Navigating the Fallout of Implementing a New Strategy: A Guide to Leading Cultural Change

Implementing a new strategy in any organization can be both exciting and challenging. While the prospect of increased profits and efficiency is enticing, it's equally important to prepare for potential negative consequences and internal resistance. This article explores the key takeaways from the ExecuJava group discussion on addressing the fallout of implementing a new strategy, especially when it involves a cultural shift within the organization.

1. Define the Long-Term Vision

Before embarking on a strategy change, it's crucial to articulate the long-term vision behind it. Leaders should ask themselves why they are changing the status quo. Is it to achieve financial growth, stay competitive, or provide better opportunities for employees? Sharing this vision with the team helps them understand that they are a priority and that growth benefits everyone. Additionally, be sure to communicate the negative consequences of not changing, such as stagnant salaries and decreased competitiveness.

2. Involve Employees in Defining the “Why”

To garner buy-in from employees, engage them in defining the "why" of the change. Encourage them to answer why the organization needs to shift its strategy—the answer doesn’t always have to be from the leader. This approach is particularly useful when dealing with detractors and then finding champions within the team. Recognize that employees may fall on a bell curve in terms of their willingness to embrace change, from resistance to enthusiasm, and adapt your approach accordingly.

3. Encourage a Culture of Constructive Push-Back

Create a culture where push-back and realism are welcomed. Encourage employees to challenge ideas constructively and think beyond the status quo. Foster an environment where people feel comfortable pushing boundaries in a healthy and positive way, focusing on big ideas rather than grumbling.

4. Address the Transition Phase with Empathy

Recognize that people don't fear change itself but the transition phase. During this phase:

• Hold "pep rallies" with individuals and groups to provide praise and pep talks.
• Strike a balance between bringing people along and seeking their permission, ensuring the change is not solely dictated from the top.
• Acknowledge and incorporate everyone's ideas and thoughts. Instead of dictating changes, invite input by saying, "I think we should do X, what do you think?"
• Be vulnerable as a leader by asking, "What am I missing? How can we improve this idea?"

5. Implement a Change Management Model

Consider a change management model that focuses on culture and acceptance, not just processes. The model should include five stages:

• Awareness: Explain why and what could happen if the organization doesn't change.
• Desire: Clarify what's in it for each employee.
• Knowledge: Provide the necessary training and education.
• Action: Empower employees to implement what they've learned.
• Recognition/Reward: Celebrate successes, learn from failures, and keep employees engaged.

6. Prepare for a Long Journey

Realize that change is a 12-18 month journey. Stay engaged with your team throughout this period and meet them where they are. Identify someone on your team who can help maintain focus on the change initiative, as leaders often move on to the next thing too quickly.

7. Expect and Embrace Challenges

Acknowledge that challenges and adversity are part of the change process. Prepare the team for unexpected obstacles and emphasize the organization's capacity to pivot if needed. Implement steps like milestones and red flag meetings to manage through obstacles and demonstrate that it's okay if things don't go perfectly.

Implementing a new strategy that involves a cultural shift within an organization requires careful planning, open communication, and a commitment to involving and engaging employees at every stage. By focusing on the long-term vision, creating a culture of constructive feedback, and being prepared for the journey ahead, leaders can successfully navigate the fallout of change and drive their organizations toward growth and success.

Article summarized by LeAnn Case from a discussion with members of the #ExecuJava group: Steve Albers, Eric Berg, Troy Case, Brad Crandall, Norm Creveling, Nicki Gibbs, Matt Lasiuta, and Wendy Neu.