Thanks to the growing frequency and magnitude of organizational changes the change management profession have been undergoing growth. However, some organizations are still struggling with understanding the value of change management. Subsequently, some change practitioners are still challenged to prove ‘their worth’.
Those working in the projects organization will be familiar with the scenario of being involved towards later stage of project delivery when things are starting to go wrong, or when it may be too late to put in effective change interventions. For those working within business units, common experiences may be difficulty influencing stakeholders on the importance of change management. Senior stakeholders focused on top line and bottom line challenges may not be convinced of the value that change tactics may bring. With the focus of senior leaders to meet financial goals and other ‘tangible’ business measures, change management practices may often be seen as a nice to have rather than a must-have.
What is a change practitioner to do in these situations?
ROI approach
One approach to proving the value is to use the return of investment calculation. In this approach, the dollars spent on change management is used, compared to the expected project benefits. Within this, it proportions the part of the benefits that are dependent on adoption and usage. For a great example refer here.
Whilst this is a good way to examine the return on investment, the problem is that the focus is on a project context. It does not take into consideration the value of change management from an overall business capability improvement perspective. It also does not call out the tangible and measurable parts of change management in adding business value.
Many organizations only realize the value of change management with experience of failed change attempts, and from this start to realize the risk of not having effective change management.
Here are 2 other ways to tangibly prove the value of change management
1) Planning and sequencing benefits
With quantitative data of change impacts on the business, this allows the change practitioner to work with the organization to better plan for change roll out. With one view of change impacts across different parts of the business, it is clearer to see when, what and how change is happening.
This data enables the identification of potential risks of having too much change in the plan. With historical data it is possible to see what happened to business performance last time it experienced a particular level of change. With this analysis, better sequencing and prioritization based on change impact may be made. It is important to call out that this process requires taking into account a range of business factors and not just change data. Critical factors to take into consideration include resourcing, customer or work volumes, and business performance indicators such as customer satisfaction scores, service response times, sales volume, etc.
It is easy to collect data on the negative impacts of having too much change on the business from these business indicators compared with other times where there is less change volume. For example, the business could have suffered negative work performance as a result of change magnitude that is not optimal. Anecdotally managers may understand the impact of having too much change on the business. However, the collective totality of all the business indicators can paint a convincing picture of what happens when effective change planning is absent.
2) Impacts of change on business performance
In previous examples, we’ve illustrated the impacts of too much change. For example, regulatory changes could mandate additional processes and customer communication content that could slow down service provision. However, sometimes the impact of change can also be positive (assuming there isn’t an overwhelming amount of change). For example, implementing technology automation and improved user interface on systems can improve user performance and customer satisfaction.
Correlations may be made between quantitative change impact data and business performance indicators. With a forward view of change impact data, it is then possible to predict the impact on business indicators. This is possibly the ultimate in proving the worth of change management. Senior business stakeholders will absolutely pay attention when the clear link between change and business performance is put on the table.
The same can also be said for change impacts on customers. With the right data, the change practitioner can provide a definitive analysis of what are the changes impacting a segment of customers at any given time, whether there could be too many changes, and whether the changes may be perceived as having positive or negative impacts. An increasing number of organizations are jumping on the bandwagon of customer centricity and customer experience. This is another way to prove the value of change management.
We at The Change Compass are working on incorporating machine learning and artificial intelligence so that change impact data may be used to predict business performance. This means that you are able to inform the business the likely scenario of business performance trends given the forecasted picture of changes. We anticipate the launch of this portion of the tool in early 2019. Stay tuned.
——————————
If you enjoy this article please share this with your network.
I recently visited my brother and his family in Queensland near the North Eastern tip of Australia. Other than enjoying the nice beaches and tropical surroundings I spend some time with my 2 nephews. One of them is still in secondary school participating in various swimming carnivals over the same weekend. It seemed like yesterday that I had to hold his hand and walk him across the street. And now he is 6 foot three tall and still growing. Like many others undergoing change I reminisced the old days when he was small and cute and cherished the past. Not that the present isn’t great – but a part of us always miss the past and long for some of it to come back.
