Adapting to new market conditions can be as difficult for workers as it is for their companies. Svetlana Tolmocheva, general director of consulting firm DBM Russia, explains that in times of change, today’s corporate stewards must make sure everyone is on board and moving in the same direction.

Businesses have to adjust their priorities every time the market shifts. This may mean mergers, acquisitions, downsizing or even explosive growth. But whatever the adjustment, employees will often experience a period of great uncertainty, which can affect company performance.

This uncertainty is often well warranted. According to some statistical studies, nearly half of all announced mergers fail, and a similar proportion of all completed acquisitions are eventually divested. For this reason, corporate leadership should be aware of the concerns such changes bring to the workplace and ensure that the transition is as smooth as possible.

One way of doing this, according to Jeffrey A. Schmidt, a managing director of Towers Perrin and leader of the firm’s general management consulting group, is to be mindful of the following pitfalls, or what he calls The Seven Deadly Sins:

• Turmoil: The easiest way to create turmoil in the office is for a business to shift priorities without a clear strategy or well-defined plan. Employees will derive comfort and certainty from knowing where the company is headed.

• Alienation: Changes in corporate structures often mean hiring and firing; moreover, mergers demand the fusion of two different corporate cultures. Make sure that new and old employees are on the same wavelength. Take the initiative to bridge whatever gaps there are between various corporate work habits.

• Punishment: A quick change in direction often comes with shortsighted rewards — and punishments. These kinds of dramatic incentives and penalties can create a negative work environment and hamper long-term goals.

• Dissolution: In times of change, key talents will depart for greener pastures. Try to keep them on board.

• Dissuasion: Avoid blatant lack of attention to morale, and announce long-term goals.

• Disappointment: Try to meet established goals. Failing to deliver on announced objectives can lead to disappointment and compromise productivity.

• Chaos: Expect a degree of chaos for the first 100 days. This may include declines in production, sales, customer service and net income. Farsighted and surefooted leadership are invaluable during times of change.

If corporate change is not handled well, employee commitment may falter. Even worse, in a world of fierce competition, a business may lose important opportunities. Take a look at the three-phased breakdown of organizational change in the graph on this page, developed by DBM over the years as a result of its international experience. It outlines typical patterns in staff reaction to organizational change and is not meant to be a hard and fast rule.

Let’s hope it will help prepare you for the hard road ahead.

The first phase, labeled "Ending," reflects a downward plunge of emotion. In many instances, people in this phase may be experiencing denial, fear, anger, frustration or sadness at the loss of the previous business arrangement. But this is also a period when employees begin to sort out the future and reconcile themselves to it.

The second stage is called "Exploration," which leads to a process of reorientation. Change forces people to adapt. During this phase, employees begin to solve some of the transition’s problems; they learn how to bridge gaps, and develop new skills and goals. This is the time when people begin accepting what has happened and become committed to the future.

This phase leads into the final period, "New Beginnings," a time of recommitment. During this phase, employees not only gain acceptance, but hope. This is a time when people integrate what works and discard what doesn’t. While skepticism and impatience may still linger, this is when enthusiasm about the future begins to gain momentum.

To sum up, I would like to point out that change comes with both positive and negative aspects. This idea is perhaps best expressed in the Chinese system of writing. The Chinese character for crisis is a combination of two characters: the character for risk and the character for opportunity. This reflects an underlying view that any crisis can potentially be damaging, but also a source of benefit and opportunity.