Organizational Change Management

Organizational Change Management

Significant organizational change can present many challenges as well as opportunities for an organization and its employees.  We live and work in the age of organizational upheaval, and it seems that change is the norm rather than the exception.  In their introduction to The Employee Handbook for Organizational Change, Price Pritchett and Ron Pound (2010) explain that change is as widespread as it is fast moving, effecting different economic sectors, different social classes, and every area in the world (p. 2). As Adcroft et. al. (2008) state in their article, A New Model for Managing Change (2008), “Organizations…must change with the times or fail” (p. 40). Advances in technology and communication have driven even more change than ever (Adcroft, 2008, p. 42). However, change is often resisted by workers, and this resistance can hinder any progress an organization is attempting make. Many change management strategies have been proposed, examined, and refuted, but one aspect of successful organizational change is prevalent throughout the research. The commitment of management and employees is necessary for the successful implementation of organizational change.

            According to Malcolm McGreevy, author of the article Why Change Works Sometimes (2009), the core objectives of a strategic organizational change include improving efficiency and performance (p. 305). Companies that decide to initiate significant changes expect to increase their competitiveness, reduce costs, and improve quality as a result of their new business practices (McGreevy, 2009, p. 305). However, according to McGreevy, many times, “Performance regresses, process improvements do not stick and dysfunctional behaviors return.”  In fact, according to research cited in Gilley’s article (2009), Change, Resistance, and the Organizational Immune System, 33-90% of change efforts, including mergers, are not successful or actually make the situation worse (p. 4). The employees of an organization in these circumstances, as a result, are skeptical to subsequent initiatives of change. Before examining the keys to successful change management, let’s examine the most common pitfalls and underlying causes of ineffective change initiatives.

            An organizational transformation’s potential negative effect on morale is a deciding factor in the success or failure of a change initiative. Adcroft (2008) calls what people believe has happened, rather than what actually happen, the transformation myth (p. 44). These highly personal myths surrounding the details of the transformation can potentially make or break a new initiative.  Different people among various positions will have diverse perceptions of the change and will create their own unique myths based on personal experience (Adcroft, 2008, p. 44). Perceptions of job security can certainly have a significant effect on the transformation myths of employees. How well a person champions an organizational change can depend greatly upon their perception because as Adcroft (2008) explains, behavior is often directed by our view of events rather than the facts (p. 44).

            People within a changing organization are often treated like victims, according to an article entitled Why the Stages of Grieving are an Excuse for Inept Change Management (R. Maurer, 2010, p. 38). Maurer points the finger at the trend in organizational change management to counsel employees through the five stages of grieving. This method encourages people to move through the stages of denial, anger, bargaining, depression, and acceptance as quickly as possible in order to eventually believe wholeheartedly in the change at hand.  However, according to Maurer (2010), research has not been established that links the validity of grieving a death to coping with organizational upheaval (p. 38). Also, counseling employees as though the change was a death can send the message that something is very wrong with the new initiative. People would rather be involved in a change that affects their lives than be convinced to comply with any change that is sent down the pike (Maurer, 2010, p. 38).

Reasons for resistance to change are numerous, including fear of the unknown, disruption of routine, and loss of status. According to Ann Gilley and the other authors of the article Change, Resistance, and the Organizational Immune System (2009), people are inherently resistant to change and avoiding or resisting change is human nature (p. 4). Organizations, in fact, develop an immune system that rejects foreign objects, just like the immune system of the human body (Gilley, 2009, p. 5). An organizational immune system puts up barriers to change, even if the consequences of such a change could be positive. Gilley et. al. (2009) explain, “The individual’s response, like that of the cell is a visceral defensive move that ignores the overall well being of the system (the organization)” (p. 6). Many employees experience an immediate, self-protective response to change, and if this response is not overcome it can lead to ultimate rejection of the change initiative. 

McGreevy’s study of successful vs. unsuccessful organizational change initiatives (2009) identified poor communication as one of the underlying causes of programs that have failed.  Respondents to McGreevy’s (2009) survey spoke of not listening to customers, lack of expertise, and poor execution as factors leading to an unsuccessful change (p. 310). Adcroft agrees with McGreevy’s respondents, stating, “Change is more likely to fail when the reasoning is poorly communicated and hence understood” (2008, p. 43). Prior to rolling out the change, the people heading up the new initiative need to ask themselves, “Is our program clear enough that everyone will know we are serious and flexible enough that we can adapt it along the way?” (Adcroft, 2008, p. 44). Adcroft’s article (2008) also asserts that without coherent communication of the initiative, failure is inevitable (p. 44). Strong evidence suggests that clear, open, effective communication during a time of transition is a key factor in the acceptance of new initiatives.

            Although initiatives of change management ultimately fail in many cases, luckily for organizations undergoing transformation, researchers have identified the factors that frequently underlie the successful initiatives.  An important factor that can be overlooked during the demanding, busy times of corporate change is the cultural component. Adcroft (2008) contends that only organizations with a culture that embraces a striking change can hope to be successful (p. 42). Organizations on the verge of rolling out a major change need to keep in mind that, as Adcroft (2008) asserts, “The set of skills, competencies and tools required of a transforming organization are different from those required of an organization that either does not want to or does not need to transform” (p. 42).

