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Everyone is aware of and considers change, but the rate and impact keep accelerating faster than our ability to manage it. In addition, it is happening in all aspects of our lives. As a result, we need to focus more on identifying and understanding change and then developing responses. Here are some recent examples in various environments:
- A Presidential candidate was shot in the ear, and another withdrew from the race in the last few weeks. Neither has happened in decades and we had two together.
- Banks, airlines and other industries were recently shut down because of a glitch in a computer upgrade and have taken days to get back to normal.
- The weather continues to experience more volatility with hotter, more wildfires and more hurricanes etc.
- The pandemic is an event that has impact on change won’t go away. For example, the impact on decreasing the economy in 2020 was followed by a recovery in 2021. Thus, GNP increased an average of 2.9 % between 2016 and 2019. But if you include 2020, it only increased 1.4 % annually. Similarly, between 2020 and 2023 the economy increased about 4 % annually. But if you exclude 2021 it only increased 2.5 % annually. This is significant because these periods include presidential election years and can thus be notable examples of “How to Lie with Statistics!!
- The dynamics of our economy continue to evolve. For example, 60-80 % of letters and checks have been reduced in the last 20 years. We keep focusing on manufacturing jobs but service, entertainment, health, government and entertainment keep growing and are becoming the real strength of the economy.
- Demographics and in particular diversity continue to change. We are getting older, more Hispanic and more geographically in the southwest.
We need to expect, understand, manage and adapt to change. One of the best organizations in managing change are fire departments because they work hard at being prepared for fires. Their major focus is on prevention rather than simple reaction. They then train organizations in equipment, prevention, best practices and responses. Inspections are designed to help organizations rather than focus on enforcement. They also maintain records to be prepared for when incidents occur.
Women’s basketball is another example of adapting to change. The presence of a few new star athletes has caused dramatic multiple increases in attention, attendance and T.V. viewing. Thus the sport has been forced to adapt and improve attention, salaries, facilities, T.V. schedules, security and even travel methods.
While organizations are changing faster than ever and, it still seems we aren’t changing fast enough to keep up. This may be the result of tools that are designed to limit risk and are unable to accept compromise and open systems. For example, changes in Ukraine, mid-term elections, inflation, and economic growth seem to modify our decision parameters almost daily.
We must not only embrace change but be actively working to create transformative change as well. Much attention is often given to analytics, expertise, profits, and science. However, these tools sometimes ignore critical requirements for change and better decisions: passion, focus, trust, effort, risk, and commitment. Unchecked, analytics may hinder transformative change.
Here are some suggestions to develop and execute more transformative change:
- Consider structural changes. Society and business fail to recognize old paradigms and structures are failing. Large corporate structures, like print publications, big banks, and brick and mortar retailers, are all gradual losers, or even worse. Many large companies have tunnel vision, organizational constraints, etc., and ignore emerging technologies and opportunities. They lack the flexibility to respond to the needs of the market and use outdated solutions to new problems. Organizations frequently fail to consider how multiple factors like marketing, logistics, and finance, interact to affect success.
- Imitate small businesses. The success of smaller, more innovative companies shows that many organizations should get smaller, or act smaller, in order to effectively deal with today’s environment. Reducing layers and creating professional cultures are a start. Boards and management need to split up organizations or create more independent groups.
- Invest in innovation. Large organizations say they want excellence, entrepreneurship, innovation, risk takers, etc., but, really, they tend to encourage mediocrity. For example, short term goals, testing, and failure, which are critical parts of innovation, are punished more than rewarded. In short, organizations frequently ignore the advice, “you can’t score if you don’t take a shot.” Analyzing alternatives and their potential consequences can both understand current decisions and develop new ones.
- Look at disrupters. Mackenzie Scott (Jeff Bezos’ ex-wife who has $60 billion) and Melinda Gates are changing the structure of charitable giving. They are focusing on unrestricted gifts (no building or school names), donate significant funds to lesser-known institutions, like black colleges and community organizations, to help transform their entire organization and require minimum proposal and reporting requirements .
- Implement more risk. There are more and greater opportunities. Even in sports, home runs, the three-point play, and passing in football are rapidly increasing as coaching, athletes, and analytics improve. We underestimate the potential of frequently unlimited upsides compared to limited downsides. Test more and accept that failure is frequently a requirement for success. We also need to seek transformative solutions, which may be unknown when we start a decisions process.
- Remember technology is king. Amazon, Google, Facebook, and Apple will survive and grow as they become even more innovative and efficient. Traditional retailers with large real estate platforms and margin requirements are at great risk. Consumers are proving to prefer the perks of working at home, fast delivery, and other convenient Internet processes. Virtual offerings will continue to expand and be utilized and, therefore, they must be integrated into our structures.
- Don’t forget that service, image, and culture are frequently the biggest (and often least expensive) ways for small companies to develop a brand and differentiate themselves. Some suggestions: Focus on your target market and segment your ideal customer. Be polite, listen, and then act based on what you have learned. Become a trusted resource to your prospects by providing useful information that will help them make a viable choice.
So, where in your life, business, or community, do you see a need for transformational change? And what actionable steps are you taking to fuel it? And are you committed to making those actions a habit? Because that is what it takes to truly change. Remember you need the resources, readiness, support and willingness to change.
Related: The Culture of Demographics