Anticrisis economics with the EBA Odesa: “Business transformation in the period of uncertainty. Resistance to change”

11/ 11/ 2020

Today, an interesting phenomenon can be observed all over the world: successful organizations, facing the conflicting influences and challenges of the external environment, such as the emergence of new technologies, intensification of competition, political and economic transformations, changes in legislation, etc., show inability to actively respond and effectively manage with changes. Furthermore, the situation is exacerbated by the internal resistance of the companys employees, who probably are still looking for stability and are guided by deeper installations. On October 11, 2020, during the Anticrisis Economics with the EBA Odesa, we decided to understand why why company executives and employees resist innovation and learn how to implement a system of constant change in the company. Thus, the internal causes of resistance always relate to several aspects: anxiety about ones future, risks of unclaimed or insignificance, possible conflict of interest, fear of futile efforts, inadequate, inconsistent change management. Moreover, practice shows that in times of crisis, not only employees suffer, but also managers when internal values collide, for example, if the restructuring of the company requires the dismissal of employees who are loyal, loyal to the company, worked long, went through previous crises in the company, but now ceased to be effective, or their functions are automated, reduced and redistributed etc. In order to implement a strategy of change in the company during the crisis, it is necessary that people accept it. Therefore, first of all, it is necessary to convince employees that the current state of affairs is completely unsatisfactory, so changes are needed. The next condition for successful change is to give people a clear vision of the future so that they understand exactly how their lives will change. Without a proper vision of the goal, transformation efforts can easily fall apart into a series of incompatible, confusing and time-consuming projects. It is necessary toclearly and neatly convey to employees the companys mission, to show everyone his personal contribution to the common cause. This is necessary both to unite the team and to concentrate efforts. In addition, a system of continuous improvement should be implemented, namely: systematically research benchmarking and implement its best practices; make a Big Data forecast; analyze global trends in the industry; introduce innovations and new technologies (automation); appoint the appropriate managers, in whose functions the process of constant changes is a priority; distribute roles and responsibilities for external and internal changes in the company; introduce a system of knowledge management and professional development of employees; All this will achieve consistency of goals, which is necessary for a holistic transformation.

On October 11, 2020, during the Anticrisis Economics with the EBA Odesa, we decided to understand why why company executives and employees resist innovation and learn how to implement a system of constant change in the company. Thus, the internal causes of resistance always relate to several aspects: anxiety about one’s future, risks of unclaimed or insignificance, possible conflict of interest, fear of futile efforts, inadequate, inconsistent change management. Moreover, practice shows that in times of crisis, not only employees suffer, but also managers when internal values collide, for example, if the restructuring of the company requires the dismissal of employees who are loyal, loyal to the company, worked long, went through previous crises in the company, but now ceased to be effective, or their functions are automated, reduced and redistributed etc.

In order to implement a strategy of change in the company during the crisis, it is necessary that people accept it. Therefore, first of all, it is necessary to convince employees that the current state of affairs is completely unsatisfactory, so changes are needed. The next condition for successful change is to give people a clear vision of the future so that they understand exactly how their lives will change. Without a proper vision of the goal, transformation efforts can easily fall apart into a series of incompatible, confusing and time-consuming projects. It is necessary toclearly and neatly convey to employees the company’s mission, to show everyone his personal contribution to the common cause. This is necessary both to unite the team and to concentrate efforts.

In addition, a system of continuous improvement should be implemented, namely:

systematically research benchmarking and implement its best practices;
make a Big Data forecast;
analyze global trends in the industry;
introduce innovations and new technologies (automation);
appoint the appropriate managers, in whose functions the process of constant changes is a priority;
distribute roles and responsibilities for external and internal changes in the company;
introduce a system of knowledge management and professional development of employees;

All this will achieve consistency of goals, which is necessary for a holistic transformation.