Ring changes positively

By VIKKI BLAND

Most people have heard the phrase "a change is as good as a rest". But when that change happens in the workplace, the adage doesn't gel. Change at work happens for many reasons.

Companies move, upsize or downsize, merge or acquire, change culture or chief executives, introduce new cultures or technologies.

The ways in which employees find this change unsettling are almost as varied.

They can worry about job security or feel guilty if they keep a job when others don't. Some fret about being asked to work differently or with new people.

Career climbers watch the impact of a change on their career prospects and management goals.

Kevin McCaffrey, a partner for IBM Business Consulting, is amazed how often people in the midst of change fight for the customer they work for, or the staff they manage, before themselves.

"But that's how it should be. As people move higher through the corporate pyramid they become staff and customer advocates."

McCaffrey has spent 20 years helping companies and their employees to survive, manage and benefit from significant corporate change - an area of consultancy known as change management.

He has also had plenty of experience countering change management foul-ups.

"The scariest changes occur in the public sector and in organisations implementing big information technology projects.

"If you combine the two and have a government department implementing a big IT project - well, that's about as bad as it gets."

The nature of McCaffrey's business means he can't name names, but he says one New Zealand public health organisation spent five years struggling with government-pressured change which was opposed by its workforce, senior executive and board members.

"It took an act of Parliament to force the change, and during those five years the organisation struggled to deliver services to people who needed it," he says.

McCaffrey says New Zealand also suffers from itinerant CEOs who come in on a career path and serve three years before moving on to larger countries.

"They make disruptive changes without change management, then leave," he says.

The risks of this are significant. While most managers understand it is desirable to get employee and customer "buy in" to change, few realise how crucial it is.

"Poorly managed change can and has destroyed shareholder value, lost a business its people, customers and money," says McCaffrey. He says a change manager may have to fight against change where it is ill-advised.

"We once told a board they were mad. Their rationale for wanting to move a business to another city was because their [very good] CEO wanted to move there. In the end, they listened and didn't make the move."

Despite these examples, McCaffrey says New Zealand organisations are constantly changing and the change management skills of managers are high as a result.

"Kiwi managers are thought highly of internationally for this reason. And there is expectation of change management competency for senior positions here."

As a result, he says businesses now use external change management consultants as facilitators, monitors and integrators of an agreed change management plan.

McCaffrey says strong governance and fast action are the most important aspects of successful change management. "People do not come to work thinking 'we haven't needed any change management for a while, it's about time we had some'. When change happens, employees typically feel lost, scared, and fearful."

Nor are customers immune to change fright. "If your customers are ringing up saying what the hell's going on, you have taken your eye off the [change management] ball," he says.

John McGill, a senior consultant for remuneration and performance consultants Strategic Pay, says mergers and new executive teams are a stressful change because "something you were doing yesterday was right and now you are being told it is wrong".

His advice to people on the receiving end of that is to remember that jobs are never guaranteed to stay static. "No one is owed a job. People get by through being flexible and fitting in. Resistance to change will cause problems."


Pharmaceutical manufacturer Glaxo SmithKline is a good example of a business that managed a staff restructuring change in a dignified way when it closed a rural manufacturing plant in the early 90s.

"There were high levels of consultation, the CEO gathered people all together and gave it to them straight up.

"Local firms were engaged to help people through the process, and the company had a good mixture of incentives for helping people into new jobs while encouraging them to stay at the closing plant to the [last day]."

He agrees with McCaffrey that public service organisations probably need the most change management practice, but says some companies are so good at it they manage to keep people employed while dropping their salaries. "I have seen it done by agreement. The company opens its books to staff and gets very honest about their financial situation and what they can pay."

But he warns employers not to deal with resistance to change with financial incentives. "You can't give everyone a 20 per cent bonus and then expect them to work the way you want them to.

"There are few jobs that are driven by pay. People look for other things."

CHANGE MANAGEMENT: TIPS AND ADVICE

FOR MANAGERS

* Know the roles of the senior team and their responsibilities.

* Establish strong, swift-acting governance for the organisation, whatever state of flux it is in.

* Put someone in charge; move to protect customers, people and money from any negative impact of change.

* Don't over-complicate change management planning.

* Execute a simple plan quickly. Create certainty as quickly as possible. Discuss the positives widely.

* Tell staff and customers as much as you can, when you can, as soon as you can. Treated fairly, most people accept and support change.

* Think about how different people might react to change; demonstrate to these that you know what you are doing by describing a plan of action and execution. Most importantly: clearly explain the case for change to staff, customers and shareholders.

* Accept not everyone will be happy with change.

FOR EMPLOYEES

* Try to concentrate on your job and customers rather than the change. At the same time, have your own plan and develop your own questions.

* Consider what you want from the change and what you are prepared to accept. It may be you have had one change too many. If so, accept it and move on. Your discomfort does not mean the change is a mistake.

* If you have concerns, describe the views of colleagues and customers as well as your own. Say what you see.

* Ask yourself what you want to achieve.

* If you are not being heard, don't broadcast a complaint; go up a level. Stay rational. You can't be shot for making an observation.