6 days ago
Developing change competency
There is an underlying reason why some corporate giants have fallen from their leadership positions. Too often, it is not due to a lack of knowledge, skills, or technology. A case in point is Nokia, which had developed a prototype touchscreen phone before the iPhone was launched. In fact, its smartphones were technologically superior to those of Apple, Samsung, or Google in the late 1990s and early 2000s. However, it failed to respond to technological change — even changes already within its reach. Its leaders were not resilient to shifting customer demands and were slow to react to growing competition.
Similarly, Kodak's downfall was not due to a lack of know-how or the absence of digital imaging technology. In fact, it was a Kodak engineer, Steve Sasson, who invented the first digital camera in 1975. However, his invention received an unfavourable response from corporate leaders. One executive allegedly remarked, 'That's cute, but don't tell anyone about it.' Kodak's inability to embrace digital photography reflected not a technical deficiency, but a lack of readiness to capitalize on technological change. This failure stemmed more from mindset limitations than from deficiencies in skill set or tool set.
Change competency encompasses more than just knowledge, skills, and technology. It is a set of behaviours, often driven by individual mindsets, that enables people and organizations to adapt to changing environments. Based on our work in consulting and training, there are four key areas of change competency that determine whether companies sustain success — or fall from grace.
1. Change Relevance
In our consulting engagements, we have observed many companies undertaking changes that bear little or no relevance to their vision, mission, or objectives. Often, these changes have minimal impact on improving the bottom line. While some initiatives may have indirect benefits, it is critical to assess their measurable return. For example, consider training programs: a test of relevance lies in evaluating the return on investment (ROI) and how the training has positively influenced organizational performance. Change relevance is vital because if people do not perceive how a change initiative supports the company's core goals, their motivation and effort will quickly fade.
2. Change Readiness
Many companies fail simply because they are not ready to embrace change. Preparing employees in terms of knowledge and skills is often the easier part. The real challenge lies in addressing people's mindsets. If concerns and fears surrounding the change are not acknowledged and addressed, resistance will surface during implementation. That's why in the early phase of our change consulting work, we conduct a Change Readiness Assessment (CRA) to gauge stakeholder preparedness and identify specific concerns. This allows change agents to anticipate challenges and plan accordingly. To improve stakeholder readiness, we frequently conduct a 'Changing Mindset' program to secure buy-in by demonstrating the benefits of the change — not only for the organization, but also for the individuals affected.
3. Change Resilience
Change resilience is an organization's ability to weather turbulence — whether in the form of setbacks, crises, or disruptions. It refers to a company's capacity to recover from such challenges while remaining stable and effective. According to Jim Collins, author of Good to Great, 'The good-to-great companies faced as much adversity as the comparison companies, but responded to adversity differently. They hit the realities of their situation head-on and, as a result, emerged from adversity even stronger.' Building this resilience enables organizations to respond effectively to unforeseen events while sustaining performance.
4. Change Implementation While many change agents are skilled in diagnosing organizational issues — producing comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PEST (Political, Economic, Social, and Technological) analyses — success ultimately hinges on execution. A good action plan is only as effective as its implementation. If people are not mentally and emotionally prepared for change, resistance will follow and derail execution. Successful implementation demands courage, determination, and perseverance. It requires a strong will to overcome resistance and drive the change forward.
To sustain long-term success, companies must develop change competency by integrating change relevance, readiness, resilience, and implementation effectiveness. To boost this competency, they must also learn to respond quickly to shifts in the business environment through dynamic experimentation, improvisation, and innovation. Organizations that are open and responsive to change develop the resilience and adaptability needed to thrive under harsh conditions and in uncertain times.
