In order to stay ahead of new technological and economic developments, companies need to embrace change. According to research and advisory company Gartner, the average business has undertaken five major organizational changes in the past three years. A further 75 percent of those companies expect to pursue additional change initiatives in the coming three years. Show Organizational change is typically pursued because it’s believed the transition will enable a business to operate at a higher level—becoming more efficient, productive, innovative, and profitable. If the change is managed incorrectly, it can become a double-edged sword, leading to a loss of productivity and poor performance from employees. Gartner indicates that just 34 percent of all organizational change initiatives are considered a “clear success,” while 50 percent are deemed to be “clear failures.” A further 16 percent yield “mixed results.” Managers and leaders must understand their role in managing change. Here’s a look at the different types of organizational change, along with some tips you can use to handle the change management process more effectively. What is Organizational Change?Organizational change is the process by which a business alters key components of its strategy or operations. This may involve changes to company culture, essential technologies, organizational structure, or major initiatives and goals. Depending on the objectives you're trying to achieve, organizational change may be either continuous or intermittent. Organizational change is typically categorized into two types: Adaptive and transformational change. Adaptive changes are small, incremental modifications that an organization undertakes to evolve over time. They can be thought of as the fine-tuning of processes and business strategies. Transformational changes, on the other hand, are larger in scope and scale, and typically involve a radical shift in direction for the business. These changes are often the result of outside forces putting pressure on the company, such as the emergence of a new competitor. Tips for Managing Organizational ChangeBelow are five tips and strategies you can use to better manage change within your workplace. 1. Understand the Process of ChangeNo two change initiatives are the same. But the vast majority of those that are successful follow the steps of the change management process. All change processes have a set of starting conditions (Point A) and an endpoint (Point B). The change process is everything that happens between those two points. It involves multiple steps that are typically grouped into three stages: Preparation, implementation, and follow-through. Here's what happens during each phase:
2. Understand the Forces of ChangeTo effectively manage change, managers must first grasp why it’s necessary. Without doing so, it can be difficult for you to craft a plan that addresses root concerns and pressing questions, such as:
By understanding the precipitating factors that have made an organizational change necessary, you’ll be better suited to address those concerns. 3. Create a PlanOnce the motive for change is understood, you need to create a plan. This plan should broadly outline the reasons for change, define its scope, outline key stakeholders, establish a team, and provide a detailed roadmap of the steps that will be required to complete the project. Having a defined strategy in place makes it easier to communicate the change to your team members and monitor progress toward key milestones and goals. 4. CommunicateWhen it comes to guiding your business and employees through a period of significant change, clear and focused communication is one of the most powerful tools in your arsenal. Ultimately, you must be capable of communicating change to two very distinct audiences. The first consists of your employees and team members: These individuals need to understand the need for change, as well as how it will impact their job responsibilities. You must also recognize the importance of listening to their concerns so you can assuage any fears they may have. “Despite realizing that change is necessary, employees are often afraid of big changes in the organization, preferring the dissatisfaction of the status quo to the risks of a new reality,” said Harvard Business School Professor David Garvin in the online course Management Essentials. “Often, the most important thing a manager can do is not identify the need for change, but provoke the momentum to begin and maintain the change.” The second audience includes key stakeholders within the company—other members of management, the C-suite, and board members. If you’re the person proposing a change, it’s these individuals who need to be convinced it’s necessary. If they have initiated the change but charged you with overseeing the process, it’s these individuals whom you must regularly update on the status of the project. 5. Prepare for RoadblocksNo matter how thoroughly you prepare for change, everything is not always going to go according to plan. You need to be ready for a number of potential outcomes. By doing your best to anticipate roadblocks, you can take some of the mystery out of the equation. Empower your employees to modify their behavior by removing the obstacles that prevent them from working toward change. Once those hindrances are identified, even the most complex problems can be addressed and corrected. Learn How to Manage ChangeNobody is born with expertise in managing organizational change; it’s a skill that typically takes many years of hands-on experience to build. With this in mind, there are steps you can take to better prepare for the job. In addition to embracing as many opportunities as possible to flex your change management muscles, pursuing professional development opportunities, such as an online course, can be an excellent way to hone your skills and become a better manager. When evaluating programs, seek those which align with your personal and professional goals. For example, if you're interested in developing your change management skills, consider a course like Management Essentials, which delves into the topic as part of its curriculum. Do you want to improve your management skills? Explore our eight-week online course Management Essentials, and learn how you can spearhead initiatives that enable your organization to improve and innovate.
