Overcoming Resistance to Organizational Change

To understand why we resist change, it is useful to acknowledge that humans are creatures of habit, and that habits are learned behaviors with predictable outcomes. By creating change, we force those involved – including ourselves – to confront the unknown and “unlearn” things that we previously accepted as producing desirable results. Even if the current results are sub par, they are predictable and at some level comfortable for us – so we resist changing.

There are 3 types of resistance that most frequently rear their unproductive heads in an organizational setting: emotional, political, and rational (EPR). Although each has the potential to derail organizational change and all 3 operate simultaneously within us, they are unique in how and when they are most likely to impact your business.

When people first learn about impending change, most – at an emotional level – actually become intrigued and even excited about it. We are naturally curious and relatively optimistic beings, so our emotional reaction to upcoming change is initially positive as you can see on the Emotional graph line in Chart A. It isn’t until the going gets tough that emotions swing to the negative and have the potential to create a crisis point. If you had the power to listen to what other people think, at the crisis point you might hear things like “I’m not so sure this is really going to work” and “This is much harder than I thought it would be.” As a leader, it is critical for you to anticipate this moment for yourself and for your people so that you can provide the boost necessary to help your team power through to firmer emotional ground.

Click Here to View Chart A

Political resistance to change is all about self-image and the perception of power. Unlike emotional resistance, political resistance kicks in at the exact moment people learn about change. The Political graph line in Chart A begins with a swing to the negative and then slowly trends back up into positive territory, tracing initial questions about the personal impact of change. People think things like “This could cost me my job” and “Why wasn’t I asked about this before the decision was made?” Over time, and as the change process unfolds, even the most seasoned political players learn to adapt, compensate, and otherwise protect their sense of importance, moving them back to positive ground. Warning: there is risk that political resistance will derail your project if it is left unchecked at the crisis point on the graph. To minimize the impact of political resistance, be sure to involve the right people up-front as you plan change and anticipate individual reactions – both of which will help you accelerate the path to acceptance.

Rational resistance to change is the easiest to both understand and overcome. As people try to understand change, they look for facts, relevant comparisons, and logic to help justify why it is necessary and what they should expect both during and after the process. Along the way, they look for measurable evidence of success and progress to correlate how their organization is doing compared to what they expected. The result of this is a straight-line Rational graph line on Chart A that begins at neutral and slowly trends toward positive acceptance. Thorough planning and open communications before and during change initiatives minimize the impact of rational resistance. As many of my clients learned the hard way, it is much better to deliver “bad” news or information about the imperative for change in an open and up-front manner than to shield it from employees to “protect” them for as long as possible. The same rings true for communicating successes, failures, and progress during the change process. Any news – even bad news – helps to minimize rational resistance to change.

How does EPR resistance to change impact your company? What did this cost you last year, and what would the benefits be if you could reduce their effects in the future?

Plans, People, Process

When I ask business owners to tell me where they want to drive their business, in most cases I get either a blank stare or a highly tactical response like the one I recently heard – “We are going to hire 3 new salespeople in 2009 and really push our [newest and most profitable service] business.” A statement like this is usually more of a reaction to events from the prior year than a forward-looking statement of what they really want to accomplish. It also oversimplifies the tasks at hand.

Running a business in this manner is akin to trying to drive a car to an unknown destination while looking in the rearview mirror; you don’t know where you are going and you could very well get yourself and others killed along the way!

The most significant root cause of EPR resistance to change – by far – is an underinvestment in strategic planning. To be clear, strategic planning is a thought process that helps business leaders clarify and then merge their concept of what they want their business to become with the external realities of the marketplace and the internal realities of their organization. The result is vastly improved precision regarding direction and focus, and a realistic assessment of the organization’s strengths, limitations, opportunities, and risks. Tactical planning and planning for change becomes much easier when a big picture has been defined – not just in terms of what must be accomplished, but also why it matters.

