Why Change is Hard: Navigating the Challenges of Change Management in a Multinational Organization
Dara O'Brolchain
AVP, Head of HR Digital Transformation @ Sutherland | Change Management
In today’s fast-paced, technology-driven world, businesses must continually evolve to stay competitive. For multinational organizations, this often means undertaking large-scale digital transformation programs, such as rolling out new platforms that replace old legacy systems. While this may seem like a straightforward task, the reality is far more complex. Change is hard, particularly when trying to unite a diverse workforce across various regions, cultures, and generational divides.
This article explores the reasons why change is so difficult in a multinational organization, and how organizations can navigate the challenges of managing change effectively in the face of different cultural expectations, generational mindsets, and long-standing traditions tied to legacy systems.
1. The Comfort of the Status Quo: Why Legacy Systems are Hard to Leave Behind
Legacy systems, despite their inefficiencies, offer a sense of stability that employees have grown accustomed to over the years. People naturally resist change because they fear the unknown, and these feelings are amplified when employees feel that the old system, while outdated, still gets the job done. The legacy system is often embedded in the daily routines of employees, who have developed a comfort level with it over time. This resistance to change can be even more pronounced when employees feel that the new platform introduces unnecessary complexity or disruption to their workflow.
In multinational organizations, this challenge is heightened by the scale of the change. When a new platform is rolled out globally, it affects not only a few employees but entire teams across multiple countries, each with their own working cultures, expectations, and beliefs of how work should be done. Convincing people to abandon a familiar system in favour of something new requires addressing not only their practical concerns but also their emotional attachments to the old way of doing things.
2. Cultural Differences: Eastern vs. Western Perspectives on Change
One of the most challenging aspects of managing change in a multinational organization is the inherent cultural diversity across regions. The approach to change is often deeply influenced by the cultural norms and values of a particular country or region.
Eastern Cultures: Respect for Authority and the Status Quo
In many Eastern cultures, such as India and the Philippines, there is often a strong respect for hierarchy and authority. In these cultures, employees tend to look to senior leadership for direction and guidance, and any significant change is usually met with caution until it is clearly endorsed by top management. There is also a greater emphasis on group harmony and consensus. As a result, employees in these regions may resist change if it threatens the established order or creates friction within teams.
Moreover, in cultures like those in India and the Philippines, employees may also place a high value on stability and job security. As such, rolling out a new platform may create anxiety about potential job disruptions or performance evaluations, particularly if employees are unsure how the new technology will affect their roles.
Western Cultures: Individualism and a Bias Toward Innovation
In contrast, in Western cultures, particularly in countries like the United States and those in the European Union, there is often a greater focus on individualism and a more dynamic approach to change. These cultures tend to embrace innovation and technological progress, viewing change as an opportunity for growth and improvement. Employees in Western countries may be more open to adopting new platforms, but this can also lead to challenges in managing expectations. If a new platform promises a “better way” but does not meet those expectations quickly, frustration can build, especially if employees are accustomed to working in an environment that encourages rapid innovation.
Despite these differences, one commonality in both Eastern and Western cultures is the tendency to resist change when it is perceived as imposed from above without clear benefits. Effective change management needs to recognize these cultural factors and tailor communication and support strategies accordingly.
3. Generational Differences: Bridging the Gap Between Gen Z, Millennials, Gen X, and Baby Boomers
In addition to cultural diversity, generational differences play a crucial role in how employees perceive and adapt to change. Each generation has its own unique relationship with technology, work, and authority, which can affect their response to new digital platforms.
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Generation Z (Born 1997–2012): Digital Natives but Reluctant to Change Systems
Gen Z, the youngest generation in the workforce, is often seen as “digital natives.” They have grown up with technology integrated into every aspect of their lives. While Gen Z employees are highly adaptable to new digital platforms, they may still struggle when these platforms are introduced within a rigid, hierarchical structure or when the system lacks the intuitive, user-friendly experience they expect. Gen Z is used to fast, seamless technology, and may resist platforms that feel clunky or outdated. Change is hard for them not because of their lack of comfort with technology, but because they have high expectations for ease of use and speed.
Millennials (Born 1981–1996): Open to Innovation but Sceptical of Overly Complex Systems
Millennials, who have seen the rise of digital technology in the workplace, are open to adopting new platforms but may be wary of overly complicated systems. They have a reputation for seeking balance in their work-life integration and are often keen on innovation but also on efficiency. For Millennials, change can feel burdensome if it does not clearly improve their productivity or work experience. The key challenge for organizations when rolling out new platforms for Millennials is to ensure the system offers clear value and does not add unnecessary layers of complexity.
Generation X (Born 1965–1980): Pragmatic Adopters with a Preference for Stability
Gen Xers, who grew up during the rise of personal computers and the internet, tend to be more pragmatic about technology. They are not as eager as Millennials or Gen Z to embrace every new digital trend, but they understand its importance in the workplace. However, they are often more resistant to drastic changes, especially when they have become comfortable with existing systems. For Gen X, the key to successful change management is clear communication about how the new platform will make their work easier, rather than simply emphasizing the technology for its own sake.
Baby Boomers (Born 1946–1964): Resistant to Change and Technologically Challenged
Baby Boomers, the oldest generation in today’s workforce, may find digital platforms particularly challenging. Having spent much of their careers working with traditional methods, Baby Boomers may view new systems as unnecessary or overwhelming. For them, training, support, and hands-on help are critical to overcoming their reluctance to change. Patience, clear instructions, and the ability to relate the new technology to their existing knowledge and skills are key factors in easing their adoption.
4. Strategies for Overcoming Resistance to Change
Successfully implementing a new platform in a multinational organization requires understanding and addressing these diverse challenges. The following strategies can help ease the transition:
Conclusion
Change is inherently difficult, especially when it involves rolling out new platforms in a multinational, multigenerational workforce. The challenge is not just about the technology itself, but about the diverse cultural backgrounds, generational perspectives, and established habits that shape how employees respond to new systems. Successful change management requires careful consideration of these factors, clear communication, and robust support systems. By addressing the specific needs of different cultural and generational groups, organizations can make the transition smoother and ensure that the digital transformation truly brings about the desired outcomes.
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