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Well-intentioned leaders invest significant time in communicating their change story. Road shows, town halls, and Web sites are but a few of the many approaches typically used. Certainly the story told in five ways needs to get out there, but the insight we are offering is that much of the energy invested in communicating it would be better spent listening, not telling.
In a famous behavioral experiment, half the participants are randomly assigned a lottery ticket number while the others are asked to write down any number they would like on a blank ticket.
Just before drawing the winning number, the researchers offer to download back the tickets from their holders.
The result: no matter what geography or demographic environ- ment the experiment has taken place in, researchers have always found that they have to pay at least five times more to those who came up with their own number. This reveals something about human nature: when we choose for ourselves, we are far more committed to the outcome almost by a factor of five to one.
Conventional approaches to change management underestimate this impact. The rational thinker sees it as a waste of time to let others discover The McKinsey Quarterly Number for themselves what he or she already knowswhy not just tell them and be done with it?
Unfortunately this approach steals from others the energy needed to drive change that comes through a sense of ownership of the answer. At BP, to develop a comprehensive training program for frontline leaders, a decision was made to involve every key constituency in the design of the program, giving them a sense of writing their own lottery ticket.
It took a year and a half to complete the design using this model but was well worth it: now in implementation, the program is the highest rated of its kind at BP. More than active senior managers from across the business willingly teach the course, and, most important, managers who have been through the training program are consistently ranked higher in performance than those who havent, both by their bosses and by the employees who report to them.
The deficit based approachwhich identifies the problem, analyzes whats wrong and how to fix it, plans, and then takes actionhas become the model predominantly taught in business schools and is presumably the default change model in most organizations.
Research has shown, however, that a story focused on whats wrong invokes blame and creates fatigue and resistance, doing little to engage peoples passion and experience. This has led to the rise of the constructionist based approach to change, where the change process is based on discovery discovering the best of what is , dreaming imagining what might be , designing talking about what should be , and destiny creating what will be.
The problem with this approach is that an overemphasis on the positive can lead to watereddown aspirations and impact. The reason is that, as humans, we are more willing to take risks to avoid losing what weve got than we are to gain something more.
Some anxiety is useful when it comes to spurring behavioral change. We believe the field of change management has drawn an artificial divide between deficit-based and constructionist-based approaches and stories. While it is impossible to prescribe generally how the divide should be split between positive and negative messages as it will be specific to the context of any given change program , we strongly advise managers not to swing the pendulum too far in one direction or another.
Conventional change management suggests leaders should take actions that role model the desired change and mobilize a group of influence leaders to drive change deep into the organization.
Unfortunately, this does not necessarily deliver the desired impact. Leaders believe mistakenly that they already are the change. Most senior executives understand and generally download into Gandhis famous aphorism, Be the change you want to see in the world. They commit themselves to personally role modeling the desired behaviors. And then, in practice, nothing significant changes. The reason for this is that most executives dont count themselves among the ones who need to change.
How many executives when asked privately will say no to the question, Are you customer focused? Of course, none. The fact is that human beings consistently think they are better than they area phenomenon referred to in psychology as a self-serving bias. Consider that 94 percent of men rank themselves in the top half according to male athletic ability.
Whereas conventional change-management approaches surmise that top team role modeling is a matter of will or skill, the truth is that the real bottleneck to role mode ling is knowing what to change at a personal level. Typically, insight into what to change can be created by concrete degree feedback techniques, either via surveys, conversations, or both. Consider the top team of a national insurance company who routinely employed what they called the circle of fire during their change program: every participant receives feedback livedirectly from their colleaguesin relation to being the change, such as What makes you great?
Influence leaders arent a panacea for making change happen. Almost all change-management literature places importance on identifying and mobilizing those in the organization who either by role or personality or both hav e disproportionate influence over how others think and behave. We believe this is sound and timeless advice.
However, we have observed that the role of influence leaders has gradually shiftedfrom being perceived as a helpful element of a broader set of interventions, to a panacea for making change happen.
The McKinsey Quarterly Number Our experiences working with change programs suggest that success depends less on how persuasive a few selected leaders are and more on how receptive the society is to the idea. In practice it is often unexpected members of the rank and file who feel compelled to step up and make a difference in driving change. Thats why we warn against overinvesting in influence leaders and advocate that change leaders attention should be balanced across the right application of all four conditions for change, to ensure they reinforce each other in ways that maximize the probability of the change spark taking off like wildfire across the organization.
Reinforcing mechanisms Conventional change management emphasizes the importance of reinforcing and embedding desired changes in structures, processes, systems, target setting, and incentives. We agree. To be effective, however, these mechanisms must take into account that people dont always behave rationally.
Money is the most expensive way to motivate people. Companies that try to link the objectives of change programs to the compensation of staff find that it rarely enhances their motivation for change to the extent desired. The reason for this is as practical as it is psychological in nature.
The reality is that in the vast majority of companies, it is exceedingly difficult to incorpora te a meaningful link to the change program within compensation systems that are based on a vast array of metrics. Moreover, many studies have found that for human beings satisfaction equals perception minus expectation an equation often accompanied by the commentary, reality has nothing to do with it. The beauty of this equation for change managers is that small, unexpected rewards can have disproportionate effects on employees satisfaction with a change program.
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