Change Management: The driving force behind change or just

another management fad?

By: Akshay Kumar

22MC023
TUTE: A2
M. Com.
Organizational Behaviour
Introduction
In order to remain competitive, organizations often realize the need for change. Successful organizations use
change regularly to improve processes and increase performance. However, these times of change can also
be stressful and anxiety-inducing for everyone involved. Unfortunately, not all organizations are equipped to
implement change effectively and efficiently, resulting in unsuccessful efforts that fall short of their intended
goals. Building a change management plan can help organizations make smoother transitions during times of
change. Simply mandating changes without a plan for implementation, monitoring, and reporting on the
success of those changes is a recipe for failure. Change management provides greater control over the entire
process, which typically involves costly implementation plans and investments.

Change management is a structured and controlled process of planning, implementing, and managing
changes to an organization's processes, systems, technology, or culture. It requires anticipating the impact of
changes on the organization and its stakeholders and taking proactive steps to minimize any negative effects
while maximizing positive outcomes. The process involves identifying the need for change, assessing the
impact of the change, developing a plan for implementing the change, communicating the change to
stakeholders, training individuals on the new process or system, and evaluating the effectiveness of the
change after it has been implemented. Effective change management helps organizations adapt to new
circumstances and remain competitive in a rapidly changing business environment. It requires careful
planning, stakeholder engagement, and effective communication to ensure that the change is successfully
implemented and accepted by all stakeholders.
Managing change can be challenging, especially since there is often little agreement on the most critical
factors that influence transformation initiatives. Each manager tends to focus on different success factors
based on their personal experience and viewpoint. The experts also offer different perspectives. To
implement successful organizational change, a structured approach towards managing change is necessary.
An organizational change that transforms a company will affect everyone in the organization, from the
project management team to the human resources and customer service departments. Since all team
members must be on-board, effective change management is essential. Changes should be overseen and
guided by change managers and project managers within the company.
Professionals are likely familiar with a variety of change initiatives that attempt to bring about
organizational change, such as new product launches or workflow adjustments. Despite the need for
effective management, not all change management initiatives achieve success. Perhaps some of these
initiatives fail firsthand and wondered why the intended change was not possible. It's important to recognize
the top reasons why change initiatives fail.
Best Practices for Successful Organizational Change
Managing organizational change can be daunting, but there are proven best practices to streamline the
process. Here are five essential practices for successful organizational change:
Thoughtful Planning: Planning is crucial to ensure that the change management process runs smoothly.
Identify areas that need change and create a winning strategy based on your business objectives. Consider
the change's impact on employees, management, executives, and customers, and choose an appropriate
change management model.
Effective Communication: Successful organizations communicate with their workforce and create a sense of
urgency to motivate staff. Share the plan for change with employees and executives, convey the scale of the
change initiative and its expected returns, and choose a change management theory to guide the process.
Align Strategy with Culture: Aligning corporate culture, strategy, and business objectives is essential for a
balanced transformation. This means integrating people and processes and encouraging collaboration to
achieve the set goals.
Comprehensive Training: Provide adequate training throughout the change process, not just during
onboarding. Customize training materials to suit different skill levels and individual needs, and reinforce
positive attitudes to change.
Monitor Progress: Monitor progress to identify potential roadblocks and make necessary adjustments.
Celebrate short-term wins to maintain enthusiasm for the transformation project.

The Process
When embarking on a transition, a well-crafted change management plan can provide a roadmap for team to
follow. There are six key steps involved in creating a change management plan, along with useful templates
to help get you started.
Step 1: Develop a change proposal. This proposal should make a compelling case for why the change is
necessary, highlighting the potential benefits, impact, and reasons behind the proposed shift.
Step 2: Identify change leaders. These individuals should be influential stakeholders who can advocate for
and support the change. Ideally, you should include a diverse range of perspectives and roles within your
change team.
Step 3: Craft a change management communications plan. This plan should outline how you intend to
communicate every aspect of the change to those who will be affected by it, including stakeholders,
employees, and customers.
Step 4: Establish goals and KPIs for the change. These metrics will enable you to measure the success (or
lack thereof) of various components of your change initiative. Be sure to tie your goals and KPIs to business
outcomes and share them with your organization to build enthusiasm for the project.
Step 5: Invest in change management tools. These might include specialized software or employee training
resources designed to support your change project.
Step 6: Develop a comprehensive change management training plan. Collaborate with department leaders
and your L&D team to create customized training programs that are tailored to each role and provide the
necessary context for successful change adoption.
Establishing roadmaps, tasks, milestones, deadlines, and evaluations creates accountability for team
members and ensures that nothing slips through the cracks throughout the change implementation. Failure to
properly communicate, manage, map out, or budget changes can make the change process unproductive and
stressful. A stressful change process can lead to lost profits, resistance, and frustration from employees. A
well-managed change implementation will work to eliminate risks and disruptions, communicate
expectations, prepare team members, and evaluate the change process to identify areas of improvement.

