Is Incrementalism a Path to Progress? That Depends In my experience, companies wanting to transform themselves either to adapt to a changing market or to position themselves for growth take one of two approaches: incremental or abrupt. In some circumstances, incremental change can lead to dramatic change, if guided appropriately. Incremental change is most useful as a step-by-step tactic to achieve a strategic goal that likely would fail if abrupt change were attempted. Definition of “Incrementalism” Incrementalism occurs when small changes are made sequentially to result in monumental change. By contrast, an abrupt change means changes extensively planned and imposed together, commonly referred to as a Big Bang approach. Readers who lived through the reengineering era in the 1990s can relate to that period’s common approach of making large, abrupt, non-incremental changes when dismantling and rebuilding processes. That approach worked, except when it didn’t, which was much of the time. In one sense, people use incrementalism without knowing it because it is the intuitive way to tackle everyday problems. In daily living, without too much planning, a person can deal with an issue as it arises. This is appropriate when dealing with a small challenge that requires a slight modification. But to make a significant, lasting change, the increments must be oriented towards a much larger ultimate change and need to be paced appropriately. Benefits of Incrementalism Think of incrementalism as continuous improvement: a constantly striving, step-by-step approach to achieve larger goals. Incrementalism’s benefits include that it: · Partially avoids resistance to change. Large, drastic changes often trigger fierce resistance within organizations. Smaller changes allow those impacted to adapt without feeling like their world is falling apart. · Is expedient. Since it does not involve radical and complete change, it is more easily accepted. · Is simple to understand. It is easier to put into practice because it slightly adjusts, but doesn’t appear to significantly challenge, past practices. · Is very flexible and visible. Its impacts are quickly apparent, so steps can be adjusted easily when necessary. · Avoids or ameliorates conflict. Small changes are less likely than wholesale changes to drastically affect a group of employees and cause conflict. Disadvantages of Incrementalism If incrementalism is so great, why do companies often engage in long-term planning and make drastic, sudden changes? The answer is that incremental change presents some downsides, such as: · It limits focus on immediate issues or problems. Time often is spent, even wasted, dealing with those immediate concerns – this is known as firefighting – rather than addressing core issues. This can lead to painting oneself into a corner with consideration of the implications of a series of individual decisions not realized until much too late. · Beagle Fallacy: A beagle hound has a very good sense of smell but limited eyesight, and thus could miss visible prey. Likewise, organizations focusing only on incremental changes risk missing the broader directions in fulfilling their mandate. A Long-term Plan, Implemented Gradually An ideal approach, in my opinion, is conceiving of an “end state” and then planning for incremental transformation to reach it. Incrementalism is appropriate when there is time to evolve an organization and its processes. Introducing small changes that eventually create a new reality is typically more successful than trying to introduce larger changes faster. In environments lacking an urgent need to change, this seems to be a winning approach. For example, a homeowner may want to renovate, but can’t afford to do all of the construction at once. One approach is to envision a master plan that anticipates and avoids potential conflicts and execute it in phases, while always considering the desired end state. Long-term strategic planning must set a vital goal regarding the organization’s state. That said, implementation is gradual. By “planning,” I mean different but connected things. A company’s leadership must consider the entire organization to lead to the desired future; the leaders consider long-term growth, improving profitability and productivity and increasing ROI. Lower down in the hierarchy, and within the context of the strategic plan, managers must develop tactical/operational plans. These generally include setting clear objectives, selecting activities to perform and not perform, quality, desired outcomes, staff and resources required. All tactical and operations plans must remain aligned with objectives. Lower-level personnel develop specific tactics and tasks – and who will execute them, when, in what sequence and how. Plan? But Unexpected Things Happen! Ignoring unexpected occurrences because they are not in the original transformation plan is negligent. Remember, even the best plans are not foolproof. That’s why Churchill said, “Plans are of little importance, but planning is essential,” and Eisenhower said, “Plans are worthless, but planning is everything.” Eisenhower further commented that “the very definition of 'emergency' is that it is unexpected, therefore it is not going to happen the way you are planning.” These great leaders were stressing the importance of planning incremental steps, monitoring what is occurring, being ready to pivot, but always course-correcting with eyes on the ultimate desired state. Should you plan to introduce change incrementally? I would say that it depends on a few things: 1) First, as a prerequisite, there needs to be a very specific, detailed and desired outcome in mind. 2) While incremental approaches are comfortable and can be advantageous, pressures to change more quickly may not allow organizations to change fast enough. 3) Whether changing incrementally or at a somewhat faster pace, a general idea of a desired future state must be part of any strategic plan. For most clients, I outline a “strategy map” to articulate a desired end state. The strategy map is a cause-and-effect method of considering a company’s assets/capabilities, how a company’s processes leverage the assets, how customers react to the processes (meaning: through their purchases) and which benefits (financial, reputational, etc.) accrue to the company. Let me know if you’d like me to explain a strategy map’s importance and want to understand how it can help your organization focus on appropriate change.

