What is Change Management?

Change Management is an approach that aims to ensure the success of change initiatives by engaging with people, ensuring they are supported, prepared, and capable of achieving business goals.

The purpose of change management is to implement strategies for effecting and helping people to adapt to change. In today's fast-paced environment, with rapid technological advancements and evolving market conditions, the importance of change management cannot be overstated.

Effective change management offers numerous benefits for employees, customers, and organisations. Here’s what each group stands to gain:

Clear communication reduces employees' uncertainty and anxiety about changes, making the transition smoother and less stressful. Involving employees in the change process fosters a sense of ownership and inclusion, boosting their engagement and morale. Change initiatives also often come with training and development opportunities, helping employees acquire new skills and advance their careers.

Through well-managed change processes, employees become more adaptable and resilient to future changes. Successfully implemented changes can lead to more efficient processes, better working conditions, and a more positive work environment, ultimately improving job satisfaction.

Effective change management can improve product quality, service delivery, and overall customer interactions, leading to a better customer experience.

• Well-handled changes lead to innovation and better products and services that meet customers' evolving needs and preferences.
• Good change management ensures that changes do not disrupt customer service.

• The benefits gained by employees from well-handled change also contribute to organisational success, as employees become comfortable with new tools and processes, buy into changes, and are less likely to leave, which helps retain valuable talent. Employees who are accustomed to change and equipped with the right tools also adapt more quickly to future changes.
• Similarly, the benefits for customers of effective change have positive flow-on effects for businesses. Clear communication and smooth transitions build trust and loyalty, as customers see the organisation managing changes competently. Successfully implementing new technologies and processes may better meet customer needs, improving the company's reputation.
• Additionally, effective change management ensures:
  • Change initiatives are aligned with strategic goals.
  • Streamlined processes and better resource utilisation, leading to higher productivity and efficiency.
  • Smooth transitions minimising downtime and disruptions.
  • Potential issues are identified early, reducing costs associated with errors, and rework.
  • The organisation’s reputation is enhanced among stakeholders as strong leadership and strategic vision has been demonstrated.
  • The organisations can respond quickly to market shifts, giving them a competitive edge.
  • Fostering a culture of trust and transparency encourages innovation and continuous improvement, driving long-term growth.

Some of the common issues that occur when change management is not handled well include:

• Employees may resist changes, leading to low morale, decreased productivity, and increased turnover. Sudden or poorly managed changes can disrupt workflows and processes, causing confusion and inefficiency and high levels of stress and dissatisfaction. This may lead to the departure of valuable employees, resulting in a loss of institutional knowledge and experience.
• Disruptions in service, product quality, or customer support due to poorly managed change can lead to customer dissatisfaction and loss of business.
• Inefficiencies, rework, and delays caused by unmanaged changes can lead to higher operational costs.
• Change initiatives are more likely to fail without proper management, leading to wasted resources and missed opportunities.
• Failure to manage change effectively can harm the organisation's reputation among stakeholders, including employees, customers, and investors.
• Ignoring change management can lead to non-compliance with new regulations or industry standards, resulting in legal penalties and fines.
• Organisations that fail to manage change effectively may fall behind competitors who can adapt more quickly and efficiently.

Change Managements core principles assist in developing and understanding change management plans and how they affect the wider business.

The Core Principles APMG Change Management Foundation and Practitioner Courses explain are:

• Ensure you understand your organisation and the nature of the change, tailoring your approach to fit. If appropriate, structure your approach in an agile manner, allowing it to evolve with the change.
• Recognise human responses to change and how to manage them. Develop and sustain motivation through change and use learning to build people’s competence.
• Set clear expectations for change sponsors and other leaders, helping them operate as effective change leaders. Maximise the potential of teams to support and drive change.
• Plan and gain stakeholders’ support. Utilise various communication channels to engage hearts and minds.
• Develop professional skills to assess the impact and severity of changes, address resistance and use change analytics effectively.

Successful change management requires changes to behaviours, so there is a significant focus on people, culture and behaviours needed to:

• prepare the organisation,
• demonstrate the change,
• encourage buy-in,
• embed new behavioural norms and expectations around the altered conditions.

Organisational change management begins and ends with the individuals involved, requiring an understanding of resistance, organisational defence routines, pervading cultures and the engagement processes required to bring people along.