This made me wonder how generations have undergone change through the ages. Change is a fact of life as we grow and age – life and death. The Kubler-Ross model of the change curve is based on death and grief. This is often utilised to model the experiences that people undergo during change. However, the experience of change is an individual one and one that is dependent on the nature of the change and also how we perceive it. The same change event can be interpreted by one as a positive one and another as a negative one. As a result, for the same change event, for one the Kubler-Ross model of emotional experience can be valid, whilst for another completely the irrelevant.
How do we best deal with the constant changes in our lives? Buddhism is steeped in the philosophy that change in life in inevitable. Our thoughts are constantly changing, as are things around us. Friends and even family can come and go, so can our belongings. It teaches us that the more we try and hold on to things the more grief and suffering this will cause us. The more we cling on to the past the more it will cause us pain. This pain results from not adjusting to the change and the new state of being.
“When we meet real tragedy in life, we can react in two ways–either by losing hope and falling into self-destructive habits, or by using the challenge to find our inner strength.” Dalai Lama.
In Buddhist meditation training we are taught to be mindful and notice each moment, each sensation and the environment that we are in. With the ebb and flow of each changing thought or changing moment, we simply notice it, acknowledge it and apply the same mindfulness to the new state. We notice any feelings we have, acknowledge it as a part of how we react to the situation and move on to continually focus on the new state.
Building change readiness
In the modern organization we are constantly facing a multitude of different changes at the same time. How might we apply the same buddhist philosophy to these changes? We can do this by building awareness within ourselves and our employees that changes are constant, like life itself.
Draw attention to the various changes in an open and matter of fact way.
Build broader consensus of the environment that we are in.
Establish expectation that there will continue to be ongoing changes.
As needed establish routines and operating rhythms to bring the information about the changes to everyone (mindfulness of changes) and acknowledge the environment and challenges that the organization is facing.
Investigate and analyse what channels are required to bring the changes to light so that everyone is well aware and ready for the changes.
“If you want others to be happy, practice compassion. If you want to be happy, practice compassion.” Dalai Lama.
At the same time we need to highlight and prepare employees for the new changes. And as the changes happen, make these explicit. Acknowledge any reactions to the change, address these head on and reference back to what is happening currently. Show compassion for those impacted by the change by being open and supportive. In corporate lives we often only focus on profit and bottom line. Being profitable and financial successful can create good for the organization and its people. However, we can also do a better job at being compassionate about people’s work lives. We can do this by HOW we implement changes. Are we open about what the change is? Or do we hide behind corporate jargon? Do we continuously engage with impacted parties so that they have an optimal change experience?
To build capability for constant changes, we need to consider how leaders message and story-tell the journey of the changes employees have faced, past, present and what the future holds. Link this to the theme of constant change.
Build employee resilience through mindfulness of change. Just like the theme of life and death, draw out the need for constant evolvement within the organization to stay current and relevant.
——————————-
If you enjoyed this article please share this with your contacts.
There is now a lot of content out there on how to manage agile changes, including agile methodology and agile ways of working. This includes early and continuous engagement, creating a multidisciplinary team and designing smaller iterative changes. There are kanban and scrum approaches. What actually happens in organizations in terms of how people experience this? Most organizations experience this is a series of multiple initiatives going on, all iterating at the same time. The effect is various ripples of changes coming from different directions, with each initiative driving separate ripples.
Impact of agile changes
Let’s dive deeper into what this experience feels like for the organization. For the employee, changes are becoming more rapid than before with agile changes. Most organizations have at least several initiatives going on at any one time. Therefore, the employee will likely experience different changes at the same time. This could feel very overwhelming and hectic as the employee tries to keep up with a myriad of initiatives that are all working on the goals of the particular initiative.
For team managers this could also be equally overwhelming as various sources of initiative information is handed down and they are expected to be delivering and engaging their teams on the changes. Getting the details right is often a challenge and it is easy to just ‘pass down’ the given write-up about the initiative without talking through what it means specifically for the individual.
