Mastering Change: How Companies Can Grow and Thrive (Without Destructive Conflict)

If you ask a group of managers or senior leaders about their frustrations, many of their issues will boil down to getting 'good' employees who do the right things. I argue that this perspective will cause them to 'solve' the wrong problem. Figuring out how to 'get employees to do the right things' will NOT lead to a thriving company. There might be short-term results but long-term success will not happen without a shift in perspective.

Key elements such as the structure of an organization, our values, agreements, processes for decision-making, and the layers of decision-making authority will have a greater impact on company results than hiring and training ‘good’ people. This is good news for leaders! This means that you can build a wildly successful, long-term entity with ordinary people. No superstars are needed. A team of people that work well together with clear purpose and values, are disciplined in their decision-making, and implement the keys to successful innovation and agility will win in the long run.

*Note: This is different from hiring the right person with the skills, aptitudes, and interests that align with a role. This is for another discussion titled Hiring to Leverage Fit.

On the flip side, we know from industry examples that even a winning IP or strategy will not guarantee success because we are learning that the systems of people working within their walls and within their market have a greater impact on long-term success. As Peter Drucker is famous for saying, “culture eats strategy for breakfast.”.

So what is the secret? Take advantage of the opportunity that Change is never-ending

The early stages of a company are characterized as exploratory, inventive, and adaptable, thanks to the energy of a visionary entrepreneur. The company is finding its way.? As organizations grow in complexity and systems, they must evolve.? As things change both externally and internally, problems develop and need to be solved, which must involve good decision-making and implementation. Left unsolved or with poor decisions, the system will disintegrate, and the problems will become more and more chronic until a crisis occurs, forcing radical change like a fire sale, bankruptcy, or salvation with a new owner or investor. Knowing the lifecycle of a company helps us anticipate and know what is normal, what is abnormal and what is a priority to be addressed.

Change is a team's opportunity to excel, adapt, and move beyond their competition.

What are leaders for?

The role of leaders is to create an environment in which good decisions are made and implemented well for both the short and long term.? If only for the short term, we might run out of runway and die; if only for the long term, we might die before we get there. Managing change and solving problems need to be done well. Solving problems is a science with proven methods and organizational structures, depending on the company stage, as proven over the last few decades. Not done well, stress in the system occurs, disintegration continues and the dysfunction is magnified.

Integration vs. disintegration

The solution is creating the pathway to integration, which requires learning the tools and processes to sustain the environment, make good decisions and ensure effective implementation. It is not easy, but it is possible. Companies that set up and maintain this thrive and grow.

Why we cannot do what we have always done

As a company grows in complexity, it needs to change and adapt internally, know what to expect, and monitor and adapt to external changes. Often, this means that the way they have always managed and the culture and systems that have sustained them to date will not fit in the next chapter.

So, how do we change to adapt?

Leaders need to set up systems and create an environment in which problems can be solved with good decision-making. A key part of a good decision is that it facilitates and ensures good implementation. Good decisions must consider the impact on other systems to ensure they are constructive or the impact is mitigated. And it doesn't stop there. Good implementation must also include ongoing monitoring, adaptation, and adjusting because change never ends.

It cannot be done by one person because there is no ideal leader

No one person can make a good decision that ensures effectiveness and efficiency for both the long and short term because these cannot live together in one person. People have biases and limited perspectives. To look to the future and envision a new market, one cannot also be meticulous about a SOP. Good decision-making needs diversity of input and perspectives, which creates another problem. Diversity, by its very nature, creates conflict. Creating agreements and discipline in decision-making that also maximize input and collaboration is therefore one of the keys.

Implementation requires buy-in on the decision, which means all perspectives have been heard and considered. The why, what, when, and who all need to be integrated. Compromise is often necessary and only possible when one can trust that we are all aiming for the same goal and will, in turn, compromise for the well-being of the ultimate desired outcome. The WHY must come first.

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The Importance of Values and Shared Vision

A common set of values and goals help create trust. This trust and mutual respect for each person’s skill and insights enables people to listen to diverse perspectives. Diversity leads to better solutions. Mutual trust also gives us the courage to take risks and experiment with making decisions to solve current or anticipated problems. If we trust vs. fear being thrown off the ship if our experiments or trials don’t work perfectly, this fosters innovation and the probability of moving ahead of the competition. If we focus on the value of learning, we destigmatize failure. Risk is also reduced because we are supporting each other and providing input. We are building potential sandcastles rather than knocking them down. Combined, these energies, as incorporated into who we are, allow teams and companies to move beyond mediocrity.

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Authority, Responsibility, Power, and Influence need the right structure

In addition to good decision-making, there is another element that needs to be in place, and that is the leadership energy to carry the decision through. To carry anything through, we need the authority to do so. We also need to ensure that responsibility, power, and influence are aligned. Who holds the authority for a yes or a no, who is responsible, who has the power to implement or not, and where is the influence? All this needs to be designed into the system so solutions can flow, innovation happens, and companies evolve, stay healthy, and don’t die. This is especially critical as company structures grow and expand.

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How a Strategic Plan could be a waste of time

We can make a great strategic plan but if we don’t follow the methods and account for the dynamics needed to ensure it is a good strategy that will be implemented, it will be doomed before we walk out the door. Keeping our companies healthy and adaptable, in which people will be a part of doing the right things, is the key to success. Leaders need to shift away from trying to get people to do the right thing through authority, power, manipulation, SOPs, or rules. How well is your culture engaging people and mastering change? What perspective do your leaders have?

To grow and scale in value

To grow and scale in value, a team of people must learn how to master change and imbed it into their culture. The best time to start or enhance the journey to mastering change, whether you lead a team, division, or company, is yesterday. The next best time is today.

If you would like to explore how to improve or accelerate your journey, maybe by dipping your toe in the ocean or mapping out your path, either way, it starts with a conversation.

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Book a call

Book a call with me, Leanne Terrace, the guru and guide for scale-ups, and we can discuss your situation and possibilities for you to reach higher value faster while shouldering less weight as the leader.

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Book a speaker for audiences that want to AI-ify for better and faster results, save time, and have more profit and impact.

Leanne is available to speak at your business, at events, or on a podcast. She speaks on how to lead change and build value. Her latest talk is on what leaders need to do to AI-ify their businesses for better and faster results. She also addresses non-profits who want to accelerate and increase their impact.