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Thursday, August 28, 2008

ELP Articles (Edition 2)

 

Edition 2 (June 2005) Posted: Monday, August 01, 2005, 10:52PM
Published in: Edition 2 (June 2005)

Emotional Buy-in

Making sure your people understand the reasoning behind change is only half the battle. Engaging them emotionally is just as important, says Kim Harvey.

Some would argue that procurement teams face more change today than ever before. Not only are they required to meet the corporatewide efficiency and transformation programmes that are taking place in many organisations, but the advance of thinking about how a procurement and purchasing function should work means we can’t rest on our laurels.

Procurement professionals generally pride themselves on being rational, logical types. We have to manage complexity, arbitrate between economic and relationship arguments, and make sure all the details are sorted out. So if we have to make a change to what we do and how we work, then surely our natural character and skills will carry us through? If we’re honest, we have to admit it doesn’t quite work like that. We’re human, after all – responding to any kind of challenge to our way of living and working. If the change gets rid of a problem, that’s fine. But if it takes away something I once spent a long time building, I’m a lot less happy about it – even if there is a logical argument for it (which, with an unpredictable future, there may not be).

Lessons from experience

If the future is unpredictable, what does the past tell us? Research shows that three out of every five organisational change projects will exceed the planned timescale by at least 50 per cent. One of them will be abandoned. But many failed change projects have nothing to do with the nuts and bolts of the process; it’s down to the people and whether they are able to embrace change and make it work. And that depends upon how they feel about it.

In one large telecoms organisation, we saw a change programme aimed at a complete restructuring of the procurement function. Major headcount reductions were proposed, as well as new approaches to procurement planning and management. Progress was held up for nearly a year while managers argued about the plans. It was eventually pushed through when the skills needs of the individuals involved were addressed, and they were enabled to re-orientate their attitudes and ideas. But the delay could have been avoided.

Moving ahead

Most of us have experienced some form of change in our lives. Some changes we accept more readily, such as technological change. We seem to have adopted the internet very easily, and broadband has made us more eager than ever. Basically, we had a choice and we seized it. Imposed change is not normally accepted so readily – it’s the way the change is implemented and the feeling that it has been ‘done to us’. We may understand that there is logic to the proposal, at one level, while at another we have had no time to assimilate that logic and adjust our core values, habits and attitudes.

In the end, of course, this feeling usually gives way to a more rational approach. But it can take a while, and in that time the organisation may suffer through inefficiency and the costs of resistance to the changes. A better understanding of the stages of change can help to shorten or avoid this impact.

Stage one: Denial

The denial stage is one of shock. Typically, employees cope by building a protective outer shell that communicates, ‘I am okay. If I carry on as normal, this will go away.’ This internal response is difficult to detect. Therefore, managers will assume that an employee is on board and begin to delegate some of the change workload onto the individual.  Not surprisingly, the employee will appear to comply with any requests for change, but will not register this internally and will carry on with the old regime. As a result, the manager misses the signs of denial and keeps communicating rational logic about why the change is important. The employee still does not change their behaviour.

Stage two: Resistance

The resistance stage of change is a lot easier to identify. Employees will be displaying negative behaviour; for example, they may use hostile language or negative body language. The normal reaction for managers when dealing with an employee who is in resistance is to see them as a trouble maker. So the rational dialogue for the change is stepped up, and it is assumed that should be enough to gain the acceptance of the reluctant employee. This approach, however, will alienate the employee even more. Remember, it is not possible to think rationally when you are in an emotional place.

Stage three: Exploration

This is the stage when the employee requires more information about the change being proposed.  They will be asking questions and requesting more data. The danger here is that managers misinterpret this as the next stage; acceptance. If this is the case, the employee may go back to resistance.

Stage two: Acceptance

This is where the employee has bought into the change. Some employees will naturally jump to acceptance without the need to go through any emotional responses to change. Therefore, the challenge for managers is to keep the employee’s motivation high, and encourage them to help support those who are not on board.  Don’t be afraid to talk about your feelings, and be honest and open about the impact of the change on individuals and the organisation. Employees will respect your honesty and will be likely to move to the acceptance stage more readily.

It is not possible to please all the people all of the time, as the saying goes. But it is possible to take account of how they feel and the factors for success when we are seeking to make changes that will be to the benefit of most of the people, most of the time. These tips (right), along with careful planning, should be part of the tool kit of any procurement leader seeking that aim.

Kim Harvey is director of Cordoba Consulting 


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