STOCKHOLM, Sweden—You’ve heard or been taught all the theories when it comes to managing change in an organization, but how do you successfully put the theories into practice? One person is sharing some strategies.
In the city that is home to the Nobel Prize, Heather McKissick, president and CEO of CUES, began her remarks before a session at the World Credit Union Conference in Stockholm with a quote from Nobel Prize winner Albert Einstein: ‘Intelligence is the ability to adapt to change.”
That doesn’t mean it is easy. But it also doesn’t require leaders to be Einsteins when it comes to understanding how to lead organizational change from theory to practice, which was the theme of McKissick’s remarks.
“We can be intelligent and think all day about change theory, but what about the practice of change? These days, there is no stopping the change,” McKissick said.
Two Kinds of Courage
She said credit union leaders need to have two kinds of courage:
- Courage to change
- Courage to stay the same.
“We have to have the courage to change because how we and financial services dobusiness is changing,” she explained. “Credit unions sometimes are not famous for changing quickly. The reason: because we know why we are in this business, and the thing we don’t want to change is why we are here. We want to change the how, but we want to stay the same when it comes to the mission, the people, and the values of the cooperative movement.”
Organizational Frame
When it comes to change strategy, McKissick shared this organizational frame of reference:
- What are we doing and why?
- How does the change related to our strategy?
- Why will we be more competitive?
- Does the change make sense?
- Is management really committed?
- What is the change plan? Is it doable?
- Is it being done fairly?
“We begin with strategy and then proceed through process, structure, jobs, measurement, and then rewards,” McKissick said of the path to change within organizations.
Jumping Ahead, Falling Behind
And yet most organizational leaders jump from point one (strategy) to point five (measurement), she explained. And skipping over the other steps also skips over a factor that is seldom considered in managing change, McKissick stated.
“The number-one mistake we make as strategic leaders as we embark on strategic leadership has to do with the individual frame of reference,” she explained. “Individuals assess change personally. Is your organization made up of boxes and jobs? Your organization is made up of people. People process change very differently from the ways organizations implement it. They want to know what are we doing and why.”
Individual Change Curve
McKissick said the individual change curve includes all these stops:
- Awareness of the Issue. “Too many organizations give too much information. There’s a difference between awareness and knowledge,” she said. “Awareness is the gentle glide; it’s how you signal to people that change is coming. You might want to first discuss pain points or give them a preview. Awareness is always the precursor to knowledge. It’s important from an absorption point of view.”
- Knowledge of the Efforts. “We think we’re doing the right thing by dropping all the knowledge. And people are immediately inundated. That’s not the only change happening to people. So, make them aware and then drop the knowledge.”
- Trial Run of the Solution
- Evaluation of the Results. McKissick called the Trial Run of the Solution and the Evaluation of the Results the “check out zone,” where people check out of the change. But that can be addressed by letting people test it and evaluate the change, which can raise the likelihood of getting to acceptance 80%, according to McKissick. “The check-out zone is where most of our employees live on a day-to-day basis.”
- Acceptance of the Change.
“With organizational change and individual change the challenge to leaders is to bring both together,” she said.
The Check-Out Zone
When it comes to that “check-out zone,” McKissick offered this “practical path” forward.
“Who in our organization is currently stuck in uncertainty or skepticism about the change? It doesn’t mean they are a barrier,” she said. “But look for people whose roles, whose routines are disrupted or who have expressed doubts. They may be in the ‘trial’ phase. The way to engage people in that trial phase is to ask them.”
McKissick recommended leaders identify the top five people in an organization who see the vision and who can express it on behalf of the leader. “Those same five people you most trust are most likely also trusted by the rest of the organization. Look for people who shape the norms.”
What could help people test the change in a low-risk way? McKissick suggested pilot programs, “practice” environments, peer mentoring, early coaching and more to build confidence.
The Seven Lessons of Change
McKissick shared these seven lessons related to managing change.
- People will feel awkward, ill at ease and self-conscious. “Where have you seen people hesitate or pull back during a recent change? Think about silence in meetings and avoidance behaviors.”
- People initially focus on what they have to give up. “People equate change with loss. It could be control, familiarity, influence or even relationships.”
- People can only handle so much change at once. “How might other changes in your organization be competing with this one. Consider staffing changes, systems upgrades, or strategic shifts that overlap in timing,” McKissick said.
- People are at different levels of readiness for change. “Who on your team is leaning in, and who is lagging behind? Use your observations in meetings or team dynamics to spot the early adopters vs. the reluctant ones. Sometimes you have a leader who is at the back of the line.”
- People will be concerned there aren’t enough resources. This is “We can’t do this because…’” McKissick stated. “There are always more resources than we think there are, but sometimes people need help. Look for concerns about time, support, training or competing priorities.”
- If you take the pressure off, people will always and naturally revert. We are hardwired for habit.“Where might your team be quietly slipping back into old habits. Thinka bout outdated forms, workarounds or ‘this is how we’ve always done it’ behaviors. The goal is to make the new way easier than the old way. Consider removing barriers, simplifying steps or making the ‘right way; the default option.”
What happens when organizations are not aligned? Initiatives go into the black hole, McKissick said.
The Key Takeaways
McKissick shared these key takeaways:
- Change is both strategic and human
- Resistance is norma and roles must be clear
- Communication is the bridge between the vision and the action.
