What is business change management?

Business change management is the practice of successfully changing the way an organisation works, typically spanning the domains of people, processes, technology and organisational structures.

In some circumstances business change may be incremental, in others it may involve a more radical ‘business transformation’ — for example, introducing completely new processes, working methods and IT systems, behavioural and cultural change, as well as involving the redesign of management systems, job roles and the interfaces between stakeholders.
 

Why change?

Organisations need to change or transform themselves for many reasons, broadly falling into the categories of performance improvement and environmental adaption.

Performance improvement often stems from a desire to increase market share, profitability or service levels. Environmental adaptation may be required to meet challenges posed by competitors, new technology or legislation, or to address issues of corporate and social responsibility

 

Effective change management

When the fundamentals of effective change are not adequately considered, it should not be a surprise that new policies, processes, or IT systems so often fail to deliver their promise. And, with many managers pressed for time, working within the constraints of vertically organised structures, or having limited cross-functional experience, it is perhaps unsurprising that transforming organisations can be problematic.

Effective business change management demands a holistic approach. The people, process and technological aspects must all be assessed, managed and communicated. It is necessary to identify appropriate intervention points, balancing risk against potential outcome. There is normally a need to involve multiple stakeholders in the change process, reconciling their differing views, concerns and priorities. The change should also take into account the wider business objectives, values and cultures, and should be aligned with other initiatives in the business. So, because situations and businesses differ, the transformation or change management approach adopted should also be customised to suit your business.

Planning and implementing effective business change therefore demands a range of skills, including management consultancy and programme management, as well as communications, stakeholder management, and leadership, in addition to a rounded cross-functional understanding of business.

Since Mike’s skills span all these areas, he is able to provide complete end-to-end change and transformation solutions, helping to ensure that change and transformation within your business is planned and managed effectively, from initial analysis through to benefits realisation.

In addition to the practical benefits, engaging someone specifically to lead change or transformation is also an important psychological signal within your business that underlines the importance of the initiative.
 

Communications & stakeholder management

Although the methodologies and tools of project and programme management are well defined, where change and transformation are involved, issues such as change-resistance, behaviour and corporate culture are often significant factors that need to be addressed. Effective communication, together with the engagement, involvement and management of the various stakeholder groups can go a long way to addressing such issues, and should be considered an intrinsic part of effective change management.
For example, as the change is planned and implemented communications can be used to alert the various stakeholder groups to the existence of the initiative, to outline how they will be affected, to set expectations and to encourage participation or action. Good communications should also involve receiving feedback from those affected by the changes, so that this can be taken into account as the programme progresses.
The preparation and management of a communications plan helps to ensure that the relevant messages are delivered to the various stakeholders throughout the change process, at the right time, and through appropriate channels.
When multiple organisations are involved it is also essential to ensure that the communications plans are aligned. In complex situations it may also be appropriate to link this to a stakeholder management plan, to ensure that each stakeholder is involved at the relevant points, to ensure that they feel part of the process, and to identify who will manage each stakeholder relationship.
The communications themselves can involve a range of channels including face-to-face briefings, workshops, press releases, internal magazine articles, desk drops, emails, letters, posters, intranet sites and launch events.
 

Change & transformation leadership

The importance of active, visible leadership
In a change or transformation situation the people involved or affected by the initiative are acutely aware of the way in which the process is managed. Providing clear change leadership is necessary so that people can see and feel that the process is being actively managed and that there is a clear direction of travel. In short, change and transformation initiatives can not be effectively managed from the rear.
Throughout the change process it is necessary for the change consultant to be seen to actively leading change from the front, generating energy and enthusiasm for the change process, and projecting the strategic vision. This is a parallel role to that of the project sponsor, who must own the change initiative for the client organisation.
Linked to this are the related skills of coaching and mentoring which are frequently necessary to assist other key players in the change process, the facilitation of discussions and workshops, chairing meetings, and the management and motivation of the other people working on the change programme.
 

Transformation approach

Because situations and organisations differ, so too should the transformation or change management approach adopted.

The first step is to be clear about the overall aims and objectives

The factors involved

Timescales and funding constrains are the among first factors to be considered, alongside the scope of the transformation, it’s likely impact of the change and the degree and sources of resistance that might be encountered.

Factors in the organisational environment are also important, and stakeholder perspectives, the decision making processes and the organisational culture can also help to shape the approach. So too will the capacity and geographic location of the staff and managers who will be involved in the transformation process, and the impact of other change initiatives that might be underway.

As a result of considerations such as these, transformation solutions are normally tailored to suit each assignment, rather than automatically following a particular predetermined formula.

In addition to 'hard' project and programme management techniques and methodologies such as Prince2, a range of 'soft' people-focused approaches -  including leadership, training, facilitation, coaching and mentoring - can also be used, alongside communications and stakeholder engagement activities.

Solutions may also involve the use of other of tools and techniques — drawing, for example, on lean principles, systems thinking, and continuous improvement.

 

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