Not too long ago, ‘change’ was predominantly linked to technological breakthroughs and process optimizations. Companies were driven to adopt new technologies and methodologies to stay ahead of the competition and meet the growing demands of consumers. The focus was on efficiency, productivity, and achieving higher profits through innovation. Terms like ‘digital transformation’ and ‘disruption’ frequently dominated boardroom discussions and industry conferences.
It has been that the focus was mostly on technology and process. These were considered the ‘hard’ levers that can be pulled to gain significant business improvements. Companies have been spending big on digitizing their business to save costs and investing in streamlining processes as well.
However, the narrative has shifted.
While technology continues to advance at an unprecedented pace, ‘change’ has taken on a more profound and holistic meaning. Today, companies and people, in general, are recognizing that the ability to adapt, evolve, and respond to the world’s myriad challenges is the true essence of progress.
One reason ‘change’ has become a prevailing buzzword is its resonance with a broader audience. Unlike technical jargon, it connects with people on a more personal level, emphasizing that change is not just about adopting new tools and strategies, but about embracing growth and personal development. It speaks to the capacity of individuals to navigate uncertainties, adjust their mindset, and embrace continuous learning.
Moreover, an increasing percentage of companies are aware that their success hinges on the collective ability of their employees to adapt and remain agile. Leaders now recognize that fostering a culture of change and learning is crucial for attracting and retaining talent, boosting employee morale, and nurturing innovation.
Looking around us, the word ‘change’ is everywhere. Not only are people a lot more comfortable talking about change, but there is also a general acknowledgment of change as an overt occurrence.
Advertising and Slogans: Embracing the Spirit of Change
Companies are also quick to adopt the word ‘change’ in their jargon. Here are some examples.
Cisco “Changing the Way We Work, Live, Play, and Learn”
Cisco, a multinational technology company, explicitly uses the word ‘change’ in its advertising and philosophy. The slogan “Changing the Way We Work, Live, Play, and Learn” highlights Cisco’s focus on transforming various aspects of modern life through their technological solutions.
2. Accenture – “Let there be change”
Accenture, a global consulting and professional services firm, uses the phrase “Let there be change” in its advertisements and marketing materials. This tagline reflects the company’s focus on driving transformative change for its clients and within the industries it serves.
3. T-Mobile – “Change starts now”
This encapsulates the company’s commitment to driving transformation and initiating positive changes in the telecommunications industry. The slogan suggests a sense of urgency and empowerment, encouraging customers to take action and embrace the benefits of a new era in mobile communication.
4. PwC – “Solving for global change starts with you”
This tagline conveys the idea that PwC believes individuals have the power to drive positive change on a global scale. It encourages people to take action and play an active role in addressing global challenges and making a difference. By emphasizing that “you” are the starting point for solving global change, PwC highlights the importance of individual responsibility, innovation, and collaboration in creating a more sustainable and equitable world.
5. University of Technology Sydney “Think. Change. Do.”
This represents UTS’s commitment to fostering a transformative learning experience that prepares its students to be active contributors to society and catalysts for positive change. However, please note that taglines can be updated or changed over time, so it’s a good idea to verify the most current information from UTS’s official sources.
The prevalence of ‘change’ in advertising and slogans reflects companies’ desire to connect with their audiences on a deeper level. By evoking the spirit of change, these companies emphasize their commitment to innovation, customer-centricity, and positive societal impact. They appeal to consumers who seek purpose-driven brands and are eager to embrace progress and sustainability.
Change as a Catalyst for Resilience
In an ever-changing world, adaptability is synonymous with resilience. Companies that can quickly adjust to market shifts, economic downturns, and unforeseen challenges are more likely to thrive. ‘Change’ has thus become the rallying cry for building organizations that are not only successful but also capable of weathering storms and bouncing back from setbacks.
What this means for change practitioners
Change practitioners are in an excellent position to help organisations to shift their change capability and deliver on business improvement objectives. Change is increasingly acknowledged across organisations as a critical competency. The focus on change is there and change practitioners should use this to spearhead the momentum.
