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It
is an inherent characteristic of human beings that they want and
need to know what is going on. Research done in the 70’s by
French and Raven found that people will only sustain behaviour
when it is based on an acceptance of the logic behind that
behaviour. We do things because we see why it is meaningful and
sensible to do them.
It
is curious then that so few companies going through the process of
change focus on enabling their staff to understand the underlying
logic of why the change is necessary. And then they wonder why
change is so strongly resisted by staff. Some argue that they do
tell their staff why change is necessary, show them balance
sheets, discuss the challenges of operating in a global economy,
and so on. However, such explanations are pointless if their staff
don’t understand the fundamentals of business logic in the first
place. Debate is only effective when both parties use a shared
language – in this case, the language of business.
The
South African economy is bedevilled by a lack of shared business
language between management and labour (and management and
management, labour and labour) – and this lies at the heart of
many of our IR, transformation and everyday operational problems.
Historically, we have been ill served with basic business
education. Only now, for example, is business education to be
offered as a general subject at school. Most staff in
organisations, including many at management level, do not
understand the basic logic of business. And without their
understanding the basics, one can not expect people to welcome, or
even accept, change.
So
we tell people that change is necessary, go ahead with the change
and then try to pick up the pieces afterwards. A seemingly obvious
alternative is to create shared understanding before change is
initiated.
Recent
experience at Iscor’s Van Der Bijl Park Works bears out the
value of this approach. After years of protection, Iscor found
itself uncompetitive in the face of international imports. A bold
transformation plan, OP-EX, designed by
UK
based McKinsey, required compressible cost reductions in the
region of 40%. To achieve this would require organisational and
work process changes that were unlikely to meet with the approval
of an already concerned workforce. Says Agatha van Schalkwyk, of
Iscor’s VDB Park Works, “If we had just gone ahead with OP-EX,
without providing staff with a clear appreciation of the ‘case
for change’, we would have faced major problems down the line.
We decided to take pre-emptive action, instituting a process of
basic business education, linked to an examination of the
challenges faced by and options open to Iscor, in advance of the
actual transformation programme. We analysed a number of
programmes on the market, opting for Business Education Design’s
Team Business which we felt provided the most tangible benefits.
The programme designers then customised the programme to meet the
specific challenges we faced.”
The
results of the programme, tracked from the outset by the NPI, have
been dramatic. Pre-programme surveys provide a baseline measure of
staff perceptions and attitudes to the planned transformation
process. Post-programme measurements then provide an index of
attitudinal and intellectual shifts. Key findings were in two
areas – understanding of business and appreciation of the
‘case for change’:
Business
knowledge:
Pre-post programme shifts:
Climate
change – understanding, and accepting, the case for change:
Pre-post programme shifts:
These
results, achieved in a state of uncertainty and retrenchments,
suggest the achievement of a critical mass within which
constructive change is possible.
Another
aspect of the process which proved valuable was the process of
buy-in by which the programme was institutionalised. Union
representatives were consulted throughout the process and the
programme run for their evaluation and comment. Then, before
roll-out of the programme began, divisional and regional managers
attended the programme. This ensured their understanding of the
process their staff would be engaged in, and the types of
responses to expect. Involvement of management also promotes
acceptance amongst lower level staff.
Andrew
Hofmeyr
(BA,
HDE (PG), BEd. Med, MBA) lectured
in educational theory at the Johannesburg College of Education and
the University of the Witwatersrand
from 1977 to 1992. During that time he studied research
methodology and educational technology on an international
fellowship at the University of Surrey, UK. He is a founder member
of Business Education Design, whose training programmes are
used by leading corporations and business schools in South
Africa
and the
USA. He can be contacted at andrew@bused.co.za
and at the Business Education Design website www.bused.co.za.
Short summary
Business education can facilitate better communication between
management, employees and labour about proposed organisational
transformation.
Keywords and relevant phrases
Attitude, behaviour, business logic, change management logic,
comment, communication, constructive change, consultation, debate,
education, evaluation, fundamentals, labour, management,
motivation, need-to-know basis, participation, perception,
retrenchment, survey, sustainable development, trade union,
training, transformation, uncertainty, understanding.
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