The Ultimate Guide to Data (vs. methodology) Driven Change Approach

The Ultimate Guide to Data (vs. methodology) Driven Change Approach

by | Change approach, Change Measurement, Guides

Most change practitioners follow a standard change approach.  For the past 20 years popular change management content have focused mainly on one part of the discipline – change methodology.  As a new-ish discipline there has been a big demand for the ‘how to’ in change management.  These include how to follow a sequence of steps in executing a project, and step-by-step path to becoming a better change leader.  Clear easy-to-follow steps with associated acronyms have dominated our discipline. A data-driven change approach has not been on the horizon for most organisations.

Is following a methodology bad?  Well, not necessarily.  A methodology helps to instil critical steps that may ensure that a minimum set of outcomes be achieved in implementing a change initiative.  The assumption is that by following these steps, a set of basic work is done that it would be harder to fail.  Especially for less experienced change practitioners, following a methodology is highly beneficial.  

After while, many also tend to rely on their ‘experience’ and tend to apply similar approaches for most change initiatives.  This may be OK if the stakeholders and change initiatives are all similar.  However, as stakeholders evolve with changes and new changes take place that are more ‘transformational’ or require different attitudes and skills, then what has worked in the past may not work in the future.

We know that the most popular Google keyword searches in Change Management are mostly related to methodology.  For example, some of the most popular keywords include change management process, prosci change management, adkar, etc.

The most popular Google searches on change management are mostly do with change methodology

However, the bigger question is should we continue to follow a methodology-driven approach in designing our change approach?  In a nutshell, for more experienced change practitioners …. No.  For the rest of the article let’s explore why this is the case.

What are the benefits of a data-driven change approach?

  • The design of the change approach is supported by data and therefore less biased by personal preferences and unsupported opinions, and as a result when you present the change approach you are less likely to face objections and disagreements
  • With the right data, you’re able to articulate the risk of not using a particular change approach
  • Ability to take a ‘whole picture’ view of the change landscape in making the right change implementation decisions
  • Match the right change approach to the sponsor and executive leadership styles so that the initiative is leveraging those leadership facets, with any supplemented tactics as needed

What is a data-driven change approach?

A data-driven change approach is a change approach that is informed by data.  What does this look like?

Business case 

With a data driven change approach, historical data of change and business performance informs the business case.  Possible data that could be used for business case may include:

  • Historical data on business improvement performance results, especially targets vs actual results
  • Current operational indicator performance and any previous change and business improvement interventions
  • Change maturity of impacted business units including operational maturity in supporting change implementation

Scoping

During initial scoping of the initiative, the following critical data elements may be taken into account:

  • Use historical change initiative outcomes to rate potential sizes of impact on business units
  • Use easily available data in the areas of people, business operations, and process/systems to assess spread of the impact

Planning

This is traditionally one of the most important parts of change approach design and the phase where all facets of the determined change approach is documented and agreed by stakeholders.  Taking a data-driven approach means:

  • Using only demonstrable data and evidence to derive an fact-driven change approach
  • If there are elements of the change where there has not been previous data available, then early experiments may be designed to test the selected change approach
  • Stakeholder engagement approaches are determined based on what has worked in the past, e.g. survey responses from town hall sessions, leader feedback,  
  • Communications channel and content design are designed based on previous demonstrable methods, e.g. communications hit rate, ‘like’ rate, article viewership, etc.
  • Project priority ratings across initiatives to ensure clear alignment for stakeholders
  • Portfolio level change impact information from other projects to assist in change release sequencing and capacity planning

Examples of portfolio-level change data visualization from The Change Compass

BCG has come up with a simple 2 by 2 grid for determining change strategies.  The 2 axes are ‘clarity of ends and ‘clarity of means’.   Clarity of ends refers to what the end state looks like, and clarity of means refer to how clear the path is to getting to the end state.  

Using this grid there are 5 major different types of change strategies:

  1. River crossing
  2. Escaping the swamp
  3. Souting and wandering
  4. Planned itinerary
  5. Hill climbing

It is important to note that whilst this may be a good general reference in determining the change approach, leveraging evidence and data in other aspects of change can greatly determine the right change strategy to be adopted.  

In fact if you’re driving a large multi-year transformation, it is likely that you may need to adopt different change approaches during different phases of the program.  It also depends how your stakeholders are responding and what approach best suit the situation.

For example, a ‘hill climbing’ approach could be appropriate if it is clear from your stakeholder feedback that upcoming milestones are not super clear.  On the other hand, the change is complex and requires persistence and unwielding push from the senior management to continue.  Whereas, in the beginning of the transformation journey it maybe that a lot of exploration and discover is required to figure out what the change looks like. In this earlier phase, a ‘escape the swamp’ may be the change approach.

