The fear of change...

Bruno Schenk, October 2022

Change Leadership: How to drive change in your organization?

We are living in a fast-changing world – no one could have predicted the shocking, unexpected or bizarre events which have impacted us from late 2019 until spring 2022. We have already faced many personal and business challenges, and due to the accelerated globalization, the changing eco and related business systems, and the fight against global warming all in parallel, things have not been made any easier.???

The Covid pandemic and the invasion in Ukraine have remained in the headlines recently. Some events, for example, have been caused by health-related matters, some have a political background, and many businesses, families and individuals have been confronted with hard-hitting facts, which have changed the way things have needed to be done - or more precisely, how things must be done in the future.

Despite these many tragic events and losses, there is often something constructive that we can take from these happenings. But we need to ensure that we zoom out and look at them through a wider lens. How can humans cope with such big events? And more importantly, how can humans set priorities? Both in our personal and business lives, we are in an interesting, yet quite tumultuous decade - only history can tell if we made the right decisions and set the right priorities.

Many of us, including myself, are faced with a situation that we are not used to. Even though I am normally super optimistic, I need to find motivation and the important balance for what really matters. I know that there is only so much I can influence and at some point I just need to accept that I need to live with certain situations. ?

Perpetual change

According to the IMF (International Monetary Fund) there have been five global recessions since World War II: 2020, 2009, 1991, 1982 and 1975. Each one forced significant change for businesses. However, it’s not just negative events that force change. The first IBM PC and the creation of the world-wide web, which bookmarked the start and the end of the 1980s, could also be considered as world-changing events. Looking forward, advances in quantum computing could potentially break all modern encryption technologies, forcing a major rethink in how we conduct electronic transactions. My point is that major changes or disruptions will continually take place and organizations that are unable to change are extremely vulnerable.

The ability of an organization to adapt easily to changes is clearly beneficial. Yet, how organizations adapt to this transition process is based on the circumstances and also on the leadership at the helm – and how they enact this change.

Change does not happen without people, and as we know, people are not machines, thankfully. Leaders feel, dream, have passions and harbor doubts. In his book, “Managing Transitions: Making the most out of change”, author William Bridges articulates this well when he says: “In other words, change is situational. Transition, on the other hand, is psychological. It is not those events, but rather the inner reorientation and self-redefinition that you have to go through in order to incorporate any of those changes into your life. Without a transition, a change is just a rearrangement of the furniture. Unless transition happens, the change won’t work, because it doesn’t take.” I also like the simple, but very powerful image from William Bridges below, it shows the 3 phases that humans undergo while adopting change. The first phase: letting go is crucial, often we do not want to let go of our work, often because it's not needed from the perspective of an individual or team. There is a fear of losing something that we have been used to.

Communication and nudging are crucial

Therefore, outstanding communication, buy-in and an explanation as to why, is essential to get to the next phase. The neutral zone is the most difficult, and for some this phase is short because they follow others or simply accept the change. Others need further help and effort to change, they need to acknowledge the need to change and find their own way. Help can be provided from change agents, leaders and managers at all levels in an organization, additional coaching and mentoring might be required. Once individuals and teams are reaching the 3rd phase, (called the new beginning) change is visible, and the acceptance and support of the new vision becomes accelerated. However, having people moved in the new beginning zone, is zero guarantee that change will happen as anticipated, or sustain after a first quick win. Change needs to stick and therefore we so often hear the quote “changing is a marathon, not a sprint” – so true. Humans want to see results, they follow the leaders, and if they do not follow the steps or behave differently, there will be a negative impact. Change needs time, and change is only effective when the communication is transparent, the vision and actions have been explained, and the working culture allows flexibility and agility.

Another point of view

Recently I had the privilege to join an INSEAD executive training program, where I met Prof. Spencer Harrison . He shared extremely valuable insights on change, culture and corporate behaviors. Spencer outlined also very clearly what has changed in the last decade related to change theories, methods and approaches. His theories even partly clash with my beliefs and my understandings influenced by the work of Prof. John Kotter (in emeritus). Kotter’s approach of change is rather top down, influenced by hierarchy and change agents, alongside his famous 8 step approach - yet its more accurate than ever and it helps many firms on their disruptive transformations. Of course, Kotter is adopting his change methodology also and his latest approaches and books “That’s not how we do it here” and “Change or Accelerate” are must-reads. Spencer, on the other hand, emphasizes the elements of agility, timing and culture as the important ingredients for change success. I’m not going into the detail of each professor’s work - they have studied thousands of companies and therefore know it much better than I do. However, we can conclude that change is also very versatile, and companies work even in the year 2022 in very different ways, and therefore different change approaches are very much needed.

Culture wins

We all know the famous quote from a unknow source (many claim to be the owner) saying “culture eats strategy for breakfast” – it’s so powerful, and yet often the company’s culture is not set for change. Another wonderful quote I learned from Spencer and want to share “Culture is like the wind. It is invisible; yet its effect can be seen and felt.” – Bryan Walker, Partner and Managing Director, Ideo. Culture is another element, where change can influence the impact very quickly. Let’s assume that a company starts near- and offshoring parts of its operations, this requires a solid change program, managing that culture opportunities across the organization, including its partners. Measurements like the well-known GPTW (Great Place To Work) organization can give you hints about how well your culture and teamwork is being effective and how well teams are connected – yet a culture is nothing written down, it’s what you feel, see and experience, every day.

We better change, before we get changed – can we?

On a practical note, this means that businesses need to put in place structures to guide transition. Think of it as the lines on a road when you change lanes - you know where you are going to because of these markings. This information exchange is only part of the principal. The next phase is speed of transition. There are good and bad parts to this element which includes rapid retraining, bringing in new people and sometimes letting go of people who do not fit the job in order to bring about the changes that need to happen. This is not something I relish but it is a responsibility I accept. As author and academic, Kotter stated, “Leadership is a set of processes that creates organizations in the first place or adapts them to significantly changing circumstances. Leadership defines what the future should look like, aligns people with that vision, and inspires them to make it happen despite the obstacles”.

In other words, change is a given, we all know that, but often we are blocked towards change, due the fear of losing something, rather than striving for the opportunity.

Accelerate customers

Accelerate customers is the vision we established in Switzerland; along with very powerful values outlined in a previous article. This is a significant change but exemplifies this idea that the world is shifting, and we must constantly adapt to its flow. It actually works! This year we will grow in double digits in terms of revenue, despite Covid, a chip-shortage, and a shift in some of the industries we do business in. As we adapt, we are better able to accelerate customers along their own journey of change. This last point is key: we as leaders must articulate our vision, accelerate digital journeys, and put sustainability, value and experience creation at the heart of what we do.

Let me share another William Bridges quote I value: “We resist transition not because we can't accept the change, but because we can't accept letting go of that piece of ourselves that we have to give up when and because the situation has changed.”

Moving forward, we know that we can weather any storm and ultimately adapt – so now we must embrace transition and change and look for the opportunities, rather than live in fear of the compromises.

Finally, I want to add another methodology from Kotter, where he outlines the 4 core change principles. The “we” always wins, as you can see in the simple graphic. It’s a matter of combining skill, creating that culture you need to be successful going forward.

What are some key takeaways from your own change leadership experience? Please feel free to share and discuss in the comments below!

Disclaimer; Content Bruno Schenk and pictures Gettyimages, licensed via Atos, all other sources are linked to William Bridges Associates | Transition Management Leaders (wmbridges.com) and Strategy Execution and Change Management Consultants - Kotter (kotterinc.com)