Change Is Hard – But This CEO And President Reveals How It Helped Him Build A Strong Business And A Strong Team
The views expressed by the business participants are their own.
Over the past year, our company has evolved significantly, expanding our services and integrating new internal systems. It was a time of retraining and adaptation.
Initiating a major change in business used to happen once every five or ten years, but with advances in artificial intelligence coupled with economic uncertainty and the digital revolution, businesses must pivot and adapt more often. Global spending on digital transformation is expected to reach $3.4 trillion by 2026, and 64% of organizations report that they need to create new digital businesses to remain competitive in 2024 and beyond.
We often hear entrepreneurs and business leaders talk about working “on the business” rather than “within” the business but understanding your company from the ground up has significant benefits. Today, I am the president and CEO of my company, but throughout my career, I have worked in every area of my field, from warehouse to truck driving. Here’s how it gave me valuable insight when it comes to managing change.
Related: 3 Ways Change Leaders Prevent, Reduce and Manage (or Create) Resistance to Change
Seek to understand the workflow before tthe ransform
Earlier in my career, I worked for a company that hired outside experts to restructure its operations to comply with new tax laws. More than 75% of its employees at that time were front-line workers, and unfortunately, they were not consulted in the process.
When the time came for the introduction of the new framework, to say that the performance was chaotic, is an understatement. Overruns led to significant storage costs and operational problems that caused projects to go awry and worker conditions to deteriorate. Ultimately, the lack of internal consultation cost the company a lot of money and pain.
When it comes to implementing any major change, it’s important to involve the people who work at the front of your business. According to Beekeeper, front-line workers often face a lack of communication with leadership, with 23% feeling that they are included in change-related decisions. This exclusion fuels friction and compromise, as 74% of employees believe leaders need to understand why people resist change in order to foster collaboration.
By truly understanding the day-to-day responsibilities of your front-line employees and understanding how change will affect them, you are more likely to gain more input and internal advocacy and make the necessary changes to the system.
I’ve seen many businesses make the critical mistake of pushing change from the top down rather than communicating with their teams to get feedback on important decisions. In these cases, it almost always leads to employee and customer turnover, which has a growing impact on culture and ethics.
Related: Rapid Business Expansion Can Be a Good Thing – But It Comes with Challenges. Here’s How To Make This Growth Continue.
Your top employees drive your bottom line
More often than not, making a change in business is an attempt to improve profit margins. However, often, company leaders fail to understand how much of their bottom line is driven by entry-level employees. For example, the high turnover of entry-level employees is reported to cost Amazon $8 billion a year.
To successfully implement change, it is important to have representatives from all departments in your organization involved in the discussions. This should not be limited to team leaders and managers; Equally important is the representation of the frontline staff involved.
Among this mix, I personally like to include naysayers—group members known to influence culture and not always in a positive way. This serves two purposes: the first is that sometimes the critics have an important answer that other members of the group like to voice. The second is that if you can’t convince a vocal person that change is good, they are often your best internal advocate.
Double down on education and training
I remember a time when we promoted a top employee to a leadership role. He was not the best person for this position. In fact, he started his career very critical of our performance, especially in other departments.
Ultimately, what earned him a promotion was the leadership skills he developed through education and management training. He accepted training and ended up championing the departments he once criticized, committing himself to helping them improve and do things better.
When we educate and train our teams on how to embrace and embrace change, we create powerful leaders. Research shows that employees who receive the right training are more likely to stay with the company, which has a direct impact on the bottom line through reduced revenue and increased productivity.
This is true at any level. Whenever we hold on-the-job training, even if I’ve been through it, I try to make it clear that I’m there. As leaders, we are often removed from what we ask of our teams. Attending company training can be a great reminder. It also shows your team that you’re not above learning and that you’re dealing with change, too.
Change is hard. But when we develop the skills of preparation and practice, we can build strong businesses with strong teams. To do this effectively, it is important for leaders to communicate with team members at all levels. Insights and insights gained from consulting with frontline employees are often what make or break a company.
Source link
