Organizational transformation in today’s fast paced world is challenging but vital.Companies must progressively respond to market developments, other external shocks, and the implications of new business models. So, how can you ensure that change management produces optimal results? Here are six industry-proven best practices that can aid your transformation initiatives:
Select a change management model: Structure is essential for organizational development. While there is no one-size-fits-all approach, various established models can be used for guidance. Each model encourages you to view your transition from a different perspective and enables efficient change management. The McKinsey 7-S Framework for example, is based on keeping seven aspects in balance: strategy, structure, systems, shared values, style, staff, and skills. Analyzing the long-term consequences of your change lets you develop a holistic game plan.
Practice communication: Don’t push change without communicating the purpose and details of the initiative throughout the organization. According to a McKinsey study, communication is the single most critical aspect in successful change. Start with a change management communication plan and establish transparent communication channels. This will help avoid unwanted resistance from employees.
Deploy automation and AI: Leverage automation technology and data-driven insights using AI to enable the change management process. Eliminate manual operations that are repetitious and more prone to human mistakes.
Manage and support change as a constant: Change can be challenging, but it does not need to be boring. As part of a continual improvement strategy, foster a culture of constant change. These adjustments can consist of continued investments in workforce development, acquisitions, and partnerships, while modifying business strategies.
Appreciate and celebrate small wins: Celebrate victories throughout the journey. More importantly, acknowledge the people responsible for them. Research involving around 5 million employees associated employee recognition to substantially greater productivity. Recognizing your employees' efforts to implement change would not only speed up the process but also allow easier transitions.
Determine your risk tolerance: You must have a suitable preparation and risk management strategy in place to facilitate a high-risk transition. Set up a risk management procedure that can foresee and guard against risks posed by significant changes in business models, strategies, operations, and systems.