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4 CHANGE PROCESS 4.5.2.3 Step 3: Create a vision In this third step the organization should depict a clear picture of the desired status in the future. Organizations have to ensure the guiding team has a focused and compelling picture of the desired change, and the future it creates. They have to help everyone in the organization see how their behavior contributes to the vision. On the other hand it will be very helpful to ensure the guiding team having a sound strategy that defines how the vision will be achieved and demonstrates the feasibility of the goal. Changing organizations have also to remove obstacles that block effective realization of the vision, and create key performance indicators to determine success. A vision should describe the future state, the core theme of the organization in 5-10 years. What should be reached? The main activities are: • Develop a picture of the future that is easy to communicate • Create a vision to direct the change effort • Develop strategies for realizing that vision Here are some hints for the process of creating a vision: • Painting pictures of the future • Establishing a Future Conference (do not use Monday morning meetings for this purpose) • A vision should be relevant/meaningful + motivating/emotionalizing + action guiding + easy to communicate / easy to learn • Reflecting relevant dimensions: sales turnover, EBIT, employees, customers, businesses, competitors, beliefs, action steps • Start with an article of your corporation about the results of your change effort: how the organization is different? What customers have to say about you? What employees are saying? • Try to involve people from different levels / lateral thinkers • Group size 4-12 with input of shareholders and selected stakeholder 4.5.2.4 Step 4: Communicate the vision In this forth step the organization should use each and every media channel to communicate the effort of change within the organization by mobilizing the many with effective, frequent, and sustained communication strategies. Organizations should ensure the majority of the organization relevant to the change initiative so they have a verifiable understanding of the vision and strategic plan to achieve it. The focus of this step is that a sufficient majority of stakeholders in the organization (employees, shareholders, suppliers, customers) understand the rationale for the change, and that resistance to the proposed change is minimized: • Use every vehicle possible to communicate the new vision and strategies for achieving it • Teach new behavior by the example of the guiding coalition. How does (new) behavior of employees help to bolster the vision • When sacrifices are necessary (lay-offs) communicate growth possibilities and fair treatment of lay-offs • „Walk the talk“, becoming a living symbol of the new corporate culture Some useful methods for the communication process: • Message should be KISS and heartfelt • Try to understand the people’s feelings first • Speak to anxieties, confusion, anger and distrust • Put information junk away so that important messages get through • Two-way information! • Build up communities • Evaluate your communication efforts • Use all media channels that are available (bill-board, newsletter, intranet, posters, project-wiki, seminars, podcasts, road shows…) • Web 2.0 (blogs, discussion forums, Q&A…) • Use new formats (screensavers, stickers on phone….) 4.5.2.5 Step 5: Empower others to act the vision In this fifth step you are focusing to remove all barriers in the paths of your people on the way to changing the structures within your organization. You have to build momentum by establishing visible results within six to eighteen months. Leaders within the organization should provide employee training, support, and development opportunities within the organization to implement the change. Individuals should assume the responsibility and possess authority to make decisions that turn vision into reality. Organizational systems have to be designed to reward those whose actions are consistent with the vision. • Remove or alter systems or structures undermining the vision • Encourage risk taking and nontraditional ideas, activities, and actions • Involve large numbers of people • Let go of past, say good bye to habitual behavior Finding individuals with change experiences will help to deal with the change. In order to multiply the change efforts organizations 49
KNOWLEDGE FOR BUSINESS IN BORDER REGIONS could use challenging activities i.e. a change competition within the whole organization. At the end rewarding the best performing units for achieving the goals. Feedback will help people make better vision-related decisions. 4.5.2.6 Step 6: Plan for and create short-term wins In this sixth step empowered people create short-term wins that nourish the faith in the change effort by rewarding emotionally the organization on their hard way towards the change vision. Organizations dealing with change should use the credibility from short-term wins to create new goals and make additional changes. The short-term wins have to be planned beforehand by developing a list of 3-4 target wins. Key influencers use the results of short-term wins to demonstrate the feasibility of the vision and to get more people aligned with the change effort. • Define and engineer visible performance improvements • Recognize and reward employees contributing to those improvements • Chunking down big tasks • Start with easy to cope tasks • Focus means, set priorities and communicate them – “The Big Four” • Start with easy and small ones where you can quickly achieve unambiguous, visible, and meaningful outcomes • Celebrate and communicate the wins • But be honest and do not make “sunshine and roses propaganda” • Give incentives to project teams • Produce best practices • Start tracking key figures • Use winners as “lighthouses” 4.5.2.7 Step 7: Consolidate improvements and produce more change In this seventh step successful change leaders use wins to lock changes into cultural norms and values to implant the change deeper in the organization. Leaders continuously promote training and communication to support the vision and get new stakeholders up to speed quickly on the process and culture. Benchmarks and key figures will help to monitor and maintain urgency with continued communication. • Use increased credibility from early wins to change systems, structures, and policies undermining the vision • Hire, promote, and develop employees who can implement the vision • Reanimate the change process with new projects and change agents • Keep urgency up • Use stakeholder feedbacks / market research • Tackling more and more difficult changes • Scanning the new level in order to find new possibilities to change • Check that changes had sunk deeply into a company’s culture (output of staff appraisal, feedback interview) • Check systems and structures if they are consistent with the vision • Start transferring the change into the whole organization 4.5.2.8 Step 8: Institutionalize new approaches After the whole change process worked successfully you have to “refreeze” the organization, stabilize all changed structures and processes A “culture readiness team” is created, who prepares the old culture for the anticipated wins and resulting changes. This team receives training on methods for incorporating wins and change momentum into the culture of the organization. • Articulate connections between new behavior and corporate success • Create leadership development and succession plans consistent with the new approach • Take sufficient time to make sure that the next generation of top management personify the new approach-give them orientation At this very last step the leading team should focus on consolidation: • Freeze the change by changing all processes according to the new approach • Adapt Human Resource Management (recruiting, training, HR development…) • Use success stories and anecdotes • Celebrate end but do not end • Continuous evaluation of change • Re-evaluation of vision • First change behavior then culture (culture follows behavior) 50
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