Managing Change In Small Businesses

• Understand how successful change works.
• Accept that change is inevitable.
• Understand that change can be positive.
• Understand the human issues of change.
• Identify and work through your "owner" reaction to change.
• Recognize the symptoms of change
• Deal with the symptoms of change.
• Avoid mistakes that can prevent success during change.
• Lead, guide and coach employees.
• Employees are more confident, motivated, committed, and satisfied.
• Achieve successful change - reach strategic and financial goals.

Common Emotional Reactions to Survivors To Downsizing

• Fear, insecurity and uncertainty - from layoff
• Frustration, resentment and anger - are common emotions
• Sadness, depression and guilt - survivors may mask depression and sadness
• Unfairness, betrayal and distrust – blaming management and others

Coping Methods Employed By The Survivors

• Some are unhealthy for the individuals and the organization
• Reduced risk taking, rigid posture – reluctant to take on new tasks and initiatives
• Lowered productivity – survivors may be preoccupied with seeking information
• A unending need for information – rumors, gossip, are informal ways to get information
• Blaming – each level may blame the above level
• Denial – the higher up in the organization the stronger the denial may be

Symptoms That Persist and Intensify

• If intervention does not take place, survivors’ symptoms persist and can intensify
• Increase in fatigue and depression – occurs with loss of hope, when change continues
• Stronger sense of control loss – many workers hang on
• Heightened and more focused anger – more intense blaming and scapegoat behavior

How To Assist Your Employees To Adapt And Thrive In Transitional Times:

• Be fair
• Be visible and available
• Use interactive feedback
• Elicit solutions to problems from employees
• Reinforce the need for the change
• Encourage a collaborative attitude
• Admit when you lack information
• Clarify new roles and relationships
• Prepare and support employees
• Be prepared for the grieving process, it always occurs
• Identify the workers that are experiencing losses and the specific losses
• Appreciate the meaning of the loss for the employee
• Recognize that employees resist the fear of the unknown, the losses, the endings, and the inadequacies that accompany major changes
• Understand employees person experience fear and anxiety from increased work loads and higher performance expectation
• Understand that losses may involve the severing of a relationship with trusted co-workers and loss of a level of comfort and familiarity
• Employees examine personal issues: potential geographical transfer, loss of a home, personal friendship, status in the community
• Engage in open and emphatic communication during the entire change process
• Listen closely, carefully and intently to the distress the worker feels
• Be aware that some workers may suppress their emotions
• Identify and acknowledge the feelings of employees, and allow them to communicate these feelings
• Compensate the employees for their losses, such as offer training and education classes to gain new skills, or outplacement services

Can Your Small Business Afford Financial Losses Associated With Poorly Managed Change?

• Many small businesses experience major financial losses before, during, and after major change events and initiatives.
• A 10-!5% drop in employee productivity typically occurs within a 6-18 month period when a major change occurs.

Let's look at a hypothetical situation regarding a ten (10) employee organization:

Assume an average $15/hour wage rate and that one hour per work day is lost due to major change.

• 10 employees @ $15 per hour @ 1 hour per day = $150 per day
• $150/day x 5 days/week = $750 per week
• $750 x 4 weeks = $3,000 per month
• $3,000/month x 6 months = $18,000 in financial loss! Your organization is weakened rather than strengthened!

Choose a recent "change" at your organization and answer the following questions:

• How are you handling this change in the workplace?
• Is this change having a positive or negative affect on you?
• What reasons do you have to support this change?
• What reasons do you have to resist this change?
• Do you feel you are currently resisting this change in any manner?