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Overcoming resistance to change

Publish date: 18 April 2019
Issue Number: 67
Diary: CompliNEWS
Category: General

By Lee Rossini

Nothing in life is static for long; change is always taking place around us in different forms and guises. Although we sometimes drive the changes ourselves, often they are imposed on us. New regulations, technologies, client demands, competitors; these are some of the reasons why a financial advice business must constantly update and re-engineer its strategies. While some business owners relish change, others fear and resent it. However, to be an effective business owner or manager, it is essential to recognise when change is desirable or at least inevitable although this does not necessarily mean that employees will feel the same way.  

Although the decision to make changes to the strategies of a business is a positive step, implementing the changes can be challenging. Most business owners revert to what is comfortable and familiar unless they are forced into making the necessary changes. To overcome the obstacles, treat each strategic change as a project. Many of the obstacles that prevent change from taking place can be overcome by following the five steps of strategic management discussed in an earlier article. Once an action plan has been drafted which clearly details the steps that need to be taken to get from point A to point B, the changes will feel more manageable.

However, unless there has been a culture of embracing change in a business, employees are likely to resist the idea of doing anything differently. Use the following questions to assist in identifying problem areas before they arise:

  • What will the impact of the changes be on the various jobs and positions in the business?
  • Do the employees have a good understanding of what the benefits of the changes will be?
  • Who is most likely to be resistant to the changes?
  • Is there a particular person who is leading the resistance?
  • What are the reasons for the resistance?
  • Do the employees who are resisting change understand the impact of their resistance on the change process?
  • Are there consequences of the change process that the owner and/or managers have not thought through properly?
  • Are the most resistant employees willing to at least contribute to a discussion on the change process by making suggestions or modifications? 
  • Can the resistors be persuaded to convert emotional opposition into practical suggestions?
  • Which employees support the changes and can see the benefits?
  • Have the employees been given an opportunity to discuss the changes and to voice their concerns?
  • Has the communication to employees regarding the changes been enough?
  • If the issue of employee resistance to change is not handled sensitively, it can be difficult to make permanent changes. Part of the successful implement change is to acquire the buy-in from employees to the change process.  Disgruntled employees over the medium to long term are likely to become demotivated and may result in a high staff turnover or low productivity. Employees who are extremely resistant to change may also go out of their way to sabotage the changes to prevent any change to the strategies of the business. This includes negatively influencing other employees.

It is essential to always take any resistance seriously to prevent a total derailing of the change process. It is always important to be honest and to assure employees that their concerns will be heard. Jim Collins, a highly regarded business management professor and author of Good to Great, offers business owners the following advice on getting employees onboard with the change process: ‘If you are looking to make big changes in your business, focus on your team first, make sure they are all up for the challenge, give those who are not an opportunity to leave’. This seems like harsh advice, but today, embracing change in a fast-changing world, is an essential element of keeping a financial advice business competitive, relevant and sustainable.

Source:

Collins, J Good to Great (2001) HarperCollins. 

Working Smart

By Lee Rossini

A brand identity is an important factor in the success of a financial advice business; it is essential to be noticed in a competitive environment. Clients are becoming increasingly discerning about the businesses they trust with their financial well-being. Therefore, building a brand that resonates with your target audience is essential not only for attracting clients but also for fostering trust and credibility. Here are some guidelines on how you can successfully create a strong brand identity.

CPD

Subscribers are reminded that they can now complete their monthly CPD quizzes and claim CPD hours. For more on accessing the CPD quizzes, please click on the CPD FAQs button on the top bar of the screen. 

 
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