Meaningful change that brings about much needed agility

One of the major coping mechanisms that companies are employing to cope with the disruption that they currently face is that they are enhancing their operating models to become more agile. John Kotter in his book Titled Leading Change asks one fundamental question, what will take to bring your organization successfully into the twenty first century?  This question is at the core of what business are currently experiencing as such organisations which have rigid operating model will face extinction.  One common attribute for companies that are financially distressed, file for business rescue is rigidity in their operating model, poor turnaround time  in taking business decisions.  Agility is at the core of the any organisation’s survival kit.

This allows them to deal with challenges such as shrinking customer basis, increased competition and the need to move to omnichannel business models. Embracing this agility requires major change. the level of this change is often significant and both theoretically and practically challenging. However, the effort is worth the reward.

I recently came across an article which discusses change management tips to help manufacturers remain agile and thrive in 2022. The Access Group’s Andy Brown, Manufacturing Lead, and Jill Carlier Bason, founder of Project. People. Profit and lecturer at WMG, University of Warwick, have provided these excellent insights to this article.

Small steps make big changes
The article points out that, first and foremost, it’s important to realise that changes do not have to be implemented with a big bang approach. In fact, it’s often more intuitive and beneficial to approach change incrementally.

According to Carlier, sometimes, it’s the little tweaks that really make the difference.

So instead of looking at their operations and trying to figure out how to implement a significant change, manufacturers should focus on the small wins that will have a big impact. Consultations with shop floor teams will yield the most valuable insights. Identify their biggest bugbears and areas where improvements could be made, then involve them in the change management process to increase buy-in. This will not only ensure the implemented solution is fully fit for purpose but will also boost the chances of post-implementation adoption.

The article adds that, by getting into this habit of constantly considering potential changes and talking about them on a regular basis, manufacturers will encourage and embed a change culture which can afford numerous benefits.

This kind of approach to change management is embedded in the Japanese way of managing change.  It is one of the many lessons I learned in the Japanese corporate environment, and I found it to be highly effective, and productive.

A change culture can bring the business closer together
One of the biggest benefits of encouraging a change culture is that it helps bring people together . from different areas for the benefit of the business. For example, oftentimes in manufacturing firms, shop floor workers and finance department individuals do not come into contact on a regular basis. But during a project, workers from many different areas are usually involved.

Carlier says the bonds that are created during such projects are hugely important as they enable cross-pollination . of ideas and participants in the process feel valued. So instead of a finance individual assuming what will be the best solution, they can instead take advantage of the insights provided by somebody who is actually on the shop floor performing the tasks. That’s why firms should encourage maintaining relationships that are formed during projects going forward.

Change shouldn’t stop
After months, sometimes years on a project, there’s often a tendency for the change momentum to waver – something commonly referred to as change fatigue. However, change momentum may be lost due to inwardly focused cultural backgrounds, low level of trust, lack of teamwork, arrogant attitude, poor leadership and general huma fear of the unknown. Furthermore, the individuals not directly involved in the project can feel as though their input isn’t being valued. Therefore, constant feedback is key when implementing change.

The article adds that, however, once that settling in period has subsided, change should begin once more. Carlier says it should be an iterative process that is always looking for improvements. Organisations should use this period to embed the change by creating new cross-functional teams, ensuring everyone who is experiencing the change in their role is being listened to, and understands the impact the change is making is important – all of which are crucial for buy-in.

So just because a firm has completed a project to implement a new ERP system, for example, the work shouldn’t stop there. They should be constantly asking questions of the system, analysing the data generated, and involving the people who use it to discover what the next phase should be.

Involve everyone the change touches from the outset
The article points out that, as well as including all relevant business stakeholders in change discussions, manufacturers also need to involve their external partners, such as suppliers, where applicable. After all, Jill says, these companies are the experts in their field.

For example, if a manufacturer is considering changing their packaging, their packaging supplier (and perhaps alternative packaging suppliers) should be involved from the start. The insights such companies can provide are invaluable and will ultimately result in a superior change being implemented.

Brown says once potential changes have been identified, the manufacturer should then involve their software partner so further discussions can take place. In fact, involving the third-party vendor as early as possible in the process is even better. After all, these firms know their products better than anyone and can also provide powerful insights into how other customers are using their products. Customer input can also drive future product development.

But the benefits of manufacturing software, for example MRP and production planning systems, aren’t just limited to the implementation stage. While it’s often the case that an implementation affords many initial big wins for manufacturers, the value realised by such projects is ongoing. For example, the data collected can provide firms with valuable insights into where to focus their improvement activities. This allows manufacturers to make continuous marginal gains in addition to the significant benefits as a result of the implementation.

The article adds that, involving a supplier towards the end could result in days of wasted work if they turn around and say they cannot supply what’s needed, or the packaging isn’t going to be user friendly.

Without taking into account all of the people who the change will impact, manufacturers likely won’t afford the best outcomes. While a change may help make something easier for one person or department, it could end up shifting the problem onto someone/somewhere else. This is particularly important in the context of the pandemic as workforces have found themselves under more pressure than ever. Any change that could have even a slight negative impact on any area of the business needs to be carefully considered to avoid any detrimental repercussions. That’s where involving the right people and securing buy-in comes into its own.

Moses Singo is a Partner at Genesis Corporate Solutions and is a Junior Business Rescue Practitioner