Title: The Power of Individuals in Shaping Business Transformations
Title: The Power of Individuals in Shaping Business Transformations
Leading a business through a change, be it entering a new market or pursuing an acquisition, can be a daunting task. Change is often met with resistance from employees, resulting in challenges like decreased productivity, employee turnover, and resistance to the new direction. I've encountered this firsthand while making decisions for Tiger Recruitment. Not everyone can envision the long-term rewards when change is on the horizon, even when the CEO and senior leadership team can see the positives ahead.
The fear of change is understandable. PwC's 2024 Hopes and Fears Survey revealed that 53% of workers globally feel there's too much change happening all at once, and 44% are content with their employment status, seeing no need for additional upheaval. The unexpected shift in working practices due to the pandemic, the looming threat of artificial intelligence transforming jobs, and economic instability all contribute to uncertainties for employees. It's no surprise that CEOs are keen on adapting their companies for future competitiveness, while workers grapple with present-day pressures and an uncertain future.
To engage workers in the transformation process, show them the positive opportunities that change offers. This could mean the chance to relocate to a new city, build essential skills for career advancement, or share in the financial rewards of increased profitability and new revenue streams. Remember that each employee has a unique risk tolerance and communication preference. Some may be comforted by clear communication, while others seek input into the decisions affecting them. It's essential to establish a communicative cadence that resonates with your workforce and enables them to remain engaged with the business during major changes.
Selectively involving employees in driving the transformation process can accentuate its success. While most employees have grown accustomed to change as a new constant, directly involving only a select few can escalate the odds of a positive return on investment for shareholders, according to McKinsey's research. Transformations involving at least 7% of employees doubled the likelihood of yielding positive shareholder returns over smaller change teams, which typically account for just 2% of the workforce.
Build a dynamic team that mirrors your company's culture, encompassing pioneers witness to embracing risks and those who question decisions, such as «how will this work?» or «will we lose people if we proceed?». Their diverse perspectives contribute invaluable insights during transformations, when the implications are often wide-ranging and complex. Mistakes and missteps are inevitable, so be prepared to adjust course, even pause when necessary, to maintain the integrity and success of the established business.
Effective communication underpins the success of a transformation. Employees expect transparent communication, but over-sharing may not always be necessary. Be adept at selecting the right information to share and ensuring essential parties, such as shareholders, have access to the information they require. Encouraging employee input into important decisions can instill a sense of ownership, which empowers them to feel committed to the transformation's success.
Business transformation may seem daunting, but the right approach can render it far less daunting. Craft a team of change champions, consider employee perspectives, and maintain open communication to navigate a successful transformation.
In the process of managing staff during a business venture's transformation, it's crucial to highlight the positive opportunities that change brings. This could involve relocating employees, providing opportunities for skill development, or sharing in the financial benefits of increased profitability and new revenue streams.
Furthermore, selectively involving employees in driving the transformation process can significantly enhance its success. According to McKinsey's research, transformations involving at least 7% of the workforce doubled the likelihood of yielding positive returns for shareholders, in contrast to smaller change teams that usually account for only 2% of the workforce.