What ARC’s biggest pivot taught me about leading change
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By Adi
Solution Architect and Founder of ARC
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I still remember the confused look on everyone's faces when I made the announcement
"ARC has to shift from doing run-of-the-mill training programs and calendar workshops to becoming a consulting firm that practices deep Organisation Development and Leadership Development."
It was the summer of April 2018, the six of us had gathered for ARC 2.0 Strategy Meet- a process of reinvention that we follow every 4 years.
Conducting generic programs through nominations had become the norm of the industry. L&D professionals filled their calendars with as many competency based workshops one could think of- with the 'hope' of bringing in some positive change for the organisation.
We were good at this work. And the volumes were high- sometimes delivering 70-80 man days of work in a month. Low effort, high repeatability, no customisation- it made sheer business sense.
But over time, this work made us feel like performers and not change makers- because our clients would often not get the business results they were looking for.
During the strategy meet ARC 2.0, we left our comfort zone and made a bold choice. To become a full fledged OD Consulting firm.
Was it a good choice? Only time would tell.
Cut to, March 2020, we just started to get recognised for our consulting work after 2 years of struggle to reposition ourselves. But then the COVID pandemic hit in.
I still remember the day when the lock down was announced.
It felt like we had hit a bad patch of road just as our cycle got stable.
Soon we realised it was more than a bad road.
It was a dead end.
Our inbox was full with contracts getting cancelled due to "environmental factors", "act of God", "unforeseen circumstances".
Five quarters later, it was 11:34 PM on the 28th of August 2021 when I was sitting there hopeless. We were bankrupt, with massive amounts of loans and no money. I had drafted a mail that I was about to send to all the people who worked for ARC saying we were shutting shop.
No words can ever describe that moment and it is still etched in my soul.
But universe has its own ways to help when you expect it the least. An unexpected Income Tax refund got credited before midnight. The money was just sufficient to honour every penny of our salary.
It was a message - it was rebirth. Internally we made a solemn commitment to emerge from this - bigger, stronger and more meaningfully.
Sometimes we change ourselves, sometimes the environment forces us to change.
(More on this below)
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In today's newsletter we'll specifically cover:
- The formula for change
- How to identify the right time for change
- What can one make of the resistance that comes with change
Let's get into it.
The Formula for Change
The opposite force to change is resistance, and when you talk of one the other automatically creeps in. So, this fromula breaks down how one overcomes resistance in any system. But mind you, not all resistance is bad.
D x V x F > R
Where:
- D = Dissatisfaction with the current state
- V = Vision of a desirable future
- F = First steps toward that vision
- R = Resistance to change
This is a classic OD heuristic, originally attributed by Beckhard and Harris (1977). It explains the condition under which change will overcome resistance.
This formula can be applied in an organisations of all sizes, teams and even individuals.
Dissatisfaction (D)
Change begins when people feel uncomfortable with the way things are, the status quo. And if the current situation feels "good enough," motivation to move is low.
Each person's perception about their current reality also differs.
Eg: It could take the survival of a heart attack for a person to start taking care of their body while for someone a few kgs on the weighing scale is a good enough motivation.
OD Insight: As leaders, when applying this in your organisations- create awareness of the pain of “no change” through data, stories, or reflective exercises. Highlight the cost of not doing.
That night in 2021, dissatisfaction was felt in it's entirety. It was the pit in my stomach that said- this can’t be it.
And this is how you identify the right time for change.
Vision (V)
A compelling vision provides direction and emotional energy. It answers: “Where are we going?”
It must be concrete enough to be imaginable, yet inspiring enough to be desirable. It is future oriented
Eg: We want to become the most recommended OD firm by delivering excellence every single time.
OD Insight: People don’t resist change; they resist being changed. A vision that shows them how they are contributing to it- brings in ownership.
First Steps (F)
Even if D and V exist, without a clear path forward, people feel stuck or anxious.
First steps make the future actionable.
Eg: Next week, we’ll launch the new CRM with one region and review learnings.
OD Insight: Start small. Visible progress reduces uncertainty.
Resistance (R)
Now coming to the most spoken of element- resistance. Resistance is not always a sign of not having a growth mindset, bad behaviour or rigidity - it's data.
When people 'resist,' they’re often trying to preserve something valuable- their competence, belonging, meaning, or history. And quite often it happens at an unconscious level.
Eg: Employees might resist automation not because they hate technology, but because they fear loss of purpose or status. Because every yes is a no to something else.
OD Insight: Instead of fighting resistance, explore it, be curious on where it is coming from. What's the unsaid worry the person has.
Change happens when the product of dissatisfaction, vision, and first steps outweigh resistance.
If any one of D, V, or F is zero the equation collapses.
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Seasons passed, the virus came and went.
By May 2022, we gathered again, this time for ARC 3.0 Strategy Meet
But something was different. OD consulting was not something that we just spoke of, but now we were practicing it on ourselves.
Leading up to the Strategy meet, Tanya, our researcher turned the lens inward. Exploring culture, capability, technology, wellbeing, and prosperity.
We shed old patterns of working and kept what gave us meaning: our values, our purpose, and our sense of why we exist.
By the end of 2022, we had recovered from the Covid impact, cleared our debts, and rebuilt a 25-member team that believed not just in what ARC did, but in how we did it.
What in hindsight felt like a turning point, was a series of small, deliberate first steps. Each guided by a shared dissatisfaction with “good enough,” a vision of who we wanted to become, and the courage to take action despite uncertainty.
The formula had come alive
D × V × F had quietly outweighed R.
And yet, change hasn’t stopped.
Technology moves faster than our ability to absorb it.
Every time we think we’ve “frozen” into a new way of being, something new arrives to unfreeze us again.
That’s where we are now- learning to live with a kind of permanent fluidity.
Next time, I’ll talk about what that means and why in today’s world, change doesn’t always stick the way it used to.
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All of us are made of stories, share yours with me where you navigated change - I would love to know.
Until next time,
Adapting to change,
Adi
If you enjoyed reading this newsletter, there is a high chance that we'll enjoy working together even more.
And by the way, I'm also happy to just nerd about Organisation Development or Applied Behavioural Science without any sales pleasure.
So feel free, hit 'reply' to this email :)
Let's talk soon.
Adi