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.
In today’s fast-paced business landscape, marked by ongoing disruptions like environmental challenges, economic shifts and the rapid advancement of AI tools, organizational agility has become a critical capability for sustained success. As businesses strive to remain competitive and responsive to ever-changing conditions, change practitioners play a pivotal role in designing and incorporating agility into their change planning and implementation efforts.
This article explores the importance of agility in change management, drawing on research from industry experts such as McKinsey, and offers valuable insights for change practitioners to foster agility in their projects while navigating unpredictable business decisions, stakeholders, and environments.
The Significance of Agility in Change Management:
Agility has emerged as a key attribute for organizations seeking to thrive amidst disruption. McKinsey’s research on enterprise agility highlights the positive business impact achieved by companies that effectively embrace agility. These organizations demonstrate higher customer satisfaction, increased revenue growth, and improved employee engagement. By incorporating agility into their change initiatives, organizations can respond swiftly to market changes, capitalize on emerging opportunities, and mitigate risks more effectively.
Specifically, what this means is that imagine you are in a program of 5 projects over 2 years. All projects are working with a range of stakeholders within 2 divisions. There can be significant influence that your program can have on the work practices of these 2 divisions over a 2 year period. Now imagine incorporating agile practices in how you implement change. You now have the ability to really shift the dial for these work functions.
Designing Agile Change Management Strategies:
Change practitioners working on individual projects play a vital role in fostering agility within their organizations. To design and incorporate agility into change planning and implementation, practitioners should consider the following strategies:
Embrace iterative approaches: This may sound like a no-brainer, but definitely start by incorporating agile principles into your project planning and delivery. By breaking down change initiatives into smaller, manageable increments, practitioners can iterate and adjust their strategies based on real-time feedback and evolving stakeholder needs. Not a lot of change practitioners do this well. A lot still follow the standard plan and execute approach without a lot of iteration and pivoting of tactics and approaches.
Foster a culture of experimentation: Encourage stakeholders and team members to experiment with new ideas and solutions. Create a safe environment where failures are seen as learning opportunities, enabling continuous improvement and innovation. You may or may not have the luxury of being a part of a project team that promotes this environment. However, you can proactively set the expectation with your stakeholders and explain why this is valuable to help deliver a better change outcome.
Encourage collaboration and cross-functional teamwork: Establish channels for open communication, collaboration, and knowledge sharing. Cross-functional teams can contribute diverse perspectives and expertise, enabling quicker decision-making and adaptability. This may sound like a generic corporate speak … team work and collaboration. However, you can easily design cross-functional teams, work processes and decision making forums to encourage this. The connection and collaboration across teams helps them to be more agile to understand different business forces and perspectives, avoiding ‘insular thinking’.
Prioritize flexibility and adaptability: Recognize that change plans may need to be adjusted or revised as circumstances evolve. Build flexibility into the change management process, allowing for agility in response to unexpected challenges or opportunities. In every project, there are aspects that are different from other projects, even if you are involving the same stakeholders. Designing chuncked-down, flexible modules of change helps you to be more agile.
Remaining Agile as a Change Practitioner:
Change practitioners themselves must also cultivate agility to navigate the dynamic nature of their projects. Here are some key strategies for remaining agile:
Embrace a growth mindset in your change approach: Adopt a mindset that values learning, adaptability, and continuous improvement. Embrace new change tactics, methodologies, technologies, and tools that enhance your change management capabilities. Try new digital or automation solutions.
Develop strong relationship-building skills: Cultivate effective relationships with stakeholders and maintain open lines of communication. Building trust and rapport enables better collaboration and facilitates agility in responding to shifting stakeholder needs. By doing this, you can have much more influence on your stakeholders.
Stay informed and anticipate change: Continuously monitor industry trends, technological advancements, and organizational dynamics. Anticipate potential disruptions and proactively adjust your change plans to accommodate evolving circumstances. This requires strong business acumen.
Foster personal resilience: Change management can be challenging, particularly when faced with unexpected changes. Develop personal resilience by cultivating emotional intelligence, stress management techniques, and the ability to adapt to new circumstances. To lead and influence your stakeholders you need to be their anchor.
