Tech Management - Communicating Change

In times of change -- which these days means pretty much always -- the leader's role calls for imparting clear, informative communications. Unfortunately, say experts Ron Arden and Paul Batz, not all CEOs come equipped with built-in communications skills. Some know what to say and how to say it purely by instinct; most have to learn. Others resist counseling and assistance, thinking it's enough for them alone to know what's happening in the company. They generally leave the communication side of things to other people.
"This attitude can be a major disadvantage these days," Arden says. "For all organizations, it's become an absolute necessity for the leader to communicate effectively with anyone who has a stake in their company, whether they be staff, shareholders, clients, the board or potential investors. When things are changing, staff needs information and motivation to keep up, to know what's going on, to meet changing objectives, to make decisions that will ultimately affect the bottom line and the well-being of the organization."
"A chief executive needs to make change personal because it's personal to the people who are being asked to change," Batz notes. He cites the example of one CEO's efforts to alter an organizational culture from production to performance.
"Until this time, employees had focused primarily on their specific duties, with little regard for the big picture. Now, just because the CEO was talking 'performance,' they didn't really get the need to set new goals beyond their usual boundaries."
True change occurred only after this CEO explained that he'd be leaving in a few years and wanted to make sure that the business endured. Once he provided a context for change, employees were much more inclined to listen.
Context is crucial, say the Vistage communications experts. Regardless of the project or initiative, it's vital to address the broader elements needed to achieve success, including:
• What are the reasons behind our proposed change?
• What are our goals?
• Who does the change affect?
• What are the likely repercussions of change throughout the organization?
• How will we all benefit from change?
At the same time, the leader has to convey his or her own stake in the change initiative. This includes making such statements as:
• "I'm personally committed to seeing this project through to completion."
• "I understand that these proposed changes may have a negative impact on people."
• "I welcome an open discussion about how you feel regarding this change project."
• "I hope you'll feel free to share your ideas and suggestions about how to make it work."
"Change is always based on market forces and customer realities," Batz says. "So when employees are asked to change their personal and group behaviors to accommodate these realities, the message has to provide enough information to make the change tangible at all levels in the company."
Arden adds: "Remember, it's not just the message of change you're trying to get across. You also need to let people see how you feel about change -- your optimism and the strength of your convictions about the path the organization has embarked upon. Employees listen to what you say but they watch you, too. They draw their own conclusions based on what they observe."
Even when change is affecting the company adversely, to get employees to face the situation along with you calls for the right kind of communication.
"It's a fact that, generally, the CEO's priorities are very different from their employees," Arden notes. "The average employee cares less about the company's bottom line and more about their own bottom line -- primarily, job security. The dominant motivator for them is to tune into their favorite radio station, WIIFM (What's In It For Me)."
People dragged into change do so kicking and screaming. Why? Change equals uncertainty. "The trick is not to hide this fact but to acknowledge its scariness and point out the potential rewards if people come along with you. Obstacles, mid-course adjustments, uncertainty -- all of these are part of any significant change effort."
For this reason, Arden adds, being honest and caring is the best approach. "If you as the leader acknowledge all of this, you're doing no more than telling the truth. Make it clear to employees that this is a normal part of all change. The message, 'Hold on, it's going to be a bumpy but exciting ride,' will alleviate some of the pressure and ease the tensions of uncertainty."
The goal is always reducing ambiguity and uncertainty. "Think of communication as a pre-emptive strike against rumor and gossip," Batz says. "By sharing truthful information -- in a complete and timely manner -- you diminish the hurtful effects of the grapevine." And make no mistake about it: your company has a grapevine. Every company does.