Business | Opinion
Progress through transformation
How often are we faced with the challenge of transforming a business? It's understandable when one's preference is not to be faced with change. We have all heard the proverbial "if it's not broken then don't fix it".
- By Gustavo Rojas, Special to Gulf News
- Published: 23:47 July 29, 2008
How often are we faced with the challenge of transforming a business? It's understandable when one's preference is not to be faced with change. We have all heard the proverbial "if it's not broken then don't fix it". The reality is many organisations need one, not just because they might be broken (unprofitable, growth stagnation, underperforming shareholder returns) but because they strive to become a great business; an industry leader, the best company to work for or a top 10 environmentally conscious "green".
Many great leaders create crises as a vehicle to challenge and strengthen their organisations. Leaders are identified, shaped, and their skills honed during a transformation. Organisations are living organisms and as such stressing them can build stronger and successful organisations as long as the transformation is successful.
Transforming any organisation is a challenge, in a Fortune 1000/500 company it can be a daunting undertaking and without a well thought-out plan, undesirable results could be the outcome. i.e. talent loss, lower performance, and or higher customer churn.
Therefore, developing a detail plan is a key success factor. Case studies and design criteria for business transformations exist and can be found in today's business books and news articles. Few though, in my opinion, address the biggest challenge, the emotional cycle of change. We must remember we're transforming an organisation full of individuals, many who will experience significant change throughout the process. It's critical to manage the emotions associated with change.
Five distinct phases describe the "emotional cycle of change" and everyone involved experiences this "roller coaster of emotions".
- Uninformed optimism - This phase is at the initial launch of the transformation. Everyone (mostly, as there are those few that will be always sceptical) is excited and optimistic. The expectations are high, positive organisational benefits will translate into potential improvements for individuals involved. It's an intellectual phase, nothing has changed yet, but everyone understands it theoretically. It's not uncommon to hear comments like, "we're finally going to fix things" or "it can't get any worse than it is today".
- Informed pessimism - Change has begun. Everyone involved is realising what transformation means individually and it's not a comfortable feeling. We hear comments such as: "this is not what I had in mind, will I be able to do what's now expected? It's a rapid descent.
- Frustration and fear - It's the break-it-or-make-it phase. Emotions reach an inverted peak. Rumours and misinformation significantly impact moral. It's reaching the "valley of despair."
- Hopeful realism - The transformation starts to produce results. There is now a cautious understanding of change and how it impacts individuals. We now hear: "I'm starting to understand, this might actually work if I try it." It's on the upswing again.
- Informed optimism - We have succeeded. The transformation has achieved its goals. Change is now embedded in the organisation and there is full ownership of the new way. Results are visible not only financially and operationally but also culturally.
It's critical to manage the depth and length of the "valley of despair". Leaders understand it, they stand strong and confident, do not waiver during these trial times. They are honest and appeal to their best people; are visible and consistent with their words and actions. They lead an organisation through the challenges of a transformation.
Gustavo Rojas is director, Americas and global head supply chain, at Cedar Management Consulting International.
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