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Mauro Libi Crestani: Change initiatives are not just whole scale business transformations


By Mauro Libi Crestani. Business hire management teams to figure out new ways to solve customer problems, improve products, create new revenue streams, and reduce costs. This involves creating new ideas for change. Technology, innovation, products and the way of doing business means coming up with new ideas for staying competitive in today’s quick moving market. Every change starts with an idea—a vision of what could happen to create a tangible benefit for an organization. But ideas are not enough.

Change initiatives are not just whole scale business transformations. These make-or-break moments can also be leadership changes, restructurings, culture changes, system implementations, operational excellence programs, workforce programs or new market expansions. This involves time and money. Given all the investment in change and its importance to a company’s future health it is important to take note that….. A seminal study by Harvard Business School professor emeritus John P. Kotter revealed that 70 percent of transformational change initiatives fail (Harvard Business Review, 1995). Later studies have produced similar results. A 2014 Deloitte study of more than 5,000 innovations over the past 15 years calculated an aggregate success rate of only 4.5 percent. Mauro Libi Crestani.

Given the rapid pace of change in companies today, demand for people who can lead successful change initiatives far outstrips the supply. In fact, 91 percent of HR directors say that by 2018, people will be hired on their ability to lead change. So why do so many change initiatives fail? There is no shortage of great ideas that should have a winning result. The quality of the new technology and innovative ideas are also usually carefully tested before being launched. Where the failure usually lies is in its acceptance. Mauro Libi Crestani.

In a research paper written by Paul Lawrence in the Harvard Business review he discusses the employee resistance to change. Such resistance may take a number of forms—persistent reduction in output, increase in the number of “quits” and requests for transfer, chronic quarrels, sullen hostility, wildcat or slowdown strikes, and, of course, the expression of a lot of pseudo logical reasons why the change will not work. Corporate executives usually explain it off by saying that ‘people just resist change’ and feel that there is not much they can do about it, so they issue a directive to its employees about the new change initiative. Employees will usually view this as forcing change upon them and then there is little change of success. Mauro Libi.

Does it follow, therefore, that business management is forever saddled with the onerous job of “forcing” change down the throats of resistant people? A study was performed to find a solution. A study was conducted by Lester Coch and John R.P. French, Jr. in a clothing factory. Mauro Libi

The work change was introduced to the first group by what the researchers called a “no-participation” method. This small group of operators was called into a room where some staff people told the members that there was a need for a minor methods change in their work procedures. The staff people then explained the change to the operators in detail, and gave them the reasons for the change. The operators were then sent back to the job with instructions to work in accordance with the new method. Mauro Libi

The other groups of operators were both introduced to the work change on a “total participation” basis. All the operators in these groups met with the staff people concerned. The staff people dramatically demonstrated the need for cost reduction. A general agreement was reached that some savings could be effected. The groups then discussed how existing work methods could be improved and unnecessary operations eliminated. When the new work methods were agreed on, all the operators were trained in the new methods, and all were observed by the time-study people for purposes of establishing a new piece rate on the job.

The first group results are quoted by the researchers as … “Resistance developed almost immediately after the change occurred. Marked expressions of aggression against management occurred, such as conflict with the methods engineer, hostility toward the supervisor, deliberate restriction of production, and lack of cooperation with the supervisor. There were 17% quits in the first 40 days. Grievances were filed about piece rates; but when the rate was checked, it was found to be a little ‘loose.’ Mauro Libi.

In the participation group there were no quits, no hostility towards management and the output of production increased after an initial slight drop that was due the change learning period acceptance of change is an important ingredient and if handled properly a company can increase its chance of success.

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