September 2024 Newsletter
Overcoming Resistance to Change to Improve Sales and Profits
- Change can be one of the hardest (and scariest) things to implement in any company. Preparing for the acceptance of change, and then commitment to change are needed to be successful. But companies are very fluid, dynamic organizations, and without change your sales, profits and your business itself are at great risk.
- Here are the Top 7 Reasons Companies Resist Change and How to Overcome It
- 1. Management (and Employees) Fear They Lack The Expertise To Change
- No one wants to admit a fear they possess. And change requires not only overcoming fear, but embracing all of the new processes and work that comes with it. If you are not capable of implementing change, then seek a business advisor to assist you.
- Changes to a business are extremely necessary at times, and this requires changes in a) skills, b) processes, and c) employees. This fear can be warranted at times. Some employees will feel that they won’t be able to make the needed changes and resulting transition very well. It is management that must show true leadership when change is needed.
- The hard part is that some of these employees may simply not be able to deal with the needed changes and it is management’s job to identify this, train or make a needed replacement in personnel. In most cases, these fears will be unfounded, and that’s why change requires you to be an effective leader and motivator. Sometimes successful change includes new training programs as consistency in new processes and skills are vital to both the employees and the success of the company.
- 2. The Risk of Change is Greater Than The Risk Without Change
- The risk of change may be seen as the case to both management and the staff, and here lies the real challenge. Management must identify and embrace the need for change in order to improve and grow the company. But unfortunately, procrastination is typically the mode of operation believing that things will self-correct and this is where the most costly situation unfolds.
- Making change requires you to commit to move in the direction of the unknown on the promise that something will be better as a result. Making a change is about managing risk. If you are making the case for change, be sure to set out in detailed, truthful terms why you believe the risk is warranted and needed. Make projections whenever you can, as this will greatly help in quantifying the results and bringing clarity to your plans.
- It makes sense to bring in a business advisor, a) given a business advisor's experience in executing and implementing change, and b) it can be beneficial to "blame" an outside business advisor for needed substantial changes.
- 3. Management Needs to Provide Leadership When Change is Needed
- If you see yourself as a change agent and a visionary, communicating a vision is not enough. Get the management team on board with your needed changes so that you or they can demonstrate how the new methods can work. This entails identifying employees and management team members to take ownership and drive the initiative. For most people, seeing is believing and leadership by example can go a long way toward overcoming resistance, with a “Can do” attitude.
- 4. The Old Way is Both Known and Comfortable to All
- If you ask management and employees in a company to do things in a new way, as rational as that new way may seem to you, you may be setting yourself up against firm, established beliefs. But when change is absolutely needed, you and your management team have to step outside of your comfort zone and then communicate and demonstrate to your employees that the changes will result in the needed improvements in the company. Often times, this requires the help of an outside business advisor to plan, organize, support, implement and follow through on the needed changes.
- 5. Employees Can Get Overwhelmed and Resist; a Change in Mindset is Critical
- Fatigue can really kill a change effort, both for individual employees and for an organization. When you’re implementing major changes, be aware of fear of the unknown as a factor in keeping people from moving forward, even if they are telling you they believe in the need for the changes. If a company has been through a lot of upheaval, people may resist change just because they are tired and overwhelmed, perhaps at precisely the time when more substantial change is most needed. If this were to occur, be very generous with praise and with understanding for people’s complaints throughout the change process. Instill in your employees that a change in mindset must occur to adapt and embrace change as improvements to the business.
- When you communicate clearly and regularly the need and the benefits of the change, no matter how painful the process may be, employees will understand for the most part, especially when the entire management team is on the same page and communicating the same message. But that’s not enough, and fear of the unknown can produce further fatigue. You’ve got to motivate and show your appreciation, as well, and be patient enough to let people vent without excessive unproductive negativity. But stay the course. Your clear message needs to include that you are committed to change.
- 6. Employees (and even Management) Can Be Skeptical About Results
- It’s important to remember that few worthwhile changes are conceived and clearly communicated in their best version from the beginning. Skeptics perform an important function of challenging the change so that it can be improved upon prior to implementation. So listen to your skeptics among your employees and management team, because you will gain valuable improvements to your plan for changes. And then reiterate the high level benefits of the needed changes and that their input has value.
- 7. Employees May Not Believe in the Changes and Know It Will Result in Substantial Work
- The truth is, sometimes your idea of change is just not a prudent idea. Sometimes people are not fearful when they resist. They just see that it is not best for the company, the employees and your customers. And even if you are not all wrong, it’s important not to ignore when people have rational objections. What is critical to discern is, are they resisting to change because they truly believe it is not best for the company or are they resisting because they see a lot of work ahead.
- This concept of challenging the quality of the change vs. resistance to change and more work is vital and takes expertise, objectivity and management experience to sift through it. To win people’s commitment for change, you must engage them on both a rational level and an emotional level. Your confidence, planning and persistence in change will make believers in your change.
