The High Cost of Change

The Bureau of Labor Statistics discovered in 1997 that direct consequences of organizational change (including changes in leadership, a lack of communication or miscommunication), had the following effect:

• Productivity dropped 75% from 4.8 hours/day to 1.2 hours/day
• Social chat and gossip increased more than 100% from 1.5 hours/day to 3.2 hours/day
• Retraining increased 25% from 0 hours to 1.8 hours per person.

This study was before Twitter, blogs and Facebook. One can only imagine the impact of poorly managed change now.  It can go well beyond productivity and morale and can extend to public image and perception.

People are creatures of habit and change can be unsettling.  Organizational change can be anything from a new software program to be learned, to a move to a new location or new reporting structures.  Even staff changes disrupt the group dynamics, “pecking order” or accountability for job duties if an open position isn’t going to be replaced.

Here are some tips for planning and communicating changes:

1)      Know, and be as clear as possible, about what the change is and how people will be impacted before it is announced

2)      Involve people, whenever possible, in planning or implementing the changes so they have some ownership

3)      If a change must be imposed without opportunities for participation in planning or implementation, be open to fielding questions and keep an open door policy.

Remember: When leaders appear secretive or are unavailable during a change, it causes unrest and gossip and speculation. Save yourself and your organization time and money by being open and receptive to communicating about changes in a way that will address people’s concerns.

Marty Stanley helps organizations change by facilitating visioning and strategic planning sessions that really stick. Contact Marty at 816-822-4047  or www.alteringoutcomes.com to see how she can help your organization succeed in the 21^st century.

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