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Guest Article - Is Change Always Good In Business?

Guest Article - Is Change Always Good In Business?

By Brian Chernett, CEO of Adademy for Chief Executives

As the UK Election continues to dominate news coverage, one of the most commonly used words is 'change'. It seems that change and innovation are seen by the political parties and by the news media as good concepts. That what the country needs is change. But is that always true? Is change always a good thing?

My comments in this article are not intended to be party political. My experience is in the world of business and that is where these thoughts will be based. Unlike the political world, business leaders are not subject to elections every five years. They are, however, accountable to stakeholders for ensuring that they get the best performance for their business. So what approaches and ideas distinguish the best businesses? Fortunately, Jim Collins and his team did some extended research on this and published the results in a book called ‘Good to Great’ which I strongly recommend. From his outcomes and my own experience, I would say that is good but they need to be applied within a consistent framework. Change is a word that might be best avoided. It can be unsettling and even frightening to some people. Generally, people do not like the idea of being changed. What is needed is to replace the word 'change 'with 'continuous improvement' and 'continuous learning'. It is more inspiring.

To improve, the business must have a direction and a map for getting there. The destination and the speed of the journey must be kept under review but direction should change only when it becomes unavoidable and only when the business consciously decides to change it. If you don't know where you are going, any road will get you there. Sometimes decisions that are made in haste commit the business to a direction that is unclear and a destination that is uncertain. What your business needs to avoid that is to ensure that the direction is communicated to your team and to any others who are critical to helping deliver it (suppliers, advisers - the wider team). Given that information, any team member is in a position to check the direction with a compass and adjust the decision to stay on track.

The second requirement is the building and maintenance of Momentum - what Jim Collins calls 'the flywheel'. Momentum in the wrong direction is illusory and all progress will have to be recovered or adjusted to return to the right track. So once direction is clear, begin to move in that direction and move more quickly as momentum builds. If all decisions reinforce the business direction, they will also add to the clarity with which outsiders can see where the business is headed and what it stands for. Changing direction not only reduces momentum, but can also create confusion inside and outside of the business and clarity is especially important in a tough market. Momentum is a result of good, clear leadership and strong team dynamics.

The end result should be a business that moves seamlessly and effortlessly into the upturn that will eventually come, with momentum already built and with no need for u-turns or rethinking of direction. Increasing an already established momentum is far easier that starting from a standstill or, worse, changing direction completely.

Whatever happens on May 6th and beyond, it is likely that any momentum being built in the UK will be slowed. The main parties are in disagreement about the direction they wish to take and, in any case, their commitment to change will almost certainly stall the flywheel for a time. We can only hope that momentum returns soon and can be maintained.