Operating in today’s business world is like living in the land of “Re” — something is always changing and mostly it is “re-something”: re-organizing, re-structuring, re-shaping, re-framing, re-aligning, re-engineering, and the latest term — “re-integration.” People have to constantly deal with the message “we’re changing again.” As such, change has become a constant part of our work lives and a normal function of every leader’s role.
Yet many change initiatives simply don’t work, leaving change agents scratching their heads. Often it’s because insufficient consideration is given to the people side of the change. It’s not that people don’t like change — or inherently resist it — but rather that they don’t like it being mandated upon them.
People Don’t Resist Change, They Resist Being Changed
For change initiatives to be successful, employees need to support and believe in the company’s strategic goals and see clear advantages for both the company and themselves. They also need to know that their contributions are a valued part of the overall initiative. In other words, they need to feel an emotional connection to what the company is trying to achieve and what it means to them personally.
“People want to be part of something larger than themselves. They want to be part of something they’re really proud of, that they’ll fight for, sacrifice for, that they trust.”
— Howard Schultz, Starbucks
Organizations that focus solely on other stakeholders such as shareholders, lenders, and customers and take a pure process-driven, functional approach to organizational change are setting themselves up for a difficult journey. Conversely, companies that integrate a values-based approach into their change process will have higher levels of engagement and buy-in from their people.
A values-driven approach puts leadership at the center of the change initiative. Leaders must model the beliefs, practices, customs, and behaviors they want as part of the culture of their revitalized organization. It is their responsibility to inspire and unite their people to embrace the change and focus on the organization’s strategic goals. In other words, they need the capabilities to take their people to a place they would not otherwise venture on their own.
Successful Change Needs Buy-in at All Levels
But modeling the required behavior will not alone ensure success. The desired culture and human capability needed as part of a transformation must be molded through individual and organizational learning at all levels of the organization. For example, managers need to be equipped with the skills to disseminate the modifications in a meaningful way, encourage dialogue, and motivate their people to adapt to and support the change.
“Companies often underestimate the role that managers and staff play in transformation efforts. By communicating with them too late or inconsistently, senior executives end up alienating the people who are most affected by the changes.”
— Harvard Business Review, October 2005
Therefore, leaders need to create a culture that builds ownership, commitment, and collaboration — and fosters true employee engagement at all levels of their organization. Fully engaged employees have an emotional connection with the organization and its leaders, and are fully committed to the organization’s mission, goals, and strategy.
“Engagement happens when employees feel they are part of something important and have something to believe in.”
— Wilson Learning Worldwide, 2012
Failure to recognize these human elements as a critical part of a change management process risks compliance rather than commitment — and ultimate failure. Disengaged employees resist change, are grudgingly compliant, and often have a “wait-and-see” mindset. If leaders continually state that the objective of a change initiative is solely to create more value for shareholders, it is unlikely that employees will be fully engaged and supportive of the initiative.
“The manager realized she needed to engage them not just intellectually, but also emotionally, so they would become committed to the new approach and understand why it was better….”
— McKinsey Quarterly, April 2012
All stakeholders’ (shareholders’, customers’, lenders’, and employees’) interests must be considered so that employees feel that they are valued and an important part of the re-organization. If this balance can be achieved, the chances of successfully implementing major change initiatives will increase.