Avoiding the costly mistake of resisting change

Leaders must recognise that change is not a threat but an opportunity for progress.

Let me start with an oxymoron: Change is the only constant in the dynamic world of business and leadership. Leaders who resist change do so at their peril, often to the detriment of their organisations.

Let’s explore the significant mistake of resisting change and the consequences faced by leaders who fail to adapt to evolving circumstances. How may small and medium enterprise (SME) leaders overcome this mistake they all commit at some point of their career?

Change is essential for the growth and adaptability of an SME. Whether it's technological advancements, shifts in market dynamics or evolving customer preferences, change is an inevitable part of the business. Leaders who resist change impede progress and risk the sustainability of their organisations. Resistance to change is a natural human response. People tend to prefer the status quo as it provides a sense of stability and comfort.

Kingfisher Airlines is a good example of how the leader’s resistance to change resulted in its demise. The airline's failure to adapt to changing market conditions, high operational costs and the acquisition of Air Deccan just to expand to international routes without a viable business model led to its downfall. Promoter Vijay Mallya's reluctance to restructure and adapt to the changing aviation landscape ultimately resulted in Kingfisher Airlines' financial troubles and eventual shutdown.

Nokia, once a global leader in mobile phone manufacturing, struggled to adapt to the rise of smartphones. Its resistance to the new paradigm and the dominance of iOS and Android operating systems led to a significant decline in market share. Nokia's leadership was reluctant to change its operating system and adapt to the app-based smartphone era, resulting in a dramatic fall from grace.

Infosys, under the leadership of Vishal Sikka, faced significant resistance when transitioning from a traditional IT services company to a digital-focused organisation. The move to embrace automation and AI was met with internal scepticism and employee resistance. To overcome this, Sikka engaged in open communication, providing a clear vision for the company's future. Infosys successfully navigated this change, becoming a prominent player in the digital transformation space.

The consequences of resisting change can be severe and some of the implications are as below:

>> Loss of relevance: Companies that resist change risk becoming obsolete in their industries.

>> Decline in market share: Failing to adapt can result in a loss of market share and customer base.

>> Financial losses: Resistance to change can lead to declining revenues, increased costs and potential bankruptcy.

>>  Employee disengagement: When employees see leadership resisting change, they may become disengaged and frustrated, negatively impacting productivity and morale.

>>  Missed opportunities: Companies that resist change often miss opportunities for growth, innovation, and efficiency.

>>  Reputational damage: Leadership that is perceived as being resistant to change will harm the organisation's reputation.

Indeed, resisting change is a significant mistake that leaders globally have made, leading to dire consequences as above. Leaders must recognise that change is not a threat but an opportunity for progress and must be prepared to adapt and evolve to meet the challenges of the ever-changing market.

Here are some best practices SME leaders can adopt to get everyone over their resistance to change:

Effective communication: Open, clear and continuous communication is paramount. SME leaders should communicate the reasons for change, its benefits, and how it aligns with the organisation's mission and vision. This helps employees understand and buy into the change process.

Involve employees: Empower employees by involving them in the change process. Seek their input, listen to their concerns and encourage them to be active participants in the change initiative. By making them part of the solution, you can reduce resistance.

Set clear goals: Define clear and measurable goals for the change initiative. This allows employees to see progress and understand the purpose behind the changes. When people understand what they are working towards, they are more likely to embrace change.

Lead by example: SME leaders should be role models for change. They should actively participate in the change process, demonstrating their commitment to its success. When employees see leaders embracing change, they are more likely to follow suit.

Provide training and support: Invest in training and resources that enable managers to adapt to the change effectively. This will include skill development, workshops, and access to relevant tools and knowledge.

Manage resistance proactively: Identify and address resistance as soon as it arises. Create a framework for addressing concerns and challenges, and offer support to those who are struggling with the change.

Celebrating successes: Acknowledge and celebrate small wins along the way. This boosts morale and reinforces the positive aspects of the change process.

By implementing the above best practices, SME leaders can create a culture that embraces change. Embracing change is the key to innovation, growth, and long-term success.