Neglecting to manage change..a poignant article

Dr Andrew M Jones of Lancaster University has published an interesting article in this month's Consulting Times entitled 'Neglect cultural issues at your peril'. Paraphrasing hugely, the article talks about the need to map cultural change aspects to changes in strategy, and indeed that shareholder value is often destroyed where people issues are not dealt with up front.

It surprises me somewhat that there is a need for this type of article in the professional press, and that the enlightenment is still only drifting through amongst leaders of large organisations (see previous posts). Dr Jones quotes Merck's CEO, Dick Clark

“The fact is culture eats strategy for lunch. You can have a good strategy in place, but if you don’t have the culture and enabling systems that allow you to successfully implement that strategy, the culture of theorganisation will defeat the strategy,”

I summarise this a 'people stop change'. You can have a great strategy, all the technology and cash that you could ever wish for, but if you don't manage your stakeholders you are setting yourself up to fail.

Let's think about a mythical organisation that has a new strategy for world domination. What could go wrong? Here's a short list;

• top managers don't understand the strategy, or indeed buy into it - they carry on working as before;
• clerical people didn't understand the previous strategy (any of them?), and don't understand this one or care - they carry on working as before;
• middle managers (the 'nougat' layer) don't worry about strategy, they just need to maintain their bonuses by turning out widgets - they carry on working as before;
• and so on.

People stop change - you cannot avoid addressing these people issues as a fundamental part of whatever your strategic change is - otherwise there is a real risk that nothing will change, or if it does it won't endure. Culture is a difficult thing to change overnight of course, and a huge amount of planning and execution effort needs to be applied, starting at the same point that the consultants come in to help you map out your change plans.