Abstract

Have you felt like you’ve been through a war with change management and
downsizing?

Is implementing new workflows and new business processes causing significant

organizational resistance to change at your company?

If your new process implementation has produced a corporate culture backlash, it doesn’t mean
you’re doing it incorrectly. You may need to supplement your approach with an additional
process that directly addresses the people and organizational issues. You can successfully
manage and even enhance the effects of change management and new business processes in
several ways. You must define the contextual conditions required for effective rapport building
and inquiry/advocacy within your company. After you have done that, provide the necessary
skills to create these conditions. You can further strengthen this process by testing and
confirming skills acquisition. Finally, apply this new knowledge to both the process and to
yourself.

Introduction

In “Reengineering the Corporation,” Hammer and Champy state that “as many as 50 to 70 percent of the
organizations that undertake a reengineering effort do not achieve the dramatic results intended.”
Despite this, billions of dollars are being invested yearly in change management and new process
implementation efforts, and companies are throwing their whole focus behind many of these efforts
today. What is missing behind those efforts that fail? What is the magic ingredient used by those
companies who successfully re-engineered and applied new process solutions?

Ask consultants to describe the current deficiencies in change management projects. Some will suggest
that these deficiencies are due to a lack of communication. Others will point fingers at senior
management. Few will address the issue of corporate culture. Why? There are two possible reasons:

1. Consultants rarely have been actual internal team members of a change management effort,
experiencing the process on a day-by-day basis, personally experiencing the internal
difficulties involved in the project.

2. Few consultants offer practical steps on how to handle “corporate culture” issues. They
simply choose to ignore them.

The path of change management and new process implementation certainly is not smooth. As Dr.
Hammer says, “Not only are you trying to solve an unsolvable problem, but people are shooting at you
while you do it.” In an interview about his book, “Reengineering Revolution: A Handbook,” Hammer
admits he left out the “human side” of reengineering, acknowledging it as the harder part. The many
change management case studies show that the surfacing of corporate culture issues is due to two very
powerful forces that are occurring in companies today. The first of these forces is business process 1
reengineering; the second is the new ability of companies to provide widespread access to critical
company information.

Today, with the internet on every desktop and smartphone, access to information is synonymous with
power. But there is so much information; access to the right information is now vital. When all
employees can quickly obtain nearly identical information, it’s analysis, synthesis, and filtering will
become the foundation for empowering them. The individual and the team who synthesize multiple
sources into a coherent whole, and distribute useful and timely information, will become the power
center within the organization.

Providing open and dynamic access to information profoundly impacts corporate culture. However, a
lack of attention to the impact of business process changes on people, combined with open access to
critical company information, creates a sometimes subtle, sometimes dramatic resistance to
implementation. When a company embarks on a mission of implementing change, an additional focus is
required to solve the problems that develop along the way. It takes an innovative process to manage this
resistance and utilize its hidden but beneficial potential. The first step in establishing this process is to
create a foundation, a context within which it can start and ultimately flourish. A company-wide rapport
(nurtured with empathy) is the proper context to establish.

How to Develop the Correct Context for Rapport and Empathy

Context. The circumstances in which an event occurs; a

setting.—The American Heritage Dictionary

A company must consciously start to create “a setting” that:

• Supports mutual trust and affinity.

• Communicates clearly that the company believes in establishing rapport and empathy across
all levels to help foster success and profitability.

• Resolves issues and finds reasonable solutions for all individuals seeking mutual
understanding.

Unfortunately, by ignoring the need for rapport, many companies create a negative context, often
resulting in divisive behavior. A company can damage and often destroy the context of rapport and
empathy by taking the “someone’s to blame” stance. As organizations downsize, reengineer, and
implement many new technologies, it is easy to forget that process redesign often means starting from a
blank sheet. As the new process rolls out, errors can and do occur. Management often focuses on the
pure content of the situation, the event, or the problem, instead of the overall reengineering process.

