Mastering Complex Change Model

 

Imagine leading your team through big changes, only to see it fail because there was no clear plan. This happens to many leaders. In this post, we’ll look at the key steps to manage complex change successfully.

Recently, I learned about the Mastering Complex Change Model. Dr. Mary Lippitt created it in 1987 to help organizations handle difficult changes. This model is simple and helps all levels of management. The best part is that it focuses on making sure the changes last over time.

Let’s understand What is Complex Change and Why It Matters

A complex change happens when many departments of an organization need to change simultaneously, which often results in unexpected results.

One example that happens many times in an organization is implementing new software that impacts all departments and their daily operations.

Another example is when looking at a big scenario like merging two large companies. It has several key characteristics that involve many interconnected parts, hard-to-predict outcomes, and requires a lot of flexibility because things can change constantly. A merger involves mixing different cultures, systems, and processes.

For a startup that is growing, it is no different! It’s challenging because many things will change and interact in unexpected ways.

For example, expanding your team rapidly involves integration with new employees into culture and processes. Another example is launching a new product that impacts your marketing, sales, and customer support all at the same time.

There are many different types of changes that might happen. Let’s think about simple, complicated, and complex samples.

1. A simple change is straightforward, easy to understand, and implement such as changing office supplies from one vendor to another.
2. A complicated change requires expertise and detailed planning, but it has clear steps to the outcome. An example could be building a new bridge, which involves detailed engineering but follows established procedures and principles.
3. A complex change, involves many interdependent elements with unpredictable interactions with an uncertain outcome and ongoing adaptation. Transforming an organization’s culture is a good example. It requires changing attitudes, behaviors, and practices across the entire organization.
   
   
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The Real-World Key Features of Complex Change: What You Need to Know

When a startup is acquired or created by a larger organization, it’s crucial to consider several factors, especially if the startup has not yet achieved Product Market Fit (PMF).

There was a case where a startup was joined inside a big company without securing PMF. It creates a sense of security, structured, cultural, and consolidated base.

The startup believed they had achieved PMF due to the new network from a larger partner, but they hadn’t.

The original idea was far away from what the customers needed (The Job To Be Done! This is another article).

The startup was so blind that misunderstanding led to failure because the startup didn’t continue its rigorous journey toward PMF.

A very important lesson to learn from this even with new resources, is to always continue the progress to achieve PMF before assuming success.

Prevents false security and focusing on one thing only ensures the company remains focused on the customer is the outcome for this.

Every startup has its real-world examples because it is part of its nature.

Slack started as an internal tool for a gaming company called Tiny Speck, which created the game Glitch. When Glitch failed to gain traction, the company pivoted to focus on their communication tool. This pivot involved strategies such as:

1) User-Centric Development:

• Focused on user feedback to continuously improve the product.

2) Freemium Model:

• Offered free basic service with premium features for paid users, encouraging widespread adoption.

3) Integration:

• Integrated with other popular tools to enhance functionality and user experience.

These strategies led to rapid growth, reaching 500,000 daily users within a year. In 2021, Slack was acquired by Salesforce for $27.7 billion, highlighting its significant impact.

Airbnb was founded in 2008 by Brian Chesky, Joe Gebbia, and Nathan Blecharczyk. Initially, the concept of home-sharing faced skepticism and trust issues. They addressed these challenges through:

1) Robust Review System:

• Implemented a system where guests and hosts could rate each other, building trust and accountability.

2) Community Engagement:

• Engaged with local communities and provided personalized support, fostering a sense of security and reliability.

3) High-Quality Listings:

• Ensured listings had detailed descriptions and high-quality photos to attract users.

These strategies helped Airbnb expand globally, reaching millions of listings in over 220 countries. By 2020, Airbnb was valued at over $100 billion after its IPO, becoming a leader in the sharing economy.

Here are some insights and common pitfalls we can learn from this.

• Make sure your service is easy to use and meets the needs of your users.
• Listen to feedback and keep improving always.
• Offer something special that big and consolidated companies don’t.

For Airbnb, this was unique homes and experiences. Another good strategy was to Team up with other companies to help grow your business. This can help you reach more people and test your product as soon as possible.

Since you are in that stage, adaptability is crucial.

Be ready to change your plans if needed. If something isn’t working, try a new approach. You need to do that without feeling eager or thinking you are good enough and you are right and everybody else is wrong. Be Humble because Not listening to users can hurt your business. Always pay attention to what they say and make changes to improve.

Another important insight is If people don’t trust your service, they won’t use it.

• Make sure to build a system that is safe and reliable.
• Always make sure it is simple and stupid. If your service is hard to use, people will go elsewhere. Make everything simple and easy for users.