What next?
To take things to the next level, change practitioners must complement the upscaling of digitization and AI in organisations by augmenting the same in their work. This means incorporating more machine learning and AI, more digitization, and greater usage of data.
Change practitioners should ensure data is a core part of their practice and a foundational way of formulating change approaches and recommendations to their business stakeholders. Business leaders will increasingly leverage data across all business facets in business management, enabled by digital solutions. In a similar manner, change practitioners must also leverage digital solutions to automate and increase the effectiveness of change work.
Within an increasingly complex change environment, change practitioners should be well-versed in collecting and analysing data and generating data insights, again leveraging digital solutions. With the promise of AI and machine learning, there is already plenty of current opportunities to improve the effectiveness of change work, today. The uptake of this is up to each change practitioner.
The rise of ‘change’ as a popular buzzword reflects the transformative times we live in. As technology continues to shape the world around us, it is the capability of human beings to adapt and evolve that has taken center stage. From technological advancements to human adaptability, ‘change’ has transcended industries and become a part of our collective consciousness. For change practitioners, this is an opportune time to use this momentum to ramp up their own adoption of the digitization of change work and use this to improve the effectiveness of change.
Change management professionals often struggle with proving the worth of their services and why they are needed. There are certainly plenty of reasons why change management professionals are required and most experienced project managers and senior leaders would acknowledge this. However, for the less mature organisations that may not have had effective change management experts leading initiatives, the rationale on the additional value of change management may be less clear.
When we look across different project members and project teams, it is easy to argue that without developers, the technical project cannot progress. Without business analysts, we cannot understand and flesh out the core business steps required in the initiative. And of course, we definitely need a project manager for a project. But, what’s the justification for a change manager? Many projects have other project or business representatives do the change work instead.
As an attempt to justify in a very direct way, the value of change management, many resort to ROI calculations and aim toward higher ROI. This ROI of change management may seem like a great way to convey and show in a very direct and financial way, the value of change management towards project success. After all, we use ROI for calculating projects, why not use the same for change management as well to value the people side of change?
There are plenty of articles on how to best calculate change management ROI. Here are a couple:
1. PROSCI
Prosci has a good, clear way of calculating change management ROI within a project (though it doesn’t take into account speed of adoption). You simply evaluate to what extent employee adoption is important to the project. Then you take the overall expected project benefits and deduct the part of the expected benefits if there was no adoption. This is termed “people side benefit contribution”.
People Side Benefit Contribution = Expected Project Benefits – Expected Project Benefits (if adoption and usage = 0)
People Side Benefit Coefficient = People Side Benefit Contribution / Expected Project Benefits
2. Rightpoint
Rightpoint has a variation to this calculation. They have added ELV (Employee Lifetime Value) to the calculation.
Using ROI may be useful when the cost of the initiative is the critical focus for the organisation for its strategic investment. However, it is not the only way to convey the overall value of successful change management. In addition, the ROI method limits the value of change management to focus on the cost invested versus the value created. Also, this type of calculation limits the value of change to a project by project perspective.
So, how else do we show the direct financial value of change management? Let’s look to research. It turns out there are plenty of research examples. Here are some:
McKinsey & Company. (2016). The people power of transformations. This study found that transformation initiatives are 5.8 times more successful if CEOs communicate a compelling change story, and 6.3 times more successful when leaders share messages about change efforts with the rest of the organization. Link here.
Korn Ferry. (2018). Engaging hearts and minds: Preparing for a changing world. This study found that calls out change as a key trend found that companies with high levels of employee engagement had 4.5 times higher revenue growth compared to companies with low levels of engagement, noting that all companies are undergoing change. Link here.
IBM. (2016). Making change work … while the world keeps changing. This study found that 76% of successful projects include change management activities at the beginning of their overall project plans, which is 33% more than less successful projects. Link here.
