CHAPTER 1
KNOW WHAT CHANGE IS
You are here ... to enable the world to live more amply, with greater vision, with a finer spirit of hope and achievement. You are here to enrich the world. —Woodrow Wilson
When making change, you must consider the right place, the right time, and the right people. Understanding the scale of the change you are about to undertake will relieve some of the pressure and frustration later on and ensure that, if it is engineered correctly, you will achieve change successfully. Managing change and the various risks along the way is essential.
The two key parts of making change are to start and to finish. Only when you have finished one change challenge idea should you move to the next one. Following this simple process will give you limitless possibilities in making changes easily in your business.
If you follow a step-by-step your plan, you will achieve your change idea and finish what you start, taking small steps each time. Our daily lives are full of activities, whether at work or at home, so be alert to becoming too preoccupied with personal and professional issues. You may choose to seek out motivating articles and business magazines that will provide possible solutions, but they take us only part of the way, and sometimes we are left guessing as to what is next.
Most of the change that is experienced in any size of business is external to the business. Most businesses react to change instead of driving it. The economy, consumers, technology, and legislation have profound impacts on why businesses have to make changes. Over the past decade the mining industry has developed technologies to meet the demand to dig out minerals at a faster and more economical rate, increasing the sophistication of not only the computers but the trucks and rigging. Laws and regulations that govern the safety and health of workers in this type of environment multiply as do the laws and regulations governing the financial services industry to protect consumers and their investments.
A smart business leader is always looking at how to sustain, grow, and keep the business moving forward. Interruptions to business momentum, such as mismanagement or failure to meet the market on products and services, are the biggest impediments to these goals.
Clearly, fundamental rules of application govern any visionary change you may have. Working as part of a team in large projects, I noticed that there were just two rules: The first is that you should always go for quality services and products, not cheaper ones. The second is that, to keep the wheels turning, the vision for your business must be supported by a long-term strategy and a talented management team that can sustain change, drive innovation, accept risk, and meet business margins.
Businesses that grow are also subject to the consequences of environmental changes, so someone must recognise that something different is needed or a gap needs to be filled to improve the dynamics of the business. Alternatively, the product that rests in a niche market is important. In either case, the need for the business to grow may be one that the current business approach cannot accommodate or achieve.
The Macquarie Dictionary defines the verb "to change" as "to make a difference, alter in condition, appearance."
Who is affected by change?
People are affected by change in a variety of ways. They want to see that the difference will be, in fact, a difference, that when they have altered something, it will stay altered and make a difference. The effects are dependent on the individual's level of development and experiences in business and on his or her preparedness to make changes.
In The 100 Absolutely Unbreakable Laws of Business Success, Brian Tracy, says, "Change is inevitable. Change is not only inevitable it is also unavoidable."
The most important of the changes to be made is the "who," the stakeholders in this change process, the employees who are affected by or who affect the company's actions. Internal and external to your business, stakeholders have an interest in something your company is doing or planning to do. For example, businesses' stakeholders can include staff, customers, and third-party service providers, legislators, regulators, community leaders, investors, customers, consumers, suppliers, and employees, to name a few.
All stakeholders are important, but your and their priorities and focus may change over time based on the issue and factors like influence, knowledge, credibility, and legitimacy in relation to the changes to be made.
Stakeholder engagement occurs when your company initiates open, two-way discussions in order to understand and find solutions to issues of mutual concern. This engagement happens when your company wants to consider the views and involvement of an individual or a group of employees when making and implementing a business decision. This is not the same thing as "delivering a message" or convincing a group to agree with you. The simple action of involving your stakeholders in the change in order to include their needs and expectations will establish, improve, and sustain the value of what they can expect from you and your business services. Conducting surveys of your customers as to what they like and don't like about your product and services often is the starting point. The feedback can lead to some significant changes as to what new product or service you deliver going forward.
