Monday, June 18, 2012

Organizational Change Plan


As much as some hard nosed managers would like to believe that corporate culture is irrelevant to the bottom line, they would be wrong. When there is a major organizational change, the transition of the culture becomes even more relevant. Sure there are many other aspects of change that directly affect the bottom line, but if a smooth transition of culture does not happen then the change can be very bumpy and costly.

Doing this is difficult, but it can and must be done if a competitive advantage is to be obtained as a result of the change. This can be done by focusing on the following points:

1. Involve employees in the success and progress of the company. When people feel like their job matters, then they tend to work harder to succeed. If they feel like they don't matter, then they will work to that level, but if they feel like they are important and valued, they will work as if they are.

2. Regular meetings with employees. Including employees in meetings in which they feel free to express their real concerns without being scorned or punished is essential to employee satisfaction and success. They should also be taken seriously in their suggestions, not simply listened to, but ultimately ignored. Oftentimes the best ideas come from the bottom, not the top.

3. Clear direction to middle managers. These are the connection between the bottom and the top and during a reorganization, they must be totally in the loop. Nonetheless, they must be allowed a degree of freedom in which to operate within these directions and allow the same freedom to their subordinates.

4. Positive culture. A culture in which employees are respected and treated as such is one that sees high employee retention and a big bottom line. Is it any wonder that the companies with the highest employee satisfaction ratings are usually the most successful?

5. Rewards. Especially during reorganization, awards like trips, bonuses, etc. cannot be eliminated. Equivalent ones may replace them, but if any incentives are removed, employee spirits will be crushed and employee productivity will suffer.

6. Set up a complaint mechanism. You can never satisfy everyone, and sometimes you may satisfy no one. So employees need a place that they can complain and their input will be taken seriously and a fair resolution reached.

Without these steps being taken, organizational change can be crippling. Often change occurs as the result of a need for improved efficiency and productivity, but can do just the opposite if it does not include employees like it should.

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