Jack Welch said “if the rate of change on the outside exceeds the rate of change on the inside, the end is near.” I suggest that Jack would use the word “innovation” today – “change” is used by some to excuse poor strategic planning and non-existent communications planning as though it is a force beyond control.
Strategic Planning and Communication are required on a macro and micro level. Regardless of the scope of your responsibility, you can benefit by having a plan. In large Companies, it may seem strange to develop your own plan when it may be apparent that more senior leadership is not doing the same. I suggest, that being more effective is never a bad thing. Flexibility, nimbleness and resilience are valued attributes that allow individuals and organizations to thrive. If you keep your employees from feeling like they are in a constant state of flux, you should see a positive impact on performance.
I have worked for more than one organization where change was so frequent (and seemingly unplanned) that employees said “The only thing we know for sure is that change is a constant.” This is a very dangerous mindset because it allows what should be an occasional necessary evil (unanticipated events) to become the norm. While I could turn this article into a lengthy organizational design treatise, the premise is very simple . . . With the exception of truly extraordinary events, strategic planning should address change (potential and actual) and employees should understand the rationale behind decisions that will disrupt their lives.
Let me address a few myths:
Myth #1 “Employees Like Change”: Who are they talking about? Must be the same folks who enjoy it when their 16-year-old son comes home with a tattoo, their 17-year-old daughter says she pregnant, and those folks that enjoy getting laid off every year when business slows down. Absolutely, adaptability to change is a valuable skill set, but at work, change is often threatening and scary. There is a big difference between change to avoid monotony and change which can negatively impact financial livelihood.
Myth #2 “Change is Good”: Adaptation and innovation are good, but change for change’s sake is pure folly. Make a list of the most successful organizations, and tell me whether they change just to change, or if they plan, innovate and adjust when necessary? Humans like consistency, whether it is Grampa Hershel’s breakfast at Cracker Barrel, the consistent jokes at Pirates of the Caribbean at Disney or even in the holiday sermons you hear from your preacher. Apple and Tesla do not pride themselves on “change” – their focus is on innovation to solve problems – and they plan for it.
Myth #3: “Things are Unpredictable”: There are very few things that are completely unpredictable in business – most “events” can be planned for through contingency planning and/or direct strategic planning. For all that big data and analytics are the rage, I implore more business leaders to own the fact that with data, we should be able to plan for all but the most unexpected catastrophic events.
- Does a downturn in sales really qualify as such a surprise that it could not be planned?
- Are storms so unpredictable that when one shuts down operations for 3 days or even a week?
- If business slows down every year in January, how come we are always announcing layoffs in January in an emergency meeting?
I suppose smaller Companies can claim a bit more legitimate unpredictability if a large customer cancels an order, but those situations can be made transparent to your employees. Here are some simple suggestions to leaders at all levels:
- Use big data for all it’s worth. Demand that the analytics be used to determine more than just that your accounting department was 4.2% more efficient this year. Use the analytics to accurate predict staffing models for the Company based upon trend and expected changes in that trend.
- Plan Communications: In addition to your strategic plan, add a method by which you communicate that strategic plan to your employees so they can feel a sense of security. You can build in contingencies, but your employees should know, for example, “as long as sales do not decline by more than 5%, we do not anticipate any reduction in hours – for every 1% increase in sales, we will probably have to hire 3-4 additional employees.”
- Connect the Dots: Communicate by connecting the dots between all “changes” and your strategic plan for the business. Even though negatively impacted employees will never completely understand, you will want every other associate to be able to explain why a department was outsourced and to feel that it did not come as a surprise. Think – what would you rather have said after a layoff . . .
- * “What a shock. Joe got laid off after 20 years with the Company. Goes to show you that we are all expendable – the Company does not care about people anymore.”
- “We saw that coming. Two years ago, the CEO announced that our long-term strategic plan was to focus on production and get out anything that others do better. I feel bad for Joe, but he had to see it coming since he was the last delivery driver and the Company kept increasing its shipments to the outside delivery service. I know they offered him a different job 6 months ago, but he turned it down.”
- Own the consequence of your decision-making! If you are forced to layoff employees, cut hours, etc., please take responsibility for the fact that your leadership may have been responsible for the impact on employees. I am not saying that you should lose sleep for months, but you should own the fact that you were in charge when it happened. The decision may be right at the time, but if you had done a better job of motivating and planning, it might have been avoided.