One of the biggest challenges during an organizational transformation is handling the people side of change. We often sometimes call it the soft side of the change.
- What is change management?
- Why is change management important?
- 1. Change in an Organization Happen One Person at a Time
- 2. Cost of poor change management
- 3. Increase in the likelihood of success
- How to Implement Effective Change Management?
- 1. Individual Change Management
- 2. Organizational Change Management
- The Importance of Change Management Role
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What is change management?
Change management is a process which takes care of the people side of the change by developing new organization and designing new technologies to achieve better business outcomes. It works as a systematic management of employee engagement, which focuses on the methods to allow employees to accept, embrace, and utilizes changes daily. These changes are dependent on the individuals of the organization and how these individuals embrace the change. Change management works in a twofold manner both as a process as well as competency.
In terms of the process, change management is a series of action plans which the employees follow for a particular project. It is a kind of strategy which aims to move people through the mechanism of change in three phases, including:
- Preparing the individuals for change through an assessment that guides the formulation of change.
- Managing the individuals through changes with the help of five change management plans, which further integrate into the form of a project plan.
- Reinforce the changes through compliance audits and mechanism.
Taking into consideration the change management competency, the manager can effectively lead people through changes. Change competency differs from people’s relationship with change. For example, in the case of the senior leaders, change competency is about being an efficient change sponsor by demonstrating their and their organization’s commitment towards change. Meanwhile, for frontline supervisors, it is about demonstrating reports about change based on their journey through change. So, to become a successful organization, it is important to build change management competencies based on one’s relationship to change.
Change management is neither a communication process nor training or managing resistance. It is about following a well-planned process and using a set of tools to influence successful individuals and drive organizational change.
Why is change management important?
There are many different reasons to use a change management system on small as well as large-scale efforts including:
1. Change in an Organization Happen One Person at a Time
Organizations never change, but the people within the organization change. So, it is easy to fall into the hands of the thoughts of change from an organizational perspective. A successful organizational change is the collective impact of the individual changes. Change in the day to day work of an individual makes the organization’s transformational efforts successful,
2. Cost of poor change management
Ignoring people side of change results in several consequences that include a decline in the larger scale productivity for a longer duration of time, failing of key stakeholders to show up to the meetings, enabling customers to detect the change, and negatively affect through it. A line of division between ‘us’ and ‘them’ emerge in the organization, causing a greater impact on suppliers. These valued employees end up leaving the organization and stress, confusion, and fatigue among the members of the organization.
3. Increase in the likelihood of success
Effective change management increases the probability of a project’s success. A project having effective change management are more likely to meet their objective than the projects having poor change management. You can increase the likelihood of being successful by focusing more on the people side of change.
How to Implement Effective Change Management?
You can implement effective change management with the help of two perspectives:
1. Individual Change Management
Individual change management is about understanding how people perceive change. For change to become successful, an individual must have awareness about the need to change, knowledge of how to change, desire to change, ability to use necessary skills and behavior to change and reinforcement to sustain the change. These are building blocks for change to become successful. The organization that leads the change in an individual must set their goals in a manner, ensuring that the individual exhibits all these important building blocks of change.
2. Organizational Change Management
Organizational change management consists of the strategies which the project team uses to guide the individual change to its success. It sets some action plans to enforce awareness about change, desire to change, knowledge of how to change, ability, and reinforcement to sustain the change across the whole organization. The organizational change management sets a different target plan for the organization to achieve, including communication plan, coaching and training plan, sponsor plan, and the resistance management plan.
The Importance of Change Management Role
Superior leaders, managers, and supervisors throughout the organization plan to develop and plan much of the work of change management. In times of change, the employees receive change messages from either someone superior at the organization or the person they report to. Senior leaders work as the director of change, and the managers and supervisors work as coaches of the change. Their effectiveness in driving change determines the success rate of the project in an organization.
The people side of the change is a real-time harder side of the change which demands time and efforts to handle the people’s side. It is these efforts and time that result in the success of your organization.