Article

A quick look at managing change

By Steve Callahan
Practice Development Director

The past year has been fraught with economic challenges that have forced companies to deal with change at an accelerated rate with, for most companies, relatively negative undertones in terms of human and market impact. For many, survival mode has brought to the forefront skills untapped in recent years. With that in mind, a review of change management processes and practices provides a timely refresher on navigating through today’s challenges.

Wilfried Krüger provides an excellent visualization of the various components involved in transformations with the “Change Management Iceberg.” At the surface, above the “waterline,” rests the issue management aspect of change; the part that garners all the attention and yet represents the smallest portion. Below the surface rests the bulk of the iceberg, consisting of three primary modules: the roles played by staff along the continuum of promoters to opponents; the management of perceptions and beliefs; and the management of power and politics. Taken together, these last three aspects represent well over two-thirds of the “iceberg” of change, almost entirely hidden from direct sight below the waterline of issue management.

The greatest challenge in managing change is below the waterline—at the interpersonal and behavioral level. It is here, outside the scope of simple process optimization, that one finds the complexities of power, politics, perceptions, and beliefs. The profound and often confounding elements of the “change iceberg” are defined by an organization’s values, mindsets, and capabilities.

Most change management processes involve four distinct roles:

1. Opponents with negative attitudes and behaviors who require a controlling approach focused on minimizing impact.
2. Promoters proactively supporting the transition by providing a source of cheerleading and encouragement for all.
3. Hidden Opponents, or the “passive-aggressive,” offering support at the surface but playing an oppositional role at a deeper, less obvious level. As opportunists, they can be won over with care, patience, and respect for their perceptions and beliefs.
4. Potential Promoters, or “fence-sitters,” have a generally positive attitude about the change but are not entirely convinced it is necessary or the right thing. Again, with care and carefully informative influence, they may become promoters.

The people aspect of change represents the bulk of the iceberg and is the most challenging because it requires dealing with emotions, beliefs, values, attitudes, behaviors, politics, and perceptions. Focusing solely on the process and technology of change management without in-depth attention to the human element ignores the bulk of where change occurs and increases the risks of failure. There are four models proven most effective in managing people through change:

1. Empirical-Rational, which assumes people change based on self-interests. The model requires that the individual impact be communicated and proper incentive be constructed to encourage them to be positive participants.
2. Normative-Reeducative, which assumes people change to fit the surrounding norms and values. Here, new norms and values must be consistent with the desired change, and time must be provided to allow staff to adjust and develop commitments.
3. Power-Coercive, which assumes people are generally compliant and will do what they are told to do. This overly-simplistic approach relies upon the use of authority and consequences to enact change.
4. Environmental-Adaptive, which assumes people initially oppose the loss and disruption caused by change but are able to adapt over time. This approach requires that the new organization first be established and then this group be assisted in their transition to it.

Most transformations leverage the full range of change management methodologies by blending the applicable parts of each model. The proportions are determined by how the organization is reacting to the desired change. For example, changes facing significant resistance require the strong hand of the power-coercive approach blended with the empathetic assistance of the environmental-adaptive one. For any given change, there is an optimal blend for addressing the diversity of roles played and beliefs held by the affected staff.

Focusing solely on the more simplistic aspects of changing processes and information systems should be avoided because that approach fails to consider deep-rooted cultural and behavioral impacts. Signs of a failed approach can be found in delays, failures, and sub-optimal solutions that require significant investment of additional resources. Conversely, effective change management operates below the surface of processes and systems, looking deeper into the entrenched behavioral and cultural norms. The measures of success can be found in the timeliness of change, employee satisfaction levels, and shifts in productivity.

Change is inevitable. Effective change management demands the use of a rich methodology, incorporating transparent communication with participative techniques, such as employee-driven workshops and collaborative redesign sessions. Lasting change requires the direct involvement of affected parties and depends upon enhancing each employee’s ability to understand the need for change and adapt to it in a way that allows them a sense of choice. Only through understanding, involvement, and choice can a successful transformation occur.