Economic turmoil. Credit freeze. Housing crisis. It seems every financial woe has hit business at once, leaving us in a frenzy, and not knowing what to expect next. How do we deal with all this change?

1. Change Is a Given:
Now What?
A BUSINESS ISSUE
QUICK READ
Sum of All Fears Our study of 400 successful change
leaders in seven countries found change
Economic turmoil. Credit freeze. today to be far-reaching, overlapping,
Housing crisis. It seems every financial and open-ended. Real change, these Real change takes
woe has hit business at once, leaving us leaders said, takes more than a process more than a
in a frenzy, and not knowing what to or series of projects. It takes a
expect next. change-capable culture, from C-suite to
process or series
One thing is guaranteed: our businesses
shop floor, to overcome these of projects. It
challenges:
will change. Restructuring, downsizing, takes a change-
new go-to-market strategies – these are • Failure to tell. Focused on the big capable culture.
just some of the possible responses to picture, executives may fail to tell
the turbulent environment. employees what they need to know.
Said one respondent, “Messages at the
Over half of the leaders in an
vision level have no impact on
AchieveGlobal study agreed that
day-to-day activity.”
“change capability is a company’s
greatest competitive advantage.” • Failure to listen. While workers are
well-qualified to offer improvements,
Y as we weather a global economic
et,
said a U.K. leader, “senior
downturn, we should remember that,
management don’t listen to frontline
historically, up to 85 of 100 change
staff. They listen to consultants who
efforts falter or fail. Next sobering
know little or nothing of our
question: Why would that rate improve
operations” – and who may fail to
because times are bad?
leverage this in-house resource.
Here’s a brighter note. Our study found
• Hell hath no fury. A mid-manager
little support for inborn human
scorned rarely buys into a change. If
resistance to change. “People aren’t
they feel ignored, “middle managers
stupid,” said a respondent. “They see
think they can wait out the CEO and
how fast the world is moving. They feel
not change,” said one respondent. At
it in their own lives.”
the very least, this behavior deflates
So what are the challenges of executing employee morale and effort.
a coherent response to tectonic shifts in
• Blizzard of irrelevance. Every living
the macro-economy?
change breathes timely data. Still,
Developing the st TM
century workforce

2. number-crunching alone won’t give • Address the mundane reality of change. To promote
people what they need to move forward. More to do, less time to do it, and
More to the point, it distracts leaders peripheral tasks can weigh down change capability,
from the critical human aspects of progress. A manager described his executives must
change. response: “With a budget reduction we
had to be more efficient with resources. promote the
Wisdom of the 400 This was only possible by reducing reasons for change.
The seasoned leaders in our study, from a everyone’s workload.”
cross-section of industries, offered this • Demonstrate commitment. People
summary advice: watch executives to decide how serious
• Rethink the rules. Every big change the organization is about change.
requires leaders to re-align systems with Initiatives tend to succeed, in the words
goals. “We consolidated processes across of a respondent, when “executives
departments,” said one manager. Said express, model, and reinforce the need
another, “We added reps, which for change.”
improved customer satisfaction and
retention.”
Practice, Practice, Practice
Reviewing our data, we began to see the
• Beware of change fatigue. One change engine of change not in a process, but in the
after another can leave employees sum of behaviors – in precisely 10 leadership
disengaged – even hostile. To reduce this practices that build change capability:
problem, executives continue to clarify
new expectations. One leader, for 1. Expand awareness of business realities.
example, “went to a matrix organization. “Y need to let employees in on what
ou
Key directors now report directly to you’re worried or excited about,” said a
corporate.” respondent, exactly on point. “That’s the
basis for everything else that happens.”
• Keep the numbers simple. People need
to know how they’re doing – in terms 2.Spotlight strengths and successes. Instead
they understand. “We’re making of focusing on the few who resist, seasoned
processes understandable,” said a leaders showcase the people who support a
manager. Another respondent said her change. “If you let it,” said one, “success will
global company selected simple metrics speak for itself.”
“from different cultures, to bring us
together.” 3.Embrace experimentation. Anyone can
learn a complex new activity – if he or she
• Communicate often. With their evolving can learn from mistakes. Leaders build
questions, employees need a stream of confidence as they help employees draw
information about any major change. lessons from small-scale tests.
Many, many respondents advised
“communication at all levels,” “constant 4. Encourage meaningful involvement.
communication with employees,” Y measure overall change capability in
ou
“consistent communication of the goal,” the quality of individual contributions.
and so on. Leaders must decide who to involve, when,
and how to leverage their unique talents
• Encourage people to speak up. A chance and aspirations.
to talk about change not only surfaces
concerns, it “brings greater creative force 5.Provide information others need.
and energy,” said one leader. In contrast, Information, and explanation, mitigate the
“employees whose ideas were shot down shock of change. “The VP related the
by previous management only wanted to change to everything,” said a manager. “We
stay with the tried and true.” needed to know it was the right direction.”

