Look at the concept of culture change through they eyes of front line employee. Experience gain in some 42 years around the globe and more than 50 change programs
Bizmasters360.com: A Different Perspective on Culture Change - Part II
1. A Different Perspective on Culture Change - Part II
By Dr. Ted Marra
1 October
For those readersof Part I and possiblysome newreaders aswell,Ihope thatthisarticle continues
to add value andprovide adifferentperspective –one throughthe eyesof a frontlineemployee.
I believeitisworthnotingsome of the activitieswhichI have foundsenior executives need to
engage inbeyondthose alreadystatedinPartI whichcan contribute tomakingthischange process
successful.
In Steps#1 and#2 especially,seniorexecutivesshouldactlike ‘missionaries’goingoutintothe far
cornersof theirorganisationconvertingunbelievers. Whetherthisisthroughatravelling roadshow
approach where eachexecutive mustgive apreparedpresentationonwhatishappening,why itis
happening(e.g.,need)andhowthe people andthe organisationbenefitaswell as anopenand
honest2-waydialogue withemployeesorthere are ‘townhall’meetingswherelarge groupsof
employeescome togetherheldatvarious locationsandtimes. If the organisationoperateson2-3
shifts, executivesneed to be out there at whatever time of day or nightis necessary to engage
people andlet them know that managementis seriousand committed100%. Use of the intranet
and settingup messages(wordsor pictures) foruse asscreensaversall help – some may be fromthe
CEO and others.
If the approachsuggestedinPartI regardingestablishing DomainDecisionCouncils,one Council
beingrelatedto‘Organisational change–adaptation,learning,creativityandinnovation,atleast
one of the Council membersshouldbe the Sponsorand or facilitator/coach for the Strategic
BusinessImprovement(or Change) Team which supports the Council. There may be more than
one SBIT or SBCT.
In Part I we discussedthe firstthree StepsIhave observedinchange programs. Iwill continue with
the remainingstepsandalsoofferanexample fromapastclient.
So,in Part I we discussedthe followingSteps:
Hear the words
See thingshappen
Understandmyrole
The unfortunate fact,inmy experience,hasbeenthat managementhasspent too littletime on
helpingtheir peopleto understandtheir roles – oftenleavingthemsomewhatinastate of
uncertainty,leadingthemtothinkof thisonce againas ‘the program of the month’andevenif it
goesahead,notreallybeingcommittedtoit.
In anychange programit iscritical that the old‘feet, head, heart’ model be employed – begunmany
yearsago at Xerox and Corningamongothers.Inthe past, as we know – and still fartoo oftentoday,
the ‘3C’s’ ofmanagement still prevail–command,control and coordinate. We,managementinour
infinite wisdom,willtellyouwhattodo, whentodo, how to do itand whoto do it withandwe will
watch overyoulike policemenorpolicewomentocatchyou doingsomethingwrong. Obviouslythat
2. approach stoppedworkingahundredyearsagobutis keptalive bythose seniorexecutivesamong
Collins‘Level IandLevel II’executivesfromhisbook‘Goodto Great’or Senge’s‘unconscious
incompetent’managementinhisbook‘The LearningOrganisation’.Focusonjustobedience,
diligence andexpertise wasnotenough.
Some yearsago, a fewmore enlightenedsenior executivesrealisedthattheirpeople mightaddmore
value,increase theircreative contributionstothe successof the organisationandhave stronger
commitmentandmotivationif theydidmore than‘justbarkorders’whichcausedemployeesfeetto
move or make themjump,more outof fearthan respect.
So,theybeganthe transformationto‘gettingintothe head’ of theirpeople –to explainwhythey
are doingit– itsimportance tothe organisationand what’sinit forthemthe employee (WIIFM).
Theywere right.
Thenthe ‘eureka’came. Some of these more enlightenedseniorexecutivesthoughtthatmore
energy and passion – greatermotivationandcreativitycouldcome by‘engagement’ –creatinga
stronger‘emotional attachment’of theirpeople tothe organisationandwhatitstandsfor. It isonly
by gettingto‘heart’of the matter – and theirpeople thatthiscan be achieved.
While digressingslightlywiththe above discussion,ithelpstohighlightwhychange inmany
organisationsonlyoccurswhen there iscrisisasopposedtooccurringon a continuousbasisandwhy,
evenina crisissituation,successful executionisinthe 20-40% maximumrange – usuallyatthe lower
end.
