Change: the John Lewis case

In his FT column, Stefan Stern (24th May) commented on the success of the John Lewis organization in implementing some major changes, which included, for a notably paternalistic organization, some pretty hard nosed changes to its business model, with the loss of 250 jobs on the closure of a warehouse, and other redundancies linked to further changes. Significantly, the senior management decided to commission a consultant specializing in change management to advise them during the transition.

He reports that the consultant, Catherine Sandler, co-founder of the London based Sandler Lanz consultancy, advised that at times of great turbulence and uncertainty, leaders need to offer “psychological containment”. She explains that “There has to be congruence between what employees are feeling and how leaders behave.” And she lists four things which leaders have to do.

1. They need to be on the front foot, taking “prompt, visible and considered action”.
2. They have to communicate honestly, on the basis that people prefer to know the worst than fear the worst.
3. If possible, they need to find a positive and even inspiring message amid the bad news.
4. Last – and hardest of all – they need to convey empathy, “in a way that is authentic to them”.

Stern reports that the first time the MD suggested to senior managers that they discuss 'how all this feels', he was greeted with groans because these are people who are highly task focused, and displaying empathy isn't a high priority for people under considerable pressure. Evidently some of this approach must have rubbed off on them, however, and the company has managed to come through the transition very successfully, with sales up by 15 per cent for the first quarter -- comfortably ahead of the competition.

John Lewis is an exceptional organization, but is not above taking some tough decisions. However, it appears to have done so in a way which is congruent with its unique and long standing set of values, as established by John Spedan Lewis, who, on the verge of the great depression, established the partnership model of corporate ownership which is unique to the organization. Ensuring the survival of that model and of the set of values associated with it, not to mention the business itself, the current leadership realized that significant changes would be needed, and rather than shying away from them, they took good advice and went ahead. A salutary lesson in both recognizing the need for change and in managing it successfully.