Why do organizations repeatedly react to rather than plan for change? Why are leaders often stupefied by the glaring realization that their workforces are aging or that their customers have “suddenly” switched allegiances?
Consider the example of Mike, a manager working in the wholesale grocery business. Mike sought my advice to lead his department through change. He had just received a list of his company’s soon-to-be retired employees. The names included individuals from the sales department; the group that he had managed for the past 15 years. Mike explained that although he was aware of the fact that members of his team would be leaving, his company’s succession plan only accounted for the departure of senior leadership.
As we discussed his challenges in more detail, I learned that my client is ultimately responsible for a database worth 70% of the company’s revenues. The salespeople leaving his department have long-term relationships with their customers, accounting for the majority of sales. Mike expressed concerns regarding the timeline to successfully navigate the departure of key personnel, to find new salespeople, to reallocate accounts, to recruit new talent, and to inform customers of staff changes. In short, he does not have a plan in place to manage the exodus and its impact on the business.
Sadly, Mike is not alone. He described an all-too-familiar scenario of an organization that knew the writing was on the wall. Many leaders scramble to deal with the changing dynamics of their workforces while managing the impending disruption simultaneously. The fact that Mike’s company had a myopic view toward succession planning was not the main issue. Rather, it was a lack of strategy to fully anticipate change. His company’s predicament stemmed from their inability to adapt to a fluid business environment.
There is one common denominator for all leaders facing similar challenges: Instead of leading change, they are led by it. Organizations can significantly reduce many headaches by implimenting the following proactive approaches:
Make on-going business education a priority for managers
Successful organizations cannot operate in a vacuum. To keep up with the rapid pace of change, it is crucial to have a thorough understanding and appreciation of current business and technology trends. Leaders need to hone essential skills and knowledge about workforce demographics and deepen their understanding of their employee’s needs and preferences. If you lack awareness and information, your business will inevitably operate reactively instead of proactively, preparing for and anticipating changing market conditions.
Evaluate your level of intuitiveness regarding shifting trends
Are you taking pre-emptive steps to update your offerings and be where your customers are going?
Customer satisfaction and relationships with clients do not guarantee customer loyalty. It is not uncommon for customers to take their business elsewhere for reasons that may not be fully understood. Today’s business environment demands that companies keep up with customers who are quick to adopt new technologies for their ease of use, immediacy and cost-effective benefits. If a new player moves into your traditional space, offering innovative solutions to match your existing customers’ needs, their loyalty to your products and people may fade rapidly. Stay ahead of the curve to maintain their trust and confidence.
Frequently revamp your recruitment, retention and retirement models
The alarm bells have been ringing loudly and clearly for years regarding the impact of an aging global labour force. Despite the fact that this is no longer a surprise, the preferred strategy for many leaders in almost every industry is to bury their collective heads in the sand and defend the status quo. As a result, organizations remain ill equipped to attract, recruit and retain new talent, as well as manage the retirement process.
Mike’s example serves as a great reminder regarding the importance of anticipating change. Harnessing a progressive, innovative strategy to manage your workforce and remain competitive is the new imperative for survival.
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