Managing change: hire and fire or train and retain

Whenever an organisation or system changes its vision or strategy or needs to remove the corrosion, it is often given that everything within the organization must change, adapt and sparingly destroy. Many of organisations and management often adapt a quick fix ‘surgical strategy’ across the board - hiring and firing, placing a new team and bring in new blood; destroying the existing and recreating the new. These organisations believe that the old must give way to the new. Management performance and incentive plans to achieve the desired change are also agreed based on (often exaggerated) minimum loss value in initial years and minimum profits for future years which may remain elusive!  

The illusion of “surgical changes” clouds the new management from enjoying the true value of sustaining existing success that is paying for the change. Often undermined is the current capability, competitive advantage, the skills, experience and insight of the existing people, products and systems, the value systems, brand reputation, and cash flows that was built by the existing organisation with the help of people that helped it sustain.  Quick surgical changes implemented across the board damages and manytime destroys the corporate fabric, the corporate culture and values, it's existing capability, cash flow and customers and many times challenge the organizations very sustainability that should have instead supported change to ensure a thriving organisation. 

Change is gradual and people always take centre stage when change is to happen. Changes happens because of people that create or develop new technology or change preferences, by the people that make change possible, and for the people that served i.e. the customer and community.  

The change process is difficult for the organisation (and its people) that must change and adapt to survive and thrive in the new environment and its challenges. Change draws people out of their comfort zone; requires people to be adaptable, agile, learn and unlearn for their own benefit. 

There is a certain analogy in cancer treatments to ‘managing change’; there is no right and quick fix however the right fix depends on the management insight, capability and frame of the problem.

• Surgical strategy works very well when the cancer tumour is localized; the removal of tumour helps with no damage to the rest of the body. This kind of surgical change within the organisation can be managed by clear demarcation and localization of the rot, communication and building trust in other parts of the organisation, and with conviction.

• All out chemotherapy and radiotherapy for a cancer that is spread out has a negative effect on normal cells; the terminal consequences are fatal.  If the consequences of rot within the organisation are fatal then management must not invest good money after bad money; the best strategy is to extract and return maximum shareholders and employee value from the organisation. Sale or merger with a better suitor, management buyout or sale of assets is indeed the best strategy.

• New cancer research focuses on immunotherapy and hormonal therapy; immunotherapy induces immune system to fight the cancer and hormonal therapy blocks certain hormones that inhibit cancer. This strategy for an organisational change is long term, painful, gradual and requires focus and investments on people, organisation capability and customers; more often results are encouraging and ensures that the organisation thrives in the long run.  The success builds a strong goodwill, respect, brand value and loyalty among its customers, suppliers, employees, community and government. The experience also helps the organisation and its people ready to execute similar changes in future with ease.

I have had the benefit of managing change and dealing with change several times in my career as we live in a constantly changing world provoked by financial crises, destructive technology and eroding skills. Happy to share some boundless but limited approaches that has helped me in the change process with a human touch that ensured immuno and hormonal therapy. I say limited because there is so much complexity involved while dealing and managing change, people, process, systems and the management that there isn’t one approach nor strategy that works to all situations.

• Understand and articulate the issues and the consequences; quantify the impact.  

• Clearly communicate the issues and its impact.

• Build consensus around the way forward and the desired changes; quantify the benefits and consequences to the organisation and people.

• Involve and create awareness among your stakeholders – customers, employees, community, suppliers and government. In some countries you cannot fire people nor can you stop paying taxes or stop supporting the local community and the government. In some countries, retrenching or closing factories can have political consequences as the local community’s sustenance is threatened.

• Build consensus and agree on way forward and set expectations from people and stakeholders.  

• Make people participate in the process, empower and help them feel happy

• Set clear plans, goals and timelines for achievements. Review progress, solve problems, provide resources, motivate, recalibrate or change.

• Set up the right incentive plans and reward that are linked to quantifiable achievement and milestones. If you carefully notice the trained animals at the zoo, the Orang-utans (great apes, chimps and animals) are incentivised by rewards mainly the sweet fruits; whereas in real life Orang-asli (natural humans)  are individually incentivised using a complex mix of rewards, compensation, social status, recognition, promotions; the gratification of involvement, engagement, empowerment, ownership, gratification of achievement; the joy of creating something new, use of skills and efforts, etc..

•  Accept that some will exit, some will have to be gracefully exited. Those who cannot take on the change challenge will any way leave to make way for those enthusiast or the new; some will have to be gracefully exited.

• Help people train, retrain, learn, unlearn, and build capability to manage change.  

• Give people a chance to change, people are adaptable. Involve and empower people in the change process. Motivate and boost people’s engagement levels - give hormone boosters and/or make them immune.  Everyone loves to experience and cherish the success of their efforts and capabilities. Accept that some will be left out.

• Identify the gaps in the capability and technology; hire new and young people and technology to work in collaboration with existing people so that both benefits and the collective strength and capability gradually increases.

• Communicate, communicate, and communicate until it is all done and desired objectives are achieved.

• Leverage on existing cash flows and profits; systematically stem losses if a surgical approach is required to something that is eventually fatal.

• While change is in progress, do not lose focus on customers, market insights, stakeholders, your profitability, and reputation. Cash flow, profitability, and positive results are the biggest motivators within the company.

• Publicise to create awareness of the achievements; feel proud and celebrate!  

• Internalise the change process so that it can be leveraged when needed in future.

• Be prepared to fail, accept criticism, exit and change. Loose a few battles here and there to win a war. 

The journey isn't easy as outcomes are uncertain unless engineered and controlled; it requires foresight, courage, dealing with humans, patience, and personal risk taking.

• Environmental change happens naturally everyday yet the  species thrive, spread their colors and flourish!!!