15 elements of effective change management

Change management defines approaches that support and help individuals and teams in make organizational change. Its key aim is to guide organizational shifts to successful resolutions, often based around preparation, implementation and follow-through. Change management is, in several ways, the unsung hero of business transformation – the difference between projects that succeed and fail.

“Change management is integral to the success of all organizational change initiatives,” Thom Dennis, CEO of culture change and development consultancy Serenity in Leadership, tells PEX Network. “It provides a structured approach to navigate the complexities of change, involving people at all levels and working towards the achievement of the desired outcomes.”

The art of change management

The importance of change management cannot be overstated – serving as the linchpin connecting visionary strategies with tangible outcomes, adds Kriti Kapoor, digital transformation business leader and author. “In the dynamic landscape of modern enterprises, the ability to navigate and orchestrate change is paramount. As Heraclitus aptly put it, ‘change is the only constant’ and this timeless wisdom encapsulates the essence of our contemporary business reality.” It serves as the conduit through which organizations can seamlessly integrate process improvements, operational excellence initiatives and ambitious business transformations. Without effective change management, these endeavors risk becoming mere theoretical constructs, devoid of real-world impact.

While some specifics of change management vary from one organization to another, there are a number of elements generally key to successfully managing change in the business environment. These span factors like ownership, communication and psychology, to list just a few, and are key pieces of the change management success puzzle.

“Change management is as much a science as it is an art, requiring strategic foresight, thorough planning and a deep understanding of human behavior,” says Dr. Jennifer Nash, leadership consultant and author of Be Human, Lead Human.

READ: PEX Guide: What is change management?

1. Change readiness

Change readiness should be the first step to ensuring that individuals and organizations are prepared and aligned with change vision, says Andrea Schnepf, managing director at nepf LLC. “This is like getting ready for the big journey. Before we start, we need to make sure everyone has the right map, knows where we’re going and feels excited.” When employees feel ready and equipped to navigate the transition, they are more likely to embrace new initiatives with enthusiasm and an open mindset, she adds.

Deciding and understanding exactly what needs to be changed is also important in this first step, says Mohan Madhurakavi, chief evangelist of digital transformation at Kissflow. “This can include the process or the system. Undoubtedly, changes could lead to greater efficiency and survival, or meeting a mandate, benefitting the company.”

2. Communication and transparency

Communication and transparency are key to change management, keeping people informed, engaged and aligned with change. “It involves open and transparent dialogue about the reasons for change, the expected outcomes and how individuals can contribute,” says Dennis. Most management teams fail to communicate enough, saying things like “well I’ve told them” without appreciating that a clear and consistent message is required with very regular updates and progress reports, particularly acknowledging early adopters and positive ambassadors of the change, Dennis adds.

“Change communications should go out via multiple channels, be consistent and ensure that everyone is in the loop,” says Nash. Additionally, providing clear pathways for feedback can help employees feel heard and valued during an uncertain time. “Helping employees understand why the change is necessary, how it will personally impact them and how they fit into the future state is crucial to successful change efforts,” she adds. Most often, it is precisely this human element of change that is overlooked, resulting in failed change endeavors.

3. Strategic vision and leadership

Leadership with a clear, compelling vision provides the necessary direction for change initiatives. “It helps align the organization towards common goals, fostering a sense of purpose and confidence among employees,” says Kapoor. Leaders must not only champion the change but embody it and actively demonstrate its benefits.

For example, a CEO telling an organization they should focus on continuous learning and development is far less effective than the CEO who actively leads and participates in learning sessions themselves, says Scott Simari, principal at Sendero Consulting. “This principle of leading by example is often overlooked by organizations when attempting to implement effective change management, although it has a measurable impact on change adoption and efficacy.”

4. Social processes and human relationships

Effective change management also rests on an understanding of social processes and human relationships, says Steve Hearsum, founder of Edge + Stretch and author of No Silver Bullet: Bursting the bubble of the organizational quick fix. “I have seen too many organizations struggle because anxiety leads key decision makers to rely on ‘tools’ as a short cut. Ask anyone who has been on the end of poorly managed change, one of the first things they will say was lacking is the ability of those in charge to communicate well and in an adult way.”

This is about making sure actions match goals. Moreover, behavioral alignment ensures that change initiatives resonate with the existing behaviors of the organization, says Schnepf. “By understanding how beliefs and values influence behaviors, organizations can design interventions that feel natural and congruent, which reduces resistance and increases buy-in.”

5. Cultural alignment

Change often involves shifts in organizational culture. Work is needed to help align new initiatives with the existing culture and to guide the organization through a cultural transformation. “This usually takes much more time than management is prepared to countenance, but short-cuts don’t work,” says Dennis. Changing culture takes investment, particularly of senior management’s time; if they make this investment then they will get dividends, otherwise they will reap resistance and the whole process will take longer.

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6. Employee and stakeholder involvement

Equally important is involving employees and stakeholders in the change process, says Nash. “When stakeholders contribute ideas and take ownership, they are more likely to accept and champion change. This bottom-up approach can also uncover valuable insights and perspectives that a purely top-down strategy might miss.” Working inclusively, representatives from affected areas should be informed, ensuring that key changes are well thought out but also making room for mistakes to happen and for adjustments to take place.

If a group or department is specifically affected by change, this should be handled at the organizational level to ensure all team members are aligned on the process of change and the intended results. “If only a few individuals will be affected, they should be motivated by other means to encourage adopting this change,” says Madhurakav.

By empathizing with stakeholders, those designing and leading change can address real pain points and deliver tangible benefits. “When individuals feel heard and see their input reflected in the change process, they are more likely to support the initiative,” adds Schnepf.

