Once upon a time, an engineering consulting company hit a speed bump. Revenue was falling so fast that staff attrition couldn't keep up with the contraction. So management leapt into action, declaring a salary freeze.
But there was a carrot — if the company met its revenue target, everyone would get a bonus. In consulting, revenue equates roughly to billable hours, so the engineers did their best to help Marketing find business. Trouble was, there wasn't enough business.
With less than a month to go before the CEO's annual state-of-the-company address, Management announced a buy-out for people close to retirement. After his address, in Q&A, a bright engineer asked him, "Since so many are taking the buy-out, we won't have enough billable hours left to meet the bonus target. Does this mean there's no bonus?"
Jacques, the CEO, was blind-sided, but he was no dummy. He knew that if he said yes, he could expect an exodus of his best engineers. So he replied, "I'll have to get back to you on that." Back in the calm of his office, Jacques and his team worked out the right answer: "We'll lower the bonus target proportionately."
So they issued a memo, and everyone relaxed some. But Jacques had been embarrassed at a time when he needed to show strong leadership. He probably wasn't ready for that question because it involved an intersection of two unrelated policies. Since there are so many policies in any company of even moderate size, the number of such intersections is large, and it's difficult to anticipate which intersections cause problems.
The executive team goofed, as most do now and then. Yet, even though we test our products thoroughly, we rarely test organizational changes before we "roll them out." It's a high-risk practice, because we end up testing our change plans using the company itself. To limit that risk, we must discover defects in change efforts before we execute them, and one approach that works well is the simulation.
Even though we test
our products thoroughly,
we rarely test organizational
changes before we
"roll them out"Simulations — sometimes called "games" — parallel reality. They're especially valuable when the event being simulated is high-risk. That's why the military runs war games, and why US presidential candidates run mock debates.
Simulations do require planning to ensure that they're faithful to reality, and you do need a skilled facilitator. But you can use simulations to test almost any organizational effort — process designs, project plans, test plans, reorganizations, mergers and acquisitions, marriage proposals — anything. Simulations can be off-site and small-scale, and you can use stand-ins for the actual players if security is an issue.
Is your organization embroiled in Change? Are you managing a change effort that faces rampant cynicism, passive non-cooperation, or maybe even outright revolt? Read 101 Tips for Managing Change to learn how to survive, how to plan and how to execute change efforts to inspire real, passionate support. Order Now!
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More articles on Organizational Change:
- Pick-Up Sticks and the Change Game
- When we change organizational culture, we often stumble over unexpected obstacles. Sometimes the tangle
can be so frustrating that we want to start the company over again. Here are some tips for managing
large-scale cultural change.
- Beyond WIIFM
- Probably the most widely used tactic of persuasion, "What's In It For Me," or WIIFM, can be
toxic to an organization. There's a much healthier approach that provides a competitive advantage to
organizations that use it.
- Plenty of Blame to Go Around
- You may have heard the phrase "plenty of blame to go around," or maybe you've even used it
yourself. Although it sometimes does bring an end to immediate finger pointing, it also validates blame
as a general approach. Here's how to end the blaming by looking ahead.
- He's No Longer Here
- Sometimes we adopt inappropriate technologies, or we deploy unworkable processes, largely because of
the political power of their advocates, and despite widespread doubts about the wisdom of the moves.
Strangely, though, the decisions often stick long after the advocates move on. Why? And what can we
do about it?
- When Fear Takes Hold
- Leading an organization through a rough patch, we sometimes devise solutions that are elegant, but counterintuitive
or difficult to explain. Even when they would almost certainly work, a simpler fix might be more effective.
See also Organizational Change for more related articles.
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- Eight hours a day — usually more — of meetings, phone calls, reading and writing email and text messages, briefing others or being briefed, is enough to drive anyone around the bend. To re-energize, to clarify one's perspective, and to restore creative capacity, play is essential. Play at work, I mean. Available here and by RSS on August 28.
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- The Race to the South Pole: Lessons in Leadership
- On 14 December 1911, four men led by Roald Amundsen reached
the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the
race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical
drama, why this happened is interesting enough. But to organizational leaders, business analysts, project
sponsors, and project managers, the story is fascinating. We'll use the history of this event to explore
lessons in leadership and its application to organizational efforts. A fascinating and refreshing look
at leadership from the vantage point of history. Read
more about this program. Here's a date for this program:
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio
44017: November 7,
Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute.
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio 44017: November 7, Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute. Register now.
- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.
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