What Dial Up Internet Can Teach Us About Managing Change

May 8, 2014 Business Strategy, Change Management, Finance and Accounting, Management & Leadership, Product Development, Technology, The Manager's Resource Handbook

How to Manage Change in Business

Everyday, our industry and market changes. Our staff will change. And leaders of our organizations move on, and new ones take their place. All of this forces us as business leaders to constantly keep tabs on our organization to make sure things run smoothly. Unfortunately, with such dynamics many businesses can lose their way over time and it take a lot of work to restore themselves to their former glory. Let’s take a closer look at this and give you a simple frame-work for managing change.

Remembering Dial-Up Internet

If you are old enough to remember the early days of the internet, you have probably blocked out memories of alien sounds emerging from your modem and the tapping of your fingers as you waited for a single page to load. Ever so slowly, pages would load up just a few lines at a time, finally appearing in their entirety after several long seconds.

And then there were images. The loading of an image would take even more time thanks to the fatal combination of transferring a large amount of data over a sloth-like internet connection. As a result, pictures would first appear as a blurry and pixilated blob. Then, a second iteration of bands appeared from the top to bottom. The picture would be a little clearer the second time around. A third and sometimes a fourth iteration were often necessary for the picture to finally show clearly. But eventually, it would show up. Think about this as we talk about change management in business.

Managing Change in an Organization

Memories of those early days of internet and waiting for images and pictures to become their proper selves are reminiscent of how we need to drive change in an organization. Like an image loading in the days of dial-up, managing change in an organization requires us to pursue progressive iterations of improvement. To help illustrate this point, let’s consider a fictional example of Beal’s Toy Company.

The Beal’s Toy Company:

You work for a struggling small business that manufactures children’s toys. The factory equipment is old and worn, quality control has waned, and employees are constantly fighting to work through antiquated processes. The issues have affected profitability, they have affected cash flow, and they have weakened morale. The problems are extensive and a complete reinvention of the factory is needed to restore Beal’s Toy Company to its former self. Now, imagine you are appointed to get the factory back on its feet. What do you do? Where would you start?

Finding themselves in such a scenario, many managers are eager and anxious to get started. They have grand ideas and visions for how to fix problems and create changes in the business that will bring it back to life. But after six months of roadblocks and setbacks, that initial energy will often lead to frustration and discouragement.

Managing significant change takes time, and will not happen overnight. It is important that as a manager or business leader, you set your expectations accordingly. Further, prepare yourself not for a swift act that will be over in moments, but rather a journey of progressive improvement that will ultimately lead you to your goal. Think about how you’d fix Happy Toy Company, but through the lens of dial-up internet:

[ezcol_1fifth]

First Iteration

[/ezcol_1fifth] [ezcol_4fifth_end]

The First Iteration in Change Management:

The first step in change management is to understand the current state and identify where you are going. Then, get a basic structure, or shape around what the future state will look like. It may be rough, fuzzy and hazy, but at least there’s a basic starting point upon which you can build. Don’t worry about every detail, simply outline the shape.

For Beal’s Toy Company:

For Beal’s Toy Company, you may start by doing a gap analysis, and identifying all the issues you’re facing, and prioritize them in terms of severity. Then, you establish a basic future state – what does the company look like in the future, in terms of manufacturing, quality, processes, and cash flow?

[/ezcol_4fifth_end] [ezcol_1fifth]

Second Iteration

[/ezcol_1fifth] [ezcol_4fifth_end]

The Second Iteration in Change Management:

Once you have a basic outline in place, add some more detail to that image. Meaning, focus on some of the top priorities. If product quality is the challenge that warrants immediate attention, create a training plan for your employees. Establish additional in-process inspections to help catch defects sooner. If cash flow is an issue, find ways to cut costs quickly. The key is to build upon the basic image, or framework from step 1, to help mature it to something that is more clear and controlled.

For Beal’s Toy Company:

In our fictional case of Beal’s toy company, you identify that your number one selling product has had a number of quality issues, which has led to costly recalls. Perhaps your first move is to invest in new, modern manufacturing equipment for that toy, to eliminate the downstream problems. Many other issues exist, but this one action may help fix some of your worst headaches.

[/ezcol_4fifth_end] [ezcol_1fifth]

Third Iteration

[/ezcol_1fifth] [ezcol_4fifth_end]

The Third Iteration in Change Management:

After you’ve established a road map, and perhaps addressed some of the biggest issues, you can focus in on the details. Over time, you can get more specific with the tweaks and changes you make. Maybe you develop some new processes, or eliminate old ones. Or, after you improve production quality, for example, use the data of the improved quality to help instill pride in employees and restore morale. Tack on whatever small improvements you can make to help improve the clarity of the final image you are aiming for.

For Beal’s Toy Company:

After you’ve fixed some of your key product problem, you turn to resolve smaller issues in the factory. Perhaps some of your data management systems need to modernized with new software, or you invest in a more efficient packaging area to deliver toys to customers. In the third iteration, with big issues out-of-the-way, you can focus on enhancements and smaller improvements that all contribute to the vision you created in the first step.

[/ezcol_4fifth_end] [ezcol_1fifth]

Fourth Iteration

[/ezcol_1fifth] [ezcol_4fifth_end]

The Fourth Iteration in Change Management:

The fourth step of change management is meeting your end goal, and maintaining it. As time goes on, you can continue to refine and sharpen the operation of the business. Once things begin to run more smoothly and under control, use some freed up cash to upgrade machinery, invest in new software, or remodel a rundown office. Eventually, by pursuing pieces of change, you can get the full picture with exquisite detail.

For Beal’s Toy Company:

The final stage of change management for Beal’s Toy Company may focus on expansion. After product problems have been eliminated in phases, and quality has improved, you take that success and build on it for the future. You may set up scheduled replacement program for machines as they wear over time, and create new operating procedures that drive you to make small adjustments over time to prevent a decline like you saw before.

[/ezcol_4fifth_end]

Final Thoughts on Implementing Change

A picture loading slowly over a dial-up internet connection serves as a great analogy for driving change in a complicate organization. The next time you face a long uphill battle requiring reinvention, start by establishing a basic vision for where you want to be. From there, be sure to set incremental goals for your progress. Let’s face it. Change is difficult. But with a solid strategy and a bit of patience, you will succeed. When you get there, remember it all started out as a blob.