7. Executive sponsorship

Sponsorship, particularly executive sponsorship, is one of the most important elements of effective change management, Simari says. “Great executives foster organizational buy-in by showing their organization that they’re making the right decision versus simply telling them.” It’s imperative to achieve sponsorship from executives who lead by example and understand organizational capabilities and sentiment, Simari adds. “Like exercise equipment, it’s not owning the equipment that impacts results, it’s the way you use it.”

8. Change management versus change practice

Another key factor is understanding the difference between change management and change practice. “The former can be construed as glorified project management, with an emphasis on charts and deploying tools and models,” says Hearsum. A tool is less important than who wields it and with what intent, and a methodology such as Prosci – a structured, adaptable, repeatable approach to enable individuals to successfully move through changes –is dependent on the ability of those deploying it to facilitate and enter into dialogue, he adds.

9. Risk management

Implementing changes without proper preparation and planning can lead to unforeseen risks. Effective change management requires the identification of potential risks, mitigation strategies and contingency plans to address issues that may arise. “It’s incredibly important to ask the question: What are the unintended consequences of our decisions? Thorough planning helps organizations anticipate potential challenges, allocate resources effectively and establish a roadmap for change process,” says Dennis. This includes identifying milestones, timelines and measurable objectives.

10. Success measurement

Establishing mechanisms to monitor progress, gather feedback and assess the impact of change allows organizations to make informed adjustments. “Continuous feedback loops facilitate ongoing improvement and course correction,” Dennis says. It’s important to establish metrics and key performance indicators (KPIs) as they allow an organization to assess the impact of changes on performance and adjust strategies if needed. “Many change initiatives are measured just according to criteria set by the finance department, and these tend to be very short-term,” Dennis adds. For example, during a merger or acquisition, most people driving the deal are incentivized by the money made at the deal and the effects of the deal six months later must be borne by those “holding the baby” – which are often very expensive and were not properly factored in, he says.

“It’s more difficult but just as important to measure things like churn, employee and customer satisfaction and absenteeism – in other words the human factors which have an indirect but longer term and nevertheless significant potential cost.”

11. Digital and technology adoption

While neither are a panacea, digital and technology adoption play a key role in supporting change management by highlighting the importance of improving software utilization to boost efficiency and productivity within enterprises. However, resistance and a lack of alignment of technology and business goals can have very negative impacts on change projects. A survey by Deloitte found that 70 percent of employees fear that automation and other technological advancements will negatively impact their jobs. “To address this, foster a culture of digital literacy; highlight the benefits of technology, emphasizing its positive impact on both individual roles and organizational success,” says Kapoor.

Likewise, a survey by PwC revealed that 45 percent of executives believe their company’s digital initiatives aren’t aligned with their business strategies. “To ensure a clear and cohesive alignment between technological investments and overarching business objectives, create cross-functional teams that bridge the gap between IT and business units, fostering collaboration and shared goals,” Kapoor adds.

WATCH: Why digital adoption is pivotal for change management in 2024

12. Capability building

Change management is augmented by capability building, which provides the necessary upskilling and resources for individuals to excel in new environments. “By empowering employees with the skills and knowledge they need, organizations create a sense of ownership and accountability, which leads to a more engaged and adaptable workforce,” says Schnepf.

However, many organizations struggle to define what they mean by building change capability. “I notice how often change capability is regarded as something to be ‘built’ within a center of excellence,” says Schnepf. Modelling what “good” looks like is useful, and without recognizing that distributed and adaptive change practice in key roles throughout an organization is required, you end up with specialists who are often over worked and stressed. “As one senior leader said to me once of their change specialists, ‘we need these people to operate at several levels above their pay grade.’”

13. Training and education

Providing the necessary skills and knowledge for employees to adapt to changes and new processes is crucial too. Training programs can ensure that individuals are equipped to perform their roles in the changed environment, reducing resistance. “Develop robust training programs that cater to various skill levels within the organization,” says Kapoor. “Encourage a culture of continuous learning and provide resources for upskilling to ensure everyone is equipped for the journey.”

14. Sustainable results

Sustainability is another important factor of change management – assessing whether changes will create lasting impacts rather than short-term fixes. It’s easy to take a systemic lens to proposed ideas that often won’t actually change the key things that are causing the issue in the long-term, says Dennis. “I worked with a client that had spent a great deal of money on a study that recommended that corridors be made wider in the headquarters to accommodate greater traffic of paperwork (yes, really!), when the real question was: “Do we need this paperwork at all?” Asking the right questions ensures that the right improvements are embedded into the organization’s processes, creating a foundation for continuous improvement.”

This involves developing a mindset that views change as a constant and embraces continuous improvement. “Ensuring that changes become ingrained in the organization’s culture requires sustainability planning and businesses need to establish mechanisms for maintaining and reinforcing the new processes over the long term,” Dennis adds.

15. Adaptability and flexibility

Organizations must be flexible in adjusting their strategies based on feedback, evolving circumstances and lessons learned during change processes. “The business environment is dynamic and change initiatives may need to adapt to unforeseen challenges,” says Kapoor. An organization’s ability to remain flexible and adaptable, coupled with regular monitoring and evaluation, ensures it can navigate uncertainties, make data-driven adjustments and maintain momentum. “Rigidity and a lack of evaluation can hinder progress and lead to project failure,” she adds.

For example, changing working conditions can prove beneficial. “This can include work location such as working from home, work timings, team dynamics and reporting structures,” says Madhurakavi. “While most of these changes can be internal, this can be a huge motivational issue and cause of employee churn.”

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