So,what thenare the nextStepsfromthe frontline perspective?Let’shave a look:
Step #4: Management builds the trust and capability of frontline employees
Quite frankly,anotherreasonsuchahighpercentage of change programsfail isthat oftenthisStepis
either left out or minimised – that is, management does the nominal necessary in preparing their
people often because of cost considerations or they take employees for granted or are just simply
cluelessof the need –I mean,whatare we paying our employees for anyway? If they can’t do their
job,thenget rid of them! They are just ‘tools’ to get a job done. So they set their employees up for
‘failure’ – it is never a failure of leadership – just the people in the organisation. Wouldn’t life be
wonderful – simple, easy if it wasn’t for our people screwing up all the time they say!
This is probably the single most critical Step in the process from a people perspective. It is the one
which, through senior management’s actions, clearly communicates whether this change program
is real or not and whether they, the employee are viewed as an asset or a tool by the degree to
which leadership invests in them.
It is an absolute fact that trust is built on clear, 2-way, regular (frequent) open and honest
communication at all levels – transparency – the sharing of all relevant information between
management and employees. While that is not the only factor that contributes to building and
maintaining trust, it is probably near the top of the list. You can add others as I could, but won’t
digress further at the moment.
Here are some of things frontline employees are looking for – hoping for in this Step:
3. Show me I am valued – not just a tool
o Investinme – traininganddevelopment,coaching,supportandmore as appropriate
Provide me with the knowledge, skills and development I need to be
successful and to contribute to my full potential in helping this change
program be successful
Engage me and ensure I am involved/participating throughout
o Showme that we are ‘all one team’ workingtowarda commonpurpose to make this
organisation more successful and a better place to work
Communicate with me (see above)
o Make sure the messages are clear and mutually reinforcing
Include celebrations of successes and recognition
Win my heart and mind
Set my performance expectations
o Ensure all Human Resource systems (recognition, performance evaluation, job
descriptions, andreward system) are all alignedto reinforce the behaviors that lead
to mutual success. Showing appreciation too goes a long way
Make me confident that this is not just another in a long line of initiatives which will pass
quickly – a part of the ‘program of the month’ series
Once again, what I have seen is that many organisations, as I have said, either skip this step or do a
sub-optimal job with it. Instead, they ‘rush to accountability’. A big mistake and one that can
torpedo a change effort as can the setting of unrealistic targets – especially in terms of time limits
evenmore than the tasks themselves. Change takestime –needsto be well thought out or planned
and then even better executed. You can’t rush change or something, I guarantee, will go wrong.
What management must do relative to support is empower employees to do what is in the best
interest of the organisation – empowerment will only work in an organisation where there is trust
and where the old ‘command, control and coordinate’ way of doing business is dead and buried.
Employeesmustfeel confidentintheirown capability and in taking initiative without fear. It is only
when the above things are done and then experienced and acknowledged by the people of the
organisationthattheywillinglytake ‘ownership’ for what needs to be done and happily get it done.
Duringthistime and the earlier Steps, leadership needs to be practicing ‘MBWA+’ – you remember
how revolutionary ‘management by walking around’ was when Tom Peters and Robert Waterman,
right introduced it? I mean at that point in time, 1982, about the only way an employee knew their
seniormanagementwasbyseeingpictureshangingonthe wallsinthe organisation’s reception area
or the newspaper or internal magazines. If a senior executive came into an office and stood by an
employee,the employee wouldhave noearthlyknowledge of whothe person was even if it was the
CEO!
You notice the ‘+’ I added above to MBWA. That simply means that leadership today must ‘walk
aroundwitha purpose inmind,namely toengage employees – to inspire, to listen and learn and act
on what they hear, find out the barriers getting in employees ways of contributing to their full
potential and eliminating them while at the same time strengthening the relationship between
management and the employees. This is what starts to get to ‘the heart of the matter’.
