Stages of Formulating the Change Initiative! By Steve Moghadam
Before implementing any changes in the structure and processes of your business, you need to formulate a change initiative. By going through the following stages, you can do so.
Determining the Driving Force and Purpose of Change
As discussed in the previous section, various factors may cause the driving force for implementing change in structure and system of your business. First, you need to identify this driving force and define for yourself clearly why you have to implement the necessary changes.?
For what reasons do you intend to make changes? Research this need. After identifying the reasons for a change to happen, the following question is raised: ? Where is the point of interest??
Reasons for change determine objectives, and objectives are defined according to reasons for change; this means, before we do anything, we should clarify what changes based on what driving forces are necessary to be applied to get to the point of interest or achieve that objective. After you answer these basic but essential questions, in the next stage, you need to gather a team for implementing the change.
Assembling a Change Team Check what individuals can successfully lead the change process in your organization. See whether you already have such people in your group or not. Some professional companies or individuals have adequate expertise in this regard. You can collaborate with them and during the change, you can use their partnership and counseling in the change process in your organization.
Making changes in an organization is a high-risk situation and professional individuals are required to provide the roadmap and implement the change. Assistance of an expert appreciably influences on reducing this risk and implementing the changes.?
To implement changes, use people who are active and experienced in your industry and who are qualified in identifying the problems and providing a plan for implementing changes in your business in accordance with the field of industry in which you are working
If you haven’t used a professional change counselor, assign a group of people within your system as “the change team” based on size of your company.?
“The change team” is formed based on the driving force of change and its objective.?
Sometimes, the team continues its activity after the change processes are over, but it will be less active. In some cases, the team becomes a subset of a section in the organization and observes activities.?
Build “the change team” using members of all sections in the organization, especially the sections which are more affected by the change process, and while proceeding along with changes, add other individuals from various sections based on what you need.?
Before entering the crisis-making stage of changes, you need to understand the organization and stages of changes. New managers in an organization need to be fully aware of the structure of that organization, the history of their company, the nature of their business and the atmosphere in the market.
The first duty of this team is to examine the conducted research and knowing exactly what changes need to be made in each section, and each member of the group needs to equate these changes in their section.?
After counseling sessions, “the change team” gathers a list of changes which must be implemented in each section; this list is made based on conducted research and knowledge about the respective organization.
At the beginning of its activity, the “change team” coordinates the data with the current state of the organization.
Within the “change team”, select individuals who prepare and formulate “the change initiative or the change roadmap”. The result is a plan with an appropriate, applicable and justifiable schedule
The individual(s) in charge of writing “the change initiative or the change roadmap” may not be necessarily a member of “change team” and they could be chosen from counselors of an organization
Researching Change
In formulating the change initiative, the third stage is doing research to have a more precise identification of problems in an organization, driving forces for a change, and types of required changes. In this stage, you need to look for an answer to the following questions:
? Has the problem for which you need to make changes happened to any other organization that works in the same business as yours?
? What solutions did other organizations find for solving similar problems?
? How did they adapt to the conditions?
The change team may follow the same goal defined before assembling the team, or during their research, they may identify other driving forces and goals for making a change in the organization.?For example, at first sight, the impact of Coronavirus outbreak may seem the same on two automobile companies such as Iran Khodro and Saipa, and the same changes may be considered as necessary ones in both companies because both of them are working in a specific industry. However, these companies are two different companies with different structures, systems and assets; therefore, Coronavirus outbreak will have different impacts on them and the changes necessary for each one will be different.?
The same goes for the tourism industry. Since the Coronavirus outbreak has significantly dried up the tourism industry, it’s necessary to implement changes in the businesses of this industry. A company may implement such required changes through layoffs or repurposing. In contrast, by carrying out more extensive research and evaluations, another company may conclude that human resources are one of the important assets in the company. Therefore, they need to maintain these resources in a different condition so they can continue their activity while using them when things are back to normal in that respective industry.
Both aforementioned examples indicate that research plays an important role in determining the driving force and goal of implementing changes and types of changes required in a company and in a business.?
While researching to determine the driving force and goal of making changes, you need to consider an important matter which is the impacts of a change and its outcomes in both stages i.e. when you implement the change and after you implement it.
You need to know what changes occur in the organization after modifications are done. To successfully do so, create a table in four (4) columns such as Table 1;?
In the first column, list the needs for implementing changes.
? In the second column, in front of each change, write down its impacts and outcomes during the change process.
? In the third column, write down the impacts and outcomes of each change after implementing them.
It doesn’t matter whether the impacts are good or bad. What matters is to be aware of them. So, identify both positive and negative impacts of a change.?
Then, have a serious look at the costs of a change an make a precise estimation of the budget. So,?
