Hi there, Last summer I was in Seattle.
I used this occasion to meet up with a few dozens of our alumni students in this region.
Amit, a 23 years old tall guy who studied his college in USA and made his MBA-CFP degree online with us, mentioned to me about an experiment he'd recently conducted.
He works for a multinational retail and cloud service/software giant in Seattle (guess which one).
Amit was in charge of optimising some key financial processes which oversaw third party providers on their platform.
He told me that the processes in place had been almost as old as 10 years, and they could barely cover specifics of increasing numbers and types of non-tangible goods.
Good one.. :)
Lucky enough resistance against change wasn't also missing on his long list of things he had to deal with.
You probably know what I mean, if you've ever witnessed what was happening while 10 years old processes were being attempted to change.
Apparently, for his "seasoned" colleagues, everything was good enough. And newcomers used to learn to bite the bullet in time.
Sounds very familiar, isn't it? It does to me. At least when I look what I left behind.
Anyway, Amit said to me: "I didn't have much experience with change management projects. I wasn't a good negotiator. I was average at best, but I had to do something."
Then he explained to me how he'd experimented using "loss aversion" to plant the seeds for change. Very smart! If you may not be familiar with "loss aversion" concept, you should. You can thank me later..
According to our big brother who knows everything (Wikipedia)
"Loss Aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains: it's better to not lose $5 than to find $5. Some studies have suggested that losses are twice as powerful, psychologically, as gains. Loss aversion was first demonstrated by Amos Tversky and Daniel Kahneman."
For you here in this post I tried to summarise the lessons I learnt from Amit's experiment. Read on.. You are awesome as you've come so far.
The classical approach to drive change is to present its financial business case and supporting organisational benefits.
How instantly Change would enhance our teams and excel the interactions within our organisation and with our client ecosystem. How wonderfully our companies would serve customer-oriented products and services.
Is this really the correct approach? Is it better to highlight benefits of adopting a Change or the cost of not adopting?
According to Peter Salovey who is the originator of emotional intelligence, your approach to drive organisational and operational changes associated with Change must depend on whether your organisation perceives Change as safe or risky.
If your organisation thinks Change is safe, first of all let me congratulate you to be part of such an open-minded culture in your organisation. The ones among us who experienced multiple Change management and transformation projects would say that your job to adopt Change is mostly done. But don’t quickly relax. You still need to work hard to emphasise all the good things that will happen if your organisation adopts Change. They will want to act immediately to obtain those benefits.
When your organisation believes that Change is risky, don’t get worried. Welcome to the club... You are among most of us. Don’t forget that your approach with Scenario-1 alone does no longer work here. Your organisation is now comfortable with the status quo, so the benefits of Change aren’t sufficiently attractive to take action. There is no point to deny the risks as they are usually rooted from the belief systems and long experiences.
Instead, you need to shake the status quo to destabilise it and accentuate the bad things that will happen, the opportunities that will be lost if they don’t adopt Change. Taking a risk is always more attractive when they are faced with a guaranteed loss if they don’t take the risk.
The prospect of a certain loss will create a sense of urgency, make your organisation take action, invest resources to understand the benefits of Change and ultimately adopt it. Sometimes slow, sometimes fast, but always one step at a time.
If you have ever been curious why it was so challenging for many organisations to adopt Change, you may have an opinion now.
Corporations and established organisations are risk averse entities and they usually fit to Scenario-2.
By injecting "Loss Aversion" in his arguments, Amit helped people in his organisation understand potential adverse effects and losses without change instead of solely focusing on why the change is good and required. Well done!..
You can’t sell them Change by solely focusing on the benefits they would get from it. They wouldn’t buy your idea.
You need to make your organisation face: Things may look OK today, but they are not. You need to make this a joint responsibility in your organisation to avoid the guaranteed loss without Change.
I hope you enjoy, and thanks again for your support! :)
IO4PM International Organization for Project Management is an independent Institute which helps Organizations and Professionals get accredited with worldwide renowned and recognized Project Management Certifications and prove their competence in Project Management domain. We empower Project Management Professionals worldwide to build their Careers, and Companies to sell their Outstanding Products and Services.