4. Yet it is surprising how challenging this ‘MBWA+’ is for senior executives! I worked with the top
partner of American Express in the Balkans for over a year conducting regular weekly strategic
learning sessions of 2-3 hours for the CEO and Management Committee. One of their homework
assignments was to form pairs, go out into a part of the organisation they knew little or nothing
aboutand sit andtalk to a randomgroup of employeesabouthow it felt to work there, the vision of
the organisation – didthe employees understand it, was it inspiring, did they know how they could
contribute to achieving it and also any other suggestions for organisational performance
improvement.Theywere scared to death! I told them prior to this that of all the leadership teams I
had worked with around the globe, I would put them in the top 25%, yet their confidence, their
experience levelingoingoutandengagingtheiremployees was incredibly low when it should have
been second nature to them and something enjoyable – not frightening!
It is not unreasonable – in fact, it is desirable, if senior executives deliver some of the
training/learning and development programs needed for team leaders, supervisors, first line
managers or middle managers. Middle management is often called the ‘great frozen layer’ and
unlessseniormanagementstartsaskingthemdifferentandbetterquestionsand working with them
– engagingthem,theywillactas an inhibitortothe processaswell asbeingunsure asto their role or
competencies needed in pulling it off. These individuals are critical to success.
Throughoutthe ‘change’process,Isuggesttaking‘pulsingsurveys’. Thismightmeaneverymonthor
quarter randomly selecting 25% of the workforce from all functions and levels – a true random
sample and asking a short series of 5-7 questions. These questions might include such things as (1)
Do youfeel youhave a growingunderstandingof the importance of thischange tothe organisation?;
(2) Do you feel that the change process is working, that things that need to change really are
changing?;(3) Do you feel youhave hadthe opportunitytohave yourvoice heardandto be involved
inthe process?;(4) Do youbelieve thatonce thischange process is completed, the organisation will
be a better place to work (or more successful)?; (5) How do you feel about working in this
organisationnowcomparedtobefore thischange processbegan?Now,these are notintendedto be
just‘yes/no’questionseventhough what I have shared indicates that. These need to be rephrased
and other open-ended questions could be asked including what else could be done or should be
done or what employees see as opportunities for improvement or ideas for innovation.
Step #5: Frontline employees are assigned and accept accountability – ownership occurs
Now,afterbuildingcapabilityandstrengtheningtrustthroughinvesting in people, they are ready to
accept accountability willingly – ready and willing to reciprocate and take initiative.
It is here where the following types of actions should be observed by frontline employees:
Definingthe specificsof whatImustdo differently and/or better starting now to ensure the
program is a success
o It is critical that job descriptions, performance evaluations, recognition and reward
criteria be aligned. I have seen so many organisations where there is mass
confusion. The jobdescriptionsaysone thing,butthe performance evaluation is on
key job elements which are not the same. These criteria are not the same as those
used for recognition or reward.
5. o I have been in so many organisations where I have asked employees, ‘If your boss
came up to you, patted you on the back and thanked you for doing a great job,
wouldyouwhatyou haddone?Couldyou repeat it so you could get another ‘pat on
the back’ as an acknowledgement? The answer has too often been ‘no’.
o Knowing what I am being measured on as an employee is critical to their success –
no secrets, no sin of omission – just transparency
The measurement system – indeed the measures or KPI’s need to be
credible inthe eyesof the employees –somethingthatif theycan’tcontrol it
directly at least they have significant influence on. You can’t have them
responsible for EBIT or market share!
o There needs to be a clear linkage between the performance measurement system
and the HR systems – performance evaluation,recognitionandrewardasa minimum
Emphasismustalsobe on a balance betweenachievingthe results or outcomes desired and
‘how’those resultsoroutcomeswere achieved. Leavingatrail of dead bodies behind in the
zeal to attain targets is unacceptable! The collateral damage is too great. However, doing it
throughexhibiting behaviours consistent with the values/beliefs of the organisation is the
key here. Role models get the maximum rewards – these are individuals who not only
achieve theirobjectivesbutdoso bylivingthe values of the organisation such as teamwork,
respect for the individual or others which may be in place.
The performance evaluation session should be used for development purposes
o Management at every level should be acting as teachers and coaches helping
employees to be more successful – giving the support needed – listening for any
‘cries for help’ – reading between the lines
o Succession planning is also important such as Rothwell’s strategic succession
approach. How well employees respond to change, how well they act as ‘change
agents’themselvesandshow personal leadership must be taken into consideration
in identifying high potential people and ensuring their succession into the right
positions in the organisation.
