Supporting Teams Through Financial Change Processes

Organizational Trauma: The Recovery Killer Your Change Plan Ignores After Capital One's 2019 data breach exposing 100 million customers' information, leadership rushed to transform: new security platforms, restructured teams, revised processes. Despite urgent implementation, adoption lagged, talent departed, and security improved more slowly than expected. What they discovered—and what I've observed repeatedly in financial services—is that organizations can experience collective trauma that fundamentally alters how they respond to change. 🪤 The Post-Crisis Change Trap When institutions experience significant disruption, standard change management often fails. McKinsey's research shows companies applying standard OCM to traumatized workforces see only 23% transformation success, compared to 64% for those using trauma-informed approaches. ❌ Why Traditional OCM Fails After Crisis Hypervigilance: Organizations that have experienced crisis develop heightened threat sensitivity. Capital One employees reported spending time scanning for threats rather than innovating. Trust Erosion: After their breach, Capital One faced profound trust challenges—not just with customers, but internally as well. Employees questioned decisions they previously took for granted. Identity Disruption: The crisis challenged Capital One's self-perception as a technology leader with superior security. 💡 The Trauma-Informed Change Approach Capital One eventually reset their approach, following a different sequence: 1. Safety First (Before planning transformation) - Created psychological safety through transparent communication - Established consistent leadership presence - Acknowledged failures without scapegoating 2. Process the Experience (Before driving adoption) - Facilitated emotional-processing forums - Documented lessons without blame - Rebuilt institutional trust through consistent follow-through 3. Rebuild Capacity (Before expecting performance) - Restored core capabilities focused on team recovery - Invested in resilience support resources - Developed narrative incorporating the crisis 4. Transform (After rebuilding capacity) - Created new organizational identity incorporating the crisis - Shifted from compliance to values-based approach - Developed narrative of strength through adversity 5. Post-Crisis Growth - Built resilience from the experience - Established deeper stakeholder relationships - Transformed crisis into competitive advantage Only after these steps did Capital One successfully implement their changes, achieving 78% adoption—significantly higher than similar post-breach transformations. 🔮 The fundamental insight: Crisis recovery isn't just about returning to normal—organizations that address trauma can transform crisis into opportunity. Have you experienced transformation after organizational crisis? What trauma-informed approaches have you found effective? #CrisisRecovery #ChangeManagement #OrganizationalResilience

🚨 𝟲𝟬% 𝗼𝗳 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻𝘀 𝗙𝗔𝗜𝗟 𝗮𝗳𝘁𝗲𝗿 𝗣𝗘 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻. 𝗡𝗼𝘁 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝗼𝗳 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆. Because CFOs forget that spreadsheets don't resist change—people do. Your AP clerk isn't afraid of new software. She's afraid of becoming irrelevant. Your controller isn't resisting month-end acceleration. He's overwhelmed by expectations he doesn't understand. The 𝗔𝗗𝗞𝗔𝗥 framework is the tool that I recommend to use when integrating the finance/accounting for an acquisition. ✅ 𝗔𝗪𝗔𝗥𝗘𝗡𝗘𝗦𝗦: "Why must we change?" (Not just "the PE firm says so") ✅ 𝗗𝗘𝗦𝗜𝗥𝗘: "What's in it for me personally?" ✅ 𝗞𝗡𝗢𝗪𝗟𝗘𝗗𝗚𝗘: Role-specific skill building ✅ 𝗔𝗕𝗜𝗟𝗜𝗧𝗬: Tools and authority to actually perform ✅ 𝗥𝗘𝗜𝗡𝗙𝗢𝗥𝗖𝗘𝗠𝗘𝗡𝗧: Systems that sustain new behaviors One family manufacturer that I integrated into a PE portfolio: 15-day close to 5-day close in 6 months. Zero turnover. 𝗧𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲? 𝗧𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗽𝗲𝗼𝗽𝗹𝗲 𝗹𝗶𝗸𝗲 𝗵𝘂𝗺𝗮𝗻𝘀, 𝗻𝗼𝘁 𝗼𝗯𝘀𝘁𝗮𝗰𝗹𝗲𝘀. 𝗖𝗙𝗢𝘀 𝗮𝗻𝗱 𝗣𝗘 𝗽𝗮𝗿𝘁𝗻𝗲𝗿𝘀: 𝗬𝗼𝘂𝗿 𝗻𝗲𝘅𝘁 𝗱𝗲𝗮𝗹'𝘀 𝘀𝘂𝗰𝗰𝗲𝘀𝘀 𝗱𝗲𝗽𝗲𝗻𝗱𝘀 𝗺𝗼𝗿𝗲 𝗼𝗻 𝗰𝗵𝗮𝗻𝗴𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝘁𝗵𝗮𝗻 𝗱𝘂𝗲 𝗱𝗶𝗹𝗶𝗴𝗲𝗻𝗰𝗲. Full framework in article ⬇️ #PrivateEquity #CFO #FinanceTransformation #ChangeManagement

