Working in FLAT Organizations: An Idiot's Guide

Flat Organizations have been the “In” thing to happen in many new economy companies for over a decade now. Today most companies “new economy” or the “old economy” like to describe their organization has flat. Initially it did start with a lot of the Silicon Valley ventures, then the IT boom, then the Internet bubble and the idea was well entrenched in to the HR toolkits of most organizations across the globe. Cross pollination of ideas which usually happens when HR head honchos switch jobs eventually ensured that “Flat” is the only way any organization is supposed to be structured. While this article is not useful to anybody looking information on “Flat” as an organization concept, it is a must read for the millions of minions like me who eke a living out of “corporatedom”.

It is not clear where and how this particular word originated but it is expected to be a very fashionable word to use particularly if you are the HR person of the company. My guess is that “Flat” originated as a word which would imply the opposite of the “pyramidal”, a structure of organization most companies were used to ever since the industrial revolution. “Flat” could also have originated has a word which alluded to “Level” since most organizations defined their positions and seniority ladders as levels. Thus “Flat” was supposed to the idea to level out all levels. “Flat” could also be a shorter version of “Flatter” as this is a word which “Flatters” the lowliest minions in the company to think that they are equal to the bosses.

“Flat” could mean different things for different people in the organization, like everything else in the world the meaning of flat depends on the individual’s outlook towards life, like

For an Optimist – Flat could mean she is now closer to the top.

For a Pessimist – Flat could mean there is not enough elbow room to go up.

For the Cynic -- Flat could mean there is not enough to go round.

For the Utopian – Flat means all people in the company are equal.

For the Ambitious – Flat could mean there is no ladder to climb.

For the Lazy – Flat could mean there is no need to try to go anywhere as there is nothing up there.

For the Authoritarian – Flat could mean “Other than me” all are at the same level.

For the Team Player – Flat could mean there are more options to pass the buck (or baton –PC).

In addition to an individuals outlook, how “Flat” impacts your own career depends on which stage of career you are in and what your position in the organization is, like-

If you are Trainee or junior staffer - Flat means you need to take on responsibilities which are directly disproportional to your age and position, since we treat you as an equal!!

If you are a Mid-Level manager – Flat means there is no more room for you to go up. They have replaced the corporate ladder which you were climbing with a stool and you are already standing on top of it. The people above you are actually above the ceiling.

If you are a Senior Manager – Flat means your responsibilities will be now given to smarter and younger staffers probably even trainees who do the same work at much lower pay, so that you become redundant before you retire.

If you are the Top Boss – Flat means other than yourself every thing is Flat and all people are at the same level.

It is difficult to trace the exact reasons for the onslaught of the “Flat” revolution in “Corporatedom”. Although conceptually it has its political equivalent in the Communist revolution, the essential difference to be noted is that the political revolution emphasized in change of ownership of political power from the Czars to the common people and was a revolution caused by the common people. The corporate revolution on the other hand is driven usually from the top or the board. The “common man” in the corporatedom – the staffers and junior managers usually have no interest in the Flat Revolution. In corporatedom – “Flat” does not emphasize change of ownership or even distribution of ownership, it emphasizes only on distribution of work and responsibilities lower down the order.

Along with the distribution of work and responsibilities lower down the order usually accompanied by technology enabled management control systems, it also draws blood much like the other revolutions, by reducing the number of positions and ranks in the organization. Then – what happens to the people who are already occupying those positions and ranks, depending on how lady luck smiles on them and how they have been adaptable to the culture of the organization they could be -

Laid Off - This usually accompanied by a strenuous and excruciating process of “fitment” where HR tries to collect enough documentation to ensure you do not retaliate.

Downsized – Usually means your position and pay is no longer available, you could accept something lesser than you deserve.

Right Sized – usually accompanied by a process of discovery where HR finds they made critical mistakes earlier in offering you better pay and perks and the time for righting that wrong has arrived

Lateral Movement – This is a humiliating process by which the organization asks you to do a job you cannot do and then points out how incapable you are of doing a job.

Kicked Upstairs – This happens to the lucky few who have collected enough brownie points in the past or hold some mission critical secrets which may be either useful or damaging depending on the nature of the person. It is also done if you are good candidate for employment by competition. In this case you are given a senior than current position with more advisory activities, little responsibilities and no action.

What has been discussed above is relevant to people who are caught in the throes of the “Flat Revolution” in corporatedom. What if you have landed yourself a new job in Utopia Inc. where everything is Flat? This can be particularly tricky with a lot of the foolish minions actually taking thinks to their head and assuming that they are as equal as the people above them. Organizing your daily life around a Flat organization can be as tricky as playing Minesweeper on Windows – on wrong click and all the points you collected till date becomes zero –game over- start again.

I will conclude with a few tips for people who join fresh in Utopia Inc. a Flat Organization which may help in survival till you find the next job.

Golden Rules for working in Flat Organizations:

* Remember George Orwell – “ All are equal, but some are more equal”

*Remember it has been proven since the age of renaissance – that the world is round and not flat.

*Remember not to be “Flattered” by Flat.

Typical Symptoms for Flat Organizations:

* Common lunch rooms and cafeterias for all staff which means there is no place to gossip and bitch about your boss.

* Open office spaces and no secretarial assistance to senior managers which means your boss keeps a constant eye on you and you have may have to even do some work supposed to be done by his/her secretary.

* Misleading and confusing designations which is well devised ploy by HR to flatter lower rung employees to think they have the similar sounding designations as bosses and confuse senior employees so that they do not find out that their career is stagnant. Remember that a “Boss by any designation is still a boss”.

* Constant change in roles and responsibilities which is again a well devised ploy to ensure you never become good at what you do.

* Overwhelming use of technology and systems which ensures that has the computing power of chips increases, most of your knowledge is mapped onto corporate databases and the organizations can be made much more flat.

* Penchant for outsourcing work, which becomes essential since the more you outsource the more you can keep on reducing levels in the organization to become even more flat.

