Leading Change – this much I have learnt.

Leading Change – this much I have learnt.

My first exposure to the challenges and implications of change management came when I was a serving army officer in the Royal Artillery.? At that time the army was trying to implement a new software programme that would enable the artillery guns to speak directly to forward observer who was close to the enemy directing fire.? Historically this role was done by a human being in a command post, who would interpret data from the forward observers and pass this to the guns to fire.? I watched with interest as the testing of the new software was conducted by the very people whose roles would be eliminated by the change because of the implementation of this technology.? I guess I did not think it through at the time, but as I reflect there was some very interesting change resistors being demonstrated as I heard those working with the new system continually state “I said this would never work”.?

Post-military service, I delved into the study of transformation and change management, gaining first-hand experience at Barclays Bank during the transition of branches to retail outlets. The profound impact on individuals' roles echoed in mantras such as "we need managers who understand sales, not just those with banking qualifications." My involvement with the Halifax building Society during its merger with Leeds Permanent Building Society underscored the complexity of merging two large organisations into a unified brand – both internally and externally.

Over time I have worked on multiple consultancy assignments as a Chief Transformation Officer and change lead and have also taken up C Suite roles within organisations in recovery mode, that were undergoing, or faced with a need for significant organisational change. There are so many lessons and reflections I could share because of all these experiences, as we all know there are reams and reams of insightful text on the benefits of effective change management and transformation. But what led me to write this short article was a conversation I had during one of my mentoring relationships recently, during which I was asked the question ‘which out of all of the change tools and methodologies would you say have been the most valuable to you’.?

So I thought in addition to sharing them in that conversation I would also capture them within this article and hope that those of you that currently work in transformation and change management, or have senior leadership role, may concur with my assessment.? I also hope that any new leader into business who is faced with leading significant organisational change, may be able to apply the tools I am about to highlight with some success. Just to reinforce I am not saying these are the best, just some of the ones I have found most practical to apply and have given me the greatest return in trying to influence others thinking during change.

Before unveiling my three tools, let me articulate my guiding principle for change management. I perceive change management as the deliberate application of a structured process and tools to lead change systematically and achieve desired outcomes. It transcends mere desire and inspirational leadership, necessitating a methodical approach to navigate an organisation's transition or transformational goals, processes, or technologies. In addition to being people-centric and worker-driven, effective change management requires a blend of skills and traits, including environmental mapping, external analysis, strategic thinking, organisational design (target operating models), understanding cultural dimensions of change, and proficiency in systems and process re-engineering.

I am not going to describe in detail the tools or models themselves, I shall leave that to the reader to conduct their own further research.? What I would like to do is explain how I found the tools useful and in what way I have applied them.

McKinsey 7S

The McKinsey 7S Model is a strategic management tool developed by consulting firm McKinsey & Company. It offers a holistic framework for analysing and improving organisational effectiveness by examining seven interconnected elements that collectively shape an organisation's ability to achieve its objectives.? The model emphasises the interdependence of these elements and points that an effective organisation aligns and integrates them to ensure harmony and success. Organisations can use the McKinsey 7S Model to diagnose issues, identify areas of misalignment, and strategically plan for change to enhance overall organisational performance.

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It is within a change environment that I have found it particularly useful.? The interconnection and interdependence of each of the 7S remind us all to clearly that if we are progressing with change in one of the 7S then we must recognise that this isolated change will have implications for the other six S.? Therefore, our change transformation plan must have workstreams/deliverables and change outcomes defined for all the 7S.? All too often I have seen change to strategic direction implemented, with little change consideration in other S areas.? My reflections from using this tool:

1.????? A new strategy will unlikely be delivered without some changes to organisational structure – it takes courage to change it but ignore at your peril.? By not changing structure and roles we potentially fall into the trap of assuming the roles and staff delivering against the previous strategy can easily adapt into new ways of working.? Change of structure is a powerful message that signposts to individuals – things are going to change around here.? Sometimes strategy change can just be seen as words in a deck or empty rhetoric and does not create the urgency we need amongst our people to embrace and drive the change required to meet new strategic direction.

2.????? The S's of Skills, Staff and Style (Leadership) are often considered as the softer S of this model.? I find that these important elements can be forgotten in the change plan, often because they are not tangible in many ways.? Put them to the forefront of the agenda by explaining 7S concept.