Organizations of all sizes are in a constant state of change now more than ever. External and internal factors include but aren’t limited to growth, lack of growth, economic cycles, emerging technologies, shifts in the competitive landscape, figuring out how to best lead this generational workforce, cultural gaps and communication challenges. One of the most important roles a leader has is to drive necessary change and evangelize its importance. Obtaining buy-in and protecting the company culture are critical and this can only be done with clear and consistent communication and follow-through. I’ve taken my companies through periods of change and it isn’t easy. I have definitely made mistakes along the way and applied those lessons learned in order to do it right the next time. Here are eight very important steps for helping the team accept and even help push change within an organization. 1 - State the Change Whether the change is perceived to be major or minor, the leaders must be able to clearly articulate what the change is all about, why it’s important and what the positive outcomes of the change will be. What does winning look like on the other side of the change? Change must be led from the top down. Senior leaders must get all the managers on the same page prior to communicating the message to the rest of the company. That way, the other team leaders in the company are prepared to answer questions and concerns as needed. 2 - Listen to Feedback The team’s voice must be heard. And chances are, many people on the team have most likely been begging for change and know what is needed. Getting their feedback will assist in smooth transitions and gaining their buy-in. There are varying forms of change that occur in organizations. The first type needs no explanation and everyone understands the need and why it’s happening. The next type is similar in that the team generally understands the need, but the “why” requires more explanation. Other types of change are either misinterpreted or have an adverse effect. Gaining feedback throughout the change process will hold everyone accountable and help maintain alignment. 3 - Acknowledge the Feedback Collecting feedback from the team is important but even more important is acknowledging that feedback. I recommend obtaining team feedback during the beginning, middle and end of the change process. The after-action-review is important for the learning process. Don’t leave that part out! This doesn’t have to be a formal process. Getting feedback during casual conversation is fine. But I do suggest having an anonymous survey at some point during times of change. Employees will feel more comfortable being transparent. The last step is the most important. The leadership team must reflect on the feedback, tell the team what they are “hearing” from the feedback, and then some kind of action must be taken. 4 - Use Emotional Intelligence Leaders must lead by example in this regard. Change can be scary for the team and showing compassion and empathy are important. Leaders must communicate clearly, show discipline and be transparent. Emotional intelligence is not a soft-side leadership strategy as it may sometimes be perceived. Leaders that actively practice improving their emotional intelligence are better equipped to drive positive change and guide the team through the inevitable obstacles. 5 - Explain the Why Everyone wants to know the purpose behind organizational change. In my last company, we decided that we needed a better project management solution and better data as to where people were spending their time. This would lead to improved financial decisions and efficiencies. So we rolled out new software and a time-tracking tool. Holy hell! Let’s just say that this threw everyone for a loop. It became very apparent that we needed to be doing a better job explaining the “why.” Once the team understood the reasoning behind this change and that the goal was to improve their work balance, the revolt slowly subsided. 6 - Define Clear Roles Defining the roles and decision-makers is very important. Everyone with a role in driving change must understand who is accountable, responsible and informed. Specific team members must own certain aspects of the change process. Once rolls are assigned, make sure that milestones are set, regular check-ins scheduled and a rhythm of communication established. 7 - Provide Training Most of the time, training will be required. Whether it’s a new system, process, software or an overhaul in customer service, the team needs to be well-trained for the changes to not only stick, but to be effective. Do not forget this part. And yes, time and budget have to be carved out. This is where companies fail much of the time. Leaders have to provide proper time and resources during the roll out period. 8 - Reward Acceptance Some team members will take well to change and proactively aid in its acceptance while others will be slow to adopt. Have a plan in place to publicly reward those that make the time and effort to embrace change. Especially those that do it with a good attitude and get other team members on board. Change is inevitable. It’s much less painful doing it right the first time. Following these steps will help increase the speed of change and keep morale high during the process. |