Your Project Manager Accredited Certification, Program Manager Accredited Certification, Product Manager Accredited Certification, Service Manager Accredited Certification, Project Quality Manager Accredited Certification, Business Analyst (Project Requirements Analyst) Accredited Certification, Project Manager Trainer Accredited Certification and Project Manager Coach Accredited Certification Programs have proven their worldwide Acceptance and Reputation by being the choice of more than 679,000 Project Management Practitioners in 143 Countries.
Project Management is a set of open Product and Service Delivery Frameworks, and yet before IO4PM International Organization for Project Management was founded for you, there has been no reasonable way for Project Management Professionals like yourself to obtain Project Management Certifications and to prove your competence in Project Management domain. Project Management Professionals had to pay expensive fees for the one way profit-driven Project Management Certification Programs of other Certification Entities.
IO4PM International Organization for Project Management aims to remove these barriers set in front of the Project Management Professionals in developed and emerging markets by saving them from paying unreasonable fees for Project Management Classroom Trainings and Project Management Certification Examinations before they certify their knowhow in Project Management. Moreover, feel free to check out "What makes Your Project Management Certification Programs Best of the Industry?" section on our home page to read why we perform and serve you far more better than our competition.
IO4PM International Organization for Project Management provides 6 major Online Project Management Certification Programs which are designed by our consortium of renowned Business and People Leaders, Project Management Coaches, Mentors, Experts and Authorities from all major Industries. Let's check out About Us page to find out more about your worldwide renowned and recognized Project Management Certifications.
As of May 2019 we are glad to announce a collaboration agreement between Veterans & Youth Career Collaborative (VYCC), Long Beach California and International Organization For Project Management™ (IO4PM™).Join This Discussion >>
Date: 25th May 2019
Location: Offices of IO4PM™ International Organization for Project Management™ (Wollerau, Switzerland)
Many thanks for coming our page to read this short letter where we articulate 8 reasons why IO4PM™ International Organization for Project Management™ serves you far more better than its competitors.
Before we deep dive details of this letter, let’s make it clear that we want to truly acknowledge your continuous support and trust in IO4PM™ International Organization for Project Management™.Join This Discussion >>
Hi there, Have you ever wondered why only too few people are successful? Many people work hard, they constantly chase for opportunities but still they have to spend and finish their careers with unsubstantial results. This is sad, so is the truth.
Like unsuccessful people, successful people chase for opportunities too, but what makes success scarce whereas mediocrity is abundant in professional careers?Join This Discussion >>
Hi there, I love that you're here because one of my favourite things to do is take a smart professional and lifetime student like yourself and make you become even more successful.
It's something that I practice in my own career, of course, but I love helping others too.Join This Discussion >>
Are you good at business models?
Of course you are. We know all about business models, don’t we?
A lifetime as a consumer and almost a lifetime as a professional we all believe that we are well proficient in business models. We don’t hesitate more than a second to give our opinion if a business idea will work or not. And we are very generous to give our feedback how a company can perform better. But do we really have enough insights about business models?Join This Discussion >>
You are moving from the world of fixed nouns towards a world of fluid verbs. Within the next years you will continue taking solid things -such as a car or a jacket- and turning them into intangible verbs. Your products are becoming your services and processes. With high doses of built-in technology, your car is becoming a service, continuously updated set of benefits adapting to your own usage and feedback, fierce competition and global innovation.Join This Discussion >>
Hi, How are you doing? Today I wanted to share Part 1 of 2 of an experiment I did some years ago.
The results were pretty interesting. I'm going to share the whole process with you. But use this with respect to others. Reread what I wrote in the previous posts about caring for your people and helping them.Join This Discussion >>
Hi, it's Yeliz!
Let's see if you guessed correctly. The end result of the experiment I mentioned at Part 1 of 2 was Consistency.
And when I leveraged that consistency, I was able to get more support from these leaders and managers than I ever had up until that point. Here’s why.Join This Discussion >>
Hi there, I hope I found you well and healthy. I am writing you about a subject that I was thinking since long time to write about it. Today is the day. :)
Are you looking for PDUs (Professional Development Units) to get or maintain a degree?
You shouldn't. Here is why? Because PDU is a byproduct of Lock-In Business Model, and this business model badly takes advantage of students.Join This Discussion >>
Dear Friends and Colleagues,
For the last few weeks we worked hard for you to make this revamp happen. If you are curious to know how IO4PM International Organization for Project Management uses Scrum, here are two simple facts for you which may be also a benchmark for your own agile delivery projects.Join This Discussion >>