Change management and its importance in the company

The corporate world does not stand still. The continuous evolution of technologies, new consumer demands and high market competition mean that companies must constantly modify their business models in order to successfully achieve their objectives. All this need for organizational adaptation refers to change management.

But what exactly what exactly does this term mean ?

Change management is defined as a company’s methods or strategies for implementing changes within its internal and external processes. This includes preparing and supporting employees, establishing the necessary steps to carry out the transition, and analyzing pre- and post-transition activities to ensure a successful outcome.

Although the approach may seem simple, the truth is that organizational change is a challenge. It usually requires a great deal of cooperation among staff and involvement by departments of an organization that are independent of each other.

New technologies

Technology has always been the best resource when it comes to change, when it comes to innovation. For example, a business process management or resource planning software can help a company increase its competitive advantage, a CRM can save time and improve the customer and employee experience, an analytics tool can improve the marketing department’s strategy, etc.

New technologies can be catalytic if used well, but also disruptive if a number of things related to employee training and speed of adaptation are taken for granted. This process often fails due to human factors.

We must be realistic, so it is imperative that organizations bring people into the “change management” equation. Otherwise, the investment will have been of little or no use.

By “getting people involved” we do not only mean training them to acquire the necessary skills to handle the tools, but also being transparent, communicating the objectives to be achieved, avoiding moments of uncertainty and, above all, involving them in the process.

Technological innovation is necessary, but it is not the absolute. Those who will execute it are human beings, so the transition must be evaluated with this important detail in mind.

5 mistakes to avoid in change management

On the other hand, and in relation to the previous point, there are certain patterns that encourage poor results in companies. These are some of them according to technology experts, consultants and CIOs:

1. Lack of absolute commitment from executives.

It is important for company leaders to share responsibility for a transformation project. It is wrong to focus this duty only on CIOs, as managers from other areas (who will also benefit) must also promote the visibility of change. If a senior executive does not get involved, the new management of the company will have little impact, there will be no synergy and it will end up being a disaster where everyone goes their own way. Everyone should serve as an example to the rest of the company.

2. Failure to allocate adequate resources to the company.

To believe that with minimal resources you can achieve the same results is quite foolish. The investment has to be in line with the objectives. Change is not adjustment, change is evolution. As a minimum, it is advisable to dedicate 15% of your budget to an organizational change program, integrate tools that fit your needs (do not acquire them based solely on price) and do not “skimp” on personnel.

3. Ignoring workers.

Not engaging with employees, who are the ones who will be using the new technology, and taking for granted what they need to achieve the expected results, without taking their opinions into account, is something to deliberately avoid. “If people feel heard, and they can imagine themselves in the change, they will help you with adoption. People have a natural tendency to disengage when they feel their ideas are not valued” (Bill Kirst, West Monroe).

4. Immediate transition and work overload.

It is impossible to change correctly when you have little time to implement the new routine. With ridiculous times it is impossible for the transformation to work. Nor does it help to rush departments by assigning new duties from other areas without neglecting their day-to-day activities. All this does is stress departments and frustrate change. That’s why it’s important to have a strategy that makes your adaptation times affordable and well taken care of.

5. Not hiring experts to guide change management.

Often, among the staff of an organization, there are no profiles that can lead a change project. In these cases, it is highly recommended to turn to professionals trained in strategy design, training and guidance, organizational behavior and process analysis and monitoring. Looking for companies that know how to accompany you on this path will not only avoid many mistakes, but will also help you to manage the new scenario psychologically.

Stages of change management

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At Correcta we help companies to drive digital change, to face new technological challenges and adapt to them appropriately. We are the guideposts of digital transformation!

Want to change? Call us!

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