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On a regular basis, companies board on transformation initiatives that help them in improving the performance of operations, helping to meet industry obligations, address regulatory or key performance issues etc. Once these projects are fully implemented and in use, it is the people who need to learn to adjust to the new requirements of their tasks and possibly even change the way they do things. As a part of their change management strategy, companies use communication & training plans to prepare, support and guide individuals who are working in and with the organization to successfully adopt the change.
Conversely, change management needs to be present in all phases of a transformation, not halfway through. Change management is generally perceived as a simple method that consists of a communication plan outlining what is changing and how it will look or a change in roles. However, in its true sense, change management requires a much broader reach, from obtaining business buy-in till holding a change stick to continuing to drive the change.
Change management is the biggest challenge that organizations face nowadays in their efforts to effectively implement change initiatives and get the most out of them. Expecting people who are currently working in one way to, through the introduction of new technology, process, or policy, work in a different and more effective way may be a sheer delusion.
It's people who resist new ways of thinking. Just because companies have managed change through process and policy doesn't mean that it's scalable or meets the needs of the modern, resilient organization. It's time to embrace new ways of thinking and working.
More often than not, companies consider change management as a separate initiative, which is why most of the transformation initiatives are either delayed or do not sustain.
Enterprises-level changes are on the rise for businesses due to ever-changing user demands and sectoral requirements. For companies, change management may still be a buzzword, but it is a phenomenon worth considering unlocking greater value. To reach diverse beneficiaries (direct or indirect) of the change and thrive in the long run, organizations need to follow a structured and well-resourced approach to change management to address all potential complications in the transition.
Broadly, change management is an enabling framework for managing the people side of the change.
McKinsey research finds three elements i.e., governance, culture, and workforce planning have an outsized impact on organizational efficacy while on a transformation expedition. Organizations that focus on transforming culture and building capabilities during a transformation are 2.5 times more likely to succeed.
Change management is often mind-boggling. Conventionally, when change management is discussed, it is about how to manage change in organizations, how to cope with a changing environment, and how to create systems and processes that can adapt to change and innovation.
IT Change Management is very common. Planning to-be IT architecture, operations and standards, creating an IT transformation roadmap, deploying IT operations and services, implementing IT governance, optimizing IT operations and services, change requests and managing the IT lifecycle are all part and parcel of IT management.
Organizational Change Management addresses the human capital side. It deals with the employees who have to change their ways of working, roles & responsibilities and involves setting up a foundation with respect to governance and assessing organizational change readiness.
Then there’s a CX Change Management which is not very popular. Companies who put the customer at the center of everything they do to accelerate growth use change management tools for their CX transformation initiatives. Becoming a customer-obsessed organization requires change. It requires being bold and to manage that change, companies need CX Change Management.
Managing change is essential to garner continued organizational success. Change will rarely be welcomed, but proper management can minimize negative reactions. Devising a framework that encompasses the wisely chosen change management models and tools will functions as a compass, pointing company towards the true North, and the path to successful change adoption will be much easier to navigate.
There are various change management models, out of which the following models are widely adopted by companies that suit their organizational transformation goals:
Lewin’s Change Management Model is a 3-stage model that breaks the changes into three manageable chunks:
· Unfreeze- Preparing for the desired change
· Change- Implementing the desired change
· Refreeze- Solidifying the desired change
ADKAR Model puts focus on the people behind the change:
· Awareness (of the need to change)
· Desire (to participate in and support the change)
· Knowledge (on how to change)
· Ability (to implement required skills and behaviors)
· Reinforcement (to sustain the change)
Kotter’s Theory is developed by Harvard Business School professor John P. Kotter. Kotter’s Theory for change management is divided into eight stages:
· Create a sense of urgency
· Build the change team
· Form a strategic vision
· Communicate the vision
· Remove barriers to change
· Focus on short-term wins
· Maintain momentum
· Institute change
The steps defined in change management models can act as a checklist for enlisting the tasks and defining the roadmap for companies embarking on a transformation voyage. Of all the models, fostering a culture and monitoring change outcomes are two important facets, in addition to communication and planning.
Change management is a continual challenge within organizations and one that could sometimes benefit from a third party acting as an advisor. However, companies that are consistently transforming to create business value need to recognize change management as a permanent standalone discipline within.
Transformation has become a new business currency for organizations adding change management will give that currency more resilience and reliance.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
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