From Academy Leadership Affiliate Bob Larkin
Change happens around us all the time. So — how do we look at it as a leader? I suggest that it can be reduced almost to a mathematic equation:
C=ABD>X, where
C= Change will occur, when the combination of
A= Level with dissatisfaction with the present state
B= Level of clarity of the future state
D= Clarity of the first step
All exceed
X= Perceived cost of the change.
The value to a leader in thinking this way is to evaluate each part of the equation and determine where the leverage is. For example, if the dissatisfaction with the present state is high, then emphasize it while keeping the other items non-issues. If there is minimal dissatisfaction with the present state, then the leader either has to make the present status more clear and/or focus on where to move (future) and how to get there (first step).
Example: your car is making a noise. How bad is the noise (level of dissatisfaction = A)? How clear is the future (no noise = B)? Do we know a good mechanic (first step=D)? If I believe it may cost me a lot of money and time to get it fixed, then the perceived cost (X) is very high.
One can apply this to an organization change, to making a sale, or even to making personal change!