Change doesn’t usually happen unless there is a clear need for it. A “burning platform”, ranging anywhere between “we can be more efficient” and “the survival of our organization is at stake”.
As research consistently shows, change management plays a big part in actually achieving the transformation you envision. So the main benefit is obvious: a successful transformation. And all the outcomes that may be linked to that. Whether it’s a more productive workforce, more satisfied customers, or a better culture – all of which will ultimately have a positive impact on your bottom line.
“Initiatives with excellent change management are 6 times more likely to meet objectives than those with poor change management.”
(Prosci, 2020)
However, beyond the specific transformation outcomes, practicing change management in an organization has additional benefits.
Let’s take a closer look.
A shared vision of the future
A part of managing change is identifying where it’s taking us. Together with employees or other stakeholders, we’re creating a shared vision of the future.
We can’t overstate how powerful this is. If we don’t know where we’re going, we will never arrive. So being able to set a general direction for the company and communicate it, is definitely the first step in our quest to achieve it.
More engaged employees
Happy employees are a true asset. Research shows that engaged teams are 17% more productive, have lower turnover rates, and result in 10% higher customer satisfaction.
Change management is all about the “people side of change”. Making sure employees at all levels feel part of the change, understand it, and – in the best case – even become an advocate for it. If done well, change management can boost employee engagement instead of damage it.
More engaged employees
Change leadership and communication are key in an organizational transformation. Where corporate functions are sometimes lacking expertise in this field, leaders learn a lot about communication during a change management project.
If you, as a leader in your organization, want people to feel included, providing clarity and transparency is a great first step. Make sure you answer (and keep answering) the most common questions around the transformation:
- Why do we need to change?
- What does this mean for me?
- How do we embed this change in our current day-to-day operations?
- What behavior is expected from me?
In doing so, an organization can collectively become better at communicating and leverage this capability in other areas.
Staying within budget
Project leaders are often hesitant to adopt change management, because they consider it a cost rather than an investment. Yet, this is not reflected in the data.
Research from Prosci shows a clear correlation between excellent change management and the ability to stay on or under budget. The same is true for adhering to the schedule. This can be explained by the extra time and costs involved with redoing some of the work when a change go-live is met with resistance due to poor change management.
Increase the change capability
Change is a skill. And as with any skill, practice makes perfect. Yes, there is a theoretical foundation – like the change management models – which you are smart not to ignore. But at the same time, there is no shortcut for executing on a change management project and experiencing how your organization responds to it.
So with every transformation, your organization is honing its change capability. Going back to the VUCA world, this is one of the smartest things any leading organization can do to ensure sustained success.
The benefits of change management we’ve explored are just the tip of the iceberg. Each organization, including yours, has unique challenges and opportunities for change, shaped by factors like your company culture, structure, business model etc. SPRING TODAY is here to guide you in finding the most capable and passionate change managers for your organization and initiatives. Don’t wait to make the next step towards a more resilient future.