Implementation

This is one of the most critical parts of initiative roll out as this is when the rubber hits the road and change starts to take place.  Some of the data-driven aspects of the change approach involves:

  • Continuous pulsing and checking of stakeholder readiness
  • Regular surveys and dip-stick checks on adoption behaviours and change sentiments from impacted stakeholders
  • Monitor business operations performance related indicators that track movements in change adoption
  • Social media sentiment analysis of impacted stakeholder groups, and types and amount of questions asked at appointed communication channels, and other potential indicators on people capability in adopting the change
  • Training attendance rates, and participant test scores

Ascertaining what the change environment looks like for impacted stakeholders is a key linchpin for a data-driven change approach during the implementation phase.  When the ‘rubber hits the road’ as execution starts to take place, you may find that things are not going exactly as planned.  It could be that stakeholders completely did not understand the positioning or that change tactics in imparting the value of the initiative did not resonate.

On the other hand, it could be that there is a myriad of other initiatives that the impacted business units are experiencing.  Therefore, it is difficult for employees to focus on one set of changes, when there are several types of changes happening concurrently.  With lack of focus, coordination and clear priority set by leaders, it often happens that none of the changes land successfully due to saturation and lack of focus.

With the right portfolio level data, it is possible to identify these risks and avoid them altogether.  Even if you don’t have easy access to portfolio level change impact data, at least have the conversation with your business stakeholders to understand what else is happening and how are things landing from an employee perspective.

Post release

Even after go-live it is important to keep tracking the change adoption to ensure that there is sufficient continual focus to reach full benefits.  In fact this is one of the key reasons why a lot of projects fail.  It is because the whole project has been wrapped up too quickly post release and there is not enough accountability and focus placed on continually achieving the benefits targeted.

What are some of the data points to focus on?  This depends on the nature of the change.  Typical metrics to focus on include:

  • System usage rates
  • Cost reduction
  • Revenue increase
  • Transaction speed
  • Process efficiency
  • Speed of decision making
  • Customer satisfaction rate
  • Employee productivity rate
  • Incidents of process violation

For a comprehensive article on how to measure change visit The Ultimate Guide to Measuring Change.

What does a data-driven change environment look like?

In the previous section we focused on all the various data points that can be leveraged throughout a project to make data-driven change decisions to move the initiative forward toward the right trajectory.

In an organisation where data drives how change is designed, orchestrated and implemented … what would this look like?

Let’s approach this in 5 different themes in order to describe core practices that should take place to support an environment that thrives on data-driven change. 

1. Democratisation of data/Openness to share data

Data democratisation has been an emerging them in the IT and analytics world.  What it means is basically that everyone has access to a range of data and that there aren’t unnecessary gatekeepers that control the data and stopping the data being shared.  The data can be used to run the business, understand what is happening, conduct rootcause analysis and overall make better business decisions.

The overall goal is to have as many people as possible access data with little barriers in accessing the data and knowing how to read and understand the data.

Imagine an organisation where employees and managers have access to change data and have the ability to understand what is happening, how each other are responding to change, their concerns and how this is supporting or impeding change.  There is significant power in harnessing the greater understanding for the change that is being driven, to garner involvement, engagement and connection.

2. Investing in capturing and publishing data

An assumption in the previous theme is that the organisation has the focus on collecting and harvesting the data.  This includes change data.  Without the investment in gathering change data there will be nothing to work with.

There is no doubt that most progressive organisations understand the importance of investing in data collection and analysis.  There are many ways to determine the value of the data.  These include opportunity cost, regulatory fines or settlement value.  In terms of the value of change data, the best way to understand it is in terms of opportunity cost, where without the right data there could be significant cost in making the wrong change tactic decisions.

Further more, there is significant benefit in monitizing the company’s historical change data.  Some examples of this include the ability to use historical change data to determine seasonal workloads on particular stakeholder groups and roles.  Change data may also be linked to other business performance data to track overall change adoption and benefit realisation.  Let’s say one project is aiming for $2 million in benefits, and across the project portfolio the total benefits targeted is $15 million.  Even if change data supports just 20% of the achievement of full benefits, this equates to $3 million just in terms of tangible financial benefits.  There are also non-tangible benefits that can be tracked as well.

3. Incorporating data governance

Data governance is about defining who within the company has control over data assets and how these data assets might be used.  This includes people, process, and technology required to manage and protect the data assets.

