Lessons from 20 Years in Change Management: Balancing Major Overhauls and Incremental Improvements

The Critical Role of Change Management in Transformations: From "Big Bang" to Incremental Change

Lean Sigma methodologies combined with the rapid deployment of intuitive and flexible technologies have become key tools for enhancing efficiency and competitiveness. While these tools are powerful, they represent just the first steps in a successful transformation journey. The third, and often most critical, component is effective business change management.

Gaining Stakeholder Buy-In for Lasting Success

Strategic business initiatives aligned with the medium term goals are crucial to continually evolve the organisation to adapt and grow. However, without the support and engagement of stakeholders, these changes may not achieve their full potential or endure over time. From my experience leading numerous improvement programs, gaining stakeholder buy in is crucial to ensure that the key initiatives are selected, and improvements are not only implemented but also owned and sustained by all involved.

Stakeholders including employees, managers, directors, customers, and suppliers need to understand the benefits of the changes to the business and how they will impact their roles. Involving them early in the process, addressing their concerns, and incorporating their feedback fosters a sense of ownership and commitment to the transformation. In multiple programs I've worked on, actively engaging with "silent dissenters" has been key to overcoming resistance at a later date.

Big Bang Change vs. Incremental Change: Understanding the Difference

When embarking on a transformation program, organisations often face a choice between two core approaches: big bang change and incremental change.

• Big Bang Change: This approach involves implementing significant changes across the organisation all at once. While it can deliver swift results, it carries substantial risks. It can be highly disruptive, overwhelming for staff, and difficult to manage effectively. The sheer scale of change can lead to resistance, errors, and a lack of control over outcomes. It also distracts the business away from its core business as usual tasks and its delivery of customer focused services. Examples include full ERP systems replacement programmes, I know people will argue that this can also be incremental, but from my experience the 1st phase typically involves core processes of the business from finance, stock, production, invoicing, sales etc? ?
• Incremental Change: In contrast, incremental change focuses on making gradual improvements over time. By implementing changes step by step, businesses can better manage risks, learn from each phase, and adjust their approach as needed. This method reduces disruption, allows for greater adaptability, and typically achieves higher acceptance among employees. It takes longer and the business results are also incremental. Examples include digitisation programmes across the business but again in some cases if the business has a burning platform, then it could require a big bang change.

Having worked in large, complex corporate organisations leading business integrations, I've found that the key objective is often about transforming fast, not necessarily driving business improvements. Typically, the main goal of such programs is to achieve integration as efficiently as possible to allow the business to return to a "business as usual" (BAU) state.

All programs are different, and though speed is often prioritised, it doesn't always come at the expense of improvement. For example, a larger organisation integrating a smaller business can achieve both.

In contrast, my experience in driving change and professionalising businesses within private equity owned SMEs has shown that treating these initiatives as comprehensive business improvement programs yields the best results. While you may still encounter issues that are fundamentally broken and need fixing fast, adopting a holistic improvement approach makes a significant difference, especially since you're also educating and transforming the business culture as part of the program. Typically, change resources, budget, and IT systems are limited, so picking the vital few initiatives is key to avoiding overwhelming the business.

Starting with a Single Process: The Power of Pilots

For businesses entering a transformation program, starting with a single process can be a strategic move. Piloting allows you to:

• Demonstrate Success: Proving the effectiveness of new tools and processes on a small scale builds confidence among stakeholders.
• Learn and Adapt: Identifying and resolving issues in a controlled environment ensures smoother implementation when scaling up.
• Build Momentum: Success in one area can generate enthusiasm and demand for similar improvements elsewhere in the organisation.

By focusing on a specific process, you can fine-tune your approach before applying it more broadly, reducing risks and improving outcomes.

From Top-Down to Bottom-Up: Empowering Your Team

Starting small can move the transformation from a top-down initiative, where decisions are made at the executive level, to a bottom-up, demand-driven program. It's essential that the business retains control of the sign-off on all initiatives to maintain alignment with business goals, resource allocation, and budget management.

• Employee Empowerment: Those who work with the processes daily become knowledge experts. Their insights drive practical solutions that are more likely to be effective and sustainable.
• Increased Ownership: When employees are involved in the change process, they are more invested in its success and more likely to embrace new ways of working.
• Embedded Solutions: Changes become integrated into the organisational culture rather than being seen as temporary mandates from above.

This approach fosters an environment where continuous improvement is part of everyday work, leading to long-term benefits. One note of caution, following any business change embedding the new ways of working is not a onetime event. You need to establish measurement and control to monitor the change until it becomes “just the way we do things around here”.

Conclusion: Navigating Transformation with Effective Change Management

The ability to adapt and improve is paramount to remaining relevant, profitable and to grow. While Lean Sigma methodologies and advanced technologies provide powerful tools for business change, effective change management ensures these improvements are realised and sustained. Ultimately, the choice between big bang and incremental change strategies depends on the organisation's specific context and goals. Effective change management often involves a blend of both approaches, leveraging the immediate impact of significant changes where necessary while also employing incremental changes to ensure sustainability and employee buy-in.

By understanding and strategically applying both methodologies, organisations can navigate the complexities of transformation more effectively. Timing is crucial; while changes should meet the expectations set by your customers and competitors speed, they must also align with your organisation's internal capacity to implement them effectively.

And one last thing I continually see is that no programme remains fixed. It evolves as you move down the transformation timeline and gain more knowledge and understanding. A strategy adopted at the beginning might need changing as you move toward your end goal.

Change is constantly evolving and adapting, the way we approach driving change needs to be the same, not a fixed approach.