If you are reading this and thinking to yourself, “but my company is too small to need a strategic plan,” you might want to reconsider if indeed you are, or if you might be thinking too small not to have one!

Business planning – the combination of strategic planning (first) and tactical planning (second) – helps set the stage for change and will provide you with multiple opportunities to anticipate and overcome EPR resistance to change, in yourself and in your staff. It also facilitates the integration of your plan, your people issues (how to further develop yourself and your people), and your processes (which ones require examination for potential improvement) into a single set of tasks specifically designed to get you where you want it to go.

Change in your company starts with you, and it is never too late to plan for your future.

Ray Noorda, technology pioneer and former president and CEO of Novell Corporation, said: “Cause change and lead; accept change and survive; resist change and die.”

As a leader, it is important to acknowledge that you are also resistant to change. How do your own emotions, ego, and sense of strategic clarity impact your ability to drive change? Are you surrounding yourself with the right people to facilitate change or do those around you take too much comfort in the status quo?

Although there may never be a truly “good” time for change, it is always far better to plan for it proactively than to find yourself reacting to events that may not be fully in your control.

The Fallacy of the Status Quo

Like death and taxes, change in business is at once inevitable and difficult to comprehend. It also happens to be necessary if your aim is to create a sustainable, competitive enterprise. Ignore this imperative at your own peril, as history has taught us over and over again. Once great firms like AT&T, Polaroid, and A&P exist as a shadow of their former selves while others including Bethlehem Steel disappeared altogether, in large part because they couldn’t change.

This is not just a large company phenomenon; when it comes to change, size doesn’t matter. Smaller firms fall victim to this slow demise with great frequency, it’s just that their stories are rarely the stuff of MBA case studies. Whether it’s hubris, a virtual monopoly, or flat out denial of external circumstances and events, the common denominator of these sad endings is a literal death grip on the status quo by otherwise competent leadership.

The concept of status quo is misleading, because in fact nothing ever stays the same. Just like a wad of cash buried in your back yard inevitably loses value over time, so it is with the status quo in business. Your markets, your clients, and your competitors will eventually outgrow and outpace you if you are unable to change and evolve. Although it may feel comfortable, the status quo is not a good thing at all; it is a slow motion business killer.

Whether you are conscious of it or not, odds are that you and your team embrace the status quo in a variety of areas. One client of mine – the president of a mid-sized Insurance agency – retained a problem manager for far longer than he should have – because of a misplaced sense of loyalty to her. Another delayed a much-needed technology upgrade because “things are working fine as is” (including, by the way, a number of labor intensive manual tasks). For over 6 months, a third client postponed a difficult conversation with a high-end producer who had become complacent in outside sales and spent virtually all of his time working his existing book.

During good times, we tend to give ourselves and our people credit for a job well done (think high-fives, healthy bonus checks, and lavish holiday parties). The result? “Let the good times roll, and let’s continue to do what we’ve been doing.”

When performance falters, our impulse is to identify and then blame external circumstances as the cause immediately followed by pushing harder to improve results (think it’s “the economy” and any underperforming employee you’ve recently counseled). The result? “We are underperforming because of the economy overall, so let’s buckle down and get more appointments to win our share.”

Ironically, both extremes reinforce the status quo; that is, you and your people generally continue to do what you’ve been doing. Your rationale is the only thing that actually changes!

What are your areas of status quo and why is it so difficult to move yourself and your organization beyond them? Where are your people stuck in the status quo?

The paradox of the status quo is that it makes us feel so comfortable. Only you can decide whether that’s good enough or if you’d like to plan for change to make your business more competitive over time.

Office Politics: Survival of the Savvy (Part II)

(Today’s post is part two of a two part series on Office Politics)

Three Phases of Political Competence

Political competence is a three-phase process. To bring people to your side, you must follow a systematic sequence. Otherwise, you may spend too much time talking with people who don’t need to be convinced of your idea’s merits. You may also fail to identify your chief opponents before they seize the opportunity to derail your efforts.

