Sam Boyer & Associates - Business Consultants to the Beer Industry

MANAGING THE IMPLEMENTATION OF CHANGE

By

Sam Boyer

 Change within the beer distribution industry is coming at a faster rate than ever before. Between new product introductions and the rapid advancement of technology just keeping up is becoming a monumental task. All of us make minor changes daily to operations; it's part of our routine. But it's the major changes such as consolidation of operations, a new building, route realignment, or a new computer system that can make or break your organization.

Managing the implementation of these major changes is a must if you are to survive in today's highly competitive environment. Attempting to implement major changes without a well thought out plan will result in wasted efforts, lost time, missed sales, and lower profits. Major changes within organizations are required for long term survival. Getting these changes implemented as smoothly as possible with a minimum of disruption is a difficult, but manageable task. A well thought out plan for managing the implementation of changes includes:

ANALYZE YOUR SITUATION

Before you can even begin to think about implementing a major change you must know exactly where you are in all the critical areas of your organization. If you don't know exactly where you are, it will be impossible to decide where you want to go. Additionally, you won't know which changes to implement in order to get there.

Knowing the impact of the changes prior to their implementation is a must. Converting to pre-sell without knowing its impact on administrative operations is a set-up for failure. Prior to the implementation of any major change you must analyze its impact on the sales and delivery routes, compensation, training, warehouse, inventory control, administrative operations, and policies and procedures. All of these areas will be affected by a new computer system, route realignment or new building.

DEVELOP A VISION

Changes made without an established vision are doomed to failure. Changes are made to organizations in order to achieve a vision. Yourselves and your employees must know exactly where the organization is going. Your vision becomes the point upon which all of you can focus as you go through the difficult tasks of change.

You must emphatically support the vision. Just stating the vision will not do. You must support all aspects of the vision. You can do this by personally putting a significant amount of time and energy into achieving it. Anything less will send a signal to the employees that the vision does not have your uncompromising support. Without support the changes will fail and your vision will not be achieved.

SELL THE CONCEPT

After you have analyzed your distributorship, know its status, and have developed a vision of where you want it to be you have to sell the concept of change. For some this will be an easy task, for others very difficult. Those having an effective management style and the respect of their employees will be able to present and sell the concept of a changing organization. It will be easy because your employees trust your judgment and are willing to follow your lead.

Those who do not have an effective management style will have a more difficult time. You will have to walk each member of your management team through the logic of the vision. After they are comfortable with the vision you will need to sell each of them on the concept of change. This will be the most difficult part; individuals generally do not like change. However, if you are to achieve the vision you have for your organization you must sell the concept of the needed changes.

After the management team is on board with the vision and the concept of changes, use them to sell the employees. Work with each manager to sell his or her direct subordinates. A unified management team will be able to sell the vision and concept of the needed changes.

IDENTIFY THE CHANGES

OK, you have analyzed your situation, developed a vision for your organization, and you have successfully sold the concept of changes to your management team and employees. What is next? Identify what needs to be changed in order to achieve your vision.

What needs to be changed will vary widely depending upon the vision you have for your organization. Each function of the organization must be reviewed under the guise of "in order to achieve the vision will this function need changing?"

Will the achievement of the vision require changes in the sales and delivery routes, compensation system, product line, training, warehouse operations, organization structure, inventory control, job descriptions, office operations, policies, and/or procedures? They all must be examined to ensure they support the vision.

COMMUNICATIONS ARE ESSENTIAL

Excellent communications are critical if you are to manage the needed changes and not be managed by them. As soon as the needed changes have been identified communicate them to the employees. This will stop the rumor mill.

Rank the changes according to the relative importance to achieving the vision. Focus in on the key areas and begin working on them first. Success in key areas will not only give you an excellent start towards achieving your vision but it is also the best means of communication. Success breeds success. Success in a key area communicates to the employees the changes are necessary.

Your employees will be fearful of the changes. You must use communications to fight this fear. Listening to and responding positively to their fears will put most resistance to rest. You and the management team must have a positive attitude about the changes. Not having a positive attitude is easily detected by (and communicated to) the employees. When employees lose faith in the leadership the changes will not be effective. You must achieve success in a key area early and maintain a positive attitude throughout. This is the best form of communication.

