In my travels throughout the U.S., I frequently ask the question of corporate executives, “What is the biggest challenge that you are facing related to cost management?” The answer is always, “Gaining internal customers’ buy-in to my proposals and recommendations.” While I agree this is a challenge for all cost managers, we must also realize that the normal response to any proposed change that you would make is RESISTANCE TO CHANGE! This statement is a shock to most executives who believe that they have such good ideas to save money.
This is the misconception that most executives have when they propose even a minor change in products, services, technologies, or practices within their organization: That everyone involved in the decision to change will just fall in love with their idea. In reality, their expectation should be that they are going to have much resistance to their proposed change. Once this fact is understood and accepted, you can then realistically prepare and plan for it.
“The key to understanding the human reaction to change is to understand how important familiarity and control are to people.” This is an astute observation on human nature from the Total Quality Newsletter. This quote opens the window to understanding why management won’t approve our savings proposals and recommendations without first resisting our ideas. It enlightens us that all managers are thoroughly satisfied with the products, services, processes, and technologies they are now using. They are knowledgeable in how they work and familiar with any drawbacks or limitations of the product, service, or technology they are buying. This familiarity gives them great comfort. Any change, even a small one, could give them pain, which they want to avoid at all costs.
However, no change is impossible, as the great teacher and researcher on the subject, George S. Odiorne, believed, “Most people like those changes they cause to happen, for they are adapting as they create the changes….” He further recognized that, “When people participate in making decisions, they make their expert contribution. Thus, they are often able to prevent the kinds of errors which grow out of ignorance. They also acquire more enthusiasm for the decision, or at least have some of their serious reservations removed, and accordingly work more diligently to make the decision work in practice.” Based on these tenets, if we want our management to change their products, services, technologies, or practices, then we must:
1. Have Them Participate in the Change
One of the basic laws of change management is that all parties who are to be affected by the change must participate in the change, thereby giving your customers familiarity with the change and some control over it.
2. Have Them Expect the Change
We can accept even a major change if we expect it and are prepared for it. This is a vital ingredient for successful change management. But if a change is unexpected and inconsistent with our perception, even small changes can turn into challenges.
3. Have Them Believe the Change is Necessary
“Sustained, positive change happens when affected people can be convinced the price from maintaining the status quo is significantly higher than the cost of transition,” says the Total Quality Newsletter. Therefore, to introduce a change in a product, service, technology, or practice, you must convince your constituents that the change is necessary. Change will happen only if they can be convinced that the change is necessary for the organization’s survival.
To summarize, if your internal customers can’t see a good reason for a change, or if they aren’t involved in the change or have some control over it, then you won’t be able to truly make the desired change. If you are to be a change agent for products, services, technologies, and practices at your organization then you must recognize that no one in your organization will be willing to make any change if you don’t get them on your side through involvement, prepare them for the change, and persuade them that the change is necessary.