Every business is changing and evolving, the question is into what. Organizational change management is a critical aspect of controlling business culture and effectiveness. Whether consciously or not, every supervisor is leading and changing their business culture for better or for worse. By having a strong change management program in place, a business can have greater control over the business culture and policies.
Why Organizations Care about Change Management
According to Paul Allen, Co-founder of Microsoft, the number one reason companies fail is because they have the wrong strategy. The second, and more painful reason—companies have the right strategy yet they’re unable to execute.
Heading in the wrong direction, or failing to execute is a waste of an organization’s time, money and resources. Ultimately this waste can cause business failure. Change management programs ensure that the correct strategy is in place and that all members of the organization clearly understand and comply with that transformation in order to avoid waste or failure.
Failure to implement an appropriate strategy will cause an organization to suffer. This does not create an environment in which employees can be productive and effective. Businesses that do not recognize or embrace organizational change will find themselves riddled with internal problems such as unsatisfactory employee behavior, low morale, lack of teamwork, poor communication, and most detrimental, diminishing results. On the other hand, companies that are able to successfully implement appropriate change models see increased growth, stability and profit.
Identifying the Need for Change Management
The Chartered Institute of Personnel and Development (CIPD), Europe’s largest HR and development professional body, reported that the number one focus of leadership is organizational change. Yet, a compilation study by Six Disciplines showed that only 30% of all business changes are successfully executed. Together these two studies show that businesses either 1) Do not recognize the need for organizational change or 2) Do not know how to make the change.
There are many symptoms which indicate an organization is not functioning at an optimal level. Employees may feel there is not enough time to do all the work, or that they must do the task themselves to get it done right. Meetings are ineffective, and when plans are made there is no follow-through. Managers spend their time dealing with a constant stream of fire-fighting activities that prevent them from performing strategic projects and long-term planning. Communication between employees and departments is sporadic and inefficacious. Just as seemingly small unchecked health conditions can eventually lead to the death of a person these small organizational problems can lead to business failure.
A proactive business will recognize the signs which require organizational change and can prepare for it. Some of these conditions include:
- Major technology implementation
- Change of management
- Consistently failing to execute strategies
- Significant swing in growth of work force
- Significant regulatory or economic pressure
Once a business recognizes the need for organizational transformation a new challenge presents itself, implementing and deeply rooting change. Typically, lean environments force business executives to focus on other duties and responsibilities. Businesses suffer as the necessary time required to fully analyze the details of their organization is not available.
Without these details the root cause of the company’s issue is not discovered. Without a root cause leaders can unintentionally waste valuable time and resources applying quick fixes to issues without resolving the underlying problem. Sharp business leaders recognize their individual capabilities and when they realize they lack the tools to create and implement a change model, they aren’t afraid to seek assistance.
Finding the solution to a problem requires time, analysis, and research. This proves difficult as just like an iceberg, only the top 10% of the problem reveals itself. The visible portion of the problem is the outward expression of the underlying problem; it is not the problem itself. Looking below the surface at the remaining 90% is a huge undertaking.
It is difficult for an executive to remove themselves from other tasks in order to focus on such an immense project, if not impossible, as it requires time and resources, something most executives and senior leadership teams don’t have.
Rosewood has the tools, time and resources to look under the surface and accurately identify see what is really causing the problem and to find the best solution to make the change. Once a remedy has been created, Rosewood guides organizations through the steps of change, ensuring the newly designed culture is deeply rooted in the organization providing long-term sustainable high performance.
- Increased accountability and ownership
- Maximized resource utilization
- Execute consistently, rooted upon 80/20 thinking
- Tightly aligned policies and procedures
- Improved morale
- Enhanced communication
- Improved conflict resolution