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January 2005
Removing the Pain from Big Organizational Change
By Deb McClanahan, BroadBandHR Consulting
As business in Silicon Valley picks up, causing many organizations to change their internal operations, it’s
helpful to step back and review the top best practices related to managing major change initiatives. Change is
often painful, because we don’t complete the upfront planning necessary for a smooth transition. However, the
primary factor impacting successful organization change is the active participation of a key executive champion. I
can’t overstate the importance this has on the success of your change initiative.
Successful organizational change also typically involves cross-functional teams, detailed preparation, and
regular follow-through based on metrics established at the beginning of the process. These teams also know their
processes cold, execute their roles in a timely manner, and learn from past attempts, building the lessons into
future efforts.
In addition to these high-level philosophies, you should focus on the following four areas when managing change
in your organization:
Common Language
While you might think that everyone in your organization clearly understands what’s happening, that’s often not
the case. Frequently, a new organizational vocabulary is necessary to ensure that everyone understands the process
and the outcomes. A glossary of commonly used terms is very helpful—especially when new “TLAs”
(three-letter acronyms) are involved. The clearer your definitions are, the easier it is to develop metrics for
measuring success. Of course, some definitions will change over time, particularly as the process moves forward.
However, the earlier your organization understands—and can articulate—the change parameters, the
better your chances are for moving forward.
Alignment
To ensure that the change initiative positively impacts your organization’s business, the changes must align
with actual business objectives. An exception to this is regulatory-driven modifications, such as Sarbanes-Oxley.
Often, a clear, “line of sight” understanding of how the new organization contributes to a business’ success is
missing. Obtaining alignment and then maintaining it as conditions change is difficult and time-consuming. Tools
for optimizing business processes claim to make this easier. However, an adaptable infrastructure like the one
offered by Change Companion, a startup in Woodside, California, is often a better solution.
Common Process
The use of a common method helps keep everyone on the same page. Specify the common elements of your process up
front, keeping the number small to allow for local variations that ensure a robust process for each environment.
The best change-management initiatives are consistent without being restrictive—and the steps are transparent
throughout the organization. This is often where global organizations experience the most pain, thinking a common
approach equals a common metric. However, that’s not the case. The same change initiative may include increased
revenues for one region and customer satisfaction in another. Global organizations need to implement lean, lithe
change processes that apply equally well throughout the operation.
In Silicon Valley, organizational change processes are often determined by consensus. However, it’s best to
have a process owner; one person in your organization responsible for moving the process along and resolving
impasses. Ideally, this person is also the executive champion, thus having the organizational capital to push
toward consensus and completion.
Two-Way Communication
Many companies embrace communication as a basic value, but it’s important to remember that frequent two-way
communication is essential when undertaking a major change initiative. It ensures that more people are involved
and that they understand what’s happening. When developing your process, consider including the following
communication options:
- Regular updates to a large portion of the organization, enabling them to observe first hand how things
are changing and help solidify the changes within the organization.
- Significant communication between the design team and champion/owner.
- Regular milestone meetings.
- Open feedback to the design team, ensuring that the entire population has an opportunity to give feedback.
This can be an extremely potent and often reveals key success factors.
If you have a team designing or implementing the changes, it’s crucial that the members behave like a team.
They should treat each other and the project champion with mutual respect. The team can do everything right and
then destroy the positive momentum by demonstrating a lack of respect for their champion or those affected by the
change. Questions to consider when assessing the team’s effectiveness include:
- Do the team’s early interactions indicate that they need training in team skills?
- Is the team using its new common language correctly, or have they developed a “slang” approach that’s less powerful?
- Have you removed all possible and potential obstacles to the team’s early success?
- Have you introduced the change in a positive way that makes everyone feel like they’re a part of the team?
Summary
Even if you’ve been involved in a major organizational change in the past, a regular, thoughtful review or your
organization’s processes will both accelerate and improve the results. Following these best practices also ensures
that key personnel are actively involved. This, in turn, creates crucial marketing “stickiness” that prevents these
employees from jumping ship to your competition as the market picks up.
ADeb McClanahan has 20+ years of industry experience. She founded BroadBand HR Consulting in 1996, specializing
in helping companies find topnotch people and fine-tune their recruiting processes. BroadBand provides HR and
organizational development services, either as an adjunct to internal resources or before the establishment of
onsite HR staff. BroadBand also provides expert opinion and expert witness services in employment, immigration,
and other cases to major corporations and law firms. Their customer service, commitment, and expertise have enabled
them to establish lifelong business relationships with their customers. For more information, visit
www.broadbandhr.com or call 650-312-8138.
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