A recent executive roundtable conducted by the Executive Council for Leading Change (ECLC) explored effective strategies for managing organizational change and overcoming resistance. Leaders from various industries shared their experiences, offering valuable insights into navigating different types of change, addressing human factors, and maintaining momentum through cultural intelligence and energy management.
The roundtable took place on 10th October 2024. The attendees were:
- Azeeza Sunmonu, GE - Head of Operations
- Caitlin Nguyen, Abbott - Head of Digital
- Magnus Alvarsson, Eviden - CEO
- Ranjith Nair, Air Liquide - COO
- Robert Jessing, SATS - Head of Strategy and Growth
- Rhys Taylor, VML - MD
- Nissan Joseph, Metro Brands - CEO (moderator)
Understanding the Change Spectrum and the 3 Types of Change
Organizations today face a broad spectrum of change, each requiring tailored approaches for successful implementation. Three primary types of change were discussed: crisis-driven turnarounds, growth acceleration, and transformational shifts.
1. The Crisis-Driven Turnaround
Crisis situations often create a clear path for implementing change. In times of financial or operational distress, transparent communication becomes the first critical step. When an organization identifies urgent issues, such as cash flow challenges, the immediate alignment of teams around a common goal can be achieved through openly sharing the crisis. This concept, often referred to as a "burning platform," highlights the pressing need for change and motivates swift action.
However, the takeaway was that waiting for an actual crisis is unnecessary. Instead, leaders should proactively create a sense of urgency by clearly communicating the consequences of inaction. A "burning platform" doesn't need to be a real emergency; it can be the articulation of future risks if current strategies are not adjusted in time.
2. The Growth Acceleration Challenge
Managing growth acceleration brings its own set of complexities, particularly when an organization is already performing well. The challenge lies in convincing people that rapid expansion is necessary, even when current operations are successful. This type of change can feel like "changing an engine while the plane is flying"—a balancing act that requires maintaining current success while pushing for even greater growth.
The key to navigating growth acceleration is framing it not as a reaction to problems, but as an opportunity for enhanced success. Leaders must:
- Clearly demonstrate why the current pace is insufficient for future success.
- Paint a clear picture of the enhanced benefits and opportunities that acceleration enables.
- Provide concrete resources and support to manage increased velocity.
3. The Transformational Shift
Transformational change, which involves fundamental shifts in both operations and mindset, emerged as the most difficult category to implement. These changes often require an organization to expand into new areas, introducing activities that may initially seem at odds with the existing business model.
One effective strategy is creating a deliberate separation between traditional and transformational efforts, allowing both to progress without clashing. By doing so, organizations can protect the core business while giving new initiatives the space to develop and flourish.
The 5 Key Human Elements of Change
1. Addressing Core Motivations
At the heart of successful change management is the ability to address fundamental human needs and to do it with effective persuasion. Three key factors drive stakeholder reactions during periods of change:
- Health & Wellbeing: Change can create anxiety, especially when it threatens personal stability. Leaders must actively manage this by ensuring that change initiatives are as energizing as they are challenging, reducing stress and avoiding burnout.
- Meaningful Work: People are more likely to embrace change when they see it as an opportunity to increase their impact. When change is framed as a chance for individuals to contribute in more meaningful ways, resistance diminishes.
- Support Systems: Organizational change inevitably impacts personal lives. Leaders must acknowledge this and provide the space for individuals to maintain their support networks through families or otherwise during high-pressure periods.
2. Managing Emotional Responses
Change triggers a range of emotional responses, each of which requires a different management strategy:
- Fear: Fear-based reactions are common, but they rarely drive long-term success. Regardless, acknowledging the fear is a critical step that leaders must take. However, instead of relying on fear to spur action, leaders should focus on selling the positive story—the hope and opportunity that come with change.
- Hope: The most effective change strategies channel apprehension into excitement for the future. Regularly celebrating progress and highlighting personal growth opportunities helps to sustain momentum.
- Passivity: The most challenging group to manage may be those who neither resist nor actively engage with the change. Clear consequences for inaction, coupled with positive pathways to re-engage, often prove effective in motivating this group.
3. Cultural Intelligence in Change Management
Cultural context plays a crucial role in how change is perceived and implemented. What works in one region may not resonate in another, even within the same organization. Several insights emerged on the importance of cultural intelligence:
- Local change agents are essential for translating the change message in a way that resonates with the local workforce.
- A “yes” in certain cultures may not always signify agreement or commitment, requiring leaders to probe deeper for true alignment.
- The pace of change must respect cultural norms, with some regions requiring slower, more deliberate approaches.
- Communication styles must adapt to cultural preferences, while maintaining consistent core messages across the organization.
Local ownership and empowerment play essential roles in successful change implementation. Rather than trying to directly manage every aspect of change, successful leaders focus on enabling and energizing local teams to drive transformation within their regions. This approach requires careful balance between maintaining consistent global objectives while allowing for local adaptation and ownership.
4. The Energy Equation and Building Sustainable Momentum
Sustaining change requires more than just strategic planning; it demands passion and consistent energy from leaders and teams alike. Every interaction, no matter how small, can either build or diminish momentum. Practical strategies to maintain energy include:
- Scheduling frequent but short check-ins.
- Deploying detail-oriented team members to handle execution.
- Celebrating milestones to keep enthusiasm high.
- Building a network of internal champions helps amplify positive energy, creating a ripple effect throughout the organization.
5. Measuring Progress
While traditional KPIs are important for assessing change initiatives, leading indicators such as employee engagement, cross-functional collaboration, and adoption rates of new behaviors are equally critical. Monitoring these metrics provides early warnings of resistance or disengagement, enabling leaders to make adjustments before issues become systemic.
Success requires a balance between human and operational metrics. Leaders must be agile, continuously adapting based on both quantitative data and qualitative feedback from their teams.
Conclusion
Effective change management goes beyond frameworks and structures—it requires a deep understanding of human needs and motivations, cultural intelligence, and the ability to maintain momentum. By addressing these factors while staying clear on the organization's purpose, leaders can navigate even the most complex change landscapes and drive sustainable success.
The Executive Council for Leading Change
The Executive Council for Leading Change (ECLC) is a global organization that brings executives together to redefine the landscape of organizational change and transformation. Our council's aim is to advance strategic leadership expertise in the realm of corporate change by connecting visionary leaders. It’s a place where leaders responsible for significant change initiatives can collaborate, plan, and create practical solutions for intricate challenges in leading large organizations through major shifts.
In a world where change is constant, we recognize its crucial role in driving business success. ECLC’s mission is to create a community where leaders can excel in guiding their organizations through these dynamic times.
Interested in joining ECLC? Learn the membership criteria and sign-up below.
