Paradox of Change

Paradox of Change

strategic planning

How do you get a 747 to veer sharply and change direction? Can you turn a ship to turn on a dime? How do you get an 18-wheeler to suddenly turn sharply without toppling over?

I asked these very questions to a group of health management executives. Later that same day I asked my class of MBA students. Everyone answered that an immediate and sharp change was not possible. Imagine a plane propelling through the air, a ship plowing through waves, or a truck speeding down the highway. This perspective logically leads us to conclude that, no, they cannot make a sudden and sharp change of direction.

The correct answer to all three questions is that you first slow way down or even stop before making the turn. In the case of the 747, it’s advisable to be on the tarmac. A ship can turn 180-degrees in port, and we’ve all seen an 18-wheeler successfully make a U-turn at an intersection. Instinctive reasoning leads everyone to answer incorrectly. I call this reasoning pivotal paradox: the reliance to base our understanding of change on prevailing assumptions.

The Limits of Prevailing Assumptions

When we think about change, prevailing assumptions immediately limit us. They draw us away from opportunities and possibilities. How does this play out in organizational change management? Most organizational leaders make a significant investment in planning and strategy. Then, when external or internal factors dictate the need for change, they fall back on the same methods and processes practiced in the past. The pivotal paradox is that when we look at the statistics of just how successful organizations are in making change with these “tried and true” methods, we see a deep downward trend.

Strategic Planning Survey

At a recent talk I polled the audience of healthcare directors and CEOs on their strategic plan. I asked first, “If you have a current strategic plan, how confident are you that the plan is better than adequate for navigating the next 3-5 years? As you can see from the results below, over one-third were less than confident. Only 4% were very confident in their strategic plan.

confidence in strategy Question 3When asked, “How confident are you that the organizations’ leaders you need to be on board with the strategy are in fact on board?” the tally indicated that over a third were less than confident. These results are better than the daunting nationwide polling numbers. Success rate for planning change (strategic planning, change efforts, and organizational transformations) ranges from 10% to 37%. This rate has been consistent for 25 years.

The reality begs the question, why do leaders rely so heavily on past change practices and systems when they consistently yield poor results?

Altering Prevailing Assumptions

The pivotal paradox is that while prevailing assumptions lead us to invest significant time and energy on process, practice and structure, we need to reconsider. Large-scale transformational change is characterized by fundamentally altering the prevailing assumptions about how an organization functions and relates to its environment. The strategy is instead oriented primarily toward a change in attitude, beliefs, and values. It is oriented secondarily toward processes, structures, and systems.

As we close out the year we often assess current strategy and planning for the future. Take the time to consider what and who truly drives change, and how they are incorporated into strategic planning. Should you need some guidance on your strategic plan, please contact us.