1. Map Your Political Terrain

First, identify all stakeholders—anyone who has an interest in, or who would be affected by, your idea—and how they will react. Some resistance is inevitable. You must anticipate others’ reactions, identify allies and resisters, analyze their goals and understand their agendas.

When you face objections, don’t go to individuals’ bosses or peers to undercut their arguments. Instead, ask them questions to determine their goals. A stakeholder may share your goal, but not your implementation approach; disagree with your goal, but share your approach to change; share neither; or share both. You can identify potential allies and resisters with direct questioning.

2. Get Others on Your Side

Build your coalition—a politically mobilized group committed to implementing your idea because doing so will generate valued benefits.

Creating coalitions is the most critical step in exercising your political competence. How do you win support? You need to be credible. You communicate credibility by letting potential allies and resisters know about your expertise, demonstrating personal integrity, and showing you have access to important people and information.

Through informal conversations, meetings and office drop-ins, you need to explain your position, keeping in mind four different motivational styles:

Rational: Use statistics and numbers to convince data-driven people how your proposal will save money, time or resources.

Mimicking: Cite successful companies that have benefited from similar ideas when dealing with people who are interested in best practices.

Regulation: For those concerned about rules and compliance, show how your idea will help in these areas.

Expectations: For those driven by a need to meet or exceed expectations, explain how your proposal will please customers, shareholders and the community.

3. Make Things Happen

You must win others’ buy-in by making it clear there’s a payoff for supporting your effort and drawbacks for not joining your coalition. Show how implementing your idea will ease their workload, increase their visibility within the organization or help them cut costs in their unit.

Once you’ve persuaded people to join your coalition, you’ve established a base that will legitimize your idea. Coalition members will then use their networks to evangelize for you.

As the coalition grows, don’t lose sight of the need for active leadership to keep members focused and sustain momentum. Watch for complacency and manage conflicts and disagreements over goals or processes. These are inevitable and must be resolved.

Mastering only certain parts of the three identified phases will not yield success. The following leadership archetypes sabotage themselves by failing to complete all three phases when attempting to generate and implement change.

The Political Analyst

Don’t be fooled into thinking that astute political analysts have high political competency. Analysts are skilled at anticipating others’ reactions and understanding their agendas, but they can’t get people to join their side. They’re incapable of sustaining the dialogue and interactions necessary to build coalitions. They may try to make things happen, but mapping the terrain is only the first step—and it’s never enough.

The Consensus Builder

Consensus builders do their political mapping, understand the terrain of allies and resisters, and spend time building coalitions—but they never seem to move beyond this point. They’re unable to mobilize supporters in a way that makes things happen.

Consensus builders have very strong process capabilities. The scale often tips in their favor because they can get people on board and they generally have a favorable reputation, which attracts resources and people.

They also have the ability to prolong meetings, insisting that conferences are the solution to every problem. An organization with too many consensus builders will spend an inordinate amount of time meeting, discussing, evaluating and never really accomplishing much.

Politically competent leaders map the terrain, get people on their side by building a coalition and lead the coalition to achieve results.

Reducing Risk through Politics

There are risks with any course of action you take. You sometimes have incomplete or inadequate information when making a decision. Building a coalition through dialogue with its members pushes valuable information to the surface.

You are open to criticism and politically vulnerable whenever you make a decision. Politically competent leaders reduce risk by getting as many people as possible on their side. Building a coalition is a search process for the best solution.

Building a coalition, bringing people together and solidifying/expanding your base will leave you less vulnerable to criticism. It’s more difficult to attack a leader who has built a large base of support throughout the organization.

Competent leaders accumulate political currency, making it easier for them to take on future projects. They capitalize on their successes to expand their coalition and prepare for further actions.

Office Politics: Survival of the Savvy

(This is part 1 of a 2 part post on Office Politics, please stay tuned for part 2 on the Three Phases of Political Competence)

Political savvy is a vital competence for any executive, but it’s not taught in leadership or grad school courses. In fact, the term “office politics” has received a bad rap. (Words like “Machiavellian,” “manipulative” and “conspiratorial” come to mind.)

