Every business leader will be familiar with the notion that the corporate world is changing rapidly – faster than at any other time in human history. Faced with this evolving landscape, CEOs now need to think about how they are handling this change to position their company for future growth.
Of course, navigating this landscape also calls for leaders to evaluate their own skill set and determining whether or not they have what it takes to lead a business through a significant change.
Getting the change process right
The pace of change within a company has obviously increased, placing new pressures on organisations to adapt. Rather than simply evolving over time, many businesses are now treating widespread organisational change as an ongoing, permanent process.
While this is certainly the new reality for companies, that doesn’t mean business leaders are responding fast enough. A recent study from McKinsey and Company found that 60 per cent of respondents within businesses have seen an organisational redesign in the last two years, while 85 per cent have experienced one in the last three.
Even though organisational redesigns are occurring regularly, the ability of companies to achieve their outcomes is still muted, with the study suggesting only a quarter of organisational redesigns achieve their stated objectives.
To address this, McKinsey suggested the following nine steps to help navigate this process:
1. Focus first on the longer-term strategic aspirations
2. Take time to survey the scene
3. Be structured about selecting the right blueprint
4. Go beyond lines and boxes
5. Be rigorous about drafting in talent
6. Identify the necessary mind-set shifts – and change those mind-sets
7. Establish metrics that measure short- and long-term success
8. Make sure business leaders communicate
9. Manage the transitional risks
While each of these offers a different angle that companies can use, among the most important steps is step eight – communication from business leaders. Fortunately, this is also the area where CEOs can most directly affect the success of a change strategy.
Managing change from the C-Suite
For leaders that are committed to improving their change management processes, there are a number of steps they can take to begin this process.
Among the most important comes from recognising current limitations imposed by existing workloads and then taking steps to address these so that staff can commit to a major shift in corporate direction.
In fact, research by the Corporate Executive Board found that 88 per cent of workers have seen their workload increase to the point where they are unwilling to put in more work to met organisational objectives.
There are a few other features that can also set a strong change management effort apart from the rest. The Harvard Business Review suggested that staff workloads are just one of four parts of the equation, with the remaining three covering project duration, commitment from senior management and the technical capabilities of the teams involved.
Put simply, companies that embark on short change management strategies, with buy-in from the C-Suite and a highly technical staff who also have the time to commit to a project achieve the strongest results. Those with the opposite qualities on the other hand, proved more likely to fail in the research.
Change management the sign of a strong company
While leading a company through a major organisational change places new pressures on a CEO, there are benefits that come from getting this process right. Business leaders that can actually achieve their stated goals will be able to set their company up for future growth, while standing apart from their competition.
With research from the Project Management Institute last year finding only 18 per cent of companies are successful at leading change initiatives, the opportunities for companies that can make this change will be in a much stronger position long-term.