Making Change Happen

Marvin Gottlieb, Ph.D.

It seems almost impossible to enter into a conversation with anyone in the insurance and financial services industry without the subject of “change” taking the forefront. The problem with discussions about change is that change is always most clearly viewed in retrospect. For example, when we visit friends whom we haven’t seen for awhile and look at their children, the shock of change is apparent. “My how she has grown!” we might say and suddenly feel older. Yet changes in ourselves and those with whom we interact frequently go unnoticed. The same holds true for our business. Yes, we sense and even believe that change is happening. We are aware of the impact of technology and globalization. We know that today’s distribution network is different than yesterday’s, and will probably be different tomorrow. We know the clients are changing; more savvy, different priorities, greater diversity. We know that recruitment, retention, and leadership are the factors that will determine our success or failure in the future. What we don’t seem to know is how best to meet these challenges. But it should be clear that we cannot continue to do what we have always done. So, how do we make it happen?

Action Plan for Change
Any successful change initiative begins with goal setting. There is no doubt that top management must be ultimately responsible for setting goals and direction. However, the most successful change initiatives are those that involve staff at all levels early in the process. The suggested goals below reflect a consensus of the needs generated by the major changes in the financial services distribution system.

Change Goals

 Reconceptualization – realigning the mindset and strategic thinking with new mission, vision, and strategic initiatives. What does our future look like?

 Awareness – clear understanding of what is happening now in your organization, in both business and human terms. Are there gaps between corporate and field management and staff as to the current reality?

 Competency Development – building knowledge, skill, and perception based on best practices and behaviors of successful performers in the culture. Have we defined the behavior needed for future success? Have we capitalized on our existing strengths and honored our organizational culture?

 Entrepreneurship – supporting initiatives toward operating independently. Have we made innovation and creativity the cornerstone of our future success?

 Succession – preparing talented people to assume leadership roles prior to assuming the responsibility. Have we provided the necessary level of support for individuals to embrace the change with confidence?

Change Progression

The road is littered with the corpses of change initiatives that were imposed by well meaning executives who underestimated the cultural resistance to what was being imposed. Change is a process. Every new initiative doesn’t require reorganization or experimentation to create an innovative response. If workers at all levels are engaged, and pull together as a team rather than becoming entrenched as a survivor enclave, the change process provides people with a sense of ownership in the improvement of their work and what they produce. This is a sure formula for superior performance. In order to accomplish change goals, it is necessary to progress through four stages.

1. Research - Where are we now?

2. Development - What resources are available?

3. Implementation - How do we strategically make the changes?

4. Evaluation - How do we know if the changes are taking hold?

The Research Stage has three action steps that will provide the necessary information to carry the change plan forward.

1. Conduct climate survey with a large sample of the population.

The research will clarify the issues to be addressed, provide orientation to the project, and will encourage “buy-in” from those most affected by the change. The survey is a diagnostic tool, and should provide information about the general climate in nine categories:

• Clear objectives and agreed goals
• Openness and confrontation
• Participation and trust
• Cooperation and conflict
• Workable procedures
• Leadership
• Benchmarking and review
• Personal development
• Good inter-group relations

The objective is to heighten interest in the process, provide an objective viewpoint for analysis and discussion, and confirm or redefine the actions going forward.

2. Select a representative cross section of the target population for more comprehensive study.

This sample should include individuals who appear to be successful and enthusiastic about embracing change and others who are most likely to be resistant. Conduct focus groups, structured interviews, and standardized measures to identify key issues driving and restraining change among field personnel. Determine success factors either present or lacking in the population based on actual performance and best practices.

3. Leverage current cultural norms as the springboard for change.

One of the primary reasons for the failure of change initiatives is that they do not respect the power of the organizational culture to resist new directions. Let the opinion leaders in the organization help identify those cultural factors that support the new initiatives without violating deeply felt norms.

The Development Stage has four action steps.

1. Develop a competency model that incorporates the behaviors necessary for success.

The model should have attributes in three categories:

• Knowledge – what does the person need to know in order to be successful in the new organization?

• Skill – What does the person have to be able to do in order to be successful in the new organization?

• Perception – What intuition and creativity does a person need to employ in order to be successful in the new organization?

2. Compare and contrast the model with current personnel affected by the change.

During a change process it becomes apparent that some people will not be able to make the necessary changes regardless of the level of support provided. Others are fully equipped to embrace the change rapidly. The majority of people fall in a middle category where they can make the change if they are provided with the tools and support needed to bolster their competencies.

3. Identify internal and external resources available for modeling and training.

A successful change requires a mobilization of existing resources such as subject matter experts and the members of the team who can model the competencies needed for success. There also needs to be a competency-based training program that is customized to match the needs, and reflects the unique attributes of the culture. It is rare that an “off-the-shelf” solution exists that will fill that requirement.

4. Create a development plan to achieve the desired changes.

Plan a roll-out of the program that is fairly rapid in order to have the greatest impact, however remain sensitive to ongoing business realities. Again, involve those most affected in the preparation of the plan so that they can take ownership.

The Implementation Stage has four action steps.

1. Implement the development plan in the field.

Make it happen! Be sure that top management is highly visible and engaged in the process. Create excitement through extensive communication, off-sites (when possible or practical), and incentives. Provide ongoing support (coaching) for individuals on the team who need specific help developing selected competencies.

2. Create dialog on the vision and mission.

As the program rolls out, keep the vision and mission in focus. If necessary, make some changes in the vision and mission statements to reflect the reality as you currently understand it.

3. Focus on business unit needs and expectations.

Some adjustments may be needed to accommodate differences in business models dictated by lines of business, geographic considerations, regulation, or other factors that come to light as the process unfolds.

4. Seek feedback on results.
Regular and continuous feedback assures that the process is moving in the desired direction. It also helps to keep people at all levels involved and excited and involved by reconfirming their ownership.

The Evaluation Phase has two main measures.

1. Survey shift of attitudes after the events.

At a reasonable point in the process not less than ninety days or more than one year, conduct a follow-up climate survey. Look for areas where the climate has changed as an indicator of the program’s effect. Have some areas improved? Are there problems that still need to be addressed?

2. Measure growth in business that can be attributed to the change actions.

The hope is that business performance will improve. In and of itself, business performance is not a good measure of program success. There are too many uncontrolled variables affecting business performance. There may have been a shift in the economy or the competitive landscape.

Develop a Mindset for Change

Managing change successfully begins with a serious effort to create more effective workplaces. Such efforts should be based on research that identifies critical aspects of an effective workplace. For example, employees who have jobs that provide them more opportunities to continue to learn, whose supervisors support them in succeeding on the job, who have the flexibility they need to manage their job and their personal and family life, and who have input into management decision making are less likely to be change-resistant or feel overworked. This is true even when they work long hours and have very demanding jobs. Employers need to think about redesigning their workplaces to ensure that these and other critical components of an effective workplace are valued, worked toward, and part of the metrics for measuring success.