Change must be fun
By Dr. Burkhard Schwenker
We need to think strategy again. Even outstanding business models have ever shorter half-lives, returns on innovation are shrinking faster and faster and competitive pressure is intensifying. In the long term, the answer is not simply following the latest trends as best as possible, making quick adjustments or optimizing the existing business. Companies (often) fail to tackle long-term scenarios and are not willing (or rather don't have the courage) to completely reorganize their business.
Long-termism and the ability to set trends have always been German and European strengths. We must regain and build on these strengths.
In the 90s, companies were more willing to change. This was encouraged by the first business reengineering concepts, which were then developed into strategies for corporate transformation. The goal was not to keep up, but to gain a lead by providing new offerings, new processes and structures, and mobilize as many employees as possible. German companies made huge advances because of this during that period of change management.
We therefore have a wealth of experience we can draw on. This is important because to think strategy again, we have to keep our feet on the ground and not fall back into traditional top-down strategies. Transformation rests on two pillars: creative, analytical strategy work and genuine employee involvement based on sound and properly planned change management.
Successful change management should rely on strategy task forces (rather than forlorn strategy departments), town hall meetings with top management, targeted job rotation, corporate academies, quality campaigns and value workshops. After all, strategies can only be effective if employees understand and live them. To be successful, transformation must therefore be based on an open corporate culture. In other words, change must be fun. To achieve this, change management must convey a sense of security.
Together with INSEAD, the French business school, we conducted a study on the success of change management projects. The study revealed that such success primarily depends on leadership and communication. Why? Because mobilization for no real reason and without a worthwhile goal will fizzle out quickly – employees will sense that the effort is not sincere. What's more, transformation requires time and patience. Lasting cultural change cannot be achieved in two years. This is why we must think long term once again.
(This column was published in "Handelsblatt", dated December 5, 2005)
