Leading change

Change / 16 February 2011

Major change programmes require specific management skills as well as dedication and focus. Scott Beagrie discovers how to lead change in a constantly shifting business environment

Recent years have seen a groundswell of major transformation programme activity, such as the integration of HBOS-Lloyds TSB, the breaking up of Northern Rock plc into two separate companies and the upgrading of Gatwick Airport following its sale to investment group, Global Infrastructure Partners. It is likely more of these will occur as the country emerges from recession, even if they are not all on this scale.

Leading any major change programme demands a specific skillset as well as dedication and focus, and it can be a hugely difficult task to carry out successfully. Numerous studies indicate that around two thirds of all change initiatives fail to deliver the expected results, often because of poor leadership and an inadequate focus on the people issues.

“Very few organisations have the leadership skills and experience required to successfully run large transformational change programmes,” says Stephen Lawrenson, a senior level independent trouble shooter who usually works on an interim basis. Lawrenson, who specialises in major public and private organisation turnarounds, says that a key success factor is whether the leadership team and the chairman and CEO in particular, are clear on what they want delivered. There are of course a number of other critical elements that must be incorporated by anyone involved in driving a change process and these are outlined below.

Think deeply about the way forward

Step one is to know what you want the change programme to achieve, have a watertight argument for doing it and be able to picture the end result before you start to formulate the plan. View the transformation as a three-phase process where you must determine what needs to take place prior to it starting, during the operation, and at the conclusion. Since change can also frequently cause major upset it’s important to consider it from the viewpoint of the daily lives of line managers and individual employees and the implications for them as well as in the wider context of the business objectives.

Frontline employees are not stupid, and if they spot that there is not a consistent message from the top backing the change, it will be very challenging to deliver a successful programme.

Stephen Lawrenson, change management trouble shooter

Making change happen

It is impossible to head up a transformation programme without a depth of strong leadership and management skills. You need to be well organised, resilient, persistent and rigorous, as well as be able to build and motivate a team. Paul Siegenthaler, founding partner at consultancy, Focus On Change, stresses the importance of personal presence and energy and being a good influencer. “You must be able to coach people on the executive and get them to agree on things as it’s very important that once out of meetings they speak in one voice, like a cabinet,” he says. “If you do not have a very clear and unequivocal leadership style it is unlikely you will be able to pull the whole organisation together and get them to embrace the change.” Lawrenson stresses it is not for the faint-hearted. “You also need the ability to quickly cut through complication and sell a vision of what needs to be done at all levels of the organisation,” he says.

Work out your lines of communication

The success of the transformation programme as a whole will most likely hinge on the clarity and effectiveness of your internal communications. You need to paint a compelling picture of why the organisation needs to navigate away from the old ways, what the changes will entail, how they will help to build value and convince employees to support it.

Focus on the positives. Remember your message may also need to motivate employees to modify their behaviours or methods of working to drive the transformation and there is no substitute for commitment and enthusiasm. “Frontline employees are not stupid, and if they spot that there is not a consistent message from the top backing the change, it will be very challenging to deliver a successful programme,” says Lawrenson.

Harness the power of employees

To secure commitment and buy-in for the transformation plan, you need to actively involve employees at operational level in shaping it. A 2010 survey by global consultancy McKinsey found that when leaders ensure frontline employees feel a sense of ownership, results show a 70% success rate for transformation programmes. Furthermore, if they are allowed the initiative to drive the change this rate increases and when both principles are combined, it increases to 79%. So seek as much constructive input as possible from employees early in the planning process and listen to what they have to say.

“Too often these things are showered from the top of the organisation down and people don’t understand why it’s done. Very often you will get people on the shopfloor thinking ‘these idiots on the sixth floor don’t know what real life is like’ or ‘that’s not my change project because they didn’t ask me’,” says Siegenthaler. “As soon as that happens, it’s total disengagement.”

Adopt supportive behaviours

People will have different reactions to change at different times during the implementation of the programme, so it’s vital to keep this in mind. They may feel disoriented, disenchanted or withdrawn at certain points and it is your job to act as an anchor and provide reassurance. Show that you are listening throughout the programme and keep an eye on employee engagement. If it looks as if it’s wavering, take steps to get it back on track. Similarly, monitor performance using standard appraisal methods. Also use employee surveys to regularly take the pulse of the organisation. Be alert to any issues that might stand in the way of a successful outcome and while a transformation programme is about devising new methods of working, be respectful of what has gone on before.