To manage corporate change, keep employees engaged

October 25, 2011

Dramatic change within a company won’t succeed without the support of the workforce, which requires the right messages and incentives, Fortune reports. In the sluggish economy many companies are scrambling to find new sources of profit, but corporate attempts at change often falter. Netflix and its aborted decision to split its DVD-delivery and video-streaming services into separate businesses is just one example.

When a company’s direction is in question, it’s critical to keep employees committed and engaged. Especially during the first six weeks, an hour or two of training per day helps communicate the new system. When change involves new business partnerships, pay close attention to potential culture clashes, Fortune suggests.

Managers should assess employee preferences — to stay with existing product lines or explore new-product R&D, for example — and split workers into teams that maximize strengths and enthusiasms. Understanding what inspires teams to perform will help managers build a stronger, smarter, more effective organization. — Greg Beaubien