In an era of ongoing disruptions and environmental challenges, agility has emerged as a crucial capability for organizations embarking on change initiatives. Change practitioners play a pivotal role in designing and incorporating agility into their change planning and implementation efforts.
By embracing iterative approaches, fostering a culture of experimentation, encouraging collaboration, and prioritizing flexibility, change practitioners can drive agility within their organizations. Additionally, by developing a growth mindset, nurturing strong relationships, staying informed, and fostering personal resilience, change practitioners can remain agile in the face of evolving business decisions, stakeholders, and environments. Embracing agility in change management is key to successfully navigating the ever-changing landscape of the digital world.
Change management methodologies are designed to facilitate the process of implementing organizational changes effectively. However, a lot of traditional change management approaches tend to be too rigid and waterfall-like, hindering organizations from embracing agility. Despite the fact that most organisations are using agile methodology to implement change, methodologies have not kept up to date.
Waterfall vs. Agile: The Need for Change
The waterfall model, characterized by a sequential and linear approach to project management, has long been the dominant framework for managing change in organizations. It follows a structured path, where each phase is completed before moving on to the next. While this approach has its merits, it often falls short when it comes to change management, which requires flexibility and adaptability.
Agile methodologies, on the other hand, emphasize iterative and incremental development, promoting collaboration, continuous improvement, and rapid response to change. Agile has gained significant popularity in software development, but its principles can be applied to change management as well. By embracing agility, organizations can navigate the complexities of change more effectively, fostering innovation and resilience.
Most change management methodologies, despite the need for agility and adaptability, often retain a waterfall-like structure. Let’s delve into each phase to understand how this traditional approach persists.
Scoping: In the scoping phase, the change management team typically focuses on defining the scope of the change initiative. However, this phase tends to follow a waterfall approach, where the scope is predetermined and set at the beginning of the project. There is limited room for flexibility or adjustments based on evolving requirements or stakeholder feedback.
Stakeholder analysis: In traditional change management methodologies, stakeholder analysis is often conducted early on in the process. However, this analysis is frequently treated as a one-time activity, with limited opportunities for ongoing engagement and collaboration with stakeholders. This lack of continuous involvement hampers the ability to incorporate diverse perspectives and adapt the change strategy accordingly.
Impact analysis: Impact analysis aims to assess the potential consequences of the proposed change on various aspects of the organization. While this phase acknowledges the need to consider impacts, it often relies on linear and predictable assumptions. The waterfall nature of impact analysis fails to account for the dynamic nature of change and the potential for unforeseen effects or emergent patterns.
Change planning: Change planning in traditional methodologies tends to be highly detailed and extensive, often resulting in voluminous documentation. These plans are typically developed early in the process and are expected to remain static throughout the execution phase. This rigidity can be problematic, as change initiatives require adaptability and the ability to respond to emerging challenges and opportunities.
Execution: The execution phase in waterfall-like change management methodologies is often characterized by a linear sequence of tasks and activities. This sequential approach assumes that each step can be completed before moving on to the next. However, in reality, change initiatives can encounter unexpected roadblocks or require course corrections, rendering this rigid execution process inadequate for effectively managing change in dynamic environments.
Overall, these traditional phases demonstrate how most change management methodologies are still designed with a waterfall mindset, focusing on sequential processes, rigid planning, and limited opportunities for flexibility and adaptation. To truly embrace agility in change management, organizations must shift towards iterative and collaborative approaches that prioritize stakeholder engagement, continuous learning, and the ability to adjust course based on evolving needs and circumstances.
Paying lip service to ‘agile-fy’
To pay lip service to make the methodology more ‘agile friendly’ a lot of proponents of change management methodologies have come up with ways to do this.
Matching the phases to agile work phases
Some have matched the change management methodology to agile work phases to try and make it more agile. This includes matching the planning activities done by change managers to those done by the rest of the agile team, and matching the change management approach to agile delivery phases.
