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1/25/2008 12:31:00 PM

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Three factors drive a company's ability to change

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For managers and owners, the primary reason for being is to drive positive change, or results, for their business, such as increased sales volume, improved margins and profit, improved inventory turnover and cash flow.

With that in mind, owners and managers must be mindful of three key change-effectiveness drivers:
1) Dissatisfaction with the current state
If people are content, happy and enjoying low stress levels, they are going to have a relatively hard time getting lathered up about some kind of significant change. Basically, people need to be dissatisfied to willingly embrace change.
One way to raise the level of dissatisfaction is to raise the level of expectations. With a new, higher level of expectation, the old solutions, the old systems, perhaps even the old human resources, just don't cut it anymore.
People work harder and absorb higher stress levels in an attempt to meet the new, higher expectations, then fall short and become increasingly dissatisfied with the current state. As the level of dissatisfaction increases, the organization becomes more ready for change.

2) Solution quality:
You, of course, want to craft an effective solution or strategy to cause the positive change you are attempting to drive. Don't think that you have to think it up all on your own. Involve your people. In fact, the more you involve them the greater buy-in you will get.

3) Implementation effectiveness:
Effective implementation -- getting it done -- of significant positive change generally requires you to:
  • Identify the critical steps. What are the key actions, who is responsible for getting them done and in what specific order, if any, must they happen?
  • Establish a budget and schedule. A budget can mean money, but it also can mean hours. If you are doing something significant, you likely are drawing on the available time of some of your best people. This can, and likely will, impact your day-to-day operations.
  • Determine measures (metrics). You need to be alerted to issues or problems as they occur. Attempt to identify measures that you can use to assess progress. You are far better off addressing an issue when it is still just budding.
  • Review and recycle. If what you are doing is important to the future of your business, the status of the project should be reviewed at least weekly. There also may be times when a quick review every couple of days is prudent. Involve the key players. If things aren't going as they should, recycle the project plan.
  • Establish good communications. The quality of your communications will have a major bearing on the outcome of your project. Think of your communications as the project's lubricant. If your project engine is well-lubricated it will likely run fine. If not, it may overheat and seize up. You don't want that.

Mike Hulser
Source: The Biz MD
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