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Accelerating Change for Maximum Results
A senior executive at a Fortune 500 corporation recently told us that his division was instituting a one year “moratorium” on organizational change. Having experienced many change initiatives ourselves — from both the inside and the outside — we found this declaration fascinating. What causes a very large, successful company to institute this type of moratorium? Clearly, the company is experiencing the pain that comes with large-scale change. And most likely, they still haven't realized the true fruits of their labor — so that the return has not yet overcome the pain and cost of the original investment.
Any change initiative begins with an investment period, where people and teams deal with a new reality — a time when things are often worse before they get better. We call this phase the change “Investment Trap.” It's a trap because it can cause leaders to abandon or sub-optimize their change efforts,
 because they get too painful, drag out too long, or make it too difficult to see the proverbial light at the end of the tunnel. And even when leaders make it out of the Trap successfully, they likely have done things during implementation that cause the end result to be less than anticipated — a “performance curve” that flattens out at far less value than originally envisioned.
Suntiva helps individual executives, teams, and organizations to minimize this Investment Trap — and to maximize the result of change in terms of the business strategy. The changes our clients take on can range from new executive job assignments, to the launch of a bold new business strategy for the entire organization. Although they may not think about it this way, the common theme is that, in each case, the individual or team wants to minimize the potential for being caught in the Investment Trap. If done right, they can accelerate the transition, and create a steep performance curve that optimizes the long-term ROI. This is a bit different than thinking about it as “change management” (a phrase we've never been wild about). Frankly, we'd rather our clients get through change, so they can manage the business.
As an example, think about an executive starting a new job, or taking over a new role within the current organization. Traditionally, the new executive goes through some orientation, maybe some kind of assimilation program, and (mostly) relies on their own knowledge and experience to figure things out and get the job done (that's why they were hired, right?). If lucky, they will have settled in and become a truly productive part of the team after several months. But the cost of failure here is great — recent studies show that the total cost of a failed executive hire can be as much as $2.7 million. And as the average tenure of senior executives continues to drop, this scenario takes on increased significance.
Now consider an alternative approach — one that creates actionable strategies for accelerating the assimilation process while at the same time increasing the likelihood of success. In his book The First 90 Days, Harvard Business School professor Dr. Michael Watkins talks about critical success factors for newly hired executives, and how to accelerate the process of assimilation and achieving results. The organizations that are most successful at outside executive hires take this very seriously — proactively managing the process, working with the new executives as they ramp up, and providing specialized resources as needed (such as an executive coach, or training in a particular skill or discipline). The goal, of course, is to align the investments with the long-term return, and thus optimize the ROI.
So how does an organization accelerate its movement through the Investment Trap, and maximize the long-term value of change? Clearly, there are many programs, philosophies, and approaches that address this issue — particularly around the traditional notions of organizational and team development. Suntiva's focus has always been on strategy alignment — in particular, the alignment of executive's personal strategies with the overall business strategy. Here are just a few tips that we've seen effectively applied by leaders to accelerate change and maximize ROI:
• Understand and address the impact of change on the executive team at a personal level. Don't assume to know how each executive feels about a new strategy; openly explore the topic with each of them. And don't assume that even your closest direct report can be completely open with you — in some cases an independent third party can be extremely effective. Even the most savvy and confident of executives needs a trusted, private outlet to voice frustrations, concerns, and out-of-the-box ideas. Although very difficult to truly do well, this process can significantly reduce the “churn” and unproductive time that is traditionally inherent within the executive team.
• Pay attention to the five S's — Strategy, Structure, Systems, Skills, and the Social Network. Change initiatives typically begin with a vision and strategy, moving quickly to the systems (processes), measures, and organizational structure necessary for success. But be sure to ask yourself whether conscious and proactive efforts have also been spent on the leadership and related skills required to execute the strategy. And, pay attention to strong social networks that are impacted in the process of change — they can make (or break) the pace of any transition.
• Gain early adopters and early wins. It is crucial to actively and publicly support the early adopters of any change initiative. Often, these are the people that will bring the early wins that are critical to the long-term success of the effort.
One important note — keep in mind that minimizing the Investment Trap does not mean simply minimizing the investment. The goal is to minimize the potential to end up in the Trap, and to move as quickly and efficiently as possible past “break even” and into positive (and optimal) ROI.
Just think — when you can rapidly and effectively lead the team through a major change initiative, you'll be ready that much sooner for the next one! You can thank us later.
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