Mutiny! Why Most Change Management Programs Fail

Share
ALL POSTS

Study of the field of change management has been prolific over the past few decades, and yet  many  change programs continue to produce poor results.

In 1996, author John Kotter released the influential book Leading Change. In the book, Kotter reports that only about 30 per cent of organisational change programs succeed, and subsequent studies haven’t shown improved results. 

So why do most change management programs fail? And what can you do to increase your chances of success?

 

Change Management Programs Need a Story

When you’re thinking about change management, you generally think about creating a compelling change story and using that story to motivate and inspire employees.

The problem that many executives and managers run into is that the story that motivates them doesn’t necessarily motivate their employees. 

If you create a story that doesn’t resonate with your employees, the story will work against you, not for you. This results in the kind of defiance that has derailed so many change management programs in the past.

How to decide if you need a CFO

So how can you create a compelling story that will carry you through the upcoming changes your organisation faces? Cast the story to include an element related to your community. For example, perhaps it’s important to your community that low-income children receive a solid education or that your business improves the quality of life for locals - and your organisation is instrumental in achieving these ideals. If you also include elements that support and strengthen individuals, customers, and the business as a whole, you’ll give everyone something to work for.

 

Your Story Needs Both Positives and Negatives

The world is full of ups and downs, and a believable story needs to include both. If the story is completely negative, you won’t give your employees much hope, and if your story is completely positive, they’ll wonder why they need to work at all. The key is to strike a healthy balance.

First off, your story needs a problem - all good stories do. Use your story to identify the problem, analyse what’s wrong, and come up with a plan to fix it. This kind of story compels people to take action. We all want to be a part of the solution, and a story like this shows us how.

 

Successful Change Management is Embedded

Changes need to be embedded in systems, culture and incentives, as well as organisational structures. The problem is that humans don’t always behave in rational ways, and it can be very difficult to predict what will motivate and inspire them.

For example, money is a very expensive way to motivate people, and financial incentives don’t always lead to the kinds of changes you’re hoping to make.

Gratitude and recognition, on the other hand, can go a long way.

Employees who receive token gifts (like a bottle of champagne or concert tickets) along with heartfelt thanks report a disproportionately positive impact on change motivation, and the effects can last for months or even years.

As your business works through change management, consult with business experts who have helped many businesses through a similar process.

How to decide if you need a CFO

Chris Pearce

Chris is one of the founders and General Manager at Altus. We make it our mission to truly make a difference to our clients' worlds. We guide business and individual clients through the inevitable ups and downs of financial life with a modern, outcomes based, transparent approach. Let's Connect