The fourth column of the table belongs to the costs imposed on an organization by the respective change.?
When you are done with the table, you have a list of changes which includes numbers and figures. This is an introduction for writing “the change initiative or the change roadmap”
Identifying Obstacles of Implementing Change and Their Solutions To design “the change initiative or the change roadmap”, you need to identify the obstacles of making changes. In this section, your job is very simple because of the table you have at your disposal. The individual or group in charge of formulating “the change initiative or the change roadmap” identifies the obstacles based on Table 1. These obstacles can be related to the structure of an organization, the employed individuals, the geography of a business, the technology applied in an industry, etc. For instance, resistance [to change] among individuals in an organization is one of the obstacles of implementing changes.?
In the stage of implementation, you get to know the reasons why people resist and how to address this issue. After making a list of obstacles, you need to look for solutions. The person in charge of preparing the change initiative for organization must make a list of all possible solutions and hand it over to “the change team” for making decisions.
The solutions must be practical and must be prepared based on the knowledge of your organizational complex. These solutions must make it easy for “the change team” to make decisions. Sometimes, you need to go after standard solutions, and sometimes, you need to use special methods such as guerilla solutions.
Note that smart view is our philosophy in the collection of smart business topics; smart view means looking at standards from different points of view to find the best method and solution according to the respective conditions. We are aiming at working smart and making tremendous progress with less effort. Therefore:
Using a smart view, find solutions to remove obstacles to implementing changes in your organization.
Recognizing the Company’s Culture and Structure in Order to Implement Change
Culture and structure of a company are important factors which you should consider while writing the initiative.
While implementing changes, inspect carefully the relations of employed individuals, their type of socializing and their working interactions with each other. For example:
? Which individuals are influential in decision-making's of the company?
? Is the company run through an individual centered and bureaucratic system
The advantage of formulating a plan by a “change team” consisting of individuals in an organization is that the team members are familiar with culture and structure of their organization, and they consider these elements while preparing the change initiative, but a counselor must review these items.?
Examine the human resources required for the change process and after change and see whether the present workforce is adequate for the job or you need a new workforce.?
Prepare “the change initiative or change roadmap” in a way that unexpected incidents during the change and after are considered as well.?
Defining a Timetable for Implementing Change
Create a timetable like table 3 for changes in your plan. Determine in which time period the applicable changes should happen.?
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Select the right time for implementing changes.?
For example, if summer is the peak of your business activity, any change during that time may inflict irreversible harm – it can be suicidal for the company. Make an extensive chart of all stages of changes, mark your position anywhere on the path, and observe the vision ahead of you.?
According to your needs and perspective, you can create tables for each stage of change, including current state, transition state and future state. Tables give you a more precise, clear and comprehensive perspective.?
Operational Change Initiative
Now that you have great deal of information for implementing changes, design “the operational change initiative” and send it over to all departments in accordance with separation of duties, so each department gets to know its definite task. In “operational initiative”, you need to consider two important points:?
First, you need to be flexible so in case of unexpected incidents, certain mechanisms will be considered to confront these issues. In fact, an operational initiative must be able to carry out risk management.?
Second, “strategy of employees” must be defined in the operational initiative. In other words, the required tasks for implementing changes must be divided. You need to do the task division according to the capacity and human resources of different departments and people involved in the change process.
Employee Orientation Strategy
In this strategy, you need to consider three crucial subjects, including employee orientation, creating an appropriate environment for implementing changes, evaluating the performance of employees
To reach a common understanding of the change process, brief the employees. In fact, you need to proceed while you have a proper understanding of how to manage “the change team” and convey this understanding to the employees as well so they know exactly what role they are to play in the change process.
Define a path to engage the employees with the matter of change; i.e. help your employees understand how to create a viable environment for themselves so they can easily carry out their tasks.
Create an opportunity so the employees can assuredly proceed what they are doing, knowing fully that their performance will be evaluated whether they do their duties out of interest or sense of responsibility, and that their commitment will be supervised and appreciated during the change process.
Implementing the strategy of employees requires the employees to learn it properly.
Trial Run Implement “the change initiative or the change roadmap” in a trial run and a small scale. Most of the times, the plan is tested using simulation software. In that case, the obtained results can be compared to the predicted ones, several errors can be avoided, and it can be evident whether the expected results are obtainable or not.
Running the Operational Change Initiative Up to this stage,
“operational initiative” and “strategy of employees” are prepared. Training employees based on the formulated strategy is the first part regarding implementation of “operational initiative”
Training Employees for Implementing Changes
Keep all members of organization, from the highest to the lowest level of the pyramid in the loop about the required changes so everybody will be informed.
? Train all employees, but you should consider trainings which are specific for each certain department while some departments may have common training.
