Change management has been a hot topic in business for decades and reaches as far back as the 1930s. As the old saying goes, “change is one of the few constants we can rely on”, and so it is no surprise that organizations recognize and work to minimize the disruption that an ever-evolving business landscape creates.
In recent years, that change has undergone rebranding and digital transformation is one of the latest iterations of this ongoing business revolution. The details might differ, for example we are now looking at how digital tools can bring about greater value for our customers, but the principles of good change management all apply. They are vital for ensuring the necessary cultural shift that will support effective growth and evolution.
One of the best approaches to change management that has emerged is the Lippitt-Knoster model, a perspective which identifies six key elements every organization needs in order to effect change well.
When we look at these six vital pillars it is immediately obvious that they are all equally important in our digital transformation efforts today.
Vision
Without a vision, no one knows where they are meant to be going and confusion is the result. Digital transformation needs to be driven by a sense of purpose. Businesses need to understand if the digital transformation journey is about reducing friction in internal processes to increase productivity or accelerating customer outcomes.
Even aspirational ideas need to be articulated so that those involved have a ‘why’ they can grasp and aim for. As continuous improvement takes hold, teams that understand the intent can innovate and grow without needing their hands held.
Consensus
Not everyone wants to change and those who oppose it can unintentionally end up sabotaging efforts. While digital transformation looks to cutting-edge technological solutions to improve the way teams work, they are the ones that make up a business at the end of the day and they need to be on board.
Like all change management, the culture of the organization is vital to its success and it is in the culture that consensus is grown. The drive for digital transformation needs to be communicated from the top-down. The willingness to move quickly, ‘fail fast’ and adopt agile methodologies must be seen to be part of the DNA of the business in a way that encourages participation, not partisanship.
Skills
While digital natives take to new technology like ducks to water, the workforce is currently aging dramatically. According to the US Bureau of Labor Statistics, one-quarter of the workforce will be over the age of 55 in 2024.
The ‘digital’ part of digital transformation can seem threatening to many who are not proficient with complex technological solutions. They need careful training, support and the right tools. Tools and platforms built with the end-user in mind can help alleviate that anxiety, allowing for rapid onboarding through intuitive, user-friendly and well-supported frameworks.
Incentives
In the 1985 song Money for Nothing, Dire Straits created a blue-collar anthem when they sang, “That ain’t workin’; that’s the way you do it” in response to the apparent ease of the rock ‘n’ roll lifestyle. The kind of admiration the song gained can be a driver for digital transformation within an organization, overcoming resistance to new systems and processes.
As robotic process automation (RPA) tools and automated workflows reduce repetitive manual tasks, teams can focus on value-adding work that frees them up to be more engaged and effective. It might not quite be ‘money for nothing’, but eliminating pain points in the working day can bring on board a lot of supporters.
Resources
It is difficult to embrace new approaches to business when you do not have the time, resources and technology to do so. Without adequate resourcing, digital transformation is doomed to grind to a frustrated halt.
If processes are to be properly reviewed, revised, tested and deployed, teams need the time and capacity to do so. Where specialists are involved in analyzing business practices, they need access to the experts – the people on the ‘shop floor’ – in order to really grasp where improvements can be found. The immediate cost is part of the risk but is balanced by better outcomes and an effective change experience.
Action plan
While Bob Ross reframed mistakes in his paintings as ”happy little accidents”, they were not really accidents at all. They were the result of an intentional approach to producing a quality result that sometimes did not pan out quite as planned. The key point is that there was a plan.
Without an action plan, any digital transformation initiative is unlikely to achieve even the happy kind of accidental result, as false starts and dead ends suck up resources and the desire to commit more. Intentionality, directed through strategic planning, ensures that even the inevitable failures that occur in a fast-changing environment can be learnt from and built upon to ensure the ultimate outcome is one that the whole business can look on with pride.
Change management is not a new idea, but we often lose sight of how broadly applicable it is in the rush to the latest business trends. Digital transformation is a movement which is here to stay but owes a great deal to the foundation of change management and we would do well to remember that as we seek better ways to do business.
Has your business applied any of these six principles in an effort to manage change? Let us know in the comments below.