Tis’ the Season for Change
Deciding what changes need to be made may be the easy part. Communicating the change, and obtaining leadership and employee buy-in may be the greater challenge. With all the change that businesses face, you might think that organizations would know how to handle change and do it well.
What Do Statistics Show?
HR Magazine says that, according to a report by IBM entitled The Future of Banking, this is not the case. The report indicated that, even though the industry expected radical (emphasis mine) change, managing it was quite a different story.
* 15% said they were very successful at managing change.
* 32% said they were successful.
* 33% said they had some success.
* 15% said they had little to no success.
Research by the Corporate Strategy Board of Arlington, VA, agrees that change is not handled well by organizations, citing a 50% failure rate.
The banking industry is far from being alone in the churn of change. The hospitality industry has also endured its share of change because travel is one of the first perks given up in hard times.
“Going green” has become a mantra for business and citizens, but even it has experienced change in the form of lower prices in areas of recyclables.
Given the changes of the past year in the economy, politics and environment, organizations would do well to understand how to better decide, communicate and implement needed changes.
Why Do Change Efforts Fail?
Flexibility
Many organizations are inflexible. They want to implement change with the finesse of a bulldozer. Driving change without the ability or desire to make needed adjustments tolls the death knell for any change initiative.
Flexibility is particularly important for the small business owner. One thing in your favor is dexterity. Small businesses don’t have the cumbersome layers of management, multiple locations, or ensuring compliance with governmental regulations.
A change endeavor, — a new developmental program, reporting procedure, accounting process or customer service initiative — will not fit every department, every procedure, or even each individual customer or employee.
Solution: CEOs should be certain that current procedures and process are understood. Oftentimes the top executive is the one person who lacks the understanding of workflow, tasks and initiatives. Smaller businesses may need to be careful about ignoring needed changes and bring in another set of eyes in order to obtain a clearer vision. Stay current and keep involved, but avoid micromanagement in the process.