Change fatigue – the silent killer

It's crazy out there -- probably the simplest way of manifesting the existing business environment. Rapid technological advancement, increasing geopolitical tensions, mounting competition and shifting market dynamics are some of the critical factors contributing to this extremely challenging situation often summarised as VUCA -- an acronym for volatility, uncertainty, complexity, and ambiguity. Organisations have to go through rapid changes to navigate in this unprecedented demanding time. If changes are not managed effectively, it takes its toll known as "change fatigue", which refers to the overwhelming sense of emotional, mental, and physical exhaustion that employees may feel when they are subjected to frequent or extensive changes within their organisation. Consequently, it creates resistance and disengagement, making it difficult for employees to adapt to new initiatives or maintain productivity.
Several factors cause change fatigue. The first and foremost is lack of clear, consistent, and transparent communication about the reasons for changes. If employees do not understand the rationale behind the changes, they get confused, uncertain, and anxious. Employees need to be involved in the change process, otherwise they might feel disconnected or undervalued, leading to resistance and lack of ownership.
New skills and knowledge play a critical role in driving changes. If employees are not provided with the necessary training to handle the changes, they get frustrated. Inconsistent messages or actions from leaders can create confusion and erode trust, making it tougher for employees to adapt changes.
Many a times changes come with increased workloads, as employees juggle existing responsibilities alongside new tasks associated with the change. This can lead to burnout, particularly if the change is perceived as adding more pressure without adequate support. Last but not the least, change often brings uncertainty about job which can trigger anxiety and stress.
There are quite a few examples of how reputed global companies paid dreadfully because of their failure to address change fatigue. In the early 2010s, to tackle the recalls and quality complaints, Toyota implemented numerous changes to its production processes and corporate culture. Employees, particularly in manufacturing, had to undergo constant adjustments to workflows and expectations, leading to fatigue and resistance to further changes. Toyota estimated that the recalls and related changes cost the company over $5 billion in fines, legal settlements, and lost sales.
Following a series of controversies in 2017, including allegations of a toxic workplace culture, Uber implemented sweeping changes to its leadership, policies, and corporate culture. Consequently, employees faced a barrage of new initiatives, training programmes, and cultural shifts, which led to confusion and fatigue. Many employees struggled to adapt to the rapid pace of change. It cost them $1.1 billion, partly due to legal and regulatory expenses tied to its cultural transformation. Employee turnover and recruitment costs also added to the financial burden.
Change fatigue can significantly impact businesses in many ways, leading to decreased productivity, higher employee turnover, lower employee morale and engagement, resistance to future change which eventually boils down to financial losses.
Combating change fatigue starts with open and transparent communication followed by involving employees in the change process. Providing adequate training and necessary tools, building a resilient culture that embraces adaptability and pacing change mindfully are also critical.
Organisations that fail to address change fatigue risk facing significant challenges in navigating their transformation efforts, ultimately hindering their ability to adapt and thrive in a competitive landscape.
The author is the chairman and managing director of BASF Bangladesh Limited
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