Embracing Change Building employee trust by Wattie Lo Turning a government financed unit into a profitable business follows similar steps to a reengineering aimed at turning a company around. The Electrical and Mechanical Services Department's example shows that one major task is to turn employee prejudices and resistance into a driving force Change is the norm with today's many industries. The public sector is no exception. While change is a fact of life within and outside of organisations nowadays, "resistance is unavoidable," says Roger Lai, director of the Electrical and Mechanical Services Department (EMSD) of the Hong Kong SAR government. "But overcoming resistance is merely a step in the right direction. What's more important and difficult is to turn defiant forces into positive energies, so that they can be harnessed in pursuit of organisational goals in the future." From rumour to resistance Traditionally providing free-of-charge services with government funding, EMSD began an overarching reform in the early 1990s in an attempt to optimise its use of resources and raise efficiency. As part of the reform, EMSD initiated a Trading Fund scheme, under which some of its divisions would cease to receive government funding, compete with service providers outside the public sector, and provide paid services in a manner subjected to the rules of commercial business. The scheme was put into effect gradually; by 1993, it was extended to all of the divisions. However, almost at the same time, rumours spread swiftly among employees. Some believed that the scheme was essentially a pretext for eradicating redundancies, while others feared that they would come under immense pressure once the change had fully materialised. Such rumours deepened employees' mistrust of management, causing morale to plummet and resistance to build up. "Resistance is unavoidable ... But overcoming resistance is merely a step in the right direction. What's more important and difficult is to turn defiant forces into positive energies" Clearing the air Vigorous communication is absolutely vital in times of change. To soothe employees' disquiet over the issue, Mr Lai stresses, "management must communicate with staff at all levels in an honest, frequent and pervasive manner." To that end, in 1995, EMSD drafted a 70-page consultation document, in which the department outlined everything from the reasons behind the new arrangement to its likely implications for employees and their roles in long-term business plans. Mr Lai says: "One of the key objectives here was to correct any misinterpretation of the arrangement that might have been created by rumours, and to replace these with factual information in black and white. Moreover, we also published newsletters in order to establish a constructive dialogue between us and our staff." The strategy turned out to be a remarkable success, in that it gradually broke down employees' sceptical opinion about change, thereby opening the door to developing trust and long-term cooperation between the two parties. Rallying to organisational change Providing on-going and intensive training for staff at all levels is crucial for the implementation of any change programmes. Training serves as a means by which "to preserve order amid change, and vice versa," Mr Lai explains, saying that through training, organisations are able to align their divergent opinions around common interests and prepare their members to perform satisfactorily in an environment where chaos reigns. With the new arrangement, EMSD now has set a target of achieving four and a half days of training per staff each year, compared with less than two days previously. Mr Lai believes that intensive training has been critical to the department's success in executing change as it helps engender consensus - which in turn helps develop trust - among its members. Recognition and rewards It is not unusual that some employees prefer to see early and quick results. Even a little incentive would make employees feel driven to work hard and restore confidence in what they might previously perceive as implausible and bleak. Recognition and rewards help turn these prejudices into energies that support change in a desired manner. Mr Lai says, "We send some employees abroad... they can meet up with their foreign counterparts, share their experience, and open their eyes to new things." Moreover, in recognition of employees' outstanding performance, the Director's Commendation Certificate is awarded. Other reward schemes such as Staff Encouragement Scheme and Team-based Performance Reward Scheme are also in place to reward with token bonuses those with good performance and to express recognition. "All these efforts have finally made EMSD now a viable business," Mr Lai says. But he also reminds readers that success will not last unless the initial efforts are continuously enforced. Before and After Before * EMSD was awash with excessive capacity funded by the government * Customer service was poor * Communication breakdown existed between management and staff due to conflicting interests * Staff rewards and recognition were minimal and were not linked to job performance * Adequate training programmes were absent * Staff were reluctant to change due to their distrust of management After * Excessive capacity was identified and eliminated in pursuit of cost-effectiveness * Customer service improved significantly due to intensive training and staff briefing * Continuous communication efforts through meetings, newsletters, and training support enhanced mutual understanding * Rewards and recognition were made subject to levels of staff performance * Ongoing training and retraining programmes were introduced * Staff distrust of management slowly subsided Taken from Career Times 21 February 2003 Your comments are welcome at [email protected]