Why Human-Centered Change Management Approaches Fail - Addressing The Key Challenges

A human-centred organizational approach does not mean prioritizing people over profit; it means understanding that people are both the business and the source of profit. It is a strategic imperative that recognizes the crucial role of employees in sustaining positive business outcomes.

Global leaders are increasingly realizing that investing in employee well-being is a catalyst for increased profitability and sustained relevance in the digitalized global economy. Putting people at the heart of strategy has become even more imperative in the face of hybrid and virtual work.

When implemented correctly, a human-centred approach influences every key aspect of the organization, including leadership, decision-making, talent development and retention strategies, policies, processes, and overall structure.

However, we have observed that most organizations' change management attempts to transition to more human-centred approaches fail due to these four major reasons:

LACK OF TRUST:

Trust may initially seem non-essential, but it is not. A recent study by PwC showed that 50% of CEOs believe that the lack of trust is the main threat to their organizations. Leaders must understand that the core of a human-centred design lies in building connections between teams and the organization's goals.

When people trust their leaders and feel valued, they are motivated to go beyond meeting targets to exceeding them. This trust fosters collaboration, information sharing, and synergy creation, leading to higher levels of engagement across the organization. In return, this boosts employees' trust in their capabilities and enables them to expand their capacity.

Organizations need to think critically and find ways to build trust throughout departments, teams, and the workforce.

LITTLE TO NO INVESTMENT IN TALENT AND POTENTIAL DEVELOPMENT:

Leaders often fail to shift their investment from performance development to potential development. Performance development focuses solely on equipping employees with the necessary skills to excel at their jobs, while potential development involves continually upskilling and reskilling the workforce to adapt to the changing demands of the new economy.

Human-centred leaders believe that every employee's potential can be developed and harnessed given the right tools, empowerment, and a psychologically safe environment. They are forward-thinking and constantly strive to create a culture of recognition through their leadership. This is a culture where employees feel valued, respected, and empowered beyond contributing to the organization's profitability.

LACK OF EMPATHY:

Empathy is central to a human-centred approach as it plays a crucial role in building a loyal and committed workforce. Organizations must effectively communicate their business and leadership strategy and demonstrate how their approach will sustainably prioritize stakeholders while creating long-term value.

To achieve this, organizations must shift their focus to understanding what people do and why they do it by asking the right questions. This task requires a deep understanding of empathy for people and their circumstances, as a human-centred organizational approach will always prioritize the lives and experiences of employees.

Understanding the needs of the people directly involved in the services and products provided by organizations and basing strategies on this understanding is the future of effective organizational strategy.

UNDERESTIMATING THE RESISTANT NATURE OF ORGANISATIONAL CULTURE:

Many attempts to transition into a proper human-centred organizational design fail because leaders underestimate the resistant nature of organizational cultures. Transformation cannot occur solely by changing policies.

Transformation starts with people, particularly those who spearhead conversations around change. Organizations need to invest in educating leaders on the importance of a human-centred approach for long-term sustainable relevance. Leaders must unlearn and re-learn the principles of human centricity in leadership and put them into practice consistently, thereby modelling the desired human-centred culture throughout the organization.

??Embracing and embedding a human-centred approach into the fabric of the organization has a tangible impact and is key to remaining relevant as the future of work, workers, and workspaces continue to evolve.

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