Reevaluating The Foundation Of Your Company
Organizational Change Management Through Operationally Sound Leadership
Organizations that not only recognize but also fully embrace the inevitability of constant change differentiate themselves. This embrace goes beyond mere acknowledgment; it involves a proactive and strategic engagement with the complexities and inherent challenges that accompany organizational change management. Initially, the thought of embarking upon a project like this will feel daunting. The mere mention of change management often evokes images of resistance among employees, widespread confusion, and the potential for significant upheaval within established systems and processes. Such perceptions can create a sense of trepidation, making the endeavor seem fraught with insurmountable challenges.
Over the past two years, I've worked with BLOX Digital, a 35 year old SaaS company ripe for modernization. The bulk of the work has involved designing and implementing a substantial change management initiative. This initiative has required me to draw upon every bit of knowledge I've acquired throughout my life. The experience has stretched far beyond mere professional lessons, sparking a profound period of self-reflection. This introspection has been personally transformative and has enhanced my communication skills, strategic decision making and overall operational rigor. More significantly, it has reshaped me into a more empathetic and modern leader, something that I take a great degree of pride in.
Most of you have likely heard of John Kotter, the renowned expert on leadership and change management. One of his quotes has always resonated with me and stresses the importance of embracing change within an organization. He said, "Change is a process, not an event." This simple yet profound statement captures the essence of change, emphasizing that successful change management requires patience, persistence, and a strategic approach that addresses both the human and technical aspects of an organization's evolution.
Triggers for Change
For BLOX Digital, just like many other forward-thinking organizations, the impetus for change was complex and came from multiple directions. The rapid pace of technological advancements, increasing market pressures, our internal ambitions for growth, and the pressing need for improvements in our processes all signaled that it was time to re-think our business. Being OK with the status quo was no longer viable, pushing us towards a significant change initiative.
This initiative wasn't simply about adapting to the changes around us; it was about embracing change as a lever for innovation and growth. We were all suddenly propelled into unfamiliar territory but with the underpinning of excitement for what lies ahead. The decision offered us a chance to not only evolve but redefine what we could achieve as an organization, setting a new stage for our continued success.
Important things to remember when catalyzing change.
Plan on ruffling feathers but do not allow your feathers to be ruffled. In the early days, you’ll likely make more enemies than friends. Thick skin comes in handy at this stage.
Quickly identify those that are onboard and open to change. They will be your champions and know that they will come from all areas of the org. Openness to change signals that a person is curious, making them great change advocates and agents.
Quickly identify those that are not onboard with change. They will be the nay-sayers and attempt to impede your efforts. Opposition to change signals that a person harbors complacency and will likely be slow to adopt. Don’t lose faith though, most (not all) will come around after they start to see the impact of these efforts.
Always remain focused on the vision and stay the course. All the noise can be personally disruptive but when you believe in the vision, the noise simply reminds you that you’re on the right track. Internal noise also signals that the vision is beginning to take root.
Don’t be shaken when you’re thrown a curveball. Decisions will be made that are out of your control. Even when you uniquely know that it’s not in the best interest of the change initiative. Should this happen, pause, reflect, readjust and strategically identify how to work around these newly surfaced impediments.
The Landscape of Challenges
The path to organizational change is never easy and will always be strewn with challenges. BLOX Digital's experience was no exception, highlighting several universal hurdles that test the resilience of companies aiming to evolve. Among the most significant is employee resistance, a natural human reaction to the discomfort of change. This resistance was compounded by the difficulty of altering entrenched corporate cultures that have developed and solidified over years, ahem, decades. Additionally, BLOX Digital faced technical hurdles in integrating new systems and processes, an endeavor that required not just financial investment but a shift in mindset across the entire organization.
A particularly daunting challenge for us at BLOX Digital was our dependence on outdated, siloed systems that hampered data-driven decision-making. Such systems made it difficult to gather, analyze, and leverage data effectively, which is a cornerstone of any modern business. Today, the ability to integrate processes seamlessly and ensure clarity and accessibility of information is not just advantageous but essential for any organization looking to stay competitive and innovative. Recognizing these issues was the first step in our change initiative, setting the stage for a comprehensive overhaul of our operational framework.
Overcoming the Obstacles
Before initiating any organizational change, know that it demands a multifaceted strategy, at the heart of which lies the imperative of clear communication, effective leadership, and deep engagement with employees. BLOX Digital recognized early on that the traditional, top-down approach to change management would not suffice in the face of such complex challenges. Instead, we leaned heavily into specialized change management tools and methodologies that prioritize transparency, dialogue, and inclusivity. One of those tools was implementing a “Level 10” meeting structure adopted from the Traction/EOS methodology. This highly structured meeting gets key stakeholders together on a weekly basis with the sole purpose of identifying problems, discussing the problems and then solving those problems I/D/S. This structure, while rudimentary, is the key to opening lines of communication. Most often, people are afraid to surface problems that they see within other areas of the org. This is because it’s usually met with a degree of defensiveness which causes tension, thus making people wary of surfacing issues. When you have a meeting structure that supports open lines of communication, nobody gets offended or put off, rather issues are met with excitement because it’s a problem for us to collectively solve.
