Ten Tips for Managing Change in Uncertain Times   
By Pierre Mourier 
     
Post 9/11 anxiety . . . escalating tensions in the Middle East . . . a struggling U.S. economy. Current events are not forming a pretty picture, and within many organizations, a mood has developed that can only be termed "managerial havoc." Which companies and organizations will still be standing when the turbulence dies down? You may be wondering. And more to the point, why will they still be standing?

"To answer these and other questions, managers must first take a critical look at themselves," says Pierre Mourier, president of management consulting firm Stractics Group, Inc. and co-author (along with colleague Martin Smith, Ph.D.) of the new research-based book Conquering Organizational Change: How to Succeed Where Most Companies Fail. "In my opinion, there has never been a more fertile time in which to be a manager -- you simply have to know what to do and how to do it."

So how should you manage change in uncertain times? Mourier offers the following 10 tips for managers who want to be on the frontline of organizational performance in 2002 and beyond:

1. Identify your key players and circle the wagons.

Pinpoint the most important people in your organization and keep them close to you. Seek their advice, reward them generously, and find out what you can do to make them happy. Meet with this extended team on a regular basis to monitor what is going on within the organization. Seek their input. Make them responsible for the performance of the organization and afford them the empowerment needed to carry out the vision. Be sure to look for players of this team at all levels of the organization.

2. Get closer to your customers . . . and be aware of your competition.

Make sure you know how your customers have been affected (or may be expected to be affected) by these turbulent times. How can your organization best serve these customer needs . . . and what is the competition doing differently under the changed conditions? Bring customers into the organization for consultation or visit them at their place of business.

3. Reconfirm the organization's strategy.

Together with the team, confirm or revise your company's current strategy. Should the strategy change as a result of what is going on in the environment to create uncertainty? Should it change as a result of what is going on with customers or competitors? Once your strategy has been refined, make sure it is effectively translated into measurable goals and actions that can be taken by frontline employees.

4. Be tactical -- think small.

Most organizations constantly have a variety of organizational change efforts under way. During uncertain times managers have a golden opportunity to critically evaluate the business case for sustaining these efforts. One of the most important questions you can ask is whether the change effort under consideration can be broken down into tactical components or into phases, each with a beginning and an end. To minimize risk, your goal should be to avoid committing large sums of money to change efforts.

"One of our large multinational clients had been engaged in a large systems project valued at about $54 million," says Mourier. "With the recent decline in the stock markets around the world, the CEO decided to break the change down into smaller components, the first of which was valued at $3 million. As it turned out, this was a smart decision as it was followed by the events of September 11 and the recession. The organization went on to downsize a small number of employees, an action that would have been difficult to justify in the midst of a $54 million change project."

5. Build alliances.

During uncertain times it is more important than ever to maintain strong alliances across the organization -- and potentially with other organizations such as suppliers, vendors, and perhaps even selected customer groups. Within the organization, the most critical relationships are created at the executive level, but also among department leaders and managers.

"A client of ours in the construction and maintenance business is a good example of how to create external alliances," explains Mourier. "They have invented a concept they call the zippered relationship model. The model says that managers at every level of the organization must identify counterparts in customer organizations, particularly during large and involved selling processes. This creates an impregnable set of relationships up and down the organizational layers; competitors would find it very difficult to break through. The concept can be used in different situations as well, including large and complex change projects."

6. Communicate.

During uncertain times, employees are inundated with stories of downsizing, pay reductions, etc. While the importance of systematic and regular communications with your team cannot be overemphasized during normal times, the issue takes on even greater importance now.

7. Become obsessed with productivity.

In uncertain times productivity must take center stage if the organization is to survive in the long run. It is critical that managers be adept at understanding what the output is for each dollar spent. In addition, managers must be willing to undertake the necessary confrontations with employees who are not performing as expected.

8. Re-evaluate performance management systems and metrics.

It is important that existing measurement and performance management systems are revised so that managers may receive the tools necessary for managing the business. In times of uncertainty, it is critical that performance management systems provide information immediately, so that appropriate management action can be taken. Most organizations do not have performance data at their fingertips, and must wait what can sometimes be weeks or even months before off-schedule conditions are identified and action can be taken.

9. Translate organizational goals into frontline action.

Related to the earlier point about refining existing strategies, it becomes critical to ensure that these strategies are translated into frontline action plans whose achievement can be measured. To be effective, goals must be translated so that people buy in to them, while providing enough stretch to act as motivators. The translated goals must relate closely to the performance measurement system that is in place in your organization.

10. Follow up relentlessly.

The last tactic for managers during times of uncertainty is one that might be termed constant vigilance. Systems that report monthly information are simply not good enough; hourly or daily reports are more appropriate. Managers should consider creating war-rooms where key information is provided as it occurs and managers can take necessary action . . . immediately.

"What constitutes prudent management in times of uncertainty is no different from that of ‘normal' times," concludes Mourier. "What does differ is the degree to which these principles and tactics are applied. The ideas above are the same ones you'll find in Martin's and my book . . . it's just that in times like these, it pays to take the principles of good change management and turn them up a notch."

Pierre Mourier is the founder and president of Stractics Group, Inc., a consulting firm dedicated to help clients achieve measurable improvements in performance, including customer satisfaction, quality, service, and financial results. 

He can be contacted at http://www.stractics.com

Excerpted from: Conquering Organizational Change: How to Succeed Where Most Companies Fail is available at bookstores nationwide and major online retailers. It can be ordered at http://www.ceppress.com or 1-800-558-4CEP.