How Change Management Is Inevitable For Any Organization
Without change management, there is a massive risk of failure in implementing a new business idea or transformation strategy for an organization. Change involves adopting a new thought process, embracing new technologies and pushing ourselves out of our comfort zone. It is a key source of competitive advantage and survival. If the need for change is recognized early then the number of options for successful implementation will be more. According to a report from McKinsey & Company 70% of change programs fail and this is mainly due to employee resistance and lack of management support. In our globalized and inter-connected economy organizations deal with continually shifting market conditions, customer demands, technologies and competition which leads to only two options i.e., adapt or perish. They must continually re-evaluate their business model and ask questions about the appropriateness of the strategy and tactics they are employing to reach their long term goals. Change management is thoughtfully and carefully re-aligning the organization based on the answers but the problem with change is that employees who are used to doing things in a predetermined format up until then will resist in adapting to this new way of working. Many people equate change with chaos but we should remember that the only thing constant is change. Managing change is hard, but part of the problem is that there is little consensus on what factors most influence change programs and the key reason for this is that each executive looks at an initiative from their own viewpoint and personal experiences. For a large organization there is a risk of executives using different approaches in different parts of it which exacerbates the turmoil that usually accompanies change. Though culture, leadership and motivation are important these factors alone will not be enough for the success of change programs. Moreover it’s an uphill task to change employee attitude and relationships as they are deeply ingrained in people and organizations.
The role of employees in organizational change management
Big organizational transformations like mergers and acquisitions, divestitures, downsizing or technology upgrades lead to employee uncertainty and anxiety. Maintaining and measuring employee engagement and other work experiences in the midst of organizational change is a key element in the success of a change initiative. Engaged, inspired employees help in advancing an organizations mission and effectiveness. The success of a change management initiative will depend on an organizations ability to engage employees and activate them as bulwarks for any unforeseen consequences that might arise as a result. Most of the change programs fall into a grey area where it is difficult to ascertain the success or failure of them. Change managers might make the mistake of thinking communication as engagement but the former alone will not help in easing the concerns of the employees. They must also take into account the additional effort that employees must make to cope with a change and devise a plan for educating employees on how their daily tasks will change. A strong executive leadership is the need of the hour for communicating the vision and instilling confidence in the employees. Whenever possible the managers should involve their team in decision making so as to minimize uncertainty and increase transparency. They should create an environment where the initiative will be led by a motivated and cohesive team. Changing the rewards system coupled with training sessions will help in aligning the employees interest’s with that of the change programs. Driving successful individual transitions should be the central focus of the activities in organizational change management.
Managing employee engagement during times of change
An organization needs to customize interactions that meet employee engagement needs during change. They generally would want to have a strong connection to managers and co-workers. This need is heightened during times of change when their status quo, certainty and autonomy are all threatened. Executives must take charge and engage in two-way dialogue to listen to and validate employee concerns as well as convey all the relevant information about what is changing. Finding innovative ways to build team coherence is also important for an individual to stay engaged through change programs. Employees always fear that they have some loss of control with any transformation event. The risk is that employees may feel change is occurring around them rather than feeling that they are very much a part of the process. Creating employee centric and operational work groups where they can express their thoughts, respond to multiple diverse scenarios before they happen and have a say in the results are all methods to involve people through the change rather than simply being beneficiaries of change. Organizations must outline a clear career path for their employees as they might have fears about their future and this may lead to an increase in the attrition rate whereby the firm will be at risk of losing out on key talent. Executives and managers must make sure that all employee concerns are addresses in a timely manner. Skill building and development is part and parcel of any organization for their employees but it assumes a significant importance in times of implementing change programs. If the outcome of the change is the same employee doing new things with the same old skills then the very purpose of it is defeated. Having a clear idea of the skill gaps that are created by transformation initiatives is pertinent for an organization to devise an efficient development plan that focuses on what is required to deliver value.
Conclusion
Employees play a vital role in the change management of any organization and it is of paramount importance that they are at the center of it all. Change managers must be made accountable for increasing the employee engagement by having regular one-one sessions and actively taking feedback on how the transformation initiatives are impacting their day to day responsibilities. With change being the norm, organizations that recognize the importance of engagement will have a significant edge over their competitors.