That was the Slack and Airbnb strategy from the beginning. Very few functionalities but simple to use!

Depending on what and where you are, you will also need to pay attention to Not following local laws can get you in trouble. Always know the rules and make sure you follow them.

The final insight is The market can change quickly. Be ready to adjust your strategy and operations when needed.

That is when Managing Complex Change can help!

Now is the time to go over the model created by Dr. Mary Lippitt in 1987 and add another variation by Lippitt-Knoster.

Let’s break this model into sections to explore in detail how to successfully implement that into our daily basis.

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Let’s start with the Vision. What is your Vision?

You need to have a clear and concise vision for the change. Here are a few questions that you might want to understand.

• What is the desired outcome of this change? This question helps to define the end goal and what success looks like.
• Why is this change necessary? Understanding the reasons behind the change helps to clarify its importance and urgency.
• How does this change align with our organization’s mission and values? This ensures that the change supports the broader goals and principles of the organization.
• How will we measure the success of this change? Defining metrics or indicators of success ensures that progress can be tracked.
• Who will be responsible for leading this change? Assigning leadership ensures accountability and clear direction.
  
  

Without a clear vision, confusion can arise because team members won’t understand the purpose or direction of the change. They may be unsure about their roles, the goals they are working towards, or the reasons behind the change. Clear communication of the vision helps ensure that everyone is on the same page and working together towards a common goal.

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Are you ready to achieve consensus? In other words, buy in!

This is the moment to sell the change to the team! You will need to ensure that everyone is working towards the same objective. It will be the time to increase buy-in and support from all team members and stakeholders. We should reduce confusion and misunderstandings about the new change promoting teamwork and cooperation.

These are a few questions you should know the answers to.

• What are the primary goals of this change? This question helps ensure that everyone is aligned on what the change aims to achieve.
• How does this change support our overall mission and vision? Ensures that the change aligns with the broader organizational strategy and values.
• Who will be impacted by this change, and how? Identifies all stakeholders (clients) and how the change will affect them.
• How will success be measured? Defines clear metrics and benchmarks for tracking progress.
• What resources and support are necessary for this change? Ensures that all required resources are identified and available.
• What is the timeline and key milestones for this change? Clarifies the schedule and critical deadlines.

What are the roles and responsibilities of each team member in this change? Clarifies individual contributions and ensures everyone knows their part.

A lack of consensus can lead to sabotage because individuals or groups may feel disconnected, unheard, or opposed to the change initiative. Always remember that we are working with people and they need to be part of the change!

By achieving consensus, you create a united front where everyone works together towards the common goal, significantly reducing the risk of sabotage and ensuring a smoother, more successful change process.

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What skills are needed?

I think this is a very straightforward item because you need to ensure that the team has the knowledge and abilities needed to carry out the change successfully. Proper skills help the team to adapt to new processes and tools. If you do not have the skills, you will need to bring someone who does to teach the team how to absorb the skills. I have done that many, many, times and the team loves to learn new things! Simple like that!

Those questions will help you to know if you have those skills in-house:

• What specific skills are required to achieve our change goals? Identify the technical and soft skills needed to implement the change successfully.
• Do our team members have these skills, or do we need additional training? Assess the current skill levels of your team and determine if there are gaps that need to be filled through training or hiring.
• What training programs or resources are available to develop these skills? Explore available training programs, workshops, or online courses that can help develop the necessary skills.
• Who will be responsible for providing or facilitating this training? Assign responsibility for organizing and delivering the training to ensure it is effectively implemented.
• Are there external experts or consultants we can bring in to help with skill development? Consider hiring external experts or consultants who can provide specialized knowledge and training.
• What role-specific skills are necessary for different team members involved in the change? Identify the specific skills needed for different roles within the team, ensuring everyone knows what is expected of them.
• How can we leverage existing skills within the team to support the change? Recognize and utilize the strengths and expertise already present within the team to facilitate the change process.
  
  

Without the right skills, team members may struggle to perform their tasks, leading to mistakes and delays. This can cause anxiety because people might feel unsure about their abilities and worried about failing.

We need to be very careful and transparent here because the lack of skills can also lead to frustration and low morale among the team, as they may feel overwhelmed and unsupported.

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Do you understand what incentives your team needs?

Charlie Munger (Warren Buffet’s business partner) famously said: “Show me the incentive and I will show you the outcomes!” Incentives are important because they motivate and encourage the team to work towards the change.

When people know they will be rewarded for their hard work, they are more likely to stay focused, committed, and put in extra effort.

