What is Change Management?

Quality Glossary Definition: Change management

Change management is defined as the methods and manners in which a company describes and implements change within both its internal and external processes. This includes preparing and supporting employees, establishing the necessary steps for change, and monitoring pre- and post-change activities to ensure successful implementation.

When an organization’s goals, processes, or technologies transform or transition, this significant change can be challenging and requires cooperation of different independent entities within an organization. Developing a structured approach to change is critical to help ensure a beneficial transition while mitigating disruption. Used properly, quality-based change management practices can help any sized organization overcome resistance to change, update outdated processes to advance, and recognize the need for clear communications and alignment across all levels of the workforce. Used improperly, organizations will likely continue to struggle with overcoming barriers and low productivity or may even experience frequent staff turnover.

Organizational change falls into two categories:

• Incremental change – gradual changes that update products, processes, or strategies that evolve over time.
• Transformational change – dramatic or sudden change that is larger in scope, such as a shift in the organization’s mission or structure.

Define the change and assess the risks

When implementing change, it is critical to properly assess the risks and the potential impact to business performance. To do this, one must understand the areas that are most vulnerable to declines in performance, lost revenue, or process gaps. Things like changing standards or requirements, supply chain issues, and geo-political conditions and climate change are just some of the possibilities that can impact an organization and must be considered and integrated into any change management plan.

It is also imperative that the change is clearly defined as well as clearly communicated to the entire organization. Significant changes, and effective change management, rely upon communication and cross-functional teamwork efforts. This definition must include implementation plans, including metrics, training needs, and clear direction on impacts to workgroups or job descriptions.

Plan for change

Regardless of whether the change is small or significant, it needs to be put into a project-like framework to structure the update regarding people, process, or strategy. The degree of change will influence the detail and structure of the plan. Leadership must also engage employees in identifying what needs to change and listen to their concerns to ensure a more responsive change management approach. Conducting a current state assessment of the organization’s preparedness for change and workforce fluency with relevant technologies can also be helpful. Communicating the change and details of the plan to answer “what’s in it for me?” can also cultivate buy-in for different roles, teams, and departments. As change affects individuals, workgroups, or even the entire organization, the roles within the change effort must be clearly defined—from the leaders who initiate the effort, to the managers who communicate with and encourage the workforce, to the employees who are incorporating new processes or technologies into their day-to-day routines.

Support the change

Organizational Culture

While change management depends on specific teams or workgroups, leadership commitment and organizational support is key to its success. Successful change management practices require an organization’s culture to be open to change, as well as preparing for people to understandably react to change negatively. Honest feedback must be allowed to flow from employees up to leadership, especially if tools or processes are outdated or hinder the ability to take a phased approach that may be more manageable and receptive. A lack of effective change management processes, mismatched KPIs, or gaps in workflow and accountability can lead to job dissatisfaction, distrust, and loss of productivity in any organization when faced with evolution—ultimately negatively impacting quality and customer loyalty.

Rewards

Rewards, incentives, and recognition of employees doing the hard work must be done to maintain engagement and empower employees during the change management process. Opportunities for professional development can also motivate the workforce to embrace the changes. Organizations must also consider how to motive managers to embrace their role as change leaders, such as tying financial rewards or promotion opportunities to effective implementation of change projects. Organization-wide surveys to determine what drives employees to engage can also be helpful to encourage change as well as sustain the changes over time.

Communication

Clear, proactive communication from leadership is essential to getting employees involved and on board with the change process. Communication also helps to reduce resistance from employees who may not understand why the need to do things differently. Providing information at regular intervals—including why the change is happening, the specifics of how it is happening, what's in it for individuals and workgroups, and success stories—can support the change process as well as the organizational culture by providing a sense of psychological safety.

When communicating, leaders must consider how to involve employees in the change and make them feel valued at the same time. This includes:

• Sending communication at established and regular intervals
• Providing strategic and tactical specifics about the change, including the what, how, and why for each action
• Giving employees the opportunity to ask questions, and clearly incorporating feedback received or elevating it, if necessary
• Using a variety of communication channels to account for employee preferences

Resistance to change can be any obstacle that becomes an impediment to implementing the change. The source of resistance is often individuals or groups, but it can also be systems or processes that are outdated or that fail to fit current business conditions.

In the change management model below, all changes move from the current state, through a transition phase, and into the desired improvement state:

1. Leading change – the change effort has a champion who sponsors the change, provides adequate resources, develops management support, and supports the goal with words and deeds.
2. Creating a shared need – the reason for a change, whether driven by threat or opportunity, is instilled within the organization, and widely shared through data, demonstration, demand, or diagnosis. The need for change must exceed its resistance.
3. Shaping a vision – the desired outcome of change is clear, legitimate, widely understood, and shared.
4. Mobilizing commitment – there is a strong commitment from key constituents to invest in the change, make it work, and demand and receive management attention.
5. Monitoring progress – progress is real, benchmarks set and realized, and indicators established to guarantee accountability.
6. Finishing the job – once change is started, it endures and flourishes. Necessary learning and skills are transferred throughout the organization.
7. Anchoring the change in systems and structures – appropriate management systems, such as information technology, performance reviews, and audits, are used to reinforce and anchor the change.