Building a Stronger Business: CEO’s Journey Through Change and Resilience
In the fast-paced world of business today, companies are constantly evolving and adapting to stay ahead in the market. The past year has been no exception for our company, as we have undergone significant changes to expand our services and integrate new internal systems. This period of retraining and adaptation has been crucial for our growth and success in an ever-changing landscape.
Advancements in technology, economic uncertainty, and the shift towards digital transformation have all played a role in pushing businesses to pivot and adapt more frequently than ever before. It used to be that major changes to a business occurred once every five or ten years. However, with the global spending on digital transformation expected to reach $3.4 trillion by 2026, the need for businesses to innovate and evolve has become a constant reality.
As the President and CEO of my company, I have had the privilege of working in every area of my field, from the warehouse to driving a truck. This hands-on experience has given me a unique perspective when it comes to change management and resilience. Understanding your company from the bottom up can provide invaluable insights that can help navigate through periods of transition and growth.
Seeking to Understand Workflows Before Transforming
One of the most important lessons I have learned in my career is the importance of involving frontline workers in the decision-making process when implementing major changes. I once worked for a company that hired outside consultants to revamp its operations to comply with new customs regulations. Unfortunately, the frontline employees, who made up a significant portion of the workforce, were not consulted in the process.
The consequences of this oversight were significant. The implementation of the new structure was messy and led to storage fees, operational issues, and a drop in employee morale. The lack of internal consultation cost the company both money and pain in the long run. This experience taught me the importance of involving all stakeholders in the change process, especially those directly impacted by the decisions being made.
According to Beekeeper, only 23% of frontline employees feel included in change-related decisions. This disconnect between leadership and frontline workers can fuel resistance and disengagement within the organization. By understanding the day-to-day responsibilities of frontline workers and how changes will impact them, leaders can gain buy-in and support for the changes being implemented.
I have witnessed firsthand the negative impact of pushing changes down from the top without consulting with the teams affected. This often leads to turnover among staff and clients, creating a downward spiral in culture and morale within the organization. To avoid these pitfalls, it is essential to involve frontline employees in the decision-making process and gather feedback on critical decisions.
Your Frontline Employees Drive Your Bottom Line
When implementing changes in a business, leaders often focus on improving profit margins without considering the impact on frontline workers. However, it is crucial to recognize the contribution that entry-level employees make to the bottom line of the company. High turnover among entry-level staff can cost companies billions of dollars annually, as seen in the case of Amazon.
To successfully implement change, it is important to have representation from every department in the organization involved in the discussions. This includes not only team leads and managers but also frontline employees who are directly impacted by the changes being made. I have found it beneficial to include vocal naysayers in these discussions, as they often provide valuable feedback and can become advocates for change when convinced of its benefits.
By involving frontline employees in the decision-making process, leaders can gain valuable insights into how changes will impact the day-to-day operations of the business. This collaborative approach can help to minimize resistance and create a more inclusive and engaged workforce.
Double Down on Education and Training
One of the most effective ways to prepare teams for change is through education and training. I recall a situation where we promoted a frontline employee to a leadership role, despite initial doubts about her suitability for the position. Through change management education and training, she developed the leadership skills needed to excel in her new role.
Investing in training for employees can lead to reduced turnover and increased productivity within the organization. Research shows that employees who receive proper training are more likely to stay with the company, ultimately impacting the bottom line in a positive way. As a leader, I make it a point to attend training sessions alongside my team to show my commitment to learning and development.
Change is never easy, but by equipping teams with the skills and knowledge to adapt, businesses can build stronger and more resilient organizations. Engaging with team members at all levels and seeking their input and feedback can make a significant difference in the success of change initiatives. The insights and perspectives gained from consulting frontline employees are often what make or break a company in times of transition.
In conclusion, the journey through change and resilience as a CEO is not without its challenges. However, by involving frontline workers in the decision-making process, recognizing their contributions to the bottom line, and investing in education and training, businesses can navigate through periods of change with confidence and resilience. Building a stronger business requires a collaborative approach that values the input and feedback of all team members, from the frontline to the executive level.