On top of this in a typical agile environment, there are always release changes and changes in the timeline. So, one of the challenges is that what is communicated through the various channels to engage employees will often be inaccurate as the dates change. This could create frustration and lack of trust as what is communicated keeps shifting.
For business unit managers the trick is to balance business-as-usual activities for employees and the demands of change initiatives. There can be occasions when there are simply too many changes at the same time impacting the same group of employees, whilst other times there seems to be little change – feast or famine. In this situation, there can be significant business performance impacts if there is too much change. Customer service levels may drop, customer satisfaction levels may be impacted, or work efficiency and work allocation may be impacted.
In a nutshell, the different ripples from different directions could all intersect and meet in one particular part of the business and create potential turmoil and business disruption. Which initiative is trying to do what? Which one benefits us more than the other? Which one requires more effort to get ready? These are typical questions faced by the business.
So how do we resolve this?
Planning and prioritization
Effective planning across initiatives is critical to managing the various ripples. There needs to be effective agreement across the organization which initiative has the priority using a set of agreed criteria. Typical factors include benefit size, strategic importance or any non-negotiables such as regulatory requirements. Both businesses and projects need to be part of this process. Data to support this process need to include all initiatives impacting a particular part of the business, whether it is deemed a ‘program’, ‘project’, or ‘BAU initiative’. The groups should look for opportunities to potentially ‘package’ certain changes that are more alike so that it is easier for employee absorption and adoption.
A key part of the input into this discussion is change impact. With clarity of the quantum and nature of change impact at any given time, along with other initiative information, decisions may be made on prioritization and sequencing. To read more about change portfolio management click here.
Communication and engagement
To effectively communicate with employees within an agile environment where there is constant shifting of timeline some use monthly release blocks versus communicating actual dates. Another way of addressing this challenge is to continuously remind employees the ‘why’ of the shifting timeline. This is focused on building employee expectation for the agile environment that there will often be constant shifting of dates and releases.
With multiple changes, it is also important to effectively link initiatives to their intent and goals. An overarching grouping or linking of initiatives to organizational strategies could be one way of doing this. In this way, it is easier to draw linkages for employees to seemingly disparate initiatives.
Business forums and routines
As a part of running an effective business operation, it is important to establish the right forums and routines to ensure that there is ongoing visibility of change impact. The routine should focus on examining the data on what the changes are at any given point in time, what happened previously in implementing changes, what will happen in the next quarter or month, and what actions are required to get the business ready.
There should also be regular examination of the level of ‘change heat’ to effectively manage business performance. Where there is a lack of heat there could be opportunities to fast-forward certain changes to balance the overall change loading.
The discussion on business readiness and capacity for change should be a balanced one, taking into account any operational challenges. These could include sales target stretches, resourcing levels, customer contact volumes, and other operational activities. In this way, the understanding of the employee capacity for change is taking into account a range of activities and focus areas at a given point in time.
The importance of change data
A critical part of creating an agile environment is a reliance on data. Agile teams are reliant on data in how solutions are developed, tested, deployed and evaluated. Without data it is not possible to test the hypothesis. In a similar way, the organization also needs to look at how it is collecting and analyzing change data to make effective business decisions. Managing the various ripples within the organization requires data-based decision making and not gut feel and hunches.
Successfully achieving business outcomes through change requires good people change experiences. A positive employee change experience means that he/she is more likely to be engaged and more able to deliver a great customer experience.
How does one go about designing and crafting this experience? To achieve accolades in people’s experience, one needs to think broadly about a range of experiences. This could involve anything ranging from manager discussions, online discussions, avenues for peer conversations, senior leadership behavior, and supporting collateral.
Designing a great change experience for employees working in an organization is no different than designing a great quality of life for dwellers living in a particular city. A city needs to focus on having a vibrant economy, a happening retail scene, good access to parks and nature, great transportation links, and developed sports and arts scenes. All of these contribute to the quality of life of those who call the city home. In a similar way, in organizations, it involves a broad spectrum of experiences, including manager discussions, online forums, peer conversations, senior leadership behavior, and supporting collateral.
