Why is change management the first thing to go to ease constraints?

This topic contains 6 replies, has 6 voices, and was last updated by  Michael Maggiotto Jr 1 week ago.

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  • #118417


    Participant

    I see more and more that leadership understands the importance of change management, cultural fit and people. But… when resources are low, or money is short or time is running out it seems that change management is the first place they look to cut.

    #118439

    You are very correct. Often it is a knee-jerk reaction, a move into a protection mode. Labor costs are among the biggest costs for a business, so an assessment of essential and non-essential headcount is often done, resulting in a RIF. Part of that process invariably cuts the very change management personnel (L&D, Recruitment, OD, etc.) who can help turn things around. That does not make the decision necessarily wrong, but it may not always be the best long-term solution. Short and long-term issues are often in competition with one another. Solving the short-term concern tends to sacrifice long-term benefits while playing the long game tends to create pain and instability for the short term. Businesses just have to make a strategic decision about what is most important to them. What decision best aligns with the mission, vision, and values of the company? Can they weather through the short term pain and even make to the long-term gain? Are they willing to shift course, engage in brand new strategy, in order to resolve the short term concerns even if that means the original long-term goals are not achieved? Perhaps new long-term goals are necessary? Every situation and business is different. No one-sized-fits-all solution and there is no crystal ball.

    #118517

    Sarah
    Participant

    I believe leadership feels the pressure from their board of directors or investors for results. In todays world, they want results and they want those results fast. Most business are in the business of making money and lengthening M&A without the promise of success can push leadership to have their M&A teams focus somewhere else especially if the constraints are something that can be fixed later or another way.

    #118550

    aditi chandra
    Participant

    Yes, That is so correct. I think company management is focused on short-term goals rather than long-term goals. This is because they are under pressure to perform and make stakeholders happy. I think that is very important for a leader of the company to understand the importance of long-term growth.
    However, I think a lot of companies are thinking otherwise and have been very successful by just understanding the importance of change management but again it is not a very common practice.

    #118757


    Participant

    If things are not working well it is usually a sign that management is not making the company perform to the required standard. Hence, they are usually the first to go

    #118772

    Linda Castle
    Participant

    Some executives think their companies are super nimble and the employees will quickly absorb big changes in direction. They forgo any organized change management and let things get to a dog eat dog status. Usually this nimbleness comes with very high turnover cost.

    #118810

    If things are not working well it is usually a sign that management is not making the company perform to the required standard. Hence, they are usually the first to go

    Correct me if I am wrong, but by “management”, I take you to mean executive management. One may like to believe this is true, and there are always cases where it is, but more often than not it seems that middle and lower management are erroneously identified as the root cause and they tend to be separated before upper management under such circumstances. Barring a significant paper trail documenting to the contrary, that is. As they say, it all rolls downhill. And, as they also say “document, document, document”.

    • This reply was modified 1 week ago by  mmaggiotto.
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