Why is Change Management #SoCool Again
Last year I was interviewed for a podcast where I was asked what about the biggest challenges I have observed with digital transformation. Some of the options presented to me were choosing the right methodology, talent, picking the right toolset, training and metrics. I acknowledged that those were certainly action items to keep on our radar, but to me the biggest challenge was our ability to shift the organizational mindset to embrace change by understanding the ‘what is changing’ and ‘why does it matter’. I have seen many organizations pursue transformation programs by chasing the actions that are more visible such as methodology and tools while a conversation on culture and change management is rarely even a line item on the plan.
Change management is typically not an area that organically invites many volunteers on transformation programs and therefore it should be a higher priority for leaders. In some organizations, I have seen change management being entirely outsourced because there is a belief that outsiders have a higher chance of influencing change. While it is helpful to have change management consultants mentor and coach leaders and managers, it is critical for the staff to see their leaders and managers lead the change. According to a McKinsey & Co. study, 70 percent of change programs fail to achieve their goals, largely due to employee resistance and lack of management support. The study further adds that when people are truly invested in change it is 30 percent more likely to stick. As the old adage goes, “be the change” is the simplest yet the most effective principle of change management.
In recent years, we have seen stories from early adopters of digital transformation and agile ways of working that they learned the hard way that seeing lasting outcomes from the changes and to sustain the initial interest and enthusiasm is no easy task. This is where change management comes in as real transformative change is about people, value systems and mindsets. While it might be tempting to associate transformation with apps, automation and tools sustainable transformation whose outcomes have an impact on hard and soft metrics, is really about people. If people believe in the change by seeing incremental and ongoing value realized then the probability of success jumps exponentially.
The only change framework that I have used for many years is Kotter’s 8-Step change model. I was introduced to this process by Dr. John Kotter’s groundbreaking work (and book) on ‘Leading Change’. As shown in the visual below, Kotter’s eight steps are anchored on the ‘Big Opportunity’ that is driving the changes. In many organizations, leaders and managers don’t invest enough time to frame their initiative within the context of a big opportunity. As a result, their teams are overwhelmed when the focus of change conversations is mostly centered on the volume of tasks that should be accomplished within a pre-determined timeframe. Imagine this situation to telling your family that they have to be ready for relocating to a new city in the next 2 weeks and the only context you provide is that “its going to be just great”. I don’t have to explain the imminent reaction!
Effective change management requires leaders and managers to invest time in framing the big opportunity and to build a coalition of change agents who can be pragmatic partners in enabling adoption throughout the organization. It is also important to secure buy-in from teams by planning for and demonstrating small wins so that there is improved visibility on ‘why do these changes matter’. I have to emphasize that change management cannot be done through PowerPoint or by publishing big updates to intranet locations. While internal social tools such as Slack can be very handy to push periodic updates on the program, stories on quick wins, testimonials from teams etc., the most effective tool is storytelling through conversations. Change management needs to be a social initiative and is also an exercise in building trust. Therefore, it important to humanize the what, why and who associated with the change initiative so that teams are excited about being part of the change and are willing to inspire their peers.
In a recent Forbes article focused on must-have CIO skills, the authors say that “CIOs have to learn to move from ‘trusted operators’ focusing on efficiency and cost to ‘change instigators’ and ‘business co-creators.”. This is consistent with several recent surveys and studies regarding adoption of agile technology delivery to large digital transformation initiatives. There is clearly a realization in most organizations that investment and commitment to soft initiatives such as change management is critical to energize the people for driving sustained growth, scale and competitive advantage.
After so many years of being dubbed as a topic for MBAs and management journals, I am excited to see organizations and teams look at change management as a core organizational capability. Change management is no longer tagged to a couple of roles. Impactful change can happen only when everyone in the organization is a change agent and commits to being the change. Now that change management is cool again, I have to recognize this achievement by giving it the #SOCOOL hashtag!
Reference:
The CIO’s New Mission: Change Agent: https://www.forbes.com/sites/insights-intelai/2018/09/21/the-cios-new-mission-change-agent/
Kotter’s 8-step process: https://www.kotterinc.com/uniquely-kotter/
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