So once you have understood the symptoms and use the golden rules as mantras, you need to ensure that you go on daily diet to ensure your fitness to live in flat world. The essential ingredients of your daily diet should be –

Document your good work – This will ensure that when there is an exercise of fitment you can hold forth against HR

Take Credit immediately – Modesty is not a virtue. Take credit for any success which was remotely associated with you.

Be focused on Self-Development - Your aim should be to build your CV as per market needs and work is a means of building the CV.

Be Multi-Skilled – you never know which one will be useful on a particular day. It would be a good idea if you have a few lateral skills like being able to organize parties, bartending, dancing, anchoring stage shows etc in case nothing else works they will help. I know of people who have built a decent corporate career with only these skills.

Be focused on the Pay Check – At the end of the day you are as good as the paycheck in your hand.

Measure your worth – through the seriousness of deliverables asked of you, number of security rights, approval authority and number of people reporting to you and not by your designation or what is communicated to you by HR.

While the tone of this article may appear grim, it has been written out methodical research, observation of organizations and serious contemplation. The intent is not discussing an HR theory but provide the ordinary person with a self help guide.

May your rise to rule “Corporatedom”!

Managing Change in the Workplace

Change is exhilarating. Change is terrifying. Change is badly needed around here. Whatever your attitude is to change, it is the most reliable companion you will likely ever have. It will always be with you so are better off making friends! Here are three tips on managing change in your workplace:

* Understand that growth requires change. If you double the number of customers you serve, how will your current systems hold up? Review current processes to see how they will work if workflow increases.

*Let go of the emotions around change so you can have productive conversations with those who are involved. For instance, if you are a manager and your employees are resentful of a needed change, you can help create a productive dialogue by letting go of your personal investment in the outcome. Simply discuss the situation without ego, anger, or pride. Your employees will be more open to understanding why the change is necessary, and you may learn something new as well.

* Look for opportunities to invite change. Where can your processes be streamlined? What can you learn from spots where things bog down now? Are you using an employee’s best gifts or simply using them where you need a warm body?

When you become an active participant of change, and you remain receptive to its gifts, you can learn from it and grow with it.

10 Steps to Making That Change Happen

Hair Salon Management can always be broken down into easy chunks. So if you're salon management team wants the best way of how to run a hair salon, then by following these hair salon owners tips it will ensure that you can shout "more clients in my salon" and have a successfully run salon business.

Put into action these steps and you will see results¡­ I promise!

Step One

Think about the result you want from your change. Get your Salon Management team together and really think it thru. If you're a salon owner then get some stylists together and talk it over with them. Sounds obvious but all the of the jigsaw needs to make sense if you are to get the team commitment and corporation. But no need for you to explain your reasons for changing.

Step Two

You have to change your approach or behaviour in order to change the behaviour in others CONSISTENTLY! For example if you want all clients to have a consultation before their hair is washed then you¡­ have to do it each and every time or it will be death to that idea. If you want more clients in my salon then Remember its your hair salon business so you have to change¡­.right!

Step Three

Get your salon management team to give Loads of praise when you catch them doing it right. Stop catching them doing it wrong. Why does salon management , salon owners focus on the negatives. Reinforce good behaviour by plenty of back patting.

Step Four

Hair salon business runs better when systems are in place so run small regular meetings or one to ones telling them the importance of the new system or change you want. If you have loads of part-timers or shifts then run your meetings in shifts. Otherwise it will take forever to get everyone together.

Step Five

Get your salon management team to Train, Train, Train and train to ensure that all know how to do what and when. Wishing alone is not enough you must train it. (Sorry I know this is going to be a blow to you but "Fairies are not real" just because you wish it ant gonn'a change a thing) make sure they have the knowledge, understand the benefits for the client and the hair salon business.

Step Six

Allow them time to change, you know what they say Old Habits die hard. Practice makes perfect, if they see themselves successful with the new approach then in time things will change. But remember you must praise them!

Step Seven

Expect some of your team members to feel uncomfortable with the change, even your salon management with find this out. This is so common when people have done something the same way for years and then they are asked to change it. It creates an internal conflict but this is a normal response. Its a bit like when you have a disagreement with someone who has a different opinion to you it makes you feel uncomfortable right. Remember what it felt like when you started owning a hair salon!..........

Step Eight

Reduce the discomfort by putting people who are happy with the change with the people feeling uncomfortable with it. Make sure your salon management are happy with the change. Have plenty of group discussions and one to ones. Get everyone to view their progress and to publicly commit their support to the change. This will really make your hair salon business fly¡­¡­¡­¡­

Step Nine

If you adopt the blow by blow approach above staff will carry out the changes and change their attitudes. This means that they have taken onboard the approach or new information. Often they will try to do more to bring about not only in themselves but in others too.

Step Ten

If enough people undergo the change at least 50% then over time this will become the norm The culture in the hair salon will change and your new system or training will be here to stay. Its like chucking mud at the wall eventually it will stick. Then you will be the envy of salon owners everywhere¡­¡

Creative and Innovative Culture, Change Management - Three Easy Tests

Creativity can be defined as problem identification and idea generation and innovation can be defined as idea selection, development and commercialisation. From this simple definition, it is clear that certain cultural characteristics ought to be prevalent if creativity and innovation are to be maximised. And maximisation of these ought to be a priority for senior leaders, as those organisations that take them seriously, tend to be leaders in their field, tend to maintain their leadership position longer and are quicker to bounce back when competitors leap frog.

There are many blocks that prevent expression of problems and hinder idea generation. Some solutions include:

a) An environment of psychological safety and freedom – accepting an individual as unconditioned worth; recognising that the individual is capable of producing but that their value is not based on producing; understanding empathetically; understanding the individual from their point of feeling and view (Vernon, 1970).

b) Tolerance of failure – Accepting that many ideas will fail before one worthwhile one will surface and reach commercialisation; recognising that there are benefits to failure, such as competency expansion – Blade Runner was initially a commercial failure yet Ridley Scott went on to make some very successful movies. The Economist (2003) states that 3000 bright ideas result in 100 worthwhile projects, which are winnowed down to four development programmes. And four such development programmes are required to stand any chance of getting one winner.

