5 ways change management increases the 'health' of your organisation

Change, change, change.

It seems everyone is saying we must do it. Richard Branson, one of the most vocal protagonists for embracing change, extols the virtues of “adapting today, to be successful tomorrow". Peruse the business section of any bookstore and you’ll find shelves heaving with titles such as Adapt or Die, Leading Change, and copious variations of ‘managing change’. The good Sir Richard Branson is not alone. Academics, entrepreneurs, heck – even politicians, seem to be neck deep in the throes of change hysteria.

 "If you focus on results, you will never change. If you focus on change, you will get results" Jack Dixon

We know the benefits of changing are significant, such as the ability to respond to shifting consumer needs, pre-empting the competition and securing the first-mover advantage in emerging markets.

But when it comes to bringing about widespread organisational change impacting everyone from the C-suite to the lowest levels, what part does a dedicated and consistent change management strategy play in the success or failure of organisational change?

Let us first define change management. For the purposes of this post, it’s the discipline that shapes how we help prepare, equip and support individuals to adopt a change to the status quo. 

With the break-neck speed technology progresses at, it seems there’s a new upgrade to install, system to learn or application being built every other day. Too often, change management is brought in as a ‘last resort’, when a project has gone pear-shaped (or is about to go live in a matter of weeks!) 

Ask yourself, what percentage of your project’s benefits depend on people doing something differently? 80%? 100%?

Imagine you implemented the latest and greatest application that saves millions of dollars a year. It would be great… if only employees weren’t refusing to use it. The lack of engagement and involvement has caused rumours to run rife the new system will result in - cue drum roll - lay offs! You can have the best tool in the world. But if success hinges on altering people’s behaviour, then the change (or your project) will fall flat on its tush. 

Did you know effective application of change management increases the organisational change success rate to as high as 96%?

Projects with excellent change management effectiveness are 6 times more likely to meet or exceed their objectives.

The risks of not introducing change management early are significant. Organisations can be crippled with declining productivity, escalating passive resistance, present ‘absenteeism’, sabotage, high turnover and deteriorating morale. Not to mention an eroding corporate reputation and tarnished brand image.

The people-delivered components of ROI is defined as speed of adoption (how quickly employees get on board), ultimate utilisation (how many get on board vs finding workarounds) and proficiency (employee effectiveness once they make the transition). Do the sums and you’ll be surprised at how quickly costs escalate should any of these variables fall by the way side. By investing in change management sooner rather than later, you are protecting your investment.

Five ways change management acts as a catalyst for a 'healthy' organisation are:

 1              Builds organisational resilience 

All improvement involves change, however not all changes bring improvement. When change is effectively managed, the organisation builds a history of success. Success breeds success…. And with that comes an increased focus on continuous improvement through regular observation, analysis and assessment of processes and structures. Proactively identifying ways to work smarter, not harder, will become part of the cultural fabric of the organisation.

2              Contributes to the bottom line

Strategic analysis is a critical component of effective change management. Elements such as the state of the organisation, its structures, systems, policies and people come under the microscope and are mercilessly analysed and assessed for congruence with the desired future state. This paves the way to identify opportunities to streamline, centralise and condense. Translation: savings of time and money, which in turn reduces frustrations and boosts morale. 

3              Supports collaboration 

Implementing technology tools that enable innovation, efficiency and productivity has become stock standard in today’s hyper-connected environment. Mobility and the cloud are key examples. Change management sets employees up for success, equipping them with the know-how, information and ability to leverage these tools effectively. Collaboration builds commitment to work together to achieve the same outcomes. It seamlessly engages employees of different backgrounds, roles and functions. 

4              Positively impacts relationships

Relationships with partners, suppliers, clients, vendors, employees. They are interconnected and will be affected by any changes within an organisation. When changes are perceived as positive, the flow on effects will be too. Developing a reputation as a change-capable organisation (not changing for change’s sake, but to deliver real value) will entice stakeholders to go out of their way to engage with you. Win-win. 

"All is connected ... no one thing can change by itself." Paul Hawkin

5              ‘Plans are nothing, planning is everything’ 

So said D Eisenhower, the sage 34th President of the United States. And I wholeheartedly agree with him. Thorough and calculated planning, a cornerstone of effective change management, will help mitigate risk, prevent cost blow outs and missed deadlines. Planning puts you, the project, and the organisation in an optimal position to be ‘change-ready’. Clarity and transparency around the necessity of change and what it takes to achieve it will ensure all involved not only know the part they play, but how it will benefit them and the organisation. 

People are often naturally averse to change. When the people-side of change is managed effectively, objectives are met and organisational growth becomes a reality.

Clear as mud? Effective change management = benefits realisation and value creation. 

Don’t risk leaving change up to chance…

 Like what you read? Here's some more of my random musings...

• 5 types of infuriating stakeholders and how to deal with them
• Leveraging the ambivert advantage
• 8 reasons why being a change manager makes you mentally tough

References:

PROSCI, Best Practices in Change Management – 2014 Edition