Disruptive innovation is everywhere, driving change in organizations at an accelerating pace and scale. Whether driven by technology, demographics, globalization, or other forces, organizations are wrestling as never before with the challenge of delivering today's performance while preparing for tomorrow's demands.
This reality has profound implications for leaders. They often ask: "How can we manage ourselves and our organizations to deal with the changes we face?" The answer begins with recognizing that every change, especially disruptive change, has two dynamics at play.
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The “business” side: What is the change and what does it mean for our business?
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The “human” side: How are people responding to the change?
Balancing Business and Human Dynamics
To manage change successfully, leaders must first understand both dynamics and then carefully balance them in their approach. Each is critical; neither is sufficient on its own.
Author William Bridges (2003) drew a clear distinction between change and transition: Change is the external event, while transition is the internal, psychological process people go through to adapt. Without that inner transition, change is, as he put it, "just a rearrangement of the furniture."
And we don’t need to look far to see what happens when leaders fail to find that balance. The corporate graveyard is filled with examples of organizations unable to adapt to disruptive change. So what can leaders do differently?
Understand the Business Dynamic
It’s critical to first understand the context of change: Leaders cannot lead what they don’t understand. The key questions include:
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What is happening in our business and in our industry?
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What is our current business model, and how are we performing?
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What forces are driving change, and what do they mean for us?
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How must our business evolve — and how quickly?
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What are the implications for my part of the organization?
Understand the Human Dynamic
As Bridges noted, change itself and the way people respond to it are very different. The human response is a transition—and it takes time, often moving more slowly than the change driving it. Leaders must stay attuned to this human dynamic and how it enables or impedes progress. Key questions to ask include:
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How are people in my organization feeling?
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Do they understand what is changing for the organization—and for themselves?
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What are they afraid of?
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What are they hoping for?
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What do they need?
Lead with Balance
Understanding and managing the two dynamics of change requires different skill sets. To grasp the business context, leaders must draw on strategic, analytical, and critical thinking skills. They need business acumen and a clear understanding of their industry and the system in which they operate.
To address the human dynamic, leaders must listen actively, seek feedback, communicate clearly and with empathy, act with integrity and consistency, and foster an environment of trust and transparency.
Most leaders, when faced with disruptive change, lean toward one dynamic or the other, usually reflecting their natural strengths. But successful change leaders balance both. Employees must first understand the business context for the change as a step toward “getting on board.” They also need to process what the change means for their work and their emotions—and feel supported in that transition.
Learn from Experience
Learning to lead through change comes from experience, often built over many years. In our business simulations, leaders wrestle with finding the balance between the business and human dynamics. Because the simulation accelerates time, they quickly see how their approach affects organizational results. Those who strike the balance are able to manage change more effectively and improve outcomes, a powerful lesson.
Equally critical is creating an environment where it is safe to disagree, explore, be heard, and give and receive feedback. A well-crafted simulation provides this space, and thoughtful leaders must create it in the workplace as well.
We all know that change happens, and for many it feels more disruptive than ever. Remember the two dynamics of change: Attend to both, and balance them as you lead. Doing so will help you and your team navigate change—and the transition it creates—more quickly and successfully.
References
Bridges, W. (2003). Managing transitions: Making the most of change (2nd ed.). Cambridge, MA: Da Capo Press.