Though senior leaders pay lip service to the above, the reality is often much different. Below are some easy and simple tests to gauge how well your organisation is performing in practice.

a) Employee interviews. Are interviewees expected to conform to the prevalent norm of not contradicting the interviewer? If they do so, are they less likely to be selected? Interviewees who throw up many ideas and challenge existing methodologies at this stage are more likely to be expressive when they find problems in an organisation and more likely to bring them to the attention of decision makers. They are also more likely to persuade others to do the same. Thought leaders are good drivers of change and prevent complacency – though as a result it is not unusual to find that they cause friction with senior leaders who for some reason or other may be resistant to change. Remember, today’s thought leaders can easily become tomorrow’s established bureaucracy.

b) Personality conflicts are quite normal within organisations. Some theories argue that all interactions on some level are conflict based. But are junior people penalised when they conflict with senior people? Even if the senior person is in the wrong, do they get their way for the sake of preserving the existing order, structure and processes? Is the junior person made to feel that his or her behaviour needs to be monitored under threat of some sort of negative result or punishment? This is i) contradictory to an environment of psychological safety and freedom and results in suppression, not expression, of problem identification and idea generation and ii) a strong indicator that the culture is moving in the wrong direction.

c) Are senior leaders confident enough to leave themselves open to evaluation from all others in an organisation? Status deference has many negatives including i) higher status individuals tend to dominate the session and reduce the participation of others, ii) people allow higher status individuals to do all the idea generation, iii) people place higher value on ideas produced by higher status individuals and iv) people have a greater tendency to allow higher status individuals to get away with bad ideas.

This topic is covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com. You can also receive a regular, free newsletter by entering your email address at this site.

Differences Between Products And Services

What are some of the main differences between products and services? And when are these relevant?

Tangibility versus Intangibility

Products are tangible. You can buy pork as a tangible product. You buy it, you ship it and sell it. In the same way as you buy stamps, cigarettes and cars. Financial service companies however, make it possible to exchange pork bellies Futures, on the Chicago Mercantile Exchange (CME). A future is (not the most simple example of) a service with which you can hedge your risk. In this last case, most of the people trading on the CME will never see or smell the pork bellies.

The ownership between products and services is different. A stock could be called a financial product that you own. You can place a stock order which might result in a transaction later on. You bank services a depot fee for saving you a lot of work. You cannot own a service.

Where the product is much more standardized, the service is tailor-made. Companies differentiate in offering products and services, but the variations between similar products of different producers are less prominent than the variations between services.

You can count products in the same way as you can count your money (or have your service you this information). A service is not countable, but is “leveled;” better than the best service is not possible. There is a limit in what a service can offer.

A product is produced by a manufacturing process. A service is offered by the utility element of companies; you subscribe to a service in the same way that you subscribe to your gas and electricity supplier.

And this brings us to the essential of these differences; changing from one (product approach) to the other (service offering) is very complex, because of the last mentioned differences. Not only the process is different but the style change you need to support this change… Good Luck.

Changing Organizations

Change is not a unique property of the social reality we see around us. In fact, the social reality is constantly changing and this is not experienced as something strange. The social reality, in turn, consists of organizations. If a group of people organize themselves for some purpose, an organization is born. Whether this group of individuals has organized itself to run a company which manufactures a certain product or for social purposes (friendship, charity, etc.), the most important fact is that people are subjected to numerous kinds of organizations in their daily life. Each person organizes part of his or her life, and the remaining part is organized by other forms of organizations. Organizational change is always difficult because behavioral patterns must be completely rearranged. This aspect will result in a tendency to resist change. The question is: how and when do organizations change? In this article three theories of organizational change will be discussed.

The first theory is that of Lewin who proposed a theory of change based on empirical data. This theory sees change as a three step procedure: unfreezing, moving, and freezing. According to Lewin, the study of conditions for change begins with an analysis of the state of equilibrium or the state where there is no change at all. This state of equilibrium is not a stationary, but a quasistationary equilibrium. Social change can be compared to a river which alters its velocity and/or direction. Humans can also change in time, but humans also have an ‘inner resistance’ to change. It is necessary to break the individual’s resistance to change for the stage of unfreezing. When the stage of unfreezing is established, then the stage of moving to a new level of group life can follow. When the group has actually reached a new level, then the stage of freezing will finalize the complete sequence.

Lewin’s theory is based on research into the behavior of individuals in groups. He discovered that individuals are usually passive and not active. An active attitude is a prerequisite for change, and in order to make people active, several strategies can be applied. One strategy is changing the entire group. It is, however, difficult to find a universal strategy for changing individuals, groups, and societies. In some cases, it is a relatively simple and easily executed procedure, but in other cases, it is a difficult and complex procedure which involves high risks and overwhelming chances of failure. So, change or the stage of unfreezing requires skill, knowledge, and a lot of experience. Lewin’s theory is actually a system’s theory. It is a cyclical process with a feedback mechanism.

Greiner’s theory maintains that growing organizations move through five distinguishable phases of development. Each phase contains a relatively calm period of growth which is followed by a revolution. So, the main conclusion drawn by Greiner is that organizations go through evolutionary and revolutionary phases as they grow. He stated that the speed at which an organization experiences phases of evolution and revolutions strongly depends on the market environment. So, his theory can also be identified as a contingency approach. For example, companies in an expanding market will grow faster and the evolutionary periods in those companies tend to be relatively short. In mature and slowly growing industries, the opposite is true because these industries are going through longer periods of evolution. Furthermore he stated that evolution can be prolonged and revolution delayed when the market is poor, revolutions are more difficult to resolve. What are the specific five phases of evolution and revolution?

