Accounting businesses need to respond to changing conditions in order to stay competitive.
Embracing technology, increased delegation, digital marketing, improving Client communication and managing remote workers are just a few instances which require managers of modern firms to adapt.
This can be challenging. Working with a firm in South Carolina, we applied the Beckhard-Harris formula to help them manage and embrace change. Let's take a closer look.
What are the origins of the formula?
The formula was originally developed in the 1960s by David Gleicher, but was popularised by Richard Beckhard and Reuben T. Harris in 1987 in their book entitled "Organisational Transitions: Managing Complex Change"
What's the basis of the formula?
The formula posits that a change initiative will be successful if certain conditions are
present, summarised as:
D x V x F > R
What do we mean by Dissatisfaction?
- High levels of dissatisfaction can lead to successful change.
- Being 'inconvenient or 'sub-optimal' may mean there's not enough 'pain' and stakeholders will tolerate the status quo.
- Sometimes, stakeholders don't know that change is necessary or possible so time is required for education and to secure acceptance of change.
What do we mean by Vision?
- Successful change requires stakeholders to share a clear vision of a future which is both better and achievable.
- Often they need reassurance as to how they will contribute to the change AND their future role once change has occurred.
What do we mean by First Steps?
- There should be an action plan to achieve the vision, especially setting out the first
steps.
- The first steps should be both understood and accepted by stakeholders.
- Think baby steps, not huge leaps, since this can cause anxiety and discourage stakeholders.
What do we mean by Resistance?
Is it natural for people to resist change.
Generally, stakeholders avoid risk and stay in a 'comfort zone' rather than seeking improvements/
Effective change requires dissatisfaction, vision and First Steps to EXCEED Resistance to change.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
