Change

There is no way to for any organization to be successful at the Value Creation process in an ever changing world without developing basic levels of competency in personal and organizational change.

While most change management models are similar or have a lot of things in common, very few companies commit to having change management an imbedded component or capacity of their management system. Many fail to recognize that it may be one of the most critical competencies for leaders to have as they lead and motivate their organizations while facing significant levels of uncertainty.

One almost universal message that is profound in nature and applies to every large scale change (or indeed even individual personal change) is the fact that the change can never be complete until the sabotage occurs. This is one of the last big hurdles that occurs as momentum builds for a change and is the mechanism whereby the organization tests the will and commitment of the leaders.

In an attempt to demystify the concept of change management, we developed what we call a reverse diagnostic tool. Using this tool, one can describe certain undesirable conditions or outcomes associated with a change, and then backtrack to determine which change step was missed which then can provide guidance on where to focus any remedies.

In their quest for Value Creation early stage companies generally go after aggressive growth organically and embark in massive levels of decentralization. This pushes decision making out into the field and as margins are generally higher in new industries lots of waste is created, but is never really addressed until a slow down occurs. Then  as industries mature and growth slows, a large number of multinationals pursue growth through acquisition. During that process the resultant larger enterprise then has to face the challenges of integration which invariably involve committing to extracting synergies and pursuing the systematic elimination of duplicative resources.

This explains an often unrecognized pattern/cycle of centralization-decentralization-centralization-decentralization. This process is explained in the short video below and every one of these cycles represent MASSIVE levels of change which can often be traumatic for many companies.

Just like most things in life, the first step to being able to apply some intelligent responses to troubling situations, is by first of all BEING ABLE TO SEE or recognize what is happening at a very high level. The problem in most companies is that the people that think differently, and that ask different and often challenging questions, are often not valued. Strong leaders that have the highest likelihood of delivering superior value creation (i.e the 12% club of leaders that do), generally surround themselves with people that can see things differently and can intelligently and professionally challenge the status quo but do so with value creation oriented solutions that are fair, balanced and easily explained to all stakeholders.

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