To make change happen, you must generate the ownership and energy to execute the plan and change it on the fly – McKinsey & Company.
What is Change Management?
Change management means to plan, initiate, realize, control, and finally stabilize change processes on both, corporate and personal level. Change may cover such diverse problems as for example strategic direction or personal development programs for staff.
Two Types of Change:
- Organizational Development. This is the more gradual and evolutionary approach to change. It bases on the assumption that it is possible to align corporate objectives with the individual employees objectives. In practice, however, this will rarely be possible.
- Reengineering. This is known as corporate transformation or business transformation. It is the more radical form of change management, since it challenges all elements of processes or structures that have evolved over time
The Challenges with Change Management
If you ask employees what they think about change, you will normally find that most people have negative attitudes and perceptions towards change. They have fears of losing their job, their status or their social security, or they are afraid of a higher workload. In many cases, first effects of change on employees, leaders, and on performance levels are negative. These effects include fears, stress, frustration and denial of change. Most employees tend to react with resistance to change rather than seeing change as a chance to initiate improvements. They are afraid of losing something, because they have incomplete information on how the change processes will affect their personal situation in terms of tasks, workload, or responsibilities.
Change Management is still in its infancy as a discipline. On the one hand, it is on most executive’s radar. Global CEO’s acknowledge that managing change is a competitive advantage and that many fail to live up to the expectations. On the other, many organisations have not yet established a Change Management Office, set up a change charter/model or have enough dedicated change resources.
Phases In The Change Process
In order to successfully manage change processes, it is necessary to analyze the phases of this process. Managers need to know in which phase they have to expect what types of situations and problems. Most successful organisations are those that are able to adjust themselves to new conditions quickly. This requires planned learning processes that lead to improved organizational effectiveness. Ideally, employees are able to reflect their own behavior in relation to the organizational context (e.g. processes, products, resources, customers).
Common Stages of Change:
A laggard is referred as the last people in a population to adopt a new system or product. They belong to approximately sixteen percent of the population in the Diffusion of Innovations theory. Laggards typically have an aversion to change and things that trigger change. Laggards are traditionalists and the last to adopt an innovation. Possessing almost no opinion leadership, laggards are localite to the point of being isolates compared to the other adopter categories.
The Consequences of Starting Late:
Scaling-up your Change Capacity:
The proposed conditions for scaling up an organisation’s change capacity are speed, learning, and integration. If those conditions are met, organisations can enable the understanding, engagement, adoption, and endorsement needed for successful change initiatives. They can also simultaneously lay the foundation to achieve the speed, learning and integration needed to evolve.
A conceptual transformation triad framework based on three important trends in organisational change management (agile approaches, design flexibility, and narrative storytelling).The Triads three elements:
1. Mindsets – An Agile, Executive Transformation Partner mindset.
2. Frameworks – A Change Values Framework.
3. Narratives – Storytelling in change contexts and proposes Narratives of New.
Measuring Change Management Success:
1. Focus on two main outputs: awareness and preparedness
2. Quantify qualitative data—if possible
3. Ask managers to hold their teams accountable
4. Measure if the business is prepared for the change, before communicating it to employees
5. Leverage technology to track if communications are impactful
6. Incorporate feedback early on
7. Measure if the change stuck
Relevant Videos About Change
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Market Business News, (2015) ‘Laggards – definition and meaning’. Available at: https://marketbusinessnews.com/financial-glossary/laggards/ [Accessed 25 May 2021]
Kempton, L., (2020) ‘How to start managing change when the change is unclear’, Prosci. Available at: https://blog.prosci.com/how-to-start-managing-change-when-the-change-is-unclear [Accessed 25 May 2021]
McKinsey & Company, (2020) ‘How do we manage the change journey?’. Available at: https://www.mckinsey.com/business-functions/organization/our-insights/how-do-we-manage-the-change-journey [Accessed 25 May 2021]
Recklie, O., (2001) ‘Managing Change – Definition und Phases in Change Processes’. Available at: https://themanager.org/pdf/Change_Phases.PDF [Accessed 25 May 2021]