Phase 1: Creativity stage will be followed by a leadership crisis;
Phase 2: Direction phase will be followed by an autonomy crisis;
Phase 3: Delegation phase will be followed by a control crisis;
Phase 4: Coordination phase will be followed by a red-tape crisis;
Phase 5: Collaborations stage will be followed by a consultation crisis.

Miller and Friesen published a theory which they called the quantum view of organizations. Their theory was a social change theory of organizations. First of all, they found from their research that organizations, especially successful ones, do not change in a piecemeal and incremental manner, but in a dramatic and quantum way. They found that organizations are not always static and unchanging or the opposite, constantly, but that these two aspects are intertwined. Most of the time, organizations favor a stable structure and nature. The activities are focused on the improvement of, for example, the products which are already successful. This is a logical phenomenon since stability is a prerequisite for order and institutionalization.

Like people, organizations cannot constantly change their jobs, divorce and remarry etc, because this would result in an absurd situation or a completely passive attitude. So organizations are actually great supporters of stability. Unfortunately the world around organizations is changing. These changes can sometimes happen slowly, but also very quickly and dramatically. In order to survive, organizations cannot afford to change incrementally because the environment is changing. A situation will then be created of a revolutionary nature. In a short time, organizations will have to change their old habits, activities, norms and values. These organizations are trying to find a new position where they can again reach stability. What has happened is actually a cultural revolution.

The Change Management Process

Change Management is a critical piece for corporations. Large corporations depend on it for anything that affects their production environment. But what is change management at all? Change Management is the process that kicks in when a change is made to the production environment of a business. For the matter of this article we will use an Information Technology related case to explain Change Management.

Company "A" uses change management to keep track of changes to its web servers. The change management process also allows to inform all internal business units and departments of the upcoming change to the web servers and what parts of the business are affected by this change. The change management process is started by the decision to update the web servers with a newer version of the web application. The website administrators, the QA department and the developers have finished the final testing of the new application update and now it is time to go live.

The website administrator starts the process by writing down the purpose of the change and what steps are required to complete the task. He also describes the impact to internal and external users and which departments of the business might be affected (example: external customer service). The description of these tasks for the update are usually high level and not too detailed. The reason for this is more to inform the business about the change and not to list an exact how to step by step guide.

Once the website administrator has finished the initial change management request form (electronic or hardcopy) it goes up one level to his direct manager and with his approval the change management request is being distributed among departmental points of contact that have been defined in an earlier process. The different departments and business groups review the change management request to evaluate the impact to the department or group. If no impact is visible or if a possible impact is already addressed and covered in the change request the department or group approves the change management. If a possible impact is not addressed the group or department denies approval and ask for more information or how the issue in question will be addressed. Approval for the change request goes to "pending".

Once all issues are addressed and worked out and every necessary approval has been submitted the change management request awaits one more step - CTO (Chief Technology Officer) or CIO (Chief Information Officer) approval might be required. This process makes sure that a track record of changes that affect the business is created and that every group, every department and the business management are aware of what is going on.

Some critics see change management as a process that slows down the ability to act fast when needed. Others see it as assurance for continuing business success as department A might not realize how big the impact of a proposed change is to department B.

12 Key Steps to Managing Change During the Acquisition Process

When a company is acquired, there are a number of behavior patterns which are wise for managers in the company to adopt. They are helpful not only to the smooth integration of the two businesses, but to the individual executives themselves. Adherence to these standards of conduct and rules of action will assist in identifying those managers whose contribution is likely to be of most value to the organization in the long term.

Commonly, managers who ignore, refute or behave counter to these Guidelines are likely to be less successful in the new business combination, both in terms of their own contributions and in terms of the likely development of their future career growth.

These Guidelines are the product of a great deal of practical, first-hand experience, as well as being confirmed by various studies of successful post-acquisition management situations. They include contributions from a number of consultants and authors who specialize in this field.

Managing Change

The whole acquisition process is a management of change process. As a manager, you are already familiar with the fact that all businesses are continually changing to maintain and improve their competitive position and profit performance. Your role as a manager includes the responsibility to initiate change and ensure that changes are managed and implemented in a timely and effective manner. There are likely to be more changes than you are accustomed to. The changes may be more rapid, more extensive, and have a more far-reaching impact than before. In this environment it is appropriate to consider that you have a golden opportunity to use and develop your own skills as an effective manager of change, to provide input to the possible future direction of the business, and to avail yourself of the opportunity to call into question past practices and old decisions which you believe may not have served your company’s interests as effectively as they could have.

Do not be alarmed or despondent if your suggestions are not necessarily well received immediately. The new management themselves need time to make decisions. Well thought-out proposals based on analysis, with a commitment to making demonstrable improvements in results, are usually given serious consideration. Pet projects, bright ideas and other similar distractions will often be ignored or left to the side.

1. BE ACTIVE

One of the most common mistakes managers can make in an acquired company is the attempt to become invisible – to “lie low.” The new management team badly needs people in the company who will actively help them in the integration process and who are willing to show their own commitment to making it work. Volunteers who make a point of showing their willingness to help are usually very welcome, as opposed to managers who adopt a passive role.

2. BE PUBLIC

A manager whose words and deeds clearly demonstrate his personal positive attitude to the acquisition will most certainly influence both his subordinates and his peer group. Instead of joining in the speculative, helpless and passive pursuit of wondering what will happen next, it is far more effective to make positive statements such as “If we work at it, this could be the best thing that ever happened to our company.”

3. BE ACCESSIBLE

This is no time to take a vacation, go to the golf course, or change your work habits. Come in a little earlier; be around as much as possible. You are in control, at work, and a positive force for success of the company. It is important that your are available – to the new management, to your peer group, and to your own subordinates and their employees.

4. BE POSITIVE

You and your colleagues have a job of work to do, and that is still what you are all being paid to do. Remind your people that there are tasks to be accomplished just like before, and that it is in the nature of things that those who stay focused and perform will do better than if they lose concentration, goof off or spend their time daydreaming. It is often helpful to increase performance expectations slightly, to create a little extra positive tension to ensure people are focused on their jobs and have less time than usual for gossip and speculation.

