Stages of Change Can Be Challenging

The only constant in life is change. And it’s so true! Every project you take on, regardless of size or scope, creates a change in the status quo. That kicks off several stages of change that result in a series of predictable emotions and behaviors.

We talk a great deal about change in our practice. Sometimes they’re easy changes, ones you look forward to, such as getting a promotion or moving into a new job at another company. But you still go through all the stages of change similar to the Kübler-Ross Stages of Grief – shock/loss, denial, bargaining/acceptance, sadness/depression (the hang-in point), and finally acceptance and even excitement about the new reality.

Stages of Change Have Predictable Behaviors

Think about the change of moving into a new, challenging job. You go through a sense of loss because you lose your colleagues in the department or company you’re leaving. You may experience a little denial, telling yourself it’s time to move on and you won’t miss your colleagues. You may experience sadness about the memories and friends you left behind. Then you accept the reality of the change – you’re moving on, it’s a little scary because you don’t know what to expect in the new position. You’ll be meeting new people and having to figure out how to work together. If it’s a new management position, you have the challenge of learning how to delegate and manage others. Then as you think about the challenges ahead, you begin to see the possibilities and start focusing on the new challenges you’re taking on. And finally, as you adjust to the new position and get to know your team and your colleagues, you begin to feel excitement and passion for taking on the challenges and helping the organization move forward.

Depending on your circumstances, you can go through these emotions quickly, in a matter of minutes or hours, or it may take days for you to cycle through the stages of change. If the new position is something you pursued, you’ll likely move through the stages of change quickly. If it’s something that happened to you and not one you actively sought, then the adjustment could take longer – even weeks or months.

Frequently, especially when people aren’t involved in creating the change and instead are just told about it, a few will never adjust. They can move between the states of depression and anger for months or longer (the hang-in point), unless the manager is skilled at either coaching them through the emotions or invites them to find alternative employment. Sometimes, the people remove themselves to find other employment options more suited to them. Either way, the organization suffers if these individuals are allowed to remain in a state of anger or depression. They can turn a positive environment into a negative one, putting a blanket of confusion, doubt and concern on the change process.

As a leader it’s important to recognize where your people are in each of the stages of change and coach them through their emotions. Your goal is to get as many of them to the other side of the emotional roller coaster as soon as possible, and to quickly remove those who just can’t get on board.

If you need help with this process, let us know. We have many resources available to help you coach your team through the stages of change.

The CFO Role – Cost Control or Value Added?

By Eric A. Denniston, Managing Director, Denner Group International

There are some interesting future trends to be tracking regarding the the CFO ROLE and the business domain he/she leads. Technology and in particular shared technology is one of the key drivers in how their role will be changing over the next ten years.

cross fuinctional teamsShared data and cross-functional training give employees and their teams more real-time access to data and the acumen to use the information, they can assess the financial impact themselves, instead of relying on finance to do it for them. The consulting group, Accenture, estimates that by 2020, “more than 80% of traditional finance services will be delivered by cross-functional teams.

Traditional communications and control centers are becoming more nimble and responsive. They are consolidating previously separate in-house financial reporting services such as compliance, treasury and investor relations. This is resulting in task-specific professionals being able to better focus on optimizing their areas of responsibility in support of their company’s strategies.

How is your business reacting to these changing trends? Is your CFO more involved in creating and driving strategy? Are new technological and cross-functional training tools being deployed to stay ahead of the competition? Have your systems become too complex, creating new “siloed” systems? Does your CFO understand how to deliver strategic initiatives through project and program management? Does your organization have the core competencies to transition from transaction-based activities to value-added tasks?

All of this implies a shift to finance teams being more involved in planning and analysis with more advanced digital platforms. A key outcome is reduced complexity, increased productivity and reduced costs.

The strategic impact of these trends significantly affect long-term growth and viability for all types of organizations. As you consider how you might address the challenges of these trends, one valuable solution is to evaluate your organization’s competencies to address these challenges and take steps to improve skill sets, create strong cross-functional capabilities and deploy the needed technological tools.

For further details on this topic you can click here to read an article in CFO magazine.

Digital tools modernize change management

Our line of work in creating strategic plans, coaching executives and managers through implementation, and change management in their organizations is constantly under pressure. there is an ever-present desire to find ways to simplify how it’s done, and shorten the time frame in achieving measurable results.

Business leaders resist the amount of work and time typically devoted to creating and updating strategic plans. The increasing pace of change in our business environment throws monkey wrenches into our well-laid plans. Yes, we are always seeking that silver bullet that will magically keep our plans on track, shorten the time frame to success, and basically keep everyone happy and productive.

Intuitively I know no such silver bullet exists, but in my own continual search for it, I occasionally come across a nugget, not a bullet, like this one that might actually help me and my clients.

An article from McKinsey by Boris Ewenstein, Wesley, Smith and Ashvin Sologar titled Changing Change Management, provides a compelling insight about one strategic element common to some recent successful change efforts.

Two clear challenges

The McKinsey article’s sub-title mentions two clearly visible issues or challenges for implementing change:
1) “Research tells us that most change efforts fail.”
2) “Yet change methodologies are stuck in a pre-digital era.”

The article’s main premise is that our traditional approach to change management is outdated and that using digital tools is the key to modernizing that approach. Aha! I say. While digital tools are not a new nugget for me, I did reap some new insights on the approaches to implementing those tools for more effective change management.

It has not occurred overnight but we have seen global companies that are now clear industry leaders disrupting their industries, experiencing astronomical growth and generally, success. Amazon, Uber and Facebook come to mind as examples of those who have employed digital tools to create their footprint in the world of business.

The McKinsey article mentions some of the digital tools many companies have employed and all have one thread in common. It is the result of closer, more rapid communication with their customers primarily and their other stakeholders as well. All brought about by the use of digital tools. That communication is now rich with data, tons of data, and not just junk data. Useful data that drives better, faster and more focused responses to fix problems and leverage successes.

Out with the old?

Does this mean we toss out our traditional methods and approaches for planning and executing change initiatives? I say no. We still need the training, practice, and discipline involved in the planning retreats, applying the best practices we can uncover for leading and managing people and for ensuring sustained continuous improvement in everything we do. Only now we must apply these digital tools to accomplish that faster, better and create more lasting change in our organizations.

I know I can’t tackle rewiring my home’s electrical system on my own without training in basic and advanced principles and practices. But, possibly, I can get that training faster with digital training tools. However, the practice is essential to prevent a disaster to myself or others, so a wise move would be to apprentice the work. Likewise, I know a business can’t avoid the work required to create long term plans and deliberately create the processes and systems to support the resulting change initiatives. They can only enhance the speed of achieving results and sustaining those results with the digital tools mentioned in the McKinsey article.

In our business, we are using more and more digitally-based communications with our clients, such as webinars, online courses, feedback resources, and more regular communication. We are still working on finding more effective touch points that are not intrusive. These all involve changes in practices and the culture of our business, just as it does for everyone else.