company culture

Eight steps to achieve sticky change in your organization

Originally published on January 16, 2015 as a Guest Column in The Globe and Mail: http://www.theglobeandmail.com/report-on-business/small-business/sb-digital/innovation/change-is-the-new-status-quo-embrace-it/article22447422/

Change sucks, let’s be honest (even for a guy like me who gets bored in his sleep). Doing things differently is difficult. Re-learning, re-thinking and, most importantly, getting people to go along with your new regime is a task fraught with peril and potentially dogged resistance.

But there’s no denying that change is a constant in life and often inevitable. We live in an era of social change, market change and technological change that add up to 24-7 turmoil. This means change is no longer a specific event that we can anticipate or plan for. It’s a continuing process that we must live out daily.

With the New Year upon us, I want to focus on how to embrace change and make constant evolution a more achievable resolution for us all.

Having read through a series of articles on change published over the last 20 years, I’ve been struck by one thing that hasn’t altered much at all: the success rate of change initiatives. It appears that historically only 30 per cent of corporate change initiatives succeed. A .300 batting average might get you into the Baseball Hall of Fame, but it’s not an acceptable success rate to any owner, manager or CEO trying to keep their business ahead of the curve.

In my opinion, change initiatives are almost always defeated by a problem of definition. By “definition,” I refer to the act of determining what success looks like at the end of the process. Case in point: not long ago I sat in a client’s brainstorming meeting and the exercise started with a broad, sweeping proclamation: “Something has to change here. Sales are not where we want them to be. We need ideas.”

Sadly, objectives like these are too broad and ambiguous, to succeed.

Through a series of simple questions, I helped the group drill down to focus on a more tangible definition of success. First, how far off-target are dollar sales? Second, based on the amount of dollar sales required, how many new accounts are really needed to close the gap? Third, how many people should be tasked with acquiring the new sales? And, finally, what geographic area should these sales be drawn from?

Within 15 minutes we had moved from a broad-based need – sales – to a specific definition of success: “We need six people to bring in a total of 12 new accounts from a 10-kilometre radius of their office within one year.” This is a well defined and achievable goal.

Most importantly, this focus identified that the real problem wasn’t sales. Lagging revenue was just a symptom of the real problem: inappropriate marketing. Given its model of big-ticket sales, the business’ focus needed to change from costly, ineffective awareness marketing to targeted, one-to-one initiatives supported by sales training.

Definition and focus are the all-important, overarching fundamentals of every change process. Once success is clearly defined, I have developed these eight steps to achieve sticky change:

1. Define stakeholder and organizational needs.  Identify, support and engage the people on your team who are going to be affected by change. Address their motivation, their practical and emotional needs, and their readiness for change. This information will help you craft a compelling vision for the project outcomes, secure senior-level support, and map out a thorough project plan.

2. Identify measures of program success and appropriate rewards.  Major milestones and specific metrics need to be established, with goals being used to bring focus and clarity to the outcomes you wish to accomplish. This creates alignment across the organization, provides for greater levels of accountability, and establishes a framework for celebrating success or making course corrections.

3. Design the change program.  Successful change programs align with and can be integrated into the company’s culture. Building a link between a change initiative and the organization’s current values, vision, mission and processes will leverage existing attitudes and strategies. This will substantially increase the impact and longevity of any change.

4. Reduce obstacles and barriers up-front.  Identify all potential obstacles and address them early on. Map out the stages of the journey your organization and team members will experience, and develop a plan for managing and navigating through each stage. In this way, clarity will replace ambiguity, and acceptance will overcome apprehension.

5. Deliver the program elements.  Support change with robust project and communications plans. Change, by definition, is about doing things differently, so it requires more planning, not less. Checklists and techniques for ensuring successful program delivery should be developed and reviewed with regularity, allowing for fine-tuning on the fly.

6. Coach your change champions, early adopters and managers.  Identify the champions who will lead your change project. Change champions make initiatives more credible and more scalable. They will help you build momentum faster. Support them with one-to-one coaching so that they’ll feel more empowered and better equipped to direct their teams through the hurdles of implementation.

7. Communicate goals and results to the entire organization.  Support change initiatives with strong, frequent communications that share short-term gains as well as long-term success. Ongoing communication builds momentum by letting team members know that their efforts, ideas and participation are not taken for granted.

8. Review progress at pre-scheduled team meetings.  Measure performance and share results. Regular feedback is a necessary accountability tool. Formal checkpoints should be determined at the start of the project and scheduled in advance, with Change Champions tasked to lead scheduled review meetings with their teams, and report back to senior management.

Technology is changing our world every day, and it’s not going to slow down to let any of us off the ride. To equip your business for the New Year, adopt one more resolution: understand that change is the new status quo. Embrace it as a fundamental driver of your success.

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‘Tis the Season of Falling Leaves and Growing Budgets

It’s that time of year again. With the turning of the leaves it is officially budget season!

