382: How to manage change when your product disrupts your organization – with Brendon Baker

How product managers can become change leaders Today we are talking about change. The very nature of our work as product managers and leaders creates change—we change existing products to make them more valuable to customers and our organization, and we create completely new products, which causes change to occur at many levels. Your work demands that you are competent leading change. To help us learn how to better manage the change our product projects create, Brendon Baker is with us. He has helped organizations across several industries navigate change created by large transformation projects. He is also the managing director of the firm Valuable Change Co and author of the book Valuable Change: What You Need to Know to Ensure Your Change Pays Off. I appreciate his personal mission statement, which is “Help Change Leaders Drive Real Value.” Summary of some concepts discussed for product managers [1:58] How did you become the guy who helps organizations with change? As a child, I wanted to be an entrepreneur, and I didn’t want to do Business as Usual—doing the same thing every day scared me. I got into project management then consulting. Throughout my career, I saw a pattern: Change leadership made the difference in whether change was successful or not, yet those change leaders were essentially abandoned by the industry. There are not textbooks or certifications for change leadership. It’s assumed everyone can do it. I’ve found people can’t always do it—not from a lack of skills or capability but from a lack of support and knowledge. Change leaders default to running change based on time and cost, which doesn’t ultimately achieve the value they’re looking for. I founded Valuable Change Co to provide support without adding unnecessary complexity. My mission is to help change leaders drive real value, and my secondary mission is to fight unnecessary complexity. I’m providing knowledge about the key essence of change leadership and simple metrics or questions to maximize the value of what change can achieve. [9:51] Talk us through applying your framework to a real problem product managers encounter—when we develop a new product that disrupts an existing part of the organization’s business, causing many people to try to kill the new product. How do we deal with this change and help the people in our organization become our supporters? Resistance comes from self-protective fear and is an indication the value equation is imbalanced for these people. As leaders catalyzing change, we tend to underestimate the impact and pain caused by the change for everyone else. As humans, we avoid pain unless there’s a good reason to endure it. As change leaders, we’re inflicting pain on others. The value equation is reward – pain = decision. We need to think about how to rebalance the value equation by increasing the reward and minimizing the pain. As a mental metric, list the pain and rewards the change will create, then double the pain and halve the rewards. Then ask yourself, would I still be on board with this? If not, keep increasing the reward and decreasing the pain. You’re asking a group of people to take on personal pain so the organization won’t collapse. We need to balance that by creating opportunities for personal reward, reducing personal pain, involving employees earlier in the discussion, or having a value equation discussion with them upfront. As a change leader, you know that if we don’t change, the organization will be gone in five years and everyone will lose their jobs. However, pain in five years is less impactful than pain in six months. When you ask for change, you’re asking employees to invest in pain now so they don’t have pain later. You may need to make the pain in five years seem scarier and more evident. Decrease the immediate pain.