Times are changing, technology is more advanced than ever, there is a massive talent shortage, and the fear of the unknown resides in plain sight. This is the current state of many businesses, and it is also known as evolution. For a business to stay relevant, competitive, and successful; they must adapt and evolve to keep up with ever-changing demands of the market, the consumer, and their internal systems.
There are five common stages that occur during the lifetime of a business. Those stages are: startup, growth, maturity, transition, and succession. Each of these stages can vary in lengths and success. Many factors can contribute to this length and success, including the company’s size, their location(s), risks, the product, or services the business provides, as well as the people you have employed at the business. It is wise to make a habit of acknowledging what stage your business is in regularly by assessing the current state of the business against the goals set forth for the future. This can be done by conducting a GAP Analysis, which is a way to compare the business at its current state to their desired state.
While examining your current state and future goals; other factors should be considered, including awareness of the financial state of the business, the success or lack of success within the personnel operations (aka, your employees) of the business, and the overall risks of running a business. It is crucial to stay abreast of the ever-changing risks that may impact your business. This can be done by routinely conducting a SWOT or PEST analysis. A SWOT or PEST Analysis is a way to identify the risks facing the company and solutions to counterbalance the risks, both internal and external.
Regardless of the stage in which your business is in, there are some key rules a business leader should be mindful of. First, change is inevitable. Second, people are your biggest asset. And third, people are your biggest risk. Because people play the largest role in your organization’s success; it is crucial to ensure you have the right people doing the right job.
Whether you are a startup or in the transition stage of the business lifecycle, your people should be your top priority. It should be a common practice that your organization engages with employees through performance appraisals but now more than ever, you should be checking-in on your employees’ satisfaction and engagement levels. A survey from February of 2023 in Forbes Magazine indicates that, “43 percent of middle managers reported burnout, more than any other workgroup.” That means nearly half of people managers are burned out from whatever the current state of the business is. If your people leaders are struggling, assume everyone is, and create a plan to course-correct.
Change management is exactly how it reads, managing change. Change is a natural occurring part of doing business, some change is planned, and sometimes change can be unexpected. The way in which the change is managed is important to ensure success through the transition of a change and continue onwards through the evolution experience.
Change Management is an actual science. Managing change in an organization requires continuous planning and communication as well as the ability to adapt. Regardless of what change your business is facing or what stage your business is in, keeping your people in the loop on how they can impact the success will help in achieving bigger company goals.
When the next stage begins or a new change occurs, start by creating a plan. The plan could be the desired outcome, a list of possible scenarios or roadblocks, a timeline from the beginning to the end, the people involved, and how success of the change is measured. Think of this stage or change as a being a goal and define your goal using the SMART methodology. (S-specific, M-measurable, A-achievable, R-realistic, T-timely). Once a plan is in place, keep your people in the know. If change management is done behind the scenes without including your people, they will still feel the change and without guidance or a clear plan; there may be an increase in fear, panic, and uncertainty. Avoid the dismay and instead, be as transparent as possible without overpromising, and ensure that communication is shared from the top down. Having a clear plan, a back-up plan, investment and buy-in from your people, and consistent communication of the plan will help in creating a successful change, transition, or continued evolution.
There is a lot to be said for organizations that commit thoughtful time and energy on creating a plan for a business change. Spending thoughtful time and energy when making business changes, especially ones that have significant impact to your people; will go a long way with the trust, satisfaction, and loyalty of your people. Again, change is inevitable; if you do it right, people will get on-board and aid through the process of achieving success. If change is done incorrectly, it can be damaging to the business by creating confusion, uncertainty, burn-out, increased costs, unnecessary risks and so much more. Adapt to the fact that your business will change. As part of this evolution, keep handy some important tools to get your business through those changes. Your most valuable tool through the process of change is your people.
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