Why empathy is key to managing business change and transformation

Change and transformation is a constant for modern organizations. From implementing new technology and making strategic shifts to restructuring and mergers/acquisitions, change can have significant impacts not only on a business but also on its people.

Susan Jarrell Kushnir, VP, head of investment bank talent development at Deutsche Bank, believes empathy is integral to managing successful business change and transformation.

In July, Kushnir will be speaking at All Access: Change Management for Business Transformation 2024, the upcoming instalment of PEX Network’s free webinar series. Ahead of the event, PEX Network spoke with her about the intriguing role that empathy plays in managing and facilitating business change.

PEX Network: How important is empathy in effective change and transformation management?

Susan Jarrell Kushnir: Empathy is a very important piece of change management, and sometimes it’s easy to overlook it. Frankly, it is the cornerstone. We know that when there’s change or transformation, we need excellent logic plans, a very good communication strategy and great tools, but we also need to focus on things that relate to empathy like impact analysis. Which group, people and businesses are going to be impacted the most, either positively or negatively?

I like to think of it as the “head, heart and guts” of a person. We don’t completely leave our personal self at home and go to work as professionals – things get blurred. We do know that work is for work, but often, you come in, and if there’s a big change like a merger or change of role, it affects personal lives too, and we have to be sensitive to it.

When there is a transformational change, we know we’re going to have goals and targets that we must hit and, if we don’t, we know what happens. Showing and demonstrating empathy doesn’t change that fact, but it helps us get to the end result in a much more palatable way.

READ: Change management – the unsung hero of business transformation

PEX Network: In what ways can empathy enhance the success of business change?

SJK: It’s always important to collect feedback from people that are being affected or are close to those being affected by change. One of my favorite professors from Harvard said, “the best input comes when reasonable people disagree.” There are so many ways to get to the end result, and there are so many right ways to get there. Just pivoting a little bit and bringing in the personal element for people really makes a big difference.

Of course, individuals need to be “big boys and big girls” about change. An organization is an “it” – it’s not a person or something that owes anyone anything. How we work together as people is what plants empathy.

PEX Network: What can happen if empathy is missing from a change/transformation initiative?

SJK: People vote with their feet. They could leave at a time you don’t want them to, but they’re not going to stay if they feel that there’s not any kind of caring whatsoever. People might just find a nice way not to do what you want. That means you’re not going to accomplish what you what. That creates a disharmonious, disruptive way of being. You want people that are not affected, or maybe even positively affected, to be excited. They are also looking at how others are being treated.

READ: 5 ways to measure business change and transformation

PEX Network: How can business leaders ensure that empathy is central to their change and transformation efforts?

SJK: The short answer is to ask. I’m a real fan of pulse surveys. Sending out short surveys that take less than two minutes on things like how people are doing and how they’re feeling, along with any suggestions they have.

Always be direct and transparent – or if you can’t be transparent – let people know that more information will be coming. I think being transparent is always the way to go. For the most part, my team knows what I know. I know of a senior manager who, during a merger, would spend her lunch hour in a certain conference room one day every week and invite anybody to come and have lunch with her. She would tell everybody what she knew and listen to any ideas/concerns. I love the passion she had. Now, with global teams, there’s nothing to stop us having global lunches.

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It’s also about being clear on what tools people will have, and this relates to empathy. For example, if there’s downsizing, what will people get? Will they have outplacement resources? Will they get to do exit interviews, if appropriate? What can we learn from each other and be as respectful as possible? That benefits companies a lot. There’s a great school of thought that the people who leave your company are really ambassadors for your organization, and when they’re placed in other areas like competitors, you want them to say good things about your company.

Finally, you need to be direct. It’s very good to ask people what their opinions are, but it’s critical (and often overlooked) that leaders are clear when brainstorming is over. Maybe there’s a decision that people don’t like, but you need to make sure everyone understands the direction, even if they don’t agree.

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