IBM. (2015) Why a business case for change management. The article references a survey carried out in 2010 where companies that apply a value (benefit) realization approach (of which change management is a core component) complete projects at least twice as quickly and under budget by a factor of at least 1.9 times, Compared to those that don’t. Link here.
Towers Watson. (2013). Change and communication ROI. Organizations with highly effective communication and change management practices are more than twice as likely to significantly outperform their peers in total shareholder returns, versus organizations that are not highly effective in either of these areas. Link here.
Prosci. (2020). Best Practices in Change Management 11th Edition. The paper referred to a Prosci study that found that projects with excellent change management practices 6 times more likelihood of meeting project objectives than those that are poor. Link here.
So the value the importance of change management, let’s take a comparison to see the difference in using a ROI calculation of the value of change management versus using findings from the above research findings to demonstrate the derived value.
Let’s take a typical project example. Company A has ….
Annual revenue of $1 billion with 5% profitability
The revenue growth is 1%
Project A costs $1Million and is targeted for $3 million in benefits.
If the expected project benefits without adoption would be $1Million, then, the people-side contribution is …
$2Million / $3Million = $667K.
Let’s contrast this to other calculations using research.
Research findings | Calculation
Korn Ferry study where companies with high levels of employee engagement had 4.5 times higher revenue growth compared to companies with low levels of engagement. Taking a very conservative approach of portioning on 1/3 of employee engagement linked to change, this means 1.5 times higher revenue growth. | Taking a very conservative approach of portioning 1/3 of employee engagement as linked to change, this means 1.5 times higher revenue growth. This means if the revenue growth is 1%, then the additional revenue is $15 Million per year.
You can see that $15 million in value is much higher than the $667K in initiative ROI. From these examples, you can see that the financial value dwarfs that from the ROI calculation. On top of this, these are from research findings, which may have a stronger perceived validity and be easier to be trusted by stakeholders than the ROI calculation.
To point out, it is not an apple-to-apple comparison between the change management ROI from one initiative to the organisational value of change management across initiatives. However, the call out is that:
The financial value of change management does not need to be limited to individual initiatives
The sum may be greater than its parts. Rather than measuring at initiative levels, research findings are looking at organisational-level value
The value of change management may be more than cost, but also other value drivers such as revenue
As change management practitioners we should not shy away from calling out and citing the value of change management. Cost may be one value, but the true benefit of change management is both the top line as well as the bottom line. Directly referring to the research-backed findings also helps to highlight its value size and importance.
To do this, we should also work to deliver organisational value in managing change and not limit ourselves to one initiative. Focus on uplifting change management capability in the forms of leadership styles, change governance, change analytics, and change champion network capability, just to name a few.
Change management is often seen as a ‘soft’ discipline that is more an ‘art’ than science. However, successful change management, like managing a business, relies on having the right data to understand if the journey is going in the right direction toward change adoption. The data can inform whether the objectives will be achieved or not.
Data science has emerged to be one of the most sought-after skills in the marketplace at the moment. This is not a surprise because data is what powers and drives our digital economy. Data has the power to make or break companies. Companies that leverages data can significant improve customer experiences, improve efficiency, improve revenue, etc. In fact all facets of how a company is run can benefit from data science. In this article, we explore practical data science techniques that organizations can use to improve change outcomes and achieve their goals more effectively.
Improved decision making
One of the significant benefits of using data science in change management is the ability to make informed decisions. Data science techniques, such as predictive analytics and statistical analysis, allow organizations to extract insights from data that would be almost impossible to detect or analyse manually. This enables organizations to make data-driven decisions that are supported by empirical evidence rather than intuition or guesswork.
Increased Efficiency
Data science can help streamline the change management process and make it more efficient. By automating repetitive tasks, such as data collection, cleaning, and analysis, organizations can free up resources and focus on more critical aspects of change management. Moreover, data science can provide real-time updates and feedback, making it easier for organizations to track progress, identify bottlenecks, and adjust the change management plan accordingly.
