In my practice as an organizational effectiveness consultant Cheap Hats , the most frequent phone call I receive involves clients and prospective clients asking how to overcome resistance to change in their organizations.
Throughout my book, Strategic Organizational Change, I recommend a strategy-driven approach to planning and implementing change. Unfortunately, many organizations do not follow a systematic approach (my approach or anybody else's) for planning and implementing change.
An Unworkable ?Plan?
Most organizations still attempt the following ?plan? for organizational change:
1. senior management determines that a change is needed
2. the CEO announces the change to 'the troops?
Needless to say Cheap Hoodies , this ?plan? is inviting resistance.
Seven Essential Change Elements
In the unworkable plan above, senior management has failed to consider the following seven essential elements for successful organizational change:
1. Involve the people who will be affecting (and affected by) the change. Get their input. Workers are a valuable source of information for management decision making. Today's workers want to be part of what's happening. (No buy-in from these folks guarantees resistance.)
2. Communicate a good reason for the change. Human beings can change quickly when they see a way to maximize benefits andor minimize threats. Make sure the change is seen as relevant and strategy-driven. (Busy people will resist changes that they see as irrelevant.)
3. Designate a champion for the change. A senior executive does not have to take the champion role. In fact, it might be better to find someone the workers can relate to. (Natural leaders, many times in unofficial roles Cheap Shirts , exist throughout every organization. Take advantage of their leadership ability.)
4. Create a transition management team. This cross-functional team can provide emotional support as well as practical ideas for change leaders. (Remember, no one individual is charismatic or talented enough to effectively implement an organizational change single-handedly.)
5. Provide training in new skills, behaviors, and values. If workers fear a loss of competency Cheap Jerseys , they will resist change. They will revert back to the old skills, behaviors, and values when they feel threatened. (Change invariably involves a threat to one's current sense of competency.)
6. Bring in outside help. This sounds like a self-serving comment since I am an independent consultant, but the external consultant can play a critical role. An outsider brings a fresh perspective. An outside consultant doesn't have an ?axe to grind.? (And realistically Wholesale NBA Hats , most senior managers are not trained in leading or facilitating organizational change.)
7. Reward people. Remember, whatever behaviors you reward, you get more of. Rewards do not have to be in the form of cash. Acknowledgement, praise Wholesale NBA Hoodies , new job assignments, or additional decision-making authority can be more powerful motivators than cash. (In every successful organizational change, people are the essential factor.)
When economists agree a downturn is inevitable don't immediately fire all your staff and prepare for the worst, after all your staff are your best asset. With some careful cost-measuring measures to maximise your company's efficiency Wholesale NBA Shirts , you can alleviate the need to make widespread redundancies later.
Financial experts offered the following advice for those companies intent on surviving an economic downturn:
Improve Customer Service Understand your customers and what is happening in their markets. Anticipate their needs. Which customers do you want to attract and retain? Tighten up your quality control systems to avoid costly mistakes and guarantee customer satisfaction.
Manage Cashflow If your company is a small to medium sized enterprise, you should concentrate more on cashflow than profits. Many profitable businesses face difficulties because they simply run out of cash. Managing your cashflow enables your business to keep trading and that means reviewing all the areas where cash can become stuck or 'lost?. You need to identify potential cash bottlenecks within your company; review your investment in fixed assets, raw materials and saleable stocks; reconsider an appropriate system of stock control, and re-examine your credit system.
Halt Expansion Plans If necessary you should delay any expansion plans.
Be Stingy With Credit Avoid the temptation to win over large customers with generous credit terms because if the large customer gets into difficulty Wholesale NBA Jerseys , your company will suffer the knock-on effects.
Review Your Business Plan Revise your business plan regularly and update your visions, objectives and goals. Make sure everyone in the company understands the business plan and the part they play in it.
Look At Your Business Forecasts Draw up a realistic business forecast and work out the ?break-even? point. Once you've updated your cashflow forecast, work out what impact a drop in sales will have on the business. This will provide you with a clear indication of how your business will shape up if trading conditions get tougher.
Review Your Stock Reduce your stock levels or have more frequent deliveries to keep stock levels low. Consider selling off old or obsolete stock lines. Prioritise your fast-moving profitable items.
Know Your Best Customers In many cases, 80% of a company's profits come from just 20% of customers. Identify who your most profitable customers are and focus your efforts on them. See if there any other areas in which you can diversify so that if you lose a large customer Wholesale Hats , it won't have a huge impact on your company.