6. JAM THE RUMOR MILL

You can expect that countless rumors about possible changes will surface. It is helpful to ensure you are tapping all the sources you can access, because the more rumors you are aware of, the more effective you can be in stopping or de-emphasizing them. Members of the secretarial staff are often a good source of rumors, because they see executives coming and going, schedule meetings, make phone calls, arrange travel plans and type memos, often without really knowing what is happening.

There are a number of rumor-stalling techniques, which can be used depending on the circumstances.

• Point out that we all have work to do, and re-focus energies on productive activity.

• Make a joke out of the rumor, particularly if it can be reasonably demonstrated to be un-business like.

• Point out that the rumor is not consistent with what the new management has either said or done so far to date.

• Point out that the rumor actually has no personal consequences for the people you are talking with, if you are confident this is the case.

• DO NOT suggest you have knowledge that a rumor is untrue if you do not know – you will only replace the existing rumor with a new, attributable one.

• Point out that the rumor is premature, that the new management has not had time to make these kinds of decisions.

7. CONFIDENTIALITY

The best way to avoid changes becoming known before they should be announced is to be very strict about confidentiality. This means reducing written and phone communications to the minimum, and using off-site meetings wherever practical.

Brief your secretary on the sensitivity of confidential information, ask her to sign a non-disclosure agreement. This can often serve to underline the fact that you are serious and she could be subject to a lawsuit.

8. MOTIVATION

An acquisition creates one of the most unstable and unsettling working environments of any event in corporate life.

This almost always results in “post-merger drift” and “merger syndrome” unless managers act to deal with it. Drift is a pervasive tendency to do nothing very much, to wait and see what happens, avoid decisions, lay low and take no risks. This contributes to a loss of continuity of operations, lower momentum in the marketplace and eventual loss of market share and lower profitability.

However, the discontinuity represented by an acquisition also can make employees more receptive to new ways of doing things, if the manager takes advantage of the situation and does not himself become inert and passive.

Speed is of the essence. “Drift” can start within hours of the announcement, and the longer the organization drifts, the harder it is to change what are becoming new habits and accepted practices.

If you act within hours or days to focus your peoples’ energies on work which needs to get done, you can often be effective in increasing productivity, output and cost effectiveness.

Please understand and believe that all of our experience and research points conclusively to the fact that:

In the absence of specific, timely corrective action by management, performance in the organization will decline after the acquisition.

Doing nothing actually means accepting deteriorating job performance. Accept your responsibility as a manager for the performance of the people who work for you, and focus their energies on even higher standards of performance.

For you to personally sustain your personal level of job performance from the days before the acquisition, you need to redouble your efforts to motivate your people, using whatever techniques have been successful for that group of people in the past.

9. PROCLAMATIONS

It is recommended that you avoid making sweeping statements about the acquisition, even if they are positive. Unless you are fully confident that what your are proclaiming is factually correct, and unless you have been authorized to communicate in this way, it is always a serious risk that later events will turn out to challenge your credibility, or even completely destroy it.

It is always flattering to the ego to appear to be knowledgeable. But it can be very damaging to pretend to be knowledgeable in a changing situation when you are really not. The change process itself makes your pretense less likely to stand up in the bright light of day.

10. COMMITMENTS

A major element of being a competent manager is the ability to make commitments, followed by an ability to live up to them, particularly in your relationship with your subordinates.

In the period following an acquisition, you may become much less clear about how far you can make commitments, and whether you will be able to deliver on commitments you have already made.

Rather than make commitments you may not be able to keep, you should avoid any commitments which are not of critical short-term significance, postpone others, and go back to your own manager for guidance on what you may or may not commit to.

Be particularly sensitive to the importance of the issue for the employee concerned. If it is important enough to be a major distraction from that person’s ability to deliver the required level of job performance, you need to use your resources to try to get a resolution.

11. ORGANIZATIONAL CHANGE

It is highly likely there will be organizational changes, and these are sometimes very extensive.

Your ability to influence any changes will depend not only on how you are perceived in the parent company, but also on your understanding of the new parent, its goals, methods, business objectives and style of decision making. Also, the values and priorities the parent’s managers have in their way of doing business needs to be understood.

It is important for you to get to know the new management personally, and to give them the opportunity to get to know you. Develop an informed view of how they approach the decision-making process, how their values and attitude toward employees compares to your own, and what their management philosophies are.

Remember that they have grown up in their own corporate environment, and they are likely to feel comfortable with it. They will also quite likely believe it is either totally or largely appropriate for your company as well, even if this is a purely judgmental view based on no analysis or understanding of how they may differ.

If you are to be an effective manager of change, you have to understand their perspective, so that differences can be dealt with dispassionately.

If your reaction to their approach to business is uninformed, defensive or reactive, you are unlikely to get much attention. If you have a genuine understanding of their perspective, and the underlying reasons for their approach, you have an opportunity to develop a balance, which can be a great benefit to all concerned.

12. LEAD BY EXAMPLE

Your own personal behavior will be a role model for others in your organization. If you join in a general tendency towards apathy, playing “wait and see,” start coming in late, or decide it’s time to improve your golf game, those around you will tend to follow your example.

Professional managers, who deal with issues, confront problems and manage for results do best in post-acquisition situations, just as they do best under most other business conditions.

To continue to be professional and demonstrably effective is your best course of action, in both the interests of your new employer and your own career growth. In opting to do nothing in an effort to avoid doing wrong, critical mistakes can be made. Register for The Howl a monthly newsletter from CEO Strategist and recieve a complimentary Integration Planning Guide.

Follow My Leader - To Effect Change, Leaders Must Walk the Talk!

A leader’s role

In any change project, a leader must wear many hats, however his/her role can be split into two key areas:

1. Set the strategic direction of the change and;

2. Convince everyone of its importance.

The importance of the first part of this role is generally understood and is for another article on another day, however the second part is often overlooked (or done very badly) and can be of even greater importance.