It must be that accountability extends upward to include senior management and the Domain
Decision Council discussed earlier as one of these Councils maybe the ‘Renewal’ Council where I
define renewal inmybook,‘The WisdomChronicles:Competing to Win’ (http://www.amazon.com)
as the seamlessintegrationof learning,adaptation,creativity and innovation – it is the ‘gene’ in the
organisation’sDNA whichenablesittoeffectivelyandefficientlychange continuouslythroughtime –
keepingitsbusinessmodel freshandenduring resulting in continued superior results which set the
standardfor othersto follow. Itisalsoone of the three elements which I believe contributes to the
anti-fragilityof an organisation as discussed by Taleb and also by my friend and colleague, Dr. Tony
Bendell.
Step #6: Frontline employees make behaviors and new practices a part of daily work life
It ishere where seniormanagementaswell asall keyindividualswhetherteamleaders, supervisors,
first line managers, middle managers and high-potential people need to ensure that the changes
from this program are ‘embedded’ in the organisation – that they are embedded in the minds of
employees and become ‘just the way we do business around here’.
6. Again,constantvigilance isakey.Relentlessreinforcement andinspiration by senior management is
also a key. Senior management leading by example is a key. Aligning human resource systems
especially recognition, performance evaluation and rewards at all levels is key to reinforcing the
desired behaviours.
My strong belief – and experience, tells me that the Domain Decision Council on ‘Renewal
(learning,creativity,adaptation{change} and innovation)’ should be permanent. It should consist
of the CEO (not the chairman of the Council), the Head of HR (chairperson), one other member of
the leadershipteam (VP ofsales, marketing,CTO, CIO, CFO) – pick people who need their mindsets,
their paradigmsshiftedto a better placealong with the CEO). This Council would be the equivalent
of the Steering Committee, the CEO would be the equivalent of the Sponsor and the Head of HR
would be the Champion.
This Council, as previously mentioned, would be supported by one or more Strategic Business
Improvement Teams or Strategic Business Change Teams made up of a cross-functional group of
high-potentials. They too would be going out and working with, involving people throughout the
organisation as well, making regular presentations to the Council and the full Management
Committee on progress, additional support requirements, success stories and more to keep the
momentumandmaintain the energy,desire andacceptance of change throughout the organisation.
These Team members would have special development requirements – some provides by senior
executivesinthe organisationorbyothersfrom the outside –practitionersoracademics – becoming
ever more capable over time.
Change needstobecome away of life andsomething that employees do not fear, but embrace as it
provides them with opportunities to become involved, to learn and to grow as well. These are the
‘core’ elements employees are looking for (see my Article: What Employees Really Want).
This final stage also needs to be comprehended in the change strategy execution process. The
amountof time required to embed the change is clearly dependent on the size of the organisation
and how far-flung it is – e.g., local national, regional, global. It is also dependent upon people
embracing the changes more quickly or more slowly depending upon such things as trust, respect
and behaviors – moving up the learning curve. Ultimately people reach Peter Senge’s 4th
stage of
‘unconscious competence’.
But the fact is thatchange mustbe continuous – notjust a ‘one-off’activity. This is where ‘renewal’
comes into play, but very few organisations have learned this. Examples include P&G, Apple,
Amazon, Nordstrom and a few select others.
Here is an example fromapastclientof mine. I went into this organisation and conducted in-depth
interviewswithsenior management, small group interviews with middle management and others,
and focus groups with frontline employees. From that I was able to create a ‘current state cultural
profile’shownonthe left and work with senior management and others to create a ‘desired future
state’whichiswhat yousee on the right. This was done at the outset of the change process among
other things to help everyone see where we were and where we needed to go. The strategy
developed were the steps for getting there (following the 6 steps above):
7. And also
As youcan see fromcomparingthe leftandright columns,thisorganisationhadsome challenges
ahead. Settingprioritieswaspartof the key to success. There wassome low hangingfruit. Others
tooklonger. Focuson was onthose whichcouldprovide disproportionatelylarge benefitsforthe
investmentof time andresources –meaningtheyresult inmore value be addedmore quicklyto
more keystakeholdersthanothers. Understandingthe interdependencies betweenthe issues was
8. another. Clearlyviewingthe customerasa partner,not justan account wouldlinktokeepingthe
business,notjustgettingthe business. We gotthe job done.
As Beverly Sills,Americanmusicianoncesaid,‘There are no shortcutsto any place worth going’.