For IT, Marketing and HR departments the concept of data governance is part of the expected parts of managing the function.  There are often dedicated roles, teams and committees in undertaking data governance processes and systems.

For change data, there is also a need to ensure that there is some level of data governance.  This does not necessary mean building a complex function if there is no need for such.  What it does mean is to have concerted focus and effort to ensure that the change data is managed in a way to ensure that the data is achieving the value that the organisation is looking for.

Some elements of data governance here may include:

Data storage and operations: Ensuring that the data is stored in a safe, and easily accessible location

Data security:  Ensuring that the right privacy and access level is provided, however without so much control that user access is inhibited

Data integration and interoperability:  The change data should be easily extracted, shared, replicated and utilised across systems if required

Documents and content:  There are different types of change data, and the trick is to ensure all these different types of files and data are easily accessible

Data quality:  Ensuring that the data is updated sufficiently and can be trusted is key.  “Rubbish in, rubbish out” is a common phrase that is true nonetheless.  Data that is not constantly refreshed is also one that will not deliver value to the organisation.

4. Leadership support

Like everything with managing change, leadership support is critical.  Some go as far as saying that without leadership support no change will fly.  This may not be true since there are lots of examples of grassroots-driven changes that are not initially driven by leaders.  The same goes with driving a data-driven change environment.

Getting the blessings from your senior leaders will go a long way to driving a ‘data is king’ change environment.  However, even if your leaders do not start out being your champions, there are ways to nourish and develop their support.  

In business, leaders naturally look to data to make various decisions.  Traditionally in change management tangible and visual data has not always been plentiful to support decision making.  As a result, leaders may not know how to read, interpret and utilise change data.  You will need to educate and support leaders to understand how to utilise change data and guide them through examples and scenarios.

5. Collaboration across initiatives

Teams are effective for various reasons.  When you’re in a team you are able to form strong personal relationships and receive that support that you need.  Through ongoing work with your team you can focus on a set of outcomes that you can contribute together with the team.

However, the nature of teams is that you will by design see other teams as ‘outsiders’ and have less intimate relationship with them.  Those you are less familiar with you also develop less trust.  

And as a result, project teams tend to stick within their own teams and focus on working with their particular set of stakeholders.  However, to design a better employee or customer experience in planning for change, initiatives need to work together.  There will be plenty of situations where changes in releases, planned activities will be better shifted to achieve a better employee outcome.  

In situations where there is multiple releases impacting the same stakeholder group, most will leave it to the project management office to make the priority call.  However, the process of escalating the issue for decisions to be made takes time and may sometimes create unnecessary anxiety across concerned project teams.  A better way to approach this with the right change data is that project teams can proactively work together as a part of release and stakeholder readiness planning.

What is the overall opportunity in taking a data-driven vs. methodology driven change approach?  Hopefully this article has convinced you some of the advantages and how to go about applying it.  “Data is the new oil for the digital economy”.  With Covid the reliance of business on data has been a wakeup call.  This will continue to intensity in the years to come.  For change practitioners we also need to adopt a data-centric approach in our work with the organisation.  The alternative could be that we lose our influence, trust and relevance for the business in this digital world where data is embedded within all facets of our lives.  

What will your next step be in taking a more data-driven change approach?

To learn more about building change analytics capability click here.

Data-driven change environment (infographic)

Data-driven change environment (infographic)

by | Change approach, Designing change

Data is king. This is especially in current times of uncertainty. With data comes power, influence and outcomes. Lots of disciplines have leveraged the power of data to drive better outcomes. Marketers would not dream of doing any part of their job without data. Operations is driven by data in all aspects of managing the business. Even Human Resources is heavily focused on numbers, pay and benefits, employee sizes and structures, cultural measurements and employee sentiment trends.

For change management data must also be the core pillar that drives our work.

Unfortunately for a lot of practitioners the only data used tends to be sizing number of people impacted, counting the number of people being trained, training evaluation scores or change readiness sentiment surveys.

Surely, there is more we can do to adopt a more data-driven change approach?

Absolutely! Stay tuned for our upcoming article on how to do this.

In the meantime, here is an infographic on painting a picture of what a data-driven change environment looks like.

There are 8 core components:

  1. Focus on capturing initiative and portoflio-wide data
  2. Data-driven change approach throughout project phases
  3. Take user/business centric versus project centric view
  4. Investing in data insight capability building
  5. Leader sponsorhip in data-led investment and focus
  6. Collaboration/Openness to share data
  7. Using data in routine business/project meetings
  8. Incorporate data governance within roles and responsibilities

To download the infographic, click here.

