Leading a Culture of Change

Leading a Culture of Change

Introduction

True growth within an organization requires strong leadership, vision, and the support of those whom have been hired to accomplish corporate goals. For many organizations, the ability to meet objectives on the way to achieving the overall vision may require the business to make changes from time-to-time. One can assume that when management sees a requirement for change much thought and consideration has been placed in the decision for the best interests of the company. However, for the most part, employees may not see bigger issues that management may see making change a both exciting and fearful time employees.

In order for an organization to operate at the next level of growth, a clear understanding why there is a need for change and how change will affect established values, practices, and culture within the organization. Creating an employee culture that embraces change will benefit the company's productivity and profitability. If management does not consider the established employee culture within their organization, employees may present varying levels of resistance, which could undermine management's overall vision for the company's future. Therefore, management must realize that the consideration of the organization as a whole is needed to develop a change strategy and if growth through change is properly managed within an organization, a unified internal culture, and leadership will allow all employees to make sense of change and be more committed to company goals.

Creating a Cultural of Change

Organizational change seems to be inevitable to all organizations wishing to expand their operations or correct a perceived problem with existing internal management or production methods. From an executive standpoint, change needs to be purposeful and deliberate action to renew "an organization's direction, structure, and capabilities to serve the ever-changing needs of external and internal customers" (Peus et al, 2009). As well, other influences such as "new technologies, changing employee demographics, global economic competition and economic ... instability" (Peus et al, 2009) contribute to an overall theme that unless a company is operating in isolation, eventually every company will need to revaluate its way of doing business. These external and internal pressures also compel corporations to make changes in order to maintain or increase their probability and not be forced into decline or bankruptcy. Therefore, it can be assumed that business entities need to be flexible and that in order to be ultimately successful, the changing needs of customers and employees need to be continually addressed; hence, change should be seen as inevitable.

Fundamentally, the principals of change that face companies are the same whether they are changing a department or the organization as a whole. Company culture plays a big role in flexibility. When employees feel valued and that their opinions and suggestions are taken seriously, or even delegated certain authority, they want to work harder toward the common goals of the company as they feel like they have a stake in the outcome (Johnston, M. A. 2000).

The key is for management to have the flexibility and determination to create a way forward that includes multiple levels of communication with the resolve to act once considering the best possible outcomes. Thus, creating a change embedded company ethos requires the support of all people within the organization. A company can promote the goals that create this flexibility and positive culture by having a vision, hiring and retaining individuals who fit in with company culture, energizing the staff, and constantly communicating the vision and reinforcing the culture (Lin Grensing-Pophal, 2000). Achieving these four elements will seemingly create conditions where employees will be more apt to the culture of change and make new policy implementation easier. This proposition is logical and common sense; however, it is easier stated than implemented.

Resistance to Change

Employees, for a variety of reasons, can be resistant to change, which is why the success of any corporate change initiative relies upon employee support. Fundamental to an employee's desire for or against change is their personal values and beliefs. Therefore, if a proposed change is in any way seen as unethical, hasty, or without employee considerations addressed corporations can expect more resistance than if implementing change was more gradually.

There is little wonder why some employees have a negative attitude toward change because change may bring "uncertainty" and a "loss of control" over their life (Peus et al, 2009). Expanding on this rationale, one can clearly see that if changes are implemented too quickly or employees feel like their interests have not been considered in management's change decisions, a business may be faced with increasing levels of employee resistance. Resistance can be at any level from disruptions in productivity, key personnel leaving the company, up to and including strike action (Peus et al, 2009). These undesirable consequences for a business compel managers to promote a company culture that can adapt to change as well as utilizing a leadership strategy that promotes employee engagement in major issues that require change.

Leadership Affecting Changes

A typical example of where a culture of change may not be enacted is in small business where the owner/CEO retains much, if not all, the decision-making authority. Centralization of authority can restrict creativity and lead to an organization being rigidly structured to the "owner's