There are foundational ways of engaging with employees during change that apply to all organizations, such as manager-employee conversations, authenticity, clarity of the message, and involvement in the change process. On the other hand, progressive ways to engage with employees using technology can also contribute to making a great change experience. In this article, we will delve into seven key strategies to design exceptional employee experiences during times of change, encompassing both foundational and progressive approaches.
A dynamic change champion network supporting various change initiatives.
A robust and well-organized change champion network stands as the linchpin for successful initiatives. This network not only provides valuable developmental opportunities for employees but also functions as a vibrant hub for grassroots action, propelling organizational change. In this collaborative space, employees share innovative ideas, collaborate on preparing their teams for change, and play a pivotal role in disseminating critical information.
Change champions serve as passionate advocates, internalizing the responsibility to articulate the envisioned end state of the change to their colleagues. Going beyond advocacy, they actively gather frontline feedback, ensuring upper levels comprehend the concerns and insights of their peers. Moreover, change champions supporting the business across a spectrum of changes have the potential to evolve and enhance their capabilities over time, contributing significantly to the resilience and effectiveness of the entire change champion network.
Key Benefits of a Dynamic Change Champion Network
Provides valuable development opportunities for employees.
Drives organizational change through grassroots action.
Change champions play a crucial role in internalizing accountability, sharing feedback, and supporting multiple changes.
Active social network channels to discuss, share, and support one another during change.
Engaging employees during change is greatly facilitated by active social network channels. Platforms such as Yammer offer a powerful means to connect employees, encouraging idea-sharing and mutual support. While the use of social channels requires vigilant monitoring, the benefits far outweigh any potential drawbacks.
Digital channels provide an inclusive space where even those unable to attend town halls or hesitant to speak up in person can contribute and be heard. Numerous instances showcase employees leveraging these platforms to propose innovative solutions for addressing customer needs, cultivating a fertile ground for continuous improvement. Additionally, employees can share their experiences with the new system, posing questions and receiving assistance from their peers.
Key Benefits of Active Social Networks
Facilitates idea sharing and mutual support.
Inclusive platform for all employees, irrespective of their participation in town halls.
Showcases real examples of innovative solutions and continuous improvement.
Effective learning processes
Modern organizations recognize the importance of diverse learning approaches to achieve optimal outcomes. Acknowledging that employees have distinct learning styles, progressive organizations offer various options tailored to individual preferences.
Traditional face-to-face learning settings often leave some employees breezing through content, while others require additional clarification, support, and hands-on experience. To address these differences, self-paced online learning emerges as an effective solution, accommodating varying speeds of comprehension. Change champions play a vital role in this process, offering face-to-face support to those who benefit from a more personalized approach. Furthermore, organizations can create “sand-pits” or training environments, allowing employees to immerse themselves in the new system, process, or workflow before its official release. This hands-on experience ensures that employees feel confident and well-prepared for the impending change.
Key Benefits of Effective Learning Processes
Recognizes diverse learning styles among employees.
Self-paced online learning accommodates varying speeds of comprehension.
Change champions provide personalized face-to-face support.
“Sand-pits” or training environments offer hands-on experience prior to change implementation
Effective air traffic control of changes to manage change capacity
A seamless change experience necessitates meticulous planning and coordination within the organizational landscape. Given that most employees contend with multiple changes simultaneously, strategic management of these initiatives becomes paramount.
Organizations must metaphorically act as air traffic controllers, ensuring that various changes do not “land” concurrently, overwhelming employees. Achieving this coordination requires a unified view of change impacts, enabling the careful design of employee experiences. Establishing dedicated forums and routines to review change impact data is crucial in making effective sequencing decisions.
This proactive approach not only prevents change fatigue but also enhances the overall employee experience. For a detailed exploration of change management strategies and managing multiple initiatives concurrently, delve into our comprehensive guide here.
Key Benefits of Effective Change Coordination
Meticulous planning and coordination are essential for a seamless change experience.
Employees often grapple with multiple changes simultaneously, necessitating strategic management.