The Level 10 Meeting
This meeting keeps our team focused and accountable for the execution of key initiatives that have been deemed as necessary to move our company forward.
The Rewards of Resilience
The change efforts that we’ve embarked upon have been nothing short of incredible to watch, leading to a multitude of significant benefits that are already greatly impacting the company. The strategic decision to overhaul 90% of our legacy systems in favor of Salesforce marked a pivotal turn in the company's approach to operations. This transition to an end-to-end system was not merely a technological upgrade but a strategic move towards establishing a robust foundation for data-driven decision-making. The impact of this shift has been profound, enhancing operational efficiency across the board. Employees can now access, analyze, and leverage data in real-time, leading to smarter, faster decision-making processes. This, in turn, is streamlining workflows and reduced frustrations associated with outdated systems.
Side note- We experienced 18-months of frustrations before the impact of these systems started to be felt. We still have a road ahead filled with refinement and optimizations but the progress made in such a short amount of time is beyond impressive. #implemntingnewsystemssucks #butworthit
In addition to the systems overhaul, this initiative has been characterized by strategic changes in leadership and organizational structure. New leadership has been introduced across the majority of functions, bringing fresh perspectives and driving a culture of innovation and accountability. An example are the changes made within our sales operation which included the introduction of sales role specialization and re-thinking compensation plans to incentivize the right performance-based behavior. We also added Business Development and Sales Engineering teams to generate faster speed through funnel and more efficient pipeline management. Comp plan changes may be met with resistance but when sellers are spoon fed warm leads to qualify and have a dedicated technical resource assisting in the close, trust me, everyone will be happy.
The Importance of Building a Strong Culture
Rebuilding an organizational culture, especially when it has been deficient or lacking for some time, is paramount to the overall health and success of any company. It's about more than just implementing new policies or systems; it's about fostering an environment where every employee feels valued, heard, and motivated to contribute to the collective goals of the organization. By actively promoting these values, BLOX Digital has begun to cultivate a more cohesive, supportive, and dynamic organizational climate. We’ve also empowered our team to create culture committees and professional development groups. These groups have now evolved into highly-organized committees with a defined leadership structure akin to a board of directors.
These initiatives signify a deeper transformation within BLOX Digital, one that goes beyond surface-level changes to touch the very core of the organization's identity. We’ve also embraced the need to diversify our teams and we make it a hiring priority. It’s statistically proven with too many studies to count that the diversity of a team directly correlates to those that are the most collaborative and deliver the most innovative ideas and solutions. Celebrating diversity and establishing forums for cultural development are critical in making the workplace not just adaptable to changes but also resilient in the face of challenges.
Team Vs. Family
The ongoing success of this initiative has also highlighted something for me that is often overlooked: organizational change is a team sport. It requires the alignment, commitment, and optimal performance of every individual within the company, united under the vision of what the organization aspires to become.
Oftentimes, companies refer to themselves as a family which simply points to the fact that they are dysfunctional, as most families are. The comparison to professional sports teams is a better example. In such high-stakes, performance-driven environments, the concept of a team is paramount. It suggests that every member's contribution is evaluated on the basis of performance, adaptability, and fit within the team's strategic goals. This mindset shift—from a family that might tolerate underperformance due to loyalty or tenure, to a team that prioritizes optimal performance and strategic fit is critical. Much like professional athletes, your team must understand their role, expectations, and the imperatives of continual improvement. Like professional teams evaluating players for competitive edge, organizations must reassess and realign their teams for optimal performance, ensuring each member fits well and actively contributes to collective goals and success.
An interesting way to think about how we evaluate ourselves and our teams.
The Keeper Test, pioneered by Netflix is an ongoing method of talent assessment that enables a company to prioritize its highest performers.
A Call to Action for Leaders
I urge leaders and organizations to embrace change management proactively, armed with a thoughtful plan, communication strategies, and the most forward-thinking minds. The story of BLOX Digital serves as a powerful illustration of the heights an organization can reach when its core components—processes, people, and technology—are harmoniously aligned toward a unified objective. This alignment is critical; it ensures that every facet of the organization is moving in unison towards embracing change, overcoming challenges, and seizing opportunities. By adopting a strategic approach to change, characterized by careful planning, clear communication, and resilient leadership, organizations can most effectively navigate the complexities of organizational change management.
Always insightful, Tony. Very relevant to what I'm doing currently in my new role as well.