How can we make a success of change management in our ever – changing world?
Our world is being continually reshaped by shifting economic realities, rapid technological advances, evolving customer expectations and the transition to more sustainable business models. So, it is clear that if we are to drive greater creativity and innovation within our organisations, we need to be highly effective at embracing, managing, and exploiting the force of change.
A new report by ACCA, Leading the change, based on a series of interviews with experts in the field of change, explores how leaders can be more successful at managing change. It identified the following nine trends as crucial considerations when leading a change management programme:
- Embedding change into organisational culture. Since change is an ongoing process for many organisations, it should be seen as part of the ‘normal’ way of working. When change is embedded into organisational culture, resistance to change is likely to be lower, with individuals more prone to embrace agile mindsets.
- Making agile change a reality. Today, many organisations are under pressure to adapt at speed. By adopting an agile approach – focusing on small and iterative changes to operating models – change activities will be both incremental and more immediate. Jo-Ann Pöhl, associate director for consultancy Kearney Africa, who was interviewed for the report, described change as ‘a programme as opposed to a one-off project’.
- A changing workforce with different aspirations. Following the Covid-19 pandemic, many skilled individuals left the workforce. These individuals, who were often resilient to change, could have enhanced the process of change management by sharing their experiences. Instead, the generation that is currently entering the workforce can be inclined to abandon the change process if they dislike the outcome. This presents challenges to leaders around formulating the right approach.
- ‘Digital-first’ workplaces and hybrid working. The shift towards ‘digital-first’ organisations, distributed workforces and hybrid working has resulted in some workplaces becoming more individualistic. As a result, change management approaches should focus more on the needs of individuals.
- The human approach. Change should be a positive force, providing opportunities for people to grow, develop new skills and become more involved with the strategic direction of the organisation. Often, however, change represents upheaval – which means it is more likely to fail in its objectives. So, it’s vital that leaders get employees excited about the potential of change. ‘If you haven’t got the people on board before you start, they will resist the whole thing,’ was the view of Kevin Jones, chief financial officer of SA Power Networks.
- Importance of mental health and wellbeing. Employees increasingly expect their employers to prioritise staff wellbeing. This is especially important during periods of change. Leaders should recognise that while some people will willingly embrace change, others will find the process unsettling and possibly frightening.
- A data-driven approach to change management. The use of data and metrics is essential for a successful change process. This is because data creates new opportunities to explore the effectiveness of changes made and identify which activities have positive outcomes. Staff engagement can be a useful way to measure progress.
- Use of digital adoption platforms to facilitate and support change. Digital adoption platforms can be used to enhance the learning activities associated with the change management process. For example, they can provide support in areas such as interactive walkthroughs, product tours and step-by-step flows.
- Managers and early adopters acting as change agents. ‘Leading from the front’ is essential for successful transformation since people need to see the vision of where the organisation wishes to go. Oliver Colling, partner with consultancy Morley Colling Associates, noted that senior personnel can be powerful advocates of change, keeping projects on track and ensuring that they achieve their goals. He noted, however, that in his experience, it is ‘amazing how many projects do not have any kind of vision or any expected outcome’.
Standing still is a major strategic risk for any organisation. Effective leaders will therefore embrace change as a business-as-usual activity while adopting a human-centric approach to change management. I believe that the accountancy and finance profession can play a critical role in supporting successful change. This is because finance professionals are often ‘super connectors’ who support their peers in other functions, helping to drive growth and enhance performance.
Each of us reacts differently to change, so we must be understanding and supportive of one another’s change journeys. We must also take an inclusive approach. Change will happen – whether we like it not – but if we are all invited to play our part, our organisations are more likely to flourish in this unpredictable and ever-changing world.
Read the research highlighted above at www.accaglobal.com/professional-insights