As consumers we can all relate to Ernst & Young's Global Consumer Banking Survey 2012. The survey was undertaken to determine how to increase loyalty and satisfaction among the company's customers. While overall satisfaction remained high, trust levels remained low globally, and customers were demanding more customised attention, products, and services from their banks.
Stakeholders may also be any group in your business that is charged with planning, managing, monitoring, and executing a project. Whether the change you are proposing is planning for the long term, improved marketing, a change in your sales approach, or developing a position in the marketplace, it is important to involve your stakeholders before and during the process to achieve better overall outcomes.
How do we change?
Humans being what they are, we are subject to habits. When we acknowledge what we are sensing, what we feel, and then act accordingly, it is because of what we have learned.
If you sense that something is not right in your business, you're probably right, even when what is precisely wrong is not always clear. All you sense is that you need to bring about change in your business. Headlines in the newspapers and interviews in the media outline new and improved products and services every day. If we hear about changes in the industry we work in, the focus of our attention and emotions shifts.
I challenge you to consider what needs to change in your business and whether what you are proposing to change will make a real difference. Consider doing things differently when making change in your business will have a positive outcome.
I learned an important concept from one of my first bosses, who was the general manager of operations. He told me, "Never delegate a task to anyone unless you know how to do it yourself." This advice has held me in good stead in every job I have had since, as well as in every business I have worked with. If you follow this rule, you will fully understand the true value of any change you propose and the tasks, the time, the effort, and the benefits of working with employees who know that you fully understand and support them. Therefore, one of the first important steps is to work on yourself first.
When should we change?
Change can be planned, or it can be a knee-jerk reaction, depending on the circumstances. When a well-thought-out plan is executed effectively, you will have an outcome that is close to your visions of change. This is the quality that I referred to earlier—one of two rules to remember through the change process. In the case of reactionary change, you are responding to an emergency with a quick response rather than a thorough application. The thought processes for both planned and unplanned change are complex. When a business has to make changes, whether they are financial, product, or service changes, there is an element of fear and uncertainty.
If a change is based on fear, it is likely to be unplanned and less likely to flow efficiently or effectively. You've heard the adage, "If you fail to plan, you plan to fail." Prepared change that is supported by well-designed plans, demonstrates strength, credibility, and foresight. As a business owner, executive, senior manager, or team leader on whom the task of making the change rests, you have to consider the employees who make up the business, but you must also need to make changes within yourself for yourself first. This consideration and approach can fulfil your expectation that others will change around you because they will want to change with you.
Why should we change?
The purpose of change can be survival, such that one's very existence relies on embracing change. During environmental changes like economic downturns, many businesspeople have had to make some difficult business decisions, including downsizing of personnel or divisions and reviewing products, services, and locations (branches). Such changes may relate to decisions made years earlier, and what you now see is a product of those past choices. In making changes now, we need to decide what is most likely to work this time based on what we have learned from our experiences. As Pearl S. Buck wrote, "Every great mistake has a halfway moment, a split second when it can be recalled and perhaps remedied." It may be necessary to make more changes now, and the fact that you noticed that change was necessary or inevitable shows you are well on your way to achieving your change goals.
Life isn't perfect, and we have all made errors of judgment in our business decisions. It takes a strong person to recognise that something didn't work and to be prepared to admit and fix the error. Even minor changes for your business can improve one component of your business immediately. The results may be subtle or they may be obvious to all who participate, as may be the recognition that the changes were necessary. The line is often blurred by our ownership of an idea. This blurred vision can create conflicts that widen the gap between the current state and the desired state. Holding fast to "this is my idea, and it's my way or the highway" creates conflicts that are usually difficult to overcome.
