A Discussion on Change Management and How to Make it Work

Posted Wednesday, September 09, 2009

In my September newsletter I discussed the concept of change. Largely I see the majority of us resistant to change (which I would doubt there would be many arguments against this) and as a society/business community expecting change to happen instantaneously. We are very much in a "now" society. Technology has spoiled us to the point where we demand immediate results. Yet there is something to be said for slowing the process down. And truthfully, by taking more time on the front end, we make things work much smoother on the back end.

Think of the place where you work. How often do things change? How often is that change met with resistance? How many of you are familiar with the "Flavor of the Month"? Often the running joke with each new initiative is "this too shall pass" and your employees play the waiting game to see when you will get tired of the new process, idea, or concept and go back to doing things as before. In fact, your employees can condition you to fail in the change process. In some examples I have seen the stand off last for years! Yes, years. And the only result to come out of it was going back to the old way of doing things so it's less painful. This all because of our need to make changes happen quickly and dramatically.

In my newsletter I spoke about incremental change. This process is most effective in companies that have been highly resistant to change in the past. It is a way of conditioning them to be more receptive to change in the future. In addition, the success rates are much higher that the change will be implemented and integrated into your business. To see some of the points, I will refer you to the article here: http://cdn.shoutlet.com/server/bar/51644/8555/0/s/0. To add to that discussion, I will continue on.

The idea of change is simple, yet the execution of it can seem complex. And in a way it is because to truly implement most changes, you need the full buy-in of your staff. The larger the organization, the more people you have to get on board. In most cases, change is driven top down. Somebody in leadership comes up with an idea and wants it implemented. There may, or may not, be a discussion among management on this change before it is passed down to the next layer. Middle management is given the concept and is then asked to drive it down to the front lines. Here it is crucial that middle managers understand all the how's and the why's in order communicate it effectively to the staff. Often this does not happen as effectively as it should. The change may be shared in meetings, emails, or newsletters, but full buy-in hasn't taken place. In the end this leads to resistance and not seeing the full benefit of the change process.

What if the change process was reversed? Instead of speeding the process up hoping to see immediate results, it was backed down to a more realistic time frame. Also, what if the seeds of change was planted in the minds of the employees so that instead of a top down approach, you drove the change from the bottom up. How might that change things?

Right now you might be saying to yourself, "We need to move quickly so we can react quickly." This is true, but more so when you are doing just that: reacting. Often business decisions, personal decisions, political decisions, etc. are a result of responding to an impending crisis. Sadly, we might have even been warned about the outcomes of this crisis earlier where we could have taken action, but the motivation wasn't there for whatever reason. Then when we are forced to deal with it we react. We need to become better at looking further ahead to prevent this from happening. We need to find ways to take the important but not urgent needs and prioritize.

You may also be thinking, "The employees won't come up with the right solution, and then when we don't use it they will be upset." That is because we have conditioned people to pass their problems to others. This is especially true of many managers. Managers often take on the burden of their staffs issues because they live in a false belief that it's quicker and easier to fix the problem themselves instead of coaching and teaching their people how to effectively deal with it. In essence, the ownership of the problem/idea is passed from the employee to the leader. So if it doesn't work, it's now the manager's problem. This is why it is so important to keep ownership where it belongs, on the individual.

If you are able to improve these two areas: being proactive instead of reactive and placing ownership and accountability on your people, over time you will be able to make change happen quickly and effectively. Take steps today to create a culture of change and the first step will start with you!

I encourage others to share their thoughts and ideas here. Open up a discussion and through that learn how to make change happen.

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China 2.0: Understanding what it takes to open doors in China | CRW • Corporate Report • Wisconsin's Business Magazine

Posted Friday, August 21, 2009

 

Just How Important is Communication?

Posted Thursday, June 11, 2009

Imagine you are making a trip to another city. Unfortunately your car is broke down and you have to rely on someone else to get you exactly where you want to go. In an urban area you might call a taxi, take the bus, or ride on a train/subway. If you live out in the sticks like I do, you may have to call a friend or relative to get you where you need to go. Now what if you couldn't speak and you couldn't write anything legible for the person to understand where you were going. Also, what if the person giving you the ride couldn't speak or write anything down either? All of a sudden the communication that we take for granted on a daily basis would probably get very frustrating.

