How To Create The Best Change Setup
Our Basic Concepts for Running a Change Initiative
by Michael Faschingbauer, Manfred Höfler
Organizational Change Is Not A Walk in the Park
When embarking on a journey of change, it is worthwhile to think about the appropriate carry-on luggage. This includes, for example, the mental models we carry with us. If you pack too many, you won't get anywhere. On the other hand, without any models at all, you also won't get far. In this article, we introduce three basic models we wouldn’t leave behind on a change journey.
The change roadmap
When traveling, it is important to identify three points of orientation:
Where am I? Where do I want to go? And how do I get there? In a change process, these three questions can also serve as a guide. And just like a journey, change occurs based on three logical considerations:
1. WHY: "Why should we change?" Effective change requires a common understanding of the starting point.
2. WHERE TO: "Where should we go?" Effective change requires the development of an attractive picture of the future or at least a viable state.
3. HOW: "How do we make our vision of the future a reality?" Effective change requires the development of a customized, iterative path along which the organization and its people can move from the current state to the future state.
However, change processes are never linear. They always occur in loops, requiring constant observation, course corrections, and a holistic or systemic understanding of the organization. This understanding is often at odds with the understanding held by most people in the classical management world, who believe in linear planning, cause-and-effect relationships, and the controllability of change. Thirty years ago, Peter Senge said, "You can't drive change." However, in times when agility is the buzzword par excellence, many change projects are still set up like technical projects and attempt to control the evolution of human behavior with business management methods. Therefore, the change roadmap should be combined with appropriate models that take this fact into account.
Change inside und outside the skin
The journey of change requires us to pay a balanced amount of attention to different levels. Visible issues such as structures, processes, and systems occur in the area we call "outside the skin”. But issues that are not so directly visible, such as behaviors, beliefs, and assumptions about success, occur in the area we call "inside the skin”.
Structures or processes can only be implemented if the people involved are touched and really affected. Personal development and transitions follow the logic which guides the psyche. This logic obeys completely different laws than the logic underlying cognitive processes, which is used as a guide when designing structures, strategies, or management systems. It is important to initiate personal transitions not only when new concepts are available, but from the first hour of a change process. This means that developments "inside and outside of the skin" must be planned and implemented synchronously.
The Change Curve
A classic model in change management is the change curve going back to E. Kübler-Ross. This model describes people’s emotional experiences in non-self-determined change processes in seven phases. Time is plotted on the x-axis of the change curve, and the productivity of the affected individuals or organization on the y-axis. What phases do employees typically go through when faced with change?
1. Shock
In the beginning, people usually only experience some form of premonition. Suddenly, the premonition becomes real, and this sometimes triggers a shock. The severity of the shock depends on the impact the change will have on the person.
2. Denial and anger
The shock may be followed by a strong defensive reaction. People want to show that everything is fine and try to manage the situation. In addition, they experience some anger that manifests itself in resistance. Some people actively go to the barricades during this phase. Others retreat to service by the book. The organization may even experience an increase in productivity.
3. Insight
People realize that the change is inevitable, and that resistance is no longer helpful. An experience like rational insight takes place. This does not mean, however, that the person critically questions or willingly changes their own behavior.
4. Farewell
The person has now experienced a feeling of sadness or loss. Productivity has hit rock bottom. The person may think, "I have to deal with the new circumstances." Their feeling of sadness about this is followed by an inner acceptance and release process. The person may think, "Yes, I'm letting go of the old habits”. Their decision to change is also made on an emotional level.
5. Try things
When they have successfully and emotionally let go, a feeling of being open to new things sets in. Productivity begins to rise again, and people's attitudes toward change become more positive. People try new things and have their first experiences with these things. It is normal for setbacks to occur.
6. Learning
People continue to learn and gain confidence when dealing with the new situation. Their previous feelings of resistance are reduced in this phase, and fear of change plays a minor role.
7. Confidence
People integrate what they have learned into their daily work. Change becomes the new normal.
How quickly the person completes the seven phases and how pronounced the ups and downs are depends on each individual and is strongly influenced by active change leadership. It is good for managers to know that changes that are unwanted by employees usually lead to a decrease in performance. The intended increase in performance can only be attained later. In most organizations, several change curves are running simultaneously: Those initiating change are already trying things out, middle management is struggling in a swamp of sadness, and employees on the shop floor are still resisting the change. Understanding the phenomena of the change curve is also a compelling argument for professional change management: It makes the curve flatter (less performance loss) and shorter (less performance loss over time).
So what?
By understanding these models, you will be well prepared for the next change. Their charm is that they are simple to explain, but despite or perhaps because of this, they provide a great deal of guidance. They won't save you from the hassle and joy of traveling along the iterative path; nor one or the other detour or wrong way. But that is another story...