Nine Characteristics of Successful Organizational Change
Nine Characteristics of Successful Organizational Change
The ancient Greek philosopher Heraclitus is credited with coining the aphorism, “Change is the only constant in life.” Certainly, things have changed quite a bit since the 6th century B.C. And in 2022, they continue to shift at what often feels like a hypersonic pace.
For American business, the past two years have been a watershed. COVID-19 disrupted supply chains, emptied shopping malls and movie theaters, led to mass resignations, and ultimately triggered across-the-board price hikes. Russia’s invasion of Ukraine caused further shocks to the world economy—the energy sector in particular—and caused even more inflation.
Businesses are responding to the rapidly changing landscape through a variety of means, including:
Moving more activity online.
The transition to online retailing and services has been a trend since the mid-1990s, but 2020 saw it go into overdrive. In the first year of the pandemic alone, online retailing activity as percentage of all global commerce rose from 14 percent to 19 percent, according to a study by the United Nations Conference on Trade and Development (UNCTAD).
Telecommuting and physical downsizing.
Businesses have not only discovered that much of their workforce can work just as proficiently from home as they can in a central office, but that many employees prefer to do so. As a result, companies are now reducing their physical footprint, renting smaller spaces and recruiting employees who can now work from home—from distant markets.
Buying American.
In response to foreign supply chain issues, more and more American companies are looking for ways to buy, and manufacture, here in the United States. Costs for goods “Made in the USA” may be higher than those from China, Taiwan, or Bangladesh, but logistics are much easier to manage and are far less vulnerable to expensive breakdowns.
How your business is responding to these, and other challenges, will necessarily be a function of your business model, your short- and long-term goals, your financial strength, and the demands of your local market. What is universal is that change can be painful. It also tends to meet with resistance. And it rarely happens overnight. Also universal is that, regardless of your industry, company’s size, or its composition, successful organizational change tends to share nine characteristics:
1 - Leaders are transparent about their reasons for change.
Before change is ever implemented, effective leaders clearly explain to their company’s rank-and-file why the changes are necessary, what benefits the changes are intended to bring, and the price of sticking with the status quo. The goal is to frame the shifts as positive, well-considered, and beneficial, not something arbitrary or “change for change’s sake.”
2 - Employees are kept updated on progress.
Notifications include sharing any bad news as well as good. When employees are kept “in the loop,” they tend to feel vested in the activity and are more willing to cooperate and pitch in as needed.
3 - Those in charge tell the truth, and their actions line up with their words.
One thing people at any level resent is being lied to. They don’t like being strung along, gaslit, or blindsided, especially when their livelihoods are on the line. Being above-board, even when dealing with layoffs or reassignments, can be better managed with honesty than with deceit.
4 - Leaders continuously work to improve their own communication and emotional intelligence skills.
Empathy and tact help people feel seen and heard and assist with minimizing resistance during periods of change. Good leaders tend to be good “people persons,” inspiring positivity, cooperation, and loyalty.
5 - People at all levels of the organization are engaged in moving the organization in the new direction.
Change must be a group effort to be sustainable. Like a scull crew, everyone must row in the same direction.
6 - Leaders initiate change when needed.
Some managers only shake things up when pressure from below becomes overwhelming. Conservative to the point of stubbornness, they prefer to live with the proverbial devil they know than risk going with the devil they don’t. But in turbulent times such as these, this is a recipe for failure. A true leader must be proactive, not re-active, and get ahead of change’s waves before they’re pulled under by them.
7 - Great organizations also understand change fatigue.
The human mind craves predictability. There is only so much change people can process over a period of time. Futurist Alvin Toffler recognized this problem more than 50 years ago when he published his best-seller Future Shock. In the 2020s, change is even more rapid, and businesses must recognize and find ways to deal with the fatigue that naturally sets in when workers must accommodate to new ideas, goals, processes, and conditions.
8 - Corporate cultures recognize real, lasting change takes time.
They say Rome wasn’t built in a day. The same goes for business change. Change isn’t an event. It’s a process—one that can take months or even years—to complete. Recognize this and pace your team accordingly.
9 - Great leaders understand they can make or break successful culture and operational change in their organization.
At the same time, they understand that they cannot effect lasting change alone. They must have the buy-in and support of their people.
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Are you ready to institute the changes your company needs to be competitive in today’s tumultuous economy? As corporate culture and leadership experts with decades of experience, we can help you develop the vision and skills you need to lead your business through this era’s most difficult challenges. Contact us today at Laura@ConoverConsulting.com.