I recently spent several weeks overseas in China. My Mandarin is quite rough to say the least. I can get out some of the basics but I am a long way from holding a conversation. Fortunately most times I had a translator with me to make sure communication went smoothly.

There were times though where I was on my own and it was up to me to get the message across. For example, one day I chose to travel to Beijing which was a two hour drive by car. Fortunately high speed rail was available which was more comfortable and much faster. The challenge was getting from my hotel to the train station, then to Beijing and back.

I had already experienced the challenge of ordering food at the local restaurants. Fortunately most items were pictures and you could point to what you wanted. Yet there were times where the server needed more information that the picture couldn't provide. Now what? In some cases it was a guess. A few times I was pleasantly surprised with something I didn't think I ordered but I managed to get by. In any case, it was extremely frustrating on both sides when we couldn't understand what the other was saying.

Now imagine yourself traveling 80 miles away with little more than a street address. A normally simple process became amazingly complex. I had to plan ahead of time and make sure my translator understood exactly where I wanted to go. I then had to trust that she would write down the correct information. (She must have liked me because I made it back) On top of that, I couldn't read what she wrote so she needed to translate each phrase back to English so I would know what I was "saying".

The taxi rides were very interesting because all the taxi drivers loved to talk, or at least all the ones I rode with did. Imagine having a conversation with someone and all you can do is smile, nod and try to explain you don't understand a single word that person is saying. Again, frustrating.

So what's my point here besides learn the language? This is an extreme example of how difficult communication can be. Many people who have been in a leadership role can relate to this experience even when the people you are speaking to DO speak the same language. The key is mutual understanding.

The other day a client shared how easy their job would be if it wasn't for the people and the difficulty understanding them. Two people can interpret information very differently. We often make the assumption that because we understood what we meant, that others should get the same message. Not the case. Many problems can be avoided if we work toward understanding. This is true whether you speak to a taxi driver in China or an employee on the production floor. The better you get at understanding the easier it will be to get things done the right way.

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Business would be wonderful if I could just fix all these damn problems!

Posted Monday, May 11, 2009

Is that something that you said to yourself? Maybe even thought it a couple times? I think every business owner or executive has come across a point where they wished they knew all the answers.

Every business has its challenges. We may think the grass is greener at another company in another industry in another location. The truth is it probably isn't all that different. In fact, they are probably dealing with the same problems as you!

Throughout the past 20 years, I have worked for (or with) someone. Their problems were everything from lack of sales, lack of qualified people, poorly trained people, high competition, low margin, commoditized goods, etc, etc, etc... It didn't matter that the company was less than ten people or several thousand. Each faced pretty much the same problems. The only real difference was the scope of the problem relative to the size of the company.

Often we focus on the wrong things. We get trapped by the problems in our head. We worry too much about our competition and what they are doing when the focus should really be on ourselves.

I remember working with a company that wanted was battling shrinking sales. I was contracted to help them come up with a new strategy and position them as a market leader. It was not successful, and not without trying. The reason for failure: obsession with their competition. They were so worried about what their competitors were doing they failed to take action. Worse yet, they reverted back to old behaviors which made the problem that much worse.

Your problem may not be fear of your competitors, but something is challenging you right now. It's not the economy. Even now there are successful businesses that are growing. Seek to discover what is holding you back and change it!

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Growing Internationally

Posted Tuesday, April 28, 2009

Several months ago I began a new journey that started by simply asking a question. What that question led to was a new direction that could potentially make my business grow to where I dreamed it would be.

It all started earlier this year (2009) when I was doing my usual search through LinkedIn. I came across an interesting profile for a business in the US that was working with China in the healthcare industry. The CEO, Ruth Lycke, was the first stroke survivor to be treated in China. Since then her company China Connection has been working to coordinate medical services from China with people in the US.

I was interested to learn more about her story since she was based in the Midwest. How did she come to seek treatment in China? What caused her to start her business? How easy was it to create an international company doing business in China? My thought was it couldn't hurt to ask so I contacted her directly. To my surprise, I soon got a reply via email welcoming my connection and wanting to answer any questions I had.

Within the week, Ruth and I connected via phone. I had the opportunity to learn about her journey and the opportunities that her circumstances had created for her. She had been working on China Connection since 2004 and had built a solid reputation, as well as good connections in China.