Where this point is addressed, it is generally done by giving presentations and distributing memos. Although these can be necessary, they are often ignored or just paid lip service if the most important method of communicating the importance of the project is missed – action.

“Do as I say, not as I do!”

Many of us will have heard this line from our parents (some of us just might have been known to use it with our own kids now and again), but can we remember how patronising it felt?

Too often this is the message communicated to employees from senior management during a major change. Employees are expected to attend seminars and workshops (and are sent memos and emails stressing their importance). These may even be preceded by a major presentation from the managing director, stating that everyone must give full support to the project. The senior management then continue to go about their day-to-day jobs as if nothing has changed.

The Managing Director misses a session he was scheduled to attend because he has a meeting with a major client then the Sales Director uses this excuse at the next session, which the Finance Director also misses because he has a meeting with the auditors. In the next round of workshops, there are no salesmen able to attend (they all have meetings with clients), the payroll clerk cannot attend because the wages must be processed and the management accountant makes his excuses because he is under pressure to get the month-end accounts out.

Pretty soon the project is completely off the rails and the managing director is wondering what went wrong. The simple fact is that people follow the examples of their leaders rather than what they are told. When the Managing Director demonstrated that his meeting with a client was more important than the project, this message was picked up by the Sales Director (who also has important meetings with clients), then comes the Finance Director, who is quite sure that his meeting with the auditors is at least as important as any client meeting. This message is then cascaded down to those reporting to these directors, until no-one is attaching any importance to this project.

Perception is reality

Not only must the senior management team give the project the priority it deserves (and that they are telling everyone else that it has), they must go out of their way to be seen to do so. This is often best done by doing something out of character that clearly (and publicly) demonstrates the importance of the project. This may involve such activities as missing a regular golfing trip to attend a workshop session (no-one said it was going to be easy) or coming in on a Saturday morning to attend a session with Saturday staff. The trick is to get people talking in the canteen about how important the management must see this project as, if the managing director is missing his golf/Saturday mornings, etc.

Listen and act

As a project progresses, one of the best ways to demonstrate its importance is to listen to feedback from workshops, etc. and act on it as soon as possible. This demonstrates that the project can really make a difference and that this is everyone’s opportunity to contribute to how the business operates.

If senior management can demonstrate this level of commitment, the project is well on the way to success.

Change Management: Getting Everyone on Board the Change Train

How do you get everyone on board the change train that is gaining speed and heading out of the station? How do you get your people to, not only go through the motions, but also actually “buy into” the changes that are necessary? People’s resistance to change is not entirely irrational; it stems from good and understandable concerns. Here are the six most common reasons people resist change and tactics to convert this resistance to commitment.

Surprise, Surprise!
People are easily shocked by decisions or requests suddenly sprung on them without groundwork or preparation. Managers frequently make this mistake when introducing change. They wait until all the decisions are made and then spring them on unsuspecting employees. However, the first response of people to something totally new and unexpected, not having time to prepare for, is resistance.

Tactic: Give people advance notice. It’s better to know ahead of time of a plant closing or a move to a new location. Then they can have time to adjust their thinking and, most importantly, to begin realistically planning for the changes.

Loss of Control
How people greet change has to do with their perception of whether they are in control of it or not. If people feel out of control, they are more likely to act defensively, either by excess complaining, by dragging their feet or by becoming territorial. Change is exciting, when it’s done by us; threatening, when it’s done to us.

Tactic: Give everyone a chance to participate and get involved in the change effort. Although the decision regarding the specific change has been made, people who are going to be affected by this change can have input on its implementation. They can decide how to re-arrange the office or determine the optimum way to use the new computer system. The more choices that are left to the people, the better they'll feel, and the more committed they will be to the specific change.

Excess Uncertainty
If people don't know what the next step is or where it is going to take them, any change will seem dangerous. It’s like walking off a cliff blindfolded. As one long time employee said to me:

“I know the old Bell system---its mission, its operations, its people, its culture. In that knowledge I had an identity and confidence about my company and myself. Now that I work for a company, one-fourth its former size, I find myself asking: Who am I? Who are we? How is it going to affect me?”

Tactic: Share information about what exactly is happening and at every step of the change process. Furthermore, by dividing a big change into a number of small steps, change will seem less risky and threatening. People can then focus on one step at a time and feel that they are not being asked to leap off the cliff blindfolded.

The Difference Factor
Change requires people to become conscious of, and to question, familiar routines and habits. This is difficult because a great deal of work in organizations is habitual and provides a sense of stability. Imagine what it would be like if, every week you went to work, your office was in an entirely different place and the furniture was rearranged. You would stumble around and need to expend a large amount of physical and emotional energy just trying to constantly adapt. This is what happens to people when they are experiencing too many changes all at once.

Tactic: Minimize or reduce the number of differences introduced by the change, leaving some of the traditions, habits or routines. In other words, maintain some familiar sight and sounds, the things that make people feel comfortable and in control.

Concerns about Future Competence
People have concern about their future ability to be effective after the change: Can I do it? How will I do it? Will I make it under the new conditions? Do I have the skills to operate in a new way? It can be very threatening for many employees to be told that, all of a sudden, the new world demands a new way of thinking and a new set of skills.

Tactic: Make sure people feel competent. Provide sufficient education and training as well as opportunity to practice the new skills or actions without feeling judged. Give them time to get comfortable with new routines or different procedures. Nobody likes to look inadequate, especially people who have been around a long time.

Ripple Effect
Change tends to be perceived by employees as requiring more energy, more time, and probably more work. In fact, change does required, in many instances, above-and-beyond efforts. Change may also disrupt scheduled plans and projects and even personal and family activities. Change sends ripples beyond their intended impact.

Tactic: Provide needed support and compensation for the extra work of change. Acknowledge people for their extra effort; offer days off after the crunch; have a big family celebration after the change. Being sensitive to people’s lives helps them get on and stay on board the change train that’s rumbling through your organization.