Kurt Lewin's Change Management Model

Unfreezing: The unfreezing stage is crucial as it involves acknowledging and recognizing that change is
necessary. The situation that requires change is considered "frozen," as it is resistant to change. For instance,
a company may decide to replace its traditional time stamp machines with digital scanners to monitor
employees' work times. Some employees may resist this change because it is unfamiliar to them, and they
may not see the need for it. However, once they understand the new process, the necessary changes can take
place.
Changing: During this stage, the actual transition takes place, and new processes are implemented. People
react differently to changes, some embracing the new technology, while others may struggle with the new
system. It is essential to convince employees of the benefits that the change will bring.
Refreezing: The refreezing stage is critical as it reinforces change and ensures that everyone has adapted to
the new processes. Positive reinforcement and acknowledgment play a vital role in this stage, and it
encourages employees to adopt new behaviours and leave old habits behind.

McKinsey 7S framework
In the case of Intuit, Steve Bennett's application of the McKinsey 7S framework for change management was
effective in driving significant improvements in the company's financial performance. By focusing on
strategy, structure, systems, style, staff, skills, and superordinate goals, Bennett was able to align the
organization with his vision for change and improve its internal processes. Bennett's success in
implementing change at Intuit demonstrates the importance of having a clear vision for change, effective
communication and collaboration with stakeholders, and a willingness to invest in the necessary resources to
achieve the desired outcomes. Change management is an ongoing process that requires continuous
monitoring and adjustment to ensure that the organization remains aligned with its goals and is able to adapt
to changing market conditions.
The changes he implemented, such as decentralizing decision-making, establishing a flatter organizational
structure, and emphasizing a performance-oriented focus, all contributed to improving the company's
efficiency and productivity. Additionally, by investing in learning and development, and recruiting managers
with specific skill sets, he was able to enhance the capabilities of his team and drive better results.

Common reasons for failure in change management initiatives

The effectiveness of change initiatives often hinges on how they are communicated. Simply telling people
what to do without explaining why can lead to resistance and lack of motivation. After all, most people
prefer to be intrinsically motivated to act, meaning they are driven by their own interests and sense of
competence. Autonomy and competence are key psychological needs that are essential to self-determination
theory, which highlights the importance of intrinsic motivation (Ryan and Deci, 2000). To get people on
board with a change initiative, it's important to foster intrinsic motivation rather than forcing change upon
them.
One of the most common reasons why change initiatives fail is a lack of support from the bottom-up. It's
important to consider whether enough people who are directly affected by the change initiative actually
support it. If not, it's important to understand why they may not be on board.It's not possible to compensate
for a lack of bottom-up support with top management power. In fact, pushing for change in the face of
resistance can often make things worse. To address this issue, it's crucial to involve those who are affected
by the change initiative from the very beginning. Ensure that their opinions are heard and that the decision-
making process is transparent and fair. it's important to also consider the pace of change. While it's important
to make progress, it's equally important to ensure that the pace of change is sustainable for the organization.
Rapid change can be overwhelming and lead to burnout, while a slower pace can allow people to adjust and
integrate the changes more smoothly. It's important to find the right balance between making progress and
ensuring that the organization can handle the change without experiencing exhaustion.

Conclusion
Change management is a critical process for organizations seeking to improve performance, adapt to new
market conditions, and achieve their strategic goals. However, implementing change is often challenging,
and many initiatives fail due to a variety of reasons. These include poor communication, resistance to
change, lack of buy-in, inadequate planning and preparation, and failure to sustain the change.
To successfully manage change, organizations need to develop a comprehensive change management plan
that addresses these challenges. This plan should involve identifying the need for change, communicating
the change vision and goals, building a coalition of support, involving stakeholders in the change process,
and monitoring progress and results. Moreover, effective change management requires a collaborative
approach that engages all stakeholders, from employees to top executives. Organizations must also prioritize
transparency, clear communication, and feedback to build trust and facilitate smooth transitions. Finally,
they must also be adaptable and willing to adjust the change plan as needed to accommodate unforeseen
challenges.
In today's rapidly changing business environment, organizations that can effectively manage change will be
better positioned to succeed in the long term. By adopting a structured approach and building a culture that
embraces change, organizations can create a more agile, innovative, and resilient business that is better able
to meet the needs of customers, employees, and stakeholders alike.