Leading in Time of Change

This is the first in a series of articles we will be presenting on the critical importance of change management strategies in business, especially as it relates to the supply chains of every business.

If there ever was a need to implement a strong, focused, team strategy for managing change in a business’ supply chain operations, that time is here and now.  With all of the disruptions US businesses have encountered, especially in 2020 and 2021, and continuing into 2022, nothing less than survival is on the table.

Jack Welch, the former CEO of General Electric, many years ago stated that “when the rate of change outside exceeds the rate of change inside, the end is in sight.”  These words were true when Mr. Welch first said them and they remain true not only today, but will remain true forever.  So, having said this, what are the barriers to change many US businesses continue to experience which keep them from getting their heads above water and staying there?  So glad you asked.

•  Resistance to Change – First and foremost, we are all human and as humans, we continually resist change.  Its uncomfortable, it takes a lot of work and effort and “I’m too busy with my daily work responsibilities to even think about changing anything.”  Also of critical importance here, is the fact that in many businesses there is a lack of executive commitment, as well as a lack of an executive champion to ensure that proper change management policies actually take place and is totally successful.
• Limitations of Existing Systems – It’s hard to believe, but many businesses today still struggle to have all of their business systems speaking the same language.  In some cases, individual business units within the corporation work on different accounting and ERP systems.  This makes it difficult or even impossible for corporate management to see the bigger picture.  In fact, we continue to encounter businesses that still cannot provide accurate details of what their “actual” transportation and logistics costs are, yet they are convinced they need to control those costs.  No argument from us.  But if you do not know where you are today, how can you know where you need to go?
• Lack of a Cross Functional Team – It’s the old story of individual operating silos within the corporate structure who are willing to contribute resources for their “own” cause, but in some cases at the expense of other corporate causes.  The bottom line is that for a change management program to be truly successful, these business “Fiefdoms” can no longer exist.  And, if management is not willing to take the lead to ensure a coordinated success approach, you can bet success will evade them.  Remember the definition of insanity is “doing the same thing over and over and expecting a different outcome.”

Whether businesses are willing to accept the fact that they do operate under these “insanity” conditions or not, the fact remains that many businesses do just that without ever considering the consequences.

• Inadequate Team and User Skills – And, finally let’s speak about the 800 pound gorilla in the room.  And, that is the fact that many companies do not have the required talent to handle these change management programs and therefore never reach the level of change they need to be truly successful.  Having said this, even if the company does not have the talent on its staff, they certainly could and should consider bringing in outside third parties who can help them navigate the change management strategies they so sorely need.  There is absolutely no need for companies not to get where they need to go, even if they do not currently have the required resources in house.

In our next installment, we will speak about The fundamentals for leading change.