black timberland Change Management
Daft one of the country’s recognized academic leadership experts raises the question, “What kind of people can lead an organization through major change?” A Turn A Round restructuring qualifies as major change and requires transformational leadership. Daft points out that this type of leader is characterized by the ability to bring about change through innovation and creativity. This type of leader motivates people to not only follow their lead but to believe in the vision of corporate transformation, the need for revitalization, to sign on for the new vision and to help institutionalize a new organizational process.” Daft points to four principles in discussions about leading an organization through major change. These four principles are the foundation of the restructuring Turn A Round process.
A “Transitional Performance Dip” is common when introducing major change accompanied by a culture shift. Performance most commonly gets worse before it gets better. There are four phases of the transitional dip with associated cause. They include:
Denial Confusion exists, feelings of being overwhelmed, acting like nothing is different checking out are common employee reactions in this phase. Communication and sharing of information is critical to overcoming this type of employee reactionAcceptance Renewed energy starts to become evident, optimism appears and doubt begins to dissipate. Excitement and risk taking become evident. This is when the vision must be restated and shared with every employee taking the time for full explanation and answering all questions.
Commitment Discretionary energy is released. Employees become action oriented toward new goals. Ownership of the vision is now company wide. Rewards and reinforcement are essential during this stage.
The length of time or “depth width of the dip” depicting this phenomenon cannot be accurately predicted due to the complexities that determine it. Factors contributing to the length of time before the change efforts begin to show improvement can be impacted by the following factors:
Magnitude of the structural changes
Success of the communication to all employeesCritical mass of the company itself
Competency of the middle management group and their experience with structural and cultural change
Competency of the executive staff and their people skills
Effectiveness of leadership at all levels
Severity of the financial crisis or level of financial success
The restructuring change process begins with the strategic restructuring of the organization, which is required to “Stop the Bleeding.” This process starts with the immobilization of the old culture. This is mandatory, as introduction of change into any existing culture is difficult at best. Introducing change into a losing or stagnant culture is almost impossible. This change must deal with organization theory, social psychology and business history. It must be dynamic and include the introduction of fresh new
leadership. This is a behavioral process. People can create change but people also resist change. The change process introduced must answer the question, “How do we get from here to there?” The answer to that question is your new vehicle for success.
This vehicle includes the restructuring plan, individual one year departmental plans and every strategic initiative developed by the new management team. Most importantly,
this new vehicle is submerged in the empowerment theory releasing individual employee initiative. The plans must be unified, simple, consistent and universally understood by everyone. Most of the change that has been introduced must be induced change versus autonomous change. Autonomous change has a life of its own. It proceeds due to internal dynamics and follows its own course. It is not easily controlled as it forms its own dynamics. Induced change is calculated and planned. It can be controlled if buy in is generated through sincere communication and employee involvement. Each step along this path will be accompanied by distinct challenges. As questions arise, management must be prepared to answer openly and honestly. While the old culture is suspended, change can thrive under the right circumstances. It is the responsibility of the executive team to insure that these circumstances exist. OBP may be described as the wheels of the new vehicle. This process will carry the organization on to new heights, new accomplishments. Organizational behavior has its roots in organizational theory and group dynamics. People are the most important ingredient to every organization and the organizations behavior. People and how they are treated will reflect the organizational characteristics, the way it acts and interacts with its own people.
Empowerment, the decision making process and the communication channels are examples of how the organization interacts with its people. Organizational behavior is not easy to change. That is why it is so important as mentioned earlier to immobilize the old culture to introduce change. In other words, changing out management does not guarantee change in organizational behavior. You must take proactive steps designed to create new organizational behavior. The new vehicle is part of that. It includes, focused specific objectives, open channels of communication, empowerment and a sincere respect for the individual employee and his contribution to the organization.