from Workplace Advisory at Allsteel
Change Management and the Bottom Line
As the pace of workplace change accelerates to keep up with worker expectations, business evolution, technology, and the
changing nature of work, the importance of implementing a change plan is critical. There are several factors underscoring this
need: humans prefer familiar and stable, and therefore naturally resist new and different, even when it’s “better.” Whether
we’re aware of it or not, most physical change is really about behavioral change – which requires that we acknowledge and help
workers to understand and perform “the new way.” Training may be needed to acquire these new skills. Understanding that
change is hard for everyone, tackling the right questions, thoughtfully building the internal and external change team, building
new capabilities and behaviors, and developing and executing a robust communication plan are all integral to a successful
change strategy.
Change in our lives is difficult, whether voluntary or not.
The fear of the unknown forces us to speculate on what
might happen; and in the absence of information, it’s
human nature to play out all of the possible negative
outcomes. Apply that to the scale of a workplace change,
and it’s easy to imagine how quickly that absence of
information can negatively impact employee productivity
and morale. What compounds this issue is that workplace
change may seem to be solely about physical things – like
smaller or lower workstations, or more shared, enclosed
project spaces – but it’s also about encouraging new
behaviors, changes in social norms and expectations
about “how things are going to happen around here.” It’s
the underlying implications of the physical change that
makes us skittish, especially if it’s not acknowledged or
“discussable.”
This is where a change management strategy and
communication plan can not only be effective in
squelching rumors, and instead creating excitement and
buzz around the new changes, but also explaining why
things need to change, and what the new expectations
and social norms will be. Let’s be realistic, though – not
everyone in your organization is going to become positive
about the changes at hand, no matter how much you
communicate, coach, and prepare them. That should
not deter an organization from employing a thoughtfully
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planned and executed change strategy. The end result will
bring the majority of workers along and encourage their
understanding, and enable their transition to the “new
normal.”
Oftentimes, when we meet with a new client, we ask
about any major workplace changes that have occurred
in the recent past, and how they managed the transition.
We’re usually either met with a blank stare, or a knowing
laugh. The reasons for not having actively managed the
transition from the old to the new can include objective
considerations – like schedule or financial constraints – and
subjective considerations – like attitudes around inclusion
or fear of opening the Pandora’s box of behavioral change
and expectation setting.
The hard costs associated with implementing a change
strategy are easy to quantify, whereas the intangible
costs associated with diminished engagement or even
lost productivity are not, often leaving change planning
and communication value-engineered out of the project.
While this is understandable, it is short-sighted and can
prove to be costly in the long-term if it adversely affects
employee motivation and performance, or the redesign
of workspaces is being perceived as ineffective. There
are three driving factors that are paving the way for the
argument in favor of including change strategy and
communication plan as part of all projects.
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The expectations of today’s workforce
Citizens are demanding transparency in government
(consider the recent media attention the NSA has
received), and technology has enabled the “power of
one” to be magnified via various social media channels.
These social trends are making their way into the
workplace, and as a result organizations will be expected
to be transparent and focused on “walking the talk” not
only externally, where the message historically could
be managed, but internally as well. The companies that
embrace this sea change and act on it to connect the dots
between the physical change and new behavioral norms
– like more choice and control – will reap the benefits of
robust attraction and retention rates, in addition to an
engaged workforce.
The evolving business landscape
Organizations are recognizing the need to align their
workplaces with the rapidly-changing business landscape
– focusing on effectiveness, efficiency, agility, innovation,
and community. The importance of keeping the workforce
informed of how these macro trends are driving change in
the workplace will continue to be underscored by the pace
of change.
The changing nature of work
Work is happening faster, anywhere, anytime. Teaching
the workforce the linkages between their new workplace,
how it can support the work that they do, and giving them
permission to make some changes themselves will support
future shifts in business, which are happening at a faster
and faster rate.
There are many people, tools, and processes involved in
an effective change management program. Ideally, the
process begins before the first time employees catch wind
that a workplace change is on the horizon, and continues
well after the last box is unpacked. Getting the workforce
(or at least the majority) behind the changes at hand
requires a thoughtful approach to the following questions:
What is changing? Identify where the organization is
today in contrast to where it will be after the workplace
change, considering changes to the physical environment,
technologies, business processes, and behavioral and
social norms. This will bring to light the gaps in between,
and will give the change team the framework to identify
what they’ll need to accomplish to bridge those gaps.
Why are these changes occurring? What internal and
external forces are driving these changes? What business
goals – speed to market, reduced costs, improved
retention – must be achieved and are in turn driving
changes to the workplace and the way work is done? And
what data is available that supports the need for these
changes?
