Change and opportunity in today’s world
What exactly separated Netflix from Blockbuster? Apple from Blackberry? Canon from Kodak?
For every organisation swallowed by the shifting sands of change, another rises to seize the opportunity. The greater the upheaval, the more scope there is for innovation.
The pandemic is a prime example: since the start of 2020, we’ve seen record-high fundraising levels among venture capitalists and the creation of 400 new ‘unicorns’ – start-ups valued at $1 billion or more. After initial setbacks, business leaders in all but the hardest-hit industries have now pivoted their strategy from one of response and recovery to one of growth. In fact, 66% of European companies say they are already in the ‘Thrive’ phase of crisis response: preparing for and shaping the post-pandemic future.
The challenge of ‘change fatigue’
Despite all the enthusiasm at board level, however, wellbeing and engagement surveys point to a stark disparity between the psychological health and optimism of senior leaders and that of their employees. While 61% of leaders say they are ‘thriving’ right now, this figure drops by a whopping 23% in those without decision-making authority. The fact that 37% of the global workforce say their companies are asking too much of them at a time like this suggests many leaders may not even be aware of the gap.
HR leaders, on the other hand, are all too aware. Over half (54%) of those surveyed by Gartner on their 2022 priorities reported that their people are suffering from ‘change fatigue’ – a general sense of apathy, resistance or passive resignation toward organisational changes.
Ironically, we’re seeing employees’ ability to handle change fail them when they need it the most.
A new approach to managing change
The work we do and the way we do it may already look very different from the start of 2020, but many predict that the pace of change will only accelerate as technology develops, AI gets smarter, and the world becomes more closely connected.
"The pace of change has never been this fast, yet it will never be this slow again."
Justin Trudeau, World Economic Forum Annual Meeting 2018
Equipping people for change is a clear imperative, but how to go about it has been posing problems for years. In 2015, a McKinsey study found that 70% of change programmes fail to achieve their goals, largely due to employee resistance and lack of management support. So what can we learn from the successful minority?
In the MacLeod report released by the UK government after the 2008 financial crisis, evidence showed that the organisations that prioritised employee engagement were able to achieve 12% better customer advocacy, 18% higher productivity and 4x greater financial performance than those that did not. By contrast, ‘underinvestment in people and culture’ was one of the top reasons for failure given by leaders whose businesses collapsed in the crisis.
Our psychological needs can be remarkably simple: the more unstable the world around us, the more we look for a sense of stability and support when we show up for work. In today’s turbulent world, agility and adaptability are the bare minimum needed to survive – only the most caring, cooperative and psychologically safe organisational cultures can thrive.
5 things leaders can do now to combat change fatigue
1. Get curious about your people
The wellbeing-engagement paradox shows that it’s entirely possible for employee wellbeing to plummet whilst engagement and productivity peak. At the same time as workloads, working hours and productivity increased in 2020, employee visibility decreased. Leaders must beware that in a hybrid world, high output could be masking burnout and exhaustion.
As a leader, it’s essential that you demonstrate interest in the workload and wellbeing of your team – to actively seek feedback and be seen to act upon it. You can’t expect engagement from your team if you don’t give them a voice, and if you’re unwilling to change course when valid concerns are raised. Without this commitment – as the Great Resignation has made clear – your people will vote with their feet.
Demonstrate the ways in which you’ve listened to your employees, and they’ll feel more appreciated, empowered and engaged.
2. Seek to understand your people’s experiences – even if it’s difficult
We don’t always ask for the information we need to support our teams most effectively. Anonymous surveys and 1:1 conversations with employees are great practices, but they’re worthless unless aimed at what matters. How can you mitigate change fatigue and prevent burnout if you’re unaware that your teams are struggling in the first place?
Though conversations about mental health or personal circumstances can feel sensitive and difficult to navigate, the move to hybrid has entangled work and home life like never before. Most of us are already familiar with each other’s pets, favourite casual clothes and taste in décor. 17% of us have even cried with a co-worker in the last year.
Now, as a leader, you need to understand how your people are feeling at work, whether anything is impacting their wellbeing, and how best you can support them. Hybrid has made work more human, and leadership styles need to catch up.
3. Build trust within your teams
Trust in leadership plummets when employees can’t see a clear plan for change and don’t understand the part they’ll play in it. With high trust, on the other hand, employees have 2.6x the capacity to absorb change. Communication, consistency and transparency are all key to getting there.
Josh Bersin’s Big Reset: Change Agility Playbook explains: ‘When we communicate with employees and educate them about changes, they feel more confident, and they can adapt more easily to new ways of working.’ Clearly and frequently communicating the ask of your teams – the why, what and when – is non-negotiable. The ‘why’ is particularly important: your people will be asking themselves, ‘What makes this change necessary, and what’s in it for me?’
Leaders who remain accessible and vocally committed to the change keep it on the agenda. As a leader, your continued engagement in transformation is every bit as important as that of your team.
4. Role model optimistic realism
Think carefully about the mindset you role model in relation to change: research shows that, for better or for worse, it will impact your team.
Research shows that a supportive leader can help individuals perceive even highly stressful situations as meaningful and engaging, whilst the absence of a leader’s support turns the same scenario into a threat, increasing levels of anxiety, incivility and sleep problems.
Some degree of positive messaging is important: as Napoleon said, ‘A leader is a dealer in hope.’ Hopeful leaders have been shown to have a contagion effect on the resilience of employees in organisations undergoing traumatic change.
But beware of the limits: mindless optimism can be perceived as toxic positivity. This effectively denies people’s distress, breaking down trust and reinforcing the disconnect between levels of seniority.
The Stockdale Paradox gives a great example of the balance leaders should aim for in an era of uncertainty: can you acknowledge and accept the reality of the situation as it is, whilst staying hopeful that things will get better in time? If you do, it’s more likely that your people will too.
5. Recognise and reward the effort and output of your team
Feeling valued and recognised for the work you do is a key driver of engagement through tough times. It’s important for leadership to thank their teams for their commitment and to celebrate their achievements – especially in the face of adversity.
McKinsey research from February 2022 found that among organisations that improved their individual and team performance during the pandemic, 60% of leaders increased the amount of time they spent recognising their employees. On the flipside, they found that the top two reasons employees had left their organisation in the past six months were not feeling valued by the organisation (54%) and not feeling valued by their manager (52%).
Your people will feel energised and motivated for the next challenge when they can see that you appreciate even the smallest successful changes – it gives them hope for meeting future goals too.
Change is a never-ending journey. But by taking time with the team to reflect on your progress and acknowledge the milestones you’ve reached along the way, you’ll be much more likely to keep your people with you on the road ahead.