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Change: how successful managers think about change

March 2nd, 2021
Corporate Strategy

Change: how successful managers think about change

March 2nd, 2021
Corporate Strategy

They strongly believe that the art of trading needs to change.

All CEOs have a clear picture of the threats or opportunities their business faces. Some of them are quite clear for managing a company (higher costs against peers, high level of debt at the time of growth, lower prices of products compared to competitors, etc.), while some, such as assets; Automation threat; Changes in government policy or aspirations to become a regional or national leader may seem a little less common, but they are still quite noticeable. In either case, the CEO can clearly explain why the change is needed.

Turn the framework into a higher level of performance rather than a separate project.

Before the transformation began, the managers we spoke to expressed that they recognized that the current way of working did not lead to the desired results of the transformation. In other words, the methods used were not sufficient to achieve significant success to achieve a higher level of performance. “This is not a common type of business – if you think you can handle it in the past, then you should not use it,” said one CEO.

Minor change programs are often thought of as projects that have a clear beginning and end with the end of a specific process. But this will not work in a fundamental change. Instead, managers see change not only as a way to build value, but also to accelerate the speed of decision-making and implementation in the company, and to embark on an endless journey to excel and advance a system.

Set achievable goals and inspiring motivations for your leadership team.

Another issue is the need for very high-level goals for the company. The CEO of a company may initially feel that the company’s management team is initially too pessimistic about ambition. “We were really worried that this might not even be possible,” said another CEO. These limiting beliefs could have stemmed from the culture in different businesses. As the saying goes, “Inner motives do not encourage us to be bold enough … you just can not cut. You need to make a fundamental change.”

The CEOs we interviewed believe that creating an ambitious dream is very important – not only to show that this transformation is different from previous efforts, but also to orient the company towards a whole new potential. This level of ambition and ambition must also include all the levers of value creation: expanding the company’s boundaries through revenue, working capital, investment costs, and reducing operating costs.

Demonstrate real ownership by requiring participation and going into the details of business processes.

The CEOs we spoke to spent most of their time on developments in their company. Simply put, managers do not feel responsible for responding to change, but instead of spending time on tasks related to their company or the changes they organize, they spend most of their useful time modeling themselves or individuals and companies in vain. They do what they wish were in their place.

Some managers want to emulate themselves so well that in response to our question, he critically stated that “malicious people have no place to hide.” Another manager suggested, “You have to be serious and think that we will do this no matter what.” Modeling requires managers to go into more detail about the business. Our research shows that if leaders model this change, they are five times more likely to succeed, and if leaders spend more than half of their time on it, they are two and a half times more likely to succeed.

Involve everyone in the change, not just senior leaders.

Long-term goals and setting a timeline for the CEO need a large team to execute. One CEO was impressed when “his employees came back with a thousand ideas on how to improve the organization.” “Imagine what we could have achieved with 100% of the workforce,” said the company’s initial goal of involving only 25 percent of its employees directly.

From the beginning, set yourself up with a focus on immediate action.

Unsuccessful developments are often hampered by the notion that “it can not be done” or “we can not afford it” or other limited mindsets. Successful launches occur when teams avoid disagreement over long-term challenges and immediately focus on the next step – creating a list of initiative ideas. Over the next nine weeks of the company, these initiatives can emerge as a realistic plan with financially positive results and a workable set of set milestones.

Although it is important to understand the potential risks and challenges, not all of them need to be addressed in the initial planning stage. Some executives talked about a two-speed transformation, in which they performed immediate interventions (first speed) to “create the oxygen” needed for complete transformation (second speed). “Not only does this automatically enable the program to make the necessary investments, but it also quickly reflects the organization’s bias toward action and change,” they said.

Create a voice in a leadership team for path to change.

It is essential that top leaders commit to change. It always encourages the growing effort that thousands of other people must make to succeed in the transformation process. If you show signs of weakness or lack of commitment, your people and employees will receive it immediately. They will not go any further and will not face any more difficulties because they are not sure about your commitment as CEO. “

Leaders say they had to work individually with each member of their team to keep them on track. They acknowledged the prejudices of each team member and stressed the need to “reset our expectations to ensure that we lead by example.” To create this environment, a manager, for example, had to “accept his weaknesses and build strong relationships individually.” Many acknowledged that not every member of the company’s various teams was willing to go along with the transformation.

Source: Mckinsey and Co.

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