The first thing we must do in discussing change is to define it.  Dictionary.com (www.dictionary.com) lists 38 definitions of change: eight if used as a verb with an object (e.g. Customers’ opinions changed); nine if used as a verb without an object (e.g.  Overnight the mood of the nation changed); sixteen if used as a noun (e.g. New buying patterns were caused by a social change); one if used as a verb phrase; four if used as an idiom.  For purposes of use in relation to business, I will primarily use the definition, “to make the form, nature, content, future course, etc., of (something) different from what it is or from what it would be if left alone” (www.dictionary.com, “change”).

While some people may be resistant to change that they see as forced upon them because their hopes have been dashed in the past by prior changes or they see the change as a threat to their own security or status, many others will positively respond to change.  The Hawthorne effect is named after findings from a series of studies conducted at General Electric’s Hawthorne plant in Chicago from 1924 – 1933.  George Elton Mayo (1880-1949) was a noted Australian psychologist and Harvard Business School professor who was hired by General Electric to determine how change influenced peoples (workers’) behavior.  He concluded that it was the incidence of change itself, not the type or substance of change that mattered, and that all change had a positive effect on workers’ attitudes, behavior, and performance.

Changing the way you treat consumers can improve the results of your marketing efforts. Dr. Paul Marsden, from the London School of Economics has written extensively on the subject.  He notes, “What does the Hawthorne Effect have to do with growing your business? Creating advocates, or promoters, or evangelists is the first step to harnessing the power of word-of-mouth marketing. The researchers at Hawthorne created advocates by singling out a small, exclusive group, giving them special attention, and asking for their opinion. It is possible to do the same with your product or service” (www.seedsofgrowth.com/categories/hawthorne-effect).

People exhibit acceptance and even desire for change if you consider the percentages of people who, by their own choice, change jobs, relocate to new geographic areas, change their religious affiliation (a recent CNN news article noted that 26% of all Americans changed from one religion to another in the last year, and that 44% changed if you consider movement between sects of the same religion).

Change of course, is happening all the time in the world around us.  If you read, listen to, or watch the news you are learning about change.  If there was no change, there would be no news.  Business does, and must, adopt and react to changes in the environment affecting it.  Fuel prices, inflation, unemployment rates, consumer trends, shortages or abundances of product, and many other outside factors require businesses to change in order to prosper.  You must also react to changes made by your competition.  If your competitor adds evening or weekend hours and consumers flock to their establishment, you will have to provide similar hours to maintain market share.

In business, positive consumer responses have been attributed to new products and models of products, updated logos and websites, and reorganization of store layouts.  Big business understands and embraces these changes.  There are annual automobile, appliance, and furniture model changes; name changes (Kash n’ Karry became Sweetbay Supermarkets); ongoing store layout changes (Publix, Target, WalMart); all of these are designed to motivate the consumer.

Small business can make similar changes, and in fact it must if it is to survive and prosper.  Whether or not you make changes, change in the world outside your business will occur.  Our population is becoming more diverse (does your business welcome customers for whom English is their second language?)  The population is aging as well (are your printed materials in a comfortably large font for the “older” sector?)   The economy is faltering at the moment.  Although temporary as the economy is cyclical, have you made changes to reduce costs to customers who are in a budget pinch?  You could do this by stocking larger sizes with a lower per-unit cost, or simplifying your services to make them more affordable (e.g.: offer oil change only, not just oil change and other services as a package; offer the entrée with one less side item for a lower price; provide dry-cleaning by the pound, not by the item).

Experiment with changes in your business to see how much effect they might have.  You can make no-cost changes like changing the layout of the store, low-cost changes like adding weekend hours, redecorating, or modifying your website.  Longer term changes can be accomplished by creating the Hawthorne effect.  Find out what your customers want via surveys, focus groups, and blogs.  Use their feedback to provide changes that they ask for.  In all cases, remember, change is positive!  There is a mantra that I use my marketing classes that sums it all up:

“Change is good, change is welcome, change is our friend.”

References:

Bolman, L. & Deal, T. Reframing organizations, 1997.  Jossey-Bass: San Francisco

Clark, K. & Clark M. Choosing to lead, 1996. Center for creative leadership, Greensboro

Hesselbein, F. (editor), The leader of the future, 1996. Jossey-Bass: San Francisco

www.accel-team.com/human_relations/hrels_01_mayo.html

www.chiroweb.com/archives/18/22/08.html

www.dictionary.com

www.seedsofgrowth.com/categories/hawthorne-effect

www.wikipedia.com