How to implement large scale change
One of the most frequent questions I get from executives is “how do I get my organization to implement large scale change.” In most cases “large scale” refers to the scope or breadth of change as well as the degree or step increase. While there is no simple answer, my experience has taught me that a critical mass of leaders near the top must be aligned around five things in order to catalyze and mobilize the rest of the organization into action.
1. A Compelling Case for Action
2. Understanding of the Consequences for Inaction
3. A Shared Vision of the Future
4. A Road Map from Today to the Future
5. A Scorecard of Measures and Accountabilities to Monitor Progress
Having each of these does not guarantee success. But, without each of them I can predict failure. Failure can manifest itself in several ways: never getting started, getting bogged down or sidetracked or falling far short of the desired outcomes.
You change an organization by changing the conversation of the organization. The leader sets the conversation.
My experience indicates that most executives want to get moving on change and spend limited time building the case for change. They assume that the imperative they see is shared by others in the organization. While many may feel that change is necessary most have their own interpretation on why. These differing interpretations shade their vision of the future and what is possible.
Economic literacy is missing
The most common mistake of senior management is to assume that employees have the same comprehensive understanding of the business drivers and success factor as they do. In fact, most employees have limited visibility beyond their work and often don’t see clear correlation between what they do each day and the success of the enterprise.
Case for action is not shared
It is fair to say that most employees have a very limited understanding of the economics of the business. They don’t understand the key metrics or the drivers behind those metrics. Without the benefit of this type of economic literacy it is likely they don’t understand how the business actually makes money. In addition, they don’t have perspective to understand how changes in business context (competitors, customer or suppliers) can impact business performance. What might be obvious to a leader might be elusive to others.
Leaders must build a compelling case for action. They must tell the truth about the condition of the organization in terms that are simple enough to be widely understood and complete enough to suggest action. Yet, the case for action is seldom sufficient to demand action. Leaders must create a corresponding set of consequences of inactions. Only when the two points of view are combined will leaders have the hope of mobilizing coordinated action.
“Pushing the Edge” of Your Thinking
• What are the handful of “truths about today” in your organization that if widely understood would build the case for action?
• What credibility needs to first be established between the leaders and the employee to have the “truths” heard as fact?
• What is the economic literacy of the workforce regarding your business?
• What are the consequences of inaction for your organization?
• Is there sufficient mutual trust in the organization to take on a program of large scale change?