Change is accelerating to an incredible pace in the dairy industry. In just the past few years we’ve had to deal with issues like: BSE, rBST, organic, high grain prices, volatile milk prices, feed grains for fuel production, high demand for milk components, cloning, sexed semen, consolidation, immigration, etc. It makes me think of Billy Joel’s song, “We didn’t start the fire.”

Well, maybe we didn’t start the fire, but if we’re unable to change, it will burn us. On the other hand, if we learn how to change quickly and effectively, we might find opportunities to use its heat to our advantage.

Change has become a subject of intense study in the business world. The important question is clear: Why do some organizations adapt and thrive while others are overtaken and destroyed by changing markets and technologies? Dairy businesses can be unwieldy organizations that do not change easily. Tradition, family ties, previous investments and peer pressure can all combine to keep a dairy from changing to seize opportunities or avoid problems. Managers need a plan for executing organizational change. John Kotter of Harvard University, one of the leaders in the change field, proposes an eight-step plan for successfully leading change in an organization. The eight steps are as follows:

1. Establish a sense of urgency

People like to keep their comfortable routines; they often won’t change unless the ship is sinking. They’re thinking, “Our somatic cell count is 300,000; that’s not so bad. Why should we put a lot of effort into changing it?” The leader needs to intensify the urgency: “Mediocre milk quality costs us $40,000 a year! We’re leaving increased milk production and quality incentives on the table. That lost money could be used to pay you a bonus or to build that transition cow barn that we need so badly! Let’s face it, if we want to run with the big dogs, we’ve got to make top-quality milk.” For others the message might be different: “I know you love these cows, but you need to understand that mastitis shortens cows’ lives. We’ve got to improve milk quality if only for the health of the cows.”

2. Form a powerful guiding coalition

Owners don’t have all the power. The owner is essential for change to happen, but key managers and influential people at all levels should be recruited to help lead the change. For example, a major milk quality improvement effort requires top management, the parlor manager and influential milking employees to be in the guiding coalition. They need to understand the benefits of the change and be ready to support and defend it even against the inevitable temptation to backslide into the old, comfortable way of doing things.

3. Create a vision

People need to see where they are going and how life will be better when they get there. Changing just because the boss says so does not tap internal motivation. The vision should be desirable for everyone, not just farm owners. The guiding coalition must map out a strategy that will lead to the vision becoming reality. People are motivated to achieve goals that they view as worthwhile. Make sure that the vision has relevance and benefits for people at all levels in the organization.

4. Communicate the vision

It is imperative to regularly communicate and remind people about the worthwhile vision they are trying to achieve. Talk about the vision in meetings, post it on bulletin boards, put it in the company newsletter. Track progress toward achieving the vision. Thorough and regular communication keeps the vision fresh and people focused on achieving it.

5. Empower others to act on the vision

Remove obstacles to change. Sometimes these obstacles are old equipment that needs to be replaced, sometimes they are procedures that need to be scrapped and re-developed. Sometimes the obstacles are people who need to be retrained, reassigned or encouraged to seek employment elsewhere. Everyone needs to be encouraged to take up new behaviors that support the change. It is critical that the guiding coalition models and supports the new behaviors. If the owner feeds on the weekends when the regular feeder is off, then the feeder should see that no corners were cut while the owner was feeding. Actions speak louder than words; those in the guiding coalition must live out the new way of doing things. Backsliders must learn that such behavior is not acceptable.

6. Plan for and create short-term wins

A war is won through victories in battles. Football games are won through the accumulation of smaller wins in plays throughout the game. Without accumulated wins along the way there can be no victory at the end. It is the same in business; accumulated small wins lead to the big victory, and each small win should be recognized and celebrated. If the vision is to achieve a 28,000-pound rolling herd average, then keep track of progress toward that goal and short-term wins along the way. Fixing the stalls for better cow comfort is a win, improved feeding accuracy is a win, improved animal handling is a win; together they add up to the big victory. Each win should be recognized and celebrated for how they contribute to achieving the overall vision for change.

7. Consolidate improvements and create still more change

As the short-term wins accumulate, momentum builds. People start to believe that they can make the changes that will lead to the vision. Managers should encourage and promote employees who believe and strive toward achieving the vision. The old lead milker who resisted the new milking procedure and had a bad attitude is replaced by the new lead milker, who enthusiastically supports the new way. As motivation builds, still more projects can be undertaken. Better compliance with the new milking procedure is followed by training on how to use cowside mastitis tests. The wins keep piling up in this way, and soon people can see real progress toward the vision.

8. Institutionalize new approaches

The change process has three phases. Phase one is a time of stability and complacency. Phase two is a time of volatility when change in equipment, procedures, personnel and attitudes is occurring. Phase three is a new time of stability in an altered state that achieves the vision. The key is to ensure that the final state is designed to achieve the vision. Equipment, training efforts, procedures and personnel policies must all be aligned to achieve the vision. All personnel must be committed to the new way of doing things.

Such success in change management doesn’t really stop in a new altered state. Instead, once the vision is achieved, a new and better vision appears. Successful change builds confidence in people, and confidence leads to even more success. When this cycle of vision, change and success gets started, a business is well on its way to victory. PD

References omitted but are available upon request at editor@progressivedairy.com