Navigating Change: Practical Steps to Remove Obstacles

Change Management

Investments in, or by, businesses stimulate change and uncertainty. After all, PE firms don’t invest to keep things the same. The logical process by which the changes will be implemented are generally clear. However, what often only becomes apparent once you start to implement the Value Creation Plan are the blockers to change. Those unknowns are not a surprise when you encounter them but their negative impact on performance and pace can be a shock. We have captured the most common blockers observed over the years. See if you recognise any.

01 - Some team members don’t feel a compelling enough need to change

 

That’s not to say there isn’t a compelling enough reason. It may just be it’s not well enough understood or it may be compelling enough for the investor but not for the team members with most influence to make the change happen. 

 

A few questions that may help:

 

  • Do people know what the end result from the change will look like? Have you painted a clear enough picture of the future to help alleviate the uncertainty?
  • Do they understand what the intended benefits from the change are? Are there benefits for them personally – development, progression, reward?

 

If you want to realise the full value from the investment, you have to be able to answer a resounding ‘Yes’ in all cases. ‘Not really’ or ‘kind of’ won’t cut it.

02 - Some team members didn’t appreciate how bumpy the change was going to be

 

Change isn’t easy

Even when people buy into the need for change, and are happy to be engaged in all of the discussions designing the change, they are still shocked at how hard it is when the ‘rubber hits the road’. This is when people start to see and feel the stark reality of organisational change. A common sight at this point is lots of ‘discovery and design’ work being pursued. Turns out, it is more comfortable to stay designing the future than actually delivering it! 

 

 

What do we suggest?

Go back a step. While you are in ‘selling the change’ mode, you may be wary of highlighting some of the challenges involved in delivery. Our advice – be less wary! Challenges are a fact of life so be honest and authentic about what lies ahead and, most importantly, work with team members to find bridges over the potential obstacles. That way everyone knows what lies ahead but they can also see a way through it.

03 - Leading well through change is the mark of a good leader

 

Every business needs strong leadership whether embarking on change or not.

It is even more important during periods of change, especially where there are traditionally high levels of autonomy across the business. You can expect a quick and powerful rejection to enforced or mandated change by locally autonomous divisions or acquired business in a ‘buy & build’ situation.  

 

 

Good change leaders take time to listen, engage and, where possible, accommodate ideas and concerns.

However, there will be times, when tough decision need to be made. Good change leaders ensure that the execution of the tough decisions are made in a respectful, kind and considerate way.  This is the mark of a great change leader. 

04 - People just don’t have the ‘bandwidth’

 

It’s important to remember that team members delivering great work is what made the business attractive for investment in the first place. Supporting them to continue to do that and also engage with change activities is a common challenge faced by businesses. So, ensure you resource the management of change appropriately.

 

The risks of ‘serving the investment more than servicing customers’ is very real. We call it ‘resist flipping the Nabla’. It is important to address the resource implications of the inevitable extra work - designing and delivering change projects and also the time and effort involved in adopting and adapting to change. For example, training team members on the new digital tool that will make the business more efficient or establishing new performance management systems. People deliver change so stop talking about ‘bandwidth’ and start talking about workload, energy, support, coaching and development.

05 - Communicate, communicate, communicate... in their language

 

We have said before that change is hard. We have also said it is people who deliver change. It is also worth saying that many people across the business don’t talk in the language of Value Creation Plans, M&A, revenue growth, increased profits, or digital transformation. They talk in the language that makes it real for them about things that matter to them.

 

You can tell team members what is happening ten times and it still won’t land well… if you are not speaking their language. All you are doing is increasing levels of uncertainty and that has a negative impact on the value you are seeking.  

 

Here’s what you can do. Commit to communicating and engaging in a way that is consistent, regular and real. The messaging must be easily consumable, practical and honest. In addition, the channels must create space for proper engagement - open questions, idea generation and sharing of experiences. The communications must also respect the different needs of team members; particularly those who are neurodivergent. You also have to support and coach your managers to help them be there for team members. This is not the Instagram version of change communications where everything is polished, edited and upbeat. This is BeReal.   

06 - Take time to truly understand culture

 

We often find leaders cite ‘culture problems’ when progress slows; particularly when companies are being acquired and a new Group is being formed. It is important to acknowledge the fact that you will encounter different cultures emerging in the new Group and that you do what you can to understand them at a deep level – the values, behaviours, ways of working and impacts. Identify – with team members – what needs to change, what can be retained and how this can be achieved. It’s not about creating one homogenous Group.  Diversity – of all kinds – is key to great performance. The art is harnessing the diversity in pursuit of purpose.

 

The blockers outlined here are not just frustrating. They are costly. They will bite into your returns. The more you assess and unblock their likelihood in a particular investment the higher the chance of you achieving the returns you are looking for. If you want help to assess their likelihood we would be delighted to talk.

 

 

 

“Rather than focusing on the obstacle in your path, focus on the bridge over the obstacle.” – Mary Lou Retton

 

Need help or want to share success?

If you are struggling with change delivery or not realising the value from your investment or are absolutely knocking it out the park and just want to boast about it, contact us.