Wednesday, January 25, 2012

Why ask for advice?-Resisting Change

Over the past several months, while I have been trying to grow my own finance company, I have been doing a lot of consulting for other smaller organizations. It strikes me funny how an outsider can come in see the same issues and problems that somebody on the inside sees and yet upper management thanks that it is a completely new revelation. 

When it comes down to it very few people in an organization are willing to take responsibility for problem even though they see it.

 That's where I come in. If an outsider, somebody with a new perspective, reviews your processes and policies and notices some of the same deficiencies that have been notated before, it sparks a sense of responsibility. 

What I consult for the organization, only 50% of my time is spent showing the organization something new, or introducing them to a new concept. The rest of my time is spent simply stating the obvious. As an outsider, I have no problem objectively reviewing a process and pointing out where the deficiency truly lies. This immediately places pressure on those with the deficient process.

It is amazing how many businesses need to be reminded that the sky is blue and that gravity causes objects to fall. Most of the consultants I know simply state the obvious.

One of my recent clients just made a decision that blew me away. They acknowledged their process deficiency and acknowledged that this deficiency was creating a liability and that this deficiency was a true threat to the organization. However, when presented with a plan to correct it, the principles of the company decided that they would rather continue with their old process.

I was stunned speechless, which doesn't happen very often.
If you know something is wrong; why wouldn't you fix it?

This organization's response was “This is how we have been doing things, since we started.

I then asked them if they were happy with the way that the business was running and they told me, “No.”
I then asked that if they were unhappy with the way the business is running why they would be reluctant to make any changes to the way they were running their business.

I came to the stark realization that even though their business processes were truly deficient and that of their company is headed in a downward spiral. The leadership of the company was comfortable in the way that they were running the business.

From their point of view, it is far easier to slide down a slide that it is to climb up the stairs. I really shouldn't say easier; I should say more comfortable.

It left me wondering why this company would pay me for my advice, acknowledge that my observations and advice were correct, and yet refuse to take any action.

If you, as an organization, are not willing to adapt incorrect your policies; why ask for advice?
I have realized that in business, it is not change that causes discomfort, it is the resistance to that change. 

  • I would suggest that everybody here full their arms across their chest.
  • Now reverse it.
  • It feels uncomfortable, doesn't it?
It's not that one way is better than the other; it's that one is more comfortable and changing our situation causes a temporary uncertainty. This uncertainty can be uncomfortable. But if you refuse to acknowledge this uncertainty and work through this uncomfortable environment your organization, like the organization that I'm working with, will continue in a downward spiral.

We as business owners and senior executives must always look for the most efficient and beneficial solution no matter how uncomfortable that change may be.


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