Improved Accuracy
Data science techniques can improve the accuracy of change management efforts by removing bias and subjectivity from decision-making processes. By relying on empirical evidence, data science enables organizations to make decisions based on objective facts rather than personal opinions or biases. This can help reduce the risk of errors and ensure that change management efforts are based on the most accurate and reliable data available.
Better Risk Management
Data science can help organizations identify potential risks and develop contingency plans to mitigate those risks. Predictive analytics can be used to forecast the impact of change management efforts and identify potential risks that may arise during the transition. For example, change impacts across multiple initiatives against seasonal operations workload peaks and troughs.
Enhanced Communication
Data science can help facilitate better communication and collaboration between stakeholders involved in the change management process. By presenting data in a visual format, such as graphs, charts, and maps, data science can make complex information more accessible and understandable to all stakeholders. This can help ensure that everyone involved in the change management process has a clear understanding of the goals, objectives, and progress of the transition.
Key data science approaches in change management
Conduct a Data Audit
Before embarking on any change management initiative, it’s essential to conduct a data audit to ensure that the data being used is accurate, complete, and consistent. For example, data related to the current status or the baseline, before change takes place. A data audit involves identifying data sources, reviewing data quality, and creating a data inventory. This can help organizations identify gaps in data and ensure that data is available to support the change management process. This includes any impacted stakeholder status or operational data.
During a data audit, change managers should ask themselves the following questions:
What data sources from change leaders and key stakeholders do we need to support the change management process?
Is the data we are using accurate and reliable?
Are there any gaps in our data inventory?
What data do we need to collect to support our change management initiatives, including measurable impact data?
Using Predictive Analytics
Predictive analytics is a valuable data science technique that can be used to forecast the impact of change management initiatives. Predictive analytics involves using historical data to build models that can predict the future impact of change management initiatives. This can help organizations identify potential risks and develop proactive strategies to mitigate those risks.
Change managers can use predictive analytics to answer the following questions:
What is the expected impact of our change management initiatives?
What are the potential risks associated with our change management initiatives?
What proactive strategies can we implement to mitigate those risks?
How can we use predictive analytics to optimize the change management process?
Leveraging Business Intelligence
Business intelligence is a data science technique that involves using tools and techniques to transform raw data into actionable insights. Business intelligence tools can help organizations identify trends, patterns, and insights that can inform the change management process. This can help organizations make informed decisions, improve communication, and increase the efficiency of change management initiatives.
Change managers can use business intelligence to answer the following questions:
What insights can we gain from our data?
What trends and patterns are emerging from our data?
How can we use business intelligence to improve communication and collaboration among stakeholders?
How can we use business intelligence to increase the efficiency of change management initiatives?
Using Data Visualization
Data visualization is a valuable data science technique that involves presenting data in a visual format such as graphs, charts, and maps. Data visualization can help organizations communicate complex information more effectively and make it easier for stakeholders to understand the goals, objectives, and progress of change management initiatives. This can improve communication and increase stakeholder engagement in the change management process.
Change managers can use data visualization to answer the following questions:
How can we present our data in a way that is easy to understand?
How can we use data visualization to communicate progress and results to stakeholders?
How can we use data visualization to identify trends and patterns in our data?
How can we use data visualization to increase stakeholder engagement in the change management process?
Monitoring and Evaluating Progress
Monitoring and evaluating progress is a critical part of the change management process. Data science techniques, such as statistical analysis and data mining, can be used to monitor progress and evaluate the effectiveness of change management initiatives. This can help organizations identify areas for improvement, adjust the change management plan, and ensure that change management initiatives are achieving the desired outcomes.
Change managers can use monitoring and evaluation techniques to answer the following questions:
How can we measure the effectiveness of our change management initiatives? (e.g. employee engagement, customer satisfaction, business outcomes, etc.) And what method do we use to collect the data? E.g. surveys or focus groups?
What data do we need to collect to evaluate the change initiative progress?
How can we use statistical analysis and data mining to identify areas for improvement?
How can we use monitoring of ongoing support or continuous improvement?
