Employees Must Understand Change

The previous blog stated that employees must change or die. This may seem to be overstated, but the it is close to reality. Employees must understand change and the necessity for change.

Organizations do not change for the sake of changing. There are several factors that make change necessary.

First, technology is changing. There are many engineers and computer geeks sitting around thinking of innovations to make tasks easier and more efficient. Companies that embrace these changes will surge ahead of their competition. 

Second, markets are changing. Things that are popular and marketable yesterday are not popular today. Things that are popular and marketable today will not be popular tomorrow. Inventors and innovators will rule tomorrow's market.

Third, society is changing. We live in a very informed society. Companies must be in tuned with society and adapt. 

Fourth, there is more competition because of globalization and this will continue to increase resulting in an increasing need for change.

Finally, change will also be necessary to keep products and services relevant to the local and global markets.

Change in organizations over the past two decades has been significant and is often traumatic. Powerful economic forces at work and will continue to grow stronger. As a result more and more organizations must reduce costs, improve quality of products and services, find or develop new opportunities for growth, increase productivity, and develop a more efficient workforce. Many organizations have adapted to the changing conditions through significant change and have positioned themselves for a bright future. But the change efforts of many organizations has been disappointing leaving wasted resources and burnt-out and frustrated employees.  To help navigate successful change, John Kotter developed an Eight Stage change process for organizations. 

Since 1996, when Kotter wrote Leading Change, his change model has become the standard road map of change for organizations. Organizational change requires all employee participation to be successful, therefore it is important that all good employees understand Kotter's road map to organizational change.

1. ESTABLISH A SENSE OF URGENCY

Many employees resist change because they do not see the need for change and are satisfied with the status quo. Kotter is convinced that one of the major obstacles to change is that employees do not see the urgency for a change. This is the necessary starting point. Never underestimate the strength of the forces which reinforce complacency and status quo.

2. CREATE THE GUIDING COALITION

It is difficult, if not impossible, for one person to make lasting effective change by themselves. A team with the right composition, level of trust, and a common objective is an essential part of change--especially in the beginning.

3. DEVELOP A VISION AND A STRATEGY

Vision is a concrete picture of the future that shows, in some detail, why employees should strive to create that future. A good vision clarifies the general direction for change, motivates people to the correct action, and helps coordinate the actions of the organizations's members. 

4. COMMUNICATING THE VISION

Failure to communicate vision is either the inability of employees to understand the vision or a general resistance to a different vision. A challenge of effecting change is the ability of the change team to answer all questions about the change. This takes time and a lot of communication. Kotter lists several keys to communicating the vision for change: make it as simple as possible, use metaphors and examples, use multiple communication forums, repeat the vision and repeat then the vision,  model behavior that is consistent with the vision, address any inconsistencies that undermine credibility, insure two-way communication.

5. EMPOWER EMPLOYEES FOR BROAD-BASED ACTION

Employers will not help or can't help if they feel powerless. Communicate a sensible vision to all employees, insure that structures* are compatible with the vision, train employees as necessary, align all information and personal systems** to the vision, and confront employees that undercut needed change.

6. GENERATE SHORT-TERM WINS

Wins help see that change is good. Wins are noticeable to the whole organization, they are unmistakable as wins, and they are clearly related to change.

7. CONSOLIDATE GAINS AND PRODUCE MORE CHANGE

Credibility gained from wins allows change to all systems, structures, and policies that do not fit together. Hire and develop employees according the the vision. Recharge the process with new projects.

8. ANCHORING NEW APPROACHES IN THE CULTURE

Better performance is created through customer and performance oriented behavior, better leadership, and more effective management in the new environment. Communicate how the new behaviors connect to organizational change. Develop leaders and employees according to new behaviors and environments.

THIS is the change process that most organizations and consulting firm use. It has been used or many years now and good employees should be aware of the process so that they can help be an agent for change.

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This is not a book review per se, but the information comes directly from John Kotter's book, Leading Change (c) 1996.

*Structures refer to the hierarchy of an organization (who reports to whom, etc.)

**Systems refers to a collection of parts integrated to complete a task. Every organization has many systems. Organizations are divided into departments (a system) that is divided into more systems. For example accounting is a system often broken down into systems like account receivable, accounts payable, fixed assets, etc.

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