Recently, I met with an experienced CEO, Ray* who is a former client. He’s had a great record of business growth and value creation at his company, with a string of twenty consecutive years of profit increases. That string will likely end in 2020 with the Coronavirus pandemic.
While talking about the changes he expected to make at his company, I asked him “How ready do you think your organization is for this change?”
“Well, they need to be ready, because it’s going to happen one way or the other!” was his sharp response.
My body twitched a bit with anxiety that was familiar, and my stomach started churning. I’ve been a CEO, so I recognize this comment as something that I’ve also said. To put it bluntly, ego was talking when I said it, thinking that I could speak change into existence, due to my leadership position, instead of looking for evidence of my organization’s real ability to create change. Thankfully this time, after hearing this from Ray, I paused, took a deep breath, and then he and I got into a long discussion on best practices leading change.
According to Nina Segura, CEO of Metaspire Consulting and Change Expert, over 80% of business changes fail. That’s a dismal result, and a stat that many leaders fail to consider when creating plans for change. So how do the 20% who are successful do it? They leave their ego aside, put away the bluster, and take a measured, thoughtful approach to change.
They use three steps to lead change in their company:
- Get a frank assessment of the company’s current ability to make a change
- Create a plan for the change
- Focus on what’s in it for me (WIIFM) for employees and customers
Each of these steps have a number of attributes to consider. I will highlight a few.
A frank assessment is created by talking by talking with employees across a wide area of responsibility. The important thing to remember here is that you must seek feedback beyond those who report directly to you. Enlist allies to get this feedback, especially those whose natural way of thinking is contrary to yours. It’s also a good idea to tap informal leaders in your company, those who have influence among their peers, but perhaps don’t have the title. This step takes time, consider leverage experts in this area to accelerate efforts.
The first element of a plan for change is a vision of the company after the change, illustrating the impact of the result. Other essential elements include a structured approach on how leaders will communicate and support the change, resources required and for how long, and whether outside expertise is needed. This plan is initially created with the best information we have at the moment, then iterated as new information becomes available. Our initial plan never survives contact with the market. Expect it to pivot and evolve.
The focus on WIIFM is important when things do go wrong, or the path is harder than imagined. Employees need to know why they’re change their routine, and are being asked to learn new things. Openness and directness are key when communicating in this phase. Employees have very well-developed BS detectors, and will often feel unexpressed doubts that you may have. Customers are a little less connected to you but also need to also understand why, and how long should they expect to see these changes?
In our current business climate, we are required to make changes. How are your changes progressing?
Happy to support you as you consider a new change for your team or organization. Please comment here, call, text or email.
Jeff@COOForYou.com
888-588-0357
*Ray’s name has been changed for this article.