HOME > NEWS AND EVENTS > NEWSLETTER > DECEMBER 2009 > COMPASS

Compass: Back to Basics:  Change Banagement 101

Jim Ware and Charlie Grantham

"No one likes change except a wet baby" (unknown)

That is one of the dumbest, and most incorrect statements we've ever heard. And we hear it all too often—usually from someone who is advocating careful attention to change management. But, as well-intentioned as they may be, people who believe that change is universally resisted simply don't know what they are talking about.

In every single organization we've ever worked with there are people who are incredibly frustrated with the status quo, and who actively—often desperately—want change.

Let's be very clear:  people don't universally resist change; what they resist, and resent, is being changed, with no control over where, when, or how that change is imposed on them. People don't demand stability—what most of us want is predictability, or at least a reasonable level of personal control over whatever changes they are subjected to.

Fear of change typically means fear of loss of control. Staff who are told their jobs are changing, or the business process they are part of is being redesigned, are usually afraid they won't have the knowledge or skill to succeed in the new conditions. They fear not being able to perform well, or they resent the extra effort it will take to learn the new routines.

The best model we've ever come across for thinking about organizational change is a very simple framework that captures the three most important factors that must be dealt with. It's not everything you need to know about change, but it's a foundation for everything else. And it's easy to remember:

C = D x V x P

"C" is the success of the Change program—the degree to which the intended changes are accomplished and achieve the organization's goals.

"D" is a measure of Dissatisfaction with the status quo. People who are satisfied and happy with the way things are generally aren't supportive of change. "If it ain't broke, don't fix it."

But the important question about this factor is, who is dissatisfied? If senior management wants to change something, but no one else understands the problem (or the opportunity for improvement), there is likely to be active resistance. And if senior management isn't unhappy with the status quo you are going to have a major problem getting their support. Thus, one of the first steps in a major organizational initiative is often making the case for change to those who don't yet see it (especially if they are the ones with the purse strings).

There's a whole body of literature about how to do that effectively; perhaps the most articulate expert on leading organizational change today is Professor John Kotter of the Harvard Business School. You won't go wrong by relying on his two best-sellers Leading Change and Our Iceberg is Melting (links are to book descriptions on Amazon.com).

"V" represents the change leaders' Vision for the future. If it's a compelling one it can even serve to create dissatisfaction among those who previously thought everything was just fine. In the vernacular, it's about showing people the "promised land" of milk and honey that makes even a comfortable current existence seem wholly inadequate.

On the other hand, if the Vision isn't particularly promising, or well-described, it may be difficult to motivate even highly disgruntled employees(or their bosses) to sign on to the intended change. I may be incredibly frustrated with the way things are, but if I don't see a better way I usually just hunker down and tough it out.

On to the third factor:  the Process for accomplishing the desired changes.

The "P" in the formula is a measure of the quality of the Process—the plans for moving from today to tomorrow. Even if there is plenty of Dissatisfaction with the status quo and a compelling Vision of what could be, without a clear plan or roadmap for the journey, you probably won't get where you want to go.

What makes this model particularly valuable is that those little "x's" between the three key factors are multipliers. In other words, this formula means that the success of a change initiative depends on the "product" of the three components (think of each of three variables as a percentage running from "0" to "100"). If any of the three factors is absent ("0"), you're not going to succeed. In contrast, if all three are present and of reasonably high quality, your chances of success are reasonably good.

Finally, the way the model highlights the interaction of the three key factors offers one more insight into how organizational change works. If either the level of Dissatisfaction or the quality of the Vision isn't where it should be, a good change management Process can include actions, events, and communication programs designed to overcome those deficiencies.

If the problems with the status quo aren't clear or widely understood, make the case for change by highlighting those problems; explain to those who will be affected by the change why it's needed, what benefits it will produce (the Vision), and how it will affect them. If the Vision isn't clear or widely accepted, include activities in the Process like brainstorming sessions, focus groups, or futures research to develop the Vision more completely.

Finally, there's one other change management principle that's been implicit throughout this discussion, but should be stated clearly:  few people actively resist change that they've been part of shaping. If employees' voices and ideas are heard as the change is being designed, they'll not only feel valued and listened to, but the odds are the change will be higher quality in and of itself.

Please send your comments directly to us, or post a comment on the blog version of the newsletter. We look forward to learning from you.

©Copyright 2003-2008 The Work Design Collaborative, LLC. All rights reserved. Website development by InMotionMedia, Inc