Why does change management matter?
Whether you're a company of 20 people or 20,000, change is unavoidable and something to be embraced. Through carefully planned change management, your organisation can successfully navigate periods of transition, improve your processes, and even boost productivity. But what is change management? Why does it matter? And what are the best ways to approach it?
What is Change Management?
Change management relates to the processes and approaches taken by a business when making either short or long-term organisational changes. More specifically, it also refers to the stages that a company goes through when trying to evolve and the methods required to do so. This could include optimising use of resources, reallocating budget, and improving business processes — whatever is required to push an organisation forward.
Over the past three years, change management in organisations has been essential due to disruptions caused by lockdowns, supply chain issues, social distancing, and more. Sometimes change is a choice, other times it’s thrust upon us — the most important thing for organisations is to be open and willing to change whenever it arrives.
Importance of change management
Any sort of major change at an organisational level will have an impact on employees, so it’s important to be aware of how any transitions could impact their performance or wellbeing. The change management process is vitally important to organisations of all sizes, and it requires detailed planning, clearly defining your goals, maintaining good communication with staff, and listening to employees' feedback during periods of transition.
Managing a successful change in an organisation can increase employees’ morale, boost job enrichment, and result in improved teamwork. These factors can then directly and positively affect quality of work, reduce costs, and shorten production cycles.
Benefits of change management
When organisational change management is carried out effectively, it allows the company to maintain constant evolution while not having a negative impact on day-to-day operations. As a result, employees can remain motivated and productive even when new technologies or procedures are introduced. While this may sound straightforward, it’s important to note that any type of change in the workplace can intimidate and frustrate employees – especially those who have become accustomed to specific ways of working. To combat this, and to ensure your organisational change management goes smoothly, planning is everything.
Building a change management plan for an enterprise
To ensure your change management runs smoothly, detailed and in-depth planning is paramount. Establish your plan early and maintain constant dialogue with all stakeholders. If organisational change involves recruiting new employees, you can use LinkedIn Talent Insights and Recruiter products to help you find the right fit. Whatever change your company is preparing to undertake, the following steps are a great guide to help you navigate the transitionary period.
1. Demonstrate the reason for the change
Never assume that everyone in your organisation knows why change is needed. If stakeholders understand the reasons for change, they’ll be less likely to resist. Facilitating open and honest discourse with employees is key throughout the process, as it can build trust and patience.
2. Outline who will be impacted and how
Major organisational changes can be a great cause of anxiety for employees. Questions surrounding job security, company structure, and processes can arise. Address these concerns early.
3. Create a change management team
Establish clear roles and outline all stakeholders’ responsibilities in order to ensure every aspect of your change management process is being taken care of.
4. Clarify the expected benefits of the change
Outline your expectations early on in the process. Without tangible targets, it’s difficult to measure the success of your change management.
5. Establish milestones, goals, and potential blockers to success
By clearly defining both your goals and potential blockers, it becomes much easier to plan the road to success. LinkedIn Learning can help you create learning paths aligned with your strategic goals so that every employee is equipped to face changes.
6. Create an internal communication plan
It’s important for stakeholders to know what’s going on throughout this process. Update your organisation at regular intervals to provide honest, accurate, and positive news to your staff.
Commonly used change management models
There are many change management models designed to help organisations through the process of planning and implementing successful change. There’s no one right answer for how best to implement change, however the following three models provide excellent guidelines for businesses of all sizes.
The McKinsey 7-S model
Developed by McKinsey & Company consultants, the McKinsey 7-S model involves breaking change management into seven components:
1. Strategy
2. Structure of your company
3. Systems and processes
4. Shared company values and culture
5. Style or manner of the work
6. Staff involved
7. Skills your staff have
By breaking down your organisational change management into smaller core components, it’s easier to avoid overlooking any important factors.
Unfreeze:
The preparation stage. Begin by analysing how your processes work now, and try to understand what needs to change to get the intended results. In this stage, you also begin communicating with employees about what to expect during this process and to set expectations.
Change:
The implementation phase. Begin putting the change into practice. Maintain communication with your stakeholders and provide support for all employees involved.
Refreeze:
The review phase. To avoid falling back into bad habits, old processes, or problems, check in and make sure the change sticks. Review how well the new processes work and assess whether you’ve achieved your change management goals.
The ADKAR model uses five main goals to base your change management process on.
Awareness
Ensure everyone in your organisation understands the need for change.
Desire
Make your case so that everyone involved wants the change.
Knowledge
Provide the information each person needs on how to accomplish their part of the change process.
Ability
Make sure all employees have the skills and training they need to successfully do their part.
Reinforcement
Continue to work with employees and stakeholders after the change is accomplished, to make sure they stay on top of new processes or systems.
Final thoughts
Change management is an essential practice for every organisation, regardless of size or industry. By understanding the benefits and learning how to implement the right structure for your business, you can help to make the transition process as smooth as possible. Whether you’re trying to boost productivity or improve processes, it’s important to plan early, communicate with your staff, and never lose sight of your original goals.