The outlined approaches are some of the key ways in which we can use data science to manage the change process. Change practitioners should invest in their data science capability and adopt data science techniques to drive effective change management success. Stakeholders will take more notice of change management status and they may also better understand the value of managing change. Most importantly, data helps to achieve change objectives.
In this Change Practitioner Q&A series we talk to change managers to ask them how they approach their work. This time we are talking to Fiona Johnson.
Change Compass: Hi Fiona, describe yourself in 3 sentences.
Fiona: I’m a ‘seasoned” change practitioner who has survived many types of workplaces relatively unscathed ! Honestly, I could write a book about it. I always try and see the positive aspects of any workplace and do my best to enhance and support the cultural norms AND keep a sense of humour. I like to collaborate with professional and supportive team members and coach and mentor team members.
Change Compass: What has been the most challenging situation for you as a change practitioner? Tell us what happened and how you fared through it.
Fiona: I’ve had a lot of challenges, but I think the key is getting leaders to lead the change and supporting them.
I had an instance where I had to “sell” the benefits of change management to a very resistant Financial Controller. At the start of the project ( basically an operating model change) , he was totally focussed on the numbers and not the people and lacked the insight that change is always about people.
I had a team made up of business representatives and I set up regular fortnightly meetings to get his attention on issues we needed resolving and keep him up to date. I made the meetings short and sharp and each team members gave an update on the work they were doing to give them visibility. He realised the value of change management once the project delivered as that was when the gaps became evident. I think we were able to prepare him for the implementation but once the project wrapped up it was evident there was a lot of embedment activities not planned for and I think this would have caused more pain.
Although change initiatives are clearer now about the roles and responsibilities of the Sponsor and Business Owner, there is a still a reluctance amongst senior leaders to lead from the front in case it’s a failure and reflects negatively on them. I think this is an education piece and leaders need to trust change managers.
Change Compass: What are the most critical and most useful things to focus on when you first start on a project, and why.
Fiona: These tend to be the questions I focus on … • What are the business drivers? Why? Because this helps form the narrative and links to strategy and then to the frontline – “What’s in it for me?” • Who is the Sponsor and how actively engaged are they? They need to be involved and advocating throughout the project. • How much funding is set aside for Change Management ? I’ve implemented change on a shoestring but its better if there is funding for communication and training as this indicates consideration for the recipients. • What’s the organisations history of managing change – is there a “good” change example and what made it stand out, conversely what was a poor experience and what factors contributed to it ? • What is the culture like ? Take note of employees’ surveys as they provide markers on morale and pain points. • Finally identify a network of strong champions and advocates to help the change and provide them with the tools to do this.
Change Compass: As change practitioners we don’t often get to stick around to see the fruits of our labour, but from your experience what are the top factors in driving full change adoption?
Fiona: For me …. • Understanding the future state and identifying existing organisation metrics that can monitor and measure, or if there are gaps, ensuring these are filled before the change. • Handover to a committed business owner to manage and maintain momentum and who understands their role and responsibilities. • Building governance structures to review and report on the changes to the Executives or using existing forums. • Reporting and tracking are key but also other types of controls such as operating procedures and training. • Involving other areas such as QA, Compliance, HR and Finance in the discussions relating to embedment
Change Compass: You’re known to be great at explaining complex changes to stakeholders. What’s your secret?
Fiona: I have the grandmother test … would your grandmother understand this? Also, use basic communication rules such a targeting your audiences – there’s a difference between communicating to white collar and blue collar. Other tips include … • Use storytelling and personas your audience can relate to • Use your advocates and sponsors to spread the message. • Keep it simple and use a variety of mediums
There is no change curve. A single change curve doesn’t exist in most organisations. The concept of a single change curve means you’re always looking at it from the myopic lens of a single project or a single change. If we adopt a humanistic and human-centred view, what we see is that at any one time there are likely multiple change curves happening, to the same person, the same team, the same organisation.
