How To Be a Better Change Agent

Editor's Notes

• #2: Hello, my name is Augie Ray, and I am a Research Director covering customer experience for marketing leaders at Gartner. For 20 years I have been an early adopter and advocate of things like the Web, social media, mobile technology and virtual reality, not only in my personal life but also professionally as well.  So, I’ve been there. I’ve been a change agent. But I’ve also been a guy who has run into professional roadblocks, who was told by leaders that my ideas were risky and who was sometimes ignored and marginalized by more serious, more cautious and more powerful leaders. I have been told I’m a square peg in a round hole—does that sound familiar to any of you? So, rather than a square or a circle, we’re going to focus on a triangle, or the Greek symbol of Delta, which is used in science and math to denote change. Today, I want to share with you some research I have done personally to study how I, and you, can be a better change agent.
• #3: We all recognize the need to change, both in our personal lives and in our businesses. So why is it so damn hard?
• #4: This statistic has been widely repeated since 1993 when researchers quoted this as an “unscientific estimate.” Honestly, it has appeared in hundreds of articles in the past two decades, but is it true? I think the fact it has been so often quoted for so long suggests it matches what our gut tells us, but whether or not the failure rate is exactly this high, but what is the hard data? http://www.bcs.org/upload/pdf/markhughes-060910.pdf
• #5: Here are some recent studies on change, and they demonstrate that while that 70% figure may not be accurate, the obstacles to change and the ramifications of failing are profound. When only half of business executives say change initiatives are adopted and sustained and 1 in 6 large IT change projects go so badly they threaten the existence of the company—that’s really telling us something… http://www.mckinsey.com/business-functions/business-technology/our-insights/delivering-large-scale-it-projects-on-time-on-budget-and-on-value http://www.geneca.com/75-business-executives-anticipate-software-projects-fail/ https://www.towerswatson.com/en/Press/2013/08/Only-One-Quarter-of-Employers-Are-Sustaining-Gains-From-Change-Management http://www.strategyand.pwc.com/reports/cultures-role-organizational-change
• #6: Change is hard. Change takes time. Change entails risk. Change puts people jobs at risks. So, if we want to embrace change, we must realize three realities of change…
• #7: First of all, there is no such thing as a change agent. That may sound odd considering I’m talking about being a better change agent, but being a change agent is a skill, not an ability. It is not something you are either born with or no but a something you can improve upon. All of us are change agents—none of us gets the luxury of waiting for others to change us. What this means is that we all need to sharpen our skills. Second, no matter how much business leaders say they want change agents, being a change agent is risky. Change agents fail; they stumble in their career; they can damage their reputation. We all must appreciate that advocating for change entails risk, so we must be aware of the risks and mitigate them. Finally, people hate change. We humans like to feel safe and comfortable, and change is risky and discomforting. Change is hard work, and no one likes to be forced to change. To succeed as a change agent, we must know how to inspire people or we will fail. If we do these three things—sharpening our own skills, mitigating risks and inspiring people—we can succeed at leading change. Let’s explore each of these one at a time…
• #8: …starting with the skills and habits you need to be change agent. There are three broad categories of skills one needs to be successful at leading change. People skills, emotional skills and critical thinking skills.
• #9: The first three are people skills—the skills to build and maintain a network, communicate effectively and facilitate conflict. The next three are emotional skills. Some people believe these are innate to personality, but all are skills you can build with practice—you can develop the skill to stay positive and resilient in the face of obstacles, the skill to be patient with people and processes and the skill to recognize your impact and be cognizant of your biases, strengths and weaknesses. These first two sets of skills—people and emotional—are ones needed by any leaders, but these last three are crucial ones for change agents. These are critical thinking skills—the skills to love constant learning, to challenge conventional wisdom and to constantly gather and analyze information to reach smart conclusions. Me saying “go gain a new love of learning,” is not helpful, is it? Instead, I want to focus on how changes in habits encourage development of new skills. If you don’t change what you do, you cannot develop new skills. Simple as that. We don’t have time to explore all nine, but I do want to concentrate on the habits that develop these last three critical thinking skills… https://unsplash.com/search/skills?photo=xEy9QNUCdRI
• #10: You can’t lead change unless you are one of the first know change is necessary. You need to be hungry for information. Starving for it, in fact! Schedule time—really schedule—put it on the calendar. Adopt tools to find great info and save the valuable stuff. Evernote has a free browser plug-in that makes saving information as easy as clicking a button. The last habit is one I highly recommend—it turns all that effort into staying informed into something beneficial to you beyond just becoming a better change agent. Once you start to engage with others and collect an audience, it becomes yet another reason to stay on the prowl for pertinent information. Let me ask you something—if I go to your LinkedIn profile like a hiring manager might and look at your recent activity, what will I see? No activity? Do you like a lot of Successories-style vapid memes and selfies of strangers who got a promotion? Or will I see someone hungry for news, eager to expand their knowledge and driven to inform and educate others? Get in the right habits to develop a love of learning, and you will reap benefits.
• #11: You can’t advocate for change if you think like everyone else. This means you have to—with apologies to Apple—think different. Most people gravitate to comfort—to be a change agent, you must do the opposite. When everyone has been doing something the same way for a while and there is consensus it works, that’s when change agents get uncomfortable. Most people are obsessed with best practices within their industries—change agents seek info outside of it. What can we learn from Uber’s rapid rise? From Disney MagicBands? From Borders’ failure and Best Buy’s success? When everyone says, “Yes, this is a new trend,” that’s when change agents ask why. Don’t merely zig when everyone zags—that’s just being disagreeable--but question everything and develop your own POV. 
• #12: Passion is necessary to fuel the fires of change, but passion never wins the day by itself. What you see may be right, but being right is not enough. You must know why why it matters, how to act and what it will do for the company. First things first—the attributes that make you a stronger change agent may also cloud your judgment and make it difficult for you to analyze and communicate objectively. Here is where those networking skills come in handy—explore ideas with your network, listen to their objections, and seek help from mentors. One thing change agents do wrong often is they brush past the risks, fearing any mention of risk will send leaders scurrying for safety. That is wrong—leaders understand risk and need to know you do too. What are the risks of changing, and how can they be mitigated? What are the risks of not changing? Finally, identify and prepare for objections and make a dispassionate case. Be a contrarian to your own idea in order to make it bulletproof. When you can no longer disprove your idea, it is then and only then a logical case.
• #13: We just spoke a bit about risk in your ideas—the need to embrace risk, not hide from it, and consider ways to mitigate the risks of your change ideas. Now let’s talk about the risk to you. How do YOU mitigate the risk of being a change agent?
• #14: Ron Johnson has been a tremendous change agent in his career. In his 15 years as Target’s VP of Merchandising, he introduced design partnerships that changes consumer perception of Target from a place to go for cheap product to the place to go for stylish and affordable products. In his 12 years as Apple’s Senior Vice President of Retail, he introduced the Apple Store concept at the same time brands like Gateway were shuttering their stores. Ron Johnson had an incredible record of success for almost three decades before joining JCPenney, a retailer everyone recognizes is facing serious challenges. He lasted just 18 months as JCPenney’s CEO, being dismissed after his bold plan to revitalize the retailer ran into difficulties with both shoppers and shareholders. http://www.businessinsider.com/jc-penney-worst-quarter-in-retail-history-2013-2
• #15: It is important to realize that Johnson was brought in as a change agent. He had the support of the board. He also had the support of the shareholders: Penney’s stock rose 17% on the news of Johnson’s hiring and rose another 24% in the three months after he started. And yet, little more than a year after that, he was gone. Headlines used words like “Disaster” and “humbled.” What happened? http://fortune.com/2016/05/16/ron-johnson-penney/
• #16: So, what went wrong? Hindsight is 20/20, but people point to many things. In his desire for new, hipper shoppers, he alienated JCPenney’s existing bargain hunters. He replaced promotions, sales and clearance racks with the same pricing strategy that worked for iPhones. He stopped the brand’s 590 sales promotions per year with one per month. And he also replaced brands JCPenney shoppers came for with brands they could not afford. He adopted Steve Jobs’ disdain for tests and refused to pilot his ideas. He tried to rapidly change the culture of enormous, conservative JCP, with its 159,000 employees and 1,100 stores, into that of a startup. He actively discouraged diversity of thought, punishing skeptics of his plans. And he changed much of the senior leadership group, who understood the business, in favor of former associates from Target and Apple. One former Apple exec called the existing JCPenney leaders DOPES--dumb old Penney’s employees. http://fortune.com/2014/03/20/how-to-fail-in-business-while-really-really-trying/
• #17: It is apparent Johnson felt he had the “capital” to weather any storms and do what he want. Capital is, in fact, one of the building blocks of change. Johnson came in with a lot of it and “spent” it all rapidly. Johnson tried to replicate what worked for Apple without taking time to recognize what his customers wanted. In his desire to attract new customers, be abandoned JCPenney’s existing customers too quickly. Johnson also emulated Steve Jobs, but the process that worked for a high-tech company with a small set of products aimed at a high-margin niche audience didn’t work well with a mass-market retailer with 1,100 stores. He didn’t test his ideas and he implemented changes more quickly than the system could accommodate. Johnson knew he needed to change the culture, but culture changes slowly and you have to know and respect the existing culture. Finally, he failed to value existing talent, treating people as if they were unwilling or unable to change. He mistook skepticism and candor for disagreement and disloyalty, alienating people and depriving himself of a diversity of perspectives.
• #18: None of us will find ourselves in the situation where a board of directors brings us in as CEO of a Fortune 500 company with a public mandate to change. We will never have as much capital as Ron Johnson. If he could fail with all of that capital, it should tell us something of the importance of understanding how we gain or lose necessary capital. You need capital to initiate change, you need more for the period during which success is uncertain and you need still more to survive the small or large missteps that can occur. Experience earns capital. Success earns capital. Working hard earns capitals. So does networking--find senior executives to mentor you and sponsor your initiatives. Build a network, earn trust, help others, and leverage the network to improve your ideas. At every step, seek and document approval and support. Don’t go too far out on the limb, for if it breaks, you’ll be left with no backing. Own up to mistakes fast and solve them faster. Done right, you can snatch victory from the jaws of defeat and earn capital for your candor, responsibility and action. Done wrong—waiting for someone else to point out problems or shirking responsibility—and you can drain you capital reserves quickly.
• #19: With all due respect to you and me, we are not Steve Jobs or Walt Disney. They could envision bold new consumer behaviors and needs, but chances are our organizations won’t act unless we connect the dots and make it relevant to the customer. Gather data and information about customer needs, behaviors and perceptions to ground your plans. Never forget your current customer as you pursue new ones, and make sure your idea to attract new customers fits the organization’s strategies. Nothing will kill your carefully planned idea faster than “That’s not our customer.” If you hear that, you’ve just dedicated a lot of time and spent a lot of capital developing an idea for the competition, not your own company.
• #20: Here’s something we should all recognize: Business leaders may be intrigued by ideas, but they invest in solutions and plans. Also, realize that process frustrates change agents, which is why it is twice as important they respect the process. You are more likely to get approval and support for your idea if it has a plan that: Describes not just what you’ll do but how you’ll do it. Recognize where your strengths are and seek out assistance from people who know how to build out a plan in the manner people within the organization expect. Offers stages so that the idea can be tested frequently, risks limited, problems addressed and midcourse corrections implemented.
• #21: Change agents are quick to recognize the ways current corporate culture stands in the way of success, but culture changes slowly and working against current corporate culture only creates a headwind. You can mitigate risks by: Aligning to current strategic initiatives—find ways to help the company achieves what it wants to rather than suggest it achieve something completely different. Understand the corporate organization, recognize what different parts of the company want to achieve, and identify where you can expect quick support and where you will need to work harder to understand overcome objections. Finally, change agents can be square pegs in round holes—at every chance, demonstrate you understand and reflect corporate mission and values, in other words, that you understand and respect the principles of the organization.
• #22: Because people are so important to the change process, we’re going to focus on them in our third and final portion of the presentation…
• #23: No one likes to be changed. No one wishes to be moved out of their comfort zone. No one enjoys being told their skills are becoming obsolete. People hate change, and it is the change agent’s job to inspire people to embrace it. Here’s how…
• #24: It is difficult to get a man to understand something, when his salary depends upon his not understanding it! Ecommerce example—if you’re job is merchandising goods on store shelves, designing physical stores, picking locations or the logistics of delivering items to 1,100 stores, you are not going to get excited about ecommerce. https://unsplash.com/search/money?photo=ZKVBM2_Dp84
• #25: People do what you pay them to do, not what you tell them to do. It is damn hard to get people change if you do not alter the goals and the ways employees are rewarded. Find the right behaviors, define the proper goals and metrics and consider ways to reward people for changing behaviors. Wells Fargo example.
• #26: And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom. https://unsplash.com/search/blossom?photo=HDhSLqszOMk
• #27: Nobody changes until the pain of changing is LESS than the pain of not. Change threatens people’s livelihoods—don’t expect people to sign on if they are uncertain what it means to their jobs. Don’t be the person telling people their future is terrible—be the person who shows them how they can have a better future. It can help to GENTLY raise fears and apprehension, but only if you make it about them. Great change agents position change not just in terms of what it means to the customer or the bottom line but about the employees, as well. That means it is your job to…
• #28: Create a positive vision: I alone cannot change the world, but I can cast a stone across the waters to create many ripples.
• #29: When you tell people about the risks of not changing, pair it with information on the benefits of changing. Think through a support plan for employees—what training, what support, what information, what coaching will they need? Plan for the time and resources necessary. And…
• #30: Involve people. You teach me, I forget. You show me, I remember. You involve me, I understand. https://unsplash.com/search/group?photo=9cx4-QowgLc
• #31: Listen to hopes, ideas and concerns. Tell people what must change and give them a voice in how it should be done. Become familiar with Tuckman's stages of group development. It’s a simple but effective way to make sure you think through the stages and give groups time to change. It also stops you and others from panicking when you’re in the storming stage.
• #32: To be a better change agent: Adopt habits that improve your communication, emotional and thinking skills. If you don’t change your habits, you cannot develop new skills. Know and mitigate the capital, customer, process, culture and people risks. Be aware of how you add and subtract to your bank of capital. And in a world of ever rapid change: He or she who helps people embrace change rules the world
• #33: When you're finished changing, you're finished, and I’m finished with my presentation.