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9 Deadly Reasons Why Companies Fail to Change - George Tsakraklides

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9 Deadly Reasons Why Companies Fail to Change - George Tsakraklides

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The psychology of change in the business setting and how organisations and people respond to it in different ways. Understanding the barriers in responding to change is an important step in dealing with change effectively.

Business strategy,
change management,
innovation,
brand develeopment,
mindfulness,
risk assessment,
strategy

The psychology of change in the business setting and how organisations and people respond to it in different ways. Understanding the barriers in responding to change is an important step in dealing with change effectively.

Business strategy,
change management,
innovation,
brand develeopment,
mindfulness,
risk assessment,
strategy

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9 Deadly Reasons Why Companies Fail to Change - George Tsakraklides

  1. 1. 9 DEADLY reasons companies FAIL to CHANGE (and how to keep your cool when change knocks on your door and it seems no one at work cares)
  2. 2. Here are 9 all too familiar barriers to responding positively to change…
  3. 3. And the 9 types of people who are the culprits
  4. 4. 1   Those  who  insist  the  Earth  is  flat
  5. 5. “ it’s not happening” Trees may be changing color, but you can always focus on the few green leaves that remain and ignore the rest. Believe it or not, some people’s survival instinct works like this. They may say change in the business environment is happening so that they appear knowledgeable about consumer and business needs. But deep down some are in denial out of fear of what this change might bring - while others “play it down”. What’s the difference between “in denial” and “playing it down”? In practical terms, nothing. Both are desperately trying to hold on to the past. Inertia may seem harmless but it is a big threat to business and enterprise – leading the most innovative and ambitious employees towards frustration and disappointment – when these are the very people that could help the business evolve and adapt to a new market situation
  6. 6. 2   The  Unimagina4ves
  7. 7. “what’s changing?” Many talk of change. Few actually have a clue of what change really means to their organization or brand in practical terms because, while they may be able to see the immediate repercussions, such as loss of business due to economic climate conditions, they are unable to imagine the secondary and tertiary effects of these – and how they can have a snowball effect – but also how they can become opportunities. The most common error is focusing on how clients are changing and forgetting about how the competition is changing as well to respond to this change, adapting to the new client needs with new products while evolving their brands to reflect new client needs and requirements. The truth is, during change everything becomes fluid, and this can be a good thing if you play your cards right. But it takes a good dose of imagination to assess business risk. If you are in it you need to step outside it to see beyond it.
  8. 8. 3   The  Mee4ng  Junkies
  9. 9. “we’ve got time” No you don’t. All companies drag their feet in the end because decisions require deliberation and consensus among all stakeholders. Change is a learning experience for most people, taking them into unknown business territory and out of their comfort zone in terms of their previous expertise. The point is, you’re going to be late even if you hurry, so might as well begin preparing before the full brunt of the storm hits. “if it’s working, don’t fix it” is irrelevant when change is on the way.
  10. 10. 4   The  Indifferents
  11. 11. “do I care?” They will never say it. But that’s what they think. And it’s not because they don’t care about the business or because they are selfish. But because they have already given up and feel that dealing with change is not part of their job description. There are many people who believe that a job involves a number of tasks which you learn and become an expert. Thinking on your feet, being creative, troubleshooting and assessing risk is some really complicated business for most people who either do not want to think, don’t believe in themselves, or simply feel that it is up to God and not up to them. Its not their problem.
  12. 12. 5   The  Terrified
  13. 13. “change is bad” It should be more evident that, although change requires adaptation and thinking smart, you can come out the other end far stronger than ever before. There are always business opportunities in a changing environment. And some of them are simply about gaining a competitive advantage when everyone else is affected by the same change but not responding to it as well as you are. But panic takes over, and negative projections and doom and gloom can shut down any creative thinking that could incorporate some healthy risk into a business adaptation strategy that is bold and visionary - and not just defensive and conservative. This is why solutions to change that are a product of fear and simple reactivity are often unsuccessful. They are based on the old rules. Not the new reality – which needs to be understood and analysed in order for a business to find its new role and new brand position in the world. Brands that stay ahead of the game are also the brands that to an extent can shape the new rules – and shape them to their own advantage
  14. 14. 6   The  Selfish
  15. 15. “my position is safe” “And I don’t care whether the people above me – or below me – are”. Job security and insecurity is one of the most powerful motivators or demotivators in employee behaviour – and undoubtedly the first thought in response to a change in a business revolve around “how will this affect me”. However no one is completely safe when there is change on the way. And behaving in isolation from the rest of the team can weaken a company’s response to change – as individual employee interests become more important than the greater good or even clash with each other
  16. 16. 7   The  Opportunists
  17. 17. “ I can’t wait” Some have already sensed the opportunity a change may bring, but it’s a one-man’s opportunity – whether it is an exit strategy, a sell-off, a compensation, capitalising on someone’s demise or making something new out of the pieces of a business. It’s great they are thinking ahead into the future. But wishing that your own company goes down, along with the colleagues you have shared so much with, is not exactly the thinking of a team player.
  18. 18. 8   The  Hippies
  19. 19. “ whatever” For some, response to change is about either fight or flight. For others it’s about embracing change completely, but to the point of accepting it without doing anything to better their position amidst the turmoil. It is extreme Zen and with a precarious twist.
  20. 20. 9   The  Sheep
  21. 21. “ we’re all on the same boat” This summarises a number of attitudes, but most of all defeatism. Lack of fighting power and stamina. And no sense of personal responsibility as well as the power of the individual to do their small bit to turn a business around. Herd behaviour and pursuit of safety in numbers is not wise when the herd is about to jump off the cliff.
  22. 22. Why did I write this? Because for a good part of the last 10 years I’ve been working in start-ups and companies that couldn’t – or didn’t want to - think beyond their business model. I’m hoping this serves as a reminder that change is unavoidable - and that although easier said than done, we should do our best to face it, and embrace it – both in our professional and personal lives. Find the courage to question our reality or simply view it from a new, fresh angle.
  23. 23. CHANGE WILL FIND YOU
  24. 24.       iked  this? are   L  Sh t  Like  and Why  no George is a scientist and market researcher at MM-Eye All photographs taken close to the MM-Eye offices in Islington, London UK November-December 2013 sharp minds, safe hands www.mm-eye.com George  Tsakraklides  

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