At any one time, an impacted stakeholder maybe undergoing the 3rd iteraction of changes in one project, whilst partially adopting the new behaviours of another project, whilst just learning about the details of yet another project. And it may not even be projects or programs. It could be smaller team-led continuous improvement initiatives.
The concept of Agile methodology has revolutionized the way organizations approach software development and project management. It emphasizes flexibility, adaptability, and continuous improvement. However, the frequent introduction of multiple Agile changes within an organization can lead to multiple ‘S’ curves, which can result in several challenges related to adoption and business performance and capacity.
Multiple S curves refer to the continuous introduction of new Agile changes, each of which leads to a new adoption process and a corresponding performance improvement. This results in a series of S-shaped curves, each representing a different stage of the Agile adoption process.
The S curve is assuming that all of the changes are well implemented with good people experiences. The initial curve shows the slowness of the change adoption in the beginning, followed by a faster change adoption process, and finally capering off.
However, when the change is not well implemented due to various reasons the experience can be more like a V curve, where the experience and performance dips down into the ‘valley of despair’, followed by a ramp-up of improving experiences and change adoption.
The introduction of multiple Agile changes within an organization can lead to several challenges related to adoption and business performance and capacity. Firstly, continuous change can lead to confusion and uncertainty among employees. It can be difficult for employees to keep up with the latest changes and understand how they should adjust their work processes accordingly. This can result in decreased productivity and morale among employees.
Moreover, frequent changes can also result in increased cognitive strain and workload for employees. They may need to continuously learn new processes and techniques, leading to burnout and decreased job satisfaction.
Another challenge of having multiple Agile changes is that it can lead to decreased consistency in processes and outcomes. Each change may result in different outcomes and different ways of working, making it difficult to standardize and measure performance. This can result in a lack of accountability and a decrease in the organization’s overall efficiency.
In addition to the challenges related to adoption and performance, multiple Agile changes can also result in a decreased business capacity. The frequent changes can disrupt established workflows, making it difficult for teams to complete projects in a timely manner. This can lead to decreased project velocity and increased project risk, making it challenging for the organization to meet its goals and objectives.
So, while Agile methodology is a powerful tool for organizations, the frequent introduction of multiple Agile changes can result in several challenges related to adoption, performance, and capacity. To mitigate these challenges, organizations should take a strategic approach to Agile adoption, ensuring that changes are well-planned, communicated effectively, and implemented in a controlled manner. By doing so, organizations can ensure that the benefits of Agile methodology are realized while minimizing the risks associated with multiple changes.
To truly manage the multiple change curves, data is key. Without understanding which change curves are happening at what time it is not possible to manage change holistically. With data, you can easily drill into what is happening when, to whom, to what extent, and in what way. It is only with data that we can effectively orchestrate change across the board.
If you are going on a journey to capture change impacts across the organisation, be aware of how you are capturing the data so that you are truly addressing business issues critical to the organisation. For example:
Ensure that the data captured can be easily formatted and visualised to support a range of business decision-making contexts without too much manual work. The more manual the set up of the data is, the more time and effort it requires to answer the various data cuts that stakeholders may be needing
Balancing critical data points required versus having too many data fields and therefore too Cumberland and difficult to capture the data. The more data you are required to collect, the more complex the process is for those whom you are collecting the data from
Thanks to the nature of agile projects, the data will change constantly. The tracking of constantly changing change data is critical. However, it should also be easy and quick to update the data
Organisations under changes will invariably have changes in organisational structures, teams or roles. Ensure that your data-capturing process makes it easy to update the structure as they change.
Have a chat with us to understand more about how to leverage digital solutions to multiple change impacts across the organisation, and how to leverage AI and automation to make your lives easier in leveraging a data platform to make critical business decisions using change impact data.
So next time you talk about THE change curve, just be aware that you’re likely not adopting a people-centric view of change. You may want to look more holistically at what your impacted stakeholders are undergoing or about to undergo. Adopt a holistic mindset of what impacted stakeholders are going through as you plan out your change approach.
If you’re interested in exploring more about managing agile changes check out the following:
