Are you a successful leader of change?
It’s certainly true that in order to evolve and adapt to an increasingly complex future, businesses have to be constantly changing. Whether it’s implementing new technology, processes and ways of working or seeking new markets to explore, companies need to continuously think about the routes they’ll take.
Of all the major organisational projects that business leaders have to oversee, one of the most challenging can be change management. How do you promote a culture of constant, productive change, while still keeping everyone on board and without jeopardising the harmony of your organisation?
Change management is therefore one of the skills every executive should work on developing, given the massive implications it can have on the very future of the business. As recent research suggests, however, today’s organisations, managers and employees may not be entirely ready to embrace change.
Change still a stumbling block for many
Of course, to enable smooth and effective organisational transformation, a culture of change must be embedded across the enterprise. This involves having the people, strategies and tools required to drive change – but how many companies today can claim to be adequately equipped?
According to an Association for Talent Development survey of 765 professionals, 60 per cent of respondents said their business faces “three or more major changes” every year. Meanwhile, one out of four respondents said they face twice as many changes than that per year.
Despite this obvious need to make change management a top priority, the survey went on to reveal that fewer than one in five (17 per cent) said their organisation is effective at managing change.
Furthermore, less than a third (30 per cent) of respondents reported that their company actually has a change management team in place, while twice that proportion pinned their hopes of successful change on the CEO. With so few organisations having the necessary personnel to lead change, this signals a clear area for improvement for companies across the board.
However, that isn’t the only thing preventing many organisations from successfully enacting change.
What else is holding them back?
As outlined in the Katzenbach Center’s comprehensive 2013 Culture and Change Management Survey, there are myriad factors precluding modern organisations from fully embracing the prospect of change. The survey, which polled well over 2,000 people around the world, canvassed their opinions on the importance of transformation in the organisation, who is leading it and the obstacles that hamper lasting change.
When asked about the top barriers to change, the two most prominent responses were that clashing priorities lead to “change fatigue” and that the systems, processes and incentives in place do not support change.
A large part of the problem may also be behind the attitudes of the employees themselves. The survey revealed that the top three reasons staff resist change are because failed efforts in the past have made them sceptical, they don’t feel involved in the process and they do not understand the reasons behind the change.
All in all, half (48 per cent) of respondents said the critical capabilities required to sustain change are not in place.
Business leaders who can relate to these challenges and feel they are present in their organisation may want to take action immediately, as ineffective change management can have dire effects.
The consequences of poor change management
So what are some of the things that can happen if change is not properly managed in an organisation?
This was explored in Right Management’s ‘Ready, Get Set…Change!’ study, which provided some damning findings on the potential consequences of poor change management. As expected, the majority of the impact falls on employees – according to the study, companies that don’t manage change well are four times more likely to lose talent.
Additionally, of the respondents in the study who said their organisation’s change management is poor, three-quarters (75 per cent) reported being concerned with the company’s ability to attract talent in the future. A third (32 per cent) said they harboured negative feelings about whether they could hold on to their job in 12 months’ time.
As can be seen here, poor change management can have pervasive effects around the organisation, and business leaders need to think seriously about whether they are directing change in the right manner.
What are the best steps forward?
Of course, getting on the right path to change management can be a long process that takes time and effort – but it can help to know where the best places to start are.
McKinsey & Company provides one such perspective. Following extensive global research into the subject, it has come up with a list of what it purports to be the keys to transformation success.
According to the firm, companies that have been successful in transformational change have traditionally demonstrated behaviours such as making roles and responsibilities clear, engaging continuously through ongoing communication and tasking the organisation’s best talent with the most crucial change activities.
Leaders, obviously, have an important part to play too – they should make sure that frontline staff feel ownership for the change and role-model the desired changes.
Change should not be daunting to any organisation – in fact, if managed right, it can turn into a massive step forward for your company. Are you making sure your business is primed for change management success?