The future direction of change
management
Over the last ten years,
organizations have placed a greater importance on managing
the people-side of their projects and initiatives.
The
transition of "change management" from being viewed as a
soft and fuzzy waste of time to a critical success factor has been dramatic.
Articles and programs on managing change
are showing up in the project management world, the HR world,
and nearly everywhere in between. Industry publications are
focusing on leading the people side of change. Interest in
change management is at an all-time high. Case in point, in
2004 Prosci was conducting one open enrollment certification
program each quarter; today we deliver two or three open
enrollment certification programs each month across the US and are struggling to meet
the ever increasing demand.
Change management has certainly created a buzz in
businesses and organizations across the globe.
But what direction will change
management take in the future? This tutorial
presents some of the top trends in change management identified
in the 2007 Best Practices in Change Management benchmarking
study. |
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Best practice findings on biggest changes in change management
In the 2007 Best Practices in Change Management benchmarking study,
we asked participants about the biggest shifts they had seen in the
discipline of change management over the last several years. The top
four changes in change management, according to 2007 study participants,
were:
-
A greater recognition of the need
for change management - Overall, participants saw change
management moving from a "nice to have" to a "must have" on key
initiatives, with greater interest throughout
the organization.
-
More structured and formal
processes - Participants noticed a greater use of systematic
approaches to managing the people side of change, moving away from
the ad hoc approaches of the past.
-
Better understanding of what
‘change management’ really is - While there are still many
different definitions for change management, participants commented
that there was a more common understanding emerging.
-
Integration with project
management - Change management activities are more integrated
with standard project management activities, rather than being
viewed as a completely separate undertaking.
Why change management is here to stay
To be clear, the popularity of change management is on the rise.
Change management is showing up more and more in literature and in
conversations at organizations across the globe. Expectedly, there is
also an emergence of 'practitioners' and consulting services - some who
have experience and expertise and others who do not. Below are three
reasons change management is here to stay, both as an internal
competency and as an expected skill of consultants.
-
It is applied to changes; it does not prescribe specific changes
-
It is a leadership and management competency necessary throughout
the organization
-
Change is not going away
1. It is applied to changes; it does not prescribe specific changes
One of the tests of a fad (something that is popular today and gone
tomorrow) is that it is prescriptive, as defined by
Danny Miller and Jon Hartwick in their October 2002 Harvard Business
Review article "Spotting Management Fads". Most of the fashionable
business and management approaches over the last several decades have
focused on a particular business issue and presented the specific,
often over-simplified, actions required to solve the problem.
Change management is different in that it is applied to change in
general; it
does not present the solution. Change management takes, as its input, a
change that has already been arrived at by business leaders evaluating
opportunities and potential threats to their organization. Once a change
has been prescribed - by whatever means being used - change management
answers the question: how do I get my employees to embrace, adopt and
utilize this change to how they do their work? At each Prosci
certification program, participants bring a wide variety of changes from
process improvement projects, restructuring programs, IT projects, mergers or acquisitions. Some bring projects
that impact a workgroup of 12 employees while others bring
enterprise-wide initiatives impacting 60,000 employees. In each case, the
participants walk away with a customized approach to managing their
particular change - not a prescribed solution on what to change.
Since its focus is on building support, minimizing resistance and
accelerating change, change management its applicable to a huge variety
of large and small projects and initiatives. In this way, it is more
like project management. Project management does not prescribe a change,
it provides structure and tools to the tasks required to implement a
project. And, unlike many of the business fads of the recent decades,
project management has persisted since it is applied to changes rather
than prescribing what to change. Change management will likely follow a similar
path.
2. It is a leadership and management competency necessary throughout the
organization
Many of the business and management programs of the past few decades have
been done by few within the organization, while the activities of change
management are done by most of the organization. Take Business Process
Reengineering as an example. Many organizations created BPR teams or
task forces during the 1990s. These teams evaluated operations,
documented as-is processes and designed to-be processes. However, much
of the work associated with BPR resided in a few trained (or untrained)
individuals or external consultants.
Change management is different because the activities of "managing
change" are fulfilled by members of the organization - from the most
senior leaders to front-line supervisors. Active and visible sponsorship -
repeatedly cited as the number one success factor for change - must be
done by those who authorize and fund changes. There cannot be a proxy
for sponsorship, the role must be fulfilled by senior leaders in the
organization. Front-line supervisors and managers play a key role in
supporting their direct reports though change. The unique relationship
between employees and their supervisors dictates the interaction, one
that cannot be replaced by a specialized team or group of experts. One
final benchmarking finding that supports the contention is around
preferred senders of key messages. Employees expect to hear business
messages related to change from senior leaders and personal messages
related to change from their supervisors. Neither of these "preferred
senders" are subject matter experts on a particular improvement
approach.
Across the board, the activities and roles of "change management"
come to life in the behaviors of leaders and managers in the
organization. In this way, "leading my people through change" becomes an
individual competency that managers can learn and foster. It takes all
parts of the organization to effectively manage change, much different
than the specialized groups associated with most business and management
fads.
3. Change is not going away
Business and management fads that focus on a particular opportunity
or problem can lose steam when priorities move to a different or new
opportunity or problem. Change management, however, is applied to any
type of change that impacts how people do their jobs. And, given the
current climate, the pace and quantity of change in the coming years is
expected to continue to increase.
Think about just a few of the common drivers of change present in any
business or organization:
- Strategic planning - How many strategic plans state, "We will
continue doing things the same way we did last year?" The answer, of
course, is none. Each year, the strategic planning exercise and the
execution of the plan cause change to how organizations behave.
- Market and industry pressures
- Customer demands and issues
- Supplier requirements and offerings
- Technological advancement and evolution
- Even the business and management programs which come and go cause change
to how the organization operates.
In the near term, and the long term, organizations will be facing
more change than ever. This means that the demand for effectively
managing the people side of these changes will not diminish, but will
continue to grow. Regardless of what is motivating the change, change is
here to stay. Likewise so is effective management and leadership of that
change.
Summary
Change management is certainly demonstrating permanence in
organizations across the world. The internal competency to lead change
is increasing and more structured tools for change management are being
integrated into day-to-day leadership practices. The future direction
for change management based on Prosci's work with clients suggests that
change management will become an expected leadership competency for
managers at all levels in an organization, and change management will
become a normal part of change projects as it becomes integrated with
project management.
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