1Where a process is defined as a condition, a mode or state of working, brought about by a series of actions,
changes, or functions.
As many companies have a “blame complex,” you should work to build a new context wherein success
is a process, not an event. For example, this process should comprise a set of assumptions, such as the
following:

• Continually strive for the best and realize that no amount of planning or strategizing can fully
cover the richness, complexity, and uniqueness of a concrete situation.

• Correct any error, although it is unlikely that the action you design and implement will be
adequate to prevent its repetition in a new situation or context.

• Consider your past actions merely steps along the path towards perfection. Consciously
learning from your past means you are at a better place now than you have ever been, and
you are going toward an even better future.

• Focus on the process of perfecting your actions and strategies, not on whether you are
perfect.

• Realize that at the outset of every “bad” action lies a good intention. Mistakes will not be
made intentionally, but they often occur out of ignorance or unpredictability - “never assume
maliciousness when stupidity and ignorance will do.”

A problem behavior is a perfectly understandable response to a past context in which a person had
limited information and understanding. Perceiving that someone has good intentions changes our
response when the person is exhibiting problem behavior. Agree with the person’s intention and validate
his or her humanity, even though you don’t or can’t excuse the behavior. Instead of bickering or
blocking, join in the search for alternative behaviors that achieve mutual satisfaction.

Virginia Satir, a noted psychologist, said, “Problems will always be with us. The problem is not the
problem; the problem is in the way people cope. This is what destroys people, not the ‘problem." This
level of understanding in a team context allows people to “own up” to failures and mistakes so they can
be quickly resolved.

The focus moves from the number of mistakes to an individual, team, or organization’s ability to
respond to errors. In Daniel Goleman’s book “Emotional Intelligence,” he discusses how our view of
human intelligence is far too narrow, ignoring a crucial range of abilities that matter immensely in terms
of how we do in life. Goleman writes, “The single most important factor in maximizing the excellence
of a group’s product was the degree to which the members were able to create a state of internal
harmony.” In Goleman’s studies on the “stars” in companies who were able to complete major projects,
he says, “the critical differences emerged in the interpersonal strategies ‘stars’ used to get their work
done. One of the most important turned out to be a rapport with a network of key people.”

The Meaning of your Communication is the Response it Elicits

When it comes to communicating, act in accordance with this assumption to remove the “us versus
them” attitude. Imply a relationship and a personal responsibility to communication. All employees
should recognize that their communication can impact others in ways that may be different from their
intention. If employees want to accurately express ideas, what they say, and how they say it should be
weighed carefully before the words are spoken.

If an individual communicates one thing, and the receiver doesn’t understand it, it is no longer the other
person’s “fault.” It is now the responsibility of both the communicator and the receiver to understand
why the message is not getting through and to try again. However, even with good intentions and the
best communication possible, some people will still resist change. To support the entire company in
responding to change, it is necessary to add another assumption that combines compassion with strength.

During the implementation of any major corporate change, people find “innovative” ways to restrict
progress, often by simply not providing support. At this juncture in the process, it is important to strike a
good balance between supporting people and getting the job done.

Be Tough on Behavior, and Support People

Make it clear to everyone that ideas and feelings will be considered, but any action or behavior that is
not consistent with the new governing values will not be tolerated. This not only gives people a sense of
support but also delineates guidelines of what can and cannot be done. When starting change
management at Hallmark, the president said, “We are embarking on a long journey, on this journey we
will carry our wounded, and shoot the stragglers.”

Supporting individuals at the beginning, middle, and end of this long march requires that they have a
greater sense of purpose and self about what they are doing. This is the key because during this time
employees are encouraged to have a greater perception of “me.”

In The Fifth Discipline, Peter Senge states, “We are used to thinking of compassion as an emotional
state based on our concern for one another. But it is also grounded in a level of awareness. ... as people
see more of the systems within which they operate, and as they understand more clearly the pressures
influencing one another, they naturally develop compassion and empathy.”

Harvard Brown & Company’s Gerald O’Dwyer 2 describes four main phases of growth:

1. At the first level, people often behave with the attitude of “me as myself” — the central
concept being “blame.” At this level, it is commonly felt that “I could get my job done if
others would leave me alone and do their jobs." This can be destructive in any collective
enterprise.

2. At the second level, a person can feel as “me as the group.” The concepts here are
responsible, one-way, and static. At this point, an individual feels accountable and holds
others accountable. He or she does the job and expects others to be responsible, too, but does
not encourage others to be responsible in return.

3. The third level is “I am the team.” Here the concepts are discovery, curiosity, learning,
understanding, two-way, and dynamic. In this state, an individual holds others accountable
for being responsible and actively encourages others to hold themselves accountable. The

2 Communicate to Get the Response You Want - Harvard Brown & Company.
 individual actively follows up with others to understand the situation when commitments are
not kept. This level provides an excellent platform to work from, but can still allow
independent “turf battles” or “isolated information silos” to occur within a company.
Although the individual focuses on the solution, he or she can still fall back to working at the
level where the initial problem resided. Albert Einstein said, “The significant problems we
face cannot be solved with the same level of thinking we were at when we created them.”

4. The fourth level is “I am the organization.” Here the concepts are: discovery, curiosity,
learning at an organizational level, explainable, and systemic. The individual acts bilaterally
with others and seeks to see the “big picture.” The individual actively coaches others to do
the same and regularly engages in dialogue with them to gain mutual understanding.

The following table summarizes these four state stages and the attitudes associated with each stage.

Perceptual Position Concepts

Me as Myself Blame, problem
Me as the Group Responsible, one-way, and static
problem
I am the Team Discovery, curiosity, learning,
understanding, two-way,
dynamic, solution
I am the Organization Discovery, curiosity, learning on
an organizational level,
explainable, systemic, process

By providing a focus on rapport-building and support, individuals can widen their perspective of who
they are in the organization. This, in turn, can lead to a greater sense of ownership in everyday activities
and as a consequence a reduction in issues that span the boundaries of separate departments. Creating a
context for rapport and awareness is necessary for the success of the organization. But it is not
sufficient. An additional context needs to be added. One that is based on an inquiry into the deeper,
more obstinate issues in the company. We need to address those issues that never seem to be resolved
and continually reappear in spite of the best efforts of management and consultants alike.
Obstinate Business Issues and Effective Action Strategies

Without effective action, the above new context will not produce the necessary changes. In fact, it will
probably be viewed cynically as more management “fad surfing 3.”

To make the new context, a reality, skills and action strategies must be developed and relevant training
provided. These elements must support the elevation of the key business issues that have, so far, resisted
a solution. Action strategies need to be implemented, and they must support an effective dialogue of
inquiry and advocacy to resolve problems. Although these issues have always existed within the
organization, they have been buried in the mire of inefficient communication. Implementing new
business processes can highlight these issues and make them more visible. Examples 4 of key business
issues include:

• Actions intended to increase understanding and trust often produce misunderstanding and
mistrust.

• Blaming others or the system for poor decisions.

• Organizational inertia.

• Upward communication for difficult issues is often lacking.

• Budget games are necessary evils.

• People do not behave rationally, even when it is in their best interest to do so.

• The management “team” is often a myth.

Professor Chris Argyris 5 of Harvard University’s Education & Organizational Behavior department
argues that these issues are based upon defensive routines and, at their source, are grounded in an
individual’s embarrassment and fear. While a team may work well on standard problems, when
confronting complex issues that are embarrassing or threaten, “their ‘teamness’ seems to go to pot”5 as
their defensive routines surface. These routines take the form of policies or actions which prevent
individuals, groups, and organizations from experiencing embarrassment or threat. Moreover, these
defensive routines are “self-sealing.” For example, if an action that helps to reduce embarrassment is
made public, it would be ineffective. Therefore, it must also be hidden.

3 Fad Surfing : The practice of riding the crest of the latest management panacea and then paddling out again just in time to
ride the next one; always absorbing for managers and lucrative for consultants; frequently disastrous for organizations. From
“Fad Surfing in the Boardroom : reclaiming the courage to manage in the age of instant answers” by Eileen C. Shapiro
4 Knowledge for Action : A Guide to Overcoming Barriers to Organizational Change / Chris Argyris, 1993.
5 Overcoming organizational defenses / Chris Argyris, 1990.
Business issues—found within both the organization and the individual—spawn rationality, excuses,
and statements that perpetuate negativity. Some examples are:

• “Well that’s the way it is, and it’s always been like that ”

• “It’s always management’s or the employee’s fault. Why can’t they see we have to change?”

• “You can’t do anything with those people over in __________________ (insert a department
name); they just don’t listen.”

Most corporations reinforce the context by not investigating these issues but instead rewarding those
who excel in advocating their views without probing internal issues. As Senge questions, “When was the
last time someone was rewarded in your organization for raising difficult questions about the company’s
current policies rather than solving urgent problems?”

A new set of action strategies for effective dialogue needs to be adopted. To create a new process of
openness, rapport, and acceptance of change, consider the following:

• Advocate your position.

• Evaluate the thoughts and actions, not only of others but of yourself as well.

• Attribute causes for whatever you are trying to understand.

• Do not bypass and cover up embarrassment or threat; they are actively hunted and engaged.

• Ask questions if you see a mismatch between what is said and the consequences of what is
communicated.

Effectively Supporting Action Strategies Requires Skills

The most difficult skill required to support the new strategies is the engagement of embarrassment or
threat. Extensive training and practice in specific skills are crucial to the successful implementation of
this process. Two skillsets are required: First, building and maintaining rapport and second, effective
inquiry and advocacy.

In Emotional Intelligence, Goleman states that rapport and empathy are “fundamental to the skill of
management.” But rapport without a focus on addressing the crucial issues will not support successful
businesses. In The Fifth, Discipline Senge states that “without the interpersonal skills, learning is still
fundamentally adaptive, not generative. Generative learning ... requires managers with reflection and
inquiry skills, not just consultants and planners. Only then will people at all levels surface and challenge
their mental models before external circumstances compel rethinking.”

Many institutions offer development and training of interpersonal skills in inquiry and advocacy. One of
the most effective investigations was done in the mid-1970s by John Grinder, a professor at UC Santa
Cruz and Richard Bandler, and following them by Cameron, Gordon, and Lebeau 6, in modeling and
reproducing human competence. Grinder and Bandler believe that “People do not operate directly on the
world, but operate necessarily on the world through their perception or model of the world.” In Argyris’s
terms, this model would be the governing values, the inner values of the individual or organizations.
Using the tools developed by Grinder and Bandler, it is possible to train and develop the necessary
interpersonal communication skills required to deal with the obstinate issues mentioned above. The
issues that are typically raised during change management and new process implementation.

Rapport Building is Fundamental

Dealing with embarrassment or threat can be handled effectively in an environment that rewards rapport
and empathy. Grinder and Bandler have proposed the following specific skills:

• Determining an individual’s internal representational system.

• Screening for an individual’s communication predicates.

• Developing personal perceptual acuity while communicating.

• Pacing and leading during communication.

• Understanding and using perceptual positions.

• Dealing with conflict using small chunk reframing of conversational assumptions.

As teams replace the individual as the “work unit,” Goleman suggests that “emotional intelligence, the
skills that help people harmonize, should become increasingly valued as a workplace asset in the years
to come.” After you have developed rapport, you need to address the crucial issues that have resisted
efforts in the past. You need to be proficient in both inquiry and advocacy. Change teams often focus too
much on advocacy and too little on inquiry. Asking a question that has a clear intention is often the best
way of advocating a particular position.

Skills required for inquiry and advocacy include:

• Detecting deletions, distortions, and generalizations.

• Asking questions that support well-formed outcomes.

• Creating and anchoring new action strategies and governing values.

• Using language presuppositions to support new states of understanding.

Training and applying these skills can help you establish a powerful position in favor of resolving
crucial issues. At the least, you raise all the potential issues so that decisions can be made consciously

6 The Emprint Method : A Guide to Reproducing Competence / Leslie Cameron-Bandler, David Gordon, Michael Lebeau
and with an understanding of the ramifications. Doing this in a context of open inquiry elevates the
awareness level from the issue itself to a higher context of the team or organization. Achieving this, you
have begun to fully implement and nourish the initial contexts of rapport and effective dialogue. Once
we start to accomplish this, you need to review the efforts you have made, then test and measure to
determine your level of success.

Confirm and Test for the Governing Values to Produce Results

The axiom “If you can’t measure it, you can’t manage it” is also true with this process. Here,
measurement means not only the implementation of new culture rules but also how effective the actions
and behaviors of everyone in the company are in establishing rapport and open inquiry. Measuring these
elements can be achieved through several forums, including surveys and focus groups. Another forum
might require that members of the change team attend departmental staff meetings and observe the level
of openness and discussion of crucial issues. These and additional forums should be used to collect
information and determine the success of the new process.

Another tool to confirm and test for changing cultural values is the “employee performance review.”
This should involve as many people as possible who interact with the employee being reviewed.

Having a “360-degree” review can provide valuable information to an individual who is a member of a
team. Many people may fear such a review as they might be apprehensive of the response from people,
either peers or fellow workers. But we can no longer afford such an attitude in today’s business. The
work accomplished within a company is often beyond the scope and capability of one person. A fair and
complete review by as many people as possible who interact with you can be a treasure trove of
information in how you personally can become more effective and thus more valuable to the company.
Similarly, the change management team requires review by the people in the company with whom they
are working. A key ingredient in measuring change is to measure the people in charge of change.

The Corporate Renaissance Beckons through Self-Application and Action

The change team does not do this process in isolation. Nor is it used by the team as a scientist would run
mice through a maze. This process must not only be done at the organizational and individual level but
also actively used and integrated by those who seek to use it within the company. Self-reflection and
engaging hard, embarrassing issues become crucial. If the implementation team cannot create a role
model for the new behavior, this will carry over to the rest of the company and foster increased cynicism
or contempt. Implementing this process becomes an exercise of self-referencing both for the company as
well as the implementation team. The key questions to ask are: “What are you covering up?” and
“Where are you feeling embarrassed or afraid?”

Conclusion: “You Must Live the Change”

Do you recall the two questions posed earlier in this white paper?

• “What was missing behind the efforts of those who fail?”

 • “What was the magic ingredient used by the companies succeeding in change management
and the application of new business processes?”

Applied to either question, two essential elements are required:

1. A clear and practical plan of action.

2. A commitment to continually fostering rapport and inquiry at all levels within a company.

This flows from the organizational level, through the team level of departments and the management
team, down to the personal level. Creating a new context of rapport and open dialogue while learning
and using the skills sets needed to establish and maintain these states can shift the corporate culture from
a dysfunctional state to one that supports growth and change. By unifying the separate elements of
organizational and technical change, it becomes possible to create an ongoing and self-sustaining
process that promotes continuous growth. In summary, the steps in managing the backlash by the
corporate culture to change management and new business processes are:

1. Create a context for rapport and effective dialogue within your company.

2. Train the people in the skills needed to succeed.

3. Develop an action strategy that supports open discussion, effective inquiry, and advocacy.

4. Confirm and measure at each step in the process.

5. Continually re-apply the process to the organization, employees, management, and the
implementation team.

By implementing this process, you can successfully manage and enhance the effects of change
management and new business processes. Use them as leverage to deal with your company’s most
persistent issues. You can bring a company from culture backlash to renaissance. To make this process
work, it is not sufficient to simply practice the skills.

Finally, as one noted change manager of the 20th century said, “You must live the change.” 7

7 Mahatma Gandhi
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