How can we improve/ensure buy in? Organizations often
overlook the importance of selling the change internally
and tying it to changes in behavioral and social norms.
They make the mistake of assuming that if it’s good for the
company, then people will “get it” and get on board. Or
that it’s just physical and “if we build it, they will come.” A
change program will be more successful if organizations
think of it from “the voice of the customer” viewpoint, with
the employees playing the role of customer. What’s in it for
them? How will it impact their work? How will they benefit?
What has to change, and how will they be successful in
the new ways or working? A compelling story must be
crafted to get buy-in. But be honest and do not make it
one-sided, employees are too smart to believe a change is
being made simply to benefit them.
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Who will best represent the change effort throughout
the organization? Although having an executive sponsor
is an important factor, this is less a question of hierarchy
and more of social capital. Think about the people in
the organization who have the hearts and minds of their
peers, and who are both willing to champion the change in
expectations and model the new behaviors. Recruit them
as part of the change team.
What other changes in behavior are expected as a result
of the change? Many new programs have far-reaching
implications for not just worker behaviors, but also their
manager’s. Implementing a mobility program which allows
individuals to work remotely will not make mobile work
successful, for example. Managers will need to manage
their teams differently, mobile workers will need to
communicate differently, and everyone will need to use
new tools and technology. An effective change program
will identify these desired behaviors and the gaps in skills
and comfort with technology, and provide the tools,
training, and development to support them.
How are we going to get there? Develop a timeline of
change activities, utilizing a variety of activities and media
that are appropriate to the organizations’ unique culture.
Consider the audience of each activity, and recognize that
training, coaching, or messaging may need to be nuanced
depending on who is receiving it (again, think “what’s in
it for them?”). This is a great time to be creative about
the way workers and their managers are engaged, and be
flexible in the course taken – if certain communications
or activities are working better or worse than others, it is
important that the change team has the flexibility to make
course corrections.
How will success be measured? Discuss this from the
start and think about how these goals could be measured
before and after the project to provide positive data
for the change effort. Otherwise, the successes will be
anecdotal and not easily measurable. For example, if one
of the business goals is to decrease product development
cycle time by collaborating more, determine the typical
length of the cycle before the change and again six to
twelve months after move-in. This will give you the data
you need to determine if additional changes need to be
made to support the goals of the business.
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Conclusion
Last but not least, communicate, communicate,
communicate! Remember, the goal is to maximize
transparency and minimize loss of productivity. In a
vacuum of information, it is human nature to assume
the worst. If employees are busy telling themselves
stories about how bad things are going to be, then it is
reasonable to assume that they are not actively engaged
and performing at their best.
These can be challenging questions to answer, particularly
if an organization has never considered them. However,
with the ongoing effective and efficient utilization of this
significant asset in play – coupled with the rapid pace of
change impacting both work and the work force – focusing
on these questions can result in tangible benefits. And
although it is difficult to assign a cost to this, it will become
increasingly clear that companies can’t afford NOT to
develop and execute a workplace change strategy.
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References
Workplace Advisory at Allsteel
Switch by Chip Heath and Dan Heath, 2012.
The Workplace Advisory team listens. And we apply
research and our extensive workplace experiences and
insights to assist organizations develop and implement a
situationally appropriate workplace strategy: one that
aligns with their organizational culture and business goals,
supports their workers’ ability to work effectively, utilizes
their real estate assets as efficiently as possible, and is
highly adaptable to changing business and work practice
requirements.
The Heart of Change: Real-Life Stories of How People
Change Their Organizations by John P. Kotter and Dan S.
Cohen, 2012.
“The Irrational Side of Change Management” by Carolyn
Aiken and Scott Keller, The McKinsey Quarterly, 2009
Number 2.
The Fifth Discipline: The Art & Practice of The Learning
Organization by Peter M. Senge, 2006.
INSIGHT from Allsteel
The INSIGHT mark identifies material – papers,
presentations, courses – created specifically by the
Workplace Advisory team to share our workplace strategy
knowledge and perspective. Additional INSIGHT material
may be found at allsteeloffice.com.
About the Author
Amy Hill is a member of the Workplace Advisory team at
Allsteel. She gravitated to the emerging profession of
workplace strategy to understand, uncover and enable the
levers of high performance and their impact on people
– whether they’re spatial, wellness-based, interpersonal, or
social. Currently living in Los Angeles, Amy is a member of
the CoreNet Southern California Chapter. She regularly
attends CoreNet Global and WORKTECH conferences,
and tracks various online workplace groups to stay abreast
of the latest workplace knowledge and trends – adding to
the rich interactions with clients that remain her primary
source of insights and experience.
Allsteel Inc.
Muscatine, Iowa 52761-5257
allsteeloffice.com
(08/14)
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