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Making change a major test for companies struggling to survive

Experts say most employees have difficulty adapting, which limits growth potential of businesses
By Martin C. Daks
7/13/2009
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Christopher Polek, chief executive of Polek & Polek, says by talking with customers, he was able to learn how to provide more efficient service. [Christina Mazza]
The economic downturn has harmed companies and eliminated jobs, yet many workers still resist making changes that could save their jobs, according to the Parsippany office of an employment services company.

Only one in four employees has the agility to adapt to change, said Lynn Brown, Right Management’s market vice president for New Jersey. “As a result, change management strategies tend to fail, undermining the organization’s ability to achieve the goals the change initiative was designed to produce.”

The employment services company, which is part of Manpower Inc., surveyed human resource managers across the nation to determine how well employees are responding to change management programs.

Only 26 percent said their work force “is very agile and responds to new challenges,” while 31 percent said change-related employee engagement and productivity “are a major risk.” Another 43 percent said the work force “gets the job done, but morale suffers.”

Christopher Polek knows about change management and what it can mean for a company’s survival.

“By late 2008, when the general economy started to fall apart, our company had already taken a significant hit,” said Polek, chief executive officer of Polek & Polek, a Fairfield-based office supply distribution and services company.

His company started out in 1974 selling manufacturers’ original replacement parts for copiers and other office equipment, but had to shift its focus when many manufacturers started to ship parts and supplies directly to their customers, cutting out middlemen like Polek.

“We had to look for new business areas, and we had to be more efficient,” Polek said. “We talked to customers about their concerns, and realized they wanted more technical support, and also wanted more choice in replacement parts and supplies for their office equipment.”

So Polek’s company retrained its employees, and also began offering replacement parts made by third-party manufacturers.

“Throughout the process, we communicated with employees,” Polek said. “We kept them involved by telling them what was happening, and what the impact and benefits of the changes would be.”

“Managers need to commit to change and to lead the efforts, but that can be a challenge,” said Nadia Haridi, a Parsippany-based principal in charge of Right Management’s Align and Engage Practice–Northeast. “Resistance to change is a human factor, and it’s always an important issue. Companies need to plan for change and follow through on their strategy.”

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