The structure of change, performance and learning programs.

You understand how much business requires flexibility and constant adaptation. That's how business works. Teams that are successful recognize that change is not a nuisance, but an important part of their DNA. Embracing change, especially change management methods, opens the door to growth, innovation and new business opportunities.

But here's the catch.

Change as a driving force: emotions and their role in business success

Any sudden change triggers an emotional response.

People react to sudden change with shock, confusion, sometimes even anger. And resistance. They resist the change and act as a force vector in the opposite direction of the desired change.

This is a force of nature, wild and raw.

Think of this emotional reaction as a natural force.

Because then we are back on familiar terrain. Humanity has learned to deal with the forces of nature by subduing them or protecting ourselves from them. We discovered natural principles and created tools, infrastructures and systems to live in a world dominated by the forces of nature. And because of this, we already understand the principles of dealing with emotional reactions to change.

Typically, change triggers a wave of emotions with two peaks and two troughs. This pattern has six phases of transition (shock, denial, realization, acceptance, informed optimism and full integration).

We can describe the emotional peaks and troughs that occur after a change in business as usual is announced.

Thus, change always triggers a wave of individual emotions with two troughs and two peaks. This is a law of nature.

If you don't recognize this law of nature, you will move up and down in these emotional waves, but you won't be able to navigate.

You are doomed to passivity, like a message in a bottle.

On the other hand, we can recognize the pattern because we know it is a law. If someone throws a stone into a calm pond, it creates ripples.

It may not be your responsibility to throw the stone, but it may be your responsibility to deal with the consequences.

And because it is a law of nature, we know how to act.

First, don't fight the waves. Navigate the team through the situation.

Your team is moving like a group of swimmers in the ocean.

They are being moved up and down by big emotional waves caused by the change. Everyone can swim, everyone is wearing a life jacket. This up and down in the waves may be unsettling for some, but no one is in immediate danger. Life will not end because of it.

But if you try to flatten the waves or hold people in one position, it could end in tragedy.

You don't want to hold people when the crest of the wave is there, because the crash into reality could be violent. Keeping someone in the valley for an unnecessarily long time when the wave crashes over you will cause damage.

Well meant is not well done.

You can see the waves. Don't get carried away by the waves in the ocean. You have to play the role of swimming instructor on the beach.

Secondly, help them through the waves, support the team to stay afloat.

When faced with the shock and horror that follows the announcement of a restructuring, downsizing, outsourcing or acquisition, emotions can be so intoxicating that the macro-management of the entire emotional process is often overlooked.

This is because in business, we don't focus directly on emotions. We don't go into personal details or emotional reactions. Legal consequences, but above all respect for our employees and associates demand it. We have other options in business, so let's start with the big picture.

We start at the point when the change plan becomes public.

The Emotional Cycle of Change is the blueprint for a change, performance and learning program.

Shock and denial: Ensure clarity so that the content of the change is understood.

It starts with developing a shared understanding of the current state of the business, the desired future state and how to get there.

This sends the team into the valley. Now it needs one-sided information from a credible, reputable source. It's about maintaining consistency across all channels and sources. Any cacophony must be avoided.

If the content is too complex, which is usually the case, a news plan can help: Spread the message over weeks and give the information time to sink in and mature. Typically, a delay of three to seven days before the next message can help avoid confusion when delivering a complex message.

A carefully crafted messaging plan that spans a few weeks and includes a consistent message will help get through shock and denial phases and set the stage for focused interaction in the next phases.

This information should be written in colloquial language and carefully edited for inconsistencies in the message plan. Unknown variables and things that management does not yet know exactly, e.g. who will be affected by the change and to what extent, should be marked as such or omitted.

Consistent messaging shows that management is in control of the change.

An easily understood, symbolic goal should be the centerpiece and positive vision of the change. The automotive industry is blessed here; for a new product, a new car, can always become the symbol of massive change.

Leadership must both point the way and create resonance. Even if the message is not well received, the way it is communicated can help build the most important resource in the change process: Trust: Trust that we will all weather the storm.

Implementation and acceptance: Listen to the response, refine the plan.

When management has very clearly communicated the message about inevitable change and set the direction, it's time to listen to the organization.

But only then. You should keep the team's movement in sync with the emotional waves.

We strongly believe in participation and the value that comes from deep discussion. However, to get through the stages in a timely manner, every interaction must focus on exactly one topic: change. Any debate about the need for change will immediately stall progress. Management must set the agenda for the discussion clearly and unambiguously.

Once the agenda for the discussion is clearly set, the involvement of line management and employees begins.

The aim is to further strengthen the confidence of the organization and supporters for the change.