A common communications problem I see in organizations with low-trust cultures: 🔺 Executive team makes a major decision that will change the company's direction or structure, a key employee experience, or a core process/tool. 🚨 All employees are notified at the same time - including people leaders and managers (because "this is HIGHLY sensitive and we can't risk a leak!") ⁉️ Employees instantly turn to their managers: "What does this mean for me?" 🤷♀️ Managers have NO idea because they just found out too. 😣 Employees are anxious, managers are anxious AND frustrated (not to mentioned embarrassed for feeling out of the loop). 👎 Productivity drops, morale suffers, and intent to leave rises. Managers are either your culture's biggest pain point or biggest success factor. The difference is you - not them. The difference is how well you empower them to actively advocate for the company's direction and goals and set them up to successfully lead their teams through these moments. The difference is trust. Here's an alternative way that scenario can play out in a high-trust, high-functioning culture: 🔺 Executive team makes a major decision that will change the company's direction or structure, a key employee experience, or a core process/tool. 💡 Executive team meets with all people leaders and managers a day before the internal company announcement. They inform them of the decision; provide background context that may not be appropriate for a broader audience; share resources to help managers support employees and answer anticipated questions; and give them time to absorb the change themselves and prepare for their team's response. 🚨 All employees are notified and are immediately invited to a team meeting by their manager. ⁉️ Employees instantly turn to their managers: "What does this mean for me?" 🤷♀️ Managers reiterate key company talking points plus add context unique to the team that helps put the change in perspective. They share links and points of contact for additional questions. They provide clear next steps for the team on how they are going to implement the change. 😣 Employees are processing the change, but feel in control. Managers feel prepared and valuable and a part of the broader leadership team. They are invested in a successful outcome. 👍 Productivity holds steady. Trust and morale increase because people feel respected. Empowered managers are sturdy leaders. Better yet, by bringing your managers into the 'room', you increase their self-confidence and deepen their commitment to the company by enabling them to be good at their jobs. Win-win. Again and again. #Culture #LeadershipDevelopment #InternalCommunications #ManagerDevelopment #Trust #Transparency

Change initiatives too often focus on getting people to follow new rules or procedures, mistaking adherence for engagement. But in the fast-paced world of finance, where decisions drive millions (and billions) of dollars, leaders know the real lever for transformation lies beyond compliance—it’s about commitment. Here’s why: 🔹 Compliance is Surface-Level - When a team merely complies, they’re checking boxes without truly understanding or internalizing the why. Compliance may produce short-term shifts, but it doesn’t create the dynamic, agile teams that respond to market shifts intuitively and confidently. For finance organizations, this isn’t just a limitation; it’s a risk. 🔹 Commitment Unlocks Initiative - A committed team isn’t simply following orders; they’re anticipating needs, identifying opportunities, and taking ownership to ensure change isn’t a point-in-time effort but an evolving, lasting shift. In a project with a finance organization, we saw this firsthand. By decentralizing their FP&A function to improve efficiency, we empowered individual teams to shape their specific skills paths, aligning their professional growth with organizational goals. This strategic shift did more than streamline operations—it sparked a sense of ownership and investment, as team members weren’t just executing a new structure; they were co-architects of their future in the company. 🔹 Leaders as Storytellers - When finance leaders focus on the ‘why’ behind each strategic shift, helping their team see themselves in the vision, the result is a shared purpose. And shared purpose? That’s the bedrock of commitment. For one client, reframing a compliance-heavy regulatory change as an opportunity to lead by example in their sector transformed the narrative. Their people weren’t just “complying”—they were championing a cause. 🔹 The ROI of Buy-In - It’s tempting to prioritize compliance to meet deadlines and metrics, but in my experience, this leaves value on the table. Committed employees stick around, drive innovation, and advocate for the brand in ways no compliance handbook could script. They’re the differentiators that competitors notice. When employees are empowered to embrace change, they make it their own—and that’s when transformation sticks. In the world of finance, where the stakes are high, a commitment-led approach isn’t just better for morale; it’s a competitive advantage. Is your organization fostering commitment—or just expecting compliance? #ChangeManagement #Leadership #FinanceTransformation #CFOInsights #Skills #TalentManagement #Strategy