Page 72 - CMA Journal (Nov-Dec 2024)

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Moreover, businesses also need to change proactively to finding out the most viable one, making a
address problems, reverse obsolescence, or to prepare considered review of opportunities and challenges
for unleashing emerging opportunities in the external in the external environment must precede decisions
environment. Ironically, apart from making decisions on relating to change interventions. However,
these considerations, businesses often succumb to sometimes it is ignored. In short, failure to identify
spontaneous vibes. Such as, desire for more profit; objective reasons to change and jumping to
changing for the sake of change - a pseudo activity only solutions blindfolded is a sure recipe for collapse.
to showcase something is being done; impulsively
e) No change can be successful unless the employees
following others; and last but not the least, initiating
change for some illicit advantages of a select group are put into right perspective. For example,
conventionally employees are considered “slaves” or
within a business organization.
“resources.” Unless they are re-defined as
Change interventions require a significant amount of stakeholders in the change process and they are
financial and human investment; besides, they have a accordingly empowered, any change at the
substantial opportunity cost. Hence it is reasonable to organizational level or technology level will fall flat;
say that it must always be well thought and rational. introducing teamwork within the ambit of tall
However, when we change spontaneously, we hierarchies and administrative roles will only create
automatically rationalize our actions and even challenge status incongruence and conflicts; To buy-in
the fundamental principles. In other words, we advanced performance management tools and
rationalize overturning the basic principles in business systems yet ignoring to redesign the administrative
only to achieve our impulsive objectives. “A young CEO of jobs into more empowering ones is futile; and,
a large British bank upon taking over the charge decided introducing state-of-the-art technology without
to prove his worth by increasing profits many folds in the adequately preparing the work environment and
shortest possible time. Conventionally banks by very training employees in the necessary skills is a waste
nature of their business cannot allow high risk assets. of resources.
Nevertheless, the CEO overruled the fundamentals, Conclusion
liquidated its stable loans portfolio, and invested the
same into high yielding but highly vulnerable financial The above analysis provides basis to contemplate that
securities market. It resulted in rather immediate collapse change should essentially create more opportunities,
of the age-old bank.” This is a classic example, while many enhance intrinsic value of a business, fix existing and
similar examples of businesses making less considered emerging problems and last but not the least improve
decisions to change abound. ease of doing business. That being said, change
decisions should always be on considered basis.
Here we learn a lesson that business fundamentals are
Spontaneous change will fail to achieve the above in a
established principles and norms must be adhered to at
all times. Business is inherently value creation process for sustainable manner. Having said, change initiatives
should always be considered rationally and objectively.
all stakeholders meaning everyone wins while gambling
Tentative criteria for a rational and objective change
and interest are exploitive. Hence, business needs to be
initiative are as follows: -
done as a business not as a gambling or interest activity.
Similarly, illicit practices and products can never qualify a) Are the change interventions in logical sequence?
as a business. An attempt to deny the fundamentals can First thing first.
cause disasters.
b) Focus on the outcome of a proposed change – Will
Common Reasons for Failure of Change the new thinking, process or product add intrinsic
Interventions value to the stakeholders, or would it only benefit a
few at the cost of others? Sometimes the outcome of
a) Business as a whole face unconscious incompetence
change remains pseudo.
syndrome – Owners and managers think they are
doing quite well. c) How best can the change be successful in
organizational setting – Employees are key to
b) Owners [management] lack commitment and implementing change. So, we need to ask whether
perseverance to change management.
the change would bring about improvement in the
c) Employees are complacent for they have no personal employees’ behaviors and status quo?
motivation to change – their benefits are already
secured or the problems in the business are not d) Does the business organization have the right
mindset and internal environment necessary to
affecting their status.
make the change successful.
d) Businesses often ignore day-one actions and jump to
About the Author: The author is a seasoned HR/OD professional.
day-two and beyond. For example, zero-in problems, Currently a freelance Management Consultant, Executive Coach
conducting due diligence of multiple solutions and and Author.
70 ICMA’s Chartered Management Accountant, Jan-Feb 2025 BACK TO CONTENTS PAGE