Our Approaches to Change

Before embarking on a strategic planning process you should carefully consider the scope and impact of the change you require. How you assimilate change into your culture is very important.

There are two variables to consider – one is the scope of the change and the other is the impact of the change. These two variables can be presented as a double matrix. This matrix forms quadrants which categorise four extremes or approaches.

This matrix may give you a framework to think about the scope and impact you require in any change initiative that you undertake. The Important/Urgent variables could be superimposed on the Scope/Impact matrix as outlined.

Each of these defines four readily identifiable approaches:

1. Total Strategic Innovation: Macro Change with High Impact
2. Personal and Procedural Change: Micro Change with High Impact
3. Routine Change: Micro Change with Low Impact
4. Continuous Improvement Process: Macro Change with Low Impact

Quadrant 1

Total Strategic Innovation: Macro Change with High Impact

Macro change with high impact can totally change the way you do business. It requires a total rethink about your marketing, how you deploy your resources, your processes, technology and infrastructure. This kind of change is transformational, important but usually not urgent. It requires a major rethink about ‘How we do things around here’.Major resistance may occur unless the rationale for such sweeping changes is communicated through several channels and over time to everybody in the organisation. Such changes could include re-engineering, major restructuring, downsizing or strategic innovation. A move from traditional line management to a project or self-directed work team model could be an example of total strategic innovation

Change can take many forms and can have many dimensions from a wide scope, to a narrow scope, and from making a big impact across the total organisation to a more confined impact. Resource deployment, process management and systems engineering will depend on which emphasis to make.

Most business executives have difficulty in identifying where and how to begin business change. So map yourself on the north-south and east-west axes to determine which quadrant you are in right now. More importantly, what quadrant should you be in for the future?

Quadrant 2

Personal and Procedural Change: Micro Change with High Impact

Doing 100 things 1% better can have more impact than doing one thing 100% better. A micro change can have high impact. This inevitably means better management of the moments of impression and inter-relationships between colleagues. Small procedural improvements consistently worked at over time can have a cumulative effect. Everything counts. Everything adds up.

‘What kind of place would this be if everyone around here did things just like me?’ If everyone first identified their own ‘areas for improvement’ and concentrated on improving them, wouldn’t this make a difference? Everyone has tasks within their own area of control, which only they can identify. For many, personal change is perceived as unimportant and not urgent – a mindset of ‘I’m okay in my Comfort Zone’.

Quadrant 3

Routine Change: Micro Change with Low Impact

A micro change with low impact is regular, routine and safe. It may regularise workflow or production procedures. Such change is well within everyone’s comfort zone. If routine changes and improvements do not occur, they can actually cause anxiety and a sense of unrest. In overall strategy terms, however, it is of operational rather than strategic importance. In some industries – for example, the retail trade – there are regular seasonal requirements for change. Such examples could include coping with annual peak production periods or servicing.

Quadrant 4

Continuous Improvement Process: Macro Change with Low Impact

Performance improvement initiatives such as the total quality process, the installation of ISO 9000 Standards, and the development of self-directed work teams have been carried out on a macro scale in many organisations but with, in general, low impact. Some organisations benefited from them, but most have had a low net impact effect on companies.

Continuous macro changes are important improvement interventions. Above all they bring concentration and collective focus to bear on creating business advantage. Humans have a natural tendency to be diverted or become sloppy. So always be on the lookout for a better way not just for the improvement itself, but for the focus it brings.

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