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Change Kaleidoscope produced by Hope Hailey & Balogun (2002)

The Change Kaleidoscope Model is a dynamic and innovative approach to change management, designed to navigate the complexity and fluidity inherent in organisational transformations. Developed to address the intricacies of change, this model views the process as a multifaceted kaleidoscope, where various elements interact to create a unique pattern. By acknowledging the diverse facets of change, including cultural, structural, and strategic dimensions, the Change Kaleidoscope Model provides a comprehensive framework for leaders and organisations to understand, plan, and implement successful and sustainable change initiatives. This model encourages a holistic perspective, fostering adaptability and responsiveness.

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This model has helped me on so many occasions challenge organisations and leadership teams on the ambitions of their change plans.? I have used it to facilitate discussion and pose challenging questions to leaders, to get them to really think about the potential success or failure of their planned change.? It leads to the question; how ready are we for this change, and what must we do to mitigate the risks highlighted when the change is viewed through the kaleidoscope lens. My reflections from using this tool.

1.????? First start with the piece in the pie preservation – this conversation becomes a positive strengths-based discussion, as we review the elements within our organisation we wish to keep and not change.? It sends reinforcement message to staff that there are legacy aspects to the business that are valued.? In addition, it helps identify capabilities and strengths that can be leveraged during change implementation.? Finally consider preservation within the context of the business model – what critical elements, if not managed correctly during the change, could cripple the business?? The conclusions may be that those elements are left alone in the first phase of change or at least put into high governance control structure to ensure risks are quantified and minimised.

2.????? The combined conversation and assessment of the pie elements Diversity, Capability, Capacity, of the workforce, will lead to an honest conclusion and shared understanding about the state of readiness of people in the business to make the change successful.? It is the ultimate “Gateway” sign off for a “go “no go” decision.

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Crisis Celling and Apathy Barrier

I came across this years ago and have been unable to locate the source, so apologies if I have not given credit to those that deserve it.? The model is a framework that describes the positions some individuals may take during change. It describes at one end of a continuum, employees being at a crisis ceiling with the change they are experiencing.? In a stressed panic mode, consumed by the change at hand. And the model provides key change intervention, as a formula, that are designed to bring individuals down from that ceiling, remove the sense of crisis, provide safe change.

?At the other end of the continuum, it describes an Apathy Barrier over which employees will not step because they feel no sense of urgency to engage with the change, often due to change weariness or just a general apathy to the desired organisational goals.? Often individuals feel so safe in their position that they resist the need to change.? That sense of safety coming from ignorance about the change or their own perceived sense of power in the organisation to block the change. Again, the model provides key change interventions, as a formula, designed to pull individuals over that apathy barrier.

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What I find so powerful about his tool is it facilitates conversation about those potential change saboteurs, in positions of high influence, who have the potential to completely derail desired organisational change goals.? All too often the individual change resistor focus is on the noisy crisis ceiling, when deeper, under the surface, there sits passive resistance undoing the change below the apathy barrier.? My reflection with this model.

1.????? If you do not hold true to your change goals and plans. And if you retreat when resistance gets too difficult then you might as well not start the change. In my experience some of the most steadfast resistors of change sit on the Apathy Barrier – confident of the need not to change.? If you try to just ignore them and divert the change around them then you can end up creating loud saboteurs of the future.? Who, over time, become increasingly disruptive in their influence, due to unchecked resistance behaviours. “The untouchables”.

?Conclusion:

As I said at the start there are many tools, methods, research, books etc.. about change management.? I hope you find these three as easy and as practical to apply as I have. My last contribution is to refer you to a check list that I think is a powerful reminder of the importance of delivering organisational culture change that is aligned to your change goals.? I guess in many ways it is the Middle S of McKinsey 7S “Shared Values”.?

My top 3 highlighted in bold. The list edited is from Mark S. Babbitt and Chris Edmonds ?- Business Leadership Today:

If the cultural change is to succeed:

1.????? You need Top-Down Leadership Commitment

2.????? Remember precedent can be poison.

3.????? Have more focus on respect rather than results.

4.????? Do not fail to define your values internally.

5.????? Express those values in terms specific observable behaviours.

6.????? Do not make the runway too short.

7.????? Make sure you have a flight plan.

8.????? Build accountability.

9.????? Be aware of the wrong kind of employee turnover.

10.?? Hire for cultural alignment not cultural fit.

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Stephen May

February 2024