The one approach every initiative should incorporate post-Covid

The one approach every initiative should incorporate post-Covid

by | Change approach, Designing change

The past 1.5 years has been super challenging for most organisations.  The constant stop and start interruptions of Covid has taken a toll on most employees.  One minute we are going back to work the next minute we are not.  One minute we have Covid cases under control, the next minute infection rates are out of control.  

However, corporate initiatives are not in any way slowed down by Covid.  If anything there is more organisational change resulting from Covid.  Covid has not only resulted in ways of working changes, but also deep industry, economy, consumer and technology changes.

Now that most economies are starting to come out of lockdowns and opening up, what does this mean for initiatives?  Well, amidst the atmosphere of the emotional and psycho-social turmoil that has been the journey for most employees as a result of COVID, the most important change approach can be summarised by one word ….

OPTIMISM

 Why is it important to incorporate a sense of optimism within every change initiative?

After more than a year of being isolated and experiencing the various disruptions of not being able to have a normal life of shopping, visiting friends and travelling, we need to acknowledge and reset the mood.  How we approach work is indeed affected by the overall mood around us.  Resetting the mood and instilling a sense of positivity and optimism is absolutely critical.  

Without optimism, employees may still be harbouring the lingering mood of dealing with Covid.  Negativity will never help to transition people during the change process.  It is hope and optimism that will carry energy and excitement which will then drive action.

Think of the last time you were feeling down and weary.  What were some of your behaviours?  Typical behaviours when you’re feeling down in the dumps include not connecting with family and friends, being socially withdrawn, disruptions in sleep, being less physically active, etc.  You were also more likely to think negatively, such as “things won’t get better”, “there’s no point trying”, “might as well not try”.  These are definitely not the thoughts and behaviours that will help people transition during the change process.

So how do we instil a sense of optimism within our change initiatives?

1. Celebrate the ‘return to normal’ (whatever normal looks like!).  As companies start to gradually have employees return to work, initiatives must also support this by creating a sense of excitement and positivity.  Think of approaches such as:

  • Uplifting speeches by leaders
  • Gift objects such as cupcakes and drinks as a part of the celebration theme
  • Online events promoting positive discussions and sharing
  • Social events fostering activity and excitement

2. Highlight new ideas and approaches to the initiative.  To demonstrate that things are no longer just ‘ho-hum’ as was the case during Covid, adopt new engagement and communication approaches to liven up the initiative.  Even better, ask impacted stakeholders to come up with bright ideas of how to generate a renewed sense of optimism

3. Leverage the power of communication to impart excitement and positivity.  Incorporate bright and colourful images, quotes and graphic themes to instil positive energy.  

4. Display consistent behaviour.  There is nothing worse than having positive themes throughout, only to have initiative leads speak with monotone voice supplemented by lethargic behaviour.  We are social animals.  We can ‘smell’ low energy.    You may need to proactive coach your leaders to ensure that they are displaying the right behaviours across all modalities …. The tone of voice, gestures, responses, reactions, etc.  All aspects of behaviour can impart mood.  And your job is to design and shape them to be one that is more positive.

Behavioural science approach to managing change: The science you need

Behavioural science approach to managing change: The science you need

by | Change approach, Designing change

Adopting a behavioural science approach to managing behaviour change means leveraging scientific research about human behaviours and using this to better manage employee behaviour and change. A lot of the common practices in change management are not always based on scientific research. What is assumed as common change approaches may in fact not be substantiated by research and data.

A behavioural science approach to managing change recognizes that successful change initiatives require more than just new processes or training programs—they hinge on shifting employee behaviour and embedding new behaviours across the organization. By drawing on evidence-based insights, such as the transtheoretical model, change practitioners can better understand how individuals move through stages of personal growth and adopt new ways of working. This approach underscores the crucial role of leadership, with the executive team and direct reports acting as role models who demonstrate and reinforce desired behaviors. Engaging small groups and the wider workforce in the process ensures that behavioural change is not only top-down but also authentic and sustainable, addressing the way people perceive and respond to organizational change over the long term.

Moreover, involving employees in both the design and reporting of change efforts fosters ownership and helps weave multiple changes into the fabric of the organization. Performance reviews and ongoing reinforcement are essential for sustaining new behaviors and achieving better outcomes. By prioritizing human-centric design and leveraging the power of relationships—such as the nature of leadership relationships and the influence of peer networks—organizations can create an environment where behavioural change is not just a one-off initiative but a continuous process aimed at long-term success.

How to create a behavioral and cultural shift?

To create a behavioural and cultural shift, engage stakeholders through open communication, set clear objectives, and model desired behaviours. Encourage feedback and recognize progress to reinforce the change. Additionally, provide training and resources to support individuals as they adapt, ensuring a cohesive transition towards the new culture.

