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Oct 14, 2011

Need of Change to Run the Business





Time For Change

ways to implement change
Possible challenges faced by the management that limit the ability to run the business better. Knowing where or what to change is only the first and simple step in the exercise. Just an analysis of the situation would be of no use. There is always a need to move towards making this change.



To quote Karl Marx -



"The philosophers have interpreted the world in several ways; the point though is to change it."



Facts
Before pondering upon several options that can be taken care, it is important to understand a few facts:



1. A majority of those among the management believe that problems are attributable to people in an organisation. The fact though is that over 90 per cent of all problems are due to the processes. Only 10 per cent is attributable to the people.



2. The person owning the process has the authority to change it, usually top management in an organisation.



3. It therefore obviates the necessity to work actively on processes and not people. Changing processes requires one to have a thorough understanding of its impact. It is also necessary to be responsible and accountable for it.



4. Changing a process requires every person responsible to be taken into confidence. This is probably the most difficult part of the process.



5. Keep in mind that about 10 per cent of the problem is attributable to people - it may, however, have a far greater impact on processes to be ignored. The fact therefore is that change management sometimes does require you to "change the management".



6. Making a change in your organisation is not a magic bullet. At no stage can one allow the current systems to stop working without an alternative one being put in place. In a hospital environment, therefore, change needs to be initiated without disrupting the present system. This requires one to follow a method of evolution or making one change at a time, and waiting for it to stabilise before making another. Any attempt at drastic change can only be doomed to failure. It must therefore, be evolutionary in nature.
There are essentially four questions we must ask before bringing about the change contemplated. Why is it necessary to change and what needs to be changed? And if change has to be implemented, what should it be changed to? Finally, how would one go about doing this?



Methodology
Way back in the early 1950s, a physicist and statistician, W Edwards Deming evolved a methodology for business process improvement that came to be known as the the Deming Cycle. His method was one of the continuous improvement process. This is also known as the PDSA cycle - plan, do, study and act. It seems quite simple and obvious until we look at the elements that go into each of these components.




Using the Deming Cycle
The components of the Deming cycle indicate the steps required to be taken in the process of making the change. Though it is not simple math, it is no rocket science either. The following paragraphs outline the steps involved in the PDSA cycle:



Plan - The first stage requires establishing objectives and processes that are required to deliver the desired end result; the focus of the entire plan. All specifications, policies, practices, procedures and other aspects that may need change must be formally listed. An exhaustive list and accuracy of detail should be a part of the plan.



Do - The second stage requires one to carry out changes taking small steps at a time to examine its impact on the results. Every aspect of the process will have to undergo change in line with the overall plan, and not be limited to individual functions, departments or activities. The correlation between each part of the plan and its implementation is extremely crucial to its success.



Study - The third stage requires one to formally study the impact this change would bring. Often, whenever change is put in place, there could be some volatile fluctuations in its results. Such impact of any change that one makes to the system is not abnormal. One of the most dangerous things to do when one observes such fluctuations is either to revert to the older system, or try to take immediate corrective action. But, it should be kept in mind that the results now seen are based on a small sample. Trying to correct a system at such a nascent stage often leads to changes that are even more abnormal than what one started with.
Therefore one should ensure that the process has stabilised before reviewing it or studying its impact. Depending on the magnitude, carry out the study every day, or over a one-year period. For instance, if the change is to impact patients' waiting time in a queue, it is best assessed every day. If, it is to impact the capital structure of the organisation, it is better to review it only after a significant time has elapsed; say six months to a year. It is also important to study the impact not merely as visible numbers of the results, but to try assess the non-measurable, qualitative changes that have resulted from the processes.



Act - In the final stage, one needs to understand with clarity the impact that should be made by using the new standard. It is worth taking a relook at the plan, the method by which it was acted upon, and the end results as seen by stakeholders. One may also need to guage the success and failure involved in the process.



Warning Signs and Mirages




The most important aspect that the management often misinterprets is in involving people in the change process. It is often understood to mean that they communicate with everyone through slogans, posters and notices. This is probably the worst form of communication. They seldom serve any purpose and often have no, or at best negligible impact, on the results in a coprporate setting. It is better to communicate the changes formally through short daily meetings, highlighting the achievements and progress.



The second aspect is not to go by visible figures alone as the basis of evaluating any change. It is often the invisible part of change that is far more important than the visible component.
The third aspect is never to reward or punish people based on short-term results. There have been numerous cases of people working their way around the system rather than working for the system. The biggest reward for individuals in such cases are rarely monetary. These are usually best offered in the nature of being duly recognised as a leader of the group, or appointment to a job suited to the person's aspirations. It could even be a small memento declaring the good work carried out.




And Finally we can conclude...



The journey of change has begun. As the clichéd proverb goes - the only constant is change. While embarking upon this journey, it is often not the destination, but the journey which is important. If you do things even reasonably right, it will lead you to your destination eventually. But, what you might find on this journey is that somewhere the gradient gets too steep or you are running into uncharted territory, and at this stage you may find it difficult to proceed.
I recollect a famous quote often used in rural India, which roughly translates as - "The first time is always a big issue, every subsequent time it is monkey business!" It is therefore necessary to look for help, the first time, but for that expert who has been through this several times before, it is monkey business. Would you be able to make it to the next stage of the journey? There are three facets to it - a Yes, a No and a Maybe. Yes, because failure may not be the only option and help is always available. No, because it is not a question of getting there eventually, but within a timeframe. Time and competition will not wait for you to catch up.
And the Maybe quotient; because you may be already far too deep in the water than you imagined. Getting out of the current mess may be far more difficult than thought. There may be a way out but the "cost" may be far too much to swallow. Henceforth, we should empower ourselves to l address the question of "What to do? When?"