Tales of political sabotage, power plays and turf wars are part of any organization’s history. Nonetheless, political competence is the one skill everyone wishes to have more of—but no one talks about it. When you ask people how they achieve results within their organizations, they cite market analysis, strategic planning and brainstorming. They never mention politics.

Until recently, few books explained how to use political competence to build one’s career, improve a team’s results or boost the company’s bottom line. Samuel B. Bacharach, director of Cornell University’s Institute for Workplace Studies, recently published Get Them on Your Side. Rick Brandon and Marty Seldman have written Survival of the Savvy: High-Integrity Political Tactics for Career and Company Success. Art Kleiner weighs in with Who Really Matters: The Core Group Theory of Power, Privilege, and Success. These books shed light on this crucial competency, which every leader needs to master.

Political competence is the “ability to understand what you can and cannot control, when to take action, who is going to resist your agenda, and whom you need on your side. It’s about knowing how to map the political terrain and get others on your side, as well as lead coalitions,” according to Prof. Bacharach.

Many individuals have good ideas that, if implemented, could yield positive results for their companies. Sometimes, these ideas fall flat because the leaders who propose them cannot gain support from key people. They are unsuccessful in building a coalition to bring an idea into practical use.

A corporate version of survival of the fittest exists, especially in tough, competitive economic times. No one wants to admit that destructive politics and gamesmanship go on, but intense pressure to succeed drives some executives to use their political savvy to win by any means.

Defining Political Savvy

It’s naive to suggest that all office politics are destructive and unethical. If you define politics in such a narrow and negative way, you overlook the value of political awareness and skill. If political astuteness is combined with the right values, it can be an advantage for you, your team and your organization.

“Organizational politics are informal, unofficial, and sometimes behind-the-scenes efforts to sell ideas, influence an organization, increase power, or achieve other targeted objectives,” according to Brandon and Seldman in Survival of the Savvy.

In this definition, there is nothing either positive or negative about politics. The term is value-free. Whether organizational politics are destructive or constructive is determined by two criteria:

1. Whether the targeted objectives reflect the company’s interests or merely one’s self-interest

2. Whether the influence efforts used to achieve these objectives have integrity

Political savvy and skill can help ethical, competent leaders sell their ideas and influence others to benefit the organization.

Ignore at Your Own Risk

There are several important reasons to acquire political savvy:

1. Ignoring its existence is akin to throwing the baby out with the bathwater. When political astuteness is combined with ethics and integrity, it can produce positive results for you, your team and your organization.

2. By avoiding or denying its existence, you underestimate how political behavior can destroy careers, a company’s reputation and overall performance.

3. If you define politics in only negative terms, you are naively under-political, which leaves you vulnerable to overly political, self-serving individuals.

You must develop political skills to survive and thrive in any organization. Overly political people can—and do—earn positions of power, and they can damage competent, loyal individuals who don’t play their game. You need high-integrity political tactics to play a better game.

When people get burned by overly political agendas, they may quit their jobs, only to find even more political game-playing at the next company they join. Worse, if they choose to stay in a politically charged workplace, they may allow their intimidation or resentment to drain their energy and compromise their performance. When this happens, they become disengaged.

It’s far better to recognize that organizational politics exist in both constructive and destructive forms. There’s simply no escaping it. That’s why it’s essential to learn how to use one’s political savvy with integrity. Nonmanipulative tactics can help you harness the power of politics in a way that brings results. Political astuteness can be a character virtue and a company asset—if you learn to use it ethically.

A Leadership Checklist: 7 Questions to Ask Yourself (Part II)

(This is part two of a two-part post on Leadership. Please see last week’s post for part one)

Ask yourself how you’re doing and what you should be doing differently—and be sure to answer truthfully. As simple as this may sound, many people are shocked by their answers to basic management and leadership questions.

