perceived as change for change’s sake, and the motivation required to implement new changes simply won’t be there.

As part of the change, you must celebrate the success of the change. This helps people to find closure, thanks them for enduring a painful time, and helps them believe that future change will be successful. You institutionalize a change mentality.

Outline of the Necessary Steps for Change

1.     Determine what needs to change

a.      Survey the organization to understand the current state.

b.     Understand why change has to take place.

c.      Perform bench marking studies of organizations that successfully changed.

2.     Ensure there is strong support from executive and top management

a.      Win the support of key people and stakeholders within the organization.

b.     Frame the issue as one of organization-wide importance

3.     Create the need for change.

a.      Create a compelling message as to why change has to occur.

b.     Use your vision and strategy as supporting evidence.

c.      Communicate the vision in terms of the change required.

d.     Emphasize the “why”.

4.     Manage and understand the doubts and concerns.

a.      Remain open to employee concerns and address in terms of the need to change.

5.     Communicate often.

a.      Do so throughout the planning and implementation of the changes.

b.     Describe the benefits.

c.      Explain exactly how the changes will affect everyone.

d.     Prepare everyone for what is coming.

6.     Dispel rumors.

a.      Answer questions openly and honestly.

b.     Deal with problems immediately.

c.      Relate the need for change back to operational necessities.

7.     Empower action.

a.      Provide lots of opportunity for employee involvement.

b.     Have line managers provide day-to-day direction.

8.     Involve people in the process.

a.      Generate short-term wins to reinforce the change.

b.     Negotiate with external stakeholders (such as employee organizations) as necessary

9.     Anchor the changes into the culture.

a.      Identify what supports the change.

b.     Identify barriers to sustaining change.

10. Develop ways to sustain the change.

a.      Ensure leadership support.

b.     Create a reward system.

c.      Establish feedback systems.

d.     Adapt the organizational structure as necessary (refer to Integration of Work material).

11. Provide support and training.

a.      Keep everyone informed and supported.

12. Celebrate success!!!!

Choosing New Employees

A change process which includes reengineering jobs offers new tools in selecting and hiring new employees. No longer do we look to fill “slots” (and meet a training quota) because we can’t afford to do so. Our screening, interviewing, and testing of potential needs to be based on their ability to contribute to a reengineered community and powerful, productive culture – how likely are they to become a productive part of “we”?

Probe for Values

Screening – if you ask somebody the question, “What did you do last summer?” and they say, “Well, I built an addition on my house.” You say, “That’s interesting, tell me how you did that.” They say, “Well, my father is a carpenter, so he came over and helped me do the carpentry work. And I have a really good friend who’s a plumber, so he and I put the plumbing in together. And I didn’t know anybody who’s an electrician, so I really had to hire the electrical work.”

What kind of behavior do you hear in that description? You hear teamwork, willingness to use resources, ability to learn. It’s the kind of behavior you would want in your call center. As opposed to, “I had a pretty easy summer, I did a little lifeguarding, but basically hung around and didn’t have a whole lot to do.” 

Or, you ask, “What do you do during your time off?” And you hear, “Well, I go online to Lynda.com to improve my Excel skills. I also help out with my church by offering help to kids who want to learn what it takes to work in a real job. I also volunteer at the women’s crisis center. What you hear is a desire to learn and improve, to help others improve, and a willingness to give up personal time for community reasons. This is opposed to, “I just hang out with my friends, play some video games.”

Probe for Cultural Fit

Interviewing – after you have established the level of knowledge and skills based on types of experience, use a behavior-oriented approach to focus on the applicant’s suitability to work in a continuous change environment. 

For Communications Ability

“Explain how you made a certain recommendation to management, and then persuaded them to accept something unprecedented”

Probe for Interpersonal Skills

“Describe how you would resolved a difficult conflict between yourself and someone you work with.”

Probe for teaching ability

“How would you give feedback to an employee whose work is disappointing?”

Probe for ability to confront

“Tell me what you’d do if you were caught between an angry customer and a boss who could help you but can’t stand bad news.”

Probe for self-confidence

“Have you ever asked for a raise? If so, how did you do it and what did it feel like?”

Probe for leadership ability

“When was the last time you felt your authority challenged, at home or on the job, and how did you handle it?”

Probe for adaptability to change, self-reliance

“Do you have and use a library card?

Peer Participation

No longer is it just a job at issue, but belonging to a work team – to a human, value-adding process. 

This is a partial list of possible questions of an applicant. The most effective evaluation method is one developed from an integrated effort of operations, training, human resources, recruiting. Each submits its priorities and principles to a product that represents a concerted, collaborative practice beneficial to all functions but also ultimately most beneficial to the organization. 

Conclusion

Change management involves the use of a methodical, well-thought-out plan that considers change models, bench marking, the successes and failures of other organizations, a great deal of communication, and evaluation of cultural impact.  To a large extent, an organization becomes “what they try.” But try they must, because the business world has no forgiveness for complacency and mediocrity.