by Donald J. Cecchi

   This article was published in The Productivity Institute (PI) Newsletter . (Part 3 of 3)

Reorganizing Your Company Can Lead To Happier Customers And Employees, And Generate Bigger Profits.  This Step-By-Step Process Will Show You How To Create Change And Avoid Pitfalls

Resistance To Change
Everyone is perfectly willing to change, provided they can continue to do things the same way they have always done them.  Although this may be somewhat overstated, I’m sure that it has a ring of truth for all business owners, managers, and management consultants.

The truth of the matter is that most people simply do not like change and will resist it.  For many it is painful, even traumatic, and is met with hostility. In my experience, resistance to change has taken many forms, both organizational and emotional.

Common examples of and reasons for resistance to change include:
• complacency
• vested interests, self-preservation, and ego
• ”We’re too busy to take the time to change”
• ”There hasn’t been a crisis so why change?”
• denial that there is a need for change
• ”We’ve always done it this way”
• the organizational goals are too narrow or too vague which cause people to resist because they aren’t sure what it is they can or are expected to do
• organizational ineptitude

Once the indicators of resistance are identified, the tactics necessary to overcome them have to be developed and will vary depending on the specific resistance.

Bear in mind that often there are valid reasons why people resist change - reasonable caution and the fear of losing one’s job are among them.  Often some business owners and staff are overwhelmed with all the details that change involves.  In these instances, planning for and implementing change that includes a step-by-step process, with “small wins”, is especially important.  Whatever they may be, all types of resistance must be identified and addressed, including the resistance presented by the business owners themselves.

I have always found that dealing with resistance as soon as possible in a straightforward manner, while understanding the resistor, is the most effective way to proceed.  When necessary, I have also fired those people who were total impediments to change.  These people – even those who are otherwise talented – are the ones who are preventing you from reaching your goals.

All told, if one is to create real change, it is necessary to identify the reasons for, and nature of, resistance and work with it.
 
Urgency
Finally, a sense of urgency must be established if complacency is to be avoided and credibility and momentum maintained.  Organizations will push and pull to return to the old order.

Meaningful change, when properly planned and implemented, is exciting and makes organizations more efficient, productive, and profitable, and makes life better for everyone within the organization.  In one case, a reorganization that was met with significant resistance involved a division of 225 people in eight departments.  By carefully adhering to the procedures set forth above, and involving virtually every department in the company, the end results were:
• increase productivity from a low of 16% to a high of 253%
• reduce staff, usually by way of attrition, by 17%
• reduce operating costs by 15%

Equally important, the changes that occurred were permanent and affected and included all segments of the company from IT and human resources to customer service and senior management.

One last note: A sense of humor goes a very, very long way.  Change is stressful and demanding.  Lighten up and have a good time.

Donald J. Cecchi is President of the Cecchi Consulting Group which specializes in reorganization, business development, and the design and implementation of new projects.  He can be reached at cecchicg@aol.com.

by Donald J. Cecchi

   This article was published in The Productivity Institute (PI) Newsletter . (Part 2 of 3)

Reorganizing Your Company Can Lead To Happier Customers And Employees, And Generate Bigger Profits.  This Step-By-Step Process Will Show You How To Create Change And Avoid Pitfalls.

Planning And Implementation
Planning and implementation are the most critical phases of effecting change.  The question must be asked: What must be done in order to carry the vision forward and who should be included in the process?  It is now something of a cliché to say that “change must come from the top”, and, like many clichés, this is certainly true.  In the absence of commitment at the highest level, only minor change will be possible.  However, no one person can create transformation.  Also, collaborations are more productive and, ultimately, the most effective way to bring about meaningful and long-lasting change. Therefore, a team must be created that represents a cross-section of the people who will be affected by change.

The reorganization team must include both management (those with the authority to effect change) and staff.  Everyone must possess specific knowledge and expertise.  In order to move the process along, and to avoid endless planning, some members of the planning committee must possess leadership qualities.  It is from the latter group that the person responsible for coordinating and leading the entire planning process will be drawn, someone with a combination of professional and interpersonal skills, knowledge, and experience who is able to think analytically, listen, delegate responsibility, and be dedicated to bringing about change.

