How well is your Organization equipped to handle change?

Change is coming at a much faster rate than ever before in the lives of organizations. It is coming from the ever-fast changing demands of the consumer requiring for technology to offer solutions at a much faster rate than before. It is coming from globalization, terror threats be it physical or digital in nature. From global competition, from climate change and sustainability and regulation surrounding it.

Outsourcing both domestic and offshore, and we can now add reshoring to the list as a clear need for a discussion for the change. Along with the need to staying ahead of the competition and emerging markets.

Yet most organization either are not equipped or are poorly equipped to handle the onslaught of change that is coming at them constantly. Most leaders do a poor job of putting a strong budget together in their plan to handle the required changes or they simply do a very poor job of communicating to their organization about the need for change.

By contrast, the leaders that have a clear vision and have communicated the vision to the organization and plan changes required to make the vision possible continue to innovate, thrive and lead their organization to new heights.

A survey conducted by Stragy & Katzenback Center Survey of global senior executives on culture and change management found that the success rate of major changes undertaken was only about 54 percent.

Types of Changes in an Organization

These can be broken down into two types of changes Evolutionary in nature or Revolutionary in nature.

Evolutionary changes are more internal to the organization and are incremental types of changes, or developmental changes or transitional types of changes.

Whereas Revolutionary changes are more transformational in nature and are outward facing and how the organization would make a shift from its current position to the future.

 Incremental Change

Incremental or evolutionary change is internal to the Organization; its two major components are developmental and transitional. Or in other words the first order of change or second order of change

 Developmental Change

Developmental or the first order of change mostly is made to improve the existing processes or create a process where none exist, create such items as training policies and manuals. This change is mainly operational in nature affecting the ongoing nature during the normal operation of the organization

An important point to note here is that this type of change is met with least amount of resistance since this type of change does not challenge the core beliefs of an individual, therefore, participation is better by individuals towards this type of change.

 Transitional Change

Transitional changes primarily occur in the early stages of an organization. These changes may be driven by such factors as the organization signing its first major contract with a customer, obtaining its first major outside infusion of cash or conversely loss of funding or a major order or contract which results in loss of revenue. Or even hiring of a new professional management team or leader would lead the organization to rethink its strategy or the manner in which it conducts its business.

Transitional change is mid ground change to ease the pressure that is put on the organization from the above-mentioned circumstances. Transitional change does not, however, tackle the cultural aspect of change but furthers developmental change to the next level due to outside influences causing the need for the organization to make upgrades to its current operating position. Which could be how to handle layoffs, increase in staff or add more systems to manage the Organization.

 Transformational, or Revolutionary Change

Transformational change deals with the requirement of behavioral change of a team in an organization that drives a cultural shift in an organization. This may result due to internal and external factors. Transformational change is concerned with the mission, strategy along with culture and leadership issues in an organization.

This change type of change is where the majority of the resistance comes into play in an organization. Transformational change challenges the status quo which causes people to feel that the structure which they were comfortable with is now dissolving. This in turns gives rise to a political polarity and posturing which gives rise to winners and losers situation.

Leaders will need to address surfacing and the expression of competing values in response to the proposed change. If this is not addressed and put to bed then the presence of competing values will only serve as a negative catalysis and will hinder the progression of change. Opposing values must be discussed consensus reached and then move forward to the common goal.

Transformational change if conducted correctly can lead an organization to differentiate itself from its competition in the marketplace and leading to a higher employee satisfaction. However, this type of change requires that the leaders of the organization must possess certain traits.      

Characteristics and Traits of an Effective Change Leader

           Effective change leaders must posess interpersonal skills, he must be able to motivate, communicate, build teams, coach, involve people and also reward as required.

These leaders understand the relationship between skills and effective change. The knowledge of change and its related skills will enable leaders at every level to design the change more effectively.

So it is important that a leader set the vision correctly and then access the skills required to implement the vision before embarking on the change. Short of this, change will fail miserably

People follow leaders either out of fear of some form or another or because of trust and excitement for being able to exercise their limits to towards higher opportunity outside their comfort zone.

Effective change leader is a great storyteller, he breaks complex ideas into simple and easy to understand terms that set the stage for collaboration towards a common goal.

Research has shown that companies, where leaders have taken their companies through successful transformational change, have 6.9 times greater return than the average market.

These types of leaders take responsibility for the change and for their actions, plus they give credit where credit is due as a result people are motivated to perceive change as a normal part of doing business.

So for a company to implement a successful change of any nature in particular transformation. Must do the following:

The organizational leaders need to create and understand a clear vision and share and have buy-in from the organization to the vision.

Be committed to the vision and the change

Open channels of communication that are clearly defined to impart information to the organization

Prepare a team leader from the leadership to be the spokesperson for the leadership in implementing the change

Review skill sets for the new organizations and the most effective way to tackle shortfalls in the skill set.

How to reinforce new behavior required to maintain and enhance the changes moving forward.

Change requires a mindset change in the whole organization, the organization needs to become a learning organization where change is seen as a way of life that reflects what is happening in the outside world and how your organization is positioned to address those changes to stay ahead of the competition.

Now the question is how well is your Organization equipped to handle the required changes for you to stay or become a leader in your industry?

Balbir Singh 

CEO Warwick Group International  

“We produce effective leaders that cause positive change”