Remember, people don’t resist change, they resist being change. The trick is getting people to choose change rather than solely resist it.

Communicating Change Management: Change is the Same as It Always Was

How can management motivate people to listen? By making sure they will benefit from what is said!

A manager during change is like a sea captain, they need to get their ship together.

Change is not the problem; resistance to change is the problem.

The Gallup Institute study of eighty thousand managers and over a million employees’ shows how dramatically employee opinion can affect productivity. And while we can't control much of the world changing around us, we can control how we respond to how employees feel about a changing environment.

When things change, people are afraid they will no longer be experts. They will have to learn the new way, and no one wants to be a senior beginner.

Our studies show that to make change work, we have to prove to our key people that the change means getting results better than (or at least equal to) those achieved the old way, assure them that their experience has value, and then get them to spread that message through the organization.

Resistance management (tactics for systematically managing resistance)

The eight most common beliefs and reasons that people resist change:

1. There isn't any real need for the change.

2. The change is going to make it harder for them to meet their needs.

3. The risks seem to outweigh the benefits.

4. They don't think they have the ability to make the change.

5. They believe the change will fail.

6. Change process is being handled improperly by management.

7. The change is inconsistent with their values.

8. They believe those responsible for the change can't be trusted.

Being prepared for the resistance and making sure your solutions fit the existing culture are the keys to making change work.

It’s important that the new way makes sense at all levels. A solution is not viewed as valuable if it just compensates for a flaw in the system.

What do you get when you cross lassie with a pit-bull? A dog that will rip your leg off and then help you go find it.

What good is that?

Change Management Needs External Focus

Poor managerial performance is viewed more as structural rather than market factors. The mantra of the managements for increasing efficiencies and profitability is more often than not structural adjustments within the organization.

Structural adjustments at best produce short term results. Many of the change initiatives fizzle out after the initial spurt in productivity while management grapple with sagging morale and bottom-line. Managements initiate more change for the sake of keeping the trend going resulting in further worsening of the situation and attritions.

The major Change initiative needs to focus on the market forces and any internal change has to be specific to orienting the organization and its people towards the markets.

Some key factors that need to be addressed for market oriented change initiatives:

Globalization

Globalization has created a new scenario where capacity is no longer the constraining factor for any business. Huge capacities are available across geographical borders across product categories. Managements need to focus on the intangibles such as brand building and human resources rather than building capacities to expand markets. The phenomenal overcapacities available especially in high population countries with cheap labor creates price pressures which makes it detrimental for companies focused on capacity expansion.

Globalization has also created new levels competitiveness where price advantages alone may not be able to create the market advantages. The customer value-benefits vary across the borders. Organizations need to create products which satisfy the diverse needs of global consumers demanding a certain level of ethnic and geographical adaptation to meet local expectations and needs. The products can no longer be uniform and mass produced. Customization to market requirements and even to the level of individual customers is the pre-requisite. Some of the premium car companies have successfully adopted customization to meet customers’ individual needs across the globe and created markets where none existed.

Building Non Core Business

Capacities no more being a constraint the organizations need to build a strong brand and move into unrelated businesses as well to drive revenues and survive in a changing market scenario. If you are focused onto a ‘core business only’ strategy you may be out of business the moment technology changes make your product or market defunct. Building new businesses makes sense for managements who have build competencies in human potential and management resources along with global brands.

With easy access to capital and ability to move capital across international markets, it is very easy to own businesses with core management teams running varied businesses internationally. With change in market factors business may be exited if the management has the competence to forecast market and demand trends.

Creating a Customer focus across business divisions

Half a century back Peter Drucker said Customer is Business. Whether finance or projects every department in your organization must be tuned to the customer and markets. They must be trained to be marketing oriented while performing their specialized functions. Businesses exist solely for the purpose of customer.

The necessity for adapting to relentless change should essentially be a change geared to the external environments rather than internal processes. Internal change can create limited results and cannot be pushed beyond a certain point. On the other hand gearing up change focused on external factors can create a constant and never ending momentum forward for the organization.

Change Management

“It is not the strongest species that survives, nor the most intelligent, but the most responsive to change”. -Charles Darwin

The world today is changing faster than ever before. Technological developments, financial constraints, expanding markets, restructure and mergers, new philosophies and government legislation are all putting pressure on organizations to change. Yet the process of change is far easy from easy, and implementing it successfully makes considerable demands on the managers involved.

In our fast moving, highly competitive global marketplace, change is continuously required, if an organization is to remain competitive. A company can’t remain on the cutting edge by standing still. The key to effective organizational performance lies in the competence and commitment of the people. The clue to effective and successful management lies in understanding the nature of people, their behavior, drives, hopes, fears and expectations, and the circumstances and activities necessary to bring the best act of them. To respect and value people is a basic pre-requisite for effective managing of human resources so organizations have to create the conditions for fostering managements need to create structures and cultures that are positive and organic and develop individuals and groups to their full potential to face emerging challenges.

Kinds of change:

At present scenario basically four kinds of change process is emerging and prevailing in any economy.

1. The first kind of change is the overall change in structures, composition and management of the company because of various mergers and amalgamations taking place in companies. These mergers and amalgamations are of three types. First one is of Vertical mergers, i.e, merger of small organization with a bigger organization. The second one is Horizontal mergers, i.e., similar kinds and strengths coming together to form a big company,. The third is cross mergers, i.e, different types of companies collaborating to capture more market share and size.

2. The second kind of change process begins in an organization when a new product is launched in a market. Further this kind of change is made for two reasons, that is, follow market skimming to earn Goodwill, money and reputation in the market. The second policy is of market penetration just to capture more market share and to expand customers base by lesser price policies.

3. The third aspect of change is incorporated whenever a new leadership is introduced in an organization. This result into major shiftovers from in policy to another which can sometime lead to productive changes and sometime can attract retaliations from the staff members.

