BREAKING THE SYSTEM | PART 2 OF 4
Understanding why change fails is only the beginning. What can executives actually do about it?
In the second instalment of Breaking the System, Gareth moves from examining the influence of entrenched organisational structures to exploring practical ways of challenging them.
From understanding informal power structures to realigning incentives and simplifying processes, this article outlines five steps executives can take to regain control of organisational change and turn strategic intentions into operational results.
I recently wrote about the dangers of The System and the influence that middle management holds within large organisations. It is a difficult phenomenon for executives to understand. The very people hired to execute the strategy, vision and objectives of the leadership team are often the same people who, knowingly or otherwise, subvert those objectives in service of The System. To quote Morpheus from the Matrix: “The Matrix is a system, Neo. That system is our enemy. But when you’re inside, you look around, what do you see? Businessmen, teachers, lawyers, carpenters. The very minds of the people we are trying to save… many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it.”
When a simple change exposes the system
Don’t believe what Morpheus was trying to articulate? Let’s play a little mind game. Imagine you are the CEO of ABC Enterprises. You log onto the company website, one you are extremely proud of, and notice a mistake. You call the person responsible and ask them to fix it.
Here is what typically happens:
- Small company: The person logs in and fixes the mistake before the end of the day.
- Medium-sized company: They call someone else, and the change is made within two or three days.
- Large company: The request goes to the Head of IT, a business analyst and a developer. Several approvals are required, and the change takes two or three weeks.
- Very large company: More than 40 people become involved. There are 20 sign-offs, followed by extensive testing. The change takes two or three months.
It is the same mistake and the same requested change, yet the outcomes are dramatically different. Ask why, and the answer will usually involve protection and compliance. The real question is what the organisation is protecting. Is it protecting the company and the value it creates, or The System itself? We have identified the problem. Now what? There are several practical steps executives can take to regain control and drive operational change.
Step 1: Do not trust the organisational chart
This is often the hardest step because it requires executives to get their hands dirty. The official hierarchy rarely reflects where power really sits. Job titles may show who reports to whom, but they do not necessarily reveal who influences decisions, blocks action or shapes the behaviour of a team. Speak directly to The System. Have conversations in the canteen, at the coffee station and during company functions. Listen to what people talk about when they are not presenting to an executive committee. Anonymous pulse surveys, network analysis and shadow process mapping can also help identify the real influencers and blockers inside the organisation. You can only begin to influence the informal power structure once you understand it.
Step 2: Communicate in their language
Stop broadcasting lofty visions from the top. Middle managers hear those messages every quarter. Communication needs to be more personal and direct. Get to the heart of the matter and answer the question people are already asking: “What’s in it for me?” When people understand how a change affects them and what they stand to gain, rather than only hearing what it will do for the organisation, resistance begins to fall.
Step 3: Build change from within the middle
Drawing on Kotter’s change model, identify the positive deviants within the middle layer. These are the people who already think differently, challenge accepted practices, and still manage to deliver results. Give them genuine authority and visibility. Let them lead the disruption of The System from within. Their credibility with their peers will carry far more weight than another executive instruction issued from above.
Step 4: Change what the system rewards
This is not only about money. It is about understanding what genuinely motivates people. A wise mentor once told me to work out what people need from you, give it to them, and they will deliver. Executives need to examine what is measured and rewarded. If middle managers are incentivised to increase headcount and preserve stability, The System will defend headcount and stability. If you want different behaviour, change the measures. Align rewards with the actions and outcomes the organisation actually needs.
Step 5: Make the right process the easiest one
As someone who enjoys breaking activities down into processes, my advice will always return to process. Trust that people will sometimes make the wrong choice. Then design processes and systems that make the right choice easier. Standardise where it makes sense, then automate aggressively. Introduce simple, visible dashboards that show actual performance. Put those dashboards where people can see them and connect the results directly to team incentives. Most importantly, understand the processes yourself. Do not become a helicopter executive who only appears when something goes wrong. If you do not understand how work moves through the organisation, you will never fully understand how The System controls it.
The system is still your responsibility
There is no silver bullet. Operational change is hard work, and the executive team remains responsible for the behaviour of The System. When leaders neglect these steps, The System grows further away from them. It continues to protect and reward the people who understand how to control it. The good news? Once you start decoding and deliberately reprogramming the system, real change becomes not only possible, it becomes inevitable.
Explore the Breaking the System series
Previously: Part 1 – The guardians of the system
Up next: Part 3 – Decoupling the middle layer by building bonds that outweigh the system
Having explored practical ways to challenge entrenched systems, Gareth turns his attention to the relationships and psychological connections that determine whether organisational change succeeds.