Last week’s blog covered the first three checkpoints of leadership questions to ask yourself:
1. Vision and Priorities
2. Managing Time
3. Feedback

This post will cover the last four leadership checkpoints:
4. Succession Planning
5. Evaluation and Alignment
6. Leading Under Pressure
7. Staying True to Yourself

Succession Planning

Have you picked one or more potential successors?

If you aren’t identifying potential successors and developing their leadership abilities, then you are contributing to business and personal stagnation. There won’t be enough leaders to grow the business.

When challenging and testing people, you must frequently delegate more to them. This frees you to focus on critical strategic matters facing the business. When people are not being challenged, they may leave to seek opportunities elsewhere.

Planning for succession means your people will improve their performance, you’ll be more successful through them, and you will pave the way for your own promotion. Failure to actively plan for succession means you do not delegate sufficiently and become a decision-making bottleneck.

Ask yourself:

• Have I, at least in my own mind, picked one or more potential successors?
• Am I coaching them and giving them challenging assignments?
• Am I delegating sufficiently?
• Have I become a decision-making bottleneck?

Evaluation and Alignment

Your business is constantly changing. So are your customers. Depending on your industry, this may be rapid—or extremely rapid. If you don’t change along with the business environment, you may become seriously out of alignment. What got you here today won’t necessarily get you there tomorrow. The people you hire, the way you organize them, the economic incentives you offer them and even the tasks you delegate may no longer create the culture and outcomes that are critical to success.

Have you checked to see if the design of your organization still aligns with key success factors for your business? Effective executives regularly seek advice and fresh perspectives from people who are less emotionally invested in their business. This allows them to determine whether historically relevant aspects of the business remain critical to tomorrow’s success.

Ask yourself:

• Does the design of my company still align with key success factors?
• If I had to design my business from scratch, how would I create it? How would it differ from the current design?
• Should I create a task force to answer these questions and make recommendations?

Leading Under Pressure

A leader’s actions during stressful times have a profound impact on the firm’s culture and employees’ behaviors. Successful leaders must be aware of their personal stress triggers and reactions. Behaviors should be consistent with beliefs and core values, no matter how severe the stress.

Pressure is a normal part of doing business, but it affects people differently. What may evoke anxiety for one individual may not bother someone else. As a leader, you are watched closely. Emotions are contagious—even more so when they come from the leader.

You must be sufficiently self-aware to recognize the situations that create anxiety for you and manage your behavior to avoid sending counterproductive messages to your people.

Ask yourself:

• Which events create pressure for me?
• How do I behave under pressure?
• What signals do I send to subordinates?
• Are these signals helpful, or do they undermine the success of my business?

Staying True to Yourself

Successful executives develop leadership styles that fit their business needs, as well as their personal beliefs and personality. While many leaders ask themselves about the former, few analyze the latter.

Companies require leaders who can express strongly held views, rather than mimic the party line. Do you hold back for political reasons? Do you encourage your people to express their opinions and make waves, if appropriate?

Don’t tiptoe around significant issues or foster an atmosphere that encourages employees to do so.

Ask yourself:

• Is my leadership style comfortable? Does it reflect who I truly am?
• Do I assert myself sufficiently, or have I become tentative?
• Am I too politically correct?

• Does anxiety about my next promotion or bonus cause me to hesitate when I want to express my views?

In the early stages of your career, you may have received plenty of guidance and support from superiors and mentors. As you’ve been promoted, however, you’ve probably encountered fewer sources of honest and useful feedback. By the time mistakes have come to light, it may have been too late to fix them.

Successful leaders continually ask themselves hard questions to stay on track in a world of rapid change. Remember to step back and gain fresh perspectives so you’re prepared with a new game plan when change occurs. If you’re standing too close to the blackboard, you won’t see mistakes until it’s too late.

These questions are designed to ignite serious introspection. They can be even more productive when discussed with a trusted advisor, coach or mentor.

When is the last time you had a leadership checkup?