Inform all employees of their tasks according to the scheduled plan. In addition, make it clear for them how to compensate if they fell behind schedule.
? After starting the training which is carried out based on the schedule, pay attention to two points:?
? First, evaluate yourself constantly to see whether you are proceeding according to the plan or not. This evaluation includes all members and sections.
? Second, receive clear and comprehensible feedbacks out of training your group.
Define a support system along with the evaluation system so your employees can seek help in case of any problem during the change process.?
Consider a training course for the support system in the training plan of your employees
Define the set of required changes in form of taking small steps, and in order to create an appealing environment and prevent employees from feeling concerned, celebrate after going through each stage.?
By creating a refreshing environment, promote this concept that changes are necessary for everybody’s job security. Employees may sense that they are going to lose their jobs. Try and get rid of this fear by creating a suitable environment. The research shows that 70% of failures in the change process is because the organization has failed to brief its employees about the changes and align them with the new pattern.
The important point in training is that the employees should know exactly what elements must change and the reason for this change.?
Previously, it was mentioned in the stage of research and examination before the change that you should identify the possible reasons for which employees may avoid collaborating in the change process. In the following section, these reasons and their practical solutions are stated while highlighting the training.?
The Most Common Reasons for Organization Employees to Resist the Change:?
Fear of losing their job: No matter their position or cadre, employees always have such fear. This fear makes them resist changes and impose significant costs on organization by interrupting these changes. Mention in the training courses that implementing changes doesn’t require layoffs. Basically, it is risky to remove some individuals from the system.
The unknown nature of changes: Sometimes, there is this fear that changes and developments may get out of control. Eliminate this “fear of the unknown” by using the strategy of communicating with employees. Explain to them that the whole path is clear and goals are precisely identified; therefore, there is no possibility of failure.?
It will be impossible to convey the matters properly if you don’t communicate with your employees appropriately and if you don’t take them seriously. Providing drip-feed information creates an unhealthy environment filled with doubts.?
Other companies’ failure in implementing changes: The rumors among the employees around unsuccessful changes in other companies are among the problems in implementing changes.?
In the training section, make a list of unsuccessful attempts in implementing changes by other companies and tell your employees that you are aware of the reasons these companies failed and you have done the necessary predictions to avoid the same pattern. The employees better hear about these matters from you rather than others.
Smart formulation of “operational change initiative” eliminates factors of resistance [to change].
Inability to face the problems: Another reason for the employees’ fear of change is that they think they cannot adapt to the new conditions. Sometimes, the employees believe it will be too difficult for them to adapt and as a result, it will affect their performance and output, especially, in if your organization is setup in a way that workers are only paid based on the result they?achieve. For example, an individual may suppose he/she cannot work with new machinery and technology due to his/her limited education. This fear of inability in competition forces the employees to resist against changes and the change processes will be consequently interrupted.
To eliminate your employees’ fear of inability in confronting changes, you need to emphasize on training them about the support system.?
Concern about falling behind schedule: For most employees, it is a very stressful and tense situation to fall behind schedule and not to be able to deliver on time.
Create an environment for change where employees feel that whenever they get stuck behind the change processes, “the support system” will help them get out of the wood.?
Make sure the schedule of change initiative aligns with your organizational culture; it also needs to be clear and understandable so it doesn’t make any resistance among the employee
Fear of an increase in workloads: It is very possible in the change process for employees to be afraid of an increase in load of assigned tasks
Eliminate this fear of your employees by explaining “the change team” or “the support and training team” clearly
Contrary to popular opinion, positive changes usually decrease reworking and repetitive hierarchy in an organization.
For employees to take part beside you in change process, you should consider the following points:
An employee is obviously unable to implement major changes, but this employee can make recommendations to managers. While managers are the ones who eventually originate the change, but employees also can offer constructive suggestions since they are directly dealing with the activities, and managers can make critical decisions without fear of no desirable outcome. An example of this situation is the manager of “Uber” Taxi company who has generated a great deal of revenue by implementing several changes and expanding activities in various contexts.
After the Changes When changes are applied, “the change team” gets smaller according to the size of the company or an individual takes the responsibility of controlling things and check whether the process of affairs is carried out properly or not. These evaluations and controls continue continuously according to “the change initiative” until implementation of the plan is completely assured. Finally, you need to note that the process of “changes in an organization” are never completely over and these changes have an endless cycle and you should always consider them and look for implementing more recent changes.
In business, stillness means gradual death.?
So, you can never state certainly that you have reached stability and that you do not need any changes anymore. While changes were slower and they would happen time to time in the past, they occur quicker in the present time due to the ever-increasing advances in technology and the expansion of global communications
In the turbulent world of business, the secret for survival and success is to always have a solid yet workable plan of changes. By doing so, you will continually control your brand and be able to retain your share of the market.