We talk to an industry veteran of behavioural science, Tony Salvador. Tony has 30+ years of research background behind him and a long-time ex-Inteller and Senior Fellow. At Intel, Tony travelled around the globe researching human factors and how people behave with technology.

There are many valuable takeaways for the change practitioner.

Some of these include:

  1. Engineering psychology and human centric design
  2. Analogy of pickaxe and the change approach
  3. Principle of aversion to loss
  4. People involvement and transactional change
  5. Determining the nature of leadership relationship with employees
  6. Story telling and insight into change culture
  7. Example of Brazilian translator and people’s stories
  8. Power of observation and listening
  9. The nature of relationships and how they determine change
  10. Change rationale in weaving in multiple changes
  11. Involving people in reporting to achieve authenticity
  12. Building the case and involving employees to derive case for change
Aversion to loss – Knowing how this works can prevent change resistance

Aversion to loss – Knowing how this works can prevent change resistance

by | Agile, Change approach

Research on aversion to loss can explain why people don’t want to change. I spoke with Senior Fellow, anthropologist and ex-Inteller Tony Salvador.

It sounds completely illogical but true ….

This plays out in various facets of how people make decisions about choices … including in a change transformations context.

This is just one of the many things I spoke with Tony Salvador about.

Change aversion is a powerful psychological concept rooted in loss aversion, where individuals tend to fear losing what they have more than they value gaining something of equal magnitude. This phenomenon plays a significant role in why many people resist new changes, whether in their personal lives or within organizations, and particularly affects how product managers, leaders, and customer-facing teams approach change initiatives. It impacts their decision-making processes heavily, especially when they perceive potential losses that could overshadow a gain of equal magnitude.

At the individual level, the degree of change aversion varies depending on personal circumstances and perceptions. Original research grounded in Prospect Theory explains that people evaluate potential changes not just by the prospective benefits but by the risks of losing familiar routines, status, or comfort. For example, individuals are often more concerned about losing $2 than they are motivated by the prospect of gaining $5, because the psychological impact of loss outweighs that of an equivalent gain. This loss aversion creates an emotional barrier that can prevent even well-intentioned changes from being embraced.

The effects of change aversion can be observed in many contexts, including business transformations and customer satisfaction. For product managers, understanding this aversion is crucial when introducing new features or product updates. Despite best intentions customers might resist changes that disrupt their habitual usage or create uncertainty – even when these changes offer clear improvements or potential benefits. This reluctance can negatively impact customer feedback and satisfaction because the change is perceived as a threat rather than an opportunity, despite significant change efforts.

One helpful point of reference for managing change aversion is recognizing that the degree of aversion is not uniform. Organizational change studies show that people feel more averse to changes imposed upon them (such as being assigned new tasks) than to changes they self-initiate (like managing their own time differently). This highlights the importance of agency in the change process. When employees or customers feel involved or have some control, their resistance diminishes.

The potential benefits of understanding and addressing change aversion are profound. Company leaders who communicate transparently about what changes mean, acknowledge possible losses, and provide support and resources can create an environment where people feel safer to engage with change. This approach can be extended to personal lives, for example, in maintaining new year’s resolutions where individuals face their own internal resistance rooted in loss aversion to giving up old habits or comforts.

Moreover, energetic speeches or inspirational messaging via emails can sometimes fail to overcome change aversion if they neglect the underlying psychological resistance. Instead, effective change management embraces empathy and addresses the emotional loss individuals perceive. This understanding is particularly vital for product managers relying on customer feedback to refine changes, as they must balance the introduction of innovation with the human tendency to resist disruption.

In summary, loss aversion explains why change feels threatening and why resistance often arises despite good intentions and clear advantages of the new change. By acknowledging the psychological concept of change aversion and its individual variability, organizations and individuals can better design, communicate, and implement changes that minimize resistance and maximize acceptance and satisfaction.

This nuanced understanding provides a valuable toolkit for navigating change in both organizational settings and personal lives, helping transform resistance into openness and enabling progress despite the natural human tendency toward aversion to loss.

Lots of golden nuggets of wisdom takeaways for change practitioners from the man who spent 30+ years working for Intel researching about people behaviour and how they operate in social and technological environments.

Stay tuned for the full recording.

Why do people oppose change?

People often oppose change due to change aversion, a psychological tendency where individuals fear losing what they already possess. This resistance is rooted in the discomfort of uncertainty and potential negative outcomes. Understanding this can help leaders implement strategies to ease transitions and foster acceptance within teams.