The format can be town hall meetings, a cascade of workshops and online meetings.

This phase has a simple and measurable goal: to gain 20 to 30 percent of the organization's support for the change. If these 20 to 30 percent are the key opinion leaders of your informal trust network, you can consider this change process a success at this point.

However, the following stages are still crucial and you can still win the overall race, even if not all informal opinion leaders agree with the change.

Enablement - delivering new capabilities at scale.

The first signs of a positive shift in sentiment and growing confidence signal the start of an enablement program.

Once the company's opinion leaders have regained their optimistic view of the company (and share their perspective with others), programs can be launched to equip employees with the necessary new skills.

Such programs must be planned, designed and executed in advance, and delivered in a timely and inspiring manner. The foresight to develop appropriate training programs as well as the design and delivery capability are big, but often overlooked, success factors.

The training strategy must prioritize training that improves key business KPIs in the transformation.

Training on pricing strategies when introducing a new retail agency structure is an example. The same applies to training on optimizing battery cell production during the ramp-up of the new Gigafactory. Or training on AI that is used in car manufacturers' planning processes.

Regardless of the topic of change, training must impart the necessary, fundamental new skills.

The willingness of employees to learn new skills to adapt to change should not be underestimated.

In contrast, a lack of adequate skills training always leads to stress, frustration and resignation. and blocks any change process.

At this stage, the ROI of the training equals the ROI of the entire transformation.

This is why training is essential to get through the second valley. The transformation will almost certainly result in a negative ROI if there is no investment in skill building and the team cannot get out of the valley of despair.

This is where some large parts of the German automotive industry currently find themselves.

The transformation of the automotive industry will fail, at least for some major players, if they do not upskill and reskill. The transition will be slower and may fail faster if the training is inadequate or irrelevant and not engaging.

But the process of guiding the team through the waves is not yet complete. The following step is required to get the organization back on track.

Coaching - provides clarity and focus, optimizes the new processes.

When the first waves of enablement have been successfully implemented, the new insights and skills have been applied at work and business KPIs have improved, control of the transition is transferred to the line business.

As the team approaches the second, higher peak, it takes away your responsibility for leading the team through the waves. But it's not over yet.

Because change and adaptation are constant in business. That's how the business world works. Transformation is not constant either and evolves during the implementation process.

The CEO already has the next stone ready.

The CEO is aware of the ripples and the strain that a sudden change of direction, another stone in the pond, means for the team and weighs the energy required to implement another change against the resistant forces that have been triggered.

It will be increasingly difficult for you to stand unmoved on the sidelines and help the team stay afloat, especially in a VUCA environment as so many parts of the business have become in recent years.

At this stage, coaching and mentoring are hugely effective.

Modern transformative coaching programs are delivered through platforms and address productivity, managing teams, change leadership and employer branding. Platforms are much more powerful, effective and cost-effective than traditional coaching programs.

Trust between coach and coachee is the "conditio sine qua non", the one thing that must not be compromised - and this is ensured by a pool of certified and highly experienced coaches from which the coachee can choose, the highest data security standards and the platform's simple communication, scheduling and feedback functions.

We know how coaching on a large scale can improve an entire workplace culture.

Communication is more concise and time-efficient, allowing for more focused work. Conflicts break out less often and are resolved more quickly. Coachees report increased efficiency while improving their personal wellbeing. Coaching is the most effective way to retain and attract talent, especially in fast-paced business teams.

The positive effects of coaching have not only been studied by academics, but also measured by numerous companies managing a transition

But coaching only unfolds its miraculous powers when it has been prepared by the actions in the previous waves. Coaching cannot replace the effect of a targeted information campaign or communication measures. If it is used for this purpose, it is very likely to have little effect.

This is because the team must be guided through the waves of change.

Into the first valley to the first peak and then into the second valley. Only when the team is there does the coaching unfold its full effect.

But then the effect of coaching on a large scale is unsurpassed.

The entire process, including information campaign, communication, training and coaching, is a scientific response to the natural power of the emotional response to change.

Designed, measurable support programs are available to help teams succeed in automotive transformation. Despite the complexity of the programs, designing and managing them is a craft.

Change processes fail when the waves are amplified incorrectly. Dissonance creates confusion. both sides frustrated. Distrust develops. If there is no market success, which is likely in a downturn phase, a transformation can fail.

Setting up a change, performance and learning program is our craft.

It is all scalable and can be implemented with available resources and technologies. Our innovation takes place above all in quality information, authentic communication measures, needs-based training and coaching across the board.

The time for the demise of the German automotive industry is still a long way off.