Organizations must act as air traffic controllers to prevent simultaneous “landings” of various changes.
A unified view of change impacts enables the careful design of employee experiences.
Dedicated forums and routines for reviewing change impact data facilitate effective sequencing decisions.
Engaging manager behaviours throughout the change process
In the realm of change experiences, the behavior of managers stands as the linchpin of effectiveness. A manager’s openness, authenticity, and commitment to engaging in transparent conversations about change wield substantial influence over the employee’s change journey.
Managers who are absent, fail to conduct one-on-ones, withhold information, or disregard feedback contribute significantly to a negative change experience. Recognizing this, senior managers and formal sponsors of change bear a pivotal role. They are entrusted with not only selling the change vision but also igniting robust support and momentum throughout the organization, facilitating a seamless transition to the new state.
Key Benefits of Effective Managerial Engagement
Managerial behavior is pivotal in shaping an effective change experience for employees.
Openness, authenticity, and transparent communication from managers significantly influence the change journey.
Ineffective managers, characterized by absence, lack of communication, and disregard for feedback, contribute to negative experiences.
Senior managers and formal change sponsors play a crucial role in selling the change vision and fostering organizational support.
Engaging and interesting collateral about the change
In the orchestration of change experiences, the role of change marketing emerges as a pivotal success criterion. The creation of engaging employee experiences hinges on the effective design of collateral that not only sends the right messages but also resonates through the appropriate channels.
To support the marketing process, collateral must be meticulously crafted, employing visual elements such as imagery, quotes, infographics, and slogans. Engaging mediums, including videos and posters, serve as powerful conduits for conveying the essence of change. In a landscape cluttered with information, the collateral’s unique proposition lies in its ability to stand out and simplify messages, articulating what employees need to know, be it the ‘why’ of the change or the actionable steps they need to take.
Key Benefits of Change Marketing
Change marketing is a critical determinant of engaging change experiences for employees.
Effective collateral design is essential for sending the right messages through appropriate channels.
Visual elements like imagery, quotes, infographics, and slogans play a crucial role in conveying the essence of change.
Engaging mediums such as videos and posters serve as powerful tools in the dissemination of change information.
Collateral must stand out in the information-cluttered landscape and simplify messages for clarity and understanding.
Positive and fun events to generate buzz and excitement
In the corporate realm, traditional showcases and meetings to discuss changes can become routine, contributing little to a positive and energetic employee experience over time. To breathe life into change events and foster excitement, it’s imperative to explore unconventional, fun, and vibrant approaches.
Key Elements for Buzz-Worthy Change Events
Beyond the Ordinary:
Ditch the mundane by steering away from standard meeting formats.
Explore unconventional and creative event designs to inject excitement.
Themed Extravaganzas:
Introduce themed events aligned with the essence of the change.
Costume characters can bring a whimsical touch, adding an element of fun.
Dress Days and Competitions:
Spice up events with theme dress days, encouraging participation.
Fun competitions add a competitive yet enjoyable edge to change gatherings.
Tea-Time Engagements:
Break away from the norm with morning/afternoon tea events.
Create a relaxed setting for informal interactions, fostering camaraderie.
A holistic approach to change acknowledges both the positive aspects of crafting engaging experiences and the challenges that come with navigating the unknown. By combining progressive engagement strategies with practical tips for addressing resistance, organizations can foster a positive change environment that not only achieves its objectives but also cultivates a resilient and adaptable workforce. Discover innovative engagement strategies, and practical tips for overcoming challenges, and foster a positive change environment. Book your weekly demo to transform change into an opportunity!
If you enjoyed reading this article please share this with your contacts.
To learn more about the change practices of companies download our benchmark report here.
In business literature having senior leader sponsorship and buy-in is always highlighted as one of the most if not the most important factor in determining successful initiative outcome. It is touted that without senior leaders to drive the initiative, it is difficult to get traction. The respective senior leaders that own the initiative are identified as the most important stakeholders to engage. As a result, most project managers and change managers spend significant amount of time aligning and influencing the senior leader.
