February 2001 FAQ

Q: What are the most important reasons why big changes in organizations don't work?

Looking across the major organizational change initiatives that we call Red Zone Maneuvers (reengineering, ERP implementations, mergers, culture changes) reveals some common reasons for failure. Those most common reasons or pathologies are:

• Lack of High Quality Executive Support
  
• Lack of Comprehensive and Detailed Up-front Planning
  
• Too Narrow Involvement of the Organization
  
• Inappropriate Delegation for Critical Leadership Responsibilities
  
• Undisciplined and Incomplete Project Management

Here is some detail on the first and perhaps most critical reason for failure of big change.

Lack of High Quality Executive Support

What kind of executive support is required for a successful Red Zone maneuver? Such fundamental change needs major doses of vision and perspective as well as executive time and energy. Vision and perspective are needed to keep the Red Zone maneuver on track. A high quality vision is needed to ensure that the organization will be moving toward a good business model that has a change of winning in the marketplace. Executive time and energy keep the train moving, even on what most firms find to be some pretty tough hills.
As shown in Figure One, executive vision and perspective are a mix of actions and mindsets that provide both long-term and day-to-day direction. These include:

• Foresight—the ability to see the future picture of the company as a new venture, as a winning competitor after the Red Zone maneuver.
  
• Attribute sensitivity—the ability to see the attributes or resources that need to be changed to give the new venture the capabilities needed for success.
  
• Targeting—the ability to select and sponsor the right attributes to focus on during the Red Zone maneuver
  
• Balance—the ability to weigh the energy focused on running the business with that needed to complete the Red Zone maneuver.
  

Along with high quality vision and perspective, executives have to commit the time and energy needed to make the Red Zone Maneuver happen. The key challenges in terms of hands-on executive involvement include:

• Personal time commitment—Direct involvement in the form of setting and communicating goals, defining employee incentives for attaining these goals, providing action plans, hearing presentations, and removing obstacles. Evidence from firms that have successfully completed a Red Zone maneuver suggests that top executives should spend 20 to 50 percent of their time in direct involvement with the project.
  
• Best people—Assigning and convening the very best employees on the project. This not only allows the firm to capitalize on their expertise and ability but also allows those people to lead the Red Zone maneuver and enlist support from other members of the organization.
  
• Resources for implementation (time and money)—Assigning enough time and money to successfully complete the Red Zone maneuver. Successful Red Zone navigation may take as long as two years, starting from a "clean slate" to finally implementing what amounts to the new business venture. During this period, top management has to withstand the impatience of employees as well as stockholders.

    Executives who support a Red Zone maneuver with time and energy but not with vision and perspective only serve to increase "pressure" on the organization. Executives whose only support is vision and perspective can make the reengineering effort seem more like "hollow words" than a reality. And the executive who shorts both dimensions of executive support shows a benign "neglect" for the organization and its Red Zone efforts.

Dutch Holland, CEO of HDI, has worked as a management consultant for 30 years, helping organizations and leaders manage and implement change successfully. If you enjoyed this short article on Red Zone Management, you'll love his new book, Red Zone Management: Changing the Rules for Pivotal Times, (Dearborn Trade, Chicago, Fall 2001.) Check your local bookstores or read a review at amazon.com or barnesandnoble.com! Contact Dutch at 713.877.8130.

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