Friday 1 February 2013

The Change Trap - Part 2

In my last post I looked at the impact of making too frequent changes, particularly in relation to an organisation or a team. The model I used resonates with personal experience that rather than improving performance, continual change has a detrimental impact and in extremis it can lead to a real degradation in performance.

The challenge I left at the end of the post was how to deliver the increasing performance that the modern world demands.

This post looks to address that using the same sort of model.

We used a simple model that follows performance following a change, showing an initial loss of performance while new people learn the new processes etc. followed by a period of improvement before apathy or loss of alignment starts impacting.

While useful for illustrating the point a real world graph would look more like this with a flatter slope ie longer life time. There is a point (X) at which the rate of improvement in perfomance starts slowing. Broadly speaking this is when something new is required if the rate of growth is to be maintained going forward.

Chaining these as we showed in the previous post gives an average improvement rate shown by the red line.
Assuming we manage switch lanes at or around the optimum point of X what else can we do to bring about an improvement in the slope of the red line? We used this diagram to illustrate the aspiration.


Well the model suggests that there are three parameters worth looking at.

  • (A) is the loss of performance experienced after the change has been implemented;
  • (B) is the period during which there is a loss of performance; and
  • (C) is the rate of performance improvement the new set up can deliver.
It is apparent that decreasing A and B and improving C are the key.

A and B are can be influenced by good change management, the preparation of players in the change and support for them through the change. Realistic expectations and feedback are key components here.

C is essentially down to good design and continual refinement ie you don't just do something and then forget about it.

The lessons the models suggest are that in the long run one will get better performance if you keep with and build the existing system (including people) as long as you recognise when you have reached point X and it is time to switch lanes. Any movement before that may sound attractive in the here and now, but will br sub-optimal long term. The other things that this suggesst is that good change management is not just nice to have but essential in an accelerating world as is good design and maintenance of that deesign. We have to get better at these each time we do them if we are to curve the redline upwards.

Any thoughts? Still want to keep changing things? Don't get me wrong, I love being an agent of change, but not change just for change's sake.




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