Leading Change: Navigation Principles for the Transformation Journey
The five "leverage points for change" identified by Craig McAllister (2004) are timely reminders for today's corporate leaders. They call attention to common perils in the change process, and they provide insight for safely navigating change.
Pain
Successful change initiatives can only begin after there is widespread realization (among managers) that the current situation has become untenable and the company's viability is at risk. In essence, operating the company in its current state must seem more dangerous than embarking on the daunting transformation journey. Not only must an urgent need for change be recognized, it must be acknowledged as such by the vast majority of managers within a company before a successful transformation journey can be expected. Establishing this sense of pain and urgency is essential to any transformation journey.
Process and Politics
A sufficiently-powerful guiding coalition is paramount in large-scale change initiatives. Senior managers form the core, but the guiding coalition should also include other individuals who are not normally considered part of the senior management staff. This blend helps with trust and communication and ensures that the transformation progresses in a direction consistent with the company's strategic plans. The seniority of the coalition ensures that obstacles are removed and resources allocated enabling the transformation to continue unencumbered.
Payoff and Persistence
The payoff for employees comes when the "new way of doing things" makes their jobs safer, more rewarding, and more secure. Interestingly, this is also the payoff for the company because this is the first step toward cementing the changes in a new corporate culture. Culture is manifest in outward behaviors, but it is defined by the shared values, attitudes, and underlying assumptions of a group of people. When people in the company begin to understand the personal benefit of the new way, the corporate culture itself begins to change. Old values and attitudes are challenged (subconsciously) and are replaced by new values that are consistent with the new way. Of course, the guiding coalition can help create the new culture by celebrating successes along the way; establishing symbols, targets, and reward structures that are consistent with the new way; and by refraining from declaring victory too soon.
By using these change management "navigation" principles, it is possible to lead a safe and successful transformation journey that is well-aligned with strategic goals and secured in a favorable corporate culture.
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