Once a planning committee has been assembled, it must develop a detailed course of action, which includes:
• a clear understanding of the corporate vision
• the goals of the proposed change
• the benefits that will be realized as a result of the planned change
• an assessment of the current problems
• specific objectives and the steps that are necessary to attain them
• a budget
• a detailed schedule of activities with firm, but realistic, deadlines that take into consideration current workloads
• broad categories of actions that need to be taken, which are built upon in greater detail as the planning process proceeds
• a list of required resources, including personnel, equipment/supplies, IT systems, and information
• specific assignments for the appropriate people that are clearly communicated to them
• a list of work products and deliverables, including progress reports, and deadlines for each
• a list of measurables that can be used to evaluate progress

The implementation phase requires activities similar to the planning stage. One must:
• build a team to carry out the plan that includes staff at all levels
• communicate the reasons for the proposed change
• explain to the people who were chosen why they were chosen, which also offers an opportunity to praise their abilities and work
• communicate specifically what has to be done
• offer them the opportunity to review the plan, comment on it, and contribute suggestions to making changes or “tweaking”
• create schedules for implementation, with expected deliverables, including: progress reports; status of specific goals and objectives; new procedures; computer hard- and software installations; personnel changes; and problems that have arisen and their solutions
• establish a process to monitor progress that includes periodic meetings to review progress, problems and updates
• be prepared to assess progress and adjust your course of action

And at whatever level they are, and whenever possible, people who are resistant to change should be excluded from both the planning and implementation stages.  Their negativity can infect everyone else.  Of course, people who subvert change covertly will have to be identified and dealt with.

Motivating Staff For Change
Once a plan has been developed and an implementation team put in place, it will be necessary to motivate staff.  It is important to remember what exactly motivates people in the workplace in order to create ownership.  Many people find it surprising that salary is not very high on the list.  Key motivators are:
• recognition and respect
• the work itself
• responsibility
• advancement
• personal growth
• being informed as to what is going on throughout the organization

One of the greatest motivators is short-term “wins.”  Their importance cannot be overstated; without them, the long-term objectives will not be achieved.  Short-term wins are the small success stories in any long-term project which create a tangible reality of what is occurring.  In addition, they build momentum, help fine-tune the entire change process, and add pieces to the whole process upon which the larger change can occur.  They also give staff a very real sense of accomplishment and a perception of what is possible.  In addition, they avoid a perception of getting bogged down, which can be fatal, and they undermine resistance to change.  They keep the bosses happy and on board.  They also offer a wonderful opportunity to thank staff and to give positive feedback.

A genuine climate for change must be established and maintained throughout the entire change process.  This means that people have to be allowed to have input, that their ideas and comments will be genuinely welcomed and incorporated into the plan, and that full and coherent communication takes place among everyone involved in the process and, if possible, throughout the entire organization.

In order to provide everyone with the same information, regularly scheduled meetings and written status reports, both of which should be succinct, are a must. These should include:
• the status of the change
• problems that arose, what caused them, and how they were handled
• deadlines met or not met
• needed clarifications
• on-going evaluation
• changes in process, schedules, and personnel
• and, most important, what “wins” have occurred

Once again, the greater the number of people who are included in the dissemination of information, the more smoothly, and effectively, change will occur.

Informal “water cooler” and “management by walking around” communication is also necessary.  It serves to gather information and feedback that people might be reluctant to convey in a more formal setting and, even more important, it conveys the message to employees that management is genuinely interested in the project, and concerned about and interested in them as individuals.

In addition, since change is frightening to people, communication will allay much of the resistance and fear that might be created.  It also allows for on-going praise.  In my experience, public recognition or a “thank you” note have worked wonders.  Making sure bosses know what a great job the staff has done is very effective.

Successful change does, in fact, empower employees, motivate them, and give them a sense that they are making significant contributions to the organization.  Equally important, it serves to create a new culture, one in which change is accepted, integrated, and long-lasting, and complacency and resistance are hopefully banished, or at least reduced to a minimum.

A warning should be offered here:  During the change process, there are times when a drop-off in productivity will occur.  This is not surprising, but, of course, must be kept to acceptable levels, and the causes and remedies identified.

(Note: part 3 of this three-part article will be published in the next issue of the PI newsletter.)

