QUICK Update
OCTOBER 2004 ISSUE

"The 5 P's of Change: Leading Change by Effectively Utilizing Leverage Points Within an Organization"

Craig McAllister

Organizational Dynamics

Vol. 33, No. 3, 2004, pp. 318-328

The author of this article identifies five leverage points for change. Each of these can work independently, but they are seen as most effective when they work together:

  • Pain—"Many people and organizations change only when faced with a level of pain that leaves them without options." The author identifies three general categories of pain: (a) "bad" pain, when the outlook for the future looks very gloomy unless change occurs; (b) "good" pain, where growth and opportunities are outstripping the organization's ability to cope; and (c) "imposed" pain, where the manger decides he or she will not wait for bad or good pain, but will create a situation where change is necessary.
  • Process—"Process is the essence of how one goes about changing the environment." The author recommends the following as a sound process for change: (a) Research problems and identify the causal problems or fundamental opportunities; (b) Identify possible solutions; (c) Communicate, communicate, and communicate; (d) Select and announce the chosen course of action as soon as possible; (e) Execute, execute, execute; (f) Follow-up, re-evaluate, and modify.
  • Politics—"The effective agent of change will factor politics into the equation and effectively leverage it into any change activity." The effective leader must be aware of who are the supporters of the change, who are the opponents, and who are undecided. Coalitions must be built.
  • Payoff—"Too often managers and executives implement sweeping changes in organizations, and never think about the payoff for people affected by the change." Some of the key potential payoffs for change are money, relationships, opportunity and development, and pride;
  • Persistence—"Success is built upon creating momentum through persistent efforts to overcome resistance." Employees need to know if this is another "flavor of the month", or if the change is for real. Leaders must repeat their message frequently and consistently.

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