A new paradigm: effective change management

February 2022  |  FEATURE | BOARDROOM INTELLIGENCE

Financier Worldwide Magazine

February 2022 Issue

Organisational change has loomed large in the minds of virtually all businesses for nigh on two years, the ‘new normal’ engendered by the global coronavirus (COVID-19) pandemic having highlighted the need for a new paradigm.

For many, change management is the means of achieving that paradigm. Broadly defined as a systematic approach to dealing with the transition or transformation of an organisation’s goals, processes or technologies, change management aims to implement strategies for effecting change, controlling change and helping people adapt to change.

Structured and holistic, over the last two decades, and particularly since the global pandemic emerged to wreak havoc on the workplace status quo, the discipline of change management has grown and evolved to become a key process for those implementing change in their organisations, helping them to achieve their objectives and sustain success.

“Change management has come further to the forefront because of the pandemic-related ‘new normal’,” says Eric Freshour, director of people and productivity at West Monroe. “This is a result of the increasing attention afforded to employee experience, engagement and wellbeing. Additionally, it is a very competitive job market – even if employers have not bought into the idea of the ‘great resignation’.

“Employees want their employer to care about them not only as professionals, but also as people,” he continues. “Change management and related functions focus on employees’ experience and wellbeing, and is a genuine way in which such matters can be addressed.”

Enacting change

Before an organisation embarks on a programme of change, it should have a clear strategy in place, based on already agreed objectives and outlined plans. Moreover, the details and practicalities of how change will be implemented will depend on desired outcomes and on the approach to be taken, whether top-down, bottom-up or a mixture of both.

According to Jonny Gifford, senior adviser for organisational behaviour at the Chartered Institute of Personnel and Development (CIPD), research points to several principles that give a useful guide to helping employees cope with organisational change.

First, employees need to feel that they belong. They need to feel connected to other people in the organisation, having social cohesion and shared common goals and interests. Corporate statements on purpose, vision and values can help with this, but they must feel genuine and meaningful.

Second, employees need to understand change: what is the reality the organisation is focusing on? What are the assumptions about problems and solutions, including the cause-and-effect relationships? If this is not clear, the organisation needs to build consensus on it.

Third, employees need a sense of control, to feel that their behaviour will affect outcomes. Otherwise, why bother? One upshot of this is that it is good to give employees autonomy or self-determination over aspects of their work where possible – to empower them to make choices within their jobs.

Finally, employees need to feel good about themselves, either by maintaining self-esteem – seeing themselves as worthy – or seeing opportunity for self-improvement. As well as looking for opportunities to reinforce these positives, it is useful to look at the negatives too, especially if there is resistance to change.

“Organisational change can produce negative feelings, like insecurity,” explains Mr Gifford. “People may feel excluded or punished, or that there is a mismatch between changes and their skillsets or values. These things should be approached openly and in a supportive way, so that people can work through them instead of avoiding them.”

Evaluating change

Alongside an effective change management programme, it is important for organisations to have an ongoing mechanism for measuring value realisation, monitoring and evaluating baseline metrics and key performance indicators on a regular basis.

“It truly is a blend of ‘art’ and ‘science’ as it pertains to change management,” asserts Mr Freshour. “It is important to develop and execute plans, understand resourcing and time commitments, and account for interdependencies. At the same time, change management needs to be dynamic and meet people where they are.

“That is why two-way communication mechanisms are so important,” he continues. “Communication, learning plans and other change management tactics cannot be static. They need to consider employee reactions and emotions. There is so much change happening in organisations, and in personal lives too, that being empathetic is a must.”

Pace of change

Although it can be a slow, painful and expensive process, change management can help organisations to survive and thrive – essential in a society where rapid change has become the norm and new technologies are constantly being introduced.

“Change management strategies will have to continue focusing more on employee experience and fulfilment,” believes Mr Freshour. “People are looking for more in their jobs. Additionally, it is important to use digital tools to make communication and collaboration more seamless in a hybrid workplace setting.

“Given the rapid pace of change, individuals within organisations that are fully dedicated to change management and employee experience are likely to be needed,” he concludes. “This cannot be a part-time or ‘off the side of the desk’ type focus, but a level of commitment and resources that employees expect and employers must deliver.”

© Financier Worldwide

BY

Fraser Tennant