Everyone loves change so long as they aren’t the ones that have to change.

Today’s companies are facing greater pressures than at any other time in recent memory with increasingly stiff competition, intense price pressure and changing market dynamics that threaten existing business models. Despite these challenges, corporate executives seem under prepared to address them and propel their organizations forward. One executive recently confided in me that “in our lifetime, half of our customers will be out of business.” Another stated that “we aren’t sure what our value proposition is.” I used to believe that organizations operating in commoditized markets and facing threats to the long-term success of their businesses would place the innovation of customer experiences at the top of their corporate agendas. Similarly, I thought that companies would be racing to undergo dynamic change given the severity of the challenges they face. On all accounts, I couldn’t have been more wrong.

During a recent client engagement, I encountered an organization operating in a commoditized market and facing intense competition, heightened pricing pressures and threats to its core value proposition. Rather than demonstrating any real sense of urgency and cooperation, we faced challenges and obstacles at every turn. Meetings were constantly delayed or canceled, and approvals were subject to a seemingly endless list of decision makers. In one instance, the deployment of a single customer questionnaire was subject to more scrutiny than I have ever seen in my entire career. Overnight, executives became English professors and developed an obsession with ensuring that every word was reviewed and reviewed and reviewed again. The purpose of the survey – to engage customers and identify their challenges – was ignored in favor of grammatical niceties, to the pleasure of English professors worldwide.

Following this client engagement, I can state with complete confidence that I have seen it all – every excuse, delay and obstacle imaginable. One executive “cleverly” stated he didn’t have the time to review the questionnaire – enabling him to question the validity of the results at some later date (since he never had “the time” to review the questions before the survey was deployed).

The aforementioned executive aside, most executives will posit that their seemingly endless list of excuses and delays is only a product of their strong willingness to “get things right.” I will argue that these executives simply don’t want to face the predicament of ever having to change.

Whenever I think that I understand the full magnitude of human resistance to change, I am reminded that I do not by a wide variety of individuals who will do everything possible to limit the success of a change-inducing strategy or initiative. Even though these individuals are well aware of some change management initiative, they are determined to do everything possible to scuttle the initiative’s success even during its execution.

There is little doubt that the most significant obstacle to the implementation of a customer-centric strategy is executive resistance. The idea of change – the disruption of the status quo is simply too frightening for most executives. Better the devil they know than the devil they don’t know. Executives often believe that they know what works and what doesn’t, and are subsequently unwilling to take any real measures to change what needs changing. Individuals responsible for implementing a customer strategy need to be aware that executive resistance needs to be overcome for the strategy to be internalized and adopted throughout their organizations.

The success of any customer strategy is predicated on the organization’s capacity for change. Many strategies have failed because the strategies’ owners did not understand their organizations’ capacity and reluctance to change. It is incumbent on those involved with designing and executing the strategy to understand the capacity for change and reluctance to change across all parts of the organization, so that the strategy’s execution can begin with those individuals more likely to embrace change. Although a strategy’s execution requires the involvement and adoption of all parts of the organization, a phased approach towards the strategy’s execution – starting with those least reluctant to change – offers the best chance of success. By demonstrating positive results in one part of the organization, a strategy owner will be able to build momentum and accelerate the adoption and implementation across the rest of the organization.

Identifying those individuals that are most resistant to change is no less important than identifying those individuals who are likely to embrace change. These individuals should be approached directly and persuaded to adopt and embrace the impending strategy and its associated change. When even the best arguments fail to persuade, senior leadership intervention will be required to eliminate any bastions of resistance. While this process is not fun, it is crucial and should begin immediately for delay can scuttle the implementation of the entire strategy. Above all, it is important that a strategy’s owner never underestimate the power of resistors to sabotage an otherwise great strategy. They often have the ability to either water down a strategy or ensure that it is scrapped altogether.

Any holistic customer strategy will bring hope to some executives and fear to others. Some will embrace the strategy and the change that comes with it, while others will resist the strategy. Overcoming resistance through persuasion or upper management intervention is crucial. Only by confronting and overcoming the resistors to change, will a customer-centric strategy have the best chances for success.
 
Lior Arussy is the President of Strativity Group and the author of several books. His latest book is Passionate & Profitable: Why Customers Strategies Fail and 10 Steps to Do Them Right! (2005). To learn more about customer strategies, sign up for Lior’s newsletter at www.StrativityGroup.com/knowledge.