Business leaders are eager to return sales to pre-pandemic levels. However, past conditions and the company’s past organization and operations are an unwise foundation on which to build post-pandemic growth. Assuming that what will be should be a replay of what was is a serious mistake, one I see often. Turning points, even when they’re less discernable, call for action – all the more so when emerging from a prolonged economic crisis, as global businesses are doing now. Companies should develop strategies and growth plans based on the significant, pandemic-era changes in three planning input areas: supply chains, market dynamics and the company’s internal operations and organization. Every company must decide which clients to pursue, which marketing-mix elements to use and how to organize and operate to regrow as their input factors mentioned above, and others have evolved. This is why I make three points when I advise companies to recalibrate now: • The supply chain has changed dramatically. The pandemic disrupted supply chains and curtailed the ability of some upstream producers to manufacture their products – to the point that pre-pandemic dependability at the same price point is not at all assured, at least for now. Some examples, like lumber and computer chips, might be among the countless components in just-in-time (JIT) supply chains affected by disruptions to far-flung supply chains. Planning needs to pay extra attention to supply chains, whereas in the past they could be depended on with very little risk. Assurance of supply has emerged as being of increased importance, while in the past low cost was the overriding factor in business planning. • Markets have shifted. We know that businesses that depend on in-person participation (workers and even customers physically being on-site) have been ravaged, while those with remote access – either pre-pandemic or after adapting to the pandemic – stand a better chance to thrive. As we know, many companies have moved to digital and remote work, and the changes might become permanent even after governments lift all in-person restrictions. • Consider the pandemic a forced opportunity to reevaluate how you’ve done things until now. Internal organizations can be rebuilt to operate differently. As always, a business should be organized around the market it is serving. If the market has changed, the internal organization and operations may need to be reconfigured to serve it. This means taking a step back and considering at least three aspects of business operations that might need to change to differing degrees. (The three affect each other, so each needs to be changed while considering the other two.) o Automation: New automation systems that might not have made sense in the past could confer benefits related to increases in the speed of service, increases in efficiency and consistency, cost reduction, reaching previously inaccessible prospects and the overarching benefit of enabling scaling that would be nearly impossible if performed manually. o Processes: Introducing automation almost certainly requires changing operational processes, some of which will be obviated as a result. Many activities that automation directly addresses will require different (read: fewer manual) processes. Certain exceptions will continue to require human intervention. o Organization/Staffing: With automation and changes to operational process, the individuals executing business processes could require upgrading, even retraining or high-level training. In addition, as a company grows and the most senior business leaders transfer some of their scope of direct responsibility to mid-level managers, those who assumed new responsibilities need to be held responsible for performance. Some of the objective measurements of performance could be generated directly through newly installed automated systems. Unfortunately, many companies lag in making any changes, especially with regard to automation, process and organizational change. They tend to try to do business the way things used to be, not as business is done today – to say nothing about neglecting the need to look forward. Organizational change that lags behind the need for the change tends to drag overall performance. Especially with so many moving parts changing at the same time, a telescope can be more appropriate and useful than a rear-view mirror. Many of my clients are in an active growth mode, even with the pandemic’s severe challenges, because they have reset strategies and operations and made multiple changes simultaneously. I will advise you on how to do the same. In my business-growth seminars, I will demonstrate how growing businesses demand leaders who: • Create an inspiring vision; • Have a growth strategy with detailed operational tactics; • Build an A team of managers; • Build a culture of accountability; • Support hiring the right people; and • Deal with unpredictability and manage chaos. This is the first time many leaders are being required to go through such a major change process. If you find yourself with more questions than answers, contact me to set up a no-obligation meeting to discuss your challenges. Together, we’ll chart your path to a successful future.

