This blog post summarizes episode 37 of the Harmonious Workplaces podcast, “Scary Stories of Change Management Gone Bad.” The episode features host Rich Cruz and his colleagues, Sharyl Volpe and Ben Kleinman, discussing their experiences with poorly managed change initiatives and providing tips for handling such situations.
The episode begins with the hosts acknowledging the prevalence of “scary stories” related to change management in the workplace. These stories often leave lasting negative impacts on organizational culture and make it harder to engage employees in future change efforts.
Ben’s Story: The “Master Of The Universe”
Ben shares a story about a large U.S. company that acquired a smaller foreign company with valuable intellectual property and a unique dataset. Despite the potential benefits of the acquisition, the integration process was plagued with issues for over 12 years. Ben attributes this failure to the smaller company’s leader, who exhibited “dark triad” personality traits like narcissism and Machiavellianism. This individual’s behavior created a toxic environment and hindered collaboration between the two companies.
Ben points out that despite the larger company’s positive culture and values, they failed to address the issue with the problematic leader. This created a double standard that was evident to employees and further eroded the organization’s culture. Ben highlights the importance of holding even key leaders accountable for their behavior to prevent them from damaging the organization’s culture and mission.
Sharyl’s Story: The Elite Bank Merger
Sharyl recounts a story from the early 2000s about a merger between two investment banks with vastly different cultures. The bank Sharyl worked for had an “elite” reputation, which created resistance to the merger with the other, less prestigious bank. The company’s attempts to force the integration, such as prioritizing the other bank’s logo and discarding existing materials, further demoralized employees.
The situation worsened when the elite bank’s CEO stepped down and was replaced by the CEO of the other bank. This move was not well-received internally, leading to a decline in morale and potentially impacting productivity. The culture only began to recover when the original CEO returned to the company. Sharyl emphasizes the importance of understanding and addressing cultural differences during mergers and acquisitions, as well as the need for effective change management to guide employees through the process.
Rich’s Story: The ERP System Rollout
Rich shares his experience as an operations manager for a music retail company during the implementation of a new ERP system. The rollout was poorly managed, with no employee input or adequate training. This resulted in resistance to the new system, with employees clinging to the old ways of doing things. The lack of clear communication about the purpose and benefits of the new system led to disengagement, a decline in work quality, and ultimately, employee turnover.
Rich’s story highlights the importance of employee involvement, communication, and training during change initiatives. He emphasizes the need to articulate a compelling “why” behind the change and ensure that employees understand the benefits and their role in the process.
Key Takeaways And Tips For Handling Bad Change Management
Based on their experiences, the hosts offer tips for navigating challenging change situations:
- Regulate your emotional intelligence: Maintain perspective and avoid getting caught up in the drama surrounding the change. Don’t allow others to control your emotions.
- Focus on the purpose: Understand and consistently communicate the “why” behind the change, emphasizing the desired end state and the benefits for everyone involved.
- Take a step back: Pause, breathe, and gain perspective on the situation. Try to assess the situation objectively and determine the best course of action.
The episode concludes with a call to action: “Make change your friend.” This serves as a reminder that while change can be challenging, it doesn’t have to be a negative experience. By approaching change with the right mindset, tools, and strategies, individuals and organizations can navigate change successfully and achieve positive outcomes.
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