World Monitor Magazine, #5, Industry World Monitor Magazine, Industrial Overview | Page 49

EXPERT OPINION
it needed to significantly restructure its operations — instituting , among other things , a 30 percent workforce reduction — to remain competitive . In a series of offsite meetings , the executive team built a brutally honest business case that downsizing was the only way to keep the business viable , and drew on the company ’ s proud heritage to craft a compelling vision to lead the company forward . By confronting reality and helping employees understand the necessity for change , leaders could motivate the organization to follow the new direction during the largest downsizing in the company ’ s history . Instead of being shell-shocked and demoralized , those who stayed felt a renewed resolve to help the enterprise advance .
5 . Create ownership .
Leaders of large change programs must overperform during the transformation and be the zealots who create a critical mass among the workforce in favor of change . This requires more than mere buyin or passive agreement that the direction of change is acceptable . It demands ownership by leaders willing to accept responsibility for making change happen in all the areas they influence or control . Ownership is often best created by involving people in identifying problems and crafting solutions . It is reinforced by incentives and rewards . These can be tangible ( for example , financial compensation ) or psychological ( for example , camaraderie and a sense of shared destiny ). functional teams for more than six months . But as the designs were being finalized , top departmental executives began to resist the move to implementation . While agreeing that the work was top-notch , the executives realized they hadn ’ t invested enough individual time in the design process to feel the ownership required to begin implementation . Based on their feedback , the process was modified to include a ' deep dive .' The departmental executives worked with the design teams to learn more , and get further exposure to changes that would occur . This was the turning point ; the transition then happened quickly . It also created a forum for top executives to work as a team , creating a sense of alignment and unity that the group hadn ’ t felt before .
6 . Communicate the message . Too often , change
leaders make the mistake of believing that others understand the issues , feel the need to change , and see the new direction as clearly as they do . The best change programs reinforce core messages through regular , timely advice that is both inspirational and practicable . Communications flow in from the bottom and out from the top , and are targeted to provide employees the right information at the right time and to solicit their input and feedback . Often this will require overcommunication through multiple , redundant channels .
In the late 1990s , the commissioner of the Internal Revenue Service , Charles O . Rossotti , had a vision : The IRS could treat taxpayers as customers and turn a feared bureaucracy into a world-class service organization . Getting more than 100,000 employees to think and act differently required more than just
At a large health-care organization that was moving to a shared-services model for administrative support , the first department to create detailed designs for the new organization was human resources . Its personnel worked with advisors in crosssystems redesign and process change . IRS leadership designed and executed an ambitious communications program including daily voice mails from the commissioner and his top staff , training sessions , videotapes , newsletters , and town hall meetings that continued through the transformation . Timely , constant , practical communication was at the heart of the program , which brought the IRS ’ s customer ratings from the lowest in various surveys to its current ranking above the likes of McDonald ’ s and most airlines .
7 . Assess the cultural landscape . Successful change
programs pick up speed and intensity as they cascade down , making it critically important that leaders understand and account for culture and behaviors at each level of the organization . Companies often make the mistake of assessing culture either too late or not at all . Thorough cultural diagnostics can assess organizational readiness to change , bring major problems to the surface , identify conflicts , and define factors that can recognize and influence sources of leadership and resistance . These diagnostics identify the core values , beliefs , behaviors , and perceptions that must be considered for successful change to occur . They serve as the common baseline for designing essential change elements , such as the new corporate vision , and building the infrastructure and programs needed to drive change .
8 . Address culture explicitly . Once the culture is
understood , it should be addressed as thoroughly as any other area in a change program . Leaders should be explicit about the culture and underlying behaviors that will best support the new way of doing
46 world monitor