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The Power of Internal Motivation to Effect Company Growth

In an episode of the animated TV show Teen Titans, two teen superheroes wonder how they can change the TV channel without the remote, until one of their fellow titans shouts: "Simple. You just get up and change the channel."

Change in business is rarely so easy. And to an entrepreneur whose plans are blocked by employees who won't modify their mindsets, it can seem almost impossible. But changing people's attitudes and values are frequently required for sweeping organizational change, such as switching a company's business model or moving from a 'seat of the pants' enterprise to one run by more formal systems.

Fortunately, many entrepreneurs have been there before, so the process of accomplishing change by changing people's minds is now well-understood. A four-step process based on research by consulting firm McKinsey & Co will help you understand this better.

1) Convince people of the need for change.

Assume you'll face obstacles, and find out what's behind the resistance. Are they averse to risk? Do they feel their jobs will be threatened? Are they just unconvinced there's a need for change? Objective data can soothe fears. When employees see the logic of your actions, they will become willing to try new procedures.

2) Recognize and reward the behavior you want.

On the other side, punish – or at least don't reward – undesirable behavior. There are many ways to do this, from changing bonus structures to instituting new employee awards tailored to your new goals. Don't assume money is the only – or best – motivator. Financial rewards can be seen as buying cooperation, or some form of bribery. Non-financial rewards can be more effective.

3) Provide role models for change.

The way, employees can see someone they admire engaging in the desired behavior. Don't expect your people to follow someone else. The leaders of the change effort should not be external consultants but the senior leaders in the organization themselves. They should be the ones out front, teaching, leading and facilitating.

4) Make sure your people have the necessary skills to implement change.

Learning the new skills required for major organizational change is likely to be different from the ordinary training project. You have to get people to un-learn they old behavior and then learn new behavior.

Reluctant students can block learning, as well, of course. You can increase their willingness by modifying the environment in which they learn, but don't just spruce up the company classroom. Instead, apply the polish to your products, services and overall company image – especially as viewed by your employees. When workers see change in these important elements, they realize that they will have to change, too, and they'll be more agreeable to acquiring new skills.

While you're changing people's mindsets, don't neglect your own. Business change is hardly ever as easy as surfing to a new TV channel, and it's always hard right after you've gone through change. The bad news is, you might be successful. That's when you get into trouble, because the biggest task is maintaining momentum. Change isn't a event; it's a process.


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