3. 6. Encourage candid feedback. In direct need to live the change, so employees About AchieveGlobal
dialogue, leaders find out what employees realize how important it is for the change In the 21st century, the level of
think and feel. But sincerity is vital: “People to pay off.” human skills will determine organi-
zation success. AchieveGlobal
can tell if you’re really interested or just want
Taken together, our findings confirm a provides exceptional develop-
their buy-in.”
major shift in how organizations today are ment in interpersonal business
7. Make progress clear to all. Effective managing change: skills, giving companies the
workforce they need for busi-
change leaders develop the simple metrics
• No longer do leaders expect long periods ness results. Located in over 40
needed for course correction, and provide countries, we offer multi-lan-
of stability; constant change is the new
opportunities for people to say what’s guage, learning-based solu-
landscape.
working and what’s not. tions—globally, regionally,
• No longer is change linear or confined; and locally.
8.Coordinate resources. As needs evolve leaders now wrestle with overlapping
during a change, re-negotiating and changes, stoking energy despite We understand the competition
redirecting scarce resources is critical to competing demands. you face. Your success depends
progress and morale. People know when a on people who have the skills to
• No longer can leaders follow a standard
leader fails to support them. handle the challenges beyond
process for every change; they must tailor
the reach of technology. We’re
9. Revisit systems, practices, and policies. each initiative to prevailing conditions. experts in developing these
People seek security by reverting to • No longer can leaders earn widespread skills, and it’s these skills that
established processes – a serious issue if the buy-in with the bare-bones business case; turn your strategies into busi-
past undercuts the future. Change leaders now they must create a deep sense of ness success in the 21st century.
adjust or remove any process that slows ownership in change.
progress. These are things technology
• No longer can organizations rely solely on can’t do. Think. Learn. Solve
10. Respond to resistance. Over time, existing strengths; now they cultivate problems. Listen. Motivate.
showcasing success helps to reduce change capability in every employee. Explain. People with these skills
resistance. Still, change leaders attend to While our study outlines a practice-based have a bright future in the 21st
century. AchieveGlobal prepares
early signs and address resistance with rather than a phased-based approach to
you for that world.
firmness and compassion. change, its findings in fact support any
established process. The study highlights
Landscape of Change key leadership practices that encourage
Executives, of course, establish the direction individual involvement and multiply the
and climate for change – both with a impact of any phase approach.
decisive impact on outcomes. To frame the
change and promote organizational change
capability, our study found executives must
communicate the reasons for change, as well
as the risks and likely rewards.
Like managers, executives need to follow
the 10 practices to promote change
capability and coach their direct reports
through more or less constant change. Said
an HR leader, “Executives have to do more
than make plans and track progress. They

4. About the Authors
Chris Blauth is active in the research,
development, testing, and marketing of
AchieveGlobal’s leadership and sales
training product systems. He was
responsible for launching Genuine
Leadership®, AchieveGlobal’s flagship
leadership training system, as well as
Web-based reinforcements for
Professional Selling Skills®. Chris holds
a BS from the State University of New
York at Buffalo, and an MBA from
Canisius College.
He is a member of The Society for
Human Resource Management (SHRM)
and the American Management
Association (AMA).
As AchieveGlobal’s Director of Solution
Development, Craig Perrin is a
thought-leader who works
cross-functionally and with clients to
guide creation of a range of responses to
market needs.
Since 1986 he has played a central role in
developing the company’s flagship
programs in leadership, sales, and
customer service; co-authored two
best-selling books; written many articles
and position papers; and produced
elearning and video that have earned
scores of national and international
awards. In 1998, Craig was named Times
Mirror Editor of the Year. Craig’s
positions before AchieveGlobal include
curriculum designer, stand-up facilitator,
college instructor, and art curator.
Craig holds a B.A. and M.A. from San
Francisco State University.
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© 2010 AchieveGlobal, Inc. No. M01243 v. 3.0 (01/2010)