- CEO Advisor, Inc. is a professional change agent, and we focus on your needs, goals and help you to execute on your plan. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information or to schedule a no cost initial consultation at your office.
5 Ways CEOs Can Continuously Improve Their Performance
Continuous improvement is vital to performing optimally as a CEO. The best CEOs make time for it, because they see it as an investment in themselves and their company that will pay off in real dollars now and down the line. So what specifically can you do as a CEO to improve your skills and performance? Here are 5 ways.
1) Attend a Training Program To Fill Your Gap in Expertise
I have given many seminars on excelling at the CEO position. The biggest excuse I hear from CEOs for not attending is that they don't have time. From my experience the CEOs who do attend are typically the ones who are already better than most. Because of this, they know how to make time to improve their skills that ultimately improve your company. If you think you don't have time to get better at your job, then you are not doing your job properly. Choose the one area where you need the most help, and seek the help you need.
2) Meet with Wise People
As a CEO it is part of your job to find people from outside your company who can bring knowledge and experience to bear on your challenges and goals. Make an effort to get to know people in your community who have relevant experience. Seek out the other leaders in your industry to establish relationships. Or contact a proven business advisor that will commit real time to working with you.
3) Study Yourself
Learning about yourself, how you think and react, is critical to developing as a CEO and overcoming your internal biases. Bullet point what you are an expert in, what you have satisfactory knowledge in, and what are not your areas of expertise. Be honest about your gaps of knowledge, and the areas of expertise you need help. A business advisor that will work with you and mentor you, while helping your business grow, is priceless.
4) Gather Feedback
If you are not getting feedback about your performance, then you have a problem. It is not enough to just ask for feedback and hope it comes to you. You should actively solicit feedback both from your employees as well as your board or outside advisors. Getting feedback from employees will often require an anonymous feedback mechanism or third-party gatherer. Feedback from your advisors should be both informal and formal, as well as, on a regular weekly schedule.
5) Seek Out Advisors
Reach out to those who have gone before you to gain from their expertise and experience. I was the founder and CEO of a software company that I funded, grew and sold to a NASDAQ company in 2003. The CEO job is unique, so make sure you have someone in your circle that has been in the chair and knows the challenges of the job. Avoiding lost time and missteps converts to big dollars in your pocket and propels your company forward with greater value.
CEO Advisor, Inc. specializes in advising on all aspects of growth for small and mid-size businesses. Our mission is to grow your business to the next level, as well as, advise you through the ultimate sale of your company. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
1) Attend a Training Program To Fill Your Gap in Expertise
I have given many seminars on excelling at the CEO position. The biggest excuse I hear from CEOs for not attending is that they don't have time. From my experience the CEOs who do attend are typically the ones who are already better than most. Because of this, they know how to make time to improve their skills that ultimately improve your company. If you think you don't have time to get better at your job, then you are not doing your job properly. Choose the one area where you need the most help, and seek the help you need.
2) Meet with Wise People
As a CEO it is part of your job to find people from outside your company who can bring knowledge and experience to bear on your challenges and goals. Make an effort to get to know people in your community who have relevant experience. Seek out the other leaders in your industry to establish relationships. Or contact a proven business advisor that will commit real time to working with you.
3) Study Yourself
Learning about yourself, how you think and react, is critical to developing as a CEO and overcoming your internal biases. Bullet point what you are an expert in, what you have satisfactory knowledge in, and what are not your areas of expertise. Be honest about your gaps of knowledge, and the areas of expertise you need help. A business advisor that will work with you and mentor you, while helping your business grow, is priceless.
4) Gather Feedback
If you are not getting feedback about your performance, then you have a problem. It is not enough to just ask for feedback and hope it comes to you. You should actively solicit feedback both from your employees as well as your board or outside advisors. Getting feedback from employees will often require an anonymous feedback mechanism or third-party gatherer. Feedback from your advisors should be both informal and formal, as well as, on a regular weekly schedule.
5) Seek Out Advisors
Reach out to those who have gone before you to gain from their expertise and experience. I was the founder and CEO of a software company that I funded, grew and sold to a NASDAQ company in 2003. The CEO job is unique, so make sure you have someone in your circle that has been in the chair and knows the challenges of the job. Avoiding lost time and missteps converts to big dollars in your pocket and propels your company forward with greater value.
CEO Advisor, Inc. specializes in advising on all aspects of growth for small and mid-size businesses. Our mission is to grow your business to the next level, as well as, advise you through the ultimate sale of your company. Contact Mark Hartsell, MBA, President of CEO Advisor, Inc. for a no cost initial consultation at (949) 629-2520, by mobile phone at (714) 697-3370, by email at MHartsell@CEOAdvisor.com or visit us at www.CEOAdvisor.com for more information.
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