Blockbuster failed to adapt and subsequently, died. This is old news, but still a great David & Goliath story. It started when Reed Hastings was frustrated by being forced to pay Blockbuster $40 for the late return of Apollo 13. He got the idea for Netflix. Fast-forward a few years, when, after Netflix was gaining in the market, Blockbuster passed on the opportunity to buy it for $20 million. Blockbuster’s leadership was blinded by the $800 million source of annual revenue from late fees, so they decided to get into bed with Enron Broadband Services instead of acquiring a more visionary competitor.
Life goes on, and now Netflix is challenged by Amazon, Apple TV, Roku, Redbox and a host of lesser known video rental and streaming services.
“It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.” – Charles Darwin
Rapid change is a threat and an opportunity, but most importantly, it is a persistent reality. Change is a threat to those who are stubbornly attached to status-quo, and an opportunity to those who are adaptable and smart. The opportunity is sometimes hidden in perceptions of loss and fear of the unknown. Leaders have to get themselves through the challenges of change to be good at helping their teams navigate change effectively. Bending without breaking is essential.
Leaders who are exceptional at implementing change do these six things well and persistently:
1. Define Purpose – “Because the boss said so” is not an acceptable answer to “Why.”
- Describe why the change is needed and what specific changes are required.
2. Create Clarity – In absence of information, people create stories and they are usually not positive.
- What is the vision? What is the ideal future state after the change is implemented? An engaging story is powerful here.
- Define the expected benefits to individuals (yourself included): the team, the organization, etc. Note: It is not disloyal for people to want to know WWIFM (What’s in it for me?).
- Vocabulary is important. Choose words that are powerful, limit confusion, instill confidence and are honest. Hyperbole is damaging, avoid it.
3. Inspire Participation – Facilitate open, honest dialogue.
- Listen in order to understand concerns, not to defend the change.
- Ask for reactions to get issues and concerns on the table.
- Answer questions and clear-up miscommunication.
- Engage team members in problem solving, role clarification and defining best practices.
4. Create a Collaborative Plan – The “Why” and “What” are likely to be pre-defined, and people are more likely to commit with meaningful participation in defining the “How”.
- Engage people as much as possible in create a plan with specific goals and objectives.
- Make sure that everyone knows what part they play.
5. Own Personal Responsibility – Individuals adapt at different rates.
- Continue to promote the vision.
- Ask for support and commitment to the change.
- Follow-up on the goals and objectives.
- Coach individual team members as needed for full engagement and success. Note: Defensiveness, irritability, bitterness, inflexibility are common. Avoid over-reaction to this early on. Eventually this has to go away or the person has to go away.
6. Celebrate and Leverage.
- Acknowledge small wins, and celebrate along the way.
- Leverage successes to create bigger successes.
“In times of great change, the learners inherit the earth while the learned are left to deal with a world that no longer exists.” – Al Rogers
“For every crossroads of the future, there are a thousand self-appointed guardians of the past.” – Dr. Alan Beer
