The Change Equation - three factors that influence success.

There are some conversations that you never forget. I remember one such conversation many years ago with Jonathan Chocqueel-Mangan, strategist and transformation expert, when he introduced me to the Change Equation.

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When driving strategy or transformation, the change equation demonstrates how success is influenced by three important factors, 1) the clarity of the end point the strategy or transformation is working to deliver, 2) the clarity of the steps to get to the desired end point and 3) the level of employee dissatisfaction. 

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OK, so that's obvious, the ‘aha moment’ is that it’s an equation.  If one of the factors, for example the level of dissatisfaction is low, then this directly influences the scale of the overall change. 

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How does this work?  It doesn’t matter how clear the vision or outcome of the transformation is, how well the plan to deliver it is considered and articulated - if people don't feel a level of dissatisfaction with how things currently are, they don't feel the need to change. Individually they are less likely to embrace the new ways of working and adopt new behaviours, so at a business level the amount of change that happens is limited. 

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The power, relevance and simplicity of this model resonates with me as much now as it did then and has proved invaluable on many occasions. For example, when leading the activation of a turnaround/acceleration strategy in a mid size UK business, it prompted me to consider how clear and compelling the future vision for the business was. It made sense to me but would it resonate across all functions, to people within different roles and with different levels of experience?

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The change equation isn't new - it's a variation of the Beckhard-Harris Change Model doesn't aim to explain everything, there are many other factors which impact the successful adoption of the new ways of working, technology and other components planned as businesses transform and implement strategy. There are also other change models e.g. Mary Lippitt's Model for Managing Complex Change (Vision + Consensus + Skills + Incentives + Resources + Action Plan = Change.) However, what I like about it is that it highlights the importance of people, and their understanding of and belief in the change.

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1) Clarity of the end point.

If we want people to work towards change, we must bring this change to life. We need to help people picture, understand and internalise what it will means for them. Simplified high level strategy statements communicated by PowerPoint fail to do this, they might aim to sell the 'North Star'​ but to quote another ex-colleague of mine, Peter Pirner, "More often than not what they convey is a 'Constellation'​ that is open for interpretation."​

Clarity of the end point requires us to answer the employee question 'What does this mean for me?'​ We need to help people understand not just how the business shape will evolve but also what will be different for them in how they work. Concrete examples are needed showing what will change in the day to day working lives of people in different functions and roles to help people make sense of the change and individually understand the implications and benefits. We also need to set expectations regarding new skills that may be required and old skills that will no longer be needed. This is a tough ask as many of these things may not be fully known or worked out during the early stages of the transformation or strategy roll out. Additionally, this all takes time and effort. 

 

2) Clarity of the steps to get there.

How many times have you witnessed fear and disbelief in the eyes of employees as the latest strategic plan or digital transformation is launched? Even if individuals do understand what is planned, many just can’t see how the change is going to happen and more importantly how they and their colleagues are going to do what’s required for this new world. 

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For change to occur, people need to believe the steps being taken to move the business forward. In addition to explaining the 'big steps'​ e.g implementing new technology to speed up customer delivery, it's important to provide visibility of the steps to support individuals through their personal change journey. Understanding isn't enough, belief in the steps that support individual and team change is key, as is the belief in the commitment to the changes planned. A country CEO I worked with over a three year period when rolling out strategically critical new ways of working, once said to me - "For two years we told you we supported the new approach but in truth we didn't really believe it would be successfully introduced in other countries, so we changed as little as possible."​ On another occasion a member of a client service team who was required to invest in building new expertise admitted to me "I'm worried that I'll be the only one to do this extra work, what if priorities change again next year, I'll have wasted my time."​

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3) Level of dissatisfaction

Individuals change because there is a personal reason for them to do so, not because there's a benefit for the business. I’ve witnessed a respected global CEO articulate the need for the business to deliver faster and cheaper for customers many, many times. However, it was only when business leaders and employees personally started feeling the pain of delivering to tighter deadlines and downsizing when customers shifted to cheaper suppliers, that they got behind the strategy to leverage technology to deliver more quickly and efficiently.

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When communicating the rationale for change, it is essential to land the implications of not changing and bring this to life in a way that's personal, relevant and impactful. Whilst it might be clear to the CEO that there are threatening shifts within the industry, for many these may not be visible or believable. So as transformation and change leaders, we need to help people make sense of the change before they and the business feel the negative impacts and dissatisfaction that not changing brings.

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Landing the message

If there's one thing I learnt during the years I've spent leading transformation and change it's that people don't change because you tell them they need to, because you've created a revolutionary new business strategy or invested in a shiny new piece of technology. Whilst a compelling vision, smart strategy and clearly articulated well thought through plans are all necessary, more is needed to shift behaviour. They are necessary but not sufficient. To land the message and gain commitment to the work and behaviour change required, we need to help individuals make sense of and accept the change needed. This as true for senior leaders as it is for junior members of the team. 

Communications play an important role in doing this - webinars, town halls; explanatory videos, Q&As at team meetings etc. However, practical interventions are, in my view, essential. Interventions can be enjoyable and creative, run within teams or by central change resource, and can either fit into the normal rhythm of business meetings or be delivered separately. They are not briefing sessions but engagement sessions with group exercises that encourage individuals to consider the current business context, review the implications of the strategy for them and to consider the plans proposed. When done well, engagement sessions like this generate a buzz within the business as one by one, individuals buy into the changes and start to talk positively about them.

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Moving to action

The change equation highlights that successful change is more likely when people (leaders, managers and team members) understand and buy into the future vision of the business and the steps to get there, and are predisposed to change because they are dissatisfied with the current situation.

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However, the equation explains only part of the challenge - mindset shifts are important but change actually occurs when people behave differently i.e. work in different ways, adopt new technology, invest in new skills. So, consideration needs to be given to the new behaviours required and the mechanics that move people to action. In the words of the HR profession and change expert Avril Scott 'the key to unlocking behavioural change sits in the experiencing of the new.'​

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