How 'Change Management' Is Harming, Not Helping

There is a business out there losing over 20% of their staff annually. Where HR reports 44% of their staff not being able to achieve their goals and 77% identifying as exhausted or fatigued. A third of their staff throughout the hierarchy are complaining of being poorly communicated to, with a majority of the poor managers admitting they are not equipped to lead through the work they are being asked to be responsible for.

This business is Australian, currently open, but with a productivity strain on it that it cannot bear for much longer. It's employees are putting in 22% less discretionary effort relating directly to a rise in Presenteeism (being at work but disengaged). With so many staff leaving, the recruitment bill is hefty as it is costing anywhere from 50-150% of the annual salary for each position to be backfilled. It is not a fun place to work either as it's employees are steadily suffering more and more from mental health concerns as absenteeism hits an all time high.

And, if that doesn't paint the picture of a business in trouble, then the final kick in the shins for this business is the low Return On Investment it is getting strategically with approximately 70% of business initiatives failing!

The Executive Summary reads, "We suffer from poor results, low productivity, and have a culture as attractive to talented people as a pool that hasn't been cleaned for a year.

What business am I referring to? Who is this mysteriously terrible business?

It is any business suffering from Change Saturation or Initiative Overload. In a world of rapid change where big ideas are constantly heralded and bold leaders are championed, it seems we may be overcooking it.

The sheer strain we are putting on our people, budgets, and company cultures looks to be causing more cost and risk than benefit and progress.

The Cult of Transformation

In the 1990's grunge took over the world, stussy pants were the definition of cool, and the term 'Transformation' was born. Big business restructures, mergers, and the like begun being branded as 'Transformations'. Since then the cult has spread faster and stronger than any virus in a childcare centre during winter. In the 2000's digital development ramped up adding an additional layer of transformation, before the big consultancy groups latched onto this as a key pillar to the programs they offered.

After a few decades it suddenly became the central topic at many-a-conference until it hit its zenith as a global pandemic hit where transformation went from a clever management strategy to an existential requirement. From buzzword to embedded, transformation is now a function, a job role, and even an entire division in our corporate businesses.

Transformation has in itself become a treadmill, or for some a blind addiction.

Balancing the Cult

One way to question if your business (or your leadership) has unintentionally fallen into a transformation malaise is to do nothing...

The medical fraternity has a founding principle of 'first do no harm' where deliberate inaction ensures our critical human need of safety is upheld and honoured. It isn't always convenient or sexy, but it does save mistakes and unintended consequences.

Michael Gerber, author of The E Myth, calls it Zero-Option Thinking where the best decision is to NOT launch/scale/change from the norm. The Do Nothing Strategy and Baseline Scenario used in economic and political policy talks to 'non-intervention' to explore possible pathways and outcomes when faced with a policy issue to solve. In most cases the most audacious move is to stop, question, or at least consider before jumping in. 

It is often missed and is a key step we use in Strategic Facilitation, often described as the Do Nothing Test. We ask, "what would happen if we did nothing?" followed by "what is the cost of inaction?"

This discussion often surfaces the cost or benefit of taking action or not taking action. It helps us understand why we are doing or not doing something and if an action is worth exploring.

As leaders we spend every waking moment making decisions and in an attempt to keep on top of things, we can often undermine our work by changing too often or too much. It is hurting productivity and cognitive overload, but just as importantly, it is unintentionally harming our brand and work cultures.

The stats tell us how costly Change Saturation is. Leaders employing the critical step of nothing may create a competitive advantage for themselves, and a silent fuel of attracting and retaining the most talented people in our chosen industries.