How to manage resistance to change

Many inexperienced change leaders tend to assume that change in organizations can be broken down to a purely rational calculation of costs and benefits. In reality, the emotions of organization members are inextricably connected to how they will position themselves towards the change and whether they will support it, resist it, or remain neutral bystanders.

The emotional side of change

In our analysis of emotions we rely on the emotion wheel which is part of the EHL Emotional Intelligence assessment. We suggest that one of the keys for effective change leadership lies in the change leader’s ability to recognize dominant negative emotions towards change and transform them, to the extent that this is possible into positive ones.

Change and resistance

For leaders trying to steer organizations through major change, resistance to change is a permanent companion. The concept of resistance has been prominent since the earliest conceptualizations of change in organizations. Kurt Lewin hinted at it in his famous recommendation for the three key steps of change: unfreeze – change – refreeze. The idea of unfreezing suggests that organizational habits and patterns need to be broken up for change to occur. Something that is unlikely to occur without resistance. And refreezing suggests that organizational change needs to be stabilized for the long term, otherwise the remaining resistance may lead to a quick reversal and return to the old status quo.

The change formula rendered famous by many consultancy firms, suggests that resistance to change is one of the most prominent reasons for failure in change processes. It suggests that three major forces can be harnessed to overcome resistance to change. Dissatisfaction with the status quo needs to be generated. There needs to be a clear vision for change. And, last but not least, defined first steps towards the desired change need to be laid out.

These key ideas are also at the basis of the famous model for leading change developed by John Kotter of Harvard Business School fame. His recommendations include the creation of a sense of urgency, the creation of a guiding coalition to overcome resistance, and the need for a clear vision and strategy that organization members can buy into.

Negative emotions related to change

Anxiety and fear

Probably one of the most dominant emotional reactions towards emotional change consists of anxiety and fear. Change means venturing out into the unknown and exploring uncharted territory. It may come with bad surprises and may potentially be accompanied by personal losses. Whenever change is mentioned in a corporate context, the possibility of new job descriptions, reorganization of teams or possibly even downsizing and job loss will always be silently understood as being part of the range of possible outcomes. As a result, the gut reaction of many individuals towards change will boil down to nervousness or even outright fear.

Frustration and anger

The negative emotions of frustration and anger can come up in the context of a change process, particularly if the latter is led in a top-down orientation and does not provide opportunities for empowerment and buy-in. In such a change scenario, the recipients feel that decisions are made “over their heads”, without room for input or involvement. Frustration and anger may also result from disruptions that occur as part of the change process. Those can be of a physical nature (e.g., restructuring of the workspace), an intellectual nature (e.g., changes in procedures or IT tools) or a social nature (e.g., disruptions of social links with team members due to reassignments).

Disappointment and sadness

Another basic emotional pair involved in early reactions to change is disappointment and sadness. Change always means parting ways with the past. It means letting go of traditions, habits and customs. For many individuals, changing the way things are done implies a negative judgment about what was done in the past. “If we need to change it that means that what we have done so far was not good…”, or so the thinking goes. As a result individuals may feel unrecognized for their past efforts, eventually leading to disappointment with management and sadness at the individual level.

Replacing negative with positive emotions in the change process

The likelihood for organizational change to succeed will increase dramatically when change leaders manage to replace dominant negative emotions by positive ones. Here is a brief overview of the range of positive emotions that can be activated in a process of organizational change.

Replacing anxiety and fear with surprise and interest

Doing new things does not necessarily have to be frightening. Whenever new roads are taken, the emotional reactions can be channeled towards surprise and interest. While past routines may have been comforting they may also have been a source of boredom. Injecting change into a corporate environment may push individuals out of their comfort zone but may serve to provide them with fresh momentum, thereby providing surprise and excitement and re-energizing the workplace.

Replacing frustration and anger with fun and amusement

Very often, change allows for experimentation and experimentation can be fun. When change leaders manage to present a change initiative as something that is not set in stone but that leaves room for personal initiative, creativity, innovation and experimentation, there is a real potential for generating amusement.

Replacing disappointment and sadness with joy and pride

When the initial stages of a change process are led in such a way that the audience perceives empowerment the end-result may be buy-in and perceived ownership of the process. The perception of “they did it to us” will be replaced by the idea that “we did it ourselves, we did it our way, and we succeeded”. As a consequence, individuals will feel part of the change process, rather than seeing themselves as objects, and may feel joy and pride in the outcomes that have been achieved jointly.

The optimal outcome

When change leaders manage to turn negative emotions into positive ones, the final emotional end result may be relief. This brings the emotion wheel full circle. Individuals will come to the conclusion that “things were not as bad as expected”, that “we were in it together” and “after all, what we have achieved is better than what we had before”. What better outcome could a positive change leader hope for!

First published on EHL Insights.

Written by EHL Faculty members, including Dr. Stefano Borzillo, Associate Professor at EHL Hospitality Business School, and Dr. Steffen Raub, Full Professor at EHL Hospitality Business School.

Gen Z customer experience strategy: Dealing with younger generations

You have to be careful when making assumptions about customers based on generation-specific stereotypes, as there are exceptions to every rule. However, it’s fair to say that Generation Z consumers – born between the mid-1990s and 2010 – have different customer experience expectations, including customer service strategy. And really, it’s hardly surprising.