Mapping a waterfall style change management methodology to an agile project does not make your approach agile. Your project change activities may be in synch with the rest of the team, but it does not mean that your approach is more agile.
2. Over-focus on agile ‘capability’
Agile project approaches are about the mindset and a way of operating. Yes, ideally we want to be able to educate and improve the agile mindset and capabilities of everyone across the organisation. However, we know that in reality we may be lucky if a pocketful of stakeholders understand agile ways of working.
The same also applies to change management capability. We can invest heavily on change management capability and try and uplift this across several years. However, the most critical parts of learning is learning through ‘doing’. Learning agile ways of implementing initiatives is best through being involved.
Your stakeholders will related to the experience of being in agile initiatives and remember this a lot more than any training sessions that they go on.
3. Doing more
Some have taken the approach that with agile, there are certain activities we need to do more of, and that doing more of these activities will somehow help us to be more agile in our approach.
More communication about agile approaches. More training. More sponsor alignment. More reinforcement of agile outcomes and phases.
Doing more of these activities may be somewhat beneficial depending on your organisation, again it does not make your change approach more agile. This approach is focused on providing ‘support’ for the organisation. It is also you acting as a side-party from the rest of the agile project team, helping the organisation to accept agile. In some situations this may be needed, but again it detracts from what makes your methodology and approach more agile.
How to change your change methodology to be more agile
The “Get One Piece Done” principle from the book ‘Shape Up’ by Ryan Singer is an excellent concept that describes one of the core practices of agile. If there is one core agile principle in which to remember to get the biggest impact, this is it. It offers several advantages over traditional waterfall-like approaches:
Focus on outcomes: Instead of getting stuck in lengthy planning and documentation phases, this principle encourages organizations to focus on delivering tangible results. By setting a clear goal for each bet, teams can align their efforts toward achieving specific outcomes.
Embrace flexibility: Change is unpredictable, and rigid plans can quickly become outdated. By working in short cycles, organizations can adapt to evolving circumstances more effectively. If circumstances change, teams can adjust their course and priorities accordingly during the subsequent bets.
Foster collaboration and autonomy: The “Get One Piece Done” principle promotes collaboration and empowers teams to take ownership of their work. Teams have the autonomy to decide how to approach and complete their bets, fostering creativity and engagement.
Learn and iterate: Agile approaches emphasize learning and continuous improvement. After completing a bet, teams reflect on their experience and incorporate feedback into subsequent bets. This iterative process allows for rapid adaptation and refinement of change initiatives.
The following diagram (adapted from the book) illustrates how to use the ‘Get one piece done’ principle in ‘shipping’ change work. In agile software development, the term ‘ship’ means to deliver an output to the customer. This does not include any work internal to the project team such as planning, testing, and technical development. It is only when a piece of software is ready to be shown with working functions, that it is said to be ‘shipped’.
Change practitioners should also adopt the same agile approach in their work. Rather than relying on a series of project work phases and only ‘ship’ at the end of the project, is much more ‘waterfall’ in approach than agile. Agile teams ‘ship’ solutions throughout the project. Likewise, change practitioners can also ‘ship’ a range of change outcomes throughout the project.
Don’t wait until we have more clarity. The solution is evolving so the ‘clarity’ will also continue to evolve.
Continue to pulse and experiment as the solution continues to evolve. Just like how the agile team is showcasing features continuously as the solution is being developed, change managers should also showcase the change approach and findings through experiments.
For change management, this means testing different pieces of the change approach throughout the project.
Testing engagement channels/medium
Testing messages
Testing training content
Testing town hall design
Testing team briefing design
Testing impact assessment
Testing implementation loading/capacity
Testing speed of adoption
Testing level of engagement
Testing continuation of adoption
What key features should each test incorporate?
Each test should be small enough to be released quickly without too much work, buy-in and time.
Ideally each test should also be ‘new’ and not have been tested before. Note that even if it had been tested by another project, the context could be different.
The number one focus for each experiment is to learn something that will help you form the overall change approach.
So unlike most methodologies where the tracking, measurement and adaptation of the change approach happens at the end after the release, in an agile approach it should happen as early as possible. The eventual change management approach should be an aggregation of a series of tests and small ‘change releases’ that result in the eventual change approach.