A Change Formula (like the one below) also helps to break down and understand what is needed within the business:

C=[ABD]>X

• C: Change
• A: Level of dissatisfaction with the status quo
• B: Desirability of the proposed change or end state
• D: Practicality of the change (knowledge of the next practical steps, minimal risk and disruption)
• X: Perceived ‘cost’ of the change.

To ensure that value is created and sustained from organisational change initiatives, benefits must be managed throughout the entire investment life cycle. This lifecycle has 4 stages (as referenced in the APMG Change Management Study Guide):

• Discovery (starting Point)
• Ideas
• Action (Plan, Do, Review)
• Priorities

Change management tools and models are essential for effectively managing and implementing organisational change. They provide structured approaches and frameworks that guide the process, making it more systematic and manageable.

The Prosci® Change Management Model is a widely used framework. The model is designed to help organisations implement change by focusing on individual transitions. The core of the Prosci methodology is the ADKAR® Model, which stands for Awareness, Desire, Knowledge, Ability, and Reinforcement.

There is also Kelman’s three levels of adoption which is made up of:

• Compliance: ‘I am doing this because I have to’
• Identification: ‘I understand why we are doing this and the impact of not doing this’
• Internalisation: ‘This is now part of thinking and influences my decisions. We should find ways of doing it more/better’

Agile Change Management approaches are now widely used in real-world implementation strategies, focusing on team collaboration and effective communication. These approaches push tactical decisions down the hierarchy as far as possible, involve frequent releases, anticipate change, and emphasise the need to inspect and adapt work.

A solid foundation of change management knowledge is helpful when using any models or tools, which our Change Management Foundation course can provide.

A change management sponsor plays a crucial role in the successful implementation of organisational change. The sponsor is typically a senior leader or executive within the organisation who provides the necessary authority, resources, and support to drive the change initiative.

People managers, often referred to as line managers or mid-level managers, play a pivotal role in the change management process. Their responsibilities involve bridging the gap between the strategic direction set by senior leaders and the operational execution by employees. It is their job to communicate the change, support and advocate for the change, and manage resistance.

Project managers and change practitioners have distinct but complementary roles within change management. Both are essential for ensuring that changes are effectively planned, implemented, and sustained.

Project Managers develop detailed project plans, schedules and timelines which are essential to project progress tracking. Change Practitioners evaluate an organisations readiness for change and develop plans to facilitate this. Change Practitioners focus on the human side of change.

Creating a change-ready organisation requires a strategic approach that integrates developing change management competencies and fostering a culture that embraces change. This strategy should begin with a thorough assessment of the current organisational culture and readiness for change, identifying gaps and areas for improvement. Leadership should champion the change by articulating a clear vision and aligning it with the organisation's strategic goals.

Providing comprehensive training programs to build change management skills in the organisation is essential. Practical experience should be offered through involvement in real change projects, supported by coaching and mentoring from experienced change managers.

Effective communication strategies should be implemented to keep all stakeholders informed and engaged.

Developing change management competencies should focus on enhancing leadership and influence, effective communication, stakeholder management, project management, training and development, resistance management, and sustainability.

Regularly evaluating and refining change management processes based on feedback and performance metrics ensures the organisation remains agile and prepared for future challenges.

By embedding these elements into the organisational fabric, a change-ready organisation can be cultivated, capable of thriving amidst constant change.

Gintare Geleziunaite is interviewed on how to lead a successful change strategy.

From being challenged to create a change management plan from scratch in a company spanning 108 countries worldwide, to providing strategic direction, methodology, and tools to a 250,000-strong organisation, Gintare shares the tips these experiences have helped her learn.

In summary, effectively managing change is essential for organisational success and resilience in today’s dynamic business environment.

Effective change management can lead to successful implementation of new initiatives, enhanced performance, and a competitive edge. However, risks such as resistance to change, inadequate communication, and insufficient training can hinder the success of change efforts.

To build a successful change capability, organisations must integrate strategic planning with practical execution. This includes defining a clear vision, aligning change initiatives with organisational goals, investing in skill development, and fostering a culture that embraces change.

By balancing the technical and human aspects of change management and continuously refining processes based on feedback and performance metrics, organisations can enhance their ability to navigate change effectively, drive successful outcomes, and achieve long-term success.