GUEST BLOG: Changing from cold to cuddly – will it fly?

By Alan O’Neill, managing director of Kara Change Management

In a post-recession world, we can look back with hindsight and realise that ‘greed was not so good’ after all. Apparently now, it’s all about being ‘cuddly’. But when did being cuddly ever go away? Was it not always a priority but just overlooked by some very successful organisations as waffle and management theory?

It’s already beyond argument that great customer satisfaction drives sales on the day, prompts customer retention and initiates referrals. Of course value for money is important, but unless you can consistently be the cheapest in your sector then you’ve got to find something else to differentiate with.

To ensure your customers are truly satisfied day in – day out, you need to elevate customer satisfaction to be part of your organisation culture – ie ‘the way we do things around here’. That’s not easy to achieve. But when you do, be assured that while others might copy your strategy – nobody can copy your culture. That will give you an edge on your competitors.

If the last few years have forced you to de-prioritise customer service, then changing from cold to cuddly may require a transformation of your culture. Or if you’ve been incredibly successful for many years with a model that is internally focused on costs, then shifting to a customer-centric culture with possible and selective higher cost will be a major task for you. It will take years.

Change as a concept is being prioritised more and more by organisations as they return to growth. The world has moved on in so many ways. Competition has become more aggressive and innovative – and companies are recognising that they may now need to re-invent themselves.

Look at the mobile telecoms sector as an example. Mobile is now a commodity – the future is all about convergence of cable, wireless etc.

Look also at the high street. Can you believe what has happened to HMV and Xtravision?

Given that the past is jam-packed with evidence of change, you can be absolutely certain that the future will see even more change. In fact the pace, the volume and the complexity of change is accelerating. With so much of it, there are now three certainties in life – death, taxes and change!

For that reason, organisations need to develop the new everyday skill of change management, with an added key ingredient of resilience.

However, if you’re at a point where you’re facing a quantum leap change in either your strategy and/or your culture, then be careful.

Corporate history shows that most change programmes fail; and they fail not due to poor execution of the plan but because of poor planning in the first place.

There are pitfalls that others have encountered, so take comfort from these tried and trusted steps.

Step 1. Form a steering group

People will naturally resist change. So the reason for change needs to be compelling and true.

Change must have strong leadership, starting with the executive team. While they don’t all necessarily need to be on the steering group planning the change, they need to be active role models and supporters.

So far, Ryanair is showing executive leadership in their publicized change to being more cuddly. They just need to be sure it’s not lip-service.

Step 2. Develop a new lid on the box

To make a jigsaw without having the lid on the box as a reference framework is very difficult. The lid gives context and an image of the end-result.

In a change programme, the new vision and strategy will undoubtedly be different to the old one as organizations move to re-invent themselves. And this clarity will be critical for step 3.

The very strategy that made IBM the No.1 PC manufacturer in the 80s caused their near demise. They re-crafted their vision and strategy to successfully become the No1 computer services company in the world.

Step 3. Communicate (more than you think you need to)

Using every channel available, keep your employees and other stakeholders informed regularly. Be careful not to forget the ‘old-fashioned’ medium of face-to-face communication, where body language and tone can be even more influential than email.

Before it became Britvic Irl, C&C introduced a very effective team briefing process to ensure an interactive and genuine two-way communication process.

Step 4. Eliminate obstacles

Obstacles can be made up of embedded and out-of-date processes. They might also include deficient resources, knowledge and/or skills. Where safe and appropriate, teams should be encouraged to identify and propose solutions to remove them. And be supported in their endeavours.

In the drive to make Selfridge’s the ‘best department store in the world’, time was taken to identify and eliminate front-line obstacles to great service. As a result, the method for getting customer feedback was changed to a more robust measure.

Step 5. Generate quick-wins

To reassure everyone that progress is indeed being made, quick-wins should be planned for. Don’t just wait for them to happen.

At the planning stage of its major change programme, Apple planned ahead for key milestones in the change programme that they could celebrate and reward.

Step 7. Anchor the change

When appropriate, articulate and link new business successes to the change programme to prove it has worked.

Not only have Google delivered on their past change plans, but they have prioritised the skill of change management and it is part of their continuous improvement culture.

The steps shown above are in a deliberate sequence and need to be carefully facilitated. You just can’t cut corners and short-circuit the journey by going from say step two directly to step seven.

Note too that the duration of change programmes can vary significantly from a few months to many years, depending on the scale. But rigorous planning will work that out with appropriate schedules and clear milestones will emerge.

In summary, change is a reality and the successful companies of the future are those that develop the skill of change and make it part of their culture. Simply announcing that we’re changing will not work. Change should be facilitated, planned and followed through.

Follow these steps and include your people. Help them to engage with the change, embrace it and most of all – to enjoy it.