Wholesalers will need to embrace change to be ready for the impact of weight reducing medication, writes David Gilroy.
My first experience of wholesale came in the early 1990s when I moved into the sector from superstore retailing. I entered a completely different world and there was much to like and admire. Most notably the positive trading relationships between the operators and their customers. I came to realise that to be successful in the industry, it was vital to build and maintain these relationships. This was a strength but also a vulnerability. Many changes in the outside world seemed to have passed the industry by in terms of processes, technology, basic stock presentation standards and range selection. Consumer expectations had moved forward at a pace, but time had stood still in wholesale and there was little appetite to embrace change. This was most noticeable in range assortments with a sparse offering in the fresh food areas and a complete lack of credible own label products. The multiples were on a different planet to the wholesalers. Now more than thirty years on much in our industry has changed and massively in terms of technology, range selection and operational methods.
Wholesale is in better shape to thrive in a challenging environment but not around chilled food and own label development, where (generally speaking) I believe it is still deficient. There has been forward movement, but too cautious. Consumer requirements have quickly moved in new directions – no more evident than in healthy choices relating to personal weight management. It is likely that people will start consuming less. If not less – then very differently. The impact on the industry could be profound. Time to take change management very seriously.
One of the most significant barriers to organisational change is inertia. Organisations develop established systems, routines, procedures and assumptions that provide stability. Employees become accustomed to doing things in particular ways, while managers develop planning, reporting and performance systems around existing practices. Over time, these arrangements become taken for granted. Organisational inertia can be particularly powerful when existing practices have previously produced success. Employees and managers may reasonably conclude that there is little justification for changing something that appears to work. Consequently, the organisation can become trapped by its own historical success.
A second major barrier is the psychological impact of change. Change introduces uncertainty, and uncertainty can generate anxiety. Employees may worry about job security, workload, competence, relationships, status or their ability to succeed in a new environment. A new technology, for example, may be perceived by employees as an opportunity by management but as a threat by employees who fear they lack the skills to use it.
This demonstrates why resistance should not simply be labelled as opposition. Armenakis, Harris and Mossholder (1993) distinguish readiness for change from resistance, arguing that readiness involves employees’ beliefs, attitudes and intentions regarding the proposed change. They also emphasise the importance of credible change agents and interpersonal and social dynamics in developing readiness. The solution is therefore to involve employees early and communicate honestly. Management should explain what is changing, why it is changing, what the consequences will be, and what support will be provided. Employees should have opportunities to ask questions and express concerns. Training, coaching and practical support can also reduce anxiety by increasing employees’ confidence in their ability to operate within the new environment.
Poor communication is another powerful factor preventing change. Change initiatives often fail when leaders communicate the desired outcome without adequately explaining the reasons behind it or how employees will be affected. Employees may consequently fill information gaps with speculation and informal rumours. Trust is particularly important. If employees have previously experienced poorly managed initiatives, broken promises or sudden changes in direction, they may be sceptical about management’s claims. Even a well-designed change programme can encounter resistance if employees do not believe the people leading it.
Culture can be another significant source of resistance. This is a big one. Organisational culture consists of shared assumptions, values, norms and behaviours that influence how people interpret events and behave at work. A culture that rewards stability, hierarchy and risk avoidance may discourage experimentation and innovation. Culture can therefore create a contradiction. Senior leaders may publicly demand innovation while the organisation’s reward systems punish mistakes. Employees quickly learn which behaviours are genuinely valued, regardless of what is written in corporate strategies. Overcoming cultural barriers requires consistency between stated values and actual organisational practices. If collaboration is required, employees should be rewarded for collaboration. If innovation is expected, sensible experimentation and learning from failure need to be tolerated. Leaders must also model the behaviours they expect from others.
Overcoming barriers to change requires an integrated approach rather than a single intervention. First, leaders should establish a compelling and evidence-based case for change. Employees need to understand the gap between current performance and the desired future state. Second, leaders should create a clear vision and practical implementation plan. A vision explains where the organisation is going, while a process explains how it will get there. Research examining traditional change models identifies vision, process, urgency and the perceived costs of change as recurring factors influencing successful transformation. Third, organisations should engage stakeholders early. Managers should identify individuals and groups likely to support or resist change and understand their concerns. Employees should be encouraged to participate in planning and problem-solving. Fourth, communication should be continuous, transparent and two-way. Leaders should communicate progress, acknowledge setbacks and respond to concerns rather than attempting to suppress disagreement. Fifth, organisations should invest in capability. Training, coaching, resources and time are essential when employees are expected to adopt new behaviours. Early successes should be recognised because visible progress can increase confidence and demonstrate that the change is achievable. Finally, change needs to be embedded into organisational systems. New behaviours will not survive if performance measures, incentives, structures and leadership practices continue to reinforce the old way of working. The change must eventually become part of “how we do things here”.
David Gilroy, Store Excel
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