Change is difficult. The default mode of most organizations is to resist change. There are many anecdotes in business that demonstrate this. I remember when Blockbuster Video’s own board resisted change out of concern for short-term profits, which doomed it. Businesses that can redirect energy to fast and positive transformation can exploit many more opportunities than enterprises mired in resistance miss. The challenge for leaders is creating an organization that is not only prepared for change, but willing to implement it.
Change consumes energy, and energy is limited. That means in order to make changes to keep up with a rapidly changing market, energy must be conserved and stock piled so it is available. Expending scarce energy resisting intelligent change is a huge waste. Making investments and taking your business down a path that cannot quickly be undone if the market moves a different direction is also a big waste.
We have been focused so far on conserving and investing energy to facilitate intelligent change, but there are additional things that go along with energy that we must intelligently ration as well such as: time, budgets, credit limits, trust, skills, goodwill, leadership, mental and emotional capacity etc. Too much change can drain goodwill, and expend too much mental and emotional energy to continue. The responsibility of a good leaders is to always be watching and measuring how much energy is available to make changes.
In the days of old when battles were primarily fought by foot soldiers and horseman, military leaders were very tuned into the energy levels of both. You can’t march your soldiers on short rations to the point of exhaustion and expect they will arrive at a battle ready to fight. Intelligently managing energy levels are critically important to winning.
Today, when every company is engaged in change in the form of digital transformation, enterprises need a method by which they can measure and monitor the amount of energy available. Knowing how much energy is available requires a formula for calculating the number of energy units (EUs) currently in reserve, how many are being created over a specific period of time, less the number of energy units each project and tasks consumes in a particular time frame. To that end, all aspects of a business should be assigned EU values so a total energy score (TES) can be derived.
All business activities consume and/or generates EUs. As a result, the second step is to identify how many EUs each task consumes. If digital transformation can be implemented with minimal resistance from the board, executive team, employees and customers, then those EUs can be dedicated to making the changes required. However, if there is major resistance to change from any combination of these constituents, then there is less energy available for making the changes required.
Once the number of available EUs is known, enterprises can monitor their total energy scores to ensure they maintain a sustainable level to implement current and future changes.
Higher total energy scores that are self-sustaining, support a higher level of business agility, while lower scores limit a company’s ability to make changes fast enough to compete.
It would be fair to ask why we are not just tracking ROIs. My answer is change consumes many things that are not reflected in P&L statements, such as emotional energy, time, goodwill, skills and other available resources. A company with a lot of money in the bank and the right skills to accomplish the tasks, but is emotionally drained and lacks goodwill as a result of overwork and too much change, does not have the required EUs available for business agility.
In a world in permanent flux, enterprises with higher total energy scores have a competitive advantage in the form of business agility and energy to use for digital transformation efforts. As real-time data is analyzed, and changes in trends detected, businesses with higher total energy scores are in a far better position to exploit emerging trends.
SVP Solutions Strategy at Regalix
Website Regalix Inc.
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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I work with and have worked with many of the companies mentioned in my articles.