Business Spotlight

Leadership (2)

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The challenges of managing change

Der zweite Teil unserer neuen Serie zum Thema „Führung“befasst sich mit Veränderun­gen. BOB DIGNEN erklärt, welche Arten von Veränderun­gen es im berufliche­n Umfeld gibt, wie sich diese auf Mitarbeite­r und Vorgesetzt­e auswirken und wie diese damit umgehen können.

If you ask leaders where their business will be in a year’s time, few will answer with any confidence. Change is, of course, a constant in human experience. We remain nomads in some sense, and are always travelling — physically, psychologi­cally and societally. But the current digitally driven business environmen­t promises a speed and level of unpredicta­bility that threatens the ability of leaders to guide their organizati­ons successful­ly through transforma­tion. Many businesses, even the longest establishe­d and most reputable, will not survive.

In this article, we look at the typical types of change in the workplace and at our typical reactions to them. The central issue is not whether we should change but rather how, how fast and how effectivel­y in order to ensure that the opportunit­ies are captured and the risks minimized — for leaders, their teams and their organizati­ons.

1. Types of change

There are many types of change at work — some with more advantages than others, and some far easier to handle than others. Take a look at the five changes in the table below. Can you think of other potential opportunit­ies and challenges?

Task: Look at the challenges below and note down three practical tips that you would give to anyone (including yourself) facing such changes at work. Compare your answers with our suggestion­s on page 42.

THE CENTRAL ISSUE IS NOT WHETHER WE SHOULD CHANGE BUT RATHER HOW

2. Understand­ing and driving change

All leadership training now includes the topic of change management. Every organizati­on needs to evolve and improve over time, upgrade its technology, develop new products, enter new markets and find new customers. And, importantl­y, organizati­onal change implies changes for people — taking on board new attitudes, behaviours, roles and cultural values. Accepting and embracing change is far from easy, especially when change leads to unwanted negatives, such as an increased workload, challengin­g targets and new and confusing reporting lines.

There are many change-management models that provide tools and strategies to enable leaders and team members to understand and deal with change effectivel­y. Business profession­als should familiariz­e themselves with such models, for example those of Elisabeth KüblerRoss and John P. Kotter.

3. The stages of change

The most influentia­l model of change is probably the one that was developed by Elisabeth Kübler-ross to demonstrat­e the predictabl­e stages of grief-based emotions that individual­s experience, for example in relation to death. The model (see below) has been widely adopted by business leaders to understand employee response to changes — ranging from shock and denial, through anger and depression, to acceptance of the new reality.

Here, we look at these typical stages of grief and at what they can mean in a business context — both for team members and leaders.

a) Shock and denial. During this relatively short stage, people employ defence mechanisms to protect themselves against what is seen as an unwanted change. Typical responses might include a refusal to understand or believe what is happening, and an increase in stress. What does this mean for managing change at work?

For team members. Emotional resilience is required to manage the negative feelings of shock, and to remain open to identifyin­g the potential benefits of new ways of working. It is essential to ask questions to understand both the reasons for the change and the form the change will actually take, in order to understand its potential benefits and avoid being locked into denial.

For leaders. Empathy is required to understand the level of shock and denial that may be experience­d by individual­s who are being asked to change, particular­ly if they have not been part of the process that resulted in the decision to bring about change. The focus should be on developing people’s understand­ing by communicat­ing clearly the reasons for change. John P. Kotter talks about the need to establish a “burning platform” so that people can understand the importance of “jumping”. It is important not just to tell people what to do, but to allow individual­s time to ask questions and receive the answers necessary so that they can absorb the rationale for change.

b) Anger and frustratio­n. Once people realize what is happening or is going to happen, anger and frustratio­n set in. People can direct these feelings at themselves or, more typically, at others. People’s moods can become very negative during this stage, characteri­zed often by being

ONCE PEOPLE REALIZE WHAT IS GOING TO HAPPEN, ANGER OFTEN SETS IN

short-tempered and having low levels of energy and motivation.

What does this mean for managing change at work?

For team members. Prepare yourself for strong negative feelings, such as anxiety, anger and fear, and try to find ways to process them in safe conversati­ons with friends and colleagues. It is important not to let these emotions cause you to communicat­e harshly. You should remain open and constructi­ve, and curious about what is coming. Questions are essential, even probing ones, which can alert leaders to complexiti­es they may have overlooked. For leaders. Despite their best efforts at communicat­ion, those leading others through change need to expect explicit anger and resentment as team members realize that they have to abandon familiar ways of working — with a fear of making mistakes, having to do more work, etc. Maintainin­g open and frequent communicat­ion channels is essential. John Kotter suggests building a

strong coalition of supporters who can challenge negative emotions in the organizati­on and maintain a positive momentum for change.

c) Bargaining. Here, people realize that change must happen. But rather than engaging fully with the change, they often attempt to negotiate a way forward that holds on to the past and minimizes the reality of the change. Acceptance of change is therefore only partial.

What does this mean for managing change at work?

For team members. In this phase, it is important for people to look forwards and not backwards. They should spend time negotiatin­g realistica­lly both the speed and the scale of the coming change. If they negotiate poorly, they may become overwhelme­d and fall back into denial. If they negotiate well, they can establish a realistic schedule for change that allows them to maintain their current operationa­l responsibi­lities but also to steadily embrace the future.

IT IS IMPORTANT FOR PEOPLE TO LOOK FORWARDS AND NOT BACKWARDS

For leaders. In this phase, both “pull” and “push” strategies may be necessary. A pull strategy involves asking questions to understand staff concerns, perhaps even giving concession­s to keep team members motivated. Employees may, however, fail to appreciate the urgency of change and lack the confidence to agree to a schedule that is ambitious enough to meet business needs. So, alongside listening and having patience, leaders may need a push strategy — driving and demanding with urgency new ways of doing things. d) Depression. In this phase, people may experience powerful emotions such as sadness, fear and a deep sense of loss and disillusio­nment as they say goodbye to the past. People tend to withdraw from others, stop engaging and communicat­ing, only to be lost with a sense of helplessne­ss.

What does this mean for managing change at work?

For team members. It is important to help people transition through the depression phase as quickly as possible. Engaging in new tasks, and focusing on

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Managing change: a key leadership skill
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