Managing change reduces stress and increases success

By SCOTT SAUNDERS
Strategic Performance Systems

Lately, does it seem like something in your company always needs to be in a state of change just to keep pace in the construction rat race? Are your profits dwindling, even with those new computer technologies touted to improve productivity? Are your people burned out?

Too much change at once is unhealthy. Most of us generally resist the notion of changing our comfort zones, whether it is at home or in business. To make matters worse, when one major change gets started, the creative juices start flowing and we attempt to fix a bunch of things at the same time. The technology wave has magnified this risky habit.

Unfortunately, changes are required to grow and people will always experience some degree of fear and pain during the transition from old to new. Will this ever change? No. Are there ways to make the process less painful? You bet.

I have been involved in a large variety of organizational changes for over 20 years. Most projects were frustrating during the process, but many were inspiring to talk about when it was all over. If you are contemplating significant changes in your company, I highly recommend the following actions as mandatory ground rules to assure your success:

• Commit to implementing only one major change at a time.
  
• Do not proceed until everyone who is significantly affected embraces the change.
  
• Hire a transition management expert, who fits with your team to keep it moving.
  
• Make sure everyone understands the big picture: why you are making the change. Entrepreneurs can be good at this task because it is a selling skill. For example: Are you just trying to run in the same race as your competitors? Are you trying to run in a race by yourself?

Running same old race

If you are trying to get better at running the same old race, you are essentially focusing on internal process or personnel changes aimed at getting more for less. Before making your change: add up how many discretionary man-hours that your team can realistically commit on a daily basis to make it happen. Set up a system to measure this commitment weekly and avoid the natural pressure to put it off until next week.

Case study: One contractor changed accounting software, but not its old transaction control procedures. This caused major confusion, so the contractor hired a business process expert, because the team knew they had no time themselves to do the analysis and rewrites. The consultant held weekly meetings to review and approve 20 new policies. The accounting team implemented procedures, dramatically improving processing efficiencies.

Racing by yourself

If you are trying to run a new race by yourself, may the force be with you! Wouldn't it be great to think you had no competition? Being market-driven is the core of a successful business strategy. Before proceeding: honestly assess if you can generate a shared mental image with your people of where you want to be. In addition, decide how much money your company can afford to invest in re-marketing yourself to be one of a kind.

Case study: A contractors sales were not showing any signs of growth, although market potential was significant. The owner hired a marketing expert who helped redefine the contractors real customers (they were marketing to the wrong decision-makers). Sales tripled over the succeeding few years and still continue to grow.

Leadership character, management discipline

Finally, developing your leadership character and management disciplines are the most important action steps to sustaining your growth opportunities. While working closely with your transition management expert to implement a major change, you can begin learning and practicing these new skills.

When change events are underway people will get much more stressed than usual and tend to fall into defensive or offensive patterns of behavior. This can become a huge barrier to finishing your project. In fact, such behavior could kill it or cause some other personnel-related crisis.

Case study: One contractor made a significant decision that the company's leadership style had to be modified from a command-and-control to a team-driven style. A few transition management experts coached them through the process over a two-year period. It was very painful at times and a lot of hard work.

The company has survived this traumatic change and expects to significantly improve profits this year and into the future. The people in the company are much happier under the new style of leadership.

Effective leadership is the critical ingredient that keeps everything in balance.

Case study: At annual retreats with the management group, one contractor encourages an open discussion about what the team can handle in workloads and where the work will come from to meet the goals set by the group. During the year, the owner is a master at staying in tune with the teams issues and helping solve problems quickly when they arise. Both total revenue and profitability have dramatically increased in past few years and the team behaves like one happy family.

Effective management disciplines (policy and procedure) save time and energy.

Case study: Contractor has totally embraced new computer technologies and networking capability throughout the home office. There is almost a religion about using standard forms (including faxes) only through using the computer. Policy and procedures in the field, project management and accounting are consistently enforced. Overhead costs in relation to contract revenues are consistently much lower than industry benchmarks.

He who hesitates is lost - get started!

In a recent Fortune article, Andy Grove, chairman of Intel, asserted, "There is at least one point in the history of any company when you have to change dramatically to rise to the next performance level. Miss the moment, and you start to decline." More bluntly, I believe you must choose to grow or die as we head into the next century. Those who choose to tread water will be eaten alive by the competition.

Taking the time and showing the patience to listen carefully to your people about what they think are the critical issues can take significant time and courage. Making such behavior an integral part of your organizational spirit will pay huge dividends to leverage your firms long-term growth opportunities.

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