• Discover why even the most rational change plans can fail to win the support of your team
• Learn how to decode an individual or team's resistance to change by focusing on their individual context
• How to identify when performance problems are really people problems
Recently on the podcast, I was asked the following question.
"What's a common business problem that's easier to understand (and solve) when you really understand the people side of business?"
It's a good question (thanks Paige). The short answer is 'change management'.
The longer answer gets to the heart of something I believe deeply and which really stands as the foundational principle upon which I've built my podcast, and more broadly, my own business.
That principal is this; business is about people. When people work together to serve people, sure, money is often exchanged. But the value of that product or service is determined by the benefit derived.
The profit that falls out the bottom? That's also determined by the actions and behaviour of people.
The Real Math of Business™ is 50% people and 50% math. You can't optimise one side and ignore the other. When you understand how they interact, you start to realise that some of the most frustrating business problems aren't really strategy or money problems. They're people problems.
I often talk about the business pendulum. On one side, we have the people. On the other, the math. Most organisations swing between the two, doubling down on people when turnover increases or engagement scores drop, then pivoting to the numbers when targets aren't hit.
But real commercial strength comes from knowing how these two sides interact. The businesses that build Universally Investible Ecosystems™ - where shareholders, employees, and even customers all invest time, money and effort into the business' success - are the ones that understand that when people serve people, the math just works.
In this post, I want to share how I responded to Paige's question, and how my answer, "change management", plays out at both the macro and micro level.
Why individuals resist change
Most companies are in some state of change. Some are deep in a major transformation. Others are tweaking systems or updating processes. On paper, these changes often make perfect sense. They improve efficiency. They're well communicated.
And yet... some individuals just won't get on the bus. Leaders find themselves repeating themselves over and over, baffled by the resistance.
I hear this fairly regularly from the CEOs, CFOs and executive teams I work with: "We've explained the benefits. Everyone knows this is the right move. Why won't they just do it?"
Here's why; change happens one person at a time.
A plan that makes sense at an organisational level, doesn't account for the context of each person impacted at the individual level. It doesn't factor in their mindset, experiences, fears, and bandwidth.
When experiencing resistance to change at the individual level, I suggest to my clients that they start getting curious about their people. What's going on for them? How are they experiencing this change? What does it mean for their role, identity, or stability?
Sometimes, when you really understand that individual perspective, you realise that someone simply isn't going to come with you. Or they need a bit of individualised help to get there. Thankfully, those micro problems, at that individual level, are fairly easily solvable.
The real challenge comes when you experience resistance at the macro level.
When your high-performing team stops performing
At the macro level, change often reveals a lot about your overall business culture and team make-up.
Gearing up for the next big change or the next phase of growth, can cause your whole business to wobble. That's understandable. You've climbed the first mountain. Now you're eyeing the second. But the second mountain is different. It demands more maturity, more discipline, and often, a very different kind of leadership.
That's when leaders will often encounter a moment of truth and start to ask themselves "Are the people who got us here the same people who can get us there?"
This has nothing to do with the individuals or their loyalty to the business. Businesses evolve, and so do the capabilities required to lead them. Someone who thrived in the build-and-grow phase might not be the right person to navigate the next stage. Equally, the leadership style that worked when the team was small and scrappy might not work when scale and sophistication are needed.
When this happens, there are two critical questions to ask:
• Do I still have the right people for this stage of the journey?
• Do I have the right leadership in place to guide them?
You might not like your answer, but it will give you clarity. And just like with the micro-level example, the goal isn't to keep everyone on the bus. It's to make sure that the people on board are the right people to steer it.
The throughline: People problems are the real business problems
In my experience, many of the most persistent business problems, particularly when attempting to steer the business through change, aren't strategic problems. They're people problems.
The good news is, once you see that, you can do something about it.
You can start asking better questions. Who are the people involved? What's going on for them? Do they have what they need - for this phase, not the last one? Do they believe in where the business is going? Are they being led in a way that will get them there?
When you get curious instead of jumping straight in and trying to fix the symptoms, you give yourself a far better chance of solving the real problem.
So next time you find yourself wondering, "Why won't they just get on board?", try asking: "Who am I asking? And what's going on for them?"
In my experience, when you understand the people side, the math takes care of itself.
I'd love to hear your thoughts.
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