4. The technological advancements and latest developments is the fourth major driving force to initiate the change process in any organization, because it can result into major capital expenditures and complete change of existing structures.

Major Preparation for change:

For any organization to incorporate the change it must prepare in advance and follow some of the following mentioned steps to handle Change:

1. To implement any kind of change the first and foremost an important element is that the leaders must be respected and effective in the management so that they are effective enough to enforce the change process easily.

2. Secondly the motivational processes and techniques must be carried in such a planned way and manner that each and every employee must be highly motivated enough to implement the change easily.

3. Thirdly an organization must remove the aspect of Complacency in it. This can be done by

- Generating in formations about organizations situations about current and prospective problems.

- Creating opportunities for employees to educate management about dissatisfaction and problems.

- Creating a dialogue on the data and statistics so collected and generated.

- Setting very high standards and expect people to meet them.

Conclusion: - Change is a complex phenomenon. Whenever an organization imposes new things on people there will be difficulties. Participation, involvement and full communication are the important factors to bring effective change process in an organization.

Managing Change -- Endings Are Just Doorways to New Beginnings

Every May we celebrate Mother’s Day—a time to tell mothers everywhere how much we love and honor them. In the midst of all the holiday revelry we should take some time to reflect on just what this day represents—the end of nine months of waiting and the passage through birth’s doorway to a new beginning.

When I became a mother, this holiday took on a whole new meaning—especially when my daughter graduated from college. Graduation ceremonies at her university were always held on Mother’s Day as a special tribute to the mothers who labored hard right along with each student and who rejoiced to see the ending and new beginnings. I was one of those mothers and 27 years prior to that day, my mother rejoiced on Mother’s Day to see me graduate from the same university.

Yes, Mother’s Day creates happy endings and memories; but endings in and of themselves are not always happy occasions. We live in a world of new things. Endings almost always produce longing and melancholy, and new beginnings engender a powerful combination of joy and trepidation.

What We Don’t Like About Endings

• They are so final. When something ends, a door closes. Things are never the same way they were before the ending.
• They can be heartbreaking. There’s a nostalgia and bitter sweetness associated with endings—a sense of regret for what we have lost even when the ending is a happy one.
• They force us out of our ruts. Endings are so insensitive. They don’t care whether or not we are ready to transition into other things. When something ends, we are forced out of our paradigms, habits and routines.

What We Like About Beginnings

• They are fresh and new. Everyone loves to be refreshed. Each new day welcomes in a host of blessings and new beginnings—at work, home or play.
• They provide new opportunities. If we remain open and alert to them, beginnings can supply brand new and innovative prospects to pursue as well as challenges to overcome.
• They are great Do-Overs. Beginnings give us a chance to correct mistakes, to start over believing that this time we will get it right and succeed.

Endings Are Doorways to New Beginnings

Stop looking at your endings as negative things that happen to you even when they bring pain and stress. Instead, see them as doorways to new beginnings full of blessing, new possibilities and fruitfulness.

The bridge between our endings and new beginnings is like a growth spurt. Every human on the planet experiences a growth spurt every now and then. They don’t stop just because we’re all grown up!

What is a growth spurt and how do you know you’re going through one?

• Growth spurts happen. For adults, they can be short (a matter of days) or last for years (when this happens you think they are going to last forever).
• Some people protest more about them and others seem to sail through them with the greatest of ease.
• The pattern of growth is different for everyone. Some people grow in big spurts followed by periods of little or no growth. A person’s environment can help as well as hinder his or her growth.
• The problem with growth spurts is anticipating their arrival. You never know exactly when they will occur.
• When they occur, you must have patience, understanding and spend a little more time in skill-building, learning and exploring any new opportunities that surface.

Identifying Your Endings, Growth Spurts & New Beginnings

What’s happening in your life right now? Are you going through a growth spurt, and if so, what’s ending for you? Have you identified any new beginnings yet?

All these questions can be answered with a little soul-searching and some effort. Use this simple tool to help in your search:

1. First, list what’s ending for you right now.
2. Next, identify the small to large growth spurts that seem to be hovering around the endings.
3. List any new beginnings you have discovered and put a plan into place to capture additional ones as you continue to evaluate your endings.

A Final Word of Advice

Don't allow growth spurts to rob you of your confidence. Remember, they bridge your endings and new beginnings. Without them, you become stale, lose ground and fail. With them you grow, develop and succeed.

Managing Change - Get it Right

In any event, getting the process right is a vital component. The credibility of the change managers will be scrutinised closely enough on the issue itself, with all processes in place. If process is at fault too, then things can get very messy indeed.

Legalities

Legalities of how you are dealing with people issues must be resolved first and a clear understanding of HR technicalities requires the right level of expertise. Within this are elements of fairness, consistency and honesty. Although subsets of the well-researched HR framework, they save a lot of time, energy and emotion if considered in advance and protocols carefully positioned.

Timescales

Appropriate timescales in changing people issues, will need to be carefully dealt with as part of the HR overview, but it can be easy to slip. A good way to work is using a simple project management process for the whole event, working for as far back as week –12 to week +12 and setting this into a spreadsheet or a Gantt Chart.

Check and Check Again

This will give everyone a clear view of how the process will work and what needs to be done when. Time taken in this planning stage cannot be overdone and the change management team will need to work in a focused way, to deliver a credible plan. Double-check that everything has been thought of, because it probably still won’t have been.

Co-ordination

If multi-site, this all needs to be co-ordinated on a macro level with each site working to the same plan.

Purpose

The point of delivering a coherent and researched plan is not simply for the protection of the organisation. It is much more efficient and enables the organisation to recover more quickly after significant change has happened. Individuals, too, are protected technically and it is possible to have as good as and even better relationships with the individuals concerned, when they are dealt with fairly and openly.

Managing change to involve your people and treat them as well as possible is a doable process. It is the role of management to manage and get it right first time - it's what they are paid for. Then successful outcomes will result and the organisation can move on from a potentially challenging time.