(Published in Manila Standard Today under the Greenlight Column, April 18, 2011)
A local bank recently invited me to deliver a talk to its senior executives about managing change and transitions. This is opportune time for the bank as it is undergoing changes and its attendant transition in areas of strategy and organizational structure changes.
My talk centered on how to manage transitions in particular as opposed to managing change. There is a distinct difference. Change is situational, an event. It happens when something starts or stops. Transition is psychological. It’s a psychological process that a person goes through to detach from his/her old identity and become directed to a new one. Transition takes longer than changes, and this is where the complication comes in – the roller coaster ride of emotions involved among those affected by the change. These are the wisdom behind the seminal book of William Bridges, “Managing Transitions”.
It was an interesting talk because I related my experience as a senior executive and chief executive of a company in leading and managing change and transitions. Our organizations initiate planned and unplanned changes in response to the ever changing environment.
In fact, in the 2010 CEO Study conducted by IBM on a global scale, eight out of ten CEOs expect high to very high levels of complexity in the business environment over the next vive years, and less than half feel prepared to handle it. There is a glaring 30% “complexity gap” that CEOs are confronted with such as entry of new competition, war for talent, and changing customer tastes. Hence, CEOs implement more changes such as structures and policies for quick decision making, improvements in customer intimacy and insight, and simplification of products and processes.
These changes oftentimes result to changes in strategies, structures, and policies. Employees likewise face changes in forms of reorganizations, a change in role or promotion or change in boss. Organizations and people in transition follow three phases as outlined in the framework of Bridges.
The First Phase
Whereas change is usually situational and focused on a new state or objective, transitions begin with letting go of the old ways of doing things and leaving the comfort zone. For example, employees affected by a change in structure may find them selves doing a different role or doing other tasks.
Letting go of the old ways is difficult and may entail casting out old beliefs and assumptions. The task of a manager is to help people deal with the employees tangible and intangible losses and mentally prepare them to move on. This can be achieved by compensating for the possible losses to people, giving information repeatedly, and showing how endings ensure the continuity of what really matters.
The Second Phase
This phase is the most critical phase as its management will determine the progression to the next. This is an uncomfortable place where people go through psychological adjustments. This is when anxiety rises and motivation falls among employees; where productivity suffers and old weaknesses reemerge with a vengeance; where the organization is vulnerable to attack from the outside and sabotage within.
This is when managers help get employees get through it, and capitalizing on all the confusion by encouraging them to be innovators. This is the phase where communication is key. The manager should strengthen the channels of communication and relationships.
The Third Phase
Finally, after the journey through the tumultuous stage, a rebirth happens. This manifests itself through noticeable changes in people’s behavior and attitudes towards work and the change that’s taking place.
The role of the manager is to help people develop the new sense of identity, experience renewed energy, and discover the new sense of purpose that make employees reenergized to work anew. Managers capitalize by communicating the vision and goals of the company. This is also the phase where managers identify resources, and provide knowledge and skill training,. To build self esteem and confidence among employees, managers should identify and celebrate small successes.
For managers to achieve the desired outcome of the change program, they must progress through all the three phases. Some transitions may be fast taking only months while others will take years. But what’s key is being aware of the phases, being conscious of the actions that needs to be taken, and being sensitive of the progressions from one phase to another.
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Reynaldo C. Lugtu Jr. teaches strategy, management and marketing courses in the MBA Program of De La Salle University, Graduate School of Business. He may be e-mailed at rlugtu2002@yahoo.com, or visit his blog at http://rlugtu.blogspot.com.
A local bank recently invited me to deliver a talk to its senior executives about managing change and transitions. This is opportune time for the bank as it is undergoing changes and its attendant transition in areas of strategy and organizational structure changes.
My talk centered on how to manage transitions in particular as opposed to managing change. There is a distinct difference. Change is situational, an event. It happens when something starts or stops. Transition is psychological. It’s a psychological process that a person goes through to detach from his/her old identity and become directed to a new one. Transition takes longer than changes, and this is where the complication comes in – the roller coaster ride of emotions involved among those affected by the change. These are the wisdom behind the seminal book of William Bridges, “Managing Transitions”.
It was an interesting talk because I related my experience as a senior executive and chief executive of a company in leading and managing change and transitions. Our organizations initiate planned and unplanned changes in response to the ever changing environment.
In fact, in the 2010 CEO Study conducted by IBM on a global scale, eight out of ten CEOs expect high to very high levels of complexity in the business environment over the next vive years, and less than half feel prepared to handle it. There is a glaring 30% “complexity gap” that CEOs are confronted with such as entry of new competition, war for talent, and changing customer tastes. Hence, CEOs implement more changes such as structures and policies for quick decision making, improvements in customer intimacy and insight, and simplification of products and processes.
These changes oftentimes result to changes in strategies, structures, and policies. Employees likewise face changes in forms of reorganizations, a change in role or promotion or change in boss. Organizations and people in transition follow three phases as outlined in the framework of Bridges.
The First Phase
Whereas change is usually situational and focused on a new state or objective, transitions begin with letting go of the old ways of doing things and leaving the comfort zone. For example, employees affected by a change in structure may find them selves doing a different role or doing other tasks.
Letting go of the old ways is difficult and may entail casting out old beliefs and assumptions. The task of a manager is to help people deal with the employees tangible and intangible losses and mentally prepare them to move on. This can be achieved by compensating for the possible losses to people, giving information repeatedly, and showing how endings ensure the continuity of what really matters.
The Second Phase
This phase is the most critical phase as its management will determine the progression to the next. This is an uncomfortable place where people go through psychological adjustments. This is when anxiety rises and motivation falls among employees; where productivity suffers and old weaknesses reemerge with a vengeance; where the organization is vulnerable to attack from the outside and sabotage within.
This is when managers help get employees get through it, and capitalizing on all the confusion by encouraging them to be innovators. This is the phase where communication is key. The manager should strengthen the channels of communication and relationships.
The Third Phase
Finally, after the journey through the tumultuous stage, a rebirth happens. This manifests itself through noticeable changes in people’s behavior and attitudes towards work and the change that’s taking place.
The role of the manager is to help people develop the new sense of identity, experience renewed energy, and discover the new sense of purpose that make employees reenergized to work anew. Managers capitalize by communicating the vision and goals of the company. This is also the phase where managers identify resources, and provide knowledge and skill training,. To build self esteem and confidence among employees, managers should identify and celebrate small successes.
For managers to achieve the desired outcome of the change program, they must progress through all the three phases. Some transitions may be fast taking only months while others will take years. But what’s key is being aware of the phases, being conscious of the actions that needs to be taken, and being sensitive of the progressions from one phase to another.
-------------------------------
Reynaldo C. Lugtu Jr. teaches strategy, management and marketing courses in the MBA Program of De La Salle University, Graduate School of Business. He may be e-mailed at rlugtu2002@yahoo.com, or visit his blog at http://rlugtu.blogspot.com.
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