For example, while I was working at the head office of a mining company whose office lease was ending, I saw the shift in focus from the mine-site issues to where the head office team would operate. This change came at a time of a downturn in the industry and an increase in lease fees. We needed an office to work from but wondered whether we needed the office to overlook the harbor. Mining has always been about image and strategic location and positioning, but spending a lot of money on a new lease would take away from the mine sites' operational funds. Clearly, then, when we make decisions to bring about change, there are many things to consider. In our case, we decided to spend the money only if the placement of our office was critical to the overall delivery of our products and services. Remember that the way you have done things has culminated in what is before you now. Doing things differently will produce different outcomes.
Other examples of change that you may have seen on television in recent years include examples from Undercover Boss. Some of the examples I reviewed included the CEO of the 7-Eleven Store chain of stores, who saw waste, failure to promote enthusiastic employees, and so on; the CEO of Domino's Pizza, who identified how to fix it when the delivery to the customer is late, keeping the customers happy; and the CEO of US-based Turf Club, who recognised employees who went beyond the call of duty. Many of the businesses in the series were family-based companies whose CEOs had inherited the business and discovered that they had become too tied up being the CEO of a large corporation. Their journey undercover sent them back to the basics to see where there were opportunities for growth and improvement in their own businesses.
What should change?
The answer to what should change is up to you and your trusted advisors. The change may be a change to only a simple component of your business, or a series of ideas and concepts may need to be introduced in pursuit of a far greater result. Alternatively, you may need to change products and services, or they may simply need refreshing.
Planning and setting goals within the planning process will help to ensure the best outcome. As a business leader or a leader of change, you must keep track of trends and review how they fit with your ideas and your business strategy for change. If you don't know what has changed in the marketplace, do some research in order to understand what is likely to be happening "out there" and what could make you stumble if you don't act now. Through well-developed plans and the accumulation of necessary resources, you can keep the progress of the project under control. New situations and the requisite focus will allow you to make progress toward your redefined change programme. It is important to remember that, for the best outcome, change should be disciplined and logical, rather than emotional and volatile.
Where should change take place?
Change can start with you as a business owner. In a small business there may be one to twenty employees involved. In a medium-sized or larger business, change may have to be made one department or team at a time. Although it is rarely just one thing that needs changing, this approach will allow for the resurgence of energy and creativity that keep individuals and teams motivated and on track with the change programme. Applying the guidelines to each of the things you want changed will allow you to make better plans and improve your progress at the same time as you calculate the risks of making changes. The ripple effect of the change programme can be positive and effective for those who are watching the process. This process can inspire those that are involved, and when a team makes the first change and exceeds expectations, it motivates those around them to follow suit.
Therefore, when people follow a successful leader, it enhances the participants' outlook and encourages those who are less likely to make changes easily. Organisational change requires the same amount of energy and a consistent and direct effort as that required to make changes within ourselves. It takes time to adjust to a new way of doing something and to be effective in the new way. This period of adjustment is developed and explained later in the book.
Small businesses are usually the equivalent of one department, but in larger organisations it often takes only one division to change (positively) before others will catch on to the idea and want to follow suit. Usually, in a smaller business, the only person who needs to change is you, and that requires some "tough love" and a lot of commitment. As for managers of larger businesses, change requires an equal commitment from those who came up with the change ideas and those who participate in the change programme.
Repeat after me (and this is the only time you are allowed to swear during your change process): "I do solemnly swear that I am committed to making these changes.
Here is your chance to make a difference in your life and your business. Start making those changes today. You have made the first big move, so make this as interesting as you possibly can and have fun doing it.
Guidelines for defining change
The series of questions outlined in Table 1 will stimulate you into action by ensuring that you will be clear about change. There are also sample comments to prompt change ideas. For example, the first question is "What do you want to change?" Perhaps your answer is: "I want to rearrange the layout of my home office." If so, firstly look around you and if you are sitting at your home office desk or are at work, look at the position of your desk. What do you want to change? Is it all the stuff that's on the desk? Should there be more drawers or storage to hold your files, folders, and pens? What type of organiser do you need for your pens? Will you need a bigger and better filing system for current items, with consideration for growth in the next few years?
