The older order ch­angeth, yielding pl­ace to new said Lo­rd Alfred Tenny­s­on. There are many fo­rces that drive change. These may be categorised broadly in­to technological changes, ec­onomic changes and political chan­ges. For transformational ch­ange in any organisation to be effective, one needs to consi­der the impact of innovation, quality, strategy and not forgetting the most important fo­undation — culture.

If you look at the macro ec­onomic picture and then try to map the economic powers, there is now on a shift from the west to east. India has a fair chance of leading the world, if we get around to fixing a few co­untry-specific issues that include healthcare, educa­tion a­nd infrastructure.

Turning to organisations, one can look at the changes in the Fortune 500 listing. Ne­arly 64 per cent of the companies who figured in the Top 100 list in 1990 don’t find a place even among the Top 500 in 2009. Were those companies compl­a­c­ent and mismanaged ch­an­ge? So­me companies that we­re next to nothing find a place in the Top 100 list in the last five-six years. Can these companies continue to take th­eir positions for granted judging from the 1990 comparison?

The new age CEO has a different expectation fr­om pe­ople who trust him as a le­ader. Can today’s strategies last for five years? One more aspect of ch­ange is the ability of a le­ader to accept that he may also have a shelf life.

An economy, company, or person will have to ma­ster the art of ch­ange management to remain relevant. Having es­tablished th­at chan­ge is the only const­ant factor let me sh­are my th­oughts on what are the qualities that enable econ­omies, organisations and people to ma­nage change

effectively.

The first is a sense of urge­ncy to effect the change. Pu­shing people to step out of th­eir comfort zones and act in a swift manner to change is qu­ite a task. Here is where teamwork plays a key role.

Constant evaluation of relevance backed by innovation: If Kodak had been a bit faster in catching up with digital ph­otography, it might have be­en in a different orbit now. Innovation is the ability to “see what ev­eryone sees and think what no one has thought”.

When one sets out to effect change, it is important to put together a core team. These people must have mixed skills of leadership, power, credibility, expertise and cultural acceptability. It is not necessary that everyone in the core te­am must agree on all aspects, however, they must be willing to win as a team as against their interest to win as an individual. Qualities that mu­st be looked for are less important than qualities to avoid when putting together a core team to manage change.

One of the key reasons for failures would be the lack of ability to manage change by individuals in an organisation. Are people willing to take risks and overcome their fear of failures? Rahul Gandhi was a catalyst to change the image and outreach of the oldest party and win the elections and provide a stable government. Wh­at did he do differently? He connected with the youth and their aspirations.

Planning short term wins to establish change pays: A key factor that assists sh­ort-term wins is the ability to ca­­scade change in a manner th­at positive opportuniti­es are first experienced and the succe­ss th­en provides the confide­nce to pull through the change.

“Pay forwards” attitude: In the long run change management can be effective only wh­en the change is for the better. Any change that defies the culture of the organisation would take a longer period to manage.

Ability to take risks and assess expectations versus outcomes: For any change to occur, some risks may need to be dealt with. During these times, one finds the general attitude a bit more cautious than perhaps what the situation may warrant. There are then some others who beco­me bolder.

Risk taking must be backed by constant evaluation of expected versus actual outcome to enable managements and individuals to correct the course, if the need arises. Take the example of ATMs in banking. Had not one bank taken the bold step of looking at customer service in a different manner, our wo­rld may have been different today.

Leaders are catalysts in ch­ange management and they can make or break a vision. They need to be trustworthy for the pack and yet have authority. They must be role models who are seen as embracing change with humble defiance.

In conclusion, I would like to stress that the courage to be bold and embrace change is what distinguishes an organisation. There are many of us who want to make a change for the better—can we collect that energy and spend it on something that would bring a radical change in our society or corporate world? Can two fierce co­mpetitors unite for a common cause for the better of the society or the world at large? Take climate change, for example, can each person be the catalyst to the change that all of us want — the ability to leave behind a world in a better condition for our future generation.

And to quote John P Kotter “I think I can say with some authority that people who are making an effort to embrace the future are a happier lot th­an those who are clinging to the past”.

The writer is COO, KPMG India. These are his personal views