DEVELOP STRONG SYSTEMS

Many of the changes implemented within beer distributorships are enhancements to management systems. Developing strong new systems will have a much better chance of success than weak systems. If you are going to go through all the work of making changes to your management systems make them worthwhile.

How can you do this? First, do not accept that there is only one way changes can be made. Demand from your managers different alternatives along with the good and bad points for each.

Second, do not implement immediately. Allow a few days or weeks to go by prior to implementation. This will give everyone involved time to consider the new management system and come up with adjustments to it.

Third, after the system is implemented stick with it. Do not allow it to "fall out." If it does all future change implementations will be in jeopardy of failure. You may have to make minor adjustments to the system, but do not depart from your initial commitment to it. If you did the "up front" work of analyzing, designing and reviewing of alternatives your new system will work.

PROMOTE EMPLOYEE PARTICIPATION

You cannot implement changes in a vacuum. The involvement of your managers and employees is required. If you are changing your routes who better to provide input into their structure than the salespersons and drivers who are involved with them every day. This is not to say that they should have the ultimate say in the route structure, but they must have the opportunity to provide significant input.

Without participation employees will not "buy in" to the changes you need to make. Employees that do not have the chance to "buy in" to the changes will have a stronger tendency to resist them. Given enough resistance, the changes you implement will fail.

One method of gaining employee support is to promote the idea that the changes will not only create opportunities for the organization but also for those employees who excel after the changes.

EXPECT RESISTANCE

No matter how much analyzing, planning, and employee participation you do, some of your employees will resist the changes. The majority of human beings naturally resist change. Change takes employees (and some Presidents) out of their comfort zone and places them in an unknown situation. This results in resistance to the needed changes.

Resistance comes in two forms: overt and passive. Overt resistance is the easiest to overcome. It comes from the employees who openly oppose the changes. Allow these employees to speak their mind and then work with them to overcome their concerns.

Passive resistance is much tougher to overcome. If you don't know it exists you cannot overcome it. The most passive resistance comes from employees who have no opinion when asked about the proposed changes. Everyone has an opinion, be very careful and watchful of those who do not express it when asked. After passive resistance is detected take immediate action to eliminate it.

DEAL WITH THE STRESS

Changes not only create resistance but also stress. After the changes are in place for a period the stress will subside by itself. Initially, however, you must work to reduce it. If you don't a high stress level could cause the changes to "fall out." The best means of reducing the stress brought on by change is to make sure all communications possible is taking place.

Without communications the stress will build to dangerous levels. You and the management team must be asking questions of the employees at all possible times. After a route realignment be present in the building when drivers and salespersons return to ask them how their day went, what problems they encountered, and the success they had.

Giving them this opportunity to vent their feelings will go a long way towards stress reduction. If you don't take this step your employees will internalize their stress and cause you future problems and more resistance. Just listening to the employees most affected by the changes will reduce their stress and maybe even yours.

DEMAND FEEDBACK

If your changes are going to truly help achieve the vision you have for your organization feedback is essential. You cannot drop your guard once the changes are working. Now is the time to evaluate the changes and expected results.

There is no better time to fine-tune the changes than shortly after the implementation. Communications with the management team and employees is essential. Each member of the management team should be required to prepare an evaluation of the new systems, routes, etc. and what effect the changes have had on their responsibilities. They should also be asked if additional fine-tuning is needed to achieve an even better result.

Thirty days after the implementation performance evaluations on all managers and employees may be appropriate. This will give your employees the feedback necessary to improve their performance within the new systems, routes, etc.

Without feedback employee performance will not be where it could be, the changes implemented will not be as effective as they should be, and the vision you have for your organization will not be realized.

CONCLUSION

Managing the implementation of changes is not easy or simple. It is time consuming and stressful. However, by following the steps outlined above it is manageable.

Change within the beer distribution industry is constant. Make the changes within your organization in a timely and orderly manner before the market, competition or suppliers force you to make them. To achieve the vision you have for your organization make the needed changes now. You will be more successful.

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Sam Boyer & Associates
Aurora, Colorado
 (303) 766-1557
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