Originally published on November 22, 2017
///
Leading change in organizations is one of the most important
competencies of leadership, but is often an activity filled with frustration
and disappointment. The literature contains a plethora of advice on how to
successfully manage change in organizations. However, it often fails for very
specific reasons. At HSNA, not only have we led successful change in large
organizations, but by providing an independent extra-organizational objective
examination of the rationale for change, we can provide leadership with an
important perspective of how prepared and receptive the organization is to the
new vision, and help create buy-in and urgency amongst the organizations
employees for the change.
There have been many failures of change management
activities in companies. DaimlerChrysler and AOL–Time Warner mergers failed
because the cultures of the two organizations were so different. Compaq, a
computer company with a rapidly acquired market share, was eventually acquired
by Hewlett Packard. Lessons learned from this situation included the inability
of leadership to align their strategy with shifting market conditions. And in
all examples of failed change management activities, lack of effective communication
has been recognized as a substantive reason, independent of other issues.
Change management is about moving an organization from a
current state to a future state that results in that organization becoming
better at meeting their vision and mission in a more effective/efficient way. A
number of highly regarded change management processes have been developed
(Kotter, J., 1996 [1]; Deming, .E.W., [2]; Ferrazzi, K., 2014 [3]; Lewin, K.,
1947 [4]; Bridges, W. [5]; The Organizational Project Management Maturity Model
(OPM) [6]; The Psychology of Change [7]; etc.).
Change management is about leadership (creating the case for
change), organizational culture (why should we change), communication
(articulating the need for change and creating buy in for the change from all
individuals in the organization), and constantly monitoring the progress of
change and iteratively adjusting course to reach the future state.
Historically, leadership at many organizations, whether
corporate, nonprofit, or academic, has largely been self-oriented,
individualistic, tactical, knowledge-centered, incremental and concerned with
status/title and income [8]. Successful change management leadership requires
alignment with the organization, being a strong supporter of teamwork,
strategic thinker, competence focused, innovative, and motivated by ethical
fulfillment.
One of the most successful basketball coaches of all time,
Dean Smith, encapsulated his personal views of what constitutes effective
leaders [9]. Most of these are strategies that he employed as a coach.
Effective leaders possess the ability to create sound strategies for their
teams of business. They understand and devote significant time to the
recruitment of good people who wish to improve their personal skills and are
strongly aligned with the company or team’s philosophy; this is called the
“Hire Smart, Manage Easy” philosophy.
These leaders also understand that whether they like it or
not, they lead by example. Since change is an ever present condition in
business, effective leaders understand the importance of being light enough on
their feet to adapt to changing conditions. And last, but certainly not least
important, they are fastidious in honoring their commitments, admitting their
mistakes and take responsibility for their failures [9].
Kotter recognized one of the most fundamental issues as to
why change management fails- “People don’t change a minute before they’re
ready” [1,3]. Crisis is often a reason people have to embrace change, but they
often do so reluctantly. Leading positive change in a crisis requires the
ability to see beyond the “fire of the moment” and maintain the long-term view.
Institutional culture is important- most organizational cultures are
hierarchical, autonomous, competitive, individualistic, and expert centered [8].
What is required is a collaborative, team-based, service-based, mutually
accountable and customer centered culture, where all members of the
organization are convinced of the need (value) of change and are excited
partners in the process. One approach to this is to “decentralize” change,
engaging all individuals in groups, with an individual from the group who joins
others like them to aggregate all feedback from all of the groups in a cohesive
way [3].
In academia, there are special issues that make change even
more challenging. Deep change typically takes 10-15 years, while the reality is
that high level administrators turn over every 5 to 7 years. Deep change
therefore does not happen unless their successor carries forward the
initiative; unfortunately, almost every new leader has their own vision and
begins anew a strategic planning process to develop their roadmap for change.
The culture of higher education rewards individual
accomplishment & reinforces such behavior. Competition to move their issue
up in the pecking order can lead to paralysis, especially as leadership turns
over and priorities change. Faculty and staff leaders tend to have narrow
focus, and/or more often, faculty administrators, and staff are unaware of the
initiatives even in their own areas. The good news is that there usually is an
interest in change, but large numbers of stakeholders and multiple initiatives
that are constantly being introduced can destroy capacity to implement
meaningful change.
Communication with respect to all phases of change
management is critical. It is important for all employees to understand the
current state of the organization, the future vision of where the company wants
to go and why this process will benefit them both from and individual and
organizational perspective. Effective communicators excel at listening,
delivering ideas, love interacting with people throughout the organization, are
open and non defensive in their interactions with others, have a sense of humor,
hone their presentations, and understand nonverbal behavior patterns of
ourselves and others [9].
Lastly, one must constantly measure the change occurring,
reevaluating progress and making necessary course corrections. Leaders need to
agree on a small number of priorities that are aligned with institutional
mission, regional needs and the collective shared interests of internal
stakeholders and create synergy and partnerships with them. Change can be
incremental or radical [7]; incremental change is the easier to accomplish and
keeps individuals engaged and excited. Remember it is vital to celebrate
incremental wins along the way. A series of incremental changes when
accumulated together can lead to a larger (more radical change), and can move
the company to the new state that all have agreed is required. It is also
important that change is recognized a process, not an absolute, and that if all
individuals in a company are true partners in the change process, the
outcome(s) will be successful and create added value at both the individual and
organization level.
[1] Kotter, J. (1996). Leading Change. Boston, Ma: Harvard
Business School Press.
[2] Deming, W. Edwards (1993). The New Economics for
Industry, Government, and Education. Boston, Ma: MIT Press.
[3] Ferrazzi, K, (2014). Managing Change, One Day at a Time,
Harvard Business Review, July-August issue.
[4] Lewin, Kurt. (1947). Frontiers in Group Dynamics:
Concept, Method and Reality in Social Science; Social Equilibria and Social
Change. Retrieved from http://hum.sagepub.com/content/1/1/5
[5] Bridges, W. (1991). Managing Transitions: Making the
most of Change. Reading, MA: Addison-Wesley.
[6] Managing Change in Organizations: A Practice Guide
(2017) www.pmi.org/ChangeManagement.
[7] Seven Principles of the Psychology of Change (2017)
https://www.prosci.com/change-management/thought-leadership-library/the-seven-principles-of-change-management
[8] Kirch, D. (2102). Transformation of Academic Medicine.
Presentation to the combined meeting of the GREAT and GRAND AAMC group’s annual
meeting.
[9] Smith, D., Bell, G., Kilgo, J., and Williams, R. (2004).
The Carolina Way. Penguin Press.