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Once upon a time, all that was needed for a corporate change to happen was for a decision to be made. It was then communicated to staff and then pushed through, with employees told to either get on board or get out of the way. It was certainly a simple strategy, but it wasn't necessarily efficient or effective. Pushing change through against a sea of concerned staff could be unnecessarily laborious and change management strategies have necessarily come a long way since then.
Holger Nauheimer, a European management consultant, says employee engagement is key to the success of any corporate change. The classic style of just telling employees has evolved into a consulting style where employers admit they need employee input to make a project a success," he says.
In this line, organisations are now looking to their HR departments whenever change is on the agenda.
Peter Cappelli, director of the University of Pennsylvania's Centre for HR, says HR needs to work closely with key executives during these difficult times. Given that the big challenges in HR all relate to employees, HR should be at the centre of the efforts, leading the execution. Top executives set the direction change should move in, but the HR team should lead how it's done."
Cappelli advises that executives don't always understand employee issues, certainly not to the same extent as their HR departments. It is important to educate executives that don't know much about employee issues and how things can go wrong. Many leaders actually think you just tell people what to do and they do it. It helps to remind them how much discretion individual employees have, and how they can withhold effort and cooperation if they are frightened or angry."
Start talking
Cappelli admits there may not be many new innovations in the way companies execute change. But he says a lot is now known about how individuals react to different types of change efforts. We can get better by planning around those. For example, we know that employees make up explanations when they aren't being told what's going on and that the explanations tend to be worse than the reality. So tell them what's happening - including letting them know when you don't know what will happen."
Keeping employees informed is almost as important as listening to what they have to say. Nauheimer stresses the need for companies to listen to their employees and suggests managers should not proceed with projects until they are absolutely confident that those who will actually be executing the plan are convinced it is the right move.
If key staff don't consider the planned change feasible, useful or attractive, their unease will show through in the final result. In those situations, Nauheimer says it is important to maintain the dialogue between management and employees.
Employees do not see projects as managers see projects. By discussing the changes, everyone sees that the project is not universally disliked or feared.
There is no magical stick to change attitudes. Just engage employees and get them talking,"
Being a role model
Communication is important but so is action. Mal O'Connor, vice president of the US-based Centre for Applied Research, agrees that a strong HR team is vital in orchestrating change. You need more than champions for the changes to survive." But simply talking to staff is not enough. If you want to change behaviours, you need to have system supports that sustain the changes.
This is where performance management systems and bonus systems come in and why HR is so important in creating changes that stick."
Nauheimer agrees that HR needs to do more than just direct conversations. HR needs to be a role model and do what they are asking employees to do. You save lots of money and employees become more engaged if you plan for change." Nauheimer says 10% of a project budget should be allocated toward associated change management initiatives.
Passion will pull employees
O'Connor advises organisations to use their employees' passion as much as possible. The way to engage people is not to try to tell them or sell them but to generate interest and excitement, creating a pull for the idea," he says. This works far more effectively than forcing staff down a path they may be unsure or hesitant about. If you create a compelling picture and people admire it and talk about it, that creates a pull and pull almost always trumps push."
Developing that momentum will require different strategies depending on the type of organisation and the change being implemented. But there is often some part of the payroll already taking it on themselves to implement the desired change. O'Conner says these so-called 'found pilots' can become vital leaders in the wider change process.
Find your 'found pilots' and watch how they behave. Find out how they are doing the behaviour change and support what they are doing so they can engage and pull other employees into the change."
Nauheimer agrees that executives need to be leaders when it comes to organisational change. Managers always have the power of the argument, depending on the power structure within the organisation." If organisations are able to harness the passion of employees, with the support of management, HR will find their path to change a little smoother. Once you reach critical mass, those who are not interested will not have enough power to hinder the change," says O'Connor.
Evolution of change management
Not every change requires an intricate campaign, but HR needs to be aware of the different styles and how they relate to employees. While most thought leaders say projects should now be collaborative 'co-creations' between staff and management, there are some other styles that may be useful, depending on individual factors.
+ Telling - The classic authoritarian style in which the organisation simply tells employees to come on board or leave. Most commentators say this is as outdated as it was ineffective.
+ Selling - Companies use public relations strategies to sell the idea to employees. This sometimes works when the change is simple but typically fails with larger projects.
+ Testing - Management announces plans for a project but organises some testing or small-scale pilot before making any final decision
+ Consulting - Management asks employees for their input to help make its project successful.
+ 'Co-creating' - Management and employees work together to determine the exact nature of a problem and solutions for bringing about change within the organisation.