Human Skills: Organizational Change

Organizational change is the process by which organizations move from their present state to some desired future state to increase their effectiveness.

Factors influencing organizational change:

• Change in leadership
• Acquisition or Merger
• Change in government policies
• Technology trends
• Globalization
• Social changes
• Industry practices
• Competition
• Deficiency in existing processes
• Market conditions

Implementing Change: How to do it right the first time?

 1. Awareness: Building awareness among stakeholders and individuals impacted by the change. Need to understand and address queries and miscommunication before change is implemented. ‘Buy-in’ is required to progress any change. Data from clients and other external stakeholders can be very important in presenting the need for change.  

 2. Appoint change agents: For change to be successful, not only strong leadership is critical but also the support from a team of influential people such as top management and middle level management, including those who represent all important areas and departments in the organization is required.  

 3. Create a plan or direction: A vision is critical for helping to direct, align and inspire employees. The leader must define a clear and compelling statement that captures what he or she sees as the future of the organization, as well as a strategy for executing that vision.  

4. Communicate is key: It is imperative to communicate the vision frequently and powerfully, and to embed it in everything the firm does. The top leader must “walk the talk” and demonstrate the type of behavior that is desired of others.  

 5. Remove obstacles: Put in place the infrastructure to support the change. This might involve changing the underlying compensation system or other human resource systems. It also may mean identifying leaders who are resisting the change and helping them to see the big picture. Quick action on removing any barriers (whether people or systems) is critical.  

 6. Create short-term wins: It is important for employees to experience some short- term wins that will build momentum. People need to see compelling evidence of benefits and without short-term victories and celebrations, critics can impede progress. 

 7. Continuous alignment and building on the change: Don’t stop after the first win. After each win, analyze what went right and wrong, and set new goals and targets. Keep focusing on continuous improvement.  

 8. Anchor the changes in the corporate culture: For the change to stick, it must be made part of the core of the firm. Leaders must show employees how the new behaviors or actions have helped improve performance. The leadership ranks must be advocates of the change for it to stay.