Guiding people through change is one of the most difficult business situations leaders can face—even more so during the economic downturn. Taking the proper steps is crucial, especially when companies are facing new challenges presented by the economy. According to Joel Brockner, faculty director of the
High Impact Leadership program and Phillip Hettleman Professor of Business, an effective change implementation plan has four components that leaders must understand and integrate in their leadership: dissatisfaction, vision, process and cost.
Taking into account your organization's current status—whether there have been layoffs, for example—first, you have to make people feel dissatisfied with the status quo, explained Professor Brockner, who is also the Chair of the Management Division of Columbia Business School. "For example, one could say: 'We are performing at this level, but we could be doing so much better.' It is never castigating. The message must always come across positively."
An example of creating dissatisfaction comes from the Motorola archives. "Many years ago, Motorola had a banner season," said Professor Brockner. "The CEO calls an annual convention, and everyone is expecting to be patted on the back. But he is sensing a growing threat from Japan. Instead, he says to his employees, 'I want everyone to go back and tell us what's wrong with this company.' This tactic shook them out of their complacency—a good example of pressing the dissatisfaction lever."
The second step in implementing change is showing people a better alternative: what the future can hold. "A leader must be able to articulate a vision of where the company could be," said Professor Brockner. "With this vision, you have to create momentum for the change."
These first two components are challenging in and of themselves, but they also must be accompanied by an effective process: of getting people from point a, dissatisfaction, to point b, the vision. This is the third component.
"Much of the process is communication—explaining clearly to people why we can't stay where we are, and where we are going from here," he said.
Also important to this process: making sure that key actors and opinion leaders in the company are on board. "You must determine who these people are and spend extra time with them," said Professor Brockner, "because they help you in this process."
The final component in change management: cost. People may see the change as costly, and therefore may resist. "For instance, they don't believe the company can do the new things called for by the change, or they may disagree with where the company is going," said Professor Brockner. There is no one-size-fits-all answer to these cost concerns. Instead, leaders must be curious and try to understand why these reactions are occurring, and then address them.
Professor Brockner concluded: "As a leader, you must press all of those levers. And if any one of these steps is not done well, the outcome of the change is not likely to be as successful as it could be."
Starting soon: The next session of High Impact Leadership takes place Sept. 13–18, 2009. Learn more and apply today.