Yes, planning for a new budget begins with everyone eagerly compiling their want list. Like kids creating a birthday wish list, there is wide-eyed excitement and hope that this will be “the” year. And, yes again, as the budget process unfolds inevitably there are a few disheartening adjustments to the wish list.

But, as the chorus of “ughs” begin, I offer some advice.

Rather than being the person who laments over what could have been, try this. Focus on leveraging one of the largest resources you have – your people.

Focusing on your people means focusing on your engaging your team with a view to driving your bottom line. Why?

  • Engaged people are more productive.
  • Engaging your people will increase productivity.
  • Engaging the hearts and minds of your people will help your company to recoup some of the $450 billion in lost productivity annually due to disengagement.
  • Engaged employees contribute to customer retention.
  • Engaged employees deliver revenue growth.

We all know it is easier to have existing customers buy more than it is to attract new customers. Research indicates the cost of customer acquisition is on average between four to ten times more expensive than customer retention. Investing in engaging your employees can be beneficial for your customer retention strategy.

The Disney Institute and McKinsey Company recently reported companies whose people consistently offered an exceptional customer experience realized a 2-percentage point advantage over their peers in revenue growth along with an increased employee satisfaction and engagement of 30 percent. Imagine what customer experience could do to your bottom line.

Through increased productivity, customer retention and revenue, you will be creating your own budget increases … freeing up more time to go outside and rake!

Are your people fully engaged? Here are a few tips to get started.

Ten Tips for Increasing Engagement:

  1. Develop inspirational leaders
  2. Hire motivated people
  3. Ask for input
  4. Do change well
  5. Provide learning opportunities
  6. Encourage calculated risk taking
  7. Get to know your people as individuals
  8. Deal with non performers
  9. Be true to your company values
  10. Celebrate success

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Ready. Aim. Fire! The rallying cry for successful change initiatives

We all know that the only constant is change. And with about 70% of all change initiatives failing what that means in today’s challenging business climate is that, while all the more critical, it continues to be challenging to make change happen.

Even after thorough and proper planning change initiatives commonly meet reactions from employees like “that’s not the way we do things around here” or “this is the latest flavor of the month”. One thing I find that companies struggle with and that would make your change initiative more successful is creating and bringing to life a compelling vision for change.

A compelling vision is more than just having a meeting where you share an acronym with a logo and a catchy tag line for the undertaking. For a vision to truly be captivating it has to be motivating and inspirational so that people eagerly move toward the new destination created by the vision.

Part of being a good leader is being able to create and communicate your vision. For significant change initiatives, leaders need to be masterful in creating the vision of the new destination. This takes skill, time and repetition of the message. Leaders also need to be authentic about challenges to be faced, commitment needed and what to do if people don’t feel up to the task because being on the bus but not being an active participant is not an option. Consider for example the programs that both Zappos and Amazon have in place for paying employees to quit.

One of the most commonly missing pieces I find when crafting a compelling vision is creating a “burning platform”. The burning platform makes it clear that staying in the current position isn’t an option. Change is uncomfortable. What leaders need to do is make it more comfortable to move forward than to remain where you are currently.

So how do you create the burning platform that is inspirational? Let’s break it down…

The burning platform for me is visually depicted as a wooden bridge that acts as the transition between what your business has been and what it can become. The wooden bridge has a very deep canyon below and the bridge is on fire. Now imagine you are standing in the middle of the burning wooden bridge. As the fire continues to burn it becomes more and more risky to stay standing on the bridge. The art of effectively creating the burning platform for change is enabling people to be brave enough to walk forward to a place unknown.

To be successful leaders must:

  • Make the vision clear and compelling drawing people forward enabling them to overcome their natural fear and resistance to new and different things
  • Ensure forces are stronger drawing people forward than their inherent desire to return to what is familiar and comfortable
  • Create a sense of urgency around making change happen

An example of where this was well done was a leader in a segment of the quick service restaurant industry. It was faced with the challenge of creating the compelling need to change while being a leader in their category. To create the need for change the point of comparison was reframed. Rather than being satisfied at being a leader in their category the gauntlet was thrown down that it wanted to be the leader in the fast food restaurant overall industry. That completely changed the landscape. The goal was clear. The company wasn’t number one but it could see the taillights of the industry leader and now all it had to do was close the gap. The sense of urgency came from the fact that the industry leader was moving forward. The vision was clear, the rallying cry went up and the company was able to drive change with this renewed focus.

One thing that companies can do to significantly increase the success of their change initiatives is create a burning platform. Once the vision is clear you need to delicately set the torch to the platform to create the sense of urgency around the need for change compelling people to move forward. This is one area time and time again I see as an opportunity for companies to be more successful with the change initiatives.

As you begin your strategic planning for 2015 ask yourself: Are you ready? Have you thoroughly planned out your change initiative? Is the aim of the vision clear and laser focused? Is your vision compelling including a burning platform for change that is really on fire? These questions will help lead you to achieving greater success with your change initiatives.

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