Change Strategies – Effective Change is Seen as Increase not Loss
Charlie is the CEO of a mid-size manufacturing plant which supplies airlines with portable storage devices. They have been in business for 17 years, and over time have built a successful plant that employs close to 300 employees. Employees have grown to depend on the benefit package offered by the company and have lobbied in the last few years for an improved health care plan.
The employees did not take much time to consider the overall health of the industry. Change in the pricing structures of the airlines and the reduction of items offered to the air passengers have, over time, hit the company hard and have left Charlie and his management team working with advisors and consultants to identify holes in the marketplace that using existing structures, they could fill.
After 14 months of work, the company is primed to make some serious moves that include significant restructuring, new equipment, and a reduced workforce for the next 24 months. How can the change be introduced without it deemed as a loss – especially by those facing layoffs?
If I Lose – I Will Refuse the Change
Human nature being what it is – we don’t favor losing. If your change means I will need to give up something – even if I don’t really like what I have – you have a problem. I won’t give it up easy. Just think of small children with toys.
I often hear parents saying “I just couldn’t believe it when Johnny threw a fit today at daycare. He refused to share his toys, even though he had most all the toys in his proximity and didn’t care for the ones being challenged. Kids are so funny that way.”
I always think: What do you mean kids are funny that way? I haven’t met an adult yet who doesn’t default to “MINE” until their training kicks in and they possibly share – even if on the inside they are having a tantrum and feel resentful at the notion.
Your team, clients, employees, vendors, bankers, colleagues, friends, neighbors, constiuents, shareholders, investors and who ever else may be affected will not embrace your newfound suggestions UNLESS you find a way, a story, a change strategy that allows the to win more than they lose. Percieved loss will not fly. Show how they win, even if they lose a bit, and you are much more likely to succeed.
My Advice To Charlie
Charlie needed something to offer those facing change – especially those with partial layoffs. I suggested that Charlie use the upgraded health care plan as an incentive to cut back hours for almost everyone – meaning very few lost thier jobs and everyone benefited from better health plans. The cost to the company – far less than the wages! The employees helped to create a plan that included sacrifice on their part, Charlie sacrificed and took the same pay cut as did the management team, and everyone is winning.
Not all stories have happy endings, and change can be seen as fatal to a career or financial stability. But even then, with the right tools, strategies and especially attitude, change can be the hidden pathway to a pleasant reality you never anticipated.
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