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The Fundamentals of Change Management

Posted on 02/16/2012 at 08:00 am

“It is not the strongest species that survive, nor the most intelligent,
it is the one most adaptable to change” -Charles Darwin

Today’s business environment is defined by change, whether it is a shift in leadership, modified customer requirements, new legislation or stiffer competition, organizations are continuously adapting and reinventing themselves to stay viable.

Flexibility and agility are no longer nice to have, they are strategic imperatives. The ability to maintain continuity with fewer resources and greater demands while integrating change, literally defines which organizations succeed, thrive and survive. 

What is change management and why is it important?
Change management is a systematic approach to planning and integrating change aligned with business strategy that focuses on both the business and its people.

From a business standpoint, change management focuses on planning and implementing transactional change (quick, short term change activities) and transformational change (deep, long term fundamental change) in order to facilitate delivery of sustainable benefits at minimum cost and risk.

From the people standpoint, change management focuses on the human side of change. It is the people that make the change happen (or not) and their ability to adapt, absorb and assimilate new ways of operating ultimately defines success.

The chart below highlights the importance of change management. This research, conducted by Prosci, an independent research company, illustrates the correlation between effective change management and realization of project objectives.   

What is a change management strategy?
A change management strategy utilizes a standardized framework to plan and implement change to ensure the following:

• Business needs, priorities and goals are linked to specific change(s)
• Risks are identified, managed and minimized
• Processes to capture ROI and value added are standardized
• The human side of change and transition are woven into projects
• Skills such a change leadership, resilience and adaptability are  built and reinforce
• The severity of any impact and disruption is minimized
• Changes  met desired goals within time and budget constraints
• Application of consistent and rigorous tracking and reporting methodologies

Given the scope, impact and frequency of change it stands to reason that organizations invest in using a structured and repeatable process to plan and guide change and build capacity for change and learning along the way.

As is illustrated below, an effective change management strategy can reduce the “dip” or the disruption and expedite achieving business benefits.

What are the components of change management strategy?
A change strategy outlines the scope of the change effort, guiding principles, risk and rewards, business drivers, responsibilities, metrics and outcomes. A strategy may contain several components:

• Stakeholder Management Plan – identifies and engages those who affect and are affected by the change and targets approaches to support their transition to new ways of operating.
• Communication Plan – details approaches to building clarity, unity and commitment among internal and external stakeholders.
• Organizational Alignment Plan – outlines methodologies to accomplish required shifts in design and/or redesign of structures, processes and roles and responsibilities.
• Training Plan – identifies the skill building needs to perform new tasks as well as skill and capability building for change, transition, and resilience.

What is Suntiva’s approach to change management?
Both research and Suntiva’s extensive experience have shown that organizational initiatives conducted without deliberate change management simply do not work. They fail to engage and prepare stakeholders, secure advocacy and sponsorship, manage resistance and risks, and integrate new ways of doing business. In the end, they fail to meet the intended results and waste time, energy and resources.

At Suntiva we integrate our multidisciplinary understanding of how to both prepare, launch, implement and integrate the process side of change (processes, systems, technologies, tactics) and the human side (behavioral, attitudinal dynamics of change on human behavior influencing and motivating).

Our change management methodology applies to a range of small and large scale business changes strategically engaging sponsors and leaders throughout the change process and maximizing stakeholder involvement, preparation, support, while rigorously measuring change integration and results. 

Our change management methodology includes:

• Defining the case and goals for change
• Gauging environmental readiness conditions
• Creating a change strategy and methods
• Building leadership advocacy, resolve and skills
• Engaging, involving and preparing people
• Designing processes, structures and roles
• Monitoring implementation, progress and integration

As a preview for part two of this series click on the link below to Suntiva’s upcoming presentation entitled “Building Organizational Capacity for Change: The Competitive Advantage of Resiliency” at the Association for Change Management Professionals Global Conference.

- Ely Harwood, Senior Executive Consultant

Tags: Change Management