The stress level is usually high in a corporation that is being transformd. Bank of America is
taking over Countrywide. The big change not only involves new leadership skills, but also
leadership transition, team loyalty and operational costs reduction. A comprehensive change
management program needs all of these “lions and foxes” elements. Among business assets,
human capital, including the leader, is the most important -- we need new vision and services
to thrill customers and stay ahead.
In term of human capital in leadership, do we have the optimal capital? We can be limited
externally and internally. For example, I did not know about the Internet or Forbes in high
school. What I want and can do today is different from what was back then. And although I
have excellent medical training and research, I would have lost my mother after a tragic auto
accident had I not questioned my own ICU physicians. Sharpened insights enable us to see
and utilize what we have been missing in society, environment and ourselves.
The stress resulting from change, however, can be tremendous. This can further disable our
clear thinking and creativity, the key in change management. Stress can also lead to higher
operational costs in turnover, absenteeism and health costs. The American Institute of
Stress estimates that stress costs U.S. corporations $300 billion a year in health costs,
absenteeism and turnover. And workplace stress caused 52% of participating companies
struggle to retain their top performing employees, as seen in a 2007 Watson Wyatt’s survey.
These numbers can be much higher at times of change. What is the fate of corporations who
lose their top talents? Good management practices and relaxation can help, but we must
look beyond this to achieve more.
Regarding operational costs, in addition to the above, health benefits have become a bigger
and bigger burden, as U.S. health care costs have soared from 7.2% of the gross domestic
product in 1970 to 16% in 2005, per the National Coalition on Health Care. Absenteeism
resulting from health and stress also takes its toll according to a 2005 Harris survey. Most
institutions provide smoking secession, weight loss and limited relaxation programs. These
are helpful, but are far from enough to retain top talent and avoid costly health mistakes.
Comprehensive change management not only boosts leadership capabilities, and maximizes
human capital, but also minimizes operational costs in health care costs, absenteeism and
turnover. When employees incorporate their greater potential and problem solving into their
business activities by offering user-friendlier services and working with colleagues more
efficiently, your company will thrill more customers, gain stronger team loyalty and improve
the bottom line.
The real estate world is full of daily changes. Ms. Sullivan is the CEO of Nevada Real Estate
Corporation. She enjoys the benefits of the comprehensive management, “I am very happy
with more efficient productivity, increased business and reduced medical costs and
absenteeism. My employees are satisfied with their strengthened insights and problem
solving in life, health and stress. They care about their look more, and are full of energy. They
not only work together better, but also take care of personal issues more efficiently. The
Prince Synergy has raised our human capital to an optimal level."
Change is inevitable in today’s dynamic environment. Here are some quick tips to stay ahead:
1. Face the change--burying one's head in the sand can not stop change, but cuase lost time