Generation Z is the first generation not to know a world without the internet. Their purchasing decisions are heavily influenced by social media. They favor a digital-first customer experience that is responsive and transparent, and they place a high value on ethical concerns when deciding which businesses to buy from.

Gen Z consumers have high expectations. Having always had the conveniences that other generations have learned to enjoy over time, they are less impressed with current customer experiences than previous generations, with a 50% satisfaction rate compared to the 71% of their predecessors. However, they are highly influential, with the incoming generation driving change and setting the standards older generations soon come to expect.

The truth is that organizations must work harder to deliver customer experiences that meet Gen Z expectations. But where should you start? Here’s our guide, complete with real-life examples of successful customer experience strategies for Gen Z.

The future of customer service? Let them help themselves

One of the most significant generational shifts is the preference for self-service customer support (FAQ pages, chatbots, virtual assistants, etc.). A Gartner survey of over 6,000 consumers found that 38% of Gen Zs would stop trying to resolve a customer service issue if they couldn’t do it themselves. That contrasts with just 11% of baby boomers, who would give up on an issue if they couldn’t find a self-service solution.

Gen Z’s preference for self-service support has a profound impact on customer satisfaction and loyalty. A staggering 52% of Gen Z consumers who could not resolve an issue in self-service would not buy from the company again, while 44% would say negative things about the company. This trend underscores the urgency for businesses to adapt to Gen Z’s preferences.

With that in mind, customer service leaders must work to provide resources that Gen Z can use to solve problems themselves. That includes multiple self-service touchpoints, such as an online knowledge base, useful FAQ pages, chatbots, virtual assistants, and product tutorials. Brands should also look for ways to seamlessly switch users from a self-service solution to an assisted service where the issues they’re experiencing are more complex. Proactive live chat options and prompts to call an agent are both potential solutions.

Create more personalized experiences

Having been force-fed targeted ads, personalized content and recommendations, and custom playlists their whole lives, it’s perhaps not surprising that Gen Z has a greater appetite than any other generation for customized experiences.

Personalization is not just a trend for Gen Z, it’s a key driver of brand loyalty. 41% of Gen Z are willing to give up their data in return for personalized experiences, 62% will pay extra, and 45% will leave a website if it doesn’t provide personalized recommendations. Given these numbers, personalization should be a cornerstone of your customer experience strategy.

Personalizing the customer experience can take different forms. You can provide tailored communications across your website, apps, and social media platforms to attract new customers and up-sell and cross-sell. You can also inject personalized elements into your customer support with personalized tips, follow-ups, and videos to help solve customer problems.

Gen Z attention span: Lean into video

Video was a nice-to-have rather than a business imperative until fairly recently, but the rise of Gen Z and its insatiable appetite for visual content is changing all that. People often cite that Gen Z has an attention span of just eight seconds, based on 2015 research from Microsoft. However, newer research shows they have no trouble concentrating on content they relate to and find interesting, such as Young Adult literature and deep dive videos. This tendency indicates that they are a good audience for easily digestible, short videos that can quickly and effectively tell stories, demonstrate products, share testimonials, and showcase a brand’s personality and values.

The platforms Gen Z favors for consuming video content include TikTok, Instagram, and YouTube. Importantly, they spend more time watching videos on their smartphones, so any video content you create must be optimized for mobile devices to increase engagement and ensure a seamless viewing experience. The effectiveness of video content is backed up by the stats, with one survey finding that 70% of Gen Z find videos very useful when making purchasing decisions.

Although visual content dominates, Gen Z consumers are discerning about what they watch. They value authenticity and transparency in their interactions with brands, with real customer stories and behind-the-scenes footage helping to strike the right chord. They also value brands that are transparent about their values and social responsibility initiatives and want to feel like they’re part of a community.

Embracing Gen Z values and morals: Building authentic connections for lasting customer engagement

We’ve already touched on the importance of authenticity and values to Gen Z consumers. Their constant exposure to global issues makes them more discerning than previous generations when deciding how they spend their hard-earned money.

Research suggests that Gen Z will walk away from brands that don’t share their values, with 68% wanting to buy from companies that support a primary social cause. However, those values must be something the brand lives and breathes and doesn’t merely pay lip service to. Suppose you want to showcase your company’s approach to sustainability, inclusion, diversity, and environmental issues. In that case, you must actively show your customers how you engage in those areas and your work.

You can also create a powerful community by engaging in meaningful conversations with your customers and asking for their feedback and opinions. Authenticity is key, so be careful not to overpromise or use exaggerated or misleading claims, as this could backfire.

Switch your focus: Align with Gen Z preferences

Gen Z can be a goldmine of possibilities, but only if you switch your focus from ‘how do we do things’ to ‘how do our consumers want things to be done.’ By ‘switching your focus ‘, we mean shifting your perspective and priorities to align with Gen Z’s preferences and expectations. Gen Z are uncompromising in their outlook, and if you don’t give them what they want, they will go elsewhere.

However, if you offer Gen Z personalized experiences, empower them to solve their problems, and align with the issues that matter to them, you can create a fiercely loyal customer base to help future-proof your business.

First published on EHL Insights.