            In his in-depth analysis of different models of change management, J. Mathews (2009) states that cooperation, collaboration and teamwork are all factors that heighten the effectiveness of a change program (p. 12).  This can be affected by the company’s current culture as well as the culture of change being rolled out. A supportive atmosphere and an interactive, participatory element to change can make a significant difference in the success of new initiatives (Mathews, 2009, p. 12). The cultural component should not be overlooked by agents of change management.

            In the world of change management, effective planning and preparation can help maximize successful outcomes. Organizations must take the time and make the effort to obtain the necessary knowledge in preparation for a major change. Without knowledge, transformation can be neither implemented nor understood, according to Adcroft (2008, p. 42). The first step of an organizational change may not be setting objectives but rather gaining an understanding of the complex and connected array of activities, processes, stakeholders, etc. that will need to be involved and the various, widespread effects on the organization (Adcroft, 2008, p. 42).

            Since changes are the result of large, sometimes uncontrollable forces such as technology, globalization, increasing workforce diversity, and growth, preparation is essential. The complexity of the factors involved demands an appropriate amount of planning beforehand in order to ensure that new changes remain consistent with the company’s mission and objectives. In order to prepare sufficiently, Mathews (2009) suggests that organizations consider both the soft factors, meaning the behavioral aspects of the change, as well as the hard factors, being the organizational and physical aspects (p. 8). Hard factors are more stable and controllable and assure a high rate of successful change management, however soft factors can make or break employee morale, so they should both be given equal attention in the change preparation process (Mathews, 2009, p. 8).

            Also essential to successful change management is the planning and implementation of a clear, effective communication strategy. Employees are more likely to perceive a change initiative as successful if the information about the rationale behind the change has been communicated clearly and openly (McGreevy, 2009, p. 43). It might be helpful to remind employees that businesses that don’t change disappear. For example, Circuit City and General Motors were forced to declare bankruptcy when they couldn’t keep up with their quickly changing markets (Gilley, 2009, p. 5). Agents of change should also communicate the specific underlying causes leading to the transformation, and the outcomes the organization hopes to achieve (Adcroft, 2008, p. 43).

            As mentioned earlier, Gilley and colleagues (2009) developed a comparison between the immune system of the human body and the resistance of an organization in response to change (p. 4). An organization has the ability to implement specific strategies in order to overcome resistance to change. Planning in advance for resistance can lead to a more successful outcome. These strategies should be implemented on every level of an organization, not just entry level employees. Companies need to ensure that they have the commitment of management, in order to parlay widespread resistance. Their strategies for overcoming resistance, similar to how a physician might overcome the immunity response to a foreign object, should focus on either concealing the change, modifying behaviors so that change will be tolerated, or disarming the immune system through a culture of change (Gilley, 2009, p. 7).

            In order to conceal major changes in an organization, the transformation should aim to be gradual, long-term, and almost imperceptible to employees (Gilley, 2009, p. 7). When Malcolm McGreevy (2009) surveyed several companies that had recently undergone major transformations, he found that one of the key factors to success was taking a measured approach to the rollout of the change program (p. 309). The respondents also pointed to the monitoring of progress over time with a fair and balanced approach as a key to success.  So, it is not only important to roll out change evenly and gradually, but it is important that employees understand that the company is flexible if the changes are not working well. These factors ultimately lead to successful change, defined as improved performance, increased profits, improved employee satisfaction, and reduced operating costs (McGreevy, 2009, p. 309).

The commitment of management and employees cannot be ignored as a crucial component to successful change implementation.  People within an organization are going to experience the same change differently, so strategies should be put into place to overcome individual and organizational resistance.  Adcroft (2008) put it, “The interpretation of strategic events may not always be based on rational considerations but rather on the individual experiences and prejudices of those doing the interpreting” (p. 41). The perception of the change program needs to be overwhelmingly positive in order to foster commitment. It is important that an organization, in preparedness of transformation, begins to create a culture of change. In these times of rapid technological advances and shifting economic conditions, every organization should begin to encourage a culture that accepts and even suggests necessary transformation. Change management is much more likely to result in successful outcomes and gain support when organizations prepare effectively, communicate the transition rationale and process clearly, and strive to create a culture of change in the workplace.

References

Adcroft, A., Willis, R. & Hurst, J. (2008). A New Model for Managing Change: The Holistic View. Journal of Business Strategy, 29, 40-45.

Gilley, A., Godek, M. & Gilley, J. W. (2009). Change, Resistance, and the Organizational Immune System. S.A.M. Advanced Management Journal, 74, 4.

Mathews, J. (2009). Models of Change Management: A Reanalysis. The IUP Journal of Business Strategy, 6, 7-18.

Maurer, R. (2010). Why the Stages of Grieving Are an Excuse for Inept Change Management. The Journal for Quality and Participation, 33, 38.

McGreevy, M. (2009). Why Change Works Sometimes. Industrial and Commercial Training, 41, 305-313.

Pritchett, P. & Pound, R. (2010) The Employee Handbook for Organizational Change. United States of America: Pritchett.