What makes a change initiative successful? Is it the vision of grandeur around all the possibilities of what could happen if every domino falls into place? Or is it the ability to get the entire organization to permanently change the way they behave at a small, day-to-day level? Is it even possible to enact big changes within an organization?

These questions will be addressed in this article.

Let’s start with the root cause of change. Change occurs because the business has identified that the current way it has been operating can be improved.

Change becomes painful when not everyone agrees that the current way of operating can be improved or when they are unclear about why it isn’t cutting it anymore.

Executives, typically, are reticent to share details on why a change needs to occur for fear that by sharing these details, it might cause panic. Oftentimes they compound this issue by doubling down with toxic optimism - sharing things like “We have never had a layoff and never will!” or “Everything is going amazing and we are crushing it in the market!”

This compounding of toxic optimism hurts change initiatives because if “nobody is in fear of getting fired” or if “everything is going amazing and we are crushing it in the market” it lacks the honesty of the hard truth that comes with implementing a change initiative - that the overtly optimistic message shared in the past was in fact wrong and that there are opportunities for improvement.

For those of you who are fans of the TV show The Office - it is reminiscent of the episode where Michael has money problems and as opposed to confronting his girlfriend Jan about her spending, he gets a second job and tries to convince everyone else he is fine and that he doesn’t have money problems - crumpling up a dollar bill and pretending to toss it away while secretly putting it back into his pocket. 

This sounds like a silly analogy but it is the truth. Most executives would prefer to meet with their executive team/board, determine a new direction or change, and pass that message on to the middle managers with the hope that they can turn that message around and implement the change in the exact vision in which the executive team drew it up isolated. 

And if the change initiative doesn’t work, whose fault is it? You can probably surmise that it is not the executive team’s fault until the board loses patience and fires the CEO. 

In place of large change initiatives, many companies are finding “success” in driving efficiencies by making cuts. “Success” is in quotations because it doesn’t address the root cause of the issue with why change initiatives fail. The way these cuts work is a company, in an effort to reduce expenses while maintaining output, decides to let go of a certain percentage of the workforce and then ask the remaining team to accomplish the same amount of work they did with a larger staff.

This technically achieves the outcome the company identified because:

The unintended consequences are:

To successfully implement change, everyone in the company needs to be aligned on the problem to be solved. To get alignment, executives need to be vulnerable, honest, and open-minded.

Below is an example of what this looks like in a practical sense:

Memo from the CEO to the entire company:

“Hello team, I have met with our board and leadership team and we have identified a challenge as our business transitions into the future. Our competitors are currently offering a similar service for 30% less than we are currently offering our services. Obviously, we believe we have better service and overall outcomes than our competitors and our clients are locked into annual agreements, but we believe that there is a chance that our competitor might challenge our market share. We can take a wait-and-see approach to this issue, but if we do, we run the risk of losing significant business and being put in “catch-up” mode versus proactively reinforcing to our customers why they should continue working with us. We believe it would be prudent for us as a business to proactively identify additional value we can provide to our clients and/or cost savings that we can implement and pass along to the client. We are currently putting this plan in place and would like to involve everyone in the company to share their thoughts and ideas on how we might be able to add value and reduce costs. We likely won’t be able to implement every idea but by taking pieces of all of these ideas, we can create a solution that sets us up to thrive into the future. Therefore, over the span of the next 2 weeks, if you could please share with our colleague Jane Doe your ideas for how we can improve the business, she will compile them and we might follow up if we have future questions or need clarification.”

This message is powerful because it is honest, collaborative, and aligns everyone on the problem to be solved. As opposed to mysteriously letting go of 10% of the workforce and asking the rest to make up for the work or asking the team to implement a large change initiative without explaining why implementing this change initiative is important, this method creates understanding, receptivity, and collaboration.

And once there is alignment on the problem to be solved across the company, and a change initiative is implemented, showcasing the early wins is critical to building support of the cause. 

Similar to Paul Revere sharing word of good news across the American Revolutionary War, your team wants to know any and all good news supporting the cause of change - because by inviting their collaboration, they now want to see its success. 

If you are a leader and want to join this conversation or surround yourself with others discussing these issues, consider joining an executive mastermind group.