How Can a CEO or CFO Implement Organizational Change?

For entrepreneurs in competitive markets, a bad plan is better than no plan at all. A CEO or chief financial officer (CFO) must have vision and the courage to make decisions that consistently reflect that vision. Don't let a fear of organizational disintegration stop you from implementing changes that advance your entrepreneurial vision. Instead, manage organizational change with a set of techniques proven to ease the transitional period for yourself, your employees and your consumers.
  1. Engage the Community

    • Ask the employees, clients and partners what they think of the change you propose. Emphasize how the change will positively impact their lives. Make sure all parties understand how they will benefit from your proposed change. When people understand how impending change benefits them, they become more likely to cooperate with the change. After implementing the change, ask employees and customers how things are going. Receiving feedback helps you maintain a realistic perspective of how your new policies will influence the overall quality of the business.

    Change the Culture

    • Run awareness and education campaigns prior to implementing large-scale change. Transforming an internal culture is more effective than simply implementing new rules. To transform hospital culture, biomedical scientists host hygiene seminars informing doctors of the risks associated with not washing their hands. In Italy, in the 1980s and 1990s, restaurateurs and health advocates launched a slow food movement exposing the benefits of whole foods and the detrimental effects of fast food. Cultural transformation movements have influenced personal choice in areas as diverse as consumer behavior, driver safety and diet.

    Make Incremental Changes

    • Keep data on your customers' experiences. Companies that collect and analyze consumer data are more effective at making good decisions than than those that don't. Choose relevant rubrics of analysis such as customer satisfaction, sales conversion rates and number of incoming leads. Alter only one thing at a time; otherwise, you won't be able to tell which new policies are producing the most substantial change.

    Provide Incentives

    • Change means leaving your comfort zone and developing new habits. It can be hard for even well-intentioned employees to learn the ropes anew. Give plenty of encouragement and praise for your employee's efforts. Provide incentives and benefits to encourage the transition. Run contests, give away travel packages and offer awards and bonuses relevant to the change. Not everyone will be compliant. Develop a plan for dealing with noncompliant employees, skeptical clients and unconvinced consumers.

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