I explained my services to Ruth and asked about the potential in China. She felt there were wonderful opportunities there for my process and then surprised me by offering to assist me with building a practice in China. I was cautious (and Ruth will attest I still am) about taking my business this direction. In an instant I had gone from inquiry to potentially opening up a whole new opportunity. Curiosity got the best of me and I wanted to learn more.

We agreed to meet face to face so I could address any questions I had plus weigh out the possibilities of making a move like this while reducing as much risk as possible. Our meeting was both informative and reassuring. I left with what I believe to be a great opportunity: build a business where I can work to break down the barriers between two cultures that very much want to work together.

Doing business with Asia is going to be necessary to build trade. China has the fastest growing economy and the greatest challenge is our cultural differences. (I am purposely avoiding political discussion here and will only say that if we want someone else to change, we must educate and provide opportunity. That goes both ways.) If I can help bridge a gap, who knows what opportunities that will provide in this country as well as abroad.

So I recently opened an office in China and am in preparations to make a trip there in the coming months. Are there risks? Yes and they have been calculated. The point is this is one step to bringing a dream to reality. I welcome the challenge and look forward to reporting more in the future.

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The importance of buying local to the economy.

Posted Friday, March 27, 2009

Natasha Vora is a friend of mine who owns Indocara. Her company specializes in bringing textiles and furnishings from Southeast Asia to sell in the US. She has a small retail shop located in downtown Madison as well as an online presence at www.indocara.com.

Though Natasha and I come from very different backgrounds, we do share some similarities. We both had the opportunity to hone our skills at larger companies (in fact, we both spent time at Lands' End), and we both left to pursue businesses that we are passionate about.

Recently Natasha had the opportunity to participate in a local business radio talk show. She shared her experiences and also brought up a really good point, the importance of buying local.

Small business is the key to stimulating the economy. These companies make up the bulk of our workforce and often are the engine for economic growth. Often we forget about these businesses when we shop. The big box stores have created top of mind awareness for many of us and we often do not give it a second thought to go to the large stores when we need something.

I have also experienced the buy local dilemma. Some companies perceive that business expertise or strategy needs to come from a large company in a big city, and that is simply not the case. Yet I have lost opportunities because of the perception that the business knowledge of a company in another state must be better than what can be provided locally.

I think it is important for all of us to support our local economies as much as we can. In order for us to thrive, supporting those in our community is crucial. So before you head to that big box store, maybe check to see if it's available from a local business.

To hear the podcast for Natasha's interview, go to http://loyalearspodcasting.com/wtdy/audio/IB032409.mp3

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Invention out of necessity

Posted Wednesday, March 11, 2009

What if you could reinvent your business or your product and grow by 20% this year, would you do it? My guess is probably so.

Today I read an article on Inc. Magazine's website (twitter inc5000 if you are interested.) about a small chemical company that did just that.

In Max Chafkin's article, he shared the experience of OMI, a company in Barrington, IL that specialized in industrial strength deodorants. For years, the company made a healthy profit margin of 80% by selling its non-toxic chemicals to engineers and plant managers. Yet Phil Coffey, who would later own the company saw more potential.

Phil had a plan to reinvent the product that had been so successful for industrial use and tap into the consumer products market. He saw a $4.7 billion dollar industry that he could tap in to.

After purchasing the company, Phil took a risk and launched a costly consumer strategy. His risk paid off and now their Fresh Wave product is taking off. In fact, they expect 20% growth in 2009 despite the economy.

The message here is this: opportunity exists everywhere. Unfortunately most of us fail to see it because we are too wrapped up in our own issues to notice. In other cases, even if we do see the opportunity, we may be too afraid to risk it. Phil's company already had profit margins of 80%. My guess is many would be happy with that and be unwilling to take on a risky venture.

Our country was founded on people taking risks; sticking their necks out. In order for us to grow and thrive, we need leadership that is willing to do the same. We need to make educated decisions and find the opportunities we can take advantage of. It is necessary to our survival.

Take ownership of your situation, find ways to re-invent yourself, make wise decisions, and have a plan.

Now is not the time to complain about the economy, your industry, your employees, management, government, or anything else. If you are willing to let someone else control your destiny, you may not like the results.

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