Leading a firm or a business is perhaps more challenging than ever due to the rate of rapid change in technology, cultural shifts, market transitions, generational cycling and workforce expectations.
Combined with everything else going on in our world, it makes sense to want to get off of Earth’s merry-go-round and take a long-term vacation from all the chaos. But getting through life’s tall challenges is doable. We have proven a resilient species. And as leaders in the legal industry, we have thrived through difficult changes before. So take heart: Change is here, and it can be a win-win.
I organize my thoughts about change around five key ideas that I call “change principles.”
The first principle is that change is constantly occurring. It is inevitable.
The second is that there are two ways it occurs — by entropy or through directed effort.
The extent of directed change an organization has is the extent of its innovation. Innovation occurs when we make changes to alter momentum. The goal of directed change is to realize a positive outcome. Selecting what to change should be guided by strategic intent to seize opportunities for improved outcomes while avoiding undesirable results.
Sometimes, we fall into the trap of thinking that nothing changes even though change is occurring all around us. Our traditions or the way we have always done things can either become a mantle of identity or an albatross to the organization.
In some matters, we have codified a process, habit or way of thinking that insulates, resists or prevents certain effects of change. Sometimes we do this to protect real or perceived advantages, what is familiar or what has produced favorable results. It is important to regularly analyze whether these ingrained structures remain optimal for our goals and our company culture. Otherwise, these old habits inhibit essential progress and unintentionally move the organization from protecting advantages to actively resisting what is better or necessary. For example, when we fail to implement technology to pursue more efficiency, we are no longer protecting favorable results. Instead, we are actively resisting efficiency.
Change is a people-focused activity. All change is threatening.
Change resulting from entropy is subtle and merely requires inattention or inaction. It is easy to let the grass grow too tall or to keep doing what was always done before. Progressive change is much more difficult. It disrupts the familiar and comfortable.
“As leaders, one of our essential tasks is to lead others toward a growth mindset. Leaders who teach it, live it and exemplify it are more successful in directing change.”
To produce desired results while minimizing unintended consequences, change requires direct costs such as energy, thought, preparation, research, communication, decisions, investment and planning. Whether to direct a particular change should be determined by whether the benefits outweigh these direct costs and the associated opportunity costs.
The fifth principle of change is that our overall mindset determines whether it succeeds or fails. Change is often difficult because it causes us to have to reframe how we relate with the new while having a mindset postured for the old. In other words, there is a hope with the new that competes with nostalgia for the comfort of the old.
Generally, we have either a fixed mindset or a growth mindset. Those with a fixed mindset find learning new routines or new skills uncomfortable and disruptive, if not impossible. Those with a growth mindset are energized by those activities. As leaders, one of our essential tasks is to lead others toward a growth mindset. Leaders who teach it, live it and exemplify it are more successful in directing change. Providing microlearning opportunities and recognition for growth can help increase self-efficacy — the powerful self-belief that success is possible. When people believe they can grow and that growth is both necessary and produces positive results, they will devote energy to growing and be more open to directed change.
Change is hard psychologically. For us to realize the benefits of change, we have to conquer negative emotions and thoughts associated with risk, such as fear of actual or perceived loss, cognitive distortions and bias, and feelings of being overwhelmed with yet another disruption in our lives. For people to buy into change, they must see an advantage for them even more so than the advantage for the organization.
Accordingly, leaders must invest time in considering how change affects people. Leaders who lack empathy or fail to employ emotional intelligence skills throughout directed change efforts will encounter more resistance from people who do not feel supported and are more likely to see their change efforts fail.
Our charge is to navigate and lead change in ways that support our mission, our people and our future. Using the principles of change can make the difference between success and failure. Perhaps they can even help your ride of Earth's merry-go-round be a little smoother.