The two dimensions of organizational change

Date01 November 2004
Published date01 November 2004
Pages20-23
DOIhttps://doi.org/10.1108/14754390480000576
AuthorBill McCarthy
Subject MatterHR & organizational behaviour
20 Volume 4 Issue 1 November/December 2004
RGANIZATIONS THAT achieve
successful transitions are those that put
“lead and support the people who will make
it a success” at the top of their to-do list.
This is as true for a new acquisition as it is for a re-
engineered business or a significantly downsized
organization. We are all faced with the main reason for
transition failures – performance and productivity
drops as morale declines and the intended benefits of
the transition are jeopardized.
It’s well documented that in achieving significant
results from a major change, the way we take our
people with us is the most difficult challenge for
management. This article outlines an approach to
major organizational change that will ensure people
“buy-in” to the transition and help the company
achieve its goals. However, a good place to start is to
consider some of the common reasons why
organizational change programs fail to engage people.
1. People planning comes last
Organizations plan the financials, the operations, the
marketing and selling, review the assets and revalue the
balance sheet, but few do this for the people
dimension. Planning for people performance is often
not addressed until after the decision is made.
2. The role of managers is disregarded
Disregarding managers and their role in driving out the
benefits of transition will almost certainly lead to its
failure. A recent research report1 highlights the pivotal
role of managers in winning hearts and minds and the
need to engage and equip front-line managers to bring
their people on the change journey.
Over 80 percent of people surveyed who felt more
positive about their company due to a recent change, said
their manager was pivotal to this positive feeling. Leaders
should endeavor to understand and support managers in
their own personal transition first and then assist them in
providing clarity and support to their teams.
3. Communication fails to win hearts and minds
Too often during the change process, communication
and involvement is a mechanical, one-way one-off
event. We are now faced with a workforce that’s
unsentimental towards their current employer and
skeptical about the loyalty they get from them. As a
result, employees are more questioning and need to be
convinced of the need to change in order to share their
leaders’ passion and the vision for the future.
4. Individual agendas are ignored
In a climate where 69 percent of employees admit they
are always on the lookout for better employment
opportunities2, failing to address the “what’s in it for
me?” agenda runs the risk of breeding insecurity and
losing key talent. Penna’s latest research found that the
O
by Bill McCarthy
Penna
The two
dimensions of
organizational
change
Too many organizational change projects fail because
they fail to address the people aspect. Employees
don’t buy in to the changed organization and
performance suffers as a result. Here, Bill McCarthy of
human capital consultants Penna, addresses six
common reasons why organizational change fails and
suggests an approach that focuses on people within a
“before, during and after” timeframe.
Focus on a timeframe and layers of
activity for successful transition
© Melcrum Publishing Ltd. 2004. For more information, go to www.melcrum.com or e-mail info@melcrum.com

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