Measurement
Measurement plays a crucial role in agile change management experiments, enabling organizations to assess the effectiveness and impact of their initiatives. Here are a few key reasons why measurement is essential in the context of agile change management:
Assessing Progress: Measurement allows organizations to track the progress and outcomes of their change management experiments. By establishing clear metrics and key performance indicators (KPIs), teams can objectively assess how well they are progressing towards their goals. This provides visibility into the effectiveness of different strategies and helps identify areas that require adjustments or improvements.
Data-Driven Decision Making: Agile change management emphasizes making decisions based on empirical evidence rather than assumptions or guesswork. Measurement provides valuable data and insights that inform decision-making processes. By collecting and analyzing relevant data, organizations can make informed choices about adjusting their approaches, reallocating resources, or prioritizing specific actions.
Learning and Continuous Improvement: Measurement is instrumental in facilitating learning and continuous improvement. Through regular measurement and evaluation, organizations gain insights into what works and what doesn’t. By analyzing the data, teams can identify patterns, uncover root causes of challenges, and discover opportunities for optimization. This iterative process enables organizations to adapt their strategies, refine their approaches, and enhance the effectiveness of future change management experiments.
Demonstrating Value: Measurement helps organizations demonstrate the value and impact of their change management initiatives. By quantifying the outcomes and benefits achieved through the experiments, organizations can communicate the success and value of their efforts to stakeholders, leadership, and other teams. This not only fosters transparency but also builds credibility and support for future change initiatives.
Alignment with Strategic Objectives: Measurement allows organizations to align their change management experiments with strategic objectives and desired outcomes. By establishing relevant metrics and aligning them with organizational goals, teams can ensure that their efforts are contributing to the overall strategic direction. Measurement provides a means to assess whether the experiments are moving the organization closer to its desired state and achieving the intended benefits.
Accountability and Transparency: Measurement promotes accountability and transparency within change management initiatives. By setting measurable targets and regularly reporting on progress, teams can ensure that they are accountable for the outcomes of their experiments. This transparency also enables stakeholders and leadership to understand the impact of the change initiatives and make informed decisions based on the results.
In conclusion, while many change management methodologies still adhere to a rigid waterfall approach, there is a growing recognition of the need for agility in navigating change. By embracing the power of change management experiments, organizations can transform their change approach into a more agile and adaptive one.
Change management experiments provide a structured and iterative framework for testing and refining different strategies, interventions, and processes. They enable organizations to learn from real-world experiences, gather empirical data, and make evidence-based decisions.
By treating change as an ongoing series of experiments, organizations can continuously adapt and improve their approach, leveraging the power of agility to navigate the complexities and uncertainties of the ever-evolving business landscape. With a mindset rooted in experimentation and a commitment to measurement and learning, organizations can truly transform their change management practices and achieve more successful and sustainable outcomes.
To read up more about agile change management, visit our Agile Knowledge section for a range of articles on managing agile changes.
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 may be less clear.
When we look across different project members, 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. This may seem like a great way to convey and show in a very direct and financial way, the value of change management. After all, we use ROI for calculating projects, why not use the same for change management as well?
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. You simply evaluate to what extent people 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. However, it is not the only way to convey the overall value of 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 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.
To read more about calculating the financial value of managing a change portfolio click here.
Have a problem in delivering change using data? Chat with us to find out how Change Compass might be able to help.
Change management is often seen as a ‘soft’ discipline that is more an ‘art’ than science. However, managing change, like managing a business, relies on having the right data to understand if the journey is going in the right direction. 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.
What are some of the benefits of using data science in change?
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 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?
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?
Example of predictive analytics from The Change Compass
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?
Example of a project dashboard from Change Automator
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?
What data do we need to collect to evaluate progress?
How can we use statistical analysis and data mining to identify areas for improvement?
How can we use monitoring
The outlined approaches are some of the key ways in which we can use data science to manage change. Change practitioners should invest in their data science capability and adopt data science techniques to drive change 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.
