NIDO R. QUBEIN

You must make clear the reasons for change and the consequences of not changing.

If your company is going to stay in business, it has to change—and change can be scary. For many people, change is more threatening than challenging. They see it as the destroyer of what is familiar and comfortable rather than the creator of what is new and exciting. Most people, and organizations, would rather be comfortable than excellent. But these days, if you don't change, you stagnate and die. We must implant change in the corporate culture.

Many businesses die because their people prefer familiar but deadly old ways to risky but rewarding new ways.

I've encountered many examples of constructive change brilliantly executed. Here are some things I've learned:

• People will change only if the alternative is worse than the change. It's hard for people to internalize the need for change. A Naval aviator once told me that many pilots die because they stay with their disabled aircraft too long. Many businesses die because their people prefer familiar but deadly old ways to risky but rewarding new ways.

• People hunger for stability amid change. Steady, reliable people often fear change. We must assure them that change doesn't mean an end to their world; it means a continuation, with improvements. We can: 1)Explain the reasons for the change; 2) Show how our plans keep risks to a minimum; 3) Emphasize things that remain the same; 4) Let them know what to expect, step by step; 5) Let them know that top managers are fully behind the change and have confidence in the value of the changes; and 6) Commend them for the constructive changes they make.

• For change to be successful, it must be planned. We must be in control of the changes instead of at their mercy. Successful changes are based on values. As Levi Strauss CEO Robert Haas has said, “Values provide a common language for aligning a company's leadership and its people.” Levi Strauss summarized its values in an “Aspirations Statement.” Everyone in the company is guided by it. Adopting a set of values—such as integrity, quality, performance, mutual respect, and diversity—enables a company to steady its course.

• Planned change involves a three-step process: softening, reshaping and restabilizing. The softening stage is usually the most uncomfortable, since many people have rigid habits. During this stage, you attach a stigma to behaviors you want to discontinue. As you stop rewarding them, you encounter resistance. Even managers may dig in their heels. The gain and the pain must be made clear to everyone.

John F. Welch Jr., CEO of General Electric, identifies four types of managers: 1) People who deliver on commitments and share the new values—retain and reward these people; 2) People who don't meet commitments and don't share the new values—these people must go; 3) People who sometimes fail to meet their commitments, but who share the values—give them a second chance; 4) People who meet commitments but don't share the values—they must change or go, because their results aren't worth the price.

The reshaping phase calls for a positive approach. We're now less concerned with rooting out old ways and more concerned with implanting new ways. Managers and employees must be convinced that the new way is the right way.

During the restabilizing stage, you want the new behaviors to become a natural part of the everyday routine. The rewards system should be based on the behaviors you want to encourage. CEOs must model the new behaviors.

When your people are oriented to change and educated to bring it about, you're geared up for the future. EE

Nido Qubein is an international speaker and consultant. Write to Creative Services, Inc. , P.O. Box 6008, High Point, NC 27262,or call 1-800-989-3010.

Excellence in Action: Plan changes in your organization using the three stepsof softening, reshaping, and restabilizing.