Change is an inevitable part of any organization’s growth and evolution. However, navigating this process can be challenging. Implementing effective change management strategies is crucial to minimize disruption and ensure success. Here are ten steps to guide your change management efforts, along with illustrations and insights to enrich each step.

1. Know Where to Start: Address Major Failure Modes

Before embarking on a change initiative, it is essential to recognize where things could go wrong. This requires knowledge. W. Edwards Deming wrote, “Hard work and best efforts without guidance of profound knowledge may well be the root of our ruination. There is no substitute for knowledge.” This is why this master class is so important. It addresses the need for higher awareness and deeper understanding about the change process. A well-known example is the launch of New Coke in 1985, which failed spectacularly due to a lack of understanding of customer sentiment. As the saying goes, “A failure to plan is a plan to fail.” Identifying potential pitfalls upfront can help set a more stable foundation for change.

2. Use a Proven Change Model to Align Efforts

Adopting a recognized change management framework, such as DMAIC (Define, Measure, Analyze, Improve, Control) can provide a roadmap for your initiative. For instance, ADP successfully utilized DMAIC in 2013-15 to integrate Operational Excellence into its corporate culture and improve the customer experience. This structured approach allowed them to align the organization’s efforts and resources effectively.

3. Set a Target and Charter the Change

A change charter acts as a guiding document. It should include the change vision, objectives, stakeholders, and resources. For example, when Starbucks revamped its operations in 2008, the company established a clear charter that focused on enhancing customer experience, which guided all subsequent decisions and actions.

4. Pull Together a Team of High Performers

Change is most effective when it is driven by a dedicated team. Google is famous for its collaborative culture, where teams of high achievers work together to innovate. By empowering talented individuals, companies can foster a sense of ownership and accountability in the change process.

5. Know Where You Are: Establish a Baseline with Facts and Data

Data-driven decision-making is essential in change management. Before implementing a new strategy, organizations like Amazon utilize metrics to assess performance. “Prove it!” is a mantra that emphasizes the importance of establishing a baseline, which allows for measuring progress and success.

6. Identify and Align on Any “UDEs” (Undesirable Effects)

Understanding UDEs is crucial for successful change. For example, when integrating Operational Excellence into the DNA of a corporate culture, start by examining the customer experience. Examples of UDE’s might be low NPS or CSAT scores, late deliveries, quality issues, the number of calls and complaints, or brand damage. Internal examples can include increased feelings of isolation and stress among employees and unnecessary costs. Identifying these effects early on helps in crafting strategies to mitigate them, ensuring a smoother transition.

7. Identify the Root Causes: The Real Problems

To uncover root causes, organizations can employ tools like the “5 Whys” technique or fishbone diagrams. A classic instance is Toyota’s use of root cause analysis to improve manufacturing processes. Their commitment to identifying underlying issues led to continuous improvement and innovation.

8. Set Solution Specs and Brainstorm Solutions

The concept of “the third right answer” encourages thinking beyond the obvious solutions. When Netflix transitioned from DVD rentals to streaming, they brainstormed multiple options, ultimately finding innovative ways to deliver content directly to consumers, enhancing user experience. When NASA designed the space shuttle, it was to take off like a rocket, land like an airplane, and be “reusable,” a significant stretch from Apollo thinking. And when Amazon birthed the Kindle, it was to deliver books to readers instantaneously without paper, ink, glue, distributors, and delivery costs. These “solution specs” challenged teams to think outside the box (paradigm) and raise standards to new levels.

9. Identify and Mitigate Any Risk

Proactively addressing risks can prevent failure. For example, NASA employs rigorous risk management protocols during space missions. By identifying potential risks early using FMEA (Failure Mode and Effects Analysis), they ensure that contingency plans are in place, significantly increasing the chances of mission success.

10. Implement Kaizens and Repeat the Process

Change is not a one-time event; it’s an ongoing process. Companies like Toyota exemplify this with their continuous improvement philosophy, known as Kaizen. By regularly evaluating and refining processes, organizations can adapt and thrive in a constantly changing environment.

P.S. John will teach a Master Class for senior level sales leaders on Jan 22nd, 2025. To enroll as our guest, please click on this link (insert)

“Let John Murphy be your guide through the minefields that accompany any change effort.”

– Ken Blanchard, PhD, Co-author of The One-Minute Manager”