Change is often hard for people to accept and to go through, although it doesn't always have to be. A side effect of planned or unplanned change is disruption to people, processes, systems, projects and organisations. In today's post we look at why change management is needed and why there is magic in managing change as compared to letting it happen organically, chaotically or without guidance.
Change is a Pain!
There's cost associated with staying stagnant throughout life and business, and equally there's cost associated if change isn't managed well. These costs can be seen in lost productivity, resistance by people or managers, opportunity cost, inability to fully realise plans or track benefits, rework, wastage and hidden costs that were not part of the original plan. Communications and training are common levers that you can pull to educate, encourage or inform, so they do help, but they may just touch the surface.
What Else is Needed?
Transformational change requires strong leadership to inspire sustainability and limit disruption. For more, have a look at Embracing a Change Leadership Mindset
True change management mitigates an array of impacts. To be effective, change management needs to examine the current and future state. Have a look at impacts in more depth here Mitigate Change Impacts and Minimise Disruption
The difference between now - the current state - and then - the desired future state - is the change impact on people, systems, processes and organisational models. Analysing the impacts helps to understand the risks, rebalance the operating model and ensure customer value is aligned.
Sound change management practice develops a readiness strategy that drives specific change activities to harmonise with a cohesive program of work and project management plans. This puts a structured approach in the hands of leaders to deliver change.
People drive change and those who are impacted by change may be experiencing unexpected emotions. Given that emotions drive behaviour, change management is needed to understand the likely people impacts and mitigate concerns before resistance to change becomes unmanageable.
Change Management Delivers
Without change management, organisational change efforts can go off track, losing sight of outcomes, or suffering from delays and the inability to deliver the information that makes a difference.
Change management skills and experience, combined with a sound framework will manage the process of how people and organisations experience the change, learn what is required to succeed in the future state, and deliver the skills to do so.
The value of deep change management skill will be realised in tangible ways like templates, structures, governance, methodology, tools, advice, delivery and training programs; and in less tangible ways like improved awareness, easier progress towards milestones, better participation, higher engagement levels, anticipation of solutions, and lower instances of resistance.
Why Change Management is Needed
Change management is essential to overcome the hurdles and barriers to change acceptance, to manage the involvement of people in the change, and to transition them from the current state to the future ways of working.
Effective change management delivers smoother transitions by helping to ensure that changes are implemented without significant disruptions. Maintaining employee engagement and morale during transitions assists with maintaining productivity. Preparing employees for changes means helping them understand and commit to new processes or structures. This reduces resistance and increases acceptance.
Further, change management can mitigate risks associated with changes, such as resource-related risks, mis-communications, public perception, or project delays. It helps organisations improve and optimise their business processes, making them more efficient and effective.
Through techniques such as operating model design or customer value mapping, change management enables organisations to better understand and predict changing customer needs, allowing them to stay competitive; and it strengthens an organisation’s adaptability mechanisms, making it more resilient to future changes.
A 2022 study by EY and the University of Oxford found that the process of organising change efforts around key drivers of employee adoption was predicted to increase overall success of initiatives to 73%. Even if change management was not "high-performing", an increase in likely success of 51% could be achieved. This implies that while excellent change management will yield above average adoption, the application of any change management at all will yield 51% more adoption than would otherwise have been achieved. Read more in The Case for Change Management.
Although frequently seen as an overhead, change management actually saves time and resources by preventing costly mistakes and ensuring that changes are implemented correctly the first time. Overall, change management is critical for the successful adoption and usage of changes within an organisation, ensuring that transitions are beneficial rather than disruptive.
The application of change management practice is specific to your needs and those of your organisation. If you have a change you’re dealing with that you’d like to discuss, book Agencia Change for a free consultation.
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