Transformation Management – a corporate imperative
Transformation Change Efforts can be forced upon an organization by pressure from an external environment, such as technological developments, loss of traditional markets, government regulation or deregulation, environmental factors, or differences in social & cultural values.
Or change can be initiated within the organization itself, in order to improve the overall organization’s effectiveness and its ability to achieve its objectives.
Whatever the initial stimulus, organization transformation change, in order to be successful needs a planned and systematic organization-wide approach. This approach needs to be based upon sound knowledge of organizational and management behavior, enriched by practical and applied management skills.
Below are some common reasons why so many corporate transformation efforts fail.
- Lip-service commitment from the CEO
The key to any transformation effort is the degree of commitment and involvement of the CEO. He or she must be seen to be modelling the behavior that is called for in the effort. If the CEO talks about “changing people’s attitudes” without modelling the desired behavior, the transformation effort lacks credibility, and is most certain to fail. Also, if the CEO invests time and energy beforehand with his or her senior managers in planning the stage, and shows what he means by example, those senior managers, in turn, should model the desired behavior and thus give early momentum to the effort.
- Adherence to Traditional “win-lose” attitudes
The desired change will fail unless it reflects a “win-win” approach to change. Focusing on scape-goating or blaming individuals or groups for past mistakes severely impedes a transformation effort.
Article continues after this advertisement- Inadequate Involvement of all Levels of Employees
Employees will not believe in the effort unless they have an opportunity to help plan it, provide feedback, experience it (not just hear it), and develop a sense of “ownership” in the effort. Failure to involve employees can lead to a great deal of cynicism about the effort and statements on the grapevine such as “nothing really changed around here,” or “they won’t change.”
Article continues after this advertisement- Insufficient Attention to Middle Management
These employees often see these efforts as “the latest thing or fad that the boss has brought back from the senior managers to whom they report, and they frequently feel confused if the direction of the change seems to bypass them. Sometimes members of middle management are seen as lacking motivation, when the real problem could be due to failure to involve them in the effort.
- Limited support of First-Line Supervision
The effect of the transformation effort is often most severely felt between employees of the younger generation & the older first-line supervisors who have been promoted, not so much for their supervisory skills, but for loyalty & hard work. Unless these supervisors are given some help in re-orienting their thinking, they may have difficulty in adjusting to a changed role in which they may be required to act more as advisors & internal change consultants, than as bosses.
- Inappropriate pace to the transformation effort
In a large organization it can take three to five years to accomplish any transformation effort. The pacing of the effort is therefore very important. The error is to move either too slowly to build momentum and confidence, or too fast thereby interfering with the daily operations and become a taxing and untimely wearing effort.
- Unrealistic Level of Expectations
Given that people basically do not believe they can change organizations, the need for leadership to truly believe that the organization can change is essential. However, changing an organization requires a systematic effort over time. Although signs of change should become evident at an early stage, it is unrealistic to expect bottom-line results in less than two to three years.
- Lack of Interest to Internalize the Transformation process
The Internal change agents play a crucial role in the transformation effort. They provide an objective analysis of the existing organization, train the members in the concept and methodology of change and refine and model the application of the change strategies. However, a crucial element of the transformation effort is the assumption of the change agent(s) role by organization leadership and all members of the organization. If the change process does not become internalized and a permanent part of the functional organizations, the accomplishments of the effort will not be maintained.
- Inability to Use a reliable Diagnostic before Embarking on the Effort
At the beginning of any transformation effort a diagnostic process focusing on the total organization is essential. Sometimes the apparent problems are only symptomatic of other issues within the organization. If the Diagnosis has been well done, it will provide a data base for planning the effort as well as a starting point for measuring progress towards achievement of the objectives of the effort.
- Failure to Ensure that the Organization’s systems Reinforce the Transformation Effort
All the organization’s systems and policies including the reward system must be altered to reinforce the change in behavior sought as a result of the effort. People must be rewarded for acting in support of the change effort. When we speak of the “reward” system, I include the intangible aspects, as well as the purely material benefits. In this regard performance appraisal is a remarkably potent tool for reinforcing the transformation effort.
- The Lack of Measurable Objectives for the Transformation Effort
Because there is so much skepticism about being able to transform organization culture, it is necessary to state specific measurable objectives which everyone agrees will, upon accomplishment, constitute satisfactory achievement and change. Progress towards the achievement of these objectives can then be monitored and feedback given regularly in order to provide support and confidence to those people who initially became committed and worked towards the transformation effort.
- Failure to Communicate the Purpose of the Transformation Effort
An essential element in creating a climate receptive to change is to ensure that the purpose of the transformation effort is clearly understood by all employees and stakeholders and that they are provided with accurate and complete information.
- Inadequate Feedback on the Progress of the Effort from Stakeholders
Since it is never possible to predict accurately at the beginning of the effort which change strategies will work, and which will fail, it is essential to ensure that there is regular flow of progress feedback data to the organization leadership. This will enable senior management and the consultant to modify or discard a change strategy which is not working properly.
- Failure to Select the Most Appropriate External Consultant
Aside from ensuring that the consultant is a professional who has the necessary knowledge, skills and extensive experience in the management of the transformation process, it is essential that the selection process take into account certain factors as: the chemistry between the consultant & the champions of the transformation effort, the willingness of the consultant to confront the senior management with unpalatable information or opinions, & the consultant’s willingness to transfer knowledge and skills internal resources so that he or she is able to withdraw gradually leaving behind the capacity for ongoing renewal.
(Karl is a world-renowned thought leader on OD and HR Management. He has over 35 years of professional experience in international consulting, and has had various client Organizations around the world, including the Philippines. He is the founder & managing partner of Kensington Consultants, a consulting firm with offices in the U.S., Sydney and Bahrain.
Human Resource Innovations & Solutions, Inc., (HURIS) will be executing two of Dr. Larson’s notable programs this August: Driving Organization Transformation; & Strategic HR Shift: Optimizing the HR Role towards Business Results. For more information about these two executive workshops, please visit www.huris.com.ph)