I would also add here recognition for good work. Recognition helps to align everyone’s efforts with the goals of the change, making sure everyone is working in the same direction and helping and motivating each other.

A few questions to help understand what motivates your team:

• What motivates our team members? Identify what drives and excites your team, such as recognition, financial rewards, career growth, or a sense of achievement.
• How can we align incentives with the goals of the change? Ensure that the rewards and incentives directly support and encourage the behaviors and outcomes needed for the change.
• Are the incentives fair and achievable for all team members? Make sure that the incentives are realistic and accessible to everyone involved in the change process, promoting fairness.
• How will we communicate the incentives to the team? Clearly explain the incentives, how to earn them, and their connection to the change goals to ensure everyone understands and is motivated.
• How can we ensure that incentives lead to long-term commitment rather than short-term gains? Design incentives that promote sustained effort and continuous improvement, not just quick, temporary results.
  
  

Without incentives, team members may resist performing their tasks because they might not see the benefits of putting in extra effort. Team members might feel unappreciated and undervalued, which can lead to resistance!

It is incredible how you can unleash the team’s motivation when you understand what motivates them and give them the appropriate recognition! I have tried that in-house, and the result’s change drastically reduces the turnover rate and attracts more people to join the change!

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What resources do you need?

Without the right resources, like money, tools, time, and skilled people, it becomes very difficult to complete tasks and reach goals.

You need to think about having enough resources to ensure that the team can work effectively, handle any challenges that come up, and stay on track with the plan. It will help to reduce stress and frustration.

You need to have the answers to understand if you have the correct resources:

• What specific resources are needed to implement this change? Identify all types of resources required, such as technology, equipment, materials, and personnel.
• Do we have the necessary budget to support this change? Determine if there is enough financial support to cover all aspects of the change process.
• What skills and expertise are required, and do we have them in-house? Assess whether your current team has the necessary skills or if additional training or hiring is needed.
• What technology or tools will we need? Identify any new software, hardware, or tools that will be necessary to support the change.
• Are there any external resources or partners we need to engage? Consider if you need to bring in external consultants, partners, or vendors to assist with the change.
• What backup resources do we have in case of unexpected issues? Identify contingency resources to address any unforeseen problems that may arise.
  
  

Without the right resources, frustration will happen quickly! It’s like trying to change the wheels of a moving car — you need to deliver results while learning and adapting on the fly.

A limited budget can add to this stress, as you may not have the tools or support needed to do the job properly. Over time, this frustration can lower morale, reduce productivity, and create a negative atmosphere, making it even harder to achieve successful change.

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What is the action plan and timeline?

Now is the time to act! But, in an organized way! An action plan is important because it gives clear steps to follow for the change. It helps everyone know what to do when to do it, and who is responsible.

With a good action plan, the team can stay organized and on track, avoiding confusion and delays. It also makes it easier to check progress and make sure the change is happening as planned.

Let’s check a few questions to help us understand if we have an action plan:

• What are the specific steps required to implement this change? Identify and outline each step needed to carry out the change from start to finish.
• What is the timeline for each step? Determine the timeframe for completing each step, including start and end dates.
• What resources are needed for each step? Identify the resources required for each step and ensure they are available when needed.
• What are the key milestones and checkpoints? Define important milestones and checkpoints to track progress and ensure the project stays on schedule.
• What are the potential risks and how will we mitigate them? Identify possible risks or obstacles and plan strategies to address and overcome them.
• What feedback mechanisms will we use to adjust the plan as needed? Set up ways to gather feedback and make adjustments to the action plan based on real-time information and experiences.
  
  

Without an action plan, a sensation of false start can happen because the team might begin working without knowing the clear steps or goals.

I do not know if that happens with you but this can lead to wasted effort as people might do the wrong tasks or repeat work. It feels like starting over again and again and the end is not good for the team. This makes it hard to see real progress and achieve successful change.

Ready to master complex change?

When you implement a new solution in your organization, using the complex change model can help fill in all the gaps. For startups, this is especially helpful because many changes are needed before achieving Product Market Fit (PMF). Simply answer a few questions about each part of the framework to better understand your company.

As you start managing complex change, apply these principles and strategies. Remember, you rely on your team to get the work done. Take care of them by recognizing and incentivizing their efforts. As a manager, your job is to help them develop and ensure they go home loving their job and working with you. When you achieve this, you’ll make your customers happy and get the results your company needs to keep moving forward!

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If you want to learn more about managing complex change and growth, read “The Lean Startup” by Eric Ries for practical strategies. Also, check out Bangaly Kaba’s interview on Lenny’s Podcast for valuable insights on growth frameworks and change management.