08 February 2023
Five Success Factors For Effective Organizational Change
Learn how to create, manage, and adapt to change in today’s business environment
by AJ Bellarosa
Organizational change is a term used to describe the transformation of a company from its current state to a desired future state and is often misunderstood in its entirety or used interchangeably with components of change more people are familiar with. It can involve changes to the structure, culture, processes, technology, strategy, and most often, the people working in the organization as they grow within it. Change can be triggered by internal or external factors such as improving efficiency, getting or staying ahead of the competition, responding to market demands, or adapting to new technologies.
The process of organizational change is complex and challenging. It requires sponsorship, careful planning, effective communication, and the engagement and support of all stakeholders, including employees, customers, and shareholders. Despite the barriers and challenges, organizations must embrace change in order to survive and thrive in today's rapidly evolving business environment.
There are several models and theories that can help organizations navigate the change process. One widely used model at Five to Flow is Prosci’s ADKAR, which consists of five elements: awareness, desire, knowledge, ability, and reinforcement. The first element, awareness, involves preparing the organization and its members for the “why” of the change.
This may involve identifying the need for change, communicating the vision and goals, sharing what happens if they don’t change, and addressing any potential resistance to change.
The second element, desire, involves creating the “WIIFM” or “what’s in it for me” - this means focusing on a customized message or value proposition for each affected stakeholder group that will drive the desire to participate in and support the change. It is important for organizations to involve employees in the change process and to provide them with the support and resources they need to adjust to new ways of working. So many organizations have a blanket approach to motivation and often demotivate employees inadvertently. It’s not a one-size-fits-all when it comes to what will motivate the right behaviors.
The third element, knowledge, provides critical information for all stakeholders on how to change with rules of engagement and expectations. Educating employees about what to do differently, what is staying the same, what risks or challenges to expect, and the change management methods and plans are a great way to get started and prepare them for upcoming training and enablement.
The fourth element, ability, focuses on providing the essential tools for all individuals and teams to implement desired skills and behaviors. Training, enablement, e-learning, and other on-demand tools are great examples of driving ability during a change initiative. Many of our customers undergoing change only focus here in anticipation that trained employees will be capable of executing new processes. This is only one small piece of a much larger picture; the change barrier points are usually earlier than the ability stage.
The final element, reinforcement, involves sustaining the change. This may involve reinforcing the new behaviors, attitudes, and values that support the changes and ensuring that the changes are sustainable over time. Here is where sponsorship and engaged leadership are critical. Leading by example and sticking with the change as leaders is what will drive a sustained change among employees.
One of the key success factors in organizational change is effective communication. Communication is critical to ensure that everyone understands the reasons for the change, the vision and goals, and what is expected of them, as mentioned in the awareness and knowledge stages. Communication should be two-way and allow for feedback and questions. It is important to communicate frequently and openly and to keep employees informed of progress and any challenges that may arise. Organizations that are transparent, communicating both the pros and potential cons or risks of the change, are far more likely to gain buy-in, as any pain in the new ways of working can be seen as temporary or areas where employees can provide ideas to support continuous innovation. Another important factor in organizational change is leadership. Leaders play a key role in creating a culture of change, inspiring and motivating employees, and leading by example. Leaders must articulate the vision, set the pace, and provide guidance and support to those affected by the change.
Leaders must also be prepared to make tough decisions and address any resistance to change head-on.
“There is usually a lot of energy at the start of a change initiative, and then leaders attempting to drive the change either make decisions too quickly without getting enough feedback or taking the time to build out the steps or everyone is accountable so no one is accountable and things fall through the cracks. Eventually, it becomes an idea that never gets off the ground, the root problem never gets solved, or the big opportunity is missed.”
-Rebecca Wiggins
Organizational change can also have a profound impact on employees. Employees may feel uncertain about the changes, their role in the organization, and their future. It is important for organizations to provide employees with the support and resources they need to adapt to new ways of working. This may include training, coaching, mentoring, and opportunities for professional development. Employees should also be given a voice in the change process, and their feedback and input should be valued. Though not all feedback or ideas can or will be implemented, communicating the process and rationale for decisions is shown to reduce burnout.
Finally, it is important to recognize that change is an ongoing process. Organizations must continuously assess and adapt to the changing environment in order to remain relevant and competitive. They must be flexible, responsive, and prepared to make necessary changes.
“As a change practitioner for nearly three decades, I have realized that we should never underestimate the impacts that unexplained or poorly managed changes have on morale, motivation, individual and team performance, engagement, and even shame. As organizations grow and technologies evolve, an individual’s sense of purpose and value can be highly degraded when they are not given an opportunity to be a part of the change and the new path forward. As we associate change management with flow and peak performance, we have found that individuals need to be empowered and have autonomy with their work. Engaging them in the conversations and further enabling them to achieve their purpose toward a collective ambition will make all future changes far more successful.”
- Kate Visconti
In summary, there are five critical success factors for driving meaningful change within organizations.
- Effective Communication: Everyone affected by a planned change must first be aware of the change that is coming, the reason for the change, and how they need to prepare.
- Leadership: Business leaders must be champions for change in order to motivate others to embrace it.
- Employee Engagement: Employees need to be given a voice in the change process in order for adoption to thrive.
- Continuous Adaption: Organizations must continuously assess and adapt to the changing environment in order to remain relevant and sustain competitive advantage.
- Accessing Flow: Flow and Group Flow are the most reliable ways to drive creativity and innovation within an organization and are essential components in driving change that enhances employee engagement.
Organizations must be prepared to invest the time and resources required to ensure the success of their change initiatives. If your organization needs to assess its business readiness for future change and growth, Five to Flow has a proven framework for evaluating business performance across five core elements. Please contact us for more information on how to get started!