Donald J. Cecchi is President of the Cecchi Consulting Group which specializes in reorganization, business development, and the design and implementation of new projects.  He can be reached at cecchicg@aol.com. 

by Donald J. Cecchi

   This article was published in The Productivity Institute (PI) Newsletter . (Part 1 of 3)

Reorganizing Your Company Can Lead To Happier Customers And Employees, And Generate Bigger Profits.  This Step-By-Step Process Will Show You How To Create Change And Avoid Pitfalls.

Are you totally happy with the way your business is being run?  Is it generating the revenue you would like it to? Are your employees as productive as you would like them to be?  If so, don’t bother to read this article.  If, however, you believe things could be better, and if you recognize any of the following events or symptoms, then you have a need to change your company:
• unclear goals and objectives
• lack of communication and information resulting in “the left hand’s not knowing what the right hand is doing”
• a duplication of effort or, its opposite, a gap in procedures
• a fall-off in revenue compounded by increasing costs
• people having to work 24/7
• recurring crises
• IT systems that don’t provide management with sufficient information or cause excessive down-time
• missed deadlines
• customer dissatisfaction
• low morale and lack of motivation

Many business owners have tried to change their companies and have given up in frustration.  Others simply aren’t sure how to go about it.  In order to bring about long-lasting and meaningful organizational change, it is necessary to:
• develop a vision and articulate the need for change
• understand the current corporate culture
• develop and implement a strategic plan
• motivate staff and create ownership
• overcome resistance
• maintain a sense of urgency

Creating A Vision And Articulating The Need For Change
A vision is the first step in creating change.  It is the responsibility of leaders to formulate the vision and of managers to plan and implement the vision.  Both must work together if change is to occur.  Although this may seem obvious, many have failed by breaking this rule.

Articulating a vision is not always as easy as it may sound, and stating that “I want to increase my revenue” doesn’t cut it.  A vision is a succinct statement of where one wants to take a company.  It can be expressed in either qualitative or quantitative terms, but it must be desirable, feasible, focused, and flexible enough to allow for changing conditions.  Ideally, it will also be inspirational and motivating.  

Examples of a corporate vision include:
• becoming the best company of your type
• developing a product that is responsive to new market demand
• expanding into new territory
• developing a new market for a current product
• diversifying your product line
• developing total customer satisfaction, thereby increasing sales

The vision must also be communicated in a manner that is clear, concise, and compelling.  If it is too detailed, or confusing, it is doomed to failure.  It must be delivered by someone who has leadership qualities and the clout to make it happen.  If size permits, a meeting with all employees is ideal.  Alternatively, a meeting with each department face-to-face will do.  And if this is not possible, a personal email message or memo to all employees will suffice.

Understanding the Current Organizational Culture
To some people, this part of the change process causes them to think touchy-feely, and they dismiss it as an unnecessary exercise.  In fact, it is one of the most important steps in implementing meaningful change.  All corporations and organizations have a culture, whether the business is small or large.  Unless one understands that culture, change will be impossible.

Culture refers to the communal values, the shared norms of behavior, the common goals of an organization, and the ways in which they evidence themselves. When trying to understand your organization’s culture, ask the following questions:
• Does everyone understand what the vision is?
• Is the organization aggressive or complacent in achieving its goals?
• Do all decisions “come from the top,” or are people empowered to accomplish tasks?
• Is the organization micro-managed?
• To what extent do collaboration, cooperation, and competition exist?
• Are workers motivated and satisfied, or do they harbor real and/or imagined resentments?  What are they and why do they exist?
• Does everyone, throughout the entire organization, see the need for change?  If so, what kinds of change and at what pace are they willing to develop, implement, and maintain those changes?
• Has the organization been run in the same way for a long period of time?
• What are the strengths and weaknesses of the entire organization and of its staff, and what motivates each individual?
• How does management function within the culture?

Understanding the culture of an organization can be a difficult process.  Answering and evaluating these questions involve assessments of both management and staff, and can cause defensiveness.  But corporate cultures are entrenched, and must be taken into consideration before meaningful and effective strategies and plans can be developed to implement the corporate vision.  Without an understanding of the culture, reorganizations or new projects will, in all likelihood, fail.

(Note: part 2 of this three-part article will be published in the next issue of the PI newsletter.)

Donald J. Cecchi is President of the Cecchi Consulting Group which specializes in reorganization, business development, and the design and implementation of new projects.  He can be reached at cecchicg@aol.com.