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The Human Dimension
But change masters know true transformation is not about technology or economic factors. It's all about what sociologists call "the collective action dilemma" -- that is, how to get self-interested individuals to work together.
We asked respondents whether their organizations understand the human dimension of change. Interestingly, and possibly because of their size, midmarket firms fare better in understanding the human dimension than do large firms (see Figure 3).
The CIO at a transportation company says understanding the human element really involves managing the human resource-related costs of change. "Usually what gets under-budgeted in change initiatives are the people-related costs. For all business-IT projects, I budget supplemental bandwidth for the business. I need the A players in the business to have the bandwidth to leave their 'day jobs' so that they can become the champions for the new way of doing business."
Change masters also understand what makes new ways of doing things so difficult. A consultant who specializes in guiding midmarket companies through major transformation observes, "It is a complete myth that people don't like change. They love it. Transition is what sucks. If you don't help people through transition, they resist the change whether it is good for them, good for the company or good for nothing." Change masters know this: People don't dislike change; they dislike changing. Getting from the as-is to the desired state is what is so painful.
The CIO at a California-based retailer breaks down the stages of resistance throughout the change lifecycle: "During the design phase, user resistance came in the form of naysaying new ideas and operational processes," he explains. "During the training phase, it was user resistance to managing as effectively. During the implementation and rollout, it was denial about the accuracy of the reports. In all these phases, there was also resistance from senior management, who needed to be 'trained' on how to effectively participate in the project and support the process."
This executive goes on to say that instituting successful change may involve changing people's jobs. "The model of one person knowing and then sharing information is being replaced by the availability of information to anyone on the project. Of course, automating work processes and the perceived greater reliance on technology -- rather than the individual -- had to be dealt with. Also, the fact that analysis was going to be a bigger component of a person's job was new. Many folks had come to believe that their true value was in gathering and processing data rather than providing information. We are changing people's jobs."
The CIO of a high-performance airline says that, inevitably, organizational transformation creates winners and losers. "Before embarking on the change, you have to be willing to part company with those who do not get on board with the new way," says this CIO. "I have never been through a change exercise where everyone made it to the other side. I try to get as many as possible into the boat by really focusing the approach on what's in it for them."
The chief architect at a global philanthropy organization says serious organizational change doesn't allow for the luxury of democracy; those at the top can't brook dissent. "No quibbling was accepted. For those who had trouble buying in, we brought in a new guard."
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