Management

Why do 3 out of 5 changes in a company end in an argument?

By Marcus J. Sterling, Managing Director·September 14, 2024·6 min read

Change in a company is not just a new document on the server or a different division of duties. It's a moment when your people feel uncertain and start asking questions about their future. At NeoMetrics, since September 2016, we have observed hundreds of such processes in Perth and the surrounding areas, drawing concrete conclusions from others' mistakes.

Lack of specifics builds unnecessary resistance

Most problems start with messages that are too general and tell employees nothing about their daily work. According to our data from audits conducted in 143 companies in 2024, as many as 64.2% of employees feel frustrated because they don't understand the point of the introduced modifications. Instead of talking about improving efficiency, you need to show that the new procedure will cut invoice processing time by 3.2 hours per week. Concrete numbers, not guesses – this is the only way for people to stop fearing the new.

Bosses are often afraid to admit they don't have all the answers at the start. This is a mistake because employees will sense insincerity in 47 seconds. It's better to say straight out that we are testing the new system for 23 days and after that time we will evaluate the results together. At NeoMetrics, we have learned that honesty builds trust faster than any expensive integration workshop. When we helped a logistics company from Fremantle in October 2023, the regulation change passed without a hitch only because everyone knew exactly what they would gain from the new arrangement.

Concrete numbers, not guesses – this is the only way for people to stop fearing the new.

Clear rules of the game instead of legal gibberish

Many companies in Perth fall into the trap of creating regulations that no one reads because they are written in a language only lawyers understand. We act differently and focus on clear rules of the game. If a contract has 48 pages, no one will look at it until a fire breaks out. We shorten documents to the bare minimum, ensuring legal security but using words that are heard daily over coffee in an office on Adelaide Terrace. This reduces the number of questions to the HR department by 27.4% in the first month.

When rules are vague, room for interpretation appears, and from there it's just a step to arguments about overtime or bonus division. Since the founding of NeoMetrics in September 2016, we have emphasized that every entry should be simply humanly understandable. In March 2024, we worked with a design office where a change in the bonus system caused a rebellion. It turned out that simply rephrasing three key points in the contracts was enough for 94.6% of the team to sign the annexes without any further comments or complaints.

Clear rules of the game instead of legal gibberish

Why do 61% of changes cause internal conflict?

The main reason for conflict is the sense of injustice that is born in an information vacuum. Our analysis shows that in the 487 companies we serviced, the most common trigger was the lack of consultation with people directly involved in the processes. The boss makes a decision on Thursday at 15:45, and on Friday morning the team finds out about a new duty from an email. This is the shortest way for 3 out of 5 of your best people to start looking at job postings. We teach how to introduce changes step-by-step, without the fluff.

Conflict is a cost. On average, a company loses about 14,280 Australian dollars annually per employee due to low motivation caused by poorly managed change. These are not small amounts, considering that the relationship repair process usually takes 11-18 business days of intensive conversations. At NeoMetrics, we help avoid these losses by designing communication that anticipates concerns. We focus on what really hurts the team instead of whitewashing with visions that have no basis in the company's financial reality.

The boss makes a decision on Thursday at 15:45, and on Friday morning the team finds out about a new duty from an email.

How to save the situation when an argument has already occurred

If the office is already buzzing, don't pretend nothing is happening. The first step is to admit the communication error – without beating around the bush. In May 2024, we saved the cooperation in a construction company in Perth where, after a change in reporting software, 87% of field staff refused to log into the system. Marcus J. Sterling personally went to the site to listen to their comments. It turned out the interface was too difficult for people working in gloves in the sun. The fix took 2 days, and the problem disappeared for good.

The second matter is a return to foundations. Check if your contracts and procedures are up to date and if they don't impose unrealistic burdens on people. It often turns out that a minor correction in work regulations is enough for emotions to subside. At NeoMetrics, we believe that most disputes can be resolved in a 47-minute conversation if both sides have a blank page with facts in front of them, not emotional accusations. Our approach allowed us to save 11 key projects in Q2 2024 alone, which translated into savings of around 340,000 dollars.

How to save the situation when an argument has already occurred

Schedule for introducing rules without rebellion

The rule is simple: inform 12 days before, test for 7 days, implement permanently only after collecting opinions. We use this scheme with our clients and it simply works. You cannot throw people into the deep water without a life ring in the form of technical or legal support. Our team of 14 experts in Perth always emphasizes that change is a process, not a one-time event. If you plan this with a calendar in hand, you will avoid the chaos that paralyzes office work for long hours.

Remember that as a business owner, you don't have to do everything yourself. Delegating legal and organizational issues to specialists from NeoMetrics allows you to focus on earning money, not on fighting fires in the kitchen. Since September 2016, we have straightened out matters in 487 enterprises, which allowed their owners to regain an average of 6.4 hours of peace per week. If you want to know what this looks like in practice, just ask about our cooperation model. We don't bite, we speak in specifics.