You Are Not the Person I Hired, And I Need That Person Very few companies are surviving the coronavirus crisis without making adjustments. In fact, most are making significant changes throughout their companies – changes that include shifting market strategies and adjusting internal operations. In this crisis, of course, many companies have dramatically cut their staffing. It’s a consideration that’s always relevant, especially during challenging times like these. The coronavirus crisis, though, offers an opportunity to rethink how a company should be organized and staffed, given the shifting market environment. Companies compelled to institute layoffs and furloughs to cope with this crisis should not feel bound to precisely recreate their organization for the post-coronavirus environment. Now is an opportunity to challenge the organizational and staffing status quo. Given the talented, experienced people across the business landscape who were laid off and now are available, golden opportunities abound to recruit star performers offering valuable skills and experiences. Even as we ponder the post-pandemic landscape, the fundamentals of smartly recruiting and hiring still hold. I recommend an approach based on You’re Not the Person I Hired!: A CEO’s Survival Guide to Hiring Top Talent. Co-authored by Janet Boydell, Barry Deutsch and Brad Remillard, the book outlines the cardinal rules for filling high-, mid- and low-level positions. I believe that successful hiring is a key factor, if not the key factor, in a company’s successful transformation through the coronavirus crisis and beyond. Why do I call this a key factor? Success often means doing more of the same: selling more, servicing more, producing more. This situation is different. Companies transforming themselves to survive now and thrive in the future almost certainly require employees able to handle new and radically different tasks, including some they never had to do, like touchless interactions. The book helped me, and it will help you, too, because it highlights the challenge of needing to fill a position but being a bit gun-shy because of poor hires previously. The book provides detailed guidance for successful hiring. The co-authors’ critical points are: • Before launching your staffing search, tightly define what successful hires will look like. • Verify that each candidate has demonstrated experience in the types of tasks you need them to excel in. Do not ignore this most basic step in a rush to fill a position. The co-authors identify these frequent mistakes in hiring: · The job descriptions focused on the required experience and skills, rather than on a company’s expectations. · The interviewing was superficial, with candidates’ backgrounds and claims not deeply probed or verified. · The recruitment process over-emphasized such prerequisites as education, technical skills and industry experience. I believe that excellent candidates can learn what they need to know but may not yet know today. · The process relied too heavily on first impressions. · The best actor – not the best candidate – tended to be hired. · The search attracted aggressive candidates without seeking “sleeper” (underestimated) candidates, especially those not job-hunting. Meaning: Sometimes, recruiters fish in too-shallow water. · The interviewers failed to probe the interviewees for core indicators of success: self-motivation, leadership, comparable past performance, job-specific problem solving, core beliefs and adaptability. These qualities need to be explored in depth, but frequently are not. · Searches focused on a company’s needs, but failed to build a compelling case to persuade top candidates to take the job. Candidates often feel that an interview was a one-way street, meeting a hiring company’s requirements but ignoring the interviewee’s needs. That approach may be outdated, especially when interviewing millennials, who bring very different attitudes to the meaning of work. · A company recruited from a position of desperation, failing to devote the appropriate time to conduct a proper search. This resulted in shallow sourcing and superficial interviews that didn’t identify potential pitfalls. Now, consider the co-authors’ suggestions on avoiding those mistakes. A well-conceived approach to recruiting, they write, involves the following: · Defining expectations of the candidate at the 6-, 12- and 18-month marks · Determining how the candidate is central to a company’s plans · Determining which formal and informal networks to tap for recruitment, then developing a compelling appeal to top candidates in those networks · Presenting the candidate with a clear vision of the company, why this is a compelling opportunity for him/her, and why candidates should be energized by the opportunity · Creating a “success matrix” to document the candidates’ unique values, strengths and potential challenges · Holding what the co-authors call “success factor” interviews to uncover a candidate’s potential and determine whether he/she can do the job and adapt to a company’s culture · Performing rigorous reference and background checks after candidates pass other thresholds You may ask: Is this intensive approach worthy of management’s attention? The simple answer is: Most definitely. The co-authors balance their approach’s potential gains against the wasted effort and cost of hiring the wrong person and hoping for him/her to be successful – yet perhaps needing to replace him or her after realizing that taking shortcuts was foolhardy. Consider, too, the cost of a false start occurring during a time that is critical to the company’s success or even survival. Some business leaders think that most staffing problems result from performance issues. While that is sometimes true, more likely the company has not followed a systematic recruitment strategy or wisely invested its time to identify the right person to hire. I always advise my clients to seek new talent, even when they do not have open positions. Generally, the very best candidate isn’t job-hunting when the company recruits for a position. (This may not be as true, however, during the coronavirus reality, given the recent shifts in employment.) Meaning: Consider well whom you might hire, so that you’ll be well-positioned for when you must hire. That approach, as much as securing the best person, will help your company succeed through the pandemic and beyond.

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