Business Briefing: Why Do Employees Resist Change?

Keywords: Change Management, Employee Resistance, Organizational Change, Leadership, Personal Compacts
Source: Harvard Business Review
Link: Read the full article on HBR.org
Author: Paul Strebel
Published: May 1996
Est. Read Time (Original): ~25 minutes

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The Core Idea

Paul Strebel argues that most change management initiatives fail because leaders and employees view change through fundamentally different lenses. Leaders see an opportunity for growth and advancement, while employees see a disruptive and unwelcome threat to their stability. The root of this disconnect lies in the unrevised "personal compacts", the set of mutual obligations and commitments, both formal and informal, that define the relationship between an employee and the company. Strebel breaks these compacts into three dimensions: formal (job description, pay), psychological (trust, recognition), and social (values, unspoken rules). He posits that unless leaders consciously manage the revision of these compacts, employees will naturally resist any change that alters the status quo.

Why It Matters for Business Today

This 1996 article provides a durable framework that is essential for navigating today's environment of constant transformation. The concept of "personal compacts" gives leaders a powerful diagnostic tool to understand and preempt resistance.

• Beyond the "What" to the "How": Successful change isn't just about communicating a new strategy; it's about renegotiating the relationship with every person affected. Leaders often focus exclusively on the formal dimension (new roles, new targets) while ignoring the more powerful psychological and social dimensions, which is where most resistance originates.

• Trust as a Prerequisite for Change: The psychological compact is built on trust and reciprocity. When a company announces a major change without addressing what it means for job security, workload, or recognition, it violates this compact. The resulting loss of trust is the primary driver of the active and passive resistance that derails change initiatives.

• Misalignment Sinks Strategy: The social compact reflects the "real rules" of the company. If leadership promotes a vision of agile innovation while the company's unspoken rules still reward seniority and risk-aversion, the change initiative is doomed. Revising the social compact means ensuring that the company's values, incentives, and leadership behaviors are all aligned with the new direction.

The Strategic Question for Leaders

When your organization initiates a significant change, how do you move beyond simply communicating the new plan and instead actively manage the revision of your employees' formal, psychological, and social compacts to build genuine commitment?

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