"The world is moving on and you have to know if youâre holding onto something that is holding you back.â Ford Motor's Kathy Biermann discussed the various ways that people react to change, and strategies for proactively embracing it. Â
To keep the Ford team on track, Mulally created credit-card-sized cards that listed the behaviors he expected from his team: the behaviors that supported transparency. Mulally showed off his card on Tuesday; Biermann pulled hers out today.Â
âThis is how we stay aligned,â Biermann said. âThese cards outline the behaviors we are expected to exhibit. We review them before every meeting. They align our behavior with the values that Alan laid out, and the executive team is measured on its behaviors.â
And it is this focus on behavior, as opposed to thoughts and beliefs, that is the key to managing change, Biermann said.
âThe ability to manage change has nothing to do with what we feel or believe or fear,â she said. âIt has to do with how we act, and how well that action aligns with our values.â
Types of change
In addition to having multiple definitions, change also comes in different types. Biermann stressed the importance of being able to identify these different types of changeâevolutionary, shock and strategicâand act appropriately.
Evolutionary change is natural and always, slowly, occurring. Shock change, Bierman said, is the one that can be dangerous and disruptive.
âShock change happens when your boss quits or when a start-up company introduces a truly disruptive technology as Tesla has done in the automotive industry.â
Resilience is the key to surviving shock change, Biermann said.
âResilience is less about who we are and more about how we think and choose our reactions,â she said. âResilient people succeed despite their hardships. They seek out new and challenging experiences. They donât let anxiety and doubt overwhelm them. Resilient people exhibit a sense of humor and realistic optimism under stress; they donât feel shame over failures, and they transform helplessness into power not just for themselves, but for those around them.âÂ
Creating change
When it comes to managing people in a changing environment, itâs important to understand how they react and why, Biermann said.
Faced with change, Biermann said people tend to react as follows:
- 15% will cope: Theyâll be anxious but they will survive.
- 40% will adapt: They wonât like it, but theyâll do it and theyâll be okay.
- 30% will exploit: They will look for the opportunity.
- 15% will create: They will seek out and create change and push boundaries.
It is this 15% who create strategic change: âStrategic change happens when a companyâs leadership decides to move the company in a new direction, toward a new vision of the future,â Biermann said.Â
As an example of the 15%, Biermann looked no further than the founder of her company, Henry Ford. Biermann shared a 1925 Ford advertisement that showed not illustrations and benefits of the companyâs cars but a call to âMake the highways open to all mankind.âÂ
When the automobile was invented, Biermann pointed out, most people were not looking for that solution. Most people never travelled more than 25 miles from where they were born, and that was okay.
âHenry Ford said that if he asked Americans what they wanted in transportation they would have answered, âMore horses.â But that wasnât his vision,â Biermann said. âHis vision was of a land of highways open to all mankind.âÂ
To open highways, to create change and not just react to it, Biermann urged her audience to focus on the âpersonal masteryâ thatâs required to balance a future vision with the present reality; the insight to ignite the right level of creative tension; and the empathy and emotional intelligence required to help the people they lead move into the future successfully.
Because the one thing that wonât change, Biermann said, is change itself.
âThis is our world,â she said. âWe all deal with multiple bosses and multiple projects. You canât just say,  'I donât like this new world; this stinks.' If we hold on, we get driven backward. Itâs all about movement. The world is moving on and you have to know if youâre holding onto something that is holding you back.âÂ