Navigating organizational change and international expansion

In a recent Breaking Changes episode, Postmanā€™s Jean Yang sat down with Gwen Shapira, co-founder and CPO of Nile. Before starting her own company, Shapira led a Kafka team at Confluent. When she joined the company, they were already in the process of undergoing rapid changeā€”transitioning from an on-premises software provider to a cloud-native organization. Shapira shared her journey of steering teams through significant transformations, offering valuable lessons for leaders facing similar challenges.

Effective change management requires strategic communication

Successful organizational change hinges on clear, transparent communication, and needs to involve stakeholders at every level. Shapira shared an experience where a critical changeā€”the shift of production responsibilities from the platform team to the product teamā€”initially failed due to breakdowns in communication. Managers agreed on the change, but the details were unclear to team members. This oversight led to confusion and resistance when the change was implemented.

Advice for leadership:

  • Engage employees early on in the process. Before implementing a change, make sure that all team members understand the reasons behind it, the benefits, and their roles in the transition.
  • Communication is key to success. According to research conducted by McKinsey & Company, 65% of organizations that have undergone successful transformations used clear, two-way communication methods to get employees involved, such as face-to-face meetings with managers and leadership town halls.
  • Equip teams with tools and training to help them adapt to new processes and responsibilities.

Selecting the right champions for change is crucial

Identifying and empowering team members who are open-minded and adaptable can significantly increase your chances of success when carrying out change initiatives. In Shapiraā€™s case, the second attempt at implementing the production responsibility shift succeeded because an enthusiastic engineer embraced the new responsibility. His positive experience and advocacy influenced his peers to accept and even look forward to the change.

Advice for leadership:

  • Identify influential team members to help build momentum. Research shows that peer influence is a powerful driver of change within organizations (Harvard Business Review).
  • Foster a culture of experimentation that encourages team members to try new approaches without fear of failure.
  • Recognize and reward adaptability. Acknowledge those who contribute positively to change initiatives to motivate others.

Aligning talent with tasks enhances performance

Matching employees with roles that suit their strengths and interests leads to better outcomes and higher job satisfaction. Change is not just a technical challenge, but also a human one. The chemistry between team members and their affinity for solving specific problems can significantly impact the success of any change initiative. Shapira emphasized that much of a managerā€™s success lies in assigning the right engineer to the right problem. This alignment not only improves performance but also fosters innovation and engagement.

Advice for leadership:

  • Conduct skills assessments to regularly evaluate team membersā€™ skills and interests to inform work assignments.
  • Implement strength-based management. Gallup reports that companies who focus on developing employeesā€™ strengths not only see increased engagement, but achieve profit increases of up to 29%.
  • Provide career development opportunities. Support employees in developing their talents to meet organizational needs.

International expansion demands cultural integration

When expanding internationally, itā€™s crucial to fully integrate offshore teams in order to respect cultural differences and create equal opportunities. Shapira discussed the importance of treating offshore engineers as integral team members rather than outsourcing partners. This approach fosters a sense of ownership and commitment across the entire team. She also highlighted some of the challenges of cultural differences, such as variations in work expectations and norms, and why itā€™s so important to understand and bridge these gaps.

"I hired someone in India; great engineer, really lovely background. I was excited for him to join the team. And maybe two days before his starting date, I got a message from the recruiter that he joined a different company. In the US, thatā€™s almost unthinkable! But you want to have people with really good relationships that you trust, that understand the culture, so they can say, ā€˜No, this is normal. This is just acceptable.ā€™ā€

Advice for leadership:

  • Adopt an ā€˜offshore, not outsourceā€™ mindset. Integrate international teams into the core organizational structure with equal access to resources and opportunities.
  • Invest in cross-cultural training. Equip teams with cultural competency skills to enhance collaboration.
  • Position leaders who understand both cultures to facilitate communication and integration.

Continuous adaptation is the key to sustained success

Organizations must be willing to reassess and adjust their strategies continually, especially when initial change efforts donā€™t lead to desirable results. Shapira noted that while not all changes succeed on the first attempt, persistence and adaptability are crucial. Sometimes, it involves revisiting the approach, fixing underlying issues, or acknowledging that the organization isnā€™t ready for certain changes yet.

Advice for leadership:

  • Embrace a growth mindset. Encourage a culture where feedback is valued, and setbacks are seen as learning opportunities. Research has shown that when employees see opportunities for growth both in themselves and in their jobs, they are happier and perform better at work (Stanford GSB, 2023).
  • Monitor and measure change outcomes, and use data to assess the impact of changes and inform adjustments.
  • Be prepared to pivot. Stay flexible in strategy implementation to respond effectively to new information or challenges.

Final thoughts

Shapiraā€™s experiences underscore that effective change management and international expansion are multifaceted challenges that require deliberate strategies, clear communication, and a deep understanding of both people and processes. By focusing on these key areas, executive leaders can navigate their organizations through change more effectively, fostering growth and maintaining a competitive edge in the global market.

For more of Gwen Shapiraā€™s insights, check out the full episode, ā€œHow to Lead Your Team to Success When Failure Seems Inevitable.ā€œ Learn more wisdom from industry experts by subscribing to Breaking Changes on Apple, Spotify, and YouTube.

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