What happens if your particular senior leader(s) are not along the journey, do not engage employees, or are simply absent? Sounds familiar? Does this mean that the initiative will definitely fail? According to research that McKinsey and others have conducted yes there will be a significant risk of failure. So what is one to do in this situation? In fact, in our recent change practice benchmarking study (click here to find out more) many respondents stated that their biggest challenge is to influence senior stakeholders.
Project or change managers will most likely not have the hierarchical status in the organization to influence senior stakeholders based on power or rank. However, do not give up. There is another way …. using soft power. What is soft power? In the field of international relations, soft power is the ability to attract or co-opt rather than coerce (hard power) as a means of persuasion (according to Wikipedia). It is having the ability to influence the behavior or thinking of others through the power of attraction and ideas.
Across the globe some countries are great at using soft power to influence other nations. How? Having strong business brands, artists/designers/musicians who are popular, etc. People all over the world are influenced by soft power through the brands they interact with every day. Apple users interact with their iPhone, iWatch, iPads or iMacs and know its Californian ideals. K-pop music lovers across Asia are influenced by the fashion trends from Korea. Ikea furniture owners experience a piece of Sweden when they walk into an Ikea store, Swedish food, Swedish minimalist design, and modern sensibilities.
So how do we leverage soft power to influence a range of stakeholders including senior stakeholders?
Leverage your ‘popular stars’. Just as Taylor Swift and Eminem popularize trends and attitudes across the global audience, leverage your organization’s stars. They can be popular bloggers on your internal company social networks such as Yammer. They can also be well-respected figures who have established famous personal brands that are not necessarily the most senior. They can have interesting job titles or particular insights, or are just well-connected. Enlist these figures to help you influence your stakeholders through their presence and visible actions.
Design an effective internal marketing campaign. Global artists weren’t born popular. They are popularized by marketing machines. Don’t be shy about marketing your selected stars and their messages. Leverage the various corporate channels to market their messages, including intranet articles, posters, emails, videos, blogs, talks, etc. Work on your branding consistency, consistency of messaging, and ensure there is an alignment of different communication channels used.
To influence key stakeholders such as senior executives, conduct detailed social network analysis. Social network analysis is the mapping and measuring of relationships and flows between people, groups and organizations. Interview those who are close to the chosen targets and start to map out those who are connected and how they are connected. Identify and leverage the targeted network to influence your senior executives. Find out what turns them on and what their pet peeves are. Then, leverage your selected network to influence.
Attract your stakeholders. Soft power is not about coercion or using carrot or stick. It is about attracting someone to your perspective. How do we do this? From a messaging perspective, appeal to the emotional core of what the stakeholders are attracted to, rather than relying purely on logical arguments. For example, if there is a history of employees jumping in to help one another in times of crisis, then leverage this history and theme to arouse the emotional connection. Tie your message to this theme. Also, work on your visual attraction. Use video imagery, infographic, photographs, and charts to tell a compelling and memorable story. Your stakeholders will remember these a lot more than a long speech or an article.
Create and leverage your change champions network. In the new world, employees no longer only look to their leader for instruction and information. They leverage their social network to stay informed and engaged. A good change champion network with members that are carefully selected can do just this – pollinate, broadcast and engage a broad range of audience. An effective change champion network that is well-supported can drive significant change across the organization. There are examples of initiatives with poor senior leader sponsorship but have resulted in significant impact due to its change champions at various levels.
Ghandi popularized a non-violent struggle against Great Britain’s colonization of India. Using peaceful means, Ghandi managed to empower the masses to overthrow a dominant superpower. Martin Luther King is another fantastic example of the power of soft power. Using his oration and people motivation skills he was able to amass a large number of people to march for civil rights. This is the magnitude of soft power. While for organizations we may not have such grand ambitions for initiatives, it is worth calling out that one should not underestimate the force of soft power. For Generation Z hierarchy and coercion will not work as well as for previous generations. They want to be inspired to change the world. As a result, how we influence and drive change initiatives will also need to change – from that which is focused on top-down command and control to one that leverages soft power.
