Why Corporate Change Programs Fail
Why Corporate Change Programs Fail
"In corporate change, unfortunately, consultants sometimes conspire with their clients to chase symptoms instead of underlying problems."
Theories X, Y, and Z. MBO. Grid Management. Situational Leadership. T-groups. Excellence. TQM. Team building. Re-engineering. Empowerment. Diversity. The Seven Habits. You have probably heard of at least one of these programs for business and corporate change. Like insatiable lovers, corporations can journey from one program to another, sometimes not even pausing to take an organizational breath.
An outsider might expect that the decision to start such programs is based on considerable research, contemplation, or at the very least familiarity. But here's an example of how it can--and often does--happen. A CEO, on the way to Boston, reads an airline magazine article on a new program to raise morale. Let's call it Program X. Disney and Microsoft and a boardroom full of technology execs rave about it. He (and it's usually a he that makes this mistake) goes back to his company, calls a staff meeting, and says, "We all want better morale (this is a nice way saying morale now stinks). I've been reading on the plane about Program X that Disney and Microsoft do. I just bought the book (passes out copies to everyone) and I think Program X would work here." VP heads nod, hoping that this too will pass quickly and not linger, as one of the characters in Dilbert says, "like the stench of a dead woodchuck under the porch."
All is quiet for a while, but the CEO is still in lust, and two months later, consultants knowledgeable in Program X show up ready to work everyone up into an frenzy. This can feel wonderfully torrid at first, with high expectations and lots of fanfare. But as energy decreases, productivity goes up in some places but down overall, and people get discouraged, the CEO's interest wanders and the program loses steam.
Then the company sees the CEO: closing down the program, part by part, all for "good" reasons-which, ironically, rationalize the enormous amount of time and money spent on the program; blaming, to deflect responsibility for picking the damn thing to begin with; deflecting corporate attention away from internal problems by acquiring a company or being acquired; and having selective amnesia, to deflect anything that's left.
The affair is over. A few months pass of blissful quiet, and then a new sexy program winks at the CEO on the plane from Las Vegas, and the cycle repeats. Oh, and by the way, company morale is even lower than before.
Most all change methods are effective. For the most part, each one is theoretically sound, well-researched, and clearly articulated. There are well-regarded authors, speakers, trainers, and consultants who bring extraordinary credibility to each program, and their success stories cite dramatic increases in profits through recipes for workplace satisfaction and productivity. But when they're put in organizations, they fail-at least 70 to 80% of the time.
Why? Many CEO's like to decide fast and in a big way, and as a group they routinely choose programs without a clear understanding of the root causes within their organizations. Programs should not be undertaken without a solid understanding of "what's true now." No CEO would go into a doctor and say "Doc, I've heard that triple-bypass heart surgery is a really cool procedure. Lots of my friends have had it done-can you do it tomorrow?" They would want the doctor to make sure the procedure was called for, to test, to ask the right questions. Otherwise, there is enormous and needless worry, time, and money (not to mention damage to a perfectly good heart) when the real problem is heartburn from last night's pizza.
In corporate change, unfortunately, consultants sometimes conspire with their clients to chase symptoms instead of underlying problems. I can recall with great shame years ago when I agreed to do the equivalent of triple-bypass for a client. I didn't ask many questions. I chose to grab the large fee and run, and although the client was pleased, we both knew the work was not really useful. Now I insist that we diagnose together before choosing any program. Over the years, this saves hours of needless consulting. Sometimes we discover they don't need a program at all, just a little fine-tuning.
When I work with a company, I believe 80-90% of the wisdom and expertise needed already exists within. I bring considerable experience and expertise to the table, but a large part of my role is to draw that out and have people feel it is "theirs"-then do it. Many organizations spend endless hours and money putting together the "best" plan only to have that plan put on the bookshelf or the trash can. Too often clients (and their consultants, to be honest) expand too quickly and consider the downsides of such expansion too late. The best plan is the plan an organization will actually do-one in which they build the necessary capacity and where the changes are sustainable. It is more important to help people grow sanely than quickly. The belief that there's no such thing as too much growth has killed hundreds of companies, careers, marriages, and dreams.
Why Corporate Change Programs Fail - To learn more about this author, visit George Smart's Website.
Like this article? Share it with your friends
by George Smart
"In corporate change, unfortunately, consultants sometimes conspire with their clients to chase symptoms instead of underlying problems."
Theories X, Y, and Z. MBO. Grid Management. Situational Leadership. T-groups. Excellence. TQM. Team building. Re-engineering. Empowerment. Diversity. The Seven Habits. You have probably heard of at least one of these programs for business and corporate change. Like insatiable lovers, corporations can journey from one program to another, sometimes not even pausing to take an organizational breath.
An outsider might expect that the decision to start such programs is based on considerable research, contemplation, or at the very least familiarity. But here's an example of how it can--and often does--happen. A CEO, on the way to Boston, reads an airline magazine article on a new program to raise morale. Let's call it Program X. Disney and Microsoft and a boardroom full of technology execs rave about it. He (and it's usually a he that makes this mistake) goes back to his company, calls a staff meeting, and says, "We all want better morale (this is a nice way saying morale now stinks). I've been reading on the plane about Program X that Disney and Microsoft do. I just bought the book (passes out copies to everyone) and I think Program X would work here." VP heads nod, hoping that this too will pass quickly and not linger, as one of the characters in Dilbert says, "like the stench of a dead woodchuck under the porch."
All is quiet for a while, but the CEO is still in lust, and two months later, consultants knowledgeable in Program X show up ready to work everyone up into an frenzy. This can feel wonderfully torrid at first, with high expectations and lots of fanfare. But as energy decreases, productivity goes up in some places but down overall, and people get discouraged, the CEO's interest wanders and the program loses steam.
Then the company sees the CEO: closing down the program, part by part, all for "good" reasons-which, ironically, rationalize the enormous amount of time and money spent on the program; blaming, to deflect responsibility for picking the damn thing to begin with; deflecting corporate attention away from internal problems by acquiring a company or being acquired; and having selective amnesia, to deflect anything that's left.
The affair is over. A few months pass of blissful quiet, and then a new sexy program winks at the CEO on the plane from Las Vegas, and the cycle repeats. Oh, and by the way, company morale is even lower than before.
Most all change methods are effective. For the most part, each one is theoretically sound, well-researched, and clearly articulated. There are well-regarded authors, speakers, trainers, and consultants who bring extraordinary credibility to each program, and their success stories cite dramatic increases in profits through recipes for workplace satisfaction and productivity. But when they're put in organizations, they fail-at least 70 to 80% of the time.
Why? Many CEO's like to decide fast and in a big way, and as a group they routinely choose programs without a clear understanding of the root causes within their organizations. Programs should not be undertaken without a solid understanding of "what's true now." No CEO would go into a doctor and say "Doc, I've heard that triple-bypass heart surgery is a really cool procedure. Lots of my friends have had it done-can you do it tomorrow?" They would want the doctor to make sure the procedure was called for, to test, to ask the right questions. Otherwise, there is enormous and needless worry, time, and money (not to mention damage to a perfectly good heart) when the real problem is heartburn from last night's pizza.
In corporate change, unfortunately, consultants sometimes conspire with their clients to chase symptoms instead of underlying problems. I can recall with great shame years ago when I agreed to do the equivalent of triple-bypass for a client. I didn't ask many questions. I chose to grab the large fee and run, and although the client was pleased, we both knew the work was not really useful. Now I insist that we diagnose together before choosing any program. Over the years, this saves hours of needless consulting. Sometimes we discover they don't need a program at all, just a little fine-tuning.
When I work with a company, I believe 80-90% of the wisdom and expertise needed already exists within. I bring considerable experience and expertise to the table, but a large part of my role is to draw that out and have people feel it is "theirs"-then do it. Many organizations spend endless hours and money putting together the "best" plan only to have that plan put on the bookshelf or the trash can. Too often clients (and their consultants, to be honest) expand too quickly and consider the downsides of such expansion too late. The best plan is the plan an organization will actually do-one in which they build the necessary capacity and where the changes are sustainable. It is more important to help people grow sanely than quickly. The belief that there's no such thing as too much growth has killed hundreds of companies, careers, marriages, and dreams.
Why Corporate Change Programs Fail - To learn more about this author, visit George Smart's Website.
Like this article? Share it with your friends
 | |
 |
Excellent articles best of luck.
Commented on Why Corporate Change Programs Fail. |
| |
Leave Your Feedback |
 | |
| |||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to George's articles
 | |
|
|  |
 |
|
Leadership Lessons Learned from Texas Hold'em Poker - George Smart - With 25 years of proven experience in executive education and leadership development, EvanCarmichael.com expert George Smart helps companies gain a competitive edge. He specializes in executive coaching and leadership simulations -- practical, bottom-line, high-interaction training that has participants genuinely engaged.
|
|
|
 | |||||||
|
 | ||
 |
||
|
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Strategic Planning Guide One Size Success Entrepreneurship Or Job? 7 Strategies to Take Action Mastering Change |
|
 | ||
 |
Top 50 Debt Blogs
Learn To Get Out Of Debt | |
 |
Email The Reporters
Press Release Builder | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||
|
| ||||||||||
|
|
||||||||||