Managing Personnel Changes -
Business, Better than Usual
Andy Zavoina CRCM, BOL Guru
Managing changes of key personnel in your organization can be a key to the successful transition of authority. Handled poorly, other key personnel could feel threatened and even leave your organization. Here are some tips for your consideration on the change management issues involving your key staffers.
People Resist Change
By their very nature people resist change. This is even though change is known to be necessary to progress and improve. Tom Peters said "if you're not getting better faster than the other guy is getting better, you're getting worse." Managers realize that change is necessary to get better. But it takes people out of their comfort zones, and this is what they don't like. It is important then for your team of bank employees to understand the changes being made to the extent they have a need to know, and to allow them to expand their personal comfort zones.
Management should take a hard look at themselves before making changes at the "seniors" level, senior vice presidents, lenders, and officers across the board at this level of the organizational chart. Often, management believes they want the staff to embrace change, but the new manager doesn't allow them to. There needs to be clear boundaries and expectations on all parts and they should be monitored and followed.
There are two main reasons for changes in key personnel that we are concerned with here. The first is as a replacement of someone, at the bank's request, and the other is as the addition of a new manager. In both instances the desire of senior management and the board would be to integrate this person into their existing cohesive team. In some instances the desire would be that this person develops or refines the team of employees they'll be working with. The addition may be meant to bring on change with a different perspective than they have had before. The intent may be to shake things up a bit and expose everyone to some new ideas.
Accepting Change - the Grieving Process
The five stages of the grieving process are similar to what your employees go through when there are replacements coming in or cutbacks heading out the door. Recognizing this and meeting the needs of valued staff is important to retain those you want and improve transitions.
Denial - No, this can't be happening here. We've worked together for so many years.
Anger - It is someone else's fault that this happened. Audit brought up the problem and could have let it go, or that other manager isn't carrying his weight, why isn't he gone.
Bargaining - Well, at least it wasn't me.
Depression - Am I next?
Acceptance - Whatever happens happens. When a door closes, a window of opportunity opens.
Communication
Communication of the bank's strategic plan should be known to those who are affected here. If they understand why the new manager was brought in, and the new manager understands that as well, they can all work more effectively together to accomplish their common goals. The new manager need not demonstrate that hiring him was the right decision by implementing radical changes as soon as they can. Also, if several people were brought in and worked for the same bank in the past, decide how much of that other bank should be brought in. I saw multiple senior managers hired in. During meetings they joked about the old days and how things were done. Then they adopted those ways at the new bank, complete with policies, procedures and forms. Suddenly the employees who were in the "grieving" process felt like the outsiders. This wasn't seen as a shift, but a radical change. Those mid-level managers were unsure as to how they should react. Should they accept the recommendations carte blanche, or should they build on them incorporating new ideas with older proven methods?
Valued staffers need to understand management's objectives. And they need to be encouraged to share their opinions with the new manager. If they don't they may be hurt when their perceptions differ. And that will only lead to dissention later as well as fragmented attempts to achieve a goal. If a car was stuck in the mud, those trying to get it out need to understand if they should push or pull.
In some instances, if this change was instigated by a cutback and it is believed there will be another round, staff will begin to realize that leaving now would put them in the limited job market sooner and ahead of the folks who may soon be scrambling for a new job. The lesson here is that those you value need to know. They should understand the game plan.
Executive Steps:
- Understand why change is necessary and how this will help achieve the goals set forth. Hire the new key staff to fill that role.
- Recognize your existing key staff and communicate with them. Be the coach, but have a team which understands long term goals.
- Encourage new key managers to take their time before implementing change. Everyone needs to understand the supporting information and impact of the actions before implementation. Don't rush it.
- Ensure that existing procedures, products, customer relationships, commitments and more are understood as changes take place. Not everything needs to change.
- Use existing key staff to work closely with new ones so that existing business is understood, and new methodologies are accepted.
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First published on BankersOnline.com 4/24/07
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