Recessions and market turmoil present the best opportunity to restructure or reposition a company or change an organization. Why is that? Three reasons:
- Markets are depressed and expectations are low; you can get it done under the radar and with minimal loss of productivity.
- At some point in the process, it tends to invigorate the organization, probably because it gives folks something positive and exciting to focus on.
- The company is well positioned when the market turns around.
So let’s say you want to do this thing. You have three choices. You can Google “change management” and wade through 10 million records hoping to get a clue, DIY (do it yourself) with all the talent God gave you, or hire a very expensive consultant (like me) to lead you through the process. In any case, you should start here.
There’s a five step process I employ - five questions that must be answered for any organizational change to be effective. They may sound simple, but questions often are; it’s the answers that are complicated. Also, you’d be amazed at how many CEOs and other supposedly bright people screw it up, so it’s best to keep it simple.
Five Steps to Manage Organizational Change
- What problem are we trying to solve? This shouldn’t require explanation, but everything depends on how you set up the problem. You have to be crystal clear, not on what you’re trying to achieve - that comes later - but on what’s wrong that needs to be righted.
- What’s the current situation? One way or another, you have to obtain as honest, accurate, and objective a snapshot of the current situation. Make sure you include both insiders (employees, managers) and outsiders (customers, analysts) in your sourcing.
- What are our ultimate objectives? Once you know the problem and your starting point, the next step is to figure out where you want to take the organization or company in the next two to three years. What are your ultimate, overarching goals.
- What needs to change to meet our objectives? Be honest about what it will take to achieve your stated goals, i.e. reorganization, restructuring, M&A, etc. This is where you make critical decisions, assess risks, and ultimately arrive at a plan.
- What process should we employ? Up to now, it’s all been talk; now it’s all about execution. Look at the process of change just as you would any project: identify key stakeholders, project management, resources, timeline, launch strategy, etc.
A final word of encouragement. In the words of Miles Davis, “When you hit a wrong note, it’s the next note that makes it good or bad.” There’s no such thing as a situation you can’t recover from. Remember that when you’re knee deep in the process. It’ll help.
