Leading Organisational Change | Unravel Executive Challenges
Leaders are disconnected to what is happening on the ground in terms how people are impacted by how change is managed in organizations, leading change poorly causes change fatigue, change practitioners are overwhelmed and not adequately resourced and prepared to be leading change that is transformational.
Transformational projects bring about organizational change. Executive leadership is often not aware that their so-called internal organizational change experts are not operating at the right level of maturity when it comes to managing change for transformational projects/programmes. Large to small scale projects are treated in the same manner despite their level of impact.
Who is traditionally entrusted to manage organizational change?
If most human resources departments could not link their scorecards to corporate strategies and prove return on investment for people management initiatives, how then are they entrusted and left alone to lead organizational change initiatives for innovative projects?
When leading organizational change, HR gets fully engrossed in planning for the big launch, derailed through extensive analysis of stakeholder groupings and moving straight ahead into coordinating training, thereafter getting busy with preparing for communication launch campaigns and countdowns, and without question when the project is launched, then the change management process is completed. Can you relate?
If this is your reality, it is time for you to understand the implications of short-cutting through organizational change:
According to PROSCI the impact of not managing organizational change effectively: costs and risks. These perspectives play out on two levels – the project level and the organizational level. While some of these costs and risks may seem “soft,” many of them are quantifiable and can have a significant impact on financial performance – both of the project and of the organization as a whole.
Organizational Change Costs:
Project Delays, Missed milestones, Budget overruns, Rework required on design, Loss of work by project team, Organizational Change Risks: Resistance – active and passive, Project put on hold, Resources not made available, Obstacles appear unexpectedly, Project fails to deliver results, Project is fully abandoned
When change management is applied effectively, we can prevent or avoid costs and mitigate risks tied to how individual employees adopt and utilize a change. Organizational Change Level Impacts -The organizational level is a step above the project-level impacts. These costs and risks are felt not only by the project team, but by the organization as a whole. Many of these impacts extend well beyond the life cycle of a given project. When valuable employees leave the organization, the costs are severe. A legacy of failed change presents a significant and ever-present backdrop that all future changes will encounter.
The organizational change costs and risks of poorly leading change include:
Organizational Change Costs:
- Productivity plunges (deep and sustained)
- Loss of valued employees
- Reduced quality of work
Organizational Change Risks:
- Impact on customers
- Impact on suppliers
- Morale declines
- Legacy of failed change
- Stress, confusion, fatigue
- Change saturation
Applying change management effectively on a particular project or initiative allows you to avoid organizational costs and risks which last well beyond the life of the project.
Transformational change is very different to transitional change, carrying out minimal change initiatives when introducing projects/programmes that puts in place control, standardization, systems that transition people’s mindsets towards operating efficiently may encounter minimal resistance and consequences.
On the other hand, managing transformational change requires great leadership – creative, agility and innovative change management approaches that go beyond what is known and done before to handle ambiguity, read and rewrite your organisational context, emerging from the economic downturn to an upturn. Change Management Consortium (CMC)3 written by Professors Hope Hailey and Balogun reported ‘The complexities and difficulties of delivering change are well established, with failure rates frequently cited as high as 70%.’
Organisations are moving from a period of forced change and retrenchment into a period of more proactive planned change opportunities, join other great leaders that know what works, when and why?
Do not miss this once in a lifetime opportunity to